Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, Suite 2000 | |
Entity Address, Postal Zip Code | 85251 | |
Entity Address, City or Town | Scottsdale, | |
Entity Address, State or Province | AZ | |
City Area Code | 480 | |
Local Phone Number | 840-8100 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | TMHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 113,659,175 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001562476 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 378,340 | $ 832,821 |
Restricted cash | 953 | 3,519 |
Total cash, cash equivalents, and restricted cash | 379,293 | 836,340 |
Owned inventory | 5,975,551 | 5,444,207 |
Consolidated real estate not owned | 70,817 | 55,314 |
Total real estate inventory | 6,046,368 | 5,499,521 |
Land deposits | 278,314 | 229,535 |
Mortgage loans held for sale | 203,238 | 467,534 |
Derivative assets | 4,918 | 2,110 |
Lease right of use assets | 82,876 | 85,863 |
Prepaid expenses and other assets, net | 157,252 | 314,986 |
Other receivables, net | 171,737 | 150,864 |
Investments in unconsolidated entities | 291,560 | 171,406 |
Deferred tax assets, net | 151,240 | 151,240 |
Property and equipment, net | 220,230 | 155,181 |
Goodwill | 663,197 | 663,197 |
Total assets | 8,650,223 | 8,727,777 |
Liabilities | ||
Accounts payable | 291,337 | 253,348 |
Accrued expenses and other liabilities | 431,478 | 525,209 |
Lease liabilities | 91,872 | 96,172 |
Income taxes payable | 1,855 | 0 |
Customer deposits | 579,945 | 485,705 |
Estimated development liabilities | 38,280 | 38,923 |
Senior notes, net | 2,173,998 | 2,452,322 |
Loans payable and other borrowings | 447,191 | 404,386 |
Revolving credit facility borrowings | 150,000 | 31,529 |
Mortgage warehouse borrowings | 179,555 | 413,887 |
Liabilities attributable to consolidated real estate not owned | 70,817 | 55,314 |
Total liabilities | 4,456,328 | 4,756,795 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
Stockholders’ Equity | ||
Total stockholders’ equity | 4,193,895 | 3,970,982 |
Total liabilities and stockholders’ equity | $ 8,650,223 | $ 8,727,777 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | $ 1,995,023 | $ 1,719,280 | $ 3,698,147 | $ 3,137,092 |
Total cost of revenue | 1,453,543 | 1,390,577 | 2,763,539 | 2,533,948 |
Gross margin | 541,480 | 328,703 | 934,608 | 603,144 |
Sales, commissions and other marketing costs | 96,135 | 97,560 | 185,258 | 183,512 |
General and administrative expenses | 69,407 | 69,997 | 137,549 | 131,550 |
Net loss/(income) from unconsolidated entities | 3,637 | (2,126) | 1,806 | (7,787) |
Interest expense/(income), net | 5,189 | 3 | 9,441 | (116) |
Other (income)/expense, net | (11,014) | 45 | (10,472) | 1,020 |
Gain on extinguishment of debt, net | (13,471) | 0 | (13,471) | 0 |
Income before income taxes | 391,597 | 163,224 | 624,497 | 294,965 |
Income tax provision | 98,443 | 38,469 | 152,882 | 67,767 |
Net income before allocation to non-controlling interests | 293,154 | 124,755 | 471,615 | 227,198 |
Net income attributable to non-controlling interests | (2,167) | (608) | (3,925) | (5,030) |
Net income available to Taylor Morrison Home Corporation | $ 290,987 | $ 124,147 | $ 467,690 | $ 222,168 |
Earnings Per Share | ||||
Basic (in dollars per share) | $ 2.47 | $ 0.97 | $ 3.91 | $ 1.73 |
Diluted (in dollars per share) | $ 2.45 | $ 0.95 | $ 3.87 | $ 1.70 |
Weighted average number of shares of common stock: | ||||
Basic (in shares) | 117,932 | 128,440 | 119,550 | 128,661 |
Diluted (in shares) | 118,931 | 130,259 | 120,796 | 130,766 |
Home closings | ||||
Revenues | $ 1,883,020 | $ 1,644,380 | $ 3,527,429 | $ 3,007,809 |
Total cost of revenue | 1,381,610 | 1,331,041 | 2,646,584 | 2,441,283 |
Land closings | ||||
Revenues | 36,816 | 32,057 | 52,426 | 36,946 |
Total cost of revenue | 24,204 | 28,138 | 38,568 | 32,165 |
Financial Services | ||||
Revenues | 35,471 | 37,392 | 70,670 | 81,457 |
Total cost of revenue | 21,483 | 25,935 | 45,697 | 49,934 |
Amenity and other | ||||
Revenues | 39,716 | 5,451 | 47,622 | 10,880 |
Total cost of revenue | $ 26,246 | $ 5,463 | $ 32,690 | $ 10,566 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Comprehensive Income before non-controlling interests, net of tax | $ 293,154 | $ 124,755 | $ 471,615 | $ 227,198 |
Comprehensive income attributable to non-controlling interests | (2,167) | (608) | (3,925) | (5,030) |
Comprehensive income available to Taylor Morrison Home Corporation | $ 290,987 | $ 124,147 | $ 467,690 | $ 222,168 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest | Non-controlling Interest Corporate Joint Venture | |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 129,476,914 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 3,593,750 | $ 1 | $ 2,926,773 | $ (446,856) | $ 1,025,789 | $ (1,166) | $ 89,209 | ||
Balance, end of period, treasury shares (in shares) at Jun. 30, 2021 | 32,167,192 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 227,198 | 222,168 | 5,030 | ||||||
Other comprehensive income | 0 | ||||||||
Exercise of stock options (in shares) | 631,626 | ||||||||
Exercise of stock options | 12,434 | 12,434 | |||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 380,009 | |||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (4,857) | (4,857) | ||||||
Warrant exercises (in shares) | 1,704,205 | ||||||||
Warrant exercises | $ 32,584 | 32,584 | |||||||
Repurchase of common stock (in shares) | (5,256,737) | (5,256,737) | (5,256,737) | ||||||
Repurchase of common stock | $ (145,172) | $ (145,172) | |||||||
Common stock surrendered in connection with warrant exercise (in shares) | (1,025,699) | 1,025,699 | |||||||
Common stock surrendered in connection with warrant exercises | (32,587) | $ (32,587) | |||||||
Stock compensation expense | 10,335 | 10,335 | |||||||
Distributions to non-controlling interests of consolidated joint ventures | (24,844) | (24,844) | |||||||
Changes in non-controlling interests of consolidated joint ventures | 8 | 8 | |||||||
Balance, end of period (in shares) at Jun. 30, 2021 | 125,910,318 | ||||||||
Balance, end of period at Jun. 30, 2021 | 3,668,849 | $ 1 | 2,977,269 | $ (624,615) | 1,247,957 | (1,166) | $ 69,403 | ||
Balance, beginning of period, treasury shares (in shares) at Dec. 31, 2020 | 25,884,756 | ||||||||
Balance, beginning of period (in shares) at Mar. 31, 2021 | 128,736,493 | ||||||||
Balance, beginning of period at Mar. 31, 2021 | 3,655,564 | $ 1 | 2,934,111 | $ (485,274) | 1,123,810 | (1,166) | 84,082 | ||
Balance, end of period, treasury shares (in shares) at Jun. 30, 2021 | 32,167,192 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 124,755 | 124,147 | 608 | ||||||
Exercise of stock options (in shares) | 281,951 | ||||||||
Exercise of stock options | 6,113 | 6,113 | |||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 22,796 | |||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (193) | (193) | ||||||
Warrant exercises (in shares) | 1,704,205 | ||||||||
Warrant exercises | $ 32,584 | 32,584 | |||||||
Repurchase of common stock (in shares) | (3,809,428) | (3,809,428) | (3,809,428) | ||||||
Repurchase of common stock | $ (106,754) | $ (106,754) | |||||||
Common stock surrendered in connection with warrant exercise (in shares) | (1,025,699) | 1,025,699 | |||||||
Common stock surrendered in connection with warrant exercises | (32,587) | $ (32,587) | |||||||
Stock compensation expense | 4,654 | 4,654 | |||||||
