Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-35873 | ||
Entity Registrant Name | TAYLOR MORRISON HOME CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2026677 | ||
Entity Address, Address Line One | 4900 N. Scottsdale Road | ||
Entity Address, Address Line Two | Suite 2000 | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85251 | ||
City Area Code | 480 | ||
Local Phone Number | 840-8100 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value | ||
Trading Symbol | TMHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,284,625,470 | ||
Entity Common Stock, Shares Outstanding | 121,291,630 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001562476 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Portions of Part III of this Form 10-K are incorporated by reference from the registrant’s definitive proxy statement for its 2022 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Phoenix, Arizona |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 832,821 | $ 532,843 |
Restricted cash | 3,519 | 1,266 |
Total cash, cash equivalents, and restricted cash | 836,340 | 534,109 |
Real estate inventory: | ||
Owned inventory | 5,444,207 | 5,209,653 |
Consolidated real estate not owned | 55,314 | 122,773 |
Total real estate inventory | 5,499,521 | 5,332,426 |
Land deposits | 229,535 | 125,625 |
Mortgage loans held for sale | 467,534 | 201,177 |
Derivative assets | 2,110 | 5,294 |
Lease right of use assets | 85,863 | 73,222 |
Prepaid expenses and other assets, net | 314,986 | 242,744 |
Other receivables, net | 150,864 | 96,241 |
Investments in unconsolidated entities | 171,406 | 127,955 |
Deferred tax assets, net | 151,240 | 238,078 |
Property and equipment, net | 155,181 | 97,927 |
Goodwill | 663,197 | 663,197 |
Total assets | 8,727,777 | 7,737,995 |
Liabilities | ||
Accounts payable | 253,348 | 215,047 |
Accrued expenses and other liabilities | 525,209 | 430,067 |
Lease liabilities | 96,172 | 83,240 |
Income taxes payable | 0 | 12,841 |
Customer deposits | 485,705 | 311,257 |
Estimated development liabilities | 38,923 | 40,625 |
Senior notes, net | 2,452,322 | 2,452,365 |
Loans payable and other borrowings | 404,386 | 348,741 |
Revolving credit facility borrowings | 31,529 | 0 |
Mortgage warehouse borrowings | 413,887 | 127,289 |
Liabilities attributable to consolidated real estate not owned | 55,314 | 122,773 |
Total liabilities | 4,756,795 | 4,144,245 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
Stockholders’ Equity | ||
Common stock, $0.00001 par value, 400,000,000 shares authorized, 158,662,208 and 155,361,670 shares issued, 121,833,649 and 129,476,914 shares outstanding as of December 31, 2021 and December 31, 2020, respectively | 1 | 1 |
Additional paid-in capital | 2,997,211 | 2,926,773 |
Treasury stock at cost, 36,828,559 and 25,884,756 shares as of December 31, 2021 and December 31, 2020, respectively | (760,863) | (446,856) |
Retained Earnings | 1,688,815 | 1,025,789 |
Accumulated other comprehensive income/(loss) | 689 | (1,166) |
Total stockholders' equity attributable to TMHC | 3,925,853 | 3,504,541 |
Non-controlling interests — joint ventures | 45,129 | 89,209 |
Total stockholders’ equity | 3,970,982 | 3,593,750 |
Total liabilities and stockholders’ equity | $ 8,727,777 | $ 7,737,995 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares, issued (in shares) | 158,662,208 | 155,361,670 |
Common stock, shares, outstanding (in shares) | 121,833,649 | 129,476,914 |
Treasury stock, shares (in shares) | 36,828,559 | 25,884,756 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 7,501,265 | $ 6,129,320 | $ 4,762,059 |
Total cost of revenues | 5,953,384 | 5,085,101 | 3,937,969 |
Gross margin | 1,547,881 | 1,044,219 | 824,090 |
Sales, commissions and other marketing costs | 400,376 | 377,496 | 320,420 |
General and administrative expenses | 267,966 | 194,879 | 169,851 |
Equity in income of unconsolidated entities | (11,130) | (11,176) | (9,509) |
Interest expense/(income), net | 3,792 | (1,606) | (2,673) |
Other expense, net | 23,769 | 23,092 | 7,226 |
Transaction expenses | 0 | 127,170 | 10,697 |
Loss on extinguishment of debt, net | 0 | 10,247 | 5,806 |
Income before income taxes | 863,108 | 324,117 | 322,272 |
Income tax provision | 180,741 | 74,590 | 67,358 |
Net income before allocation to non-controlling interests | 682,367 | 249,527 | 254,914 |
Net income attributable to non-controlling interests — joint ventures | (19,341) | (6,088) | (262) |
Net income available to Taylor Morrison Home Corporation | $ 663,026 | $ 243,439 | $ 254,652 |
Earnings per common share | |||
Basic (in dollars per share) | $ 5.26 | $ 1.90 | $ 2.38 |
Diluted (in dollars per share) | $ 5.18 | $ 1.88 | $ 2.35 |
Weighted average number of shares of common stock: | |||
Basic (in shares) | 126,077 | 127,812 | 106,997 |
Diluted (in shares) | 128,019 | 129,170 | 108,289 |
Home closings | |||
Total revenue | $ 7,171,433 | $ 5,863,652 | $ 4,623,484 |
Total cost of revenues | 5,713,905 | 4,887,757 | 3,836,857 |
Land closings | |||
Total revenue | 99,444 | 65,269 | 27,081 |
Total cost of revenues | 83,853 | 64,432 | 32,871 |
Financial services | |||
Total revenue | 164,615 | 155,827 | 92,815 |
Total cost of revenues | 101,848 | 88,910 | 51,086 |
Amenity and other | |||
Total revenue | 65,773 | 44,572 | 18,679 |
Total cost of revenues | $ 53,778 | $ 44,002 | $ 17,155 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Income before non-controlling interests, net of tax | $ 682,367 | $ 249,527 | $ 254,914 |
Post-retirement benefits adjustments, net of tax | 1,855 | (2,050) | (1,117) |
Comprehensive income | 684,222 | 247,477 | 253,797 |
Comprehensive (income) loss attributable to non-controlling interests | (19,341) | (6,088) | (262) |
Comprehensive income available to Taylor Morrison Home Corporation | $ 664,881 | $ 241,389 | $ 253,535 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest | |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 112,965,856 | 11,554,084 | ||||||
Balance, beginning of period at Dec. 31, 2018 | $ 2,418,735 | $ 1 | $ 2,071,579 | $ (186,087) | $ 527,698 | $ 2,001 | $ 3,543 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 254,914 | 254,652 | 262 | |||||
Other comprehensive income (loss) | (1,117) | (1,117) | ||||||
Exercise of stock options (in shares) | 765,781 | |||||||
Exercise of stock options | 13,238 | 13,238 | ||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 508,996 | ||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (1,585) | (1,585) | |||||
Repurchase of common stock (shares) | (8,389,348) | (8,389,348) | ||||||
Repurchase of common stock | (157,437) | $ (157,437) | ||||||
Common stock surrendered in connection with warrant exercise | 0 | |||||||
Stock compensation expense | 14,763 | 14,763 | ||||||
Contributions from non-controlling interests of consolidated joint ventures | 2,196 | 2,196 | ||||||
Changes in non-controlling interests of consolidated joint ventures | 2,005 | 2,005 | ||||||
Balance, end of period (in shares) at Dec. 31, 2019 | 105,851,285 | 19,943,432 | ||||||
Balance, end of period at Dec. 31, 2019 | 2,545,712 | $ 1 | 2,097,995 | $ (343,524) | 782,350 | 884 | 8,006 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 249,527 | 243,439 | 6,088 | |||||
Other comprehensive income (loss) | (2,050) | (2,050) | ||||||
Exercise of stock options (in shares) | 551,845 | |||||||
Exercise of stock options | 9,579 | 9,579 | ||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 687,818 | ||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (9,228) | (9,228) | |||||
Issuance of equity in connection with business combinations (in shares) | 28,327,290 | |||||||
Issuance of equity in connection with business combinations | $ 787,877 | 787,877 | ||||||
Repurchase of common stock (shares) | (5,941,324) | (5,941,324) | (5,941,324) | |||||
Repurchase of common stock | $ (103,332) | $ (103,332) | ||||||
Common stock surrendered in connection with warrant exercise | 0 | |||||||
Stock compensation expense | 27,023 | 27,023 | ||||||
Stock compensation expense related to WLH acquisition | 5,106 | 5,106 | ||||||
WLH equity award accelerations due to change in control | 8,421 | 8,421 | ||||||
Distributions to non-controlling interests of consolidated joint ventures | (46,938) | (46,938) | ||||||
Changes in non-controlling interests of consolidated joint ventures | 122,053 | 122,053 | ||||||
Balance, end of period (in shares) at Dec. 31, 2020 | 129,476,914 | 25,884,756 | ||||||
Balance, end of period at Dec. 31, 2020 | 3,593,750 | $ 1 | 2,926,773 | $ (446,856) | 1,025,789 | (1,166) | 89,209 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 682,367 | 663,026 | 19,341 | |||||
Other comprehensive income (loss) | 1,855 | 1,855 | ||||||
Exercise of stock options (in shares) | 1,204,283 | |||||||
Exercise of stock options | 23,331 | 23,331 | ||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 392,050 | ||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (5,420) | (5,420) | |||||
Warrant exercises (in shares) | 1,704,205 | |||||||
Warrant exercises | $ 32,584 | 32,584 | ||||||
Repurchase of common stock (shares) | (9,918,104) | (9,918,104) | (9,918,104) | |||||
Repurchase of common stock | $ (281,420) | $ (281,420) | ||||||
Common stock surrendered in connection with warrant exercise (in shares) | (1,025,699) | (1,025,699) | ||||||
Common stock surrendered in connection with warrant exercise | (32,587) | $ (32,587) | ||||||
Stock compensation expense | 19,943 | 19,943 | ||||||
Distributions to non-controlling interests of consolidated joint ventures | (62,734) | (62,734) | ||||||
Changes in non-controlling interests of consolidated joint ventures | (687) | (687) | ||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 121,833,649 | 36,828,559 | ||||||
Balance, end of period at Dec. 31, 2021 | $ 3,970,982 | $ 1 | $ 2,997,211 | $ (760,863) | $ 1,688,815 | $ 689 | $ 45,129 | |
[1] | Dollar amount represents the value of shares withheld for taxes. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income before allocation to non-controlling interests | $ 682,367 | $ 249,527 | $ 254,914 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in income of unconsolidated entities | (11,130) | (11,176) | (9,509) |
Stock compensation expense | 19,943 | 32,129 | 14,763 |
Distributions of earnings from unconsolidated entities | 10,740 | 11,564 | 10,473 |
Loss on extinguishment of debt | 0 | 10,247 | 5,806 |
Depreciation and amortization | 39,980 | 37,336 | 31,424 |
Lease expense | 17,885 | 16,785 | 9,087 |
Debt issuance costs/(premium) amortization | 539 | (1,852) | 1,173 |
Deferred income taxes | 86,838 | 50,582 | 2,655 |
Inventory impairment charges | 0 | 9,611 | 9,384 |
Land held for sale impairments | 4,663 | 4,347 | 9,942 |
Change in Urban Form assets due to sale | 20,440 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Real estate inventory and land deposits | (343,127) | 535,238 | 990 |
Mortgages held for sale, prepaid expenses and other assets | (511,220) | (35,878) | (26,614) |
Customer deposits | 174,448 | 132,446 | 1,896 |
Accounts payable, estimated development liability, and accrued expenses and other liabilities | 197,121 | 62,329 | 73,113 |
Income taxes payable | (12,841) | 20,047 | 3,719 |
Net cash provided by operating activities | 376,646 | 1,123,282 | 393,216 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (21,199) | (37,760) | (30,118) |
Payments for business acquisitions, net of cash acquired | 0 | (279,048) | 0 |
Distributions of capital from unconsolidated entities | 31,915 | 40,062 | 23,584 |
Investments of capital into unconsolidated entities | (74,976) | (36,058) | (12,766) |
Payments to acquire investments and securities | (10,000) | 0 | 0 |
Net cash used in investing activities | (74,260) | (312,804) | (19,300) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase in loans payable and other borrowings | 130,493 | 93,440 | 26,740 |
Repayments of loans payable and other borrowings | (124,786) | (141,103) | (30,383) |
Borrowings on revolving credit facility | 131,529 | 830,000 | 315,000 |
Payments on revolving credit facility | (100,000) | (830,000) | (515,000) |
Borrowings on mortgage warehouse | 3,327,954 | 2,448,980 | 1,145,799 |
Repayment on mortgage warehouse | (3,041,356) | (2,489,867) | (1,152,919) |
Proceeds from issuance of senior notes | 0 | 500,000 | 950,000 |
Repayments on senior notes | 0 | (861,775) | (963,252) |
Payment of deferred financing costs | 0 | (6,351) | (11,603) |
Proceeds from stock option exercises | 23,331 | 9,579 | 13,238 |
Payment of principle portion of finance lease | (1,345) | (1,325) | 0 |
Repurchase of common stock, net | (281,420) | (103,332) | (157,439) |
Payment of taxes related to net share settlement of equity awards | (5,420) | (9,228) | (1,585) |
(Distributions)/Contributions (to) from non-controlling interests of consolidated joint ventures, net | (59,135) | (8,291) | 4,201 |
Payment to acquire non-controlling interests | 0 | (35,668) | 0 |
Net cash used in financing activities | (155) | (604,941) | (377,203) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 302,231 | 205,537 | (3,287) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 534,109 | 328,572 | 331,859 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 836,340 | 534,109 | 328,572 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes paid, net | (146,171) | (3,357) | (20,129) |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Change in loans payable issued to sellers in connection with land purchase contracts | 279,646 | 193,308 | 94,186 |
Change in inventory not owned | (67,459) | (86,393) | 3,926 |
Change in Operating lease right of use assets due to adoption of ASU 2016-02 | 0 | 0 | 27,384 |
Change in Operating lease right of use liabilities due to adoption of ASU 2016-02 | 0 | 0 | 30,331 |
Issuance of common stock in connection with business acquisition | 0 | 797,970 | 0 |
Net non-cash (distributions)/contributions (to)/from unconsolidated entities | (3,599) | 5,002 | 0 |
Non-cash portion of loss on debt extinguishment | 0 | 1,723 | 0 |
Common stock surrendered in connection with warrant exercise | 32,587 | 0 | 0 |
Common stock issued in connection with warrant exercise | $ (32,584) | $ 0 | $ 0 |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BUSINESS | BUSINESSDescription 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 developer of lifestyle communities. 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 55-plus active lifestyle (formerly referred to as active adult) buyers. We are the general contractors for all real estate projects and retain subcontractors for home construction and land development. Our homebuilding segments operate under our Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. We also have an exclusive partnership with Christopher Todd Communities, a growing Phoenix-based developer of innovative, luxury rental communities to operate a “Build-to-Rent” homebuilding business. We serve as a land acquirer, developer, and homebuilder while Christopher Todd Communities provides community design and property management consultation. 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 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. 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 - joint ventures” on the Consolidated Statements of Operations. The assets, liabilities and equity from the percentage of the joint venture not owned by us is presented as “Non-controlling interests - joint ventures” on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, Business Combinations. In connection with our 2020 acquisition of William Lyon Homes, Inc. (“WLH”), we determined we obtained control of a business and inputs, processes and outputs in exchange for cash and equity consideration. All material assets and liabilities were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid, which resulted in goodwill. Refer to Note 16 - Business Combinations for further information regarding the purchase price allocation and related acquisition accounting. 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 consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of acquired assets, valuation of goodwill, valuation of 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. Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage receivables. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, there was no concentration of mortgage receivables with any one customer for the year ended December 31, 2021. No losses have been experienced to date. In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the property sold to the buyer with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination. Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2021, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. Restricted Cash — For the years ended December 31, 2021 and 2020 restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. Leases — We recognize leases in accordance with ASC Topic 842, Leases. Our operating leases primarily consist of office space, construction trailers, model home leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. Operating and finance leases are recorded in Lease right of use asset and Lease liabilities on the Consolidated Balance Sheets. A summary of our leases is shown below: Operating Leases Finance Leases As of December 31, As of December 31, (Dollars in millions) 2021 2020 2019 2021 2020 2019 Weighted average discount rate 5.9 % 6.1 % 5.8 % 7.3 % 7.3 % 5.8 % Weighted average remaining lease term (in years) 4.1 5.2 6.0 86.9 87.9 2.0 Payments on lease liabilities $ 20.7 $ 16.8 $ 9.4 $ 1.3 $ 1.3 $ — Recorded lease expense $ 15.9 $ 14.8 $ 9.1 $ 2.0 $ 2.0 $ — The future minimum lease payments required under our leases as of December 31, 2021 are as follows (dollars in thousands): Years Ending December 31, Operating Lease Finance Lease Total Lease 2022 $ 26,834 $ 1,344 $ 28,178 2023 20,096 1,341 21,437 2024 13,751 1,334 15,085 2025 9,423 1,325 10,748 2026 5,904 1,325 7,229 Thereafter (1) 5,141 264,985 270,126 Total lease payments $ 81,149 $ 271,654 $ 352,803 Less: Interest $ 8,931 $ 247,700 $ 256,631 Present value of lease liabilities $ 72,218 $ 23,954 $ 96,172 (1) Includes a 90 year land lease. 