SECURITIES AND EXCHANGE COMMISSION


☒x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


4900 N. Scottsdale Road,, Suite 2000		85251
Scottsdale,, Arizona	~~Arizona~~
(Address of principal executive offices)		(Zip Code)

(~~480~~)

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.00001 par value

TMHC

New York Stock Exchange

Indicate by check mark whether the ~~registrant:~~registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒x Noo☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒x No ☐o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐o Nox☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class	Outstanding as of ~~October 25, 2023~~ April 30, 2024
Common stock, $0.00001 par value	105,764,423	~~107,448,537~~

TAYLOR MORRISON HOME CORPORATION

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

September 30,
2023

December 31,
2022

Assets

Cash and cash equivalents

$
613,811

$
724,488

Restricted cash

765

2,147

Total cash, cash equivalents, and restricted cash

614,576

726,635

Real estate inventory:

Owned inventory

5,479,987

5,346,905

Consolidated real estate not owned

423

23,971

          Total real estate inventory

5,480,410

5,370,876

Land deposits

206,258

263,356

Mortgage loans held for sale

241,749

346,364

Lease right of use assets

76,463

90,446

Prepaid expenses and other assets, net

305,581

265,392

Other receivables, net

188,723

191,504

Investments in unconsolidated entities

329,634

282,900

Deferred tax assets, net

67,656

67,656

Property and equipment, net

262,671

202,398

Goodwill

663,197

663,197

          Total assets

$
8,436,918

$
8,470,724

Liabilities

Accounts payable

$
272,830

$
269,761

Accrued expenses and other liabilities

487,262

490,253

Lease liabilities

86,401

100,174

Customer deposits

380,544

412,092

Estimated development liabilities

42,271

43,753

Senior notes, net

1,468,255

1,816,303

Loans payable and other borrowings

332,177

361,486

Revolving credit facility borrowings

—

—

Mortgage warehouse borrowings

191,645

306,072

Liabilities attributable to consolidated real estate not owned

423

23,971

Total liabilities

$
3,261,808

$
3,823,865

COMMITMENTS AND CONTINGENCIES (Note 13)

Stockholders’ equity

Total stockholders’ equity

5,175,110

4,646,859

          Total liabilities and stockholders’ equity

$
8,436,918

$
8,470,724


	March 31, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	554,287	$	798,568
Restricted cash	3,105		8,531
Total cash	557,392		807,099
Real estate inventory:
Owned inventory	5,841,924		5,473,828
Consolidated real estate not owned	143,429		71,618
Total real estate inventory	5,985,353		5,545,446
Land deposits	199,043		203,217
Mortgage loans held for sale	216,633		193,344
Lease right of use assets	72,900		75,203
Prepaid expenses and other assets, net	287,507		290,925
Other receivables, net	189,771		184,518
Investments in unconsolidated entities	369,982		346,192
Deferred tax assets, net	67,825		67,825
Property and equipment, net	300,740		295,121
Goodwill	663,197		663,197
Total assets	$	8,910,343	$	8,672,087
Liabilities
Accounts payable	$	276,093	$	263,481
Accrued expenses and other liabilities	459,095		549,074
Lease liabilities	81,138		84,999
Income taxes payable	45,848		—
Customer deposits	357,657		326,087
Estimated development liabilities	27,416		27,440
Senior notes, net	1,469,135		1,468,695
Loans payable and other borrowings	441,190		394,943
Revolving credit facility borrowings	—		—
Mortgage warehouse borrowings	183,174		153,464
Liabilities attributable to consolidated real estate not owned	143,429		71,618
Total liabilities	$	3,484,175	$	3,339,801
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ equity
Total stockholders’ equity	5,426,168		5,332,286
Total liabilities and stockholders’ equity	$	8,910,343	$	8,672,087

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts, unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Home closings revenue, net

$
1,611,883

$
1,983,775

$
5,221,225

$
5,511,204

Land closings revenue

14,291

14,225

31,439

66,651

Financial services revenue

40,045

27,749

117,108

98,419

Amenity and other revenue

9,326

8,895

28,194

56,517

Total revenue

1,675,545

2,034,644

5,397,966

5,732,791

Cost of home closings

1,238,999

1,438,164

3,980,749

4,084,748

Cost of land closings

13,572

11,571

30,620

50,139

Financial services expenses

23,128

20,395

70,618

66,092

Amenity and other expenses

8,128

6,574

25,010

39,264

Total cost of revenue

1,283,827

1,476,704

4,106,997

4,240,243

Gross margin

391,718

557,940

1,290,969

1,492,548

Sales, commissions and other marketing costs

98,797

94,692

304,591

279,950

General and administrative expenses

68,994

52,357

205,904

189,905

Net (income)/loss from unconsolidated entities

(1,934
)

1,180

(7,049
)

2,986

Interest (income)/expense, net

(5,782
)

4,382

(12,013
)

13,823

Other expense/(income), net

2,968

5,751

6,683

(4,720
)
Loss/(gain) on extinguishment of debt, net

269

(71
)

269

(13,542
)
Income before income taxes

228,406

399,649

792,584

1,024,146

Income tax provision

57,960

90,418

196,005

243,300

Net income before allocation to non-controlling interests

170,446

309,231

596,579

780,846

Net loss/(income) attributable to non-controlling interests

245

548

(235
)

(3,377
)
Net income available to Taylor Morrison Home Corporation

$
170,691

$
309,779

$
596,344

$
777,469

Earnings per common share

Basic

$
1.57

$
2.75

$
5.48

$
6.63

Diluted

$
1.54

$
2.72

$
5.40

$
6.56

Weighted average number of shares of common stock:

Basic

108,837

112,701

108,827

117,242

Diluted

110,622

113,780

110,536

118,438


	Three Months Ended March 31,
	2024		2023
Home closings revenue, net	$	1,636,255	$	1,612,595
Land closings revenue	7,225		4,520
Financial services revenue	46,959		35,149
Amenity and other revenue	9,313		9,593
Total revenue	1,699,752		1,661,857
Cost of home closings	1,243,209		1,227,513
Cost of land closings	5,202		4,345
Financial services expenses	25,143		22,148
Amenity and other expenses	9,353		8,285
Total cost of revenue	1,282,907		1,262,291
Gross margin	416,845		399,566
Sales, commissions and other marketing costs	102,600		92,760
General and administrative expenses	67,564		66,261
Net income from unconsolidated entities	(2,751)		(1,929)
Interest income, net	(43)		(1,111)
Other expense/(income), net	595		(4,834)

Income before income taxes	248,880		248,419
Income tax provision	57,719		57,191
Net income before allocation to non-controlling interests	191,161		191,228
Net income attributable to non-controlling interests	(891)		(177)
Net income	$	190,270	$	191,051
Earnings per common share:
Basic	$	1.79	$	1.76
Diluted	$	1.75	$	1.74
Weighted average number of shares of common stock:
Basic	106,457		108,429
Diluted	108,564		110,053

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share data, unaudited)

For the three months ended ~~September 30, 2023~~March 31, 2024

Common Stock

Additional
Paid-in
Capital

Treasury Stock

Stockholders' Equity

Shares

Amount

Amount

Shares

Amount

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Non-
controlling
Interest

Total
Stockholders’
Equity

Balance – June 30, 2023

109,443,784

$
1

$
3,051,377

51,506,248

$
(1,140,706
)

$
3,167,268

$
359

$
17,014

$
5,095,313

Net income

—

—

—

—

—

170,691

—

(245
)

170,446

Exercise of stock options and issuance of restricted stock units, net(1)

164,510

—

3,649

—

—

—

—

—

3,649

Repurchase of common stock

(2,169,657
)

—

—

2,169,657

(100,000
)

—

—

—

(100,000
)
Stock compensation expense

—

—

5,702

—

—

—

—

—

5,702

Balance – September 30, 2023

107,438,637

$
1

$
3,060,728

53,675,905

$
(1,240,706
)

$
3,337,959

$
359

$
16,769

$
5,175,110


	Common Stock			Additional Paid-in Capital		Treasury Stock			Stockholders' Equity
	Shares	Amount		Amount		Shares	Amount		Retained Earnings		Accumulated Other Comprehensive Income		Non- Controlling Interests		Total Stockholders’ Equity
Balance – December 31, 2023	106,917,636	$	1	$	3,068,597	54,211,879	$	(1,265,097)	$	3,510,544	$	896	$	17,345	$	5,332,286
Net income	—	—		—		—	—		190,270		—		891		191,161
Exercise of stock options and issuance of restricted stock units, net(1)	633,766	—		(10,856)		—	—		—		—		—		(10,856)
Repurchase of common stock	(1,491,485)	—		—		1,491,485	(91,649)		—		—		—		(91,649)
Stock compensation expense	—	—		5,483		—	—		—		—		—		5,483
Distributions to non-controlling interests of consolidated joint ventures	—	—		—		—	—		—		—		(257)		(257)

Balance – March 31, 2024	106,059,917	$	1	$	3,063,224	55,703,364	$	(1,356,746)	$	3,700,814	$	896	$	17,979	$	5,426,168

(1)

Dollar amount includes $~~3.7~~$4.0 million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units.

For the three months ended ~~September 30, 2022~~March 31, 2023

Common Stock

Additional
Paid-in
Capital

Treasury Stock

Stockholders' Equity

Shares

Amount

Amount

Shares

Amount

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Non-
controlling
Interest

Total
Stockholders’
Equity

Balance – June 30, 2022

113,640,725

$
1

$
3,008,619

45,556,244

$
(991,276
)

$
2,156,505

$
689

$
19,357

4,193,895

Net income

—

—

—

—

—

309,779

—

(548
)

309,231

Exercise of stock options and issuance of restricted stock units, net(1)

80,708

—

1,512

—

—

—

—

—

1,512

Repurchase of common stock

(4,213,256
)

—

—

4,213,256

(104,999
)

—

—

—

(104,999
)
Stock compensation expense

—

—

5,333

—

—

—

—

—

5,333

Distributions to non-controlling interests of consolidated joint ventures

—

—

—

—

—

—

—

(1,515
)

(1,515
)
Changes in non-controlling interests of consolidated joint ventures

—

—

—

—

—

—

—

9

9

Balance – September 30, 2022

109,508,177

$
1

$
3,015,464

49,769,500

$
(1,096,275
)

$
2,466,284

$
689

$
17,303

$
4,403,466


	Common Stock			Additional Paid-in Capital		Treasury Stock			Stockholders' Equity
	Shares	Amount		Amount		Shares	Amount		Retained Earnings		Accumulated Other Comprehensive Income		Non- Controlling Interests		Total Stockholders’ Equity
Balance – December 31, 2022	107,995,262	$	1	$	3,025,489	51,396,923	$	(1,137,138)	$	2,741,615	$	359	$	16,533	4,646,859
Net income	—	—		—		—	—		191,051		—		177		191,228
Exercise of stock options and issuance of restricted stock units, net(1)	1,148,175	—		4,493		—	—		—		—		—		4,493
Repurchase of common stock	(109,325)	—		—		109,325	(3,568)		—		—		—		(3,568)
Stock compensation expense	—	—		7,533		—	—		—		—		—		7,533

Changes in non-controlling interests of consolidated joint ventures	—	—		—		—	—		—		—		1		1
Balance – March 31, 2023	109,034,112	$	1	$	3,037,515	51,506,248	$	(1,140,706)	$	2,932,666	$	359	$	16,711	$	4,846,546

(1)

Dollar amount includes $~~1.5~~$13.5 million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units.