Distributions to non-controlling interests of consolidated joint ventures | (16,883) | (16,883) | |||||||
Changes in non-controlling interests of consolidated joint ventures | 1,596 | 1,596 | |||||||
Balance, end of period (in shares) at Jun. 30, 2021 | 125,910,318 | ||||||||
Balance, end of period at Jun. 30, 2021 | 3,668,849 | $ 1 | 2,977,269 | $ (624,615) | 1,247,957 | (1,166) | 69,403 | ||
Balance, beginning of period, treasury shares (in shares) at Mar. 31, 2021 | 27,332,065 | ||||||||
Balance, beginning of period (in shares) at Dec. 31, 2021 | 121,833,649 | ||||||||
Balance, beginning of period at Dec. 31, 2021 | 3,970,982 | $ 1 | 2,997,211 | $ (760,863) | 1,688,815 | 689 | 45,129 | ||
Balance, end of period, treasury shares (in shares) at Jun. 30, 2022 | 45,556,244 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 471,615 | 467,690 | 3,925 | ||||||
Exercise of stock options (in shares) | 131,989 | ||||||||
Exercise of stock options | 2,912 | 2,912 | |||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 402,772 | |||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | $ (3,645) | (3,645) | ||||||
Repurchase of common stock (in shares) | (8,727,685) | (8,727,685) | (8,727,685) | ||||||
Repurchase of common stock | $ (230,413) | $ (230,413) | |||||||
Common stock surrendered in connection with warrant exercises | 0 | ||||||||
Stock compensation expense | 12,141 | 12,141 | |||||||
Distributions to non-controlling interests of consolidated joint ventures | (28,928) | (28,928) | |||||||
Changes in non-controlling interests of consolidated joint ventures | (769) | $ (769) | |||||||
Balance, end of period (in shares) at Jun. 30, 2022 | 113,640,725 | ||||||||
Balance, end of period at Jun. 30, 2022 | 4,193,895 | $ 1 | 3,008,619 | $ (991,276) | 2,156,505 | 689 | 19,357 | ||
Balance, beginning of period, treasury shares (in shares) at Dec. 31, 2021 | 36,828,559 | ||||||||
Balance, beginning of period (in shares) at Mar. 31, 2022 | 120,365,390 | ||||||||
Balance, beginning of period at Mar. 31, 2022 | 4,094,798 | $ 1 | 3,002,809 | $ (818,892) | 1,865,518 | 689 | 44,673 | ||
Balance, end of period, treasury shares (in shares) at Jun. 30, 2022 | 45,556,244 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 293,154 | 290,987 | 2,167 | ||||||
Exercise of stock options (in shares) | 30,913 | ||||||||
Exercise of stock options | 556 | 556 | |||||||
Issuance of restricted stock units, net of shares withheld for tax (in shares) | [1] | 23,920 | |||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | $ (24) | (24) | ||||||
Repurchase of common stock (in shares) | (6,779,498) | (6,779,498) | (6,779,498) | ||||||
Repurchase of common stock | $ (172,384) | $ (172,384) | |||||||
Stock compensation expense | 5,278 | 5,278 | |||||||
Distributions to non-controlling interests of consolidated joint ventures | (27,176) | (27,176) | |||||||
Changes in non-controlling interests of consolidated joint ventures | (307) | (307) | |||||||
Balance, end of period (in shares) at Jun. 30, 2022 | 113,640,725 | ||||||||
Balance, end of period at Jun. 30, 2022 | $ 4,193,895 | $ 1 | $ 3,008,619 | $ (991,276) | $ 2,156,505 | $ 689 | $ 19,357 | ||
Balance, beginning of period, treasury shares (in shares) at Mar. 31, 2022 | 38,776,746 | ||||||||
[1]Dollar amount represents the value of shares withheld for taxes. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income before allocation to non-controlling interests | $ 471,615 | $ 227,198 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Net loss/(income) from unconsolidated entities | 1,806 | (7,787) |
Stock compensation expense | 12,141 | 10,335 |
Gain on extinguishment of debt, net | (13,471) | 0 |
Gain on land transfers | (13,700) | 0 |
Distributions of earnings from unconsolidated entities | 4,252 | 7,210 |
Depreciation and amortization | 17,758 | 19,798 |
Operating lease expense | 13,632 | 7,958 |
Debt issuance costs amortization | 544 | 236 |
Change in Urban Form assets due to sale | 11,675 | 0 |
Changes in operating assets and liabilities: | ||
Real estate inventory and land deposits | (667,846) | (483,490) |
Mortgages held for sale, prepaid expenses and other assets | 305,465 | (149,748) |
Customer deposits | 94,240 | 170,055 |
Accounts payable, accrued expenses and other liabilities | (44,476) | 94,805 |
Income taxes payable | 1,855 | 5,836 |
Net cash provided by/(used in) operating activities | 195,490 | (97,594) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (12,801) | (20,523) |
Distributions of capital from unconsolidated entities | 86,576 | 13,132 |
Investments of capital into unconsolidated entities | (69,582) | (14,643) |
Net cash provided by/(used in) investing activities | 4,193 | (22,034) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in loans payable and other borrowings | 29,877 | 72,295 |
Repayments on loans payable and other borrowings | (45,226) | (44,231) |
Borrowings on revolving credit facilities | 182,548 | 0 |
Repayments on revolving credit facilities | (64,077) | 0 |
Borrowings on mortgage warehouse facilities | 1,193,232 | 1,499,258 |
Repayments on mortgage warehouse facilities | (1,427,564) | (1,411,317) |
Repayments on senior notes | (264,111) | 0 |
Proceeds from stock option exercises | 2,912 | 12,434 |
Payment of principal portion of finance lease | (1,335) | (1,325) |
Repurchase of common stock, net | (230,413) | (145,172) |
Payment of taxes related to net share settlement of equity awards | (3,645) | (5,483) |
Cash and distributions to non-controlling interests of consolidated joint ventures, net | (28,928) | (22,819) |
Net cash used in financing activities | (656,730) | (46,360) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (457,047) | (165,988) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 836,340 | 534,109 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 379,293 | 368,121 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income tax payments | (112,167) | (61,404) |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Change in loans payable issued to sellers in connection with land purchase contracts | 159,637 | 121,380 |
Change in inventory not owned | 15,503 | (59,056) |
Investments of land in unconsolidated joint ventures, net | 143,206 | 0 |
Net non-cash distributions from non-controlling interests | 0 | (2,025) |
Common stock surrendered in connection with warrant exercises | 0 | 32,587 |
Common stock issued in connection with warrant exercises | $ 0 | $ (32,584) |
BUSINESS