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 sales 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. 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. The life cycle of a typical community generally ranges from two Actual 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. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to cost of sales when the related inventory is charged to cost of sales. 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 usually prepared in order to determine if the carrying value of the assets in that community exceeds the 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 year ended December 31, 2021, we recorded no impairment charges. For the year ended December 31, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. For the year ended December 31, 2019, we recorded $8.9 million of impairment charges, of which $2.0 million and $6.9 million related to our East and Central reporting segments, respectively. Impairment charges 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. 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 subjective 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. For the year ended December 31, 2021 we had no inactive projects. We had one inactive project in our East region with a carrying value of $13.5 million for the year ended December 31, 2020 and no inactive projects for the year ended December 31, 2019. 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. 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 fair value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. 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 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. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable 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 ownership interest in these entities or title to assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings. Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to other expense if the land acquisition process is terminated or no longer determined probable. Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing. Derivative Assets — We are exposed to interest rate risk for interest rate lock commitments (“IRLCs”) and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on 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 of operations in the period in which they occur. Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2021 2020 Prepaid expenses $ 40,114 $ 50,368 Other assets (1) 118,697 68,502 Build-to-Rent assets (2) 93,538 16,137 Urban Form assets (3) 62,637 107,737 Total prepaid expenses and other assets, net $ 314,986 $ 242,744 Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the Revolving Credit Facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the units to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivable, and other deferred costs. Build-to-rent and Urban Form assets consist primarily of land and development costs relating to projects under construction. Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. Allowances at December 31, 2021 and 2020 were immaterial. 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 reduces the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because 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 within our real estate inventory balance in the Consolidated Balance Sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in Investments in unconsolidated entities on the Consolidated Balance Sheets. 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 with the other partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded no impairment charges related to investments in unconsolidated entities for the years ended December 31, 2021, 2020 or 2019. Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $7.5 million, $6.3 million, and $4.8 million, respectively, for the years ended December 31, 2021, 2020, and 2019. Depreciation expense is recorded in General and administrative expenses in the Consolidated Statements of Operations. Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. For the years ended December 31, 2021, 2020 and 2019 there was no impairment of goodwill. For the year ended December 31, 2020, there was an addition to goodwill of $513.8 million related to the WLH acquisition. Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced apart from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations. Our loss reserves for structural defects (maintained by Beneva) are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets. Stock Based Compensation — We have stock options, performance-based restricted stock units and non-performance-based restricted stock units, which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. Performance-based restricted stock units are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. Non-performance-based restricted stock units are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period. Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the IRC (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. We match 100% of employees’ voluntary contributions up to 3% of eligible compensation, and 50% for each dollar contributed between 3% and 5% of eligible compensation. We contributed $11.3 million, $4.7 million, and $10.7 million to the 401(k) Plan for the twelve months ended December 31, 2021, 2020, and 2019, respectively. During the year ended December 31, 2020, the employee match portion of the plan was paused for one quarter as part of our efforts to reduce spending during the early onset of the COVID-19 pandemic. Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity - Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. When factored into our weighted average calculations for purposes of earnings per share, the number of repurchased shares is based on the settlement date. To date, we have not sold any treasury stock. Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers . 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 the proper 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) we satisfy the performance obligation. For our home sales transactions, we have one contract, with one performance obligation, with each customer to build and deliver the home purchased. Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue: • Revenue from closings of residential real estate is recognized when closings have occurred, 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 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, club houses, 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 included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets which include multi-use properties as part of our Urban Form 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. All of the loans TMHF originates are sold to third party investors within a short period of time, on a 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, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. Advertising Costs — We expense advertising costs as incurred. For the years ended December 31, 2021, 2020, and 2019, advertising costs were $30.4 million, $31.9 million, and $32.0 million, respectively. Such costs are included in General and administrative expenses on the Consolidated Statements of Operations. Recently Issued Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients for applying U.S. GAAP to contracts affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and entities may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We adopted ASU 2019-12 as of January 1, 2021, but this pronouncement did not have a material impact on our consolidated financial statements and disclosures. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock 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: Year Ended December 31, (Dollars in thousands except per share data) 2021 2020 2019 Numerator: Net income available to TMHC— basic $ 663,026 $ 243,439 $ 254,652 Denominator: Weighted average shares — basic 126,077 127,812 106,997 Restricted stock units 920 865 983 Stock options 771 319 309 Warrants 251 174 — Weighted average shares — diluted 128,019 129,170 108,289 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 5.26 $ 1.90 $ 2.38 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 5.18 $ 1.88 $ 2.35 The above calculations of weighted average shares exclude 1,030,282, 2,335,006, and 2,394,703 outstanding anti-dilutive stock options and unvested performance and non-performance restricted stock units for the years ended December 31, 2021, 2020, and 2019, respectively. |
REAL ESTATE INVENTORY AND LAND
REAL ESTATE INVENTORY AND LAND DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE INVENTORY AND LAND DEPOSITS | REAL ESTATE INVENTORY AND LAND DEPOSITS Inventory consists of the following: As of December 31, (Dollars in thousands) 2021 2020 Real estate developed or under development $ 3,895,681 $ 3,862,785 Real estate held for development or held for sale (1) 70,305 110,954 Operating communities (2) 1,309,551 1,072,134 Capitalized interest 168,670 163,780 Total owned inventory 5,444,207 5,209,653 Consolidated real estate not owned 55,314 122,773 Total real estate inventory $ 5,499,521 $ 5,332,426 (1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active inventory. The development status of our land inventory is as follows: As of December 31, 2021 2020 (Dollars in thousands) Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw 4,017 $ 178,952 7,032 $ 239,554 Partially developed 24,636 1,568,967 19,495 1,215,419 Finished 19,360 2,119,128 21,396 2,388,177 Long-term strategic assets — — 158 13,462 Total homebuilding owned lots 48,013 3,867,047 48,081 3,856,612 Other assets (1) 5,298 98,939 5,298 117,127 Total owned lots 53,311 $ 3,965,986 53,379 $ 3,973,739 (1) The decrease in book value of land and development relates to the sale of parcels of commercial assets which are excluded from the owned lots presented in the table. Land Deposits — We provide deposits related to land option contracts and land purchase contracts, which are capitalized when paid and classified as Land deposits. As of December 31, 2021 and 2020, we had the right to purchase approximately 8,360 and 7,449 lots under option purchase contracts, respectively, for an aggregate purchase price of $507.2 million and $485.4 million, respectively. We do not have title to these properties, and the creditors generally have no recourse against us. As of December 31, 2021 and 2020, our exposure to loss related to option contracts with third parties and unconsolidated entities consisted of non-refundable deposits totaling $97.6 million and $65.3 million, respectively. As of December 31, 2021 and 2020, we had the right to purchase 5,731 and 2,426 lots under land banking arrangements for an aggregate purchase price of $749.8 million and $275.0 million, respectively. We are not legally obligated to purchase the balance of the lots. As of December 31, 2021 and 2020, our exposure to loss related to non-refundable deposits on land banking arrangements totaled $117.7 million and $60.3 million, respectively. Capitalized Interest — Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Interest capitalized — beginning of period $ 163,780 $ 115,593 $ 96,031 Interest incurred 154,623 164,085 113,301 Interest amortized to cost of home closings (149,733) (115,898) (93,739) Interest capitalized — end of period $ 168,670 $ 163,780 $ 115,593 |
INVESTMENTS IN CONSOLIDATED AND
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 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 and/or mortgage lending activities. These real estate development joint ventures primary activity 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. Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): As of December 31, (Dollars in thousands) 2021 2020 Assets: Real estate inventory $ 414,687 $ 342,451 Other assets 118,990 133,903 Total assets $ 533,677 $ 476,354 Liabilities and owners’ equity: Debt $ 167,842 $ 183,911 Other liabilities 16,245 21,215 Total liabilities $ 184,087 $ 205,126 Owners’ equity: TMHC $ 171,406 $ 127,955 Others 178,184 143,273 Total owners’ equity $ 349,590 $ 271,228 Total liabilities and owners’ equity $ 533,677 $ 476,354 Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Revenues $ 130,640 $ 161,888 $ 277,263 Costs and expenses (97,596) (129,764) (242,044) Income of unconsolidated entities $ 33,044 $ 32,124 $ 35,219 TMHC's share in income of unconsolidated entities $ 11,130 $ 11,176 $ 9,509 Distributions from unconsolidated entities $ 42,655 $ 51,626 $ 34,057 Consolidated Entities — We have several joint ventures for the purpose of real estate development and homebuilding activities, which we have determined to be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities of the VIEs, or joint ventures. For this specific subset 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 VIEs and the entities are consolidated. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: As of December 31, (Dollars in thousands) 2021 2020 Real estate development costs to complete $ 49,833 $ 38,935 Compensation and employee benefits 166,272 113,896 Self-insurance and warranty reserves 141,839 118,116 Interest payable 48,551 45,917 Property and sales taxes payable 29,384 28,523 Other accruals 89,330 84,680 Total accrued expenses and other liabilities $ 525,209 $ 430,067 Self-Insurance and Warranty Reserves — We accrue for the expected costs associated with our limited warranty and self-insured amounts under our various insurance policies within Beneva, a wholly owned subsidiary. A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Reserve — beginning of period $ 118,116 $ 120,048 $ 93,790 Net additions to reserves due to WLH acquisition — 9,984 — Additions to reserves 77,827 62,722 44,093 Costs and claims incurred (67,704) (82,137) (67,554) Change in estimates to pre-existing reserves (1) 13,600 7,499 49,719 Reserve — end of period $ 141,839 $ 118,116 $ 120,048 (1) Changes in estimates to pre-existing reserves for the year ended December 31, 2019 included a $43.1 million adjustment for a construction defect reserve related to warranty remediation isolated to one specific community in the Central region. The reserve estimate is based on assumptions, including but not limited to the number of homes affected, the costs associated with each repair, and the effectiveness of the repairs. Due to the degree of judgement required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those recorded and such differences could be material, resulting in a change in future estimated reserves. |
ESTIMATED DEVELOPMENT LIABILITI
ESTIMATED DEVELOPMENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract] | |
ESTIMATED DEVELOPMENT LIABILITIES | ESTIMATED DEVELOPMENT LIABILITIESEstimated development liabilities consists primarily of estimated future utilities improvements in Poinciana, Florida and Rio Rico, Arizona for home sites previously sold, in most cases prior to 1980. The estimated development liability is reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management’s estimate of potential completion costs. At December 31, 2021 and 2020, these liabilities are based on third-party engineer cost estimate reports which reflect the estimated completion costs. Future increases or decreases of costs for construction, material and labor, as well as other land development and utilities infrastructure costs, may have a significant effect on the estimated development liability. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Total debt consists of the following: As of December 31, 2021 2020 (Dollars in thousands) Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.875% Senior Notes due 2023 350,000 (733) 349,267 350,000 (1,300) 348,700 5.625% Senior Notes due 2024 350,000 (1,166) 348,834 350,000 (1,705) 348,295 5.875% Senior Notes due 2027 500,000 (4,243) 495,757 500,000 (5,026) 494,974 6.625% Senior Notes due 2027 (1) 300,000 17,718 317,718 300,000 20,915 320,915 5.750% Senior Notes due 2028 450,000 (3,814) 446,186 450,000 (4,445) 445,555 5.125% Senior Notes due 2030 500,000 (5,440) 494,560 500,000 (6,074) 493,926 Senior Notes subtotal 2,450,000 2,322 2,452,322 2,450,000 2,365 2,452,365 Loans payable and other borrowings 404,386 — 404,386 348,741 — 348,741 $800 Million Revolving Credit Facility (2) — — — — — — $100 Million Revolving Credit Facility (2)(3) 31,529 — 31,529 — — — Mortgage warehouse borrowings 413,887 — 413,887 127,289 — 127,289 Total debt $ 3,299,802 $ 2,322 $ 3,302,124 $ 2,926,030 $ 2,365 $ 2,928,395 (1) Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting estimates. (2) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Consolidated Balance Sheets. (3) The $100 Million Revolving Credit Facility was entered into during the third quarter of 2021 and relates to our Build-to-Rent operations. Senior Notes All of our senior notes (the “Senior Notes”) described below and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indentures governing our senior notes (except for the remaining 2027 6.625% WLH Notes, as described below) contain covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions and contain customary events of default. None of the indentures for the senior notes have financial maintenance covenants. As of December 31, 2021, we were in compliance with all of the covenants under the Senior Notes. 