~~(1)~~

~~Dollar amount includes $26.1~~ ~~million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units.~~

~~(1)~~

~~Dollar amount includes $4.4~~ ~~million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units.~~

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

Nine Months Ended September 30,

2023

2022

Cash Flows from Operating Activities

Net income before allocation to non-controlling interests

$
596,579

$
780,846

Adjustments to reconcile net income to net cash provided by operating activities:

Net (income)/loss from unconsolidated entities

(7,049
)

2,986

Stock compensation expense

18,506

17,474

Loss/(gain) on extinguishment of debt, net

269

(13,542
)
Gain on land transfers

—

(14,508
)
Distributions of earnings from unconsolidated entities

7,377

5,318

Depreciation and amortization

23,717

25,448

Operating lease expense

19,271

20,543

Debt issuance costs amortization

2,574

1,574

Change in Urban Form assets due to sale

—

11,675

Inventory impairments

11,791

—

Changes in operating assets and liabilities:

Real estate inventory and land deposits

(87,776
)

(610,346
)
Mortgage loans held for sale, prepaid expenses and other assets

24,081

245,633

Customer deposits

(31,548
)

41,707

Accounts payable, accrued expenses and other liabilities

(27,231
)

(82,578
)
Income taxes payable

—

27,757

Net cash provided by operating activities

550,561

459,987

Cash Flows from Investing Activities:

Purchase of property and equipment

(47,042
)

(22,478
)
Distributions of capital from unconsolidated entities

733

95,517

Investments of capital into unconsolidated entities

(47,795
)

(91,846
)
Net cash used in investing activities

(94,104
)

(18,807
)
Cash Flows from Financing Activities

Increase in loans payable and other borrowings

2,426

33,495

Repayments on loans payable and other borrowings

(18,367
)

(50,761
)
Borrowings on revolving credit facilities

—

182,548

Repayments on revolving credit facilities

—

(214,077
)
Borrowings on mortgage warehouse facilities

2,203,261

1,783,748

Repayments on mortgage warehouse facilities

(2,317,688
)

(2,051,300
)
Repayments on senior notes

(350,000
)

(264,935
)
Proceeds from stock option exercises and issuance of restricted stock units, net

16,733

779

Payment of principal portion of finance lease

(1,313
)

(1,340
)
Repurchase of common stock, net

(103,568
)

(335,412
)
Cash and distributions to non-controlling interests of consolidated joint ventures, net

—

(30,443
)
Net cash used in financing activities

(568,516
)

(947,698
)
Net Increase/Decrease in Cash and Cash Equivalents and Restricted Cash

$
(112,059
)

$
(506,518
)
Cash, Cash Equivalents, and Restricted Cash — Beginning of period

726,635

836,340

Cash, Cash Equivalents, and Restricted Cash — End of period

$
614,576

$
329,822

Supplemental Cash Flow Information

Income tax payments

$
(154,267
)

$
(176,683
)
Supplemental Non-Cash Investing and Financing Activities:

Change in loans payable issued to sellers in connection with land purchase contracts

$
126,903

$
184,458

Change in inventory not owned

$
(23,548
)

$
(581
)
Investments of land in unconsolidated joint ventures, net

$
—

$
146,649


	Three Months Ended March 31,
	2024		2023
Cash Flows from Operating Activities
Net income before allocation to non-controlling interests	$	191,161	$	191,228
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Net income from unconsolidated entities	(2,751)		(1,929)
Stock compensation expense	5,483		7,533


Distributions of earnings from unconsolidated entities	2,897		847
Depreciation and amortization	10,250		7,087
Operating lease expense	5,903		7,144
Debt issuance costs amortization	741		868


Changes in operating assets and liabilities:
Real estate inventory and land deposits	(363,923)		51,596
Mortgage loans held for sale, prepaid expenses and other assets	(35,783)		190,202
Customer deposits	31,570		1,993
Accounts payable, accrued expenses and other liabilities	(22,133)		(112,097)
Income taxes payable	45,848		2,977
Net cash (used in)/provided by operating activities	$	(130,737)	$	347,449
Cash Flows from Investing Activities:
Purchase of property and equipment	(9,111)		(13,807)
Distributions of capital from unconsolidated entities	—		350
Investments of capital into unconsolidated entities	(23,936)		(11,123)
Net cash used in investing activities	$	(33,047)	$	(24,580)
Cash Flows from Financing Activities
Increase in loans payable and other borrowings	—		2,425
Repayments on loans payable and other borrowings	(11,544)		(7,377)


Borrowings on mortgage warehouse facilities	713,090		634,404
Repayments on mortgage warehouse facilities	(683,380)		(794,142)

Changes in stock option exercises and issuance of restricted stock units, net	(10,856)		4,493
Payment of principal portion of finance lease	(1,327)		(1,305)
Repurchase of common stock, net	(91,649)		(3,568)

Cash and distributions to non-controlling interests of consolidated joint ventures	(257)		—
Net cash used in financing activities	$	(85,923)	$	(165,070)
Net Decrease/Increase in Cash and Cash Equivalents and Restricted Cash	$	(249,707)	$	157,799
Cash, Cash Equivalents, and Restricted Cash — Beginning of period	807,099		726,635
Cash, Cash Equivalents, and Restricted Cash — End of period	$	557,392	$	884,434
Supplemental Cash Flow Information
Income tax refunds	$	120	$	1,943
Supplemental Non-Cash Investing and Financing Activities:
Change in loans payable issued to sellers in connection with land purchase contracts	$	100,453	$	39,865
Change in inventory not owned	$	71,811	$	(21,676)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Description of the Business — Taylor Morrison Home Corporation (“TMHC”), through its subsidiaries (together with TMHC referred to herein as “we,” “our,” “the Company” and “us”), owns and operates a residential homebuilding business and is a land developer. We operate in the states of Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. We provide an assortment of homes across a wide range of price points to appeal to an array of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and ~~resort-lifestyle~~resort- lifestyle buyers. We are the general contractors for all real estate projects and ~~retain~~engage subcontractors for home construction and land development. Our homebuilding segments operate under ~~our~~ various brand names including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. We also have a “Build-to-Rent” homebuilding business which operates under the Yardly brand name. In addition, we develop and construct multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand. We also have operations which provide financial services to customers through our wholly owned mortgage subsidiary, Taylor Morrison Home Funding, INC (“TMHF”), title services through our wholly owned title services subsidiary, Inspired Title Services, LLC (“Inspired Title”), and homeowner’s insurance policies through our ~~wholly owned~~ insurance agency, Taylor Morrison Insurance Services, LLC (“TMIS”). Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West, and Financial Services.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 (the “Annual Report”). ~~Certain prior year amounts have been reclassified to conform to current year presentation.~~ In the opinion of management, the accompanying unaudited Condensed ~~Consolidated Financial Statements~~consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the unaudited Condensed ~~Consolidated Statement~~consolidated statement of ~~Operations.~~operations. The equity from the percentage of the joint ventures not owned by us is presented as “Non-controlling interests” on the unaudited Condensed ~~Consolidated Statement~~consolidated statement of ~~Stockholders’ Equity.~~stockholders’ equity. The balance of ~~Non-Controlling~~non-controlling interests will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses and distributions or contributions associated with the partners within the joint venture.

Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the unaudited Condensed ~~Consolidated Financial Statements~~consolidated financial statements and ~~these~~ accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of ~~acquired assets,~~goodwill, valuation of ~~goodwill, valuation of~~estimated development liabilities, valuation of equity awards, valuation allowance on deferred tax assets, and reserves for warranty and self-insured risks. Actual results could differ from those estimates.

Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated ~~to homes and units~~ generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction, ~~of a home,~~ and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis.

The life cycle of a typical community generally ranges from two to five years,, commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual

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community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots.

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We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings.

We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment. We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023, ~~we recorded $11.8~~ ~~million of inventory~~no impairment ~~relating to one of our communities in our West reporting segment. For the three and nine months ended September 30, 2022, we recorded~~ charges were recorded.no ~~inventory impairment to our real estate inventory. Impairments are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations.~~

In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community's inventory until activity resumes. Such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, we had no ~~inactive projects.~~

In the ordinary course of business, we enter into various option agreements to acquire lots in staged takedowns which may require a significant cash deposit. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots are not purchased. Real estate not owned under these agreements is reflected in Consolidated real estate not owned with a corresponding liability in Liabilities attributable to consolidated real estate not owned in the unaudited Condensed Consolidated Balance Sheets.

long-term strategic assets.

Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once ~~management intends to actively sell a parcel within the next 12 months or the parcel is under contract to sell.~~it meets all criteria in accordance with ASC 360 Property, Plant and Equipment. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. ~~We record~~For the three months ended March 31, 2024 and 2023, we had no material fair value adjustments for land held for ~~sale within Cost of land closings on the unaudited Condensed Consolidated Statements of Operations.~~sale.

Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the immediate use of funds from our available cash or other financing sources, we ~~may~~ transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. We incur interest expense on these arrangements. Interest is based on remaining lots to be purchased and is capitalized for the percentage of lots in each project actively under development, with the remainder expensed and included in Interest income, net on the Condensed consolidated statements of operations. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-significant and non-refundable cash deposit. We are not legally obligated to purchase ~~the balance of~~ the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. As such, these entities are not consolidated. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the unaudited Condensed ~~Consolidated Balance Sheets.~~consolidated balance sheets.

Investments in Consolidated and Unconsolidated Entities

Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation, when we enter into agreements to acquire land or lots and pay a non-refundable

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deposit, we evaluate if a Variable Interest Entity (“VIE”) should be created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the unaudited Condensed ~~Consolidated Balance Sheets.~~consolidated balance sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and

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determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net ~~income/loss~~income from unconsolidated entities on the unaudited Condensed ~~Consolidated Statement~~consolidated statements of ~~Operations~~operations when earned and distributions are credited against our Investments in unconsolidated entities on the unaudited Condensed ~~Consolidated Balance Sheets~~consolidated balance sheets when received.

We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment's carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships among the entity's partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded ~~a $3.5~~ ~~million~~no impairment ~~charge~~charges related to ~~an investment~~the investments in ~~one of our~~ unconsolidated entities ~~for the nine months ended September 30, 2022.~~ No ~~such charges were recorded~~ for the three months ended ~~September 30,2022 or~~March 31, 2024 and 2023.

Treasury Stock — We account for treasury stock, including the ~~three and nine months ended September 30, 2023.~~shares repurchased as part of our Accelerated Share Repurchase program ("ASR"), in accordance with ASC Topic 505-30,

Equity—Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity. Refer to Note 10 - Stockholders' Equity for additional discussion regarding the ASR.

Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services.

Home and land closings revenue

Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of ~~the recognition of~~ home and land ~~sales~~closings revenue:

•

Revenue from closings of residential real estate is recognized when the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.

•

Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.

Amenity and other revenue

We own and operate certain amenities such as golf courses, clubhouses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations.

Financial services revenue

Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. Generally, loans TMHF originates are sold to third party investors within a short period of time, on a

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non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, ~~and~~ based on the difference between the selling price and carrying value of the related loans upon sale, ~~record~~recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses ~~are~~is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on

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the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the ~~statement~~statements of operations in the period in which they occur.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

3. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock (as defined in Note 10) outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of Common Stock were exercised or settled.

The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts):

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Numerator:

Net income available to TMHC

$
170,691

$
309,779

$
596,344

$
777,469

Denominator:

Weighted average shares – basic

108,837

112,701

108,827

117,242

Restricted stock units

940

629

895

659

Stock Options

845

450

814

537

Weighted average shares – diluted

110,622

113,780

110,536

118,438

Earnings per common share – basic:

Net income available to Taylor Morrison Home Corporation

$
1.57

$
2.75

$
5.48

$
6.63

Earnings per common share – diluted:

Net income available to Taylor Morrison Home Corporation

$
1.54

$
2.72

$
5.40

$
6.56


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	190,270	$	191,051
Denominator:
Weighted average shares – basic	106,457		108,429
Restricted stock units	1,112		913
Stock Options	995		711
Weighted average shares – diluted	108,564		110,053
Earnings per common share – basic:
Net income	$	1.79	$	1.76
Earnings per common share – diluted:
Net income	$	1.75	$	1.74

The above calculations of weighted average shares ~~- diluted~~ exclude ~~353,947~~138,521 and ~~282,124~~664,145 of anti-dilutive stock options and unvested performance and non-performance restricted stock units ~~(“RSUs”~~("RSUs") for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023, ~~respectively,~~respectively.

In addition, 155,757 shares relating to our ASR (refer to Note 10 - Stockholders' Equity) were also anti-dilutive and ~~1,560,934~~ ~~and~~ ~~1,470,941~~ ~~of anti-dilutive stock options and RSUs~~excluded from the above for the three ~~and nine~~ months ended ~~September 30, 2022, respectively.~~

March 31, 2024. There were no ASR transactions in 2023.