BUSINESS | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS Description of the Business — Taylor Morrison Home Corporation “TMHC” through its subsidiaries (together with TMHC referred to herein as “we,” “our,” “the Company” and “us”), owns and operates a residential homebuilding business and is a 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 brand names. 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 | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year. We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810 , Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the Condensed Consolidated Statements of Operations. Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements and these accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, 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. 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. We did not perform an impairment test during the second quarter of 2022 as indicators of impairment were not present. 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 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 generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three and six months ended June 30, 2022 and 2021, no impairment charges were recorded. 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. As of June 30, 2022 and December 31, 2021, we had no inactive projects. In the ordinary course of business, we enter into various option agreements to acquire lots in staged takedowns which may require a significant cash deposit. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots are not purchased. Real estate not owned under these agreements is reflected in Consolidated real estate not owned with a corresponding liability in Liabilities attributable to consolidated real estate not owned in the Condensed Consolidated Balance Sheets. 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 Condensed Consolidated Statements 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 an ownership interest in these entities or title to their assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings. Investments in Consolidated and Unconsolidated Entities Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risks 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 will consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Condensed 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 Net loss/income from 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 material impairment charges related to the investments in unconsolidated entities for the three and six months ended June 30, 2022 and 2021. Revenue Recognition — We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) . The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we 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 (or develop and deliver land). 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, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, 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 the club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets 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 are realized and unrealized gains and losses from hedging instruments. 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. However, we do not believe the effect of adopting will have a material impact. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of Common Stock were exercised or settled. The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income available to TMHC $ 290,987 $ 124,147 $ 467,690 $ 222,168 Denominator: Weighted average shares – basic 117,932 128,440 119,550 128,661 Restricted stock units 513 801 667 892 Stock Options 486 824 579 834 Warrants — 194 — 379 Weighted average shares – diluted 118,931 130,259 120,796 130,766 Earnings per common share – basic: Net income available to Taylor Morrison Home Corporation $ 2.47 $ 0.97 $ 3.91 $ 1.73 Earnings per common share – diluted: Net income available to Taylor Morrison Home Corporation $ 2.45 $ 0.95 $ 3.87 $ 1.70 The above calculations of weighted average shares exclude 2,176,897 and 1,462,766 anti-dilutive stock options and unvested restricted stock units (“RSUs”) for the three and six months ended June 30, 2022, respectively, and 1,133,597 and 982,940 anti-dilutive stock options and unvested RSUs for the three and six months ended June 30, 2021, respectively. |
REAL ESTATE INVENTORY AND LAND
REAL ESTATE INVENTORY AND LAND DEPOSITS | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE INVENTORY AND LAND DEPOSITS | REAL ESTATE INVENTORY AND LAND DEPOSITS Inventory consists of the following (in thousands): As of June 30, December 31, 2021 Real estate developed and under development $ 3,879,560 $ 3,895,681 Real estate held for development or held for sale (1) 72,411 70,305 Operating communities (2) 1,838,216 1,309,551 Capitalized interest 185,364 168,670 Total owned inventory 5,975,551 5,444,207 Consolidated real estate not owned 70,817 55,314 Total real estate inventory $ 6,046,368 $ 5,499,521 (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. The development status of our land inventory is as follows (dollars in thousands): As of June 30, 2022 December 31, 2021 Owned Lots Book Value of Land Owned Lots Book Value of Land Homebuilding owned lots Raw 3,801 $ 172,327 4,017 $ 178,952 Partially developed 24,641 1,619,200 24,636 1,568,967 Finished 19,939 2,145,750 19,360 2,119,128 Total homebuilding owned lots 48,381 3,937,277 48,013 3,867,047 Other assets (1) — 14,694 5,298 98,939 Total owned lots 48,381 $ 3,951,971 53,311 $ 3,965,986 (1) The remaining book value of land and development as of June 30, 2022 relates to parcels of commercial assets which are . excluded from the owned lots presented in the table. We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the creditors of the property owner generally only have recourse against us in the form of retaining any non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased. The table below presents a summary of our controlled lots for the following periods (dollars in thousands): As of June 30, 2022 December 31, 2021 Controlled Lots Purchase Price Land Deposit (1) Controlled Lots Purchase Price Land Deposit (1) Homebuilding controlled lots Land option purchase contracts 6,805 $ 390,373 $ 49,587 8,360 $ 507,161 $ 57,554 Land banking arrangements 7,173 1,063,392 157,433 5,731 749,813 117,721 Other controlled lots 19,972 1,243,367 61,241 14,671 1,338,284 38,505 Total controlled lots 33,950 $ 2,697,132 $ 268,261 28,762 $ 2,595,258 $ 213,780 (1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements. . In addition, at June 30, 2022 and December 31, 2021 we had refundable deposits of $10.1 million and $15.7 million respectively. Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest capitalized - beginning of period $ 177,969 $ 174,174 $ 168,670 $ 163,780 Interest incurred and capitalized 40,815 40,416 80,544 78,135 Interest amortized to cost of home closings (33,420) (34,070) (63,850) (61,395) Interest capitalized - end of period $ 185,364 $ 180,520 $ 185,364 $ 180,520 |
INVESTMENTS IN CONSOLIDATED AND
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
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, Build-to-Rent, and/or mortgage lending activities. The primary activity of the real estate development joint ventures is development and sale of lots to joint venture partners and/or unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer. During the quarter ended June 30, 2022, we transferred land at fair value as part of an investment in two new joint ventures with third parties. In accordance with ASC 606 this was considered a transfer as we have no continuing involvement and the joint venture obtained title, physical possession, maintains risks and rewards of the property and has accepted the property. Included in Other (income)/expense, net on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 is a $13.7 million gain related to these transfers and represents the difference between the fair value and carrying value of the land at the time of contribution. Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands): As of June 30, December 31, Assets: Real estate inventory $ 668,474 $ 414,687 Other assets 129,062 118,990 Total assets $ 797,536 $ 533,677 Liabilities and owners’ equity: Debt $ 130,284 $ 167,842 Other liabilities 23,169 16,245 Total liabilities 153,453 184,087 Owners’ equity: TMHC 291,560 171,406 Others 352,523 178,184 Total owners’ equity 644,083 349,590 Total liabilities and owners’ equity $ 797,536 $ 533,677 Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues $ 94,166 $ 29,745 $ 124,567 $ 79,626 Costs and expenses (94,086) (22,901) (119,016) (57,059) Income of unconsolidated entities $ 80 $ 6,844 $ 5,551 $ 22,567 TMHC’s share in (loss)/income of unconsolidated entities $ (3,637) $ 2,126 $ (1,806) $ 7,788 Distributions to TMHC from unconsolidated entities $ 88,770 $ 9,729 $ 90,828 $ 20,342 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 joint venture VIEs, and these entities are consolidated. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): As of As of Real estate development costs to complete $ 45,974 $ 49,833 Compensation and employee benefits 103,291 166,272 Self-insurance and warranty reserves 137,491 141,839 Interest payable 40,977 48,551 Property and sales taxes payable 25,053 29,384 Other accruals 78,692 89,330 Total accrued expenses and other liabilities $ 431,478 $ 525,209 Self-Insurance and Warranty Reserves – We accrue for the expected costs associated with our limited warranty, deductibles and self-insured amounts under our various insurance policies within Beneva Indemnity Company (“Beneva”), a wholly owned subsidiary. A summary of the changes in our reserves are as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Reserve - beginning of period $ 140,970 $ 116,406 $ 141,839 $ 118,116 Additions to reserves 23,519 18,394 32,403 30,784 Cost of claims incurred (27,729) (19,067) (40,202) (34,931) Changes in estimates to pre-existing reserves 731 388 3,451 2,152 Reserve - end of period $ 137,491 $ 116,121 $ 137,491 $ 116,121 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Total debt consists of the following (in thousands): As of June 30, 2022 December 31, 2021 Principal Unamortized Debt Issuance (Costs)/Premium Carrying Value Principal Unamortized Debt Issuance (Costs)/Premium Carrying Value 5.875% Senior Notes due 2023 $ 350,000 $ (449) $ 349,551 $ 350,000 $ (733) $ 349,267 5.625% Senior Notes due 2024 350,000 (897) 349,103 350,000 (1,166) 348,834 5.875% Senior Notes due 2027 500,000 (3,851) 496,149 500,000 (4,243) 495,757 6.625% Senior Notes due 2027 35,889 1,928 37,817 300,000 17,718 317,718 5.75% Senior Notes due 2028 450,000 (3,498) 446,502 450,000 (3,814) 446,186 5.125% Senior Notes due 2030 500,000 (5,124) 494,876 500,000 (5,440) 494,560 Senior Notes subtotal $ 2,185,889 $ (11,891) $ 2,173,998 $ 2,450,000 $ 2,322 $ 2,452,322 Loans payable and other borrowings 447,191 — 447,191 404,386 — 404,386 $800 Million Revolving Credit Facility (1) 150,000 — 150,000 — — — $100 Million Revolving Credit Facility (1) — — — 31,529 — 31,529 Mortgage warehouse borrowings 179,555 — 179,555 413,887 — 413,887 Total debt $ 2,962,635 $ (11,891) $ 2,950,744 $ 3,299,802 $ 2,322 $ 3,302,124 (1) The $800 Million Revolving Credit Agreement together with the $100 Million Revolving Credit Agreement, the “Credit Facilities” Debt Instruments Excluding the debt instruments discussed below, the terms governing all other debt instruments listed in the table above have not substantially changed from the year ended December 31, 2021. For information regarding such instruments, refer to Note 8 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021. As of June 30, 2022, we were in compliance with all of the covenants in the debt instruments listed in the table above. 6.625% Senior Notes due 2027 Following our exchange offer in the first quarter of 2020 (the “Exchange Offer”), whereby Taylor Morrison Communities, Inc (“TM Communities”) offered to exchange any and all outstanding senior notes issued by William Lyon Homes (“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 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the “Guarantors”). 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. On June 13, 2022, TM Communities announced a cash tender offer to purchase any and all of the $290.4 million outstanding aggregate principal amount of the 2027 6.625% TM Communities Notes (the “Tender Offer”), which expired July 12, 2022. As of June 30, 2022, TM Communities had purchased $264.1 million of the 2027 6.625% TM Communities Notes pursuant to the Tender Offer using cash on hand and borrowings on our $800 Million Revolving Credit Facility at a price equal to 100% of the principal amount, plus accrued and unpaid interest up to, but excluding, the settlement date. As a result of the Tender Offer, we recorded a total net gain on extinguishment of debt of approximately $13.5 million on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022. Subsequent to quarter end, TM Communities repurchased an additional $0.8 million of the 2027 6.625% TM Communities Notes at a price equal to 97% of the principal amount , resulting in a total of $265.0 million in aggregate principal amount of outstanding 2027 6.625% TM Communities Notes being repurchased pursuant to the Tender Offer. In connection with the Tender Offer, TM Communities also solicited consents from holders of the 2027 6.625% TM Communities Notes to amend the indenture governing such notes to, among other things, eliminate substantially all of the restrictive covenants of the indenture (the “Proposed Amendments”). As of June 27, 2022, TM Communities had received the requisite consents to effect the Proposed Amendments and, as a result, a supplemental indenture was executed to effect the Proposed Amendments, which became effective on June 29, 2022. The remaining 2027 6.625% Senior Notes mature on July 15, 2027. Prior to July 15, 2022, the remaining 2027 6.625% Senior Notes were redeemable 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 remaining 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 a 101.104% of principal (plus accrued and unpaid interest). On or after July 15, 2025, the remaining 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest). $800 Million Revolving Credit Facility On March 11, 2022, we amended our $800 Million Revolving Credit Facility, which extends the maturity date from February 6, 2024 to March 11, 2027 and includes reduced pricing upon meeting lower capitalization ratios. The facility remains guaranteed by the Guarantors. In connection with our Tender Offer, we have borrowed $150.0 million under our $800 Million Revolving Credit Facility which remained outstanding as of June 30, 2022. We had no outstanding borrowings as of December 31, 2021. As of June 30, 2022 and December 31, 2021, we had $3.0 million and $1.1 million, respectively, of unamortized debt issuance costs relating to our $800 Million Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the Condensed Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, we had $66.3 million and $58.7 million, respectively, of utilized letters of credit, resulting in $583.7 million and $741.3 million, respectively, of availability under the $800 Million Revolving Credit Facility. 