5.875% Senior Notes due 2023 On April 16, 2015, Taylor Morrison Communities, Inc (“TM Communities”) issued $350.0 million aggregate principal amount of 5.875% Senior Notes due 2023 (the “2023 5.875% Senior Notes”), which mature on April 15, 2023. The 2023 5.875% Senior Notes are guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the “Guarantors”). We are required to offer to repurchase the 2023 5.875% Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events where there is a credit rating downgrade that occurs in connection with the change of control. Prior to January 15, 2023, the 2023 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through January 15, 2023 (plus accrued and unpaid interest). Beginning January 15, 2023, the 2023 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.625% Senior Notes due 2024 On March 5, 2014, TM Communities issued $350.0 million aggregate principal amount of 5.625% Senior Notes due 2024 (the “2024 Senior Notes”), which mature on March 1, 2024. The 2024 Senior Notes are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2024 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to December 1, 2023, the 2024 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through December 1, 2023 (plus accrued and unpaid interest). Beginning on December 1, 2023, the 2024 Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.875% Senior Notes due 2027 On June 5, 2019, TM Communities issued $500.0 million aggregate principal amount of 5.875% Senior Notes due 2027 (the “2027 5.875% Senior Notes”), which mature on June 15, 2027. The 2027 5.875% Senior Notes are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 5.875% Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to March 15, 2027, the 2027 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through March 15, 2027 (plus accrued and unpaid interest). Beginning on March 15, 2027, the 2027 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest). 6.625% Senior Notes due 2027 Following our exchange offer in the first quarter of 2020, whereby TM Communities offered to exchange any and all outstanding senior notes issued by WLH, we had $290.4 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by TM Communities (the “2027 6.625% TM Communities Notes”) and $9.6 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by WLH (the “2027 6.625% WLH Notes” and together with the 2027 6.625% TM Communities Notes, the “2027 6.625% Senior Notes”) (the Exchange Offer). The 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 6.625% TM Communities Notes are similar to those contained in the indentures governing our other Senior Notes. In connection with the consummation of the exchange offer, WLH entered into a supplemental indenture to eliminate substantially all of the covenants in the indenture governing the 2027 6.625% WLH Notes, including the requirements to offer to purchase such notes upon a change of control, and to eliminate certain other restrictive provisions and events that constitute an “Event of Default” in such indenture. The 2027 6.625% Senior Notes mature on July 15, 2027. Prior to July 15, 2022, the 2027 6.625% Senior Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest, if any, to, but not including, the redemption date. On or after July 15, 2022, the 2027 6.625% Senior Notes are redeemable at a price equal to 103.313% of principal (plus accrued and unpaid interest). On or after July 15, 2023, the 2027 6.625% Senior Notes are redeemable at a price equal to 102.208% of principal (plus accrued and unpaid interest). On or after July 31, 2024, the 2027 6.625% Senior Notes are redeemable at a price equal to 101.104% of principal (plus accrued and unpaid interest). On or after July 15, 2025, the 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest). In addition, at any time prior to July 15, 2022, we may at the option on one or more occasions, redeem the 2027 6.625% Senior Notes (including any additional notes that may be issues in the future under the 2027 6.625% Senior Notes Indenture) in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2027 6.625% Senior Notes at a redemption price (expressed as a percentage of principal amount) of 106.625%, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings. 5.75% Senior Notes due 2028 On August 1, 2019, TM Communities issued $450.0 million aggregate principal amount of 5.75% Senior Notes due 2028 (the “2028 Senior Notes”), which mature on January 15, 2028. The 2028 Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2028 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to October 15, 2027, the 2028 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through October 15, 2027 (plus accrued and unpaid interest). Beginning on October 15, 2027, the 2028 Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.125% Senior Notes due 2030 and Redemption of the 2023 6.00% Senior Notes and Redemption of the 2025 Senior Notes In July, 2020, we partially redeemed $266.9 million of our 6.00% Senior Notes due 2023 (the “2023 6.00% Senior Notes”) and $333.1 million of our 5.875% Senior Notes due 2025 (the “2025 Senior Notes”) using the net proceeds from the issuance of $500.0 million aggregate principal amount of 5.125% Senior Notes due 2030 (the “2030 Senior Notes”). In September 2020, we redeemed the remaining $83.1 million and $103.8 million of 2023 6.00% Senior Notes and 2025 Senior Notes, respectively, using cash on hand. For the 2023 6.00% Senior Notes, the redemption price was equal to 100% of the principal amount, plus a make-whole premium of 0.11% plus 50 basis points, plus accrued and unpaid interest to, but excluding the redemption date. For the 2025 Senior Notes, the redemption price was equal to 102.938% of the principal amount, plus accrued and unpaid interest to, but excluding the redemption date. As a result of the early redemption of the 2023 and 2025 Senior Notes, we recorded a total net loss on extinguishment of debt of approximately $10.2 million in Loss on extinguishment of debt, net in the Consolidated Statement of Operations for the year ended December 31, 2020. The 2030 Senior Notes mature on August 1, 2030. The Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2030 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to February 1, 2030, the 2030 Senior Notes are redeemable at a price equal to 100.0% plus a “make-whole” premium for payments through February 1, 2030 (plus accrued and unpaid interest). Beginning on February 1, 2030, the 2030 Senior Notes are redeemable at par (plus accrued and unpaid interest). $800 Million Revolving Credit Facility Our $800 Million Revolving Credit Facility matures on February 6, 2024 and is guaranteed by the Guarantors. As of December 31, 2021, our $800 Million Revolving Credit Facility included $1.1 million of unamortized debt issuance costs and $58.7 million of utilized letters of credit, resulting in $741.3 million availability. As of December 31, 2020, our $800 Million Revolving Credit Facility included $1.6 million of unamortized debt issuance costs and $64.3 million of utilized letters of credit, resulting in $735.7 million of availability. Unamortized debt issuance costs are included in Prepaid expenses and other assets, net on the Consolidated Balance Sheets. The $800 Million 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 of at least $2.4 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $800 Million Revolving Credit Facility are outstanding during the last day of such fiscal quarter or on more than five five The $800 Million Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, 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 $800 Million 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 December 31, 2021, we were in compliance with all of the covenants under the $800 Million Revolving Credit Facility. $100 Million Revolving Credit Facility This facility is specific to our Build-to-Rent operations. On September 17, 2021, we entered into a $100 Million Revolving Credit Facility, which matures on September 17, 2024 and is guaranteed by the Guarantors (the $100 Million Revolving Credit Agreement together with the $800 Million Revolving Credit Agreement, the "Revolving Credit Facilities"). As of December 31, 2021, we had $0.7 million of unamortized debt issuance costs relating to our $100 Million Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the Consolidated Balance Sheets. As of December 31, 2021 we had no utilized letters of credit, resulting in $68.5 million of availability under the $100 Million Revolving Credit Facility. The $100 Million 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 of at least $2.4 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $100 Million 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 $100 Million Revolving Credit Facility in an aggregate amount greater than $$40.0 million or unreimbursed letters of credit issued under the $100 Million Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than five fiscal quarter, the $100 Million 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 to the borrower, 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 $100 Million Revolving Credit Facility includes the same restrictive covenants as are included in the $800 Million Revolving Credit Facility, described above. As of December 31, 2021, we were in compliance with all of the covenants under the $100 Million Revolving Credit Facility Mortgage Warehouse Borrowings The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2021 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 12 $ 10,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 86,409 150,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 116,601 250,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 105,065 150,000 LIBOR + 1.65% November 20, 2022 Mortgage Loans Warehouse E 105,800 200,000 LIBOR + 1.50% On Demand Mortgage Loans Total $ 413,887 $ 760,000 December 31, 2020 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 40,958 $ 55,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 19,457 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,148 75,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 23,726 80,000 LIBOR + 1.65% November 15, 2021 Mortgage Loans Total $ 127,289 $ 295,000 (1) Subject to certain interest rate floors. (2) The mortgage warehouse borrowings outstanding as of December 31, 2021 and 2020, are collateralized by $467.5 million and $201.2 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $3.5 million and $1.3 million, respectively, of cash, which is included in restricted cash on our Consolidated Balance Sheet. Loans Payable and Other Borrowings Loans payable and other borrowings as of December 31, 2021 and 2020 consist of project-level debt due to various land sellers and financial institutions for specific 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. These borrowings bear interest at rates that ranged from 0% to 8% at each of December 31, 2021 and 2020. Future Minimum Principal Payments on Total Debt Principal maturities of total debt for the year ended December 31, 2021 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2022 $ 651,872 2023 471,053 2024 380,440 2025 19,151 2026 20,795 Thereafter 1,756,491 Total debt $ 3,299,802 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES We have adopted ASC Topic 820, Fair Value Measurements, for valuation of financial instruments. ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 — Fair value is based on quoted prices 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. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, 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 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 December 31, 2021, when compared to December 31, 2020. The carrying value and fair value of our financial instruments are as follows: As of December 31, 2021 As of December 31, 2020 (Dollars in thousands) Level in Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 467,534 $ 467,534 $ 201,177 $ 201,177 IRLCs 3 2,110 2,110 5,294 5,294 MBSs 2 (449) (449) (1,847) (1,847) Mortgage warehouse borrowings 2 413,887 413,887 127,289 127,289 Loans payable and other borrowings 2 404,386 404,386 348,741 348,741 5.875% Senior Notes due 2023 (1) 2 349,267 365,890 348,700 371,000 5.625% Senior Notes due 2024 (1) 2 348,834 372,750 348,295 375,830 5.875% Senior Notes due 2027 (1) 2 495,757 560,000 494,974 566,650 6.625% Senior Notes due 2027 (1) 2 317,718 315,750 320,915 324,240 5.750% Senior Notes due 2028 (1) 2 446,186 502,875 445,555 509,625 5.125% Senior Notes due 2030 (1) 2 494,560 550,000 493,926 560,000 $800 Million Revolving Credit Facility 2 — — — — $100 Million Revolving Credit Facility 2 31,529 31,529 — — Equity Security Investment 1 6,400 6,400 — — (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the 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 our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) Level in As of Description: Inventories 3 22,556 We did not have any inventories impaired for the year ended December 31, 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Current: Federal $ 73,087 $ 11,621 $ 54,372 State 23,493 11,733 9,839 Current tax provision $ 96,580 $ 23,354 $ 64,211 Deferred: Federal $ 75,044 $ 45,594 $ (1,811) State 9,117 5,642 4,958 Deferred tax provision $ 84,161 $ 51,236 $ 3,147 Total income tax provision $ 180,741 $ 74,590 $ 67,358 A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows: Year Ended December 31, 2021 2020 2019 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 3.8 4.6 3.9 Non-controlling interest (0.6) — — Uncertain tax positions (0.2) (0.1) (0.2) Deferred tax adjustments — — 0.2 Energy tax credits (1.4) (2.9) (4.6) Disallowed compensation expense 0.2 0.9 0.3 Disallowed M&A expenses — 2.1 — Impact of CARES Act (1.3) (2.2) — Other (0.6) (0.4) 0.3 Effective Rate 20.9 % 23.0 % 20.9 % Our effective tax rate was 20.9% and 23.0% for the years ended December 31, 2021 and December 31, 2020, respectively. Our effective rate for both years was affected by a number of factors including state income taxes, energy tax credits relating to homebuilding activities, and tax benefits from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which contains a number of economic relief provisions in response to the COVID-19 pandemic. The effective tax rate for the year ended December 31, 2021 was favorably impacted by income attributable to minority interest. The effective tax rate for the year ended December 31, 2020 was unfavorably impacted by certain expenses related to the acquisition of WLH which were not deductible for tax purposes. We have certain tax attributes available to offset the impact of future income taxes. The components of net deferred tax assets and liabilities at December 31, 2021 and 2020, consisted of timing differences related to real estate inventory impairments, expense accruals and reserves, provisions for liabilities, and net operating loss carryforwards. A summary of these components for the years ending December 31, 2021 and 2020 is as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Real estate inventory $ 18,300 $ 91,499 Accruals and reserves 56,244 47,536 Other 11,739 22,914 Net operating losses (1) 76,119 87,940 Capital loss carryforward 36,054 36,054 Total deferred tax assets $ 198,456 $ 285,943 Deferred tax liabilities: Real estate inventory, intangibles, other (11,162) (11,811) Valuation allowance (36,054) (36,054) Total net deferred tax assets $ 151,240 $ 238,078 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of WLH. All three acquisitions were deemed to be a change in control as defined by Section 382. On both December 31, 2021 and 2020, we had a valuation allowance of $36.1 million against net deferred tax assets. The valuation allowance is the result of the 2018 corporate reorganization which triggered a capital loss carryforward which is not expected to be realized. We have approximately $228.0 million in available gross federal NOL carryforwards. Federal NOL carryforwards generated prior to January 1, 2018 may be used to offset future taxable income for a period of 20 years and begin to expire in 2029. State NOL carryforwards may be used to offset future taxable income for a period of 20 years and begin to expire in 2026. On an ongoing basis, we will continue to review all available evidence to determine if we expect to realize our deferred tax assets and federal and state NOL carryovers or if a valuation allowance is necessary. We account for uncertain tax positions in accordance with ASC 740. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not based on the technical merits of the position that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ending December 31, (Dollars in thousands) 2021 2020 2019 Beginning of the period $ 5,762 $ 6,158 $ 7,391 Increases from current year acquisitions — — — Increases of prior year items — — 15 Settlement with tax authorities — — (977) Decreased for tax positions of prior years (4,140) — (76) Decreased due to statute of limitations (1,622) (396) (195) End of the period $ — $ 5,762 $ 6,158 The decrease in unrecognized tax benefits for the year ending December 31, 2021 was primarily the result of management’s determination regarding the realizability of certain carryforward loss positions and the lapse in the statute of limitations on other positions. As of December 31, 2021 there are no unrecognized tax benefits. We recognized potential penalties and interest expense on our uncertain tax positions of $0.0 million, $0.5 million, and $0.6 million for the years ended December 31, 2021, 2020, and 2019 respectively, which are included in income tax provision in the Consolidated Statements of Operations and income taxes payable in the Consolidated Balance Sheets. We are currently under examination by the IRS for tax years 2017 and 2018 and anticipate finalizing this examination within the next twelve months. The outcome of this examination is not currently determinable. The statute of limitations for our major taxing jurisdictions remains open for examination for tax years 2017 through 2021. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Capital Stock The Company’s authorized capital stock consists of 400,000,000 shares of common stock, par value $0.00001 per share (the “Common Stock”), and 50,000,000 shares of preferred stock, par value $0.00001 per share. Warrants In connection with our acquisition of WLH, we issued 1,704,205 warrants to purchase shares of TMHC Common Stock at an exercise price of $19.12 per share. These warrants were exercised on April 30, 2021 through settlement of approximately 1.0 million surrendered TMHC shares. The exercise was recognized in accordance with ASC 718, Compensation – Stock Compensation , and has been reflected in Additional paid-in capital and Treasury stock on our Consolidated Statements of Stockholders’ Equity. As of December 31, 2021, there were no outstanding warrants to purchase shares of our common stock. Stock Repurchase Program On December 13, 2021, we announced that our Board of Directors authorized a $250.0 million renewal of our stock repurchase program, which expires on June 30, 2024. Repurchases of our Common Stock under the program will be effected, if at all, through open market purchases, privately negotiated transactions or other transactions. The following table summarizes share repurchase activity for the program for the years ended December 31, 2021 and 2020: Year Ended December 31, (Dollars in thousands) 2021 2020 Amount available for repurchase — beginning of period (1) $ 86,831 $ — Additional amount authorized for repurchase (2) 500,000 200,000 Unused amount as part of authorization renewal 3) (74,998) — Amount repurchased at cost, 9,918,104 and 5,941,324 shares as of December 31, 2021 and December 31, 2020, respectively (281,420) (103,332) Amount available for repurchase — end of period $ 230,413 $ 96,668 (1) Represents the amount available for repurchase as of January 1 for the years provided, adjusted for previously expired share repurchase authorizations. (2) Amount includes a $250.0 million renewal announced on each June 1, 2021 and December 13, 2021. (3) Amount represents the unused value of the repurchase authorization from June 1, 2021, which was cancelled when the December 13, 2021 authorization was announced. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 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 2017. The Plan provides for the grant of stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), and other equity-based awards deliverable in shares of our Common Stock. As of December 31, 2021, we had an aggregate of 5,404,025 shares of Common Stock available for future grants under the Plan. The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statements of Operations: (Dollars in thousands) Year Ended December 31, 2021 2020 2019 Restricted stock units (1) (2) $ 15,856 $ 19,938 $ 10,989 Stock options 4,087 7,085 3,774 Total stock compensation $ 19,943 $ 27,023 $ 14,763 (1) Includes compensation expense related to time-based RSUs and PRSUs. (2) Stock-based compensation expense in 2021 and 2020 includes expense recognized for equity awards associated with the acquisition of WLH, which were converted from WLH to TMHC equity awards. An additional $5.1 million of stock based compensation expense relating to the accelerations of awards from the WLH acquisition were charged to Transaction expenses on the Consolidated Statement of Operations for the year ended December 31, 2020. At December 31, 2021, 2020, and 2019, the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $26.5 million, $23.8 million, and $20.8 million, respectively. Stock Options — Options granted to employees generally vest and become exercisable ratably on the first, second, third, and fourth anniversary of the date of grant. Options granted to members of the Board of Directors vest and become exercisable ratably on the first, second and third anniversary of the date of grant. Vesting of the options is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates, and options expire within ten years from the date of grant. The following table summarizes stock option activity for the Plan for each year presented: Year Ended December 31, 2021 2020 2019 Number of Weighted Number of Options (1) Weighted Number of Weighted Outstanding, beginning 3,772,775 $ 19.73 3,339,244 $ 18.98 3,239,995 $ 18.87 Granted (2) 712,910 28.64 1,139,583 21.95 997,924 18.15 Exercised (1,204,283) 19.37 (551,845) 17.91 (765,781) 17.29 Cancelled/forfeited (2) (115,790) 21.53 (154,207) 20.93 (132,894) 19.86 Balance, ending 3,165,612 $ 22.02 3,772,775 $ 19.73 3,339,244 $ 18.98 Options exercisable, at December 31, 1,407,618 $ 19.12 1,934,328 $ 18.73 1,400,974 $ 19.09 (1) The year ended December 31, 2020 has been adjusted to include 309,277 options granted, 94,861 options exercised, and 214,416 options exercisable from the acquisition of WLH which were previously excluded from the table. (2) Excludes the number of options granted and canceled in the same period. As of December 31, (Dollars in thousands) 2021 2020 2019 Unamortized value of unvested stock options (net of estimated forfeitures) $ 7,515 $ 6,847 $ 6,759 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options outstanding 7.0 6.6 6.9 Weighted-average remaining contractual life (in years) for options exercisable 5.3 4.9 5.1 The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities and expected term are based on the historical information of comparable publicly traded homebuilders. Due to the limited number and homogeneous nature of option holders, the expected term was evaluated using a single group. The risk-free rate is based on the U.S. Treasury yield curve for periods equivalent to the expected term of the options on the grant date. The fair value of stock option awards is recognized evenly over the vesting period of the options. The following table summarizes the weighted-average assumptions and fair value used for stock options grants: Year Ended December 31, 2021 2020 2019 Expected dividend yield —% —% —% Expected volatility 24.65% 24.19% 19.33% Risk-free interest rate 0.75% 1.19% 2.49% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $7.45 $5.89 $4.69 The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2021, 2020 and 2019 (excluding options relating to the acquisition of WLH) As of December 31, (Dollars in thousands) 2021 2020 2019 Aggregate intrinsic value of options outstanding $ 38,190 $ 21,399 $ 10,935 Aggregate intrinsic value of options exercisable $ 18,897 $ 11,903 $ 4,283 The aggregate intrinsic value is based on the market price of our Common Stock on December 31, 2021, the last trading day in December 2021, which was $34.96, less the applicable exercise price of the underlying option. This aggregate intrinsic value represents the amount that would have been realized if all the option holders had exercised their options on December 31, 2021. Performance-Based Restricted Stock Units – We issued PRSUs to certain employees of the Company. These awards will vest in full based on the achievement of certain performance goals over a three-year performance period, subject to the employee’s continued employment through the last date of the performance period and will be settled in shares of our Common Stock. The number of shares that may be issued in settlement of the PRSUs to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The following table summarizes the activity of our PRSUs: Year Ended December 31, 2021 2020 2019 Balance, beginning 930,633 998,639 1,155,723 Granted 289,308 295,405 416,874 Vested (275,286) (319,732) (511,984) Forfeited (18,462) (43,679) (61,974) Balance, ending 926,193 930,633 998,639 Year Ended December 31, (Dollars in thousands): 2021 2020 2019 PRSU expense recognized $ 8,125 $ 5,692 $ 5,866 Unamortized value of PRSUs $ 8,419 $ 7,848 $ 7,912 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 Non-Performance-Based Restricted Stock Units — Our RSUs consist of shares of our Common Stock that have been awarded to our employees and members of our Board of Directors. Vesting of RSUs is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates. Time-based RSUs granted to employees generally vest ratably over a three four The following tables summarize the activity of our RSUs: Year Ended December 31, 2021 2020 2019 (Dollars in thousands except per share data): Number of Weighted Number of RSUs (1) Weighted Number of Weighted Outstanding, beginning 881,272 $ 21.33 709,754 $ 18.11 769,641 $ 16.73 Granted 370,762 28.62 1,228,451 23.07 299,481 18.42 Vested (390,358) 21.28 (1,004,450) 16.83 (320,701) 15.25 Forfeited (57,211) 23.68 (52,483) 19.65 (38,667) 16.91 Balance, ending (1) 804,465 $ 24.73 881,272 $ 21.33 709,754 $ 18.11 (1) The year ended December 31, 2020 has been adjusted to include 791,189 RSUs granted and 684,078 RSU's vested from the acquisition of WLH which were previously excluded from the table. Year Ended December 31, (Dollars in thousands): 2021 2020 2019 RSU expense recognized (1) $ 7,731 $ 14,246 $ 5,123 Unamortized value of RSUs (1) $ 10,561 $ 9,116 $ 6,176 Weighted-average period expense is expected to be recognized (in years) (1) 1.7 1.8 1.7 (1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized $7.1 million of RSU expense and approximately $1.0 million remains unamortized and will be expensed through the first quarter of 2022. |
OPERATING AND REPORTING SEGMENT
OPERATING AND REPORTING SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
OPERATING AND REPORTING SEGMENTS | 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. Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services 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: Year Ended December 31, 2021 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 2,423,948 $ 1,741,689 $ 3,126,621 $ 164,615 $ 44,392 $ 7,501,265 Gross margin $ 522,721 $ 336,896 $ 614,130 $ 62,767 $ 11,367 $ 1,547,881 Selling, general and administrative expense (184,744) (133,991) (187,515) — (162,092) (668,342) Equity in income/(loss) of unconsolidated entities — 306 2,190 8,644 (10) 11,130 Interest and other expense, net (3) (923) (3,103) (7,228) — (16,307) (27,561) Income/(loss) before income taxes $ 337,054 $ 200,108 $ 421,577 $ 71,411 $ (167,042) $ 863,108 (1) All operating expenses, excluding Transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Year Ended December 31, 2020 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 1,919,247 $ 1,633,428 $ 2,396,101 $ 155,827 $ 24,717 $ 6,129,320 Gross margin $ 319,361 $ 306,158 $ 352,648 $ 66,918 $ (866) $ 1,044,219 Selling, general and administrative expense (160,222) (132,796) (165,682) — (113,675) (572,375) Equity in income of unconsolidated entities — 23 683 10,470 — 11,176 Interest and other expense, net (3) (574) (4,471) (37,600) (8,971) (97,040) (148,656) Loss on extinguishment of debt — — — — (10,247) (10,247) Income/(loss) before income taxes $ 158,565 $ 168,914 $ 150,049 $ 68,417 $ (221,828) $ 324,117 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services (1) Corporate Total Total revenues $ 1,950,742 $ 1,334,389 $ 1,384,113 $ 92,815 $ — $ 4,762,059 Gross margin $ 307,893 $ 187,957 $ 286,511 $ 41,729 $ — $ 824,090 Selling, general and administrative expense (168,928) (121,962) (94,609) — (104,772) (490,271) Equity in (loss)/income of unconsolidated entities — (215) 3,562 6,021 141 9,509 Interest and other expense, net (2) (5,545) (1,024) (3,273) — (5,408) (15,250) Loss on extinguishment of debt — — — — (5,806) (5,806) Income/(loss) before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845) $ 322,272 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. As of December 31, 2021 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,781,948 $ 1,282,024 $ 2,665,084 $ — $ — $ 5,729,056 Investments in unconsolidated entities — 87,600 79,531 4,275 — 171,406 Other assets 196,126 221,906 588,520 559,233 1,261,530 2,827,315 Total assets $ 1,978,074 $ 1,591,530 $ 3,333,135 $ 563,508 $ 1,261,530 $ 8,727,777 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2020 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,712,852 $ 1,176,604 $ 2,568,595 $ — $ — $ 5,458,051 Investments in unconsolidated entities — 58,052 65,395 4,498 10 127,955 Other assets 170,382 192,981 578,231 284,265 926,130 2,151,989 Total assets $ 1,883,234 $ 1,427,637 $ 3,212,221 $ 288,763 $ 926,140 $ 7,737,995 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate Total Real estate inventory and land deposits $ 1,841,904 $ 965,039 $ 1,219,411 $ — $ — $ 4,026,354 Investments in unconsolidated entities — 37,506 86,996 4,015 242 128,759 Other assets 165,777 121,724 60,060 257,760 485,252 1,090,573 Total assets $ 2,007,681 $ 1,124,269 $ 1,366,467 $ 261,775 $ 485,494 $ 5,245,686 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 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 $1.2 billion and $1.0 billion as of December 31, 2021 and 2020, respectively. 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 December 31, 2021 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 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. At December 31, 2021 and 2020, the aggregate purchase price of these contracts was $1.3 billion and $0.8 billion respectively. 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 December 31, 2021 and 2020, our legal accruals were $21.7 million and $23.5 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 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), 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. The class action complaint seeks an injunction to prohibit future collection of club membership fees. On November 2, 2021, the court determined that the club membership fees were improper and that plaintiffs were entitled to $35.0 million in fee reimbursements. We appealed the court’s ruling to the Second District Court of Appeal on November 29, 2021, and as of December 31, 2021, our appeal remains pending. Plaintiffs have agreed to continue to pay club membership fees pending the outcome of the appeal. We believe, based on our assessment and the opinion of external legal counsel, that the court’s legal interpretation constitutes legal error and the court 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. While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, in evaluating the potential outcomes, we believe the more likely outcome is that we win the appeal. This belief is based on our review of the legal merit of the judgement, 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 and will have zero liability. |
MORTGAGE HEDGING ACTIVITIES
MORTGAGE HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MORTGAGE HEDGING ACTIVITIES | MORTGAGE HEDGING ACTIVITIES We enter into IRLCs when originating residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. These IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value with changes in fair value recognized in Financial Services revenue/expenses on the Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2021 December 31, 2020 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 2,110 $ 158,299 $ 5,294 $ 260,954 MBSs (449) 407,000 (1,847) 376,000 Total, net $ 1,661 $ 3,447 (1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved. Total commitments to originate loans approximated $173.7 million and $290.3 million at December 31, 2021 and 2020, respectively. This amount represents the commitments to originate loans for both best efforts and mandatory loans that have been locked and approved by underwriting. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS In accordance with ASC Topic 805 , Business Combinations , all assets acquired and liabilities assumed from our acquisition of WLH on February 6, 2020 were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid. Upon finalization, total purchase consideration of the WLH acquisition was $1.1 billion, consisting of multiple components: (i) cash of $157.8 million, (ii) the issuance of approximately 28.3 million shares of TMHC Common Stock with a value of $773.9 million, (iii) the repayment of $160.8 million of borrowings under WLH's Revolving Credit Facility, and (iv) the conversion of WLH issued equity instruments consisting of restricted stock units, restricted stock awards, stock options and warrants to TMHC stock with a value of $24.1 million. We determined the estimated fair value of inventory on a community-level basis, using a reasonable range of market comparable gross margins based on the inventory geography and product type. These estimates are significantly impacted by assumptions related to expected average home selling prices and sales incentives, expected sales paces and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. Such estimates were made for each individual community and varied significantly between communities. We believe our estimates and assumptions are reasonable. The following is a summary of the final fair value of assets acquired and liabilities assumed. (Dollars in thousands) Acquisition Date February 6, 2020 Assets acquired Real estate inventory $ 2,069,323 Prepaid expenses and other assets (1) 265,729 Deferred tax assets, net 148,193 Goodwill (2) 513,768 Total assets $ 2,997,013 Less liabilities assumed Accrued expenses and other liabilities $ 457,365 Total debt (3) 1,306,578 Non-controlling interest 116,157 Net assets acquired $ 1,116,913 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively. (3) See Note 8 - Debt Unaudited Pro Forma Results of Business Combination The following unaudited pro forma information for the periods presented include the results of operations of our acquisition of WLH as if it was completed on January 1, 2019. The pro forma results are presented for informational purposes only and do not purport to be indicative of the results of operations or future results that would have been achieved if the acquisition had taken place one year prior to the acquisition year. The pro forma information combines the historical results of the Company with the historical results of our acquisition for the periods presented. The unaudited pro forma results do not give effect to any synergies, operating efficiencies, or other costs savings that may result from the acquisition, or other significant non-reoccurring expenses or transactions that do not have a continuing impact. Earnings per share utilizes pro forma net income available to TMHC and total weighted average shares of common stock. The pro forma amounts are based on available information and certain assumptions that we believe are reasonable. Pro forma presentation for the WLH acquisition For the Year Ended December 31, (Dollars in thousands except per share data) 2020 2019 Total revenue $ 6,216,418 $ 6,751,846 Net income before allocation to non-controlling interests 309,022 171,114 Net loss attributable to non-controlling interests — joint ventures 6,975 30,661 Net income available to TMHC $ 302,047 $ 140,453 Weighted average shares - Basic 131,011 135,661 Weighted average shares - Diluted 132,370 136,952 Earnings per share - Basic $ 2.31 $ 1.04 Earnings per share - Diluted $ 2.28 $ 1.03 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. |