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ITEM 1. FINANCIAL STATEMENTS

4. REAL ESTATE INVENTORY ~~AND LAND DEPOSITS~~

Inventory consists of the ~~following (in thousands):~~

As of

September 30,
2023

December 31,
2022

Real estate developed and under development

$
3,758,671

$
3,607,227

Real estate held for development or held for sale (1)

46,528

43,314

Total owned

3,805,199

3,650,541

Operating communities (2)

1,487,591

1,506,241

Capitalized interest

187,197

190,123

Total owned inventory

5,479,987

5,346,905

Consolidated real estate not owned

423

23,971

Total real estate inventory

$
5,480,410

$
5,370,876

following:


	As of
(Dollars in thousands)	March 31, 2024		December 31, 2023
Real estate developed and under development	$	4,076,312	$	3,855,534
Real estate held for development or held for sale (1)	46,312		29,317
Total land inventory	4,122,624		3,884,851
Operating communities (2)	1,542,078		1,414,528
Capitalized interest	177,222		174,449
Total owned inventory	5,841,924		5,473,828
Consolidated real estate not owned	143,429		71,618
Total real estate inventory	$	5,985,353	$	5,545,446

(1)

Real estate held for development or held for sale includes properties which are not in active production.

(2)

Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.

~~(1)~~

~~The remaining book value of land and development relates to parcels of commercial assets which are~~. ~~excluded from the homebuilding owned lots presented in the table.~~

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the property owner and its creditors generally only have recourse against us in the form of retaining any non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased.~~The table below presents a~~

A summary of ~~our~~owned and controlled lots ~~for the following periods (dollars~~is as follows:


	As of
(Dollars in thousands)	March 31, 2024	December 31, 2023
Owned lots:
Undeveloped	13,321	13,418
Under development	9,708	8,848
Finished	12,177	11,811
Total owned lots	35,206	34,077
Controlled lots:
Land option purchase contracts	8,145	8,621
Land banking arrangements	5,995	5,818
Other controlled lots(1)	24,836	23,846
Total controlled lots	38,976	38,285
Total owned and controlled lots	74,182	72,362
Homes in inventory	8,578	7,867

(1) Other controlled lots include single transaction take-downs and lots from our portion of unconsolidated JVs.

Lots which have started vertical construction have been excluded from total owned lots. Controlled lots represent lots in ~~thousands):~~

As of

September 30, 2023

December 31, 2022

Controlled Lots

Purchase Price

Land Deposits (1)

Controlled Lots

Purchase Price

Land Deposits (1)

Homebuilding controlled lots

Land option purchase contracts

7,971

$
691,072

$
44,704

6,582

$
428,612

$
47,678

Land banking arrangements

6,199

877,021

135,821

7,369

1,057,065

156,653

Other controlled lots

17,299

1,119,355

22,962

16,891

956,712

50,218

Total controlled lots

31,469

$
2,687,448

$
203,487

30,842

$
2,442,389

$
254,549

~~(1)~~

~~Land deposits are non-refundable and represent exposure to loss related to our contracts with third parties, unconsolidated entities, and~~which we have a contractual right, generally through an option contract or land banking ~~arrangements.~~arrangement as well as paid a land deposit to a seller for an underlying real estate asset. Homes in inventory include any lots with vertical construction.

TAYLOR MORRISON HOME CORPORATION 10-Q

. ~~In addition, at September 30, 2023 and December 31, 2022 we had refundable deposits~~Table of $2.8 ~~million and $8.8~~ ~~million respectively.~~Contents

ITEM 1. FINANCIAL STATEMENTS

Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Interest capitalized - beginning of period

$
191,304

$
185,364

$
190,123

$
168,670

Interest incurred and capitalized(1)

28,270

38,871

94,452

119,415

Interest amortized to cost of home closings

(32,377
)

(33,774
)

(97,378
)

(97,624
)
Interest capitalized - end of period

$
187,197

$
190,461

$
187,197

$
190,461


	Three Months Ended March 31,
	2024		2023
Interest capitalized - beginning of period	$	174,449	$	190,123
Interest incurred and capitalized(1)	26,398		34,133
Interest amortized to cost of home closings	(23,625)		(27,649)
Interest capitalized - end of period	$	177,222	$	196,607

(1)

Excludes Interest ~~(income)/expense,~~income, net on the unaudited Condensed ~~Consolidated Statement~~consolidated statements of ~~Operations~~operations as such amounts are not capitalizable.

5. INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES

Unconsolidated Entities

We have investments in a number of joint ventures with third parties. These entities are generally involved in real estate development, homebuilding, Build-to-Rent, and/or mortgage lending activities. The primary activity of the real estate development joint ventures is development and sale of lots to joint venture partners and/or unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer.

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Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands):

As of

September 30,
2023

December 31,
2022

Assets:

Real estate inventory

$
895,627

$
749,942

Other assets

161,331

146,770

Total assets

$
1,056,958

$
896,712

Liabilities and owners’ equity:

Debt

$
286,941

$
238,263

Other liabilities

40,086

31,824

Total liabilities

$
327,027

$
270,087

Owners’ equity:

TMHC

$
329,634

$
282,900

Others

400,297

343,725

Total owners’ equity

$
729,931

$
626,625

Total liabilities and owners’ equity

$
1,056,958

$
896,712

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Revenues

$
44,010

$
25,495

$
95,647

$
150,062

Costs and expenses

(37,810
)

(27,310
)

(76,575
)

(145,238
)
Net income/(loss) from unconsolidated entities

$
6,200

$
(1,815
)

$
19,072

$
4,824

TMHC’s share in net income/(loss) of unconsolidated entities

$
1,934

$
(1,180
)

$
7,049

$
(2,986
)
Distributions to TMHC from unconsolidated entities

$
2,226

$
10,006

$
8,110

$
100,835


	As of
	March 31, 2024		December 31, 2023
Assets:
Real estate inventory	$	1,011,378	$	952,223
Other assets	242,828		182,517
Total assets	$	1,254,206	$	1,134,740
Liabilities and owners’ equity:
Debt	$	369,954	$	317,224
Other liabilities	63,622		50,739
Total liabilities	$	433,576	$	367,963
Owners’ equity:
TMHC	$	369,982	$	346,192
Others	450,648		420,585
Total owners’ equity	$	820,630	$	766,777
Total liabilities and owners’ equity	$	1,254,206	$	1,134,740


	Three Months Ended March 31,
	2024		2023
Revenues	$	73,767	$	19,536
Costs and expenses	(66,643)		(14,699)
Net income from unconsolidated entities	$	7,124	$	4,837
TMHC’s share in net income of unconsolidated entities	$	2,751	$	1,929
Distributions to TMHC from unconsolidated entities	$	2,897	$	1,197

Consolidated Entities

~~We have several~~

As of March 31, 2024, assets of the consolidated joint ventures ~~for the purpose~~totaled $266.8 million, of which $35.9 million was cash and cash equivalents, $66.7 million was owned real estate ~~development~~inventory, and ~~homebuilding activities, which we have determined~~$120.8 million was property and equipment, net (primarily related to ~~be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities~~Urban Form). The majority of the ~~VIEs, or joint ventures. For this specific subset~~property and equipment, net balance is held for investment as of joint ventures, based upon the allocation of income and loss per the applicable joint venture agreements and certain performance guarantees, we have potentially significant exposure to the risks and rewards of the joint ventures. Therefore, we are the primary beneficiary of these joint venture VIEs, and the entities are consolidated.

March 31, 2024. As of ~~September 30,~~December 31, 2023, the assets of the consolidated joint ventures totaled $~~278.0~~$265.2 million, of which $~~27.9~~$29.8 million was cash and cash equivalents, $~~78.7~~$70.2 million was owned real estate inventory, and $~~122.0~~$121.3 million was fixed assets (primarily related to Urban Form). The majority of the fixed asset balance which was classified as held for sale as of December 31, 2022, was reclassified as held for investment during the second quarter of 2023. As of December 31, 2022, the assets of the consolidated joint ventures totaled $~~277.6~~ ~~million, of which $38.9~~ ~~million was cash~~property and ~~cash equivalents, $72.0~~ ~~million was owned inventory and $123.2~~ ~~million was fixed assets.~~equipment, net. The liabilities of the consolidated joint ventures totaled $~~149.0~~$124.1 million and $~~155.5~~$133.8 million as of ~~September 30, 2023~~

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

March 31, 2024 and December 31, ~~2022,~~2023, respectively, and were primarily comprised of loans payable and other borrowings, accounts payable and accrued expenses and other liabilities.

6. ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following (in thousands):


	As of
	March 31, 2024		December 31, 2023
Real estate development costs to complete	$	45,723	$	46,114
Compensation and employee benefits	77,393		149,095
Self-insurance and warranty reserves	186,948		184,448
Interest payable	26,039		31,042
Property and sales taxes payable	29,442		30,887
Other accruals	93,550		107,488
Total accrued expenses and other liabilities	$	459,095	$	549,074

As of
September 30, 2023

As of
December 31, 2022

Real estate development costs to complete

$
43,838

$
53,155

Compensation and employee benefits

119,193

112,294

Self-insurance and warranty reserves

170,236

161,675

Interest payable

24,645

37,434

Property and sales taxes payable

35,000

30,046

Other accruals

94,350

95,649

Total accrued expenses and other liabilities

$
487,262

$
490,253

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 1. FINANCIAL STATEMENTS~~

Self-Insurance and Warranty Reserves – We accrue for the expected costs associated with our limited warranty, deductibles and self-insured exposure under our various insurance policies within Beneva Indemnity Company (“Beneva”), a wholly owned subsidiary. A summary of the changes in reserves are as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
		2024
		2024
		2024
Reserve - beginning of period
Reserve - beginning of period
Reserve - beginning of period	$	160,326		$	137,491		$	161,675		$	141,839
Additions to reserves		28,076			2,514			67,411			34,917
Additions to reserves
Additions to reserves
Cost of claims incurred
Cost of claims incurred
Cost of claims incurred		(18,795	)		(3,541	)		(62,622	)		(43,743	)
Changes in estimates to pre-existing reserves		629			3,527			3,772			6,978
Changes in estimates to pre-existing reserves
Changes in estimates to pre-existing reserves
Reserve - end of period	$	170,236		$	139,991		$	170,236		$	139,991
Reserve - end of period
Reserve - end of period

Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those reserved and such differences could be material, resulting in a change in future estimated reserves.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

7. DEBT

Total debt consists of the following (in thousands):

As of

September 30, 2023

December 31, 2022

Principal

Unamortized
Debt Issuance (Costs)/
Premium

Carrying
Value

Principal

Unamortized
Debt Issuance (Costs)/
Premium

Carrying
Value

5.625% Senior Notes due 2024(1)

—

—

—

350,000

(628
)

349,372

5.875% Senior Notes due 2027

500,000

(2,867
)

497,133

500,000

(3,459
)

496,541

6.625% Senior Notes due 2027(2)

27,070

1,094

28,164

27,070

1,310

28,380

5.75% Senior Notes due 2028

450,000

(2,709
)

447,291

450,000

(3,183
)

446,817

5.125% Senior Notes due 2030

500,000

(4,333
)

495,667

500,000

(4,807
)

495,193

Senior Notes subtotal

$
1,477,070

$
(8,815
)

$
1,468,255

$
1,827,070

$
(10,767
)

$
1,816,303

Loans payable and other borrowings

332,177

—

332,177

361,486

—

361,486

$1 Billion Revolving Credit Facility(3)(4)

—

—

—

—

—

—

$100 Million Revolving Credit Facility(3)(4)

—

—

—

—

—

—

Mortgage warehouse borrowings

191,645

—

191,645

306,072

—

306,072

Total debt

$
2,000,892

$
(8,815
)

$
1,992,077

$
2,494,628

$
(10,767
)

$
2,483,861


	As of
	March 31, 2024						December 31, 2023
	Principal		Unamortized Debt Issuance (Costs)/ Premium		Carrying Value		Principal		Unamortized Debt Issuance (Costs)/ Premium		Carrying Value
5.875% Senior Notes due 2027	500,000		(2,476)		497,524		500,000		(2,672)		497,328
6.625% Senior Notes due 2027	27,070		950		28,020		27,070		1,022		28,092
5.75% Senior Notes due 2028	450,000		(2,394)		447,606		450,000		(2,551)		447,449
5.125% Senior Notes due 2030	500,000		(4,015)		495,985		500,000		(4,174)		495,826
Senior Notes subtotal	$	1,477,070	$	(7,935)	$	1,469,135	$	1,477,070	$	(8,375)	$	1,468,695
Loans payable and other borrowings	441,190		—		441,190		394,943		—		394,943
$1 Billion Revolving Credit Facility(1)(2)	—		—		—		—		—		—
$100 Million Revolving Credit Facility(1)(2)	—		—		—		—		—		—
Mortgage warehouse borrowings	183,174		—		183,174		153,464		—		153,464
Total debt	$	2,101,434	$	(7,935)	$	2,093,499	$	2,025,477	$	(8,375)	$	2,017,102

(1)

~~On September 1, 2023, the~~ ~~5.625% Senior Notes due 2024 (the "2024 Senior Notes") were redeemed in full.~~

~~(2)~~

~~Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting.~~

~~(3)~~

Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Condensed ~~Consolidated Balance Sheets.~~

consolidated balance sheets.