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 $2.5 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 separate days during such fiscal quarter or (b) undrawn letters of credit (except to the extent cash collateralized) issued under the $800 Million Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the $800 Million Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than five The $800 Million Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, the payment of dividends and other distributions, asset dispositions and investments in entities that are not guarantors, limitations on prepayment of subordinated indebtedness and limitations on fundamental changes. The $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 June 30, 2022, we were in compliance with all of the covenants under the $800 Million Revolving Credit Facility. Mortgage Warehouse Borrowings The following is a summary of our mortgage warehouse borrowings (in thousands): As of June 30, 2022 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 4,538 $ 10,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 20,143 75,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,170 125,000 LIBOR + 1.95% On Demand Mortgage Loans and Restricted Cash Warehouse D 52,733 100,000 LIBOR + 1.65% November 20, 2022 Mortgage Loans Warehouse E 58,971 100,000 LIBOR + 1.50% On Demand Mortgage Loans Total $ 179,555 $ 410,000 As of December 31, 2021 Facility Amount Drawn Facility Amount 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 (1) Subject to certain interest rate floors. (2) The mortgage warehouse borrowings outstanding as of June 30, 2022 and December 31, 2021 were collateralized by $203.2 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage loans held for sale, and approximately $0.9 million and $3.5 million, respectively, of cash which is restricted cash on our Condensed Consolidated Balance Sheet. Loans Payable and Other Borrowings |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES ASC Topic 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 — Fair value is based on quoted prices for identical assets or liabilities in active markets. Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable. Level 3 — Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique. The fair value of our mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets and liabilities includes interest rate lock commitments (“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, the borrowings under our 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 June 30, 2022, when compared to December 31, 2021. The carrying value and fair value of our financial instruments are as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 203,238 $ 203,238 $ 467,534 $ 467,534 IRLCs 3 4,918 4,918 2,110 2,110 MBSs 2 (1,330) (1,330) (449) (449) Mortgage warehouse borrowings 2 179,555 179,555 413,887 413,887 Loans payable and other borrowings 2 447,191 447,191 404,386 404,386 5.875% Senior Notes due 2023 (1) 2 349,551 349,125 349,267 365,890 5.625% Senior Notes due 2024 (1) 2 349,103 340,270 348,834 372,750 5.875% Senior Notes due 2027 (1) 2 496,149 460,850 495,757 560,000 6.625% Senior Notes due 2027 (1) 2 37,817 34,378 317,718 315,750 5.75% Senior Notes due 2028 (1) 2 446,502 403,785 446,186 502,875 5.125% Senior Notes due 2030 (1) 2 494,876 415,250 494,560 550,000 $800 Million Revolving Credit Facility 2 150,000 150,000 — — $100 Million Revolving Credit Facility 2 — — 31,529 31,529 Equity Security Investment 1 2,180 2,180 6,400 6,400 (1) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate for the three and six months ended June 30, 2022 was 25.1% and 24.5%, respectively, compared to 23.6% and 23.0%, respectively, for the same periods in 2021. For both the three and six months ended June 30, 2022 and 2021 the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to stock-based compensation and special deductions and credits relating to prior homebuilding activities. At both June 30, 2022 and December 31, 2021, there were no unrecognized tax benefits. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
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. Stock Repurchase Program On May 31, 2022, the Board of Directors authorized a new stock repurchase program which permits the Company to repurchase up to $500.0 million of the Company's Common Stock until December 31, 2023. The new stock repurchase program replaced the Company’s prior $250.0 million repurchase program, which had been scheduled to expire on June 30, 2024. Repurchases under the new program may occur from time to time through open market purchases, privately negotiated transactions or other transactions. The timing, manner, price and amount of any common stock repurchases will be determined by us in our discretion and will depend on a variety of factors, including prevailing market conditions, our liquidity, the terms of our debt instruments, legal requirements, planned land investment and development spending, acquisition and other investment opportunities and ongoing capital requirements. The program does not require us to repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or discontinued at any time. The following table summarizes share repurchase activity for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Amount available for repurchase — beginning of period $ 172,384 $ 48,413 $ 230,413 $ 86,831 Amount cancelled from expired or unused authorizations (75,000) — (75,000) — Additional amount authorized for repurchase 500,000 250,000 500,000 250,000 Amount repurchased (172,384) (106,754) (230,413) (145,172) Amount available for repurchase — end of period $ 425,000 $ 191,659 $ 425,000 $ 191,659 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
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 2022. 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 June 30, 2022, we had an aggregate of 5,498,968 shares of Common Stock available for future grants under the Plan. The following table provides the outstanding balance of time-based and performance based RSUs and stock options as of June 30, 2022: Restricted Stock Units Stock Options Units Weighted Average Units Weighted Balance at June 30, 2022 1,633,914 $ 27.34 3,499,994 $ 23.15 The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Restricted stock units (1) $ 4,137 $ 3,615 $ 9,918 $ 8,362 Stock options 1,141 1,039 2,223 1,973 Total stock compensation $ 5,278 $ 4,654 $ 12,141 $ 10,335 (1) Includes compensation expense related to time-based RSUs and performance-based RSUs. At June 30, 2022 and December 31, 2021, the aggregate unrecognized value of all outstanding stock-based compensation awards was approximately $38.1 million and $26.5 million, respectively. |
REPORTING SEGMENTS