Joint Ventures | We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. |
Business Combinations | Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, Business Combinations. |
Use of Estimates | 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 consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of acquired assets, valuation of goodwill, valuation of 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. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage receivables. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, there was no concentration of mortgage receivables with any one customer for the year ended December 31, 2021. No losses have been experienced to date. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2021, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. |
Restricted Cash | Restricted Cash — For the years ended December 31, 2021 and 2020 restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. |
Leases | Leases — We recognize leases in accordance with ASC Topic 842, Leases. |
Real Estate Inventory | 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 sales 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. 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. The life cycle of a typical community generally ranges from two Actual 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. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to cost of sales when the related inventory is charged to cost of sales. 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 usually prepared in order to determine if the carrying value of the assets in that community exceeds the 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 year ended December 31, 2021, we recorded no impairment charges. For the year ended December 31, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. For the year ended December 31, 2019, we recorded $8.9 million of impairment charges, of which $2.0 million and $6.9 million related to our East and Central reporting segments, respectively. Impairment charges 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. 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 subjective 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. For the year ended December 31, 2021 we had no inactive projects. We had one inactive project in our East region with a carrying value of $13.5 million for the year ended December 31, 2020 and no inactive projects for the year ended December 31, 2019. 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. 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 fair value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. 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 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. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable 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 ownership interest in these entities or title to assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings. |
Land Deposits | Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to other expense if the land acquisition process is terminated or no longer determined probable. |
Mortgages Loans Held for Sale | Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, |
Derivative Assets | Derivative Assets — We are exposed to interest rate risk for interest rate lock commitments (“IRLCs”) and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on 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 of operations in the period in which they occur. |
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net — Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the Revolving Credit Facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the units to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivable, and other deferred costs. Build-to-rent and Urban Form assets consist primarily of land and development costs relating to projects under construction. |
Other Receivables, net | Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. |
Investments in Consolidated and Unconsolidated Entities | 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 reduces the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because 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 within our real estate inventory balance in the Consolidated Balance Sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net |
Income Taxes | Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. |
Property and Equipment, net | Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $7.5 million, $6.3 million, and $4.8 million, respectively, for the years ended December 31, 2021, 2020, and 2019. Depreciation expense is recorded in General and administrative expenses in the Consolidated Statements of Operations. |
Goodwill | Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . |
Insurance Costs, Self-Insurance Reserves and Warranty Reserves | Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced apart from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations. Our loss reserves for structural defects (maintained by Beneva) are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets. |
Stock Based Compensation | Stock Based Compensation — We have stock options, performance-based restricted stock units and non-performance-based restricted stock units, which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. |
Employee Benefit Plans | Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the IRC (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. We match 100% of employees’ voluntary contributions up to 3% of eligible compensation, and 50% for each dollar contributed between 3% and 5% of eligible compensation. |
Treasury Stock | Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity - Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. When factored into our weighted average calculations for purposes of earnings per share, the number of repurchased shares is based on the settlement date. To date, we have not sold any treasury stock. |
Revenue Recognition | Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers . 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 the proper 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) we satisfy the performance obligation. For our home sales transactions, we have one contract, with one performance obligation, with each customer to build and deliver the home purchased. Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue: • Revenue from closings of residential real estate is recognized when closings have occurred, 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 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, club houses, 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 included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets which include multi-use properties as part of our Urban Form 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. All of the loans TMHF originates are sold to third party investors within a short period of time, on a 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, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. |
Advertising Costs | Advertising Costs — We expense advertising costs as incurred. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients for applying U.S. GAAP to contracts affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and entities may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We adopted ASU 2019-12 as of January 1, 2021, but this pronouncement did not have a material impact on our consolidated financial statements and disclosures. |
Earnings Per Share | Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock 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. |
Fair Value Measurement | We have adopted ASC Topic 820, Fair Value Measurements, for valuation of financial instruments. ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 — Fair value is based on quoted prices 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. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, 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 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 |
Segment Reporting | Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Lease, Cost | A summary of our leases is shown below: Operating Leases Finance Leases As of December 31, As of December 31, (Dollars in millions) 2021 2020 2019 2021 2020 2019 Weighted average discount rate 5.9 % 6.1 % 5.8 % 7.3 % 7.3 % 5.8 % Weighted average remaining lease term (in years) 4.1 5.2 6.0 86.9 87.9 2.0 Payments on lease liabilities $ 20.7 $ 16.8 $ 9.4 $ 1.3 $ 1.3 $ — Recorded lease expense $ 15.9 $ 14.8 $ 9.1 $ 2.0 $ 2.0 $ — |
Schedule of Future Lease Payments | The future minimum lease payments required under our leases as of December 31, 2021 are as follows (dollars in thousands): Years Ending December 31, Operating Lease Finance Lease Total Lease 2022 $ 26,834 $ 1,344 $ 28,178 2023 20,096 1,341 21,437 2024 13,751 1,334 15,085 2025 9,423 1,325 10,748 2026 5,904 1,325 7,229 Thereafter (1) 5,141 264,985 270,126 Total lease payments $ 81,149 $ 271,654 $ 352,803 Less: Interest $ 8,931 $ 247,700 $ 256,631 Present value of lease liabilities $ 72,218 $ 23,954 $ 96,172 (1) Includes a 90 year land lease. |
Summary of Prepaid Expenses and Other Assets | Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2021 2020 Prepaid expenses $ 40,114 $ 50,368 Other assets (1) 118,697 68,502 Build-to-Rent assets (2) 93,538 16,137 Urban Form assets (3) 62,637 107,737 Total prepaid expenses and other assets, net $ 314,986 $ 242,744 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Components of Basic and Diluted Earnings Per Share | The following is a summary of the components of basic and diluted earnings per share: Year Ended December 31, (Dollars in thousands except per share data) 2021 2020 2019 Numerator: Net income available to TMHC— basic $ 663,026 $ 243,439 $ 254,652 Denominator: Weighted average shares — basic 126,077 127,812 106,997 Restricted stock units 920 865 983 Stock options 771 319 309 Warrants 251 174 — Weighted average shares — diluted 128,019 129,170 108,289 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 5.26 $ 1.90 $ 2.38 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 5.18 $ 1.88 $ 2.35 |
REAL ESTATE INVENTORY AND LAN_2
REAL ESTATE INVENTORY AND LAND DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of December 31, (Dollars in thousands) 2021 2020 Real estate developed or under development $ 3,895,681 $ 3,862,785 Real estate held for development or held for sale (1) 70,305 110,954 Operating communities (2) 1,309,551 1,072,134 Capitalized interest 168,670 163,780 Total owned inventory 5,444,207 5,209,653 Consolidated real estate not owned 55,314 122,773 Total real estate inventory $ 5,499,521 $ 5,332,426 (1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active inventory. |
Summary of Development Status of Land Inventory | The development status of our land inventory is as follows: As of December 31, 2021 2020 (Dollars in thousands) Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw 4,017 $ 178,952 7,032 $ 239,554 Partially developed 24,636 1,568,967 19,495 1,215,419 Finished 19,360 2,119,128 21,396 2,388,177 Long-term strategic assets — — 158 13,462 Total homebuilding owned lots 48,013 3,867,047 48,081 3,856,612 Other assets (1) 5,298 98,939 5,298 117,127 Total owned lots 53,311 $ 3,965,986 53,379 $ 3,973,739 |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Interest capitalized — beginning of period $ 163,780 $ 115,593 $ 96,031 Interest incurred 154,623 164,085 113,301 Interest amortized to cost of home closings (149,733) (115,898) (93,739) Interest capitalized — end of period $ 168,670 $ 163,780 $ 115,593 |
INVESTMENTS IN CONSOLIDATED A_2
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method | Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): As of December 31, (Dollars in thousands) 2021 2020 Assets: Real estate inventory $ 414,687 $ 342,451 Other assets 118,990 133,903 Total assets $ 533,677 $ 476,354 Liabilities and owners’ equity: Debt $ 167,842 $ 183,911 Other liabilities 16,245 21,215 Total liabilities $ 184,087 $ 205,126 Owners’ equity: TMHC $ 171,406 $ 127,955 Others 178,184 143,273 Total owners’ equity $ 349,590 $ 271,228 Total liabilities and owners’ equity $ 533,677 $ 476,354 Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Revenues $ 130,640 $ 161,888 $ 277,263 Costs and expenses (97,596) (129,764) (242,044) Income of unconsolidated entities $ 33,044 $ 32,124 $ 35,219 TMHC's share in income of unconsolidated entities $ 11,130 $ 11,176 $ 9,509 Distributions from unconsolidated entities $ 42,655 $ 51,626 $ 34,057 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: As of December 31, (Dollars in thousands) 2021 2020 Real estate development costs to complete $ 49,833 $ 38,935 Compensation and employee benefits 166,272 113,896 Self-insurance and warranty reserves 141,839 118,116 Interest payable 48,551 45,917 Property and sales taxes payable 29,384 28,523 Other accruals 89,330 84,680 Total accrued expenses and other liabilities $ 525,209 $ 430,067 |
Summary of Changes in Reserves | A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Reserve — beginning of period $ 118,116 $ 120,048 $ 93,790 Net additions to reserves due to WLH acquisition — 9,984 — Additions to reserves 77,827 62,722 44,093 Costs and claims incurred (67,704) (82,137) (67,554) Change in estimates to pre-existing reserves (1) 13,600 7,499 49,719 Reserve — end of period $ 141,839 $ 118,116 $ 120,048 (1) Changes in estimates to pre-existing reserves for the year ended December 31, 2019 included a $43.1 million adjustment for a construction defect reserve related to warranty remediation isolated to one specific community in the Central region. The reserve estimate is based on assumptions, including but not limited to the number of homes affected, the costs associated with each repair, and the effectiveness of the repairs. Due to the degree of judgement required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those recorded and such differences could be material, resulting in a change in future estimated reserves. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Borrowings | Total debt consists of the following: As of December 31, 2021 2020 (Dollars in thousands) Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.875% Senior Notes due 2023 350,000 (733) 349,267 350,000 (1,300) 348,700 5.625% Senior Notes due 2024 350,000 (1,166) 348,834 350,000 (1,705) 348,295 5.875% Senior Notes due 2027 500,000 (4,243) 495,757 500,000 (5,026) 494,974 6.625% Senior Notes due 2027 (1) 300,000 17,718 317,718 300,000 20,915 320,915 5.750% Senior Notes due 2028 450,000 (3,814) 446,186 450,000 (4,445) 445,555 5.125% Senior Notes due 2030 500,000 (5,440) 494,560 500,000 (6,074) 493,926 Senior Notes subtotal 2,450,000 2,322 2,452,322 2,450,000 2,365 2,452,365 Loans payable and other borrowings 404,386 — 404,386 348,741 — 348,741 $800 Million Revolving Credit Facility (2) — — — — — — $100 Million Revolving Credit Facility (2)(3) 31,529 — 31,529 — — — Mortgage warehouse borrowings 413,887 — 413,887 127,289 — 127,289 Total debt $ 3,299,802 $ 2,322 $ 3,302,124 $ 2,926,030 $ 2,365 $ 2,928,395 (1) Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting estimates. (2) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Consolidated Balance Sheets. |
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2021 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 12 $ 10,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 86,409 150,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 116,601 250,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 105,065 150,000 LIBOR + 1.65% November 20, 2022 Mortgage Loans Warehouse E 105,800 200,000 LIBOR + 1.50% On Demand Mortgage Loans Total $ 413,887 $ 760,000 December 31, 2020 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 40,958 $ 55,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 19,457 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,148 75,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 23,726 80,000 LIBOR + 1.65% November 15, 2021 Mortgage Loans Total $ 127,289 $ 295,000 (1) Subject to certain interest rate floors. |
Principal Maturities of Total Debt | Principal maturities of total debt for the year ended December 31, 2021 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2022 $ 651,872 2023 471,053 2024 380,440 2025 19,151 2026 20,795 Thereafter 1,756,491 Total debt $ 3,299,802 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of our financial instruments are as follows: As of December 31, 2021 As of December 31, 2020 (Dollars in thousands) Level in Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 467,534 $ 467,534 $ 201,177 $ 201,177 IRLCs 3 2,110 2,110 5,294 5,294 MBSs 2 (449) (449) (1,847) (1,847) Mortgage warehouse borrowings 2 413,887 413,887 127,289 127,289 Loans payable and other borrowings 2 404,386 404,386 348,741 348,741 5.875% Senior Notes due 2023 (1) 2 349,267 365,890 348,700 371,000 5.625% Senior Notes due 2024 (1) 2 348,834 372,750 348,295 375,830 5.875% Senior Notes due 2027 (1) 2 495,757 560,000 494,974 566,650 6.625% Senior Notes due 2027 (1) 2 317,718 315,750 320,915 324,240 5.750% Senior Notes due 2028 (1) 2 446,186 502,875 445,555 509,625 5.125% Senior Notes due 2030 (1) 2 494,560 550,000 493,926 560,000 $800 Million Revolving Credit Facility 2 — — — — $100 Million Revolving Credit Facility 2 31,529 31,529 — — Equity Security Investment 1 6,400 6,400 — — (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes. |