~~(4)~~(2)

The $1$1 Billion Revolving Credit Facility Agreement together with the $~~100~~$100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”.

Debt Instruments

Excluding the debt instruments discussed below, the terms governing all other debt instruments listed in the table above have not substantially changed from the year ended December 31, ~~2022.~~2023. For information regarding such instruments, refer to Note 8 - Debt to the Consolidated Financial Statements in our Annual Report. As of ~~September 30, 2023,~~March 31, 2024, we were in compliance with all of the covenants in the debt instruments listed in the table above.

~~5.625% Senior Notes due 2024~~

~~Our 2024 Senior Notes were redeemed in full on September~~

$1 ~~2023 using cash on hand at a price equal to~~ ~~100%, plus the accrued and unpaid interest up to, but excluding, the redemption date. As a result of the redemption of the 2024 Senior Notes, we recorded a net loss on extinguishment of debt of $0.3~~ million for the three months ended September 30, 2023 to Loss/(gain) on extinguishment of debt, net, on the Condensed Consolidated Statement of Operations, which included the write-off of net unamortized deferred financing fees.

$1 Billion Revolving Credit Facility

Our $1$1 Billion Revolving Credit Facility has a maturity date of March 11, ~~2027~~.2027. We had no outstanding borrowings under our $1$1 Billion Revolving Credit Facility as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022.~~2023.

As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, we had $~~3.1~~$2.7 million and $~~3.8~~$2.9 million, respectively, of unamortized debt issuance costs relating to our $1$1 Billion Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the unaudited Condensed ~~Consolidated Balance Sheets.~~consolidated balance sheets. As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, we had $~~70.4~~$59.9 million and $~~69.2~~$61.2 million,

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 1. FINANCIAL STATEMENTS~~

respectively, of utilized letters of credit, resulting in $~~929.6~~$940.1 million and $~~930.8~~$938.8 million, respectively, of availability under the $1$1 Billion Revolving Credit Facility.

~~The $~~1 ~~Billion Revolving Credit Facility contains certain “springing” financial covenants, requiring us and our subsidiaries to comply with a maximum debt to capitalization ratio of not more than~~ ~~0.60~~ ~~to 1.00 and a minimum consolidated tangible net worth level, currently of at least $3.2~~ ~~billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $~~1 Billion Revolving Credit Facility are outstanding during the last day of such fiscal quarter or on more than five separate days during such fiscal quarter or (b) undrawn letters of credit (except to the extent cash collateralized) issued under the $1 ~~Billion Revolving Credit Facility in an aggregate amount greater than $40.0~~ ~~million or unreimbursed letters of credit issued under the $~~1 ~~Billion Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than~~ ~~five~~ ~~consecutive days during such fiscal quarter. For purposes of determining compliance with the financial covenants for any fiscal quarter, the $~~1 Billion Revolving Credit Facility provides that we may exercise an equity cure by issuing certain permitted securities for cash or otherwise recording cash contributions to our capital that will, upon the contribution of such cash, be included in the calculation of consolidated tangible net worth and consolidated total capitalization. The equity cure right is exercisable up to twice in any period of ~~four~~ ~~consecutive fiscal quarters and up to~~ ~~five~~ ~~times overall.~~

~~The $~~1 Billion Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, the payment of dividends and other distributions, asset dispositions and investments in entities that are not guarantors, limitations on prepayment of subordinated indebtedness and limitations on fundamental changes. The $1 Billion Revolving Credit Facility contains customary events of default, subject to applicable grace periods, including for nonpayment of principal, interest or other amounts, violation of covenants (including financial covenants, subject to the exercise of an equity cure), incorrectness of representations and warranties in any material respect, cross default and cross acceleration, bankruptcy, material monetary judgments, ERISA events with material adverse effect, actual or asserted invalidity of material guarantees and change of control.

As of ~~September 30, 2023,~~March 31, 2024, we were in compliance with all of the covenants under the $1$1 Billion Revolving Credit Facility.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

Mortgage Warehouse Borrowings

The following is a summary of our mortgage warehouse borrowings (in thousands):

As of September 30, 2023
Facility

Amount
Drawn

Facility
Amount

Interest
Rate

Expiration
Date

Collateral (1)
Warehouse A

$
39,294

$
60,000

Daily SOFR + 1.70%

on Demand

Mortgage Loans
Warehouse B(2)

—

—

N/A

N/A

N/A
Warehouse C

51,990

100,000

Term SOFR + 1.65%

on Demand

Mortgage Loans & Pledged Cash
Warehouse D

42,938

100,000

Daily SOFR + 1.50%

September 4, 2024

Mortgage Loans
Warehouse E

57,423

100,000

Term SOFR + 1.60%

on Demand

Mortgage Loans
Total

$
191,645

$
360,000

As of December 31, 2022
Facility

Amount
Drawn

Facility
Amount

Interest
Rate

Expiration
Date

Collateral (1)
Warehouse A

$
29,066

$
60,000

Daily SOFR + 1.70%

on Demand

Mortgage Loans
Warehouse B

94,258

150,000

BSBY 1M + 1.65%

on Demand

Mortgage Loans
Warehouse C

53,607

75,000

Term SOFR + 1.65%

on Demand

Mortgage Loans & Pledged Cash
Warehouse D

83,259

140,000

Daily SOFR + 1.50%

September 6, 2023

Mortgage Loans
Warehouse E

45,882

70,000

Term SOFR + 1.60%

on Demand

Mortgage Loans
Total

$
306,072

$
495,000

As of March 31, 2024

Facility

Amount
Drawn

Facility
Amount

Interest

Rate(2)

Expiration
Date

Collateral (1)

Warehouse A

—

60,000

Term SOFR + 1.70%

on Demand

Mortgage Loans

Warehouse C

59,603

100,000

Term SOFR + 1.50%

on Demand

Mortgage Loans

Warehouse D

60,511

100,000

Daily SOFR + 1.50%

September 4, 2024

Mortgage Loans

Warehouse E

63,060

100,000

Term SOFR + 1.60%

on Demand

Mortgage Loans

Total

183,174

360,000

As of December 31, 2023

Facility

Amount
Drawn

Facility
Amount

Interest

Rate(2)

Expiration
Date

Collateral (1)

Warehouse A

13,477

60,000

Term SOFR + 1.70%

on Demand

Mortgage Loans

Warehouse C

25,567

100,000

Term SOFR + 1.65%

on Demand

Mortgage Loans

Warehouse D

56,745

100,000

Daily SOFR + 1.50%

September 4, 2024

Mortgage Loans

Warehouse E

57,675

100,000

Term SOFR + 1.60%

on Demand

Mortgage Loans

Total

153,464

360,000

(1)

The mortgage warehouse borrowings outstanding as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 were collateralized by $~~241.7~~$216.6 million and $~~346.4~~$193.3 million, respectively, of mortgage loans held for ~~sale, which comprise the balance of mortgage loans held for sale, and approximately $~~sale.~~0.8~~ ~~million and $2.1~~ ~~million, respectively, of restricted cash on our unaudited Condensed Consolidated Balance Sheets.~~

(2)

Beginning October 1, 2023, the lender for Warehouse B discontinued providing mortgage warehouse facility financings to the industry in general. We terminated the facility on August 17, 2023. The facility amounts for Warehouses D and E were expanded to offset the loss of liquidity from Warehouse B.

Loans Payable and Other Borrowings

Loans payable and other borrowings as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 consist of project-level debt due to various land sellers and financial institutions for specific ~~projects.~~communities. Project-level debt is generally secured by the land that was acquired and the principal payments generally coincide with corresponding project lot closings or a principal reduction schedule. Loans payable bear interest at rates that ranged from 0%0% to 9%10% and 0%0% to 8%9% at ~~each of September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively. We impute interest for loans with no stated interest rates.

8. FAIR VALUE DISCLOSURES

ASC Topic 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 for identical assets or liabilities in active markets.

Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable.

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.

The fair value of our mortgage loans held for sale is derived from negotiated rates with partner lending institutions. Derivative assets and liabilities include interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our ~~Senior Notes~~senior notes is derived from quoted market prices by independent dealers in markets that are not active. ~~The fair value of our Equity Security Investment in a public company is based upon quoted prices for identical assets in an active market.~~ There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of ~~September 30, 2023,~~March 31, 2024, when compared to December 31, ~~2022.~~2023.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

The carrying value and fair value of our financial instruments are as follows:

September 30, 2023

December 31, 2022

(Dollars in thousands)

Level in Fair
Value Hierarchy

Carrying
Value

Estimated
Fair Value

Carrying
Value

Estimated
Fair Value

Description:

Mortgage loans held for sale

2

$
241,749

$
241,749

$
346,364

$
346,364

IRLCs

3

(5,408
)

(5,408
)

2,386

2,386

MBSs

2

7,125

7,125

1,090

1,090

Mortgage warehouse borrowings

2

191,645

191,645

306,072

306,072

Loans payable and other borrowings

2

332,177

332,177

361,486

361,486

5.625% Senior Notes due 2024 (1)(2)

2

—

—

349,372

347,375

5.875% Senior Notes due 2027 (2)

2

497,133

473,860

496,541

480,060

6.625% Senior Notes due 2027 (2)

2

28,164

24,972

28,380

26,123

5.75% Senior Notes due 2028 (2)

2

447,291

419,589

446,817

421,358

5.125% Senior Notes due 2030 (2)

2

495,667

437,940

495,193

434,330

Equity Security

1

460

460

460

460


		March 31, 2024				December 31, 2023
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Description:
Mortgage loans held for sale	2	$	216,633	$	216,633	$	193,344	$	193,344
IRLCs	3	(795)		(795)		1,489		1,489
MBSs	2	(2,039)		(2,039)		(5,055)		(5,055)
Mortgage warehouse borrowings	2	183,174		183,174		153,464		153,464
Loans payable and other borrowings	2	441,190		441,190		394,943		394,943
5.875% Senior Notes due 2027 (1)	2	497,524		498,790		497,328		502,500
6.625% Senior Notes due 2027 (1)	2	28,020		26,393		28,092		26,529
5.75% Senior Notes due 2028 (1)	2	447,606		446,103		447,449		451,571
5.125% Senior Notes due 2030 (1)	2	495,985		475,805		495,826		483,690

(1)

~~On September 1, 2023, the 2024 Senior Notes were redeemed in full.~~

~~(2)~~

Carrying value for ~~Senior Notes,~~senior notes, as presented, includes unamortized debt issuance costs and premiums. Debt issuance costs are not factored into the fair value calculation for the ~~Senior Notes.~~senior notes.

Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The ~~following table presents the~~ fair value ~~for~~of our inventories ~~measured~~ at ~~fair~~March 31, 2024 and December 31, 2023 was not determined as there were no events or circumstances that indicated their carrying value ~~on a nonrecurring basis:~~was not recoverable.