REPORTING SEGMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTSWe have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those 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 Segment information is as follows (in thousands): Three Months Ended June 30, 2022 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 635,862 $ 457,512 $ 832,274 $ 35,471 $ 33,904 $ 1,995,023 Gross margin 174,535 117,356 222,687 13,988 12,914 541,480 Selling, general and administrative expenses (44,589) (33,499) (42,374) — (45,080) (165,542) Net (loss)/income from unconsolidated entities — (39) (5,793) 2,195 — (3,637) Interest and other income/(expense), net (2) 10,110 (1,076) (3,703) — 494 5,825 Gain on extinguishment of debt, net — — — — 13,471 13,471 Income/(loss) before income taxes $ 140,056 $ 82,742 $ 170,817 $ 16,183 $ (18,201) $ 391,597 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Three Months Ended June 30, 2021 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 581,362 $ 385,839 $ 714,439 $ 37,392 $ 248 $ 1,719,280 Gross margin 122,241 68,606 126,593 11,457 (194) 328,703 Selling, general and administrative expenses (46,365) (32,342) (47,203) — (41,647) (167,557) Net (loss)/income from unconsolidated entities — (6) 4 2,128 — 2,126 Interest and other income/(expense), net (2) 49 (518) (1,311) — 1,732 (48) Income/(loss) before income taxes $ 75,925 $ 35,740 $ 78,083 $ 13,585 $ (40,109) $ 163,224 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Six Months Ended June 30, 2022 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 1,160,983 $ 828,247 $ 1,602,484 $ 70,670 $ 35,763 $ 3,698,147 Gross margin 300,226 191,364 404,218 24,973 13,827 934,608 Selling, general and administrative expenses (84,915) (62,939) (85,893) — (89,060) (322,807) Net income/(loss) from unconsolidated entities — 46 (6,105) 4,253 — (1,806) Interest and other income/(expense), net (2) 9,678 (2,936) (5,669) — (42) 1,031 Gain on extinguishment of debt, net — — — — 13,471 13,471 Income/(loss) before income taxes $ 224,989 $ 125,535 $ 306,551 $ 29,226 $ (61,804) $ 624,497 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Six Months Ended June 30, 2021 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 1,034,723 $ 708,452 $ 1,312,169 $ 81,457 $ 291 $ 3,137,092 Gross margin 207,308 133,784 231,031 31,523 (502) 603,144 Selling, general and administrative expenses (84,964) (60,900) (88,755) — (80,443) (315,062) Net (loss)/income from unconsolidated entities — (70) 1,996 5,871 (10) 7,787 Interest and other income/(expense), net (2) 91 (891) (1,420) — 1,316 (904) Income/(loss) before income taxes $ 122,435 $ 71,923 $ 142,852 $ 37,394 $ (79,639) $ 294,965 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. As of June 30, 2022 East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 2,017,995 $ 1,514,185 $ 2,792,502 $ — $ — $ 6,324,682 Investments in unconsolidated entities 42,283 89,454 127,811 4,342 27,670 291,560 Other assets 167,882 220,763 566,028 302,182 777,126 2,033,981 Total assets $ 2,228,160 $ 1,824,402 $ 3,486,341 $ 306,524 $ 804,796 $ 8,650,223 (1) Includes corporate cash and the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2021 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 corporate cash and the assets from our Build-To-Rent and Urban Form operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
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 as of June 30, 2022 and December 31, 2021. 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 letters of credit or surety bonds as of June 30, 2022 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 of the property owner generally have no recourse. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits and/or letters of credit provided to obtain the options. At June 30, 2022 and December 31, 2021, the aggregate purchase price of these contracts was $1.5 billion and $1.3 billion, respectively. Legal Proceedings — We are involved in various litigation and legal claims in the normal course of our business operations, 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, title and insurance agency operations, safety and other 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 is reasonably estimable. At June 30, 2022 and December 31, 2021, our legal accruals were $23.5 million and $21.7 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 matters. 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 June 30, 2022, 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. Leases — Our leases primarily consist of office space, construction trailers, model home leasebacks, a ground lease, equipment, and storage units. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases |
MORTGAGE HEDGING ACTIVITIES
MORTGAGE HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MORTGAGE HEDGING ACTIVITIES | MORTGAGE HEDGING ACTIVITIES We enter into IRLCs to originate 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 Condensed Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets or liabilities, 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 June 30, 2022 December 31, 2021 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 4,918 $ 703,747 $ 2,110 $ 158,299 MBSs (1,330) 585,168 (449) 407,000 Total $ 3,588 $ 1,661 (1) The notional amounts in the table above include mandatory and best effort mortgages, that have been locked and approved. Total commitments to originate loans approximated $767.8 million and $173.7 million as of June 30, 2022 and December 31, 2021, respectively. This amount represents the commitments to originate loans that have been locked and approved by underwriting. The notional amounts in the table above includes mandatory and best effort loans that have been locked and approved by underwriting. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year. We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810 , Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the Condensed Consolidated Statements of Operations. |
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 unaudited Condensed Consolidated Financial Statements and these accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, 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. |
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 . 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. We did not perform an impairment test during the second quarter of 2022 as indicators of impairment were not present. |
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 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 generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three and six months ended June 30, 2022 and 2021, no impairment charges were recorded. 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. As of June 30, 2022 and December 31, 2021, we had no inactive projects. In the ordinary course of business, we enter into various option agreements to acquire lots in staged takedowns which may require a significant cash deposit. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots are not purchased. Real estate not owned under these agreements is reflected in Consolidated real estate not owned with a corresponding liability in Liabilities attributable to consolidated real estate not owned in the Condensed Consolidated Balance Sheets. 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 Condensed Consolidated Statements 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 an ownership |
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 reduce the risks 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 will consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Condensed 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 Net loss/income from 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. |
Revenue Recognition | Revenue Recognition — We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) . The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we 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 (or develop and deliver land). 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, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, 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 the club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets 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. |