Fair Value of Assets Measured on a Nonrecurring Basis | The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) Level in As of Description: Inventories 3 22,556 We did not have any inventories impaired for the year ended December 31, 2021. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Current: Federal $ 73,087 $ 11,621 $ 54,372 State 23,493 11,733 9,839 Current tax provision $ 96,580 $ 23,354 $ 64,211 Deferred: Federal $ 75,044 $ 45,594 $ (1,811) State 9,117 5,642 4,958 Deferred tax provision $ 84,161 $ 51,236 $ 3,147 Total income tax provision $ 180,741 $ 74,590 $ 67,358 |
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows: Year Ended December 31, 2021 2020 2019 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 3.8 4.6 3.9 Non-controlling interest (0.6) — — Uncertain tax positions (0.2) (0.1) (0.2) Deferred tax adjustments — — 0.2 Energy tax credits (1.4) (2.9) (4.6) Disallowed compensation expense 0.2 0.9 0.3 Disallowed M&A expenses — 2.1 — Impact of CARES Act (1.3) (2.2) — Other (0.6) (0.4) 0.3 Effective Rate 20.9 % 23.0 % 20.9 % |
Summary of Components of Deferred Tax Assets and Liabilities | A summary of these components for the years ending December 31, 2021 and 2020 is as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Real estate inventory $ 18,300 $ 91,499 Accruals and reserves 56,244 47,536 Other 11,739 22,914 Net operating losses (1) 76,119 87,940 Capital loss carryforward 36,054 36,054 Total deferred tax assets $ 198,456 $ 285,943 Deferred tax liabilities: Real estate inventory, intangibles, other (11,162) (11,811) Valuation allowance (36,054) (36,054) Total net deferred tax assets $ 151,240 $ 238,078 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of WLH. All three acquisitions were deemed to be a change in control as defined by Section 382. |
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ending December 31, (Dollars in thousands) 2021 2020 2019 Beginning of the period $ 5,762 $ 6,158 $ 7,391 Increases from current year acquisitions — — — Increases of prior year items — — 15 Settlement with tax authorities — — (977) Decreased for tax positions of prior years (4,140) — (76) Decreased due to statute of limitations (1,622) (396) (195) End of the period $ — $ 5,762 $ 6,158 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stock Repurchases | The following table summarizes share repurchase activity for the program for the years ended December 31, 2021 and 2020: Year Ended December 31, (Dollars in thousands) 2021 2020 Amount available for repurchase — beginning of period (1) $ 86,831 $ — Additional amount authorized for repurchase (2) 500,000 200,000 Unused amount as part of authorization renewal 3) (74,998) — Amount repurchased at cost, 9,918,104 and 5,941,324 shares as of December 31, 2021 and December 31, 2020, respectively (281,420) (103,332) Amount available for repurchase — end of period $ 230,413 $ 96,668 (1) Represents the amount available for repurchase as of January 1 for the years provided, adjusted for previously expired share repurchase authorizations. (2) Amount includes a $250.0 million renewal announced on each June 1, 2021 and December 13, 2021. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statements of Operations: (Dollars in thousands) Year Ended December 31, 2021 2020 2019 Restricted stock units (1) (2) $ 15,856 $ 19,938 $ 10,989 Stock options 4,087 7,085 3,774 Total stock compensation $ 19,943 $ 27,023 $ 14,763 (1) Includes compensation expense related to time-based RSUs and PRSUs. |
Summary of Stock Option Activity | The following table summarizes stock option activity for the Plan for each year presented: Year Ended December 31, 2021 2020 2019 Number of Weighted Number of Options (1) Weighted Number of Weighted Outstanding, beginning 3,772,775 $ 19.73 3,339,244 $ 18.98 3,239,995 $ 18.87 Granted (2) 712,910 28.64 1,139,583 21.95 997,924 18.15 Exercised (1,204,283) 19.37 (551,845) 17.91 (765,781) 17.29 Cancelled/forfeited (2) (115,790) 21.53 (154,207) 20.93 (132,894) 19.86 Balance, ending 3,165,612 $ 22.02 3,772,775 $ 19.73 3,339,244 $ 18.98 Options exercisable, at December 31, 1,407,618 $ 19.12 1,934,328 $ 18.73 1,400,974 $ 19.09 (1) The year ended December 31, 2020 has been adjusted to include 309,277 options granted, 94,861 options exercised, and 214,416 options exercisable from the acquisition of WLH which were previously excluded from the table. (2) Excludes the number of options granted and canceled in the same period. As of December 31, (Dollars in thousands) 2021 2020 2019 Unamortized value of unvested stock options (net of estimated forfeitures) $ 7,515 $ 6,847 $ 6,759 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options outstanding 7.0 6.6 6.9 Weighted-average remaining contractual life (in years) for options exercisable 5.3 4.9 5.1 |
Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants | The following table summarizes the weighted-average assumptions and fair value used for stock options grants: Year Ended December 31, 2021 2020 2019 Expected dividend yield —% —% —% Expected volatility 24.65% 24.19% 19.33% Risk-free interest rate 0.75% 1.19% 2.49% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $7.45 $5.89 $4.69 |
Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable | The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2021, 2020 and 2019 (excluding options relating to the acquisition of WLH) As of December 31, (Dollars in thousands) 2021 2020 2019 Aggregate intrinsic value of options outstanding $ 38,190 $ 21,399 $ 10,935 Aggregate intrinsic value of options exercisable $ 18,897 $ 11,903 $ 4,283 |
Summary of Activity of Stock Units | The following table summarizes the activity of our PRSUs: Year Ended December 31, 2021 2020 2019 Balance, beginning 930,633 998,639 1,155,723 Granted 289,308 295,405 416,874 Vested (275,286) (319,732) (511,984) Forfeited (18,462) (43,679) (61,974) Balance, ending 926,193 930,633 998,639 Year Ended December 31, (Dollars in thousands): 2021 2020 2019 PRSU expense recognized $ 8,125 $ 5,692 $ 5,866 Unamortized value of PRSUs $ 8,419 $ 7,848 $ 7,912 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 The following tables summarize the activity of our RSUs: Year Ended December 31, 2021 2020 2019 (Dollars in thousands except per share data): Number of Weighted Number of RSUs (1) Weighted Number of Weighted Outstanding, beginning 881,272 $ 21.33 709,754 $ 18.11 769,641 $ 16.73 Granted 370,762 28.62 1,228,451 23.07 299,481 18.42 Vested (390,358) 21.28 (1,004,450) 16.83 (320,701) 15.25 Forfeited (57,211) 23.68 (52,483) 19.65 (38,667) 16.91 Balance, ending (1) 804,465 $ 24.73 881,272 $ 21.33 709,754 $ 18.11 (1) The year ended December 31, 2020 has been adjusted to include 791,189 RSUs granted and 684,078 RSU's vested from the acquisition of WLH which were previously excluded from the table. Year Ended December 31, (Dollars in thousands): 2021 2020 2019 RSU expense recognized (1) $ 7,731 $ 14,246 $ 5,123 Unamortized value of RSUs (1) $ 10,561 $ 9,116 $ 6,176 Weighted-average period expense is expected to be recognized (in years) (1) 1.7 1.8 1.7 (1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized $7.1 million of RSU expense and approximately $1.0 million remains unamortized and will be expensed through the first quarter of 2022. |
OPERATING AND REPORTING SEGME_2
OPERATING AND REPORTING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information Excluding Discontinued Operations | Segment information is as follows: Year Ended December 31, 2021 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 2,423,948 $ 1,741,689 $ 3,126,621 $ 164,615 $ 44,392 $ 7,501,265 Gross margin $ 522,721 $ 336,896 $ 614,130 $ 62,767 $ 11,367 $ 1,547,881 Selling, general and administrative expense (184,744) (133,991) (187,515) — (162,092) (668,342) Equity in income/(loss) of unconsolidated entities — 306 2,190 8,644 (10) 11,130 Interest and other expense, net (3) (923) (3,103) (7,228) — (16,307) (27,561) Income/(loss) before income taxes $ 337,054 $ 200,108 $ 421,577 $ 71,411 $ (167,042) $ 863,108 (1) All operating expenses, excluding Transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Year Ended December 31, 2020 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 1,919,247 $ 1,633,428 $ 2,396,101 $ 155,827 $ 24,717 $ 6,129,320 Gross margin $ 319,361 $ 306,158 $ 352,648 $ 66,918 $ (866) $ 1,044,219 Selling, general and administrative expense (160,222) (132,796) (165,682) — (113,675) (572,375) Equity in income of unconsolidated entities — 23 683 10,470 — 11,176 Interest and other expense, net (3) (574) (4,471) (37,600) (8,971) (97,040) (148,656) Loss on extinguishment of debt — — — — (10,247) (10,247) Income/(loss) before income taxes $ 158,565 $ 168,914 $ 150,049 $ 68,417 $ (221,828) $ 324,117 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services (1) Corporate Total Total revenues $ 1,950,742 $ 1,334,389 $ 1,384,113 $ 92,815 $ — $ 4,762,059 Gross margin $ 307,893 $ 187,957 $ 286,511 $ 41,729 $ — $ 824,090 Selling, general and administrative expense (168,928) (121,962) (94,609) — (104,772) (490,271) Equity in (loss)/income of unconsolidated entities — (215) 3,562 6,021 141 9,509 Interest and other expense, net (2) (5,545) (1,024) (3,273) — (5,408) (15,250) Loss on extinguishment of debt — — — — (5,806) (5,806) Income/(loss) before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845) $ 322,272 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. |
Assets from Segment | As of December 31, 2021 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,781,948 $ 1,282,024 $ 2,665,084 $ — $ — $ 5,729,056 Investments in unconsolidated entities — 87,600 79,531 4,275 — 171,406 Other assets 196,126 221,906 588,520 559,233 1,261,530 2,827,315 Total assets $ 1,978,074 $ 1,591,530 $ 3,333,135 $ 563,508 $ 1,261,530 $ 8,727,777 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2020 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,712,852 $ 1,176,604 $ 2,568,595 $ — $ — $ 5,458,051 Investments in unconsolidated entities — 58,052 65,395 4,498 10 127,955 Other assets 170,382 192,981 578,231 284,265 926,130 2,151,989 Total assets $ 1,883,234 $ 1,427,637 $ 3,212,221 $ 288,763 $ 926,140 $ 7,737,995 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate Total Real estate inventory and land deposits $ 1,841,904 $ 965,039 $ 1,219,411 $ — $ — $ 4,026,354 Investments in unconsolidated entities — 37,506 86,996 4,015 242 128,759 Other assets 165,777 121,724 60,060 257,760 485,252 1,090,573 Total assets $ 2,007,681 $ 1,124,269 $ 1,366,467 $ 261,775 $ 485,494 $ 5,245,686 |
MORTGAGE HEDGING ACTIVITIES (Ta
MORTGAGE HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summaries of Derivative Instruments | The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2021 December 31, 2020 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 2,110 $ 158,299 $ 5,294 $ 260,954 MBSs (449) 407,000 (1,847) 376,000 Total, net $ 1,661 $ 3,447 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Created | The following is a summary of the final fair value of assets acquired and liabilities assumed. (Dollars in thousands) Acquisition Date February 6, 2020 Assets acquired Real estate inventory $ 2,069,323 Prepaid expenses and other assets (1) 265,729 Deferred tax assets, net 148,193 Goodwill (2) 513,768 Total assets $ 2,997,013 Less liabilities assumed Accrued expenses and other liabilities $ 457,365 Total debt (3) 1,306,578 Non-controlling interest 116,157 Net assets acquired $ 1,116,913 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively. (3) See Note 8 - Debt |
Unaudited Pro Forma Results of Business Combinations | For the Year Ended December 31, (Dollars in thousands except per share data) 2020 2019 Total revenue $ 6,216,418 $ 6,751,846 Net income before allocation to non-controlling interests 309,022 171,114 Net loss attributable to non-controlling interests — joint ventures 6,975 30,661 Net income available to TMHC $ 302,047 $ 140,453 Weighted average shares - Basic 131,011 135,661 Weighted average shares - Diluted 132,370 136,952 Earnings per share - Basic $ 2.31 $ 1.04 Earnings per share - Diluted $ 2.28 $ 1.03 |
BUSINESS - Narrative (Detail)
BUSINESS - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2021segment | |
Accounting Policies [Abstract] | |
Reportable segments | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
Weighted average remaining lease term (in years) | 86 years 10 months 24 days | 87 years 10 months 24 days | 2 years |
Weighted average discount rate | 7.30% | 7.30% | 5.80% |
Inventory impairment charges | $ 0 | $ 9,611,000 | $ 9,384,000 |
Real estate inventory | 5,499,521,000 | 5,332,426,000 | |
Impairment charges on unconsolidated entities | 0 | 0 | 0 |
Depreciation expense | 7,500,000 | 6,300,000 | 4,800,000 |
Impairment of goodwill | $ 0 | 0 | 0 |
Goodwill | 513,800,000 | ||
Insurance coverage period | 10 years | ||
Warranty coverage period, workmanship or materials | 1 year | ||
Warranty coverage period, systems | 2 years | ||
Warranty coverage period, structural defects | 10 years | ||
Contribution made to consolidated defined contribution plan | $ 11,300,000 | 4,700,000 | 10,700,000 |
Advertising costs | 30,400,000 | 31,900,000 | 32,000,000 |
Continuing Operations | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | $ 0 | $ 9,600,000 | 8,900,000 |
Eastern Region | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | 2,000,000 | ||
Central | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | $ 6,900,000 | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 2 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 5 years | ||
Model and sales office improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Buildings | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Buildings | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Building and Leasehold Improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Furniture, fixtures and computer equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Furniture, fixtures and computer equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Employer Matching Contribution Tranche One | |||
Significant Accounting Policies [Line Items] | |||
Defined contribution plan employee matching contribution | 100.00% | ||
Percentage of contribution based on participant's age and ranges | 3.00% | ||
Employer Matching Contribution Tranche Two | |||
Significant Accounting Policies [Line Items] | |||
Defined contribution plan employee matching contribution | 50.00% | ||
Employer Matching Contribution Tranche Two | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of contribution based on participant's age and ranges | 3.00% | ||
Employer Matching Contribution Tranche Two | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of contribution based on participant's age and ranges | 5.00% | ||
East | |||
Significant Accounting Policies [Line Items] | |||
Real estate inventory | $ 13,500,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Lease Details (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Leases | |||
Weighted average discount rate | 5.90% | 6.10% | 5.80% |
Weighted average remaining lease term (in years) | 4 years 1 month 6 days | 5 years 2 months 12 days | 6 years |
Payments on lease liabilities | $ 20,700 | $ 16,800 | $ 9,400 |
Recorded lease expense | $ 15,900 | $ 14,800 | $ 9,100 |
Finance Leases | |||
Weighted average discount rate | 7.30% | 7.30% | 5.80% |
Weighted average remaining lease term (in years) | 86 years 10 months 24 days | 87 years 10 months 24 days | 2 years |
Payments on lease liabilities | $ 1,345 | $ 1,325 | $ 0 |
Recorded lease expense | $ 2,000 | $ 2,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease Payments | ||
2022 | $ 26,834 | |
2023 | 20,096 | |
2024 | 13,751 | |
2025 | 9,423 | |
2026 | 5,904 | |
Thereafter | 5,141 | |
Total lease payments | 81,149 | |
Less: Interest | 8,931 | |
Present value of lease liabilities | 72,218 | |
Finance Lease Payments | ||
2022 | 1,344 | |
2023 | 1,341 | |
2024 | 1,334 | |
2025 | 1,325 | |
2026 | 1,325 | |
Thereafter | 264,985 | |
Total lease payments | 271,654 | |
Less: Interest | 247,700 | |
Present value of lease liabilities | 23,954 | |
2022 | 28,178 | |
2023 | 21,437 | |
2024 | 15,085 | |
2025 | 10,748 | |
2026 | 7,229 | |
Thereafter | 270,126 | |
Total lease payments | 352,803 | |
Less: Interest | 256,631 | |
Present value of lease liabilities | $ 96,172 | $ 83,240 |
Operating lease, liability, statement of financial position [Extensible List] | Present value of lease liabilities | Present value of lease liabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Present value of lease liabilities | Present value of lease liabilities |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 40,114 | $ 50,368 |
Other assets | 118,697 | 68,502 |
Build-to-Rent | 93,538 | 16,137 |
Urban Form assets | 62,637 | 107,737 |
Total prepaid expenses and other assets, net | $ 314,986 | $ 242,744 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income available to TMHC— basic | $ 663,026 | $ 243,439 | $ 254,652 |
Denominator: | |||
Weighted average shares - basic (in shares) | 126,077 | 127,812 | 106,997 |
Restricted stock units (in shares) | 920 | 865 | 983 |
Stock options (in shares) | 771 | 319 | 309 |
Warrants (in shares) | 251 | 174 | 0 |
Weighted average shares - diluted (in shares) | 128,019 | 129,170 | 108,289 |
Earnings per common share — basic: | |||
Net income available to Taylor Morrison Home Corporation (in dollars per share) | $ 5.26 | $ 1.90 | $ 2.38 |
Earnings per common share — diluted: | |||
Net income available to Taylor Morrison Home Corporation (in dollars per share) | $ 5.18 | $ 1.88 | $ 2.35 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options and restricted stock units (RSUs) | |||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the calculation of earnings per share (in shares) | 1,030,282 | 2,335,006 | 2,394,703 |
REAL ESTATE INVENTORY AND LAN_3
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||||
Real estate developed or under development | $ 3,895,681 | $ 3,862,785 | ||
Real estate held for development or held for sale | 70,305 | 110,954 | ||
Operating communities | 1,309,551 | 1,072,134 | ||
Capitalized interest | 168,670 | 163,780 | $ 115,593 | $ 96,031 |
Total owned inventory | 5,444,207 | 5,209,653 | ||
Consolidated real estate not owned | 55,314 | 122,773 | ||
Total real estate inventory | $ 5,499,521 | $ 5,332,426 |