(Dollars in thousands)

Level in Fair
Value Hierarchy

As of
September 30, 2023

As of
December 31, 2022

Description:

Real estate inventories

3

$
19,263

$
48,360

9. INCOME TAXES

The effective tax rate for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 was ~~25.4% and~~ ~~24.7~~%23.2%, ~~respectively,~~ compared to ~~22.6% and~~ ~~23.8%, respectively,~~23.0% for the same ~~periods~~period in ~~2022.~~

2023. For the three ~~and nine~~ months ended ~~September 30, 2023 and 2022~~,March 31, 2024, the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to state income taxes, excess tax benefits related to stock-based

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 1. FINANCIAL STATEMENTS~~

compensation, ~~and special deductions~~ and credits related to homebuilding activities. ~~The Inflation Reduction Act, enacted in August 2022, extended Internal Revenue Code ("IRC") §45L energy efficient homebuilding tax credits and applies to homes closed in 2022-2032.~~

~~The Inflation Reduction Act also created a~~ 15~~% corporate alternative minimum tax. The corporate alternative minimum tax had no impact on our consolidated financial statements for the~~ ~~three and nine months ended September 30, 2023.~~

There were no unrecognized tax benefits as of ~~September 30, 2023~~March 31, 2024 or December 31, ~~2022.~~

2023.

10. STOCKHOLDERS’ EQUITY

Capital Stock

The Company’s authorized capital stock consists of 400,000,000 shares of common stock, par value $~~0.00001~~$0.00001 per share (the “Common Stock”), and 50,000,000 shares of preferred stock, par value $~~0.00001~~$0.00001 per share.

Stock Repurchase Program

On December 15, 2023 the Board of Directors authorized a renewal of the Company's then-existing stock repurchase program which permits the repurchase up to $500 million of the Company’s common stock through December 31, 2025. Repurchases under the program may occur from time to time through open market purchases, privately negotiated transactions or other transactions.

On March 5, 2024, using the availability under our stock repurchase program, we entered into an ASR agreement and paid $50.0 million to receive an initial delivery of 705,343 shares of our common stock in accordance with the ASR agreement with a third-party financial institution. The final settlement of the ASR is expected to occur no later than the third quarter of 2024, at which time, a volume-weighted average price calculation over the term of the ASR agreement will be used to determine the final number of shares to be delivered. We accounted for the ASR as a common stock repurchase and a forward contract indexed to our own common stock. We determined that the equity classification criteria was met for the forward contract; therefore, it was not accounted for as a derivative instrument.

The following table summarizes share repurchase activity for the periods presented:

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in thousands)

2023

2022

2023

2022

Amount available for repurchase — beginning of period

$
275,570

$
425,000

$
279,138

$
230,413

Amount cancelled from expired or unused authorizations

—

—

—

(75,000
)
Additional amount authorized for repurchase

—

—

—

500,000

Amount repurchased

(100,000
)

(104,999
)

(103,568
)

(335,412
)
Amount available for repurchase — end of period

$
175,570

$
320,001

$
175,570

$
320,001

~~The Company~~

ITEM 1. FINANCIAL STATEMENTS


	Three Months Ended March 31,
(Dollars in thousands)	2024		2023
Amount available for repurchase — beginning of period	$	494,489	$	279,138


Amount repurchased(1)	(91,649)		(3,568)
Amount available for repurchase — end of period	$	402,840	$	275,570

(1) This amount includes $50.0 million of accelerated share repurchase.

We repurchased ~~2,169,657~~a total of 1,491,485 and ~~2,278,982~~109,325 shares during the three ~~and nine~~ months ended ~~September 30, 2023, respectively. The Company repurchased~~ ~~4,213,256~~March 31, 2024 and ~~12,940,941~~ ~~shares during the three and nine months ended September 30, 2022, respectively.~~

2023.

The Inflation Reduction Act was enacted on August 16, 2022 and includes a one percent excise tax on the net repurchase of company stock. This act was effective as of January 1, 2023 and did not have a material impact on our financial statements for the three ~~and nine~~ months ended ~~September 30, 2023.~~March 31, 2024. We will continue to assess the impact it may have on our financial results.

11. STOCK BASED COMPENSATION

Equity-Based Compensation

In April 2013, we adopted the Taylor Morrison Home Corporation 2013 Omnibus Equity Award Plan (the “Plan”). The Plan was most recently amended and restated in May 2022. The Plan provides for the grant of stock options, RSUs, performance-based restricted stock units (“PRSUs”), and other equity-based awards deliverable in shares of our Common Stock. As of ~~September 30, 2023,~~March 31, 2024, we had an aggregate of ~~5,117,222~~4,898,061 shares of Common Stock available for future grants under the Plan.

The following table provides the outstanding balance of RSUs, PRSUs, and stock options as of ~~September 30, 2023:~~

RSUs and PRSUs

Stock Options

Units

Weighted Average
Grant Date Fair
Value

Units

Weighted
Average Exercise
Price Per Share

Balance at September 30, 2023

1,490,914

$
30.26

2,265,448

$
26.80

March 31, 2024:

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 1. FINANCIAL STATEMENTS~~

RSUs and PRSUs Stock Options
Number of Units Weighted Average
Grant Date Fair
Value Number of Options Weighted
Average Exercise
Price Per Share
Balance at March 31, 2024 1,337,595 $ 37.72 2,236,404 $ 28.44

The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in General and administrative expenses in the unaudited Condensed ~~Consolidated Statements~~consolidated statements of ~~Operations~~operations (in thousands):

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Restricted stock units (1)

$
4,615

$
4,215

$
15,502

$
14,133

Stock options

1,087

1,118

3,004

3,341

Total stock compensation

$
5,702

$
5,333

$
18,506

$
17,474


	Three Months Ended March 31,
	2024		2023
Restricted stock units (1)	$	4,772	$	6,675
Stock options	711		858
Total stock compensation	$	5,483	$	7,533

(1)

Includes compensation expense related to time-based RSUs and PRSUs.

At ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, the aggregate unrecognized value of all outstanding stock-based compensation awards was approximately $~~32.9~~$45.2 million and $~~27.1~~$26.5 million, respectively.

12. OPERATING AND REPORTING SEGMENTS

We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. The activity from our Build-to-Rent and Urban Form operations are included in our Corporate segment. We also have a Financial Services reporting segment. ~~We have no inter-segment sales as all sales are to external customers.~~

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

Our reporting segments are as follows:

Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows (in thousands):

Three Months Ended September 30, 2023

East

Central

West

Financial
Services

Corporate
and
Unallocated(1)

Total

Total revenue

$
582,557

$
433,610

$
615,817

$
40,045

$
3,516

$
1,675,545

Gross margin

158,096

109,481

106,103

16,917

1,121

391,718

Selling, general and administrative expenses

(42,957
)

(37,712
)

(45,442
)

91

(41,771
)

(167,791
)
Net (loss)/income from unconsolidated entities

—

(81
)

341

1,671

3

1,934

Interest and other (expense)/income, net (2)

(425
)

(2,380
)

(2,929
)

—

8,548

2,814

Loss on extinguishment of debt, net

—

—

—

—

(269
)

(269
)
Income/(loss) before income taxes

$
114,714

$
69,308

$
58,073

$
18,679

$
(32,368
)

$
228,406


	Three Months Ended March 31, 2024
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Total revenue	$	547,311	$	478,490	$	622,829	$	46,959	$	4,163	$	1,699,752
Gross margin	145,888		124,231		123,664		21,816		1,246		416,845
Selling(2), general and administrative expenses	(46,201)		(39,393)		(44,748)		—		(39,822)		(170,164)
Net (loss)/income from unconsolidated entities	—		(41)		(26)		2,897		(79)		2,751
Interest and other (expense)/income, net(3)	(827)		(2,415)		(3,518)		730		5,478		(552)

Income/(loss) before income taxes	$	98,860	$	82,382	$	75,372	$	25,443	$	(33,177)	$	248,880

(1)

Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Includes sales, commissions, and other marketing costs.

(3) Interest and other (expense)/income, net includes pre-acquisition write-offs ofon terminated projects.


	Three Months Ended March 31, 2023
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Total revenue	$	610,813	$	465,011	$	547,906	$	35,149	$	2,978	$	1,661,857
Gross margin	165,707		111,313		108,627		13,001		918		399,566
Selling(2), general and administrative expenses	(43,047)		(36,956)		(40,484)		—		(38,534)		(159,021)
Net (loss)/income from unconsolidated entities	—		(82)		(235)		2,275		(29)		1,929
Interest and other (expense)/income, net(3)	(1,212)		(1,341)		3,779		—		4,719		5,945

Income/(loss) before income taxes	$	121,448	$	72,934	$	71,687	$	15,276	$	(32,926)	$	248,419

(1)

Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Includes sales, commissions, and other marketing costs.

(3) Interest and other (expense)/income, net includes pre-acquisition write-offs ofon terminated projects.


	As of March 31, 2024
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	2,172,523	$	1,205,995	$	2,805,878	$	—	$	—	$	6,184,396
Investments in unconsolidated entities	63,628		132,007		98,491		5,483		70,373		369,982
Other assets	164,058		221,082		596,523		320,556		1,053,746		2,355,965
Total assets	$	2,400,209	$	1,559,084	$	3,500,892	$	326,039	$	1,124,119	$	8,910,343

(1)

~~Includes the activity from our Build-To-Rent and Urban Form operations~~

~~(2)~~

~~Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects.~~

~~(1)~~

~~Includes the activity from our Build-To-Rent and Urban Form operations.~~

~~(2)~~

~~Interest and other income/(expense), net includes pre-acquisition write-offs of terminated projects.~~

~~(1)~~

Includes the assets from our Build-To-Rent and Urban Form operations.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

As of December 31, 2022

East

Central

West

Financial
Services

Corporate
and
Unallocated(1)

Total

Real estate inventory and land deposits

$
1,820,765

$
1,359,805

$
2,453,662

$
—

$
—

$
5,634,232

Investments in unconsolidated entities

46,629

104,070

80,310

5,283

46,608

282,900

Other assets

216,816

251,727

613,029

431,535

1,040,485

2,553,592

Total assets

$
2,084,210

$
1,715,602

$
3,147,001

$
436,818

$
1,087,093

$
8,470,724

ITEM 1. FINANCIAL STATEMENTS


	As of December 31, 2023
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,909,084	$	1,181,014	$	2,658,565	$	—	$	—	$	5,748,663
Investments in unconsolidated entities	63,628		125,610		88,219		5,483		63,252		346,192
Other assets	177,739		214,685		616,210		298,451		1,270,147		2,577,232
Total assets	$	2,150,451	$	1,521,309	$	3,362,994	$	303,934	$	1,333,399	$	8,672,087

(1)

Includes the assets from our Build-To-Rent and Urban Form operations.

13. COMMITMENTS AND CONTINGENCIES

Letters of Credit and Surety Bonds — We are committed, under various letters of credit and surety bonds, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit and surety bonds under these arrangements totaled $~~1.3~~$1.3 billion as of ~~September 30, 2023~~March 31, 2024 and $~~1.2~~ ~~billion as of~~ December 31, ~~2022.~~2023. Although significant development and construction activities have been completed related to these site improvements, the bonds are generally not released until all development and construction activities are completed. We do not believe that it is probable that any outstanding bonds as of ~~September 30, 2023~~March 31, 2024 will be drawn upon.

Purchase Commitments —We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in the routine conduct of our business. We have a number of land purchase option contracts and land banking agreements, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property and the property

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 1. FINANCIAL STATEMENTS~~

owner and its creditors generally have no recourse. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits. The aggregate purchase price for land under these contracts was $~~1.6~~$1.5 billion at ~~September 30, 2023~~March 31, 2024 and $~~1.5~~ ~~billion at~~ December 31, ~~2022.~~2023.

Legal Proceedings — We are involved in various litigation and legal claims in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss can be reasonably estimated. At ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, our legal accruals were $~~19.1~~$23.2 million and $~~20.6~~$26.2 million, respectively. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. Predicting the ultimate resolution of the pending matters, the related timing, or the eventual loss associated with these matters is inherently difficult. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the ~~recorded reserves~~accrued liabilities relating to such matter. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows.