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. However, we do not believe the effect of adopting will have a material impact. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Common Share | The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income available to TMHC $ 290,987 $ 124,147 $ 467,690 $ 222,168 Denominator: Weighted average shares – basic 117,932 128,440 119,550 128,661 Restricted stock units 513 801 667 892 Stock Options 486 824 579 834 Warrants — 194 — 379 Weighted average shares – diluted 118,931 130,259 120,796 130,766 Earnings per common share – basic: Net income available to Taylor Morrison Home Corporation $ 2.47 $ 0.97 $ 3.91 $ 1.73 Earnings per common share – diluted: Net income available to Taylor Morrison Home Corporation $ 2.45 $ 0.95 $ 3.87 $ 1.70 |
REAL ESTATE INVENTORY AND LAN_2
REAL ESTATE INVENTORY AND LAND DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): As of June 30, December 31, 2021 Real estate developed and under development $ 3,879,560 $ 3,895,681 Real estate held for development or held for sale (1) 72,411 70,305 Operating communities (2) 1,838,216 1,309,551 Capitalized interest 185,364 168,670 Total owned inventory 5,975,551 5,444,207 Consolidated real estate not owned 70,817 55,314 Total real estate inventory $ 6,046,368 $ 5,499,521 (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. |
Schedule of Development Status of Land Inventory | The development status of our land inventory is as follows (dollars in thousands): As of June 30, 2022 December 31, 2021 Owned Lots Book Value of Land Owned Lots Book Value of Land Homebuilding owned lots Raw 3,801 $ 172,327 4,017 $ 178,952 Partially developed 24,641 1,619,200 24,636 1,568,967 Finished 19,939 2,145,750 19,360 2,119,128 Total homebuilding owned lots 48,381 3,937,277 48,013 3,867,047 Other assets (1) — 14,694 5,298 98,939 Total owned lots 48,381 $ 3,951,971 53,311 $ 3,965,986 (1) The remaining book value of land and development as of June 30, 2022 relates to parcels of commercial assets which are . excluded from the owned lots presented in the table. |
Schedule of Controlled Lots | The table below presents a summary of our controlled lots for the following periods (dollars in thousands): As of June 30, 2022 December 31, 2021 Controlled Lots Purchase Price Land Deposit (1) Controlled Lots Purchase Price Land Deposit (1) Homebuilding controlled lots Land option purchase contracts 6,805 $ 390,373 $ 49,587 8,360 $ 507,161 $ 57,554 Land banking arrangements 7,173 1,063,392 157,433 5,731 749,813 117,721 Other controlled lots 19,972 1,243,367 61,241 14,671 1,338,284 38,505 Total controlled lots 33,950 $ 2,697,132 $ 268,261 28,762 $ 2,595,258 $ 213,780 (1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements. . In addition, at June 30, 2022 and December 31, 2021 we had refundable deposits of $10.1 million and $15.7 million respectively. |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred and amortized is as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest capitalized - beginning of period $ 177,969 $ 174,174 $ 168,670 $ 163,780 Interest incurred and capitalized 40,815 40,416 80,544 78,135 Interest amortized to cost of home closings (33,420) (34,070) (63,850) (61,395) Interest capitalized - end of period $ 185,364 $ 180,520 $ 185,364 $ 180,520 |
INVESTMENTS IN CONSOLIDATED A_2
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 are as follows (in thousands): As of June 30, December 31, Assets: Real estate inventory $ 668,474 $ 414,687 Other assets 129,062 118,990 Total assets $ 797,536 $ 533,677 Liabilities and owners’ equity: Debt $ 130,284 $ 167,842 Other liabilities 23,169 16,245 Total liabilities 153,453 184,087 Owners’ equity: TMHC 291,560 171,406 Others 352,523 178,184 Total owners’ equity 644,083 349,590 Total liabilities and owners’ equity $ 797,536 $ 533,677 Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues $ 94,166 $ 29,745 $ 124,567 $ 79,626 Costs and expenses (94,086) (22,901) (119,016) (57,059) Income of unconsolidated entities $ 80 $ 6,844 $ 5,551 $ 22,567 TMHC’s share in (loss)/income of unconsolidated entities $ (3,637) $ 2,126 $ (1,806) $ 7,788 Distributions to TMHC from unconsolidated entities $ 88,770 $ 9,729 $ 90,828 $ 20,342 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of As of Real estate development costs to complete $ 45,974 $ 49,833 Compensation and employee benefits 103,291 166,272 Self-insurance and warranty reserves 137,491 141,839 Interest payable 40,977 48,551 Property and sales taxes payable 25,053 29,384 Other accruals 78,692 89,330 Total accrued expenses and other liabilities $ 431,478 $ 525,209 |
Summary of Changes in Reserves | A summary of the changes in our reserves are as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Reserve - beginning of period $ 140,970 $ 116,406 $ 141,839 $ 118,116 Additions to reserves 23,519 18,394 32,403 30,784 Cost of claims incurred (27,729) (19,067) (40,202) (34,931) Changes in estimates to pre-existing reserves 731 388 3,451 2,152 Reserve - end of period $ 137,491 $ 116,121 $ 137,491 $ 116,121 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Total Debt | Total debt consists of the following (in thousands): As of June 30, 2022 December 31, 2021 Principal Unamortized Debt Issuance (Costs)/Premium Carrying Value Principal Unamortized Debt Issuance (Costs)/Premium Carrying Value 5.875% Senior Notes due 2023 $ 350,000 $ (449) $ 349,551 $ 350,000 $ (733) $ 349,267 5.625% Senior Notes due 2024 350,000 (897) 349,103 350,000 (1,166) 348,834 5.875% Senior Notes due 2027 500,000 (3,851) 496,149 500,000 (4,243) 495,757 6.625% Senior Notes due 2027 35,889 1,928 37,817 300,000 17,718 317,718 5.75% Senior Notes due 2028 450,000 (3,498) 446,502 450,000 (3,814) 446,186 5.125% Senior Notes due 2030 500,000 (5,124) 494,876 500,000 (5,440) 494,560 Senior Notes subtotal $ 2,185,889 $ (11,891) $ 2,173,998 $ 2,450,000 $ 2,322 $ 2,452,322 Loans payable and other borrowings 447,191 — 447,191 404,386 — 404,386 $800 Million Revolving Credit Facility (1) 150,000 — 150,000 — — — $100 Million Revolving Credit Facility (1) — — — 31,529 — 31,529 Mortgage warehouse borrowings 179,555 — 179,555 413,887 — 413,887 Total debt $ 2,962,635 $ (11,891) $ 2,950,744 $ 3,299,802 $ 2,322 $ 3,302,124 (1) The $800 Million Revolving Credit Agreement together with the $100 Million Revolving Credit Agreement, the “Credit Facilities” |
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage warehouse borrowings (in thousands): As of June 30, 2022 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 4,538 $ 10,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 20,143 75,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,170 125,000 LIBOR + 1.95% On Demand Mortgage Loans and Restricted Cash Warehouse D 52,733 100,000 LIBOR + 1.65% November 20, 2022 Mortgage Loans Warehouse E 58,971 100,000 LIBOR + 1.50% On Demand Mortgage Loans Total $ 179,555 $ 410,000 As of December 31, 2021 Facility Amount Drawn Facility Amount 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 (1) Subject to certain interest rate floors. (2) The mortgage warehouse borrowings outstanding as of June 30, 2022 and December 31, 2021 were collateralized by $203.2 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage loans held for sale, and approximately $0.9 million and $3.5 million, respectively, of cash which is restricted cash on our Condensed Consolidated Balance Sheet. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of our financial instruments are as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 203,238 $ 203,238 $ 467,534 $ 467,534 IRLCs 3 4,918 4,918 2,110 2,110 MBSs 2 (1,330) (1,330) (449) (449) Mortgage warehouse borrowings 2 179,555 179,555 413,887 413,887 Loans payable and other borrowings 2 447,191 447,191 404,386 404,386 5.875% Senior Notes due 2023 (1) 2 349,551 349,125 349,267 365,890 5.625% Senior Notes due 2024 (1) 2 349,103 340,270 348,834 372,750 5.875% Senior Notes due 2027 (1) 2 496,149 460,850 495,757 560,000 6.625% Senior Notes due 2027 (1) 2 37,817 34,378 317,718 315,750 5.75% Senior Notes due 2028 (1) 2 446,502 403,785 446,186 502,875 5.125% Senior Notes due 2030 (1) 2 494,876 415,250 494,560 550,000 $800 Million Revolving Credit Facility 2 150,000 150,000 — — $100 Million Revolving Credit Facility 2 — — 31,529 31,529 Equity Security Investment 1 2,180 2,180 6,400 6,400 (1) |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stock Repurchase Details | The following table summarizes share repurchase activity for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Amount available for repurchase — beginning of period $ 172,384 $ 48,413 $ 230,413 $ 86,831 Amount cancelled from expired or unused authorizations (75,000) — (75,000) — Additional amount authorized for repurchase 500,000 250,000 500,000 250,000 Amount repurchased (172,384) (106,754) (230,413) (145,172) Amount available for repurchase — end of period $ 425,000 $ 191,659 $ 425,000 $ 191,659 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Payment Arrangement Activity | The following table provides the outstanding balance of time-based and performance based RSUs and stock options as of June 30, 2022: Restricted Stock Units Stock Options Units Weighted Average Units Weighted Balance at June 30, 2022 1,633,914 $ 27.34 3,499,994 $ 23.15 |
Summary of Stock-Based Compensation Expense | The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Restricted stock units (1) $ 4,137 $ 3,615 $ 9,918 $ 8,362 Stock options 1,141 1,039 2,223 1,973 Total stock compensation $ 5,278 $ 4,654 $ 12,141 $ 10,335 (1) Includes compensation expense related to time-based RSUs and performance-based RSUs. |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Reporting Segments | 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 Segment Information | Segment information is as follows (in thousands): Three Months Ended June 30, 2022 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 635,862 $ 457,512 $ 832,274 $ 35,471 $ 33,904 $ 1,995,023 Gross margin 174,535 117,356 222,687 13,988 12,914 541,480 Selling, general and administrative expenses (44,589) (33,499) (42,374) — (45,080) (165,542) Net (loss)/income from unconsolidated entities — (39) (5,793) 2,195 — (3,637) Interest and other income/(expense), net (2) 10,110 (1,076) (3,703) — 494 5,825 Gain on extinguishment of debt, net — — — — 13,471 13,471 Income/(loss) before income taxes $ 140,056 $ 82,742 $ 170,817 $ 16,183 $ (18,201) $ 391,597 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Three Months Ended June 30, 2021 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 581,362 $ 385,839 $ 714,439 $ 37,392 $ 248 $ 1,719,280 Gross margin 122,241 68,606 126,593 11,457 (194) 328,703 Selling, general and administrative expenses (46,365) (32,342) (47,203) — (41,647) (167,557) Net (loss)/income from unconsolidated entities — (6) 4 2,128 — 2,126 Interest and other income/(expense), net (2) 49 (518) (1,311) — 1,732 (48) Income/(loss) before income taxes $ 75,925 $ 35,740 $ 78,083 $ 13,585 $ (40,109) $ 163,224 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Six Months Ended June 30, 2022 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 1,160,983 $ 828,247 $ 1,602,484 $ 70,670 $ 35,763 $ 3,698,147 Gross margin 300,226 191,364 404,218 24,973 13,827 934,608 Selling, general and administrative expenses (84,915) (62,939) (85,893) — (89,060) (322,807) Net income/(loss) from unconsolidated entities — 46 (6,105) 4,253 — (1,806) Interest and other income/(expense), net (2) 9,678 (2,936) (5,669) — (42) 1,031 Gain on extinguishment of debt, net — — — — 13,471 13,471 Income/(loss) before income taxes $ 224,989 $ 125,535 $ 306,551 $ 29,226 $ (61,804) $ 624,497 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. Six Months Ended June 30, 2021 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 1,034,723 $ 708,452 $ 1,312,169 $ 81,457 $ 291 $ 3,137,092 Gross margin 207,308 133,784 231,031 31,523 (502) 603,144 Selling, general and administrative expenses (84,964) (60,900) (88,755) — (80,443) (315,062) Net (loss)/income from unconsolidated entities — (70) 1,996 5,871 (10) 7,787 Interest and other income/(expense), net (2) 91 (891) (1,420) — 1,316 (904) Income/(loss) before income taxes $ 122,435 $ 71,923 $ 142,852 $ 37,394 $ (79,639) $ 294,965 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects. |
Summary of Assets by Segment | As of June 30, 2022 East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 2,017,995 $ 1,514,185 $ 2,792,502 $ — $ — $ 6,324,682 Investments in unconsolidated entities 42,283 89,454 127,811 4,342 27,670 291,560 Other assets 167,882 220,763 566,028 302,182 777,126 2,033,981 Total assets $ 2,228,160 $ 1,824,402 $ 3,486,341 $ 306,524 $ 804,796 $ 8,650,223 (1) Includes corporate cash and the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2021 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 corporate cash and the assets from our Build-To-Rent and Urban Form operations. |
MORTGAGE HEDGING ACTIVITIES (Ta
MORTGAGE HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 4,918 $ 703,747 $ 2,110 $ 158,299 MBSs (1,330) 585,168 (449) 407,000 Total $ 3,588 $ 1,661 (1) The notional amounts in the table above include mandatory and best effort mortgages, that have been locked and approved. |
BUSINESS - Narrative (Details)
BUSINESS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Line Items] | ||||
Inventory impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment charges on unconsolidated entities | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum | ||||
Real Estate [Line Items] | ||||
Life cycle of communities (in years) | 2 years | |||
Maximum | ||||
Real Estate [Line Items] | ||||
Life cycle of communities (in years) | 5 years |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income available to TMHC | $ 290,987 | $ 124,147 | $ 467,690 | $ 222,168 |
Denominator: | ||||
Weighted average shares - basic (in shares) | 117,932 | 128,440 | 119,550 | 128,661 |
Restricted stock units (in shares) | 513 | 801 | 667 | 892 |
Stock Options (in shares) | 486 | 824 | 579 | 834 |
Warrants (in shares) | 0 | 194 | 0 | 379 |
Weighted average shares - diluted (in shares) | 118,931 | 130,259 | 120,796 | 130,766 |
Earnings per common share – basic: | ||||
Net income available to Taylor Morrison Home Corporation (in dollars per share) | $ 2.47 | $ 0.97 | $ 3.91 | $ 1.73 |
Earnings per common share – diluted: | ||||
Net income available to Taylor Morrison Home Corporation (in dollars per share) | $ 2.45 | $ 0.95 | $ 3.87 | $ 1.70 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock options and time-vesting RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of earnings per share (in shares) | 2,176,897 | 1,133,597 | 1,462,766 | 982,940 |
REAL ESTATE INVENTORY AND LAN_3
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||||||
Real estate developed and under development | $ 3,879,560 | $ 3,895