REAL ESTATE INVENTORY AND LAN_4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Development Status of Land Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Total homebuilding owned lots | $ 48,013 | |
Other assets | 5,298 | |
Book Value of Land and Development | ||
Inventory [Line Items] | ||
Raw | 178,952 | $ 239,554 |
Partially developed | 1,568,967 | 1,215,419 |
Finished | 2,119,128 | 2,388,177 |
Long-term strategic assets | 0 | 13,462 |
Total homebuilding owned lots | 3,867,047 | 3,856,612 |
Other assets | 98,939 | 117,127 |
Total owned lots | 3,965,986 | 3,973,739 |
Owned Lots | ||
Inventory [Line Items] | ||
Raw | 4,017 | 7,032 |
Partially developed | 24,636 | 19,495 |
Finished | 19,360 | 21,396 |
Long-term strategic assets | 0 | 158 |
Total homebuilding owned lots | 48,081 | |
Other assets | 5,298 | |
Total owned lots | $ 53,311 | $ 53,379 |
REAL ESTATE INVENTORY AND LAN_5
REAL ESTATE INVENTORY AND LAND DEPOSITS - Narrative (Details) $ in Millions | Dec. 31, 2021USD ($)lot | Dec. 31, 2020USD ($)lot |
Real Estate [Line Items] | ||
Right to purchase lots of land option (in lots) | lot | 8,360 | 7,449 |
Aggregate purchase price, excluding acquisitions | $ 507.2 | $ 485.4 |
Land deposits | 97.6 | 65.3 |
Aggregate purchase price | $ 1,300 | $ 800 |
William Lyon Homes | ||
Real Estate [Line Items] | ||
Right to purchase lots of land option (in lots) | lot | 5,731 | 2,426 |
Land deposits | $ 117.7 | $ 60.3 |
Aggregate purchase price | $ 749.8 | $ 275 |
REAL ESTATE INVENTORY AND LAN_6
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Interest Costs [Roll Forward] | |||
Interest capitalized — beginning of period | $ 163,780 | $ 115,593 | $ 96,031 |
Interest incurred | 154,623 | 164,085 | 113,301 |
Interest amortized to cost of home closings | (149,733) | (115,898) | (93,739) |
Interest capitalized — end of period | $ 168,670 | $ 163,780 | $ 115,593 |
INVESTMENTS IN CONSOLIDATED A_3
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Other assets | $ 2,827,315 | $ 2,151,989 | $ 1,090,573 |
Total assets | 8,727,777 | 7,737,995 | $ 5,245,686 |
Liabilities and owners’ equity: | |||
Debt | 3,302,124 | 2,928,395 | |
Total liabilities | 4,756,795 | 4,144,245 | |
Owners’ equity: | |||
Total liabilities and stockholders’ equity | 8,727,777 | 7,737,995 | |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Assets: | |||
Real estate inventory | 414,687 | 342,451 | |
Other assets | 118,990 | 133,903 | |
Total assets | 533,677 | 476,354 | |
Liabilities and owners’ equity: | |||
Debt | 167,842 | 183,911 | |
Other liabilities | 16,245 | 21,215 | |
Total liabilities | 184,087 | 205,126 | |
Owners’ equity: | |||
TMHC | 171,406 | 127,955 | |
Others | 178,184 | 143,273 | |
Total owners’ equity | 349,590 | 271,228 | |
Total liabilities and stockholders’ equity | $ 533,677 | $ 476,354 |
INVESTMENTS IN CONSOLIDATED A_4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 7,501,265 | $ 6,129,320 | $ 4,762,059 |
Costs and expenses | (5,953,384) | (5,085,101) | (3,937,969) |
Equity in income/(loss) of unconsolidated entities | 11,130 | 11,176 | 9,509 |
Distributions of earnings from unconsolidated entities | 10,740 | 11,564 | 10,473 |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 130,640 | 161,888 | 277,263 |
Costs and expenses | (97,596) | (129,764) | (242,044) |
Equity in income/(loss) of unconsolidated entities | 33,044 | 32,124 | 35,219 |
TMHC's share in income of unconsolidated entities | 11,130 | 11,176 | 9,509 |
Distributions of earnings from unconsolidated entities | $ 42,655 | $ 51,626 | $ 34,057 |
INVESTMENTS IN CONSOLIDATED A_5
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | |||
Assets | $ 8,727,777 | $ 7,737,995 | $ 5,245,686 |
Cash and cash equivalents | 832,821 | 532,843 | |
Liabilities | 4,756,795 | 4,144,245 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 291,800 | 389,200 | |
Cash and cash equivalents | 22,300 | 25,800 | |
Owned inventory | 147,600 | 320,400 | |
Liabilities | $ 165,100 | $ 216,400 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||||
Real estate development costs to complete | $ 49,833 | $ 38,935 | ||
Compensation and employee benefits | 166,272 | 113,896 | ||
Self-insurance and warranty reserves | 141,839 | 118,116 | $ 120,048 | $ 93,790 |
Interest payable | 48,551 | 45,917 | ||
Property and sales taxes payable | 29,384 | 28,523 | ||
Other accruals | 89,330 | 84,680 | ||
Total accrued expenses and other liabilities | $ 525,209 | $ 430,067 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of changes in warranty reserves | |||
Reserve — beginning of period | $ 118,116 | $ 120,048 | $ 93,790 |
Net additions to reserves due to WLH acquisition | 0 | 9,984 | 0 |
Additions to reserves | 77,827 | 62,722 | 44,093 |
Costs and claims incurred | (67,704) | (82,137) | (67,554) |
Change in estimates to pre-existing reserves | 13,600 | 7,499 | 49,719 |
Reserve — end of period | $ 141,839 | $ 118,116 | 120,048 |
Central | |||
Summary of changes in warranty reserves | |||
Charge for construction defect remediation | $ 43,100 |
DEBT - Senior Notes and Other B
DEBT - Senior Notes and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 10, 2020 | Jun. 05, 2019 | Apr. 16, 2015 | Mar. 05, 2014 |
Debt Instrument [Line Items] | ||||||
Principal | $ 3,299,802 | $ 2,926,030 | ||||
Unamortized Debt Issuance (Costs) / Premium | 2,322 | 2,365 | ||||
Carrying Value | 3,302,124 | 2,928,395 | ||||
Facility Amount | 760,000 | 295,000 | ||||
Loans payable and other borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 404,386 | 348,741 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 404,386 | 348,741 | ||||
Mortgage warehouse borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 413,887 | 127,289 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 413,887 | 127,289 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 2,450,000 | 2,450,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | 2,322 | 2,365 | ||||
Carrying Value | $ 2,452,322 | 2,452,365 | ||||
Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||||
Principal | $ 350,000 | 350,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (733) | (1,300) | ||||
Carrying Value | $ 349,267 | 348,700 | ||||
Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.625% | 5.625% | ||||
Principal | $ 350,000 | 350,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (1,166) | (1,705) | ||||
Carrying Value | $ 348,834 | 348,295 | ||||
Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||||
Principal | $ 500,000 | 500,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (4,243) | (5,026) | ||||
Carrying Value | $ 495,757 | 494,974 | ||||
Senior Notes | 6.625% Senior Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||||
Principal | $ 300,000 | 300,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | 17,718 | 20,915 | ||||
Carrying Value | $ 317,718 | 320,915 | ||||
Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.75% | |||||
Principal | $ 450,000 | 450,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (3,814) | (4,445) | ||||
Carrying Value | $ 446,186 | 445,555 | ||||
Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.125% | |||||
Principal | $ 500,000 | 500,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (5,440) | (6,074) | ||||
Carrying Value | 494,560 | 493,926 | ||||
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 31,529 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 31,529 | 0 | ||||
Facility Amount | 100,000 | |||||
Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 0 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 0 | $ 0 | ||||
Facility Amount | $ 800,000 |
DEBT - 2023 Senior Notes (Detai
DEBT - 2023 Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | Apr. 16, 2015 | Jul. 31, 2020 | Dec. 31, 2021 | Feb. 10, 2020 |
5.875% Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||
Senior Notes issued amount | $ 350 | |||
Redemption price percentage | 101.00% | 100.00% | ||
6.625% Senior Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||
Redemption price percentage | 106.625% |
DEBT - 2024 Senior Notes (Detai
DEBT - 2024 Senior Notes (Details) - 5.625% Senior Notes due 2024 - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Mar. 05, 2014 | |
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 5.625% | 5.625% |
Senior Notes issued amount | $ 350 | |
Redemption price percentage | 100.00% |
DEBT - 2027 Senior Notes (Detai
DEBT - 2027 Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Feb. 10, 2020 | Jun. 05, 2019 | |
Debt Instrument [Line Items] | ||||
Aggregate principal amount outstanding | $ 2,452,322 | $ 2,452,365 | ||
Senior Notes | 5.875% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||
Senior Notes issued amount | $ 500,000 | |||
Senior Notes | 6.625% Senior Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||
Redemption price percentage | 106.625% | |||
Aggregate principal amount outstanding | $ 290,400 | |||
Debt instrument, redemption, maximum percentage of face amount | 40.00% | |||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.00% | |||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.313% | |||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.208% | |||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.104% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | |||
Aggregate principal amount outstanding | $ 9,600 |
DEBT - 2028 Senior Notes (Detai
DEBT - 2028 Senior Notes (Details) - Senior Notes - 5.75% Notes Due 2028 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Aug. 01, 2019 | |
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 5.75% | 5.75% |
Senior Notes issued amount | $ 450 | |
Redemption price percentage | 100.00% |
DEBT - 2030 Senior Notes and Re
DEBT - 2030 Senior Notes and Redemption of the 2023 and 2025 Senior Notes (Details) - USD ($) $ in Thousands | Apr. 16, 2015 | Jul. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Gain (loss) on extinguishment of debt | $ 0 | $ (10,247) | $ (5,806) | ||
5.125% Senior Notes Due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt interest rate | 5.125% | ||||
Senior Notes issued amount | $ 500,000 | ||||
Redemption price percentage | 100.00% | ||||
6.00% Senior Notes Due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt interest rate | 6.00% | ||||
Debt instrument, redemption price, make-whole premium percentage | 0.11% | ||||
Debt instrument, redemption price, make-whole premium, basis percentage | 5000.00% | ||||
5.875% Senior Notes Due 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt interest rate | 5.875% | ||||
Senior Notes Due 2023 And 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Gain (loss) on extinguishment of debt | (10,200) | ||||
6.00% Senior Notes due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, repurchase amount | $ 266,900 | 83,100 | |||
5.875% Senior Notes due 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, repurchase amount | $ 333,100 | $ 103,800 | |||
Redemption price percentage | 102.938% | ||||
5.875% Senior Notes due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt interest rate | 5.875% | 5.875% | |||
Senior Notes issued amount | $ 350,000 | ||||
Redemption price percentage | 101.00% | 100.00% |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)equityCureRightfiscalQuarter | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | $ 760,000 | $ 295,000 |
Outstanding letters of credit | 1,200,000 | 1,000,000 |
Revolving credit facility borrowings | 31,529 | 0 |
Revolving Credit Facility | $800 Million Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | 800,000 | |
Unamortized debt issuance costs included in prepaid expenses and other assets, net | 1,100 | 1,600 |
Outstanding letters of credit | 58,700 | 64,300 |
Availability under revolving credit facility | $ 741,300 | $ 735,700 |
Capitalization ratio maximum | 60.00% | |
Minimum consolidated tangible net worth requirement | $ 2,400,000 | |
Revolving credit facility borrowings | $ 40,000 | |
Maximum consecutive days for financial covenant | 5 days | |
Number of consecutive fiscal quarters for equity cure right | fiscalQuarter | 4 | |
Maximum number of times company can use equity cure right | equityCureRight | 5 | |
Revolving Credit Facility | $100 Million Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | $ 100,000 | |
Unamortized debt issuance costs included in prepaid expenses and other assets, net | 700 | |
Availability under revolving credit facility | $ 68,500 | |
Capitalization ratio maximum | 60.00% | |
Minimum consolidated tangible net worth requirement | $ 2,400,000 | |
Revolving credit facility borrowings | $ 40,000 | |
Maximum consecutive days for financial covenant | 5 days | |
Number of consecutive fiscal quarters for equity cure right | fiscalQuarter | 4 | |
Maximum number of times company can use equity cure right | equityCureRight | 5 |
Debt - Mortgage Warehouse Borro
Debt - Mortgage Warehouse Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 413,887 | $ 127,289 |
Facility Amount | 760,000 | 295,000 |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Restricted cash and investments, current | 3,500 | 1,300 |
Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 12 | 40,958 |
Facility Amount | $ 10,000 | $ 55,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 86,409 | $ 19,457 |
Facility Amount | $ 150,000 | $ 85,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 116,601 | $ 43,148 |
Facility Amount | $ 250,000 | $ 75,000 |
Collateral | Mortgage Loans and Restricted Cash | Mortgage Loans and Restricted Cash |
Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 105,065 | $ 23,726 |
Facility Amount | $ 150,000 | $ 80,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 105,800 | |
Facility Amount | $ 200,000 | |
Collateral | Mortgage Loans | |
LIBOR | Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.75% | 1.75% |
LIBOR | Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.75% | 1.75% |
LIBOR | Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 2.05% | 2.05% |
LIBOR | Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.65% | 1.65% |
LIBOR | Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.50% | |
Mortgage loans | ||
Line of Credit Facility [Line Items] | ||
Mortgage loans held for sale | $ 467,500 | $ 201,200 |
DEBT - Loans Payable and Other
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payable and Other Borrowings | Dec. 31, 2021 | Dec. 31, 2020 |
Minimum | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate | 0.00% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate | 8.00% | 8.00% |
DEBT - Future Minimum Principal
DEBT - Future Minimum Principal Payments on Total Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | ||
2022 | $ 651,872 | |
2023 | 471,053 | |
2024 | 380,440 | |
2025 | 19,151 | |
2026 | 20,795 | |
Thereafter | 1,756,491 | |
Total debt | $ 3,299,802 | $ 2,926,030 |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 10, 2020 | Jun. 05, 2019 | Apr. 16, 2015 | Mar. 05, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | $ 2,110 | $ 5,294 | ||||
Facility Amount | $ 760,000 | 295,000 | ||||
Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.875% | 5.875% | ||||
Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.625% | 5.625% | ||||
Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.875% | 5.875% | ||||
Senior Notes | 6.625% Senior Notes Due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 6.625% | 6.625% | ||||
Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.75% | |||||
Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.125% | |||||
Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Facility Amount | $ 800,000 | |||||
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Facility Amount | 100,000 | |||||
Carrying Value | Significant Other Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | 467,534 | 201,177 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Debt | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
MBSs | (449) | (1,847) | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 413,887 | 127,289 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 404,386 | 348,741 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | $800 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 0 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | $100 Million Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 31,529 | 0 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 349,267 | 348,700 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 348,834 | 348,295 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 495,757 | 494,974 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 317,718 | 320,915 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 446,186 | 445,555 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 494,560 | 493,926 | ||||
Carrying Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | 2,110 | 5,294 | ||||
Carrying Value | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity Security Investment | 6,400 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | 467,534 | 201,177 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Debt | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
MBSs | (449) | (1,847) | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 413,887 | 127,289 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 404,386 | 348,741 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | $800 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | $100 Million Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 31,529 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 365,890 | 371,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 372,750 | 375,830 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 560,000 | 566,650 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 315,750 | 324,240 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 502,875 | 509,625 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 550,000 | 560,000 | ||||
Fair Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | 2,110 | 5,294 | ||||
Fair Value | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity Security Investment | $ 6,400 | $ 0 |
FAIR VALUE DISCLOSURES - Summ_2