On April 26, 2017, a class action complaint was filed in the Circuit Court of the Tenth Judicial Circuit in and for Polk County, Florida by Norman Gundel, William Mann, and Brenda Taylor against Avatar Properties, Inc. (an acquired AV Homes entity) ("Avatar"), generally alleging that our collection of club membership fees in connection with the use of one of our amenities in our East homebuilding segment violates various laws relating to homeowner associations and other Florida-specific ~~laws.~~laws (the "Solivita litigation"). The class action complaint ~~seeks~~sought an injunction to prohibit future collection of club membership fees. On November 2, 2021, the ~~trial~~ court determined that the club membership fees were improper and that plaintiffs were entitled to $~~35.0~~$35.0 million in fee reimbursements. We appealed the court’s ruling to the Sixth District Court of Appeal on November 29, 2021, and onthe plaintiffs agreed to continue to pay club membership fees pending the outcome of the appeal. On June 23, 2023 the District Court affirmed the trial court judgment in a split decision, with three separate opinions. Recognizing the potential “far-reaching effects on homeowners associations throughout the State,” the District Court certified a question of great public importance to the Florida Supreme ~~Court. We have since~~Court, and we filed a notice to invoke the discretionary review of the Florida Supreme Court.

On November 2, 2023, the Florida Supreme Court declined to exercise jurisdiction.

Following the Florida Supreme Court’s decision, we paid $64.7 million to the plaintiffs during the quarter ended December 31, 2023, which included the amount of the trial court’s judgment, club membership fees received during the pendency of our appeal, pre-judgment interest and post-judgment interest. We expect to incur additional costs with respect to the plaintiff’s legal fees and costs; however, such amount cannot be reasonably estimated. Plaintiffs have ~~agreed~~also asserted claims for additional pre-judgment interest, for which we believe we have substantial defenses. Hearings on the plaintiff's pre-judgment interest and legal fees have been scheduled for the third quarter of 2024.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

After reviewing our amenity arrangements in our Florida communities to ~~continue~~determine whether such arrangements might subject the Company to liability in light of the outcome of the Solivita litigation described above, we identified one additional community with similar claims. On August 13, 2020, Slade Chelbian, a resident of our Bellalago community in Kissimmee, Florida, filed a purported class action suit against Avatar, AV Homes, Inc. and Taylor Morrison Home Corporation in the Circuit Court of the Ninth Circuit in and for Osceola County, Florida, generally alleging that Avatar cannot earn profits from community members for use of club amenities where membership in the club is mandatory for all residents and failure to pay club membership fees could result in the foreclosure of their homes by Avatar. On February 25, 2022, the court stayed the action pending the ~~outcome~~resolution of the Solivita litigation. Following the resolution of the Solivita appeal, the court held a case management conference wherein the court scheduled a class certification hearing for the fourth quarter of 2024, but no class has been certified to the Florida Supreme Court. We believe, based on our assessment and the opinion of external legal counsel, that the trial and District Court’s legal interpretation constitutes legal error and the courts incorrectly ruled on this matter. In accordance with ASC Topic 450, Contingencies, we evaluated the range of loss and the likelihood of each potential amount of loss within the range.

date. While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, we have recorded an accrual for our estimated liability for this matter, which is reflected in ~~evaluating the potential outcomes, we believe the more likely outcome is that we win the appeal to the Florida Supreme Court. This belief is based on~~ our ~~review~~legal accruals as of the legal merit of the judgment and the opinions of the trial and District Courts, as well as the opinion of external legal counsel. Accordingly, in assessing the range of possible loss, we believe the more likely outcome is that we win on appeal to the Florida Supreme Court and will have zero liability.March 31, 2024.

Leases — Our leases primarily consist of office space, construction trailers, model home leasebacks, a ground lease, equipment, and storage units. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases. Lease obligations were $~~86.4~~$81.1 million and $~~100.2~~$85.0 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively. We recorded lease expense of approximately $~~5.8~~ ~~million and $19.3~~$5.9 million for the three ~~and nine~~ months ended ~~September 30, 2023,~~March 31, 2024, and $~~6.9~~ ~~million and $20.5~~$7.1 million for the three ~~and nine~~ months ended ~~September 30, 2022,~~March 31, 2023, within General and administrative expenses on our unaudited Condensed ~~Consolidated Statement~~consolidated statements of ~~Operations~~operations..

14. MORTGAGE HEDGING ACTIVITIES

The following summarizes derivative instrument assets (liabilities) as of the periods presented:

As of

September 30, 2023

December 31, 2022

(Dollars in thousands)

Fair Value

Notional Amount (1)

Fair Value

Notional Amount (1)

IRLCs

$
(5,408
)

$
332,421

$
2,386

$
375,030

MBSs

7,125

479,000

1,090

504,000

Total

$
1,717

$
3,476


	As of
	March 31, 2024				December 31, 2023
(Dollars in thousands)	Fair Value		Notional Amount (1)		Fair Value		Notional Amount (1)
IRLCs	$	(795)	$	271,291	$	1,489	$	219,129
MBSs	(2,039)		481,000		(5,055)		285,000
Total	$	(2,834)			$	(3,566)

(1)

The notional amounts in the table above include mandatory and best effort mortgages, that have been locked and approved.

Total commitments to originate loans approximated $~~359.9~~$291.8 million and $~~419.6~~$242.6 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively. This amount represents the commitments to originate loans that have been locked and approved by underwriting. The notional amounts in the table above includes mandatory and best effort loans that have been locked and approved by underwriting.

We have exposure to credit loss in the event of contractual non-performance by our trading counterparties in derivative instruments that we use in our rate risk management activities. We manage this credit risk by selecting only counterparties that we believe to be financially strong, spreading the risk among multiple counterparties, placing contractual limits on the amount of unsecured credit extended to any single counterparty, and entering into netting agreements with counterparties, as appropriate. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For purposes of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the terms “the Company,” “we,” “us,” or “our” refer to Taylor Morrison Home Corporation (“TMHC”) and its subsidiaries. The Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements included elsewhere in this quarterly report.

Forward-Looking Statements

This quarterly report includes certain forward-looking statements within the meaning of the federal securities laws regarding, among other things, our intentions, plans, beliefs, expectations or predictions of future events, which are considered forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business and operations strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “can,” “could,” “might,” “project” or similar expressions. These statements are based upon assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read this quarterly report, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 (“Annual Report”) and in our subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”). Although we believe that these forward-looking statements are based upon reasonable assumptions and currently available information, you should be aware that many factors, including those described under the heading “Risk Factors” in the Annual Report and in our subsequent filings with the SEC, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.

Our forward-looking statements made herein are made only as of the date of this quarterly report. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except as required by applicable law.

Our principal business is residential homebuilding and the development of lifestyle communities with operations across 11 states. We provide an assortment of homes across a wide range of price points to appeal to an array of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort-lifestyle buyers. We operate under various brand names including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. We also have a “Build-to-Rent” homebuilding business which operates under the Yardly brand name. In addition, we develop and construct multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand name. We also have operations which provide financial services to customers through our wholly owned mortgage subsidiary, TMHF, title services through our wholly owned title services subsidiary, Inspired Title, and homeowner’s insurance policies through our wholly owned insurance agency, TMIS. ~~As of~~ ~~September 30, 2023, our~~Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West and Financial Services, as follows:

As of ~~September 30, 2023,~~March 31, 2024, we employed approximately ~~2,700~~2,900 full-time equivalent persons. Of these, approximately ~~2,300~~2,500 were engaged in corporate and homebuilding operations, and the remaining approximately 400 were engaged in financial services.

~~Factors Affecting Comparability~~

On April 29, 2024, using cash on hand, we acquired the assets of ~~Results~~

~~For the three months ended September 30, 2023 we recognized $11.8 million in inventory impairment. Impairments are recorded~~Pyatt Builders, a privately-held Indianapolis based homebuilder, including access to ~~Cost of home closings on the unaudited Condensed Consolidated Statement of Operations. For the three and nine months ended September 30, 2022, no inventory impairment was incurred.~~

approximately 1,500 homebuilding lots. The entrance into Indianapolis further diversifies

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~For the three~~

our geographic footprint and ~~nine months ended September 30, 2023 we recognized a $0.3 million net loss on extinguishment of debt relating to~~will be incorporated into our ~~redemption~~Central region. The fair value of the ~~2024Senior Notes. For~~assets acquired will be determined during the ~~three~~quarter ended June 30, 2024 and ~~nine months ended September 30, 2022, we recognized a $0.1 million and $13.5 million net gain on extinguishment of debt relating to~~reflected in our partial redemption of our 6.625% Senior Notes due 2027. Such losses and gains are included in Loss/(gain) on extinguishment of debt, net on our unaudited Condensed Consolidated Statements of Operations.balance sheet at that time.

For the three and nine months ended September 30, 2022, we recognized a $0.8 million and $14.5 million gain on land transfers relating to our unconsolidated joint ventures which is included in Other expense/(income), net on the unaudited Condensed Consolidated Statements of Operations. No such gains were recognized in the current year.

~~Third~~First Quarter ~~2023~~2024 Highlights (all comparisons are of the current quarter to the prior year quarter, unless otherwise indicated):

•Net sales orders increased 29% to 3,686, driven by a monthly absorption pace of 3.7 per community versus 2.9 a year ago

•Home closings revenue of $1.6 billion, driven by ~~2,639~~2,731 home closings at an average price of ~~$611,000.~~

•

~~GAAP~~ Home closings gross margin of ~~23.1% and 23.9% excluding inventory impairment.~~

24.0%

•

~~Net sales orders of 2,592, driven by a monthly absorption pace of 2.7 per community versus 2.1 a year ago.~~

•

~~74,000~~74,182 homebuilding lots owned and controlled, ~~at quarter end,~~ representing ~~6.1~~6.5 years of total supply, of which ~~3.5~~3.1 years was ~~owned.~~

owned

•Repurchased 1.5 million common shares for $92 million

•Homebuilding ~~debt-to-capitalization~~debt to capitalization of ~~25.9%~~26.1% on a gross basis and ~~18.8%~~20.1% net of ~~$614~~$554 million of unrestricted ~~cash. Total liquidity was $1.6 billion.~~

•

~~Credit rating upgraded by S&P Global to BB+ from BB with a Stable outlook.~~

Total liquidity of $1.6 billion

~~Book value per share increased 21% year over year to $46.78.~~

The following table sets forth our results of operations for the periods presented:

Three Months Ended
September 30,

Nine Months Ended
September 30,

(Dollars in thousands)

2023

2022

2023

2022

Statements of Operations Data:

Home closings revenue, net

$
1,611,883

$
1,983,775

$
5,221,225

$
5,511,204

Land closings revenue

14,291

14,225

31,439

66,651

Financial services revenue

40,045

27,749

117,108

98,419

Amenity and other revenue

9,326

8,895

28,194

56,517

Total revenue

1,675,545

2,034,644

5,397,966

5,732,791

Cost of home closings

1,238,999

1,438,164

3,980,749

4,084,748

Cost of land closings

13,572

11,571

30,620

50,139

Financial services expenses

23,128

20,395

70,618

66,092

Amenity and other expenses

8,128

6,574

25,010

39,264

Total cost of revenue

1,283,827

1,476,704

4,106,997

4,240,243

Gross margin

391,718

557,940

1,290,969

1,492,548

Sales, commissions and other marketing costs

98,797

94,692

304,591

279,950

General and administrative expenses

68,994

52,357

205,904

189,905

Net (income)/loss from unconsolidated entities

(1,934
)

1,180

(7,049
)

2,986

Interest (income)/expense, net

(5,782
)

4,382

(12,013
)

13,823

Other expense/(income), net

2,968

5,751

6,683

(4,720
)
Loss/(gain) on extinguishment of debt, net

269

(71
)

269

(13,542
)
Income before income taxes

228,406

399,649

792,584

1,024,146

Income tax provision

57,960

90,418

196,005

243,300

Net income before allocation to non-controlling interests

170,446

309,231

596,579

780,846

Net income attributable to non-controlling interests

245

548

(235
)

(3,377
)
Net income available to Taylor Morrison Home Corporation

$
170,691

$
309,779

$
596,344

$
777,469

Home closings gross margin

23.1
%

27.5
%

23.8
%

25.9
%
Sales, commissions and other marketing costs as a percentage of
home closings revenue, net

6.1
%

4.8
%

5.8
%

5.1
%
General and administrative expenses as a percentage of home
closings revenue, net

4.3
%

2.6
%

3.9
%

3.4
%

~~TAYLOR MORRISON HOME CORPORATION 10-Q~~

~~Table of Contents~~

~~ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~


	Three Months Ended March 31,
(Dollars in thousands)	2024			2023
Statements of Operations Data:
Home closings revenue, net	$	1,636,255		$	1,612,595
Land closings revenue	7,225			4,520
Financial services revenue	46,959			35,149
Amenity and other revenue	9,313			9,593
Total revenue	1,699,752			1,661,857
Cost of home closings	1,243,209			1,227,513
Cost of land closings	5,202			4,345
Financial services expenses	25,143			22,148
Amenity and other expenses	9,353			8,285
Total cost of revenue	1,282,907			1,262,291
Gross margin	416,845			399,566
Sales, commissions and other marketing costs	102,600			92,760
General and administrative expenses	67,564			66,261
Net income from unconsolidated entities	(2,751)			(1,929)
Interest income, net	(43)			(1,111)
Other expense/(income), net	595			(4,834)

Income before income taxes	248,880			248,419
Income tax provision	57,719			57,191
Net income before allocation to non-controlling interests	191,161			191,228
Net income attributable to non-controlling interests	(891)			(177)
Net income	$	190,270		$	191,051
Home closings gross margin	24.0		%	23.9		%
Sales, commissions and other marketing costs as a percentage of home closings revenue, net	6.3		%	5.8		%
General and administrative expenses as a percentage of home closings revenue, net	4.1		%	4.1		%

In addition to the results reported in accordance with GAAP, we generally provide our investors with supplemental information relating to: (i) adjusted net income and adjusted earnings per common share, (ii) adjusted income before income taxes and related margin, (iii) adjusted home closings gross margin; (iv) EBITDA and adjusted EBITDA and (v) net homebuilding debt to capitalization ratio.

TAYLOR MORRISON HOME CORPORATION 10-Q

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Adjusted net income, adjusted earnings per common share and adjusted income before income taxes and related margin are non-GAAP financial measures that reflect ~~the~~ net income/(loss) ~~available to the Company~~, excluding to the extent applicable in a given period, the impact of inventory impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, ~~gains/losses~~gain/loss on land transfers to joint ventures and extinguishment of debt, net, and legal settlements the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items.

EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude, ~~as applicable,~~ interest expense/(income), net, amortization of capitalized interest, income taxes, depreciation and amortization (EBITDA), and non-cash compensation expense, if any, inventory impairment charges, impairment of ~~investment~~investments in unconsolidated entities, pre-acquisition abandonment charges, ~~gains/losses~~gain/loss on land transfers to joint ventures, ~~and~~ extinguishment of debt, ~~net.~~ net, and legal settlements that the Company deems not to be in the ordinary course of business, in each case, as applicable in a given period.

Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, plus unamortized debt issuance cost/(premium), net, and less mortgage warehouse borrowings, net of unrestricted cash and cash equivalents (“net homebuilding debt”), by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity). ~~Adjusted home closings gross margin is a non-GAAP financial measure based on GAAP home closings gross margin (which is inclusive of capitalized interest), excluding inventory impairment charges.~~

Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our regions, and to set targets for performance-based compensation. We also use the ratio of net homebuilding debt to total capitalization as an indicator of overall leverage and to evaluate our performance against other companies in the homebuilding industry. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors.

We believe that ~~adjusted net income, adjusted earnings per common share, adjusted income before income taxes and related margin, as well as~~ EBITDA and adjusted EBITDA are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the ratio of net homebuilding debt to total capitalization to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason. We believe that adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the varying effects of items or transactions we do not believe are characteristic of our ongoing operations or performance.

These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours.

~~A reconciliation of~~

Because the company did not experience any material adjustments applicable to (i) adjusted net income and adjusted earnings per common ~~share,~~share; (ii) adjusted income before income taxes and related ~~margin,~~margin; or (iii) adjusted home closings gross margin ~~(iv)~~during the periods presented that would cause such measures to differ from the comparable GAAP measures, such measures have not been separately presented herein.

A reconciliation of (i) EBITDA and adjusted EBITDA and ~~(v)~~(ii) net homebuilding debt to capitalization ratio to the comparable GAAP measures is presented below.

~~Adjusted Net Income and Adjusted Earnings Per Common Share~~

Three Months Ended September 30,

(Dollars in thousands, except per share data)

2023

2022

Net income available to TMHC

$
170,691

$
309,779

Inventory impairments

11,791

—

Gain on land transfers to joint ventures

—

(808
)
Loss/(gain) on extinguishment of debt, net

269

(71
)
Tax impact due to above non-GAAP reconciling items

(3,060
)

205

Adjusted net income

$
179,691

$
309,105

Basic weighted average number of shares

108,837

112,701

Adjusted earnings per common share - Basic

$
1.65

$
2.74

Diluted weighted average number of shares

110,622

113,780

Adjusted earnings per common share - Diluted

$
1.62

$
2.72

TAYLOR MORRISON HOME CORPORATION 10-Q


Part I							FINANCIAL INFORMATION
			2
~~Part I~~		~~FINANCIAL INFORMATION~~
	2	ITEM 1.	Financial Statements of Taylor Morrison Home Corporation (Unaudited)
			2		2			Condensed Consolidated Balance Sheets as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023
			3		3			Condensed Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~
			4		4			Condensed Consolidated Statements of Stockholders’ Equity for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~
			5		6			Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~
			6		7			Notes to the Unaudited Condensed Consolidated Financial Statements
			20	21	ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
			30	34	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk
			31	35	ITEM 4.	Controls and Procedures

Part II				OTHER INFORMATION
			32	ITEM 1.	Legal Proceedings
			~~Part II~~32	ITEM 1A.	~~OTHER INFORMATION~~Risk Factors
			33	36	~~ITEM 1.~~	~~Legal Proceedings~~
	36	~~ITEM 1A.~~	~~Risk Factors~~
	37	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds ~~and Issuer Purchases of Equity Securities~~
			33	37	ITEM 3.	Defaults Upon Senior Securities
			33	37	ITEM 4.	Mine Safety Disclosures
			33	37	ITEM 5.	Other Information
			35	38	ITEM 6.	Exhibits

			36	39SIGNATURES			~~SIGNATURES~~


	As of
	September 30, 2023				December 31, 2022
	Owned Lots		Book Value of Land Developed and Under Development		Owned Lots		Book Value of Land Developed and Under Development
Homebuilding owned lots
Undeveloped		15,204	$	483,845		14,985	$	522,594
Under development		8,281		943,792		10,716		1,106,751
Finished		19,423		2,375,673		18,366		2,018,062
Total homebuilding owned lots		42,908		3,803,310		44,067		3,647,407
Other assets(1)		—		1,889		—		3,134
Total owned lots		42,908	$	3,805,199		44,067	$	3,650,541


	Three Months Ended September 30, 2022
	East			Central			West			Financial Services		Corporate and Unallocated(1)			Total
Total revenue	$	649,058		$	522,846		$	831,409		$	27,749	$	3,582		$	2,034,644
Gross margin		176,015			141,076			231,100			7,354		2,395			557,940
Selling, general and administrative expenses		(42,126	)		(32,589	)		(39,193	)		—		(33,141	)		(147,049	)
Net (loss)/income from unconsolidated entities		—			(86	)		(899	)		546		(741	)		(1,180	)
Interest and other (expense)/income, net (2)		(4,180	)		(1,325	)		(4,065	)		—		(563	)		(10,133	)
Gain on extinguishment of debt, net		—			—			—			—		71			71
Income/(loss) before income taxes	$	129,709		$	107,076		$	186,943		$	7,900	$	(31,979	)	$	399,649


	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	613,811	$	724,488
Restricted cash		765		2,147
Total cash, cash equivalents, and restricted cash		614,576		726,635
Real estate inventory:
Owned inventory		5,479,987		5,346,905
Consolidated real estate not owned		423		23,971
Total real estate inventory		5,480,410		5,370,876
Land deposits		206,258		263,356
Mortgage loans held for sale		241,749		346,364
Lease right of use assets		76,463		90,446
Prepaid expenses and other assets, net		305,581		265,392
Other receivables, net		188,723		191,504
Investments in unconsolidated entities		329,634		282,900
Deferred tax assets, net		67,656		67,656
Property and equipment, net		262,671		202,398
Goodwill		663,197		663,197
Total assets	$	8,436,918	$	8,470,724
Liabilities
Accounts payable	$	272,830	$	269,761
Accrued expenses and other liabilities		487,262		490,253
Lease liabilities		86,401		100,174
Customer deposits		380,544		412,092
Estimated development liabilities		42,271		43,753
Senior notes, net		1,468,255		1,816,303
Loans payable and other borrowings		332,177		361,486
Revolving credit facility borrowings		—		—
Mortgage warehouse borrowings		191,645		306,072
Liabilities attributable to consolidated real estate not owned		423		23,971
Total liabilities	$	3,261,808	$	3,823,865
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ equity
Total stockholders’ equity		5,175,110		4,646,859
Total liabilities and stockholders’ equity	$	8,436,918	$	8,470,724


	Nine Months Ended September 30,
	2023			2022
Cash Flows from Operating Activities
Net income before allocation to non-controlling interests	$	596,579		$	780,846
Adjustments to reconcile net income to net cash provided by operating activities:
Net (income)/loss from unconsolidated entities		(7,049	)		2,986
Stock compensation expense		18,506			17,474
Loss/(gain) on extinguishment of debt, net		269			(13,542	)
Gain on land transfers		—			(14,508	)
Distributions of earnings from unconsolidated entities		7,377			5,318
Depreciation and amortization		23,717			25,448
Operating lease expense		19,271			20,543
Debt issuance costs amortization		2,574			1,574
Change in Urban Form assets due to sale		—			11,675
Inventory impairments		11,791			—
Changes in operating assets and liabilities:
Real estate inventory and land deposits		(87,776	)		(610,346	)
Mortgage loans held for sale, prepaid expenses and other assets		24,081			245,633
Customer deposits		(31,548	)		41,707
Accounts payable, accrued expenses and other liabilities		(27,231	)		(82,578	)
Income taxes payable		—			27,757
Net cash provided by operating activities		550,561			459,987
Cash Flows from Investing Activities:
Purchase of property and equipment		(47,042	)		(22,478	)
Distributions of capital from unconsolidated entities		733			95,517
Investments of capital into unconsolidated entities		(47,795	)		(91,846	)
Net cash used in investing activities		(94,104	)		(18,807	)
Cash Flows from Financing Activities
Increase in loans payable and other borrowings		2,426			33,495
Repayments on loans payable and other borrowings		(18,367	)		(50,761	)
Borrowings on revolving credit facilities		—			182,548
Repayments on revolving credit facilities		—			(214,077	)
Borrowings on mortgage warehouse facilities		2,203,261			1,783,748
Repayments on mortgage warehouse facilities		(2,317,688	)		(2,051,300	)
Repayments on senior notes		(350,000	)		(264,935	)
Proceeds from stock option exercises and issuance of restricted stock units, net		16,733			779
Payment of principal portion of finance lease		(1,313	)		(1,340	)
Repurchase of common stock, net		(103,568	)		(335,412	)
Cash and distributions to non-controlling interests of consolidated joint ventures, net		—			(30,443	)
Net cash used in financing activities		(568,516	)		(947,698	)
Net Increase/Decrease in Cash and Cash Equivalents and Restricted Cash	$	(112,059	)	$	(506,518	)
Cash, Cash Equivalents, and Restricted Cash — Beginning of period		726,635			836,340
Cash, Cash Equivalents, and Restricted Cash — End of period	$	614,576		$	329,822
Supplemental Cash Flow Information
Income tax payments	$	(154,267	)	$	(176,683	)
Supplemental Non-Cash Investing and Financing Activities:
Change in loans payable issued to sellers in connection with land purchase contracts	$	126,903		$	184,458
Change in inventory not owned	$	(23,548	)	$	(581	)
Investments of land in unconsolidated joint ventures, net	$	—		$	146,649


	As of September 30, 2023		As of December 31, 2022
Real estate development costs to complete	$	43,838	$	53,155
Compensation and employee benefits		119,193		112,294
Self-insurance and warranty reserves		170,236		161,675
Interest payable		24,645		37,434
Property and sales taxes payable		35,000		30,046
Other accruals		94,350		95,649
Total accrued expenses and other liabilities	$	487,262	$	490,253