FAIR VALUE DISCLOSURES - Summary of Assets Measure on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory held for sale | $ 3,895,681 | $ 3,862,785 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | $ 22,556 |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 73,087 | $ 11,621 | $ 54,372 |
State | 23,493 | 11,733 | 9,839 |
Current tax provision | 96,580 | 23,354 | 64,211 |
Deferred: | |||
Federal | 75,044 | 45,594 | (1,811) |
State | 9,117 | 5,642 | 4,958 |
Deferred tax provision | 84,161 | 51,236 | 3,147 |
Total income tax provision | $ 180,741 | $ 74,590 | $ 67,358 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes (net of federal benefit) | 3.80% | 4.60% | 3.90% |
Non-controlling interest | (0.60%) | 0.00% | 0.00% |
Uncertain tax positions | (0.20%) | (0.10%) | (0.20%) |
Deferred tax adjustments | 0.00% | 0.00% | 0.20% |
Energy tax credits | (1.40%) | (2.90%) | (4.60%) |
Disallowed compensation expense | 0.20% | 0.90% | 0.30% |
Disallowed M&A expenses | 0.00% | 2.10% | 0.00% |
Impact of CARES Act | (1.30%) | (2.20%) | 0.00% |
Other | (0.60%) | (0.40%) | 0.30% |
Effective Rate | 20.90% | 23.00% | 20.90% |
INCOME TAXES - Summary of Compo
INCOME TAXES - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Real estate inventory | $ 18,300 | $ 91,499 |
Accruals and reserves | 56,244 | 47,536 |
Other | 11,739 | 22,914 |
Net operating losses | 76,119 | 87,940 |
Capital loss carryforward | 36,054 | 36,054 |
Total deferred tax assets | 198,456 | 285,943 |
Deferred tax liabilities: | ||
Real estate inventory, intangibles, other | (11,162) | (11,811) |
Valuation allowance | (36,054) | (36,054) |
Total net deferred tax assets | $ 151,240 | $ 238,078 |
INCOME TAXES - Schedule of Re_2
INCOME TAXES - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Beginning of the period | $ 5,762,000 | $ 6,158,000 | $ 7,391,000 |
Increases from current year acquisitions | 0 | 0 | 0 |
Increases of prior year items | 0 | 0 | 15,000 |
Settlement with tax authorities | 0 | 0 | (977,000) |
Decreased for tax positions of prior years | (4,140,000) | 0 | (76,000) |
Decreased due to statute of limitations | (1,622,000) | (396,000) | (195,000) |
End of the period | $ 0 | $ 5,762,000 | $ 6,158,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | ||||
Effective rate | 20.90% | 23.00% | 20.90% | |
Deferred tax assets, valuation allowance | $ 36,054,000 | $ 36,054,000 | ||
Recognized potential penalties and interest expense on uncertain tax positions | 0 | 500,000 | $ 600,000 | |
Unrecognized tax benefits | 0 | $ 5,762,000 | $ 6,158,000 | $ 7,391,000 |
Federal NOL Carryforwards | ||||
Income Tax [Line Items] | ||||
NOL carryforwards | $ 228,000,000 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 23, 2022 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 13, 2021 | Feb. 06, 2020 |
Class of Warrant or Right [Line Items] | |||||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |||||
Preferred stock, shares authorized (in shares) | 50,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.00001 | ||||||
Stock repurchase program, authorized amount | $ 250,000 | ||||||
Repurchase of common stock (in shares) | 9,918,104 | 5,941,324 | |||||
Treasury stock, value, acquired, cost method | $ 281,420 | $ 103,332 | $ 157,437 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 230,413 | $ 86,831 | $ 0 | ||||
Subsequent event | |||||||
Class of Warrant or Right [Line Items] | |||||||
Repurchase of common stock (in shares) | 731,000 | ||||||
Treasury stock, value, acquired, cost method | $ 22,300 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 208,100 | ||||||
Stock Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants issued (in shares) | 1,704,205 | ||||||
Exercise price (in dollars per share) | $ 19.12 | ||||||
Common stock surrendered in connection with warrant exercise (in shares) | 1,000,000 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 13, 2021 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | ||||
Amount available for repurchase - beginning of period | $ 86,831 | $ 0 | ||
Additional amount authorized for repurchase | 500,000 | 200,000 | ||
Unused forfeited as part of authorization renewal | (74,998) | 0 | ||
Amount repurchased at cost, 9,918,104 and 5,941,324 shares as of December 31, 2021 and December 31, 2020, respectively | (281,420) | (103,332) | $ (157,437) | |
Amount available for repurchase — end of period | $ 230,413 | $ 86,831 | $ 0 | |
Repurchase of common stock (in shares) | 9,918,104 | 5,941,324 | ||
Stock repurchase program, authorized amount | $ 250,000 | |||
Previously Reported | ||||
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | ||||
Amount available for repurchase - beginning of period | $ 96,668 | |||
Amount available for repurchase — end of period | $ 96,668 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate unamortized outstanding stock based compensation | $ 26.5 | $ 23.8 | $ 20.8 |
Aggregate intrinsic value exercised based on market price (in dollars per share) | $ 34.96 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
2013 Omnibus Equity Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant (in shares) | 5,404,025 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 19,943 | $ 27,023 | $ 14,763 |
Settlement of awards | 5,100 | ||
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | 4,087 | 7,085 | 3,774 |
Non-performance Restricted Stock Units (RSUs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 15,856 | $ 19,938 | $ 10,989 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options, Number of Options | |||
Outstanding, Beginning balance (in shares) | 3,772,775 | 3,339,244 | 3,239,995 |
Granted (in shares) | 712,910 | 1,139,583 | 997,924 |
Exercised (in shares) | (1,204,283) | (551,845) | (765,781) |
Cancelled (in shares) | (115,790) | (154,207) | (132,894) |
Outstanding, Ending balance (in shares) | 3,165,612 | 3,772,775 | 3,339,244 |
Options exercisable (in shares) | 1,407,618 | 1,934,328 | 1,400,974 |
Stock Options, Weighted Average Exercise Price | |||
Outstanding, Beginning balance (in dollars per share) | $ 19.73 | $ 18.98 | $ 18.87 |
Granted (in dollars per share) | 28.64 | 21.95 | 18.15 |
Exercised (in dollars per share) | 19.37 | 17.91 | 17.29 |
Cancelled (in dollars per share) | 21.53 | 20.93 | 19.86 |
Outstanding, Ending balance (in dollars per share) | 22.02 | 19.73 | 18.98 |
Weighted Average Exercise Price, options exercisable (in dollars per share) | $ 19.12 | $ 18.73 | $ 19.09 |
Unamortized value of unvested stock options (net of estimated forfeitures) (in dollars per share) | $ 7,515 | $ 6,847 | $ 6,759 |
Weighted-average period (in years) that expense is expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Weighted-average remaining contractual (in years) life for options outstanding | 7 years | 6 years 7 months 6 days | 6 years 10 months 24 days |
Weighted-average remaining contractual life (in years) for options exercisable | 5 years 3 months 18 days | 4 years 10 months 24 days | 5 years 1 month 6 days |
William Lyon Homes | |||
Stock Options, Number of Options | |||
Granted (in shares) | 309,277 | ||
Exercised (in shares) | (94,861) | ||
Options exercisable (in shares) | 214,416 |
STOCK BASED COMPENSATION - Su_3
STOCK BASED COMPENSATION - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 24.65% | 24.19% | 19.33% |
Risk-free interest rate | 0.75% | 1.19% | 2.49% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average fair value of options granted during the period (in dollars per share) | $ 7.45 | $ 5.89 | $ 4.69 |
STOCK BASED COMPENSATION - Su_4
STOCK BASED COMPENSATION - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | |||
Aggregate intrinsic value of options outstanding | $ 38,190 | $ 21,399 | $ 10,935 |
Aggregate intrinsic value of options exercisable | $ 18,897 | $ 11,903 | $ 4,283 |
STOCK BASED COMPENSATION - Su_5
STOCK BASED COMPENSATION - Summary of Activity of Performance Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PRSU Activity, Number of Awards | |||
Weighted-average period expense is expected to be recognized (in years) | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Performance Restricted Stock Units | |||
PRSU Activity, Number of Awards | |||
Beginning balance (in shares) | 930,633 | 998,639 | 1,155,723 |
Granted (in shares) | 289,308 | 295,405 | 416,874 |
Vested (in shares) | (275,286) | (319,732) | (511,984) |
Forfeited (in shares) | (18,462) | (43,679) | (61,974) |
Ending balance (in shares) | 926,193 | 930,633 | 998,639 |
PRSU expense recognized | $ 8,125 | $ 5,692 | $ 5,866 |
Unamortized value of PRSUs | $ 8,419 | $ 7,848 | $ 7,912 |
Weighted-average period expense is expected to be recognized (in years) | 1 year 9 months 18 days | 1 year 9 months 18 days | 1 year 9 months 18 days |
STOCK BASED COMPENSATION - Su_6
STOCK BASED COMPENSATION - Summary of Activity of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Weighted-average period expense is expected to be recognized (in years) | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Non-performance Restricted Stock Units (RSUs) | |||
RSU Activity, Number of Awards | |||
Beginning balance (in shares) | 881,272 | 709,754 | 769,641 |
Granted (in shares) | 370,762 | 1,228,451 | 299,481 |
Vested (in shares) | (390,358) | (1,004,450) | (320,701) |
Forfeited (in shares) | (57,211) | (52,483) | (38,667) |
Ending balance (in shares) | 804,465 | 881,272 | 709,754 |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Outstanding, Beginning balance (in dollars per share) | $ 21.33 | $ 18.11 | $ 16.73 |
Granted (in dollars per share) | 28.62 | 23.07 | 18.42 |
Vested (in dollars per share) | 21.28 | 16.83 | 15.25 |
Forfeited (in dollars per share) | 23.68 | 19.65 | 16.91 |
Outstanding, Ending balance (in dollars per share) | $ 24.73 | $ 21.33 | $ 18.11 |
RSU expense recognized | $ 7,731 | $ 14,246 | $ 5,123 |
Unamortized value of RSUs | $ 10,561 | $ 9,116 | $ 6,176 |
Weighted-average period expense is expected to be recognized (in years) | 1 year 8 months 12 days | 1 year 9 months 18 days | 1 year 8 months 12 days |
Non-performance Restricted Stock Units (RSUs) | William Lyon Homes | |||
RSU Activity, Number of Awards | |||
Granted (in shares) | 791,189 | ||
Vested (in shares) | (684,078) | ||
RSU Activity, Weighted Average Grant Date Fair Value | |||
RSU expense recognized | $ 7,100 | ||
Unamortized value of RSUs | $ 1,000 |
OPERATING AND REPORTING SEGME_3
OPERATING AND REPORTING SEGMENTS - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | $ 7,501,265 | $ 6,129,320 | $ 4,762,059 |
Gross margin | 1,547,881 | 1,044,219 | 824,090 |
Selling, general and administrative expense | (668,342) | (572,375) | (490,271) |
Equity in income/(loss) of unconsolidated entities | 11,130 | 11,176 | 9,509 |
Interest and other expense, net | (27,561) | (148,656) | (15,250) |
Loss on extinguishment of debt | 0 | (10,247) | (5,806) |
Income before income taxes | 863,108 | 324,117 | 322,272 |
Corporate and Unallocated | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 44,392 | 24,717 | 0 |
Gross margin | 11,367 | (866) | 0 |
Selling, general and administrative expense | (162,092) | (113,675) | (104,772) |
Equity in income/(loss) of unconsolidated entities | (10) | 0 | 141 |
Interest and other expense, net | (16,307) | (97,040) | (5,408) |
Loss on extinguishment of debt | (10,247) | (5,806) | |
Income before income taxes | (167,042) | (221,828) | (115,845) |
East | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 2,423,948 | 1,919,247 | 1,950,742 |
Gross margin | 522,721 | 319,361 | 307,893 |
Selling, general and administrative expense | (184,744) | (160,222) | (168,928) |
Equity in income/(loss) of unconsolidated entities | 0 | 0 | 0 |
Interest and other expense, net | (923) | (574) | (5,545) |
Loss on extinguishment of debt | 0 | 0 | |
Income before income taxes | 337,054 | 158,565 | 133,420 |
Central | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 1,741,689 | 1,633,428 | 1,334,389 |
Gross margin | 336,896 | 306,158 | 187,957 |
Selling, general and administrative expense | (133,991) | (132,796) | (121,962) |
Equity in income/(loss) of unconsolidated entities | 306 | 23 | (215) |
Interest and other expense, net | (3,103) | (4,471) | (1,024) |
Loss on extinguishment of debt | 0 | 0 | |
Income before income taxes | 200,108 | 168,914 | 64,756 |
West | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 3,126,621 | 2,396,101 | 1,384,113 |
Gross margin | 614,130 | 352,648 | 286,511 |
Selling, general and administrative expense | (187,515) | (165,682) | (94,609) |
Equity in income/(loss) of unconsolidated entities | 2,190 | 683 | 3,562 |
Interest and other expense, net | (7,228) | (37,600) | (3,273) |
Loss on extinguishment of debt | 0 | 0 | |
Income before income taxes | 421,577 | 150,049 | 192,191 |
Financial Services | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 164,615 | 155,827 | 92,815 |
Gross margin | 62,767 | 66,918 | 41,729 |
Selling, general and administrative expense | 0 | 0 | 0 |
Equity in income/(loss) of unconsolidated entities | 8,644 | 10,470 | 6,021 |
Interest and other expense, net | 0 | (8,971) | 0 |
Loss on extinguishment of debt | 0 | 0 | |
Income before income taxes | $ 71,411 | $ 68,417 | $ 47,750 |
OPERATING AND REPORTING SEGME_4
OPERATING AND REPORTING SEGMENTS - Assets from Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | $ 5,729,056 | $ 5,458,051 | $ 4,026,354 |
Investments in unconsolidated entities | 171,406 | 127,955 | 128,759 |
Other assets | 2,827,315 | 2,151,989 | 1,090,573 |
Total assets | 8,727,777 | 7,737,995 | 5,245,686 |
Corporate and Unallocated | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 0 | 10 | 242 |
Other assets | 1,261,530 | 926,130 | 485,252 |
Total assets | 1,261,530 | 926,140 | 485,494 |
East | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,781,948 | 1,712,852 | 1,841,904 |
Investments in unconsolidated entities | 0 | 0 | 0 |
Other assets | 196,126 | 170,382 | 165,777 |
Total assets | 1,978,074 | 1,883,234 | 2,007,681 |
Central | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,282,024 | 1,176,604 | 965,039 |
Investments in unconsolidated entities | 87,600 | 58,052 | 37,506 |
Other assets | 221,906 | 192,981 | 121,724 |
Total assets | 1,591,530 | 1,427,637 | 1,124,269 |
West | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 2,665,084 | 2,568,595 | 1,219,411 |
Investments in unconsolidated entities | 79,531 | 65,395 | 86,996 |
Other assets | 588,520 | 578,231 | 60,060 |
Total assets | 3,333,135 | 3,212,221 | 1,366,467 |
Financial Services | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 4,275 | 4,498 | 4,015 |
Other assets | 559,233 | 284,265 | 257,760 |
Total assets | $ 563,508 | $ 288,763 | $ 261,775 |
OPERATING AND REPORTING SEGME_5
OPERATING AND REPORTING SEGMENTS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) - USD ($) | Dec. 31, 2021 | Nov. 02, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | |||
Outstanding letters of credit | $ 1,200,000,000 | $ 1,000,000,000 | |
Aggregate purchase price | 1,300,000,000 | 800,000,000 | |
Legal accruals | $ 21,700,000 | $ 23,500,000 | |
Maximum | |||
Loss Contingencies [Line Items] | |||
Loss contingency | $ 35,000,000 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Loss contingency | $ 0 |
MORTGAGE HEDGING ACTIVITIES (De
MORTGAGE HEDGING ACTIVITIES (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Fair Value | $ 1,661 | $ 3,447 |
Total commitments to originate loans | 173,700 | 290,300 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 2,110 | 5,294 |
Notional amount | 158,299 | 260,954 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | (449) | (1,847) |
Notional amount | $ 407,000 | $ 376,000 |
Minimum | ||
Derivative [Line Items] | ||
Derivative term | 30 days | |
Maximum | ||
Derivative [Line Items] | ||
Derivative term | 60 days |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Jun. 29, 2020 | Feb. 06, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 0 | $ 279,048 | $ 0 | ||
Issuance of common stock in connection with business acquisition | 0 | $ 797,970 | $ 0 | ||
William Lyon Homes | |||||
Business Acquisition [Line Items] | |||||
Business combination, total purchase consideration | $ 1,100,000 | ||||
Payments to acquire business | $ 157,800 | ||||
Common stock issued in merger consideration (in shares) | 28.3 | ||||
Issuance of common stock in connection with business acquisition | $ 773,900 | ||||
Business combination, liabilities incurred | 160,800 | ||||
Business acquisition, conversion of equity instruments | $ 24,100 | ||||
Revenue of acquiree since acquisition date | 1,600,000 | ||||
Earnings of acquiree since acquisition date | $ 48,000 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Fair Value of Assets Acquired and Liabilities Created (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 06, 2020 |
Assets acquired | |||
Goodwill | $ 663,197 | $ 663,197 | |
William Lyon Homes | |||
Assets acquired | |||
Real estate inventory | $ 2,069,323 | ||
Prepaid expenses and other assets | 265,729 | ||
Deferred tax assets, net | 148,193 | ||
Goodwill | 513,768 | ||
Total assets | 2,997,013 | ||
Less liabilities assumed | |||
Accrued expenses and other liabilities | 457,365 | ||
Total Debt | 1,306,578 | ||
Non-controlling interest | 116,157 | ||
Net assets acquired | 1,116,913 | ||
William Lyon Homes | Central | |||
Assets acquired | |||
Goodwill | 48,200 | ||
William Lyon Homes | West | |||
Assets acquired | |||
Goodwill | $ 465,600 |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Results (Details) - William Lyon Homes - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Net income available to TMHC | $ 302,047 | $ 140,453 |
Weighted average shares - Basic (in shares) | 131,011 | 135,661 |
Weighted average shares - Diluted (in shares) | 132,370 | 136,952 |
Earnings per share - Basic (in dollars per share) | $ 2.31 | $ 1.04 |
Earnings per share - Diluted (in dollars per share) | $ 2.28 | $ 1.03 |
Joint Ventures | ||
Business Acquisition [Line Items] | ||
Total revenue | $ 6,216,418 | $ 6,751,846 |
Net income before allocation to non-controlling interests | 309,022 | 171,114 |
Net loss attributable to non-controlling interests — joint ventures | $ 6,975 | $ 30,661 |