	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2023			2022			2023			2022
Amount available for repurchase — beginning of period	$	275,570		$	425,000		$	279,138		$	230,413
Amount cancelled from expired or unused authorizations		—			—			—			(75,000	)
Additional amount authorized for repurchase		—			—			—			500,000
Amount repurchased		(100,000	)		(104,999	)		(103,568	)		(335,412	)
Amount available for repurchase — end of period	$	175,570		$	320,001		$	175,570		$	320,001


	RSUs and PRSUs				Stock Options
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Exercise Price Per Share
Balance at September 30, 2023		1,490,914	$	30.26		2,265,448	$	26.80


	RSUs and PRSUs			Stock Options
	Number of Units	Weighted Average Grant Date Fair Value		Number of Options	Weighted Average Exercise Price Per Share
Balance at March 31, 2024	1,337,595	$	37.72	2,236,404	$	28.44


	Three Months Ended September 30, 2023
	East			Central			West			Financial Services		Corporate and Unallocated(1)			Total
Total revenue	$	582,557		$	433,610		$	615,817		$	40,045	$	3,516		$	1,675,545
Gross margin		158,096			109,481			106,103			16,917		1,121			391,718
Selling, general and administrative expenses		(42,957	)		(37,712	)		(45,442	)		91		(41,771	)		(167,791	)
Net (loss)/income from unconsolidated entities		—			(81	)		341			1,671		3			1,934
Interest and other (expense)/income, net (2)		(425	)		(2,380	)		(2,929	)		—		8,548			2,814
Loss on extinguishment of debt, net		—			—			—			—		(269	)		(269	)
Income/(loss) before income taxes	$	114,714		$	69,308		$	58,073		$	18,679	$	(32,368	)	$	228,406


	Nine Months Ended September 30, 2023
	East			Central			West			Financial Services		Corporate and Unallocated(1)			Total
Total revenue	$	1,933,434		$	1,521,829		$	1,815,980		$	117,108	$	9,615		$	5,397,966
Gross margin		526,968			381,279			333,843			46,490		2,389			1,290,969
Selling, general and administrative expenses		(133,908	)		(120,058	)		(133,027	)		—		(123,502	)		(510,495	)
Net (loss)/income from unconsolidated entities		—			(63	)		(67	)		7,205		(26	)		7,049
Interest and other (expense)/income, net(2)		(2,773	)		(5,241	)		(2,157	)		—		15,501			5,330
Loss on extinguishment of debt, net		—			—			—			—		(269	)		(269	)
Income/(loss) before income taxes	$	390,287		$	255,917		$	198,592		$	53,695	$	(105,907	)	$	792,584


	Nine Months Ended September 30, 2022
	East			Central			West			Financial Services		Corporate and Unallocated(1)			Total
Total revenue	$	1,810,041		$	1,351,093		$	2,433,893		$	98,419	$	39,345		$	5,732,791
Gross margin		476,241			332,440			635,318			32,327		16,222			1,492,548
Selling, general and administrative expenses		(127,041	)		(95,527	)		(125,086	)		—		(122,201	)		(469,855	)
Net (loss)/income from unconsolidated entities		—			(40	)		(7,004	)		4,799		(741	)		(2,986	)
Interest and other income/(expense), net(2)		5,498			(4,262	)		(9,734	)		—		(605	)		(9,103	)
Gain on extinguishment of debt, net		—			—			—			—		13,542			13,542
Income/(loss) before income taxes	$	354,698		$	232,611		$	493,494		$	37,126	$	(93,783	)	$	1,024,146


	As of September 30, 2023
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,942,255	$	1,157,825	$	2,586,588	$	—	$	—	$	5,686,668
Investments in unconsolidated entities		56,652		121,549		86,047		5,283		60,103		329,634
Other assets		158,361		233,570		595,521		339,649		1,093,515		2,420,616
Total assets	$	2,157,268	$	1,512,944	$	3,268,156	$	344,932	$	1,153,618	$	8,436,918


	As of December 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,820,765	$	1,359,805	$	2,453,662	$	—	$	—	$	5,634,232
Investments in unconsolidated entities		46,629		104,070		80,310		5,283		46,608		282,900
Other assets		216,816		251,727		613,029		431,535		1,040,485		2,553,592
Total assets	$	2,084,210	$	1,715,602	$	3,147,001	$	436,818	$	1,087,093	$	8,470,724


	Three Months Ended September 30,
(Dollars in thousands, except per share data)	2023			2022
Net income available to TMHC	$	170,691		$	309,779
Inventory impairments		11,791			—
Gain on land transfers to joint ventures		—			(808	)
Loss/(gain) on extinguishment of debt, net		269			(71	)
Tax impact due to above non-GAAP reconciling items		(3,060	)		205
Adjusted net income	$	179,691		$	309,105
Basic weighted average number of shares		108,837			112,701
Adjusted earnings per common share - Basic	$	1.65		$	2.74
Diluted weighted average number of shares		110,622			113,780
Adjusted earnings per common share - Diluted	$	1.62		$	2.72


	As of March 31,		Change
	2024	2023
East	113	106	6.6	%
Central	93	98	(5.1)	%
West	125	120	4.2	%
Total	331	324	2.2	%


(Dollars in thousands)	As of September 30, 2023			As of June 30, 2023			As of September 30, 2022
Total debt	$	1,992,077		$	2,393,571		$	2,729,924
Plus: unamortized debt issuance cost, net		8,815			9,613			11,242
Less: mortgage warehouse borrowings	$	(191,645	)		(249,898	)		(146,335	)
Total homebuilding debt	$	1,809,247		$	2,153,286		$	2,594,831
Total equity		5,175,110			5,095,313			4,403,466
Total capitalization	$	6,984,357		$	7,248,599		$	6,998,297
Total homebuilding debt to capitalization ratio		25.9	%		29.7	%		37.1	%

Total homebuilding debt	$	1,809,247		$	2,153,286		$	2,594,831
Less: cash and cash equivalents		(613,811	)		(1,227,264	)		(329,244	)
Net homebuilding debt	$	1,195,436		$	926,022		$	2,265,587
Total equity		5,175,110			5,095,313			4,403,466
Total capitalization	$	6,370,546		$	6,021,335		$	6,669,053
Net homebuilding debt to capitalization ratio		18.8	%		15.4	%		34.0	%


	As of September 30,				Change
	2023		2022
East		107		118		(9.3	)%
Central		94		105		(10.5	)%
West		124		103		20.4	%
Total		325		326		(0.3	)%


	Three Months Ended September 30,
	Net Sales Orders (1)							Sales Value (1)							Average Selling Price
(Dollars in thousands)	2023		2022		Change			2023		2022		Change			2023		2022		Change
East		940		1,041		(9.7	)%	$	559,524	$	640,093		(12.6	)%	$	595	$	615		(3.3	)%
Central		641		450		42.4	%		374,224		267,681		39.8	%		584		595		(1.8	)%
West		1,011		578		74.9	%		680,666		372,223		82.9	%		673		644		4.5	%
Total		2,592		2,069		25.3	%	$	1,614,414	$	1,279,997		26.1	%	$	623	$	619		0.6	%


	Cancellation Rate(1)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
East		8.0	%		9.2	%		8.2	%		7.3	%
Central		14.9	%		22.5	%		16.3	%		12.8	%
West		12.1	%		20.2	%		13.1	%		12.7	%
Total Company		11.4	%		15.6	%		12.3	%		10.6	%


	As of September 30,
	Sold Homes in Backlog (1)							Sales Value							Average Selling Price
(Dollars in thousands)	2023		2022		Change			2023		2022		Change			2023		2022		Change
East		2,421		3,256		(25.6	)%	$	1,613,188	$	2,121,673		(24.0	)%	$	666	$	652		2.1	%
Central		1,464		2,489		(41.2	)%		960,269		1,694,111		(43.3	)%		656		681		(3.7	)%
West		2,233		2,196		1.7	%		1,523,545		1,579,937		(3.6	)%		682		719		(5.1	)%
Total		6,118		7,941		(23.0	)%	$	4,097,002	$	5,395,721		(24.1	)%	$	670	$	679		(1.3	)%


	Three Months Ended September 30,
	Homes Closed							Home Closings Revenue, Net							Average Selling Price
(Dollars in thousands)	2023		2022		Change			2023		2022		Change			2023		2022		Change
East		996		1,118		(10.9	)%	$	572,971	$	638,270		(10.2	)%	$	575	$	571		0.7	%
Central		709		835		(15.1	)%		423,396		522,247		(18.9	)%		597		625		(4.5	)%
West		934		1,097		(14.9	)%		615,516		823,258		(25.2	)%		659		750		(12.1	)%
Total		2,639		3,050		(13.5	)%	$	1,611,883	$	1,983,775		(18.7	)%	$	611	$	650		(6.0	)%


• Cash generated from operations;		• ~~Mortgage warehouse facilities;~~
• Borrowings under our Revolving Credit Facilities; •Our various series of senior notes;	•Mortgage warehouse facilities; •Project-level real estate financing (including non-recourse loans, land banking, and joint ventures); and
• ~~Our various series of senior notes;~~	• Performance, payment and completion surety bonds, and letters of credit.


• the timing of the introduction and start of construction of new projects;			• ~~mix of homes closed;~~
• the timing of sales;		• ~~construction timetables;~~
• the timing of closings of homes, lots and parcels;		• ~~the cost and availability of materials and labor; and~~
• the timing of receipt of regulatory approvals for development and construction;		• ~~weather conditions in the markets in which we build.~~
• the condition of the real estate market and general economic conditions in the areas in which we operate;	•		mix of homes closed; •construction timetables; •the cost and availability of materials and labor; and •weather conditions in the markets in which we build.


	Expected Maturity Date
(In millions, except percentage data)	2023			2024			2025			2026			2027			Thereafter			Total			Fair Value
Fixed Rate Debt	$	54.1		$	141.7		$	75.7		$	44.6		$	543.1		$	950.0		$	1,809.2		$	1,688.5
Weighted average interest rate(1)		3.0	%		3.0	%		3.0	%		3.0	%		5.5	%		5.6	%		5.1	%
Variable Rate Debt(2)	$	191.6		$	—		$	—		$	—		$	—		$	—		$	191.6		$	191.6
Weighted average interest rate		6.9	%		—			—			—			—			—			6.9	%


Period	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)
July 1 to July 31, 2023		—	$	—		—	$	275,570
August 1 to August 31, 2023		1,032,911		46.52		1,032,911		227,523
September 1 to September 30, 2023		1,136,746		45.70		1,136,746		175,570
Total		2,169,657				2,169,657


Exhibit No.		Description
~~Exhibit~~ ~~No.~~		~~Description~~

3.1		Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 30, 2019).


3.2		Amended and Restated By-laws (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 7, 2023).
~~10.1*†~~		~~Amended and Restated Employment Agreement, dated July 24, 2023, between Taylor Morrison, Inc. and Curt VanHyfte~~

31.1*		Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.


31.2*		Certification of Curt VanHyfte, Chief Financial Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.


32.1**		Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.


32.2**		Certification of Curt VanHyfte, Chief Financial Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.


101.INS*		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document


101.SCH*		Inline XBRL Taxonomy Extension Schema ~~Document.~~ Document With Embedded Linkbase Documents
101.CAL*		~~Inline XBRL Taxonomy Extension Calculation Linkbase Document.~~
101.DEF*		~~Inline XBRL Taxonomy Extension Definition Linkbase Document.~~
101.LAB*		~~Inline XBRL Taxonomy Extension Label Linkbase Document.~~
101.PRE*	~~Inline XBRL Taxonomy Extension Presentation Linkbase Document.~~
104	Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2023,~~March 31, 2024, formatted in inline XBRL (and contained in Exhibit 101).


		TAYLOR MORRISON HOME CORPORATION
		Registrant
DATE:	~~October 25, 2023~~April 30, 2024
		/s/ Sheryl D. Palmer
		Sheryl D. Palmer
		Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer)

		/s/ Curt VanHyfte
		Curt VanHyfte
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

		/s/ Joseph Terracciano
		Joseph Terracciano
		Chief Accounting Officer (Principal Accounting Officer)

~~Delaware~~

~~83-2026677~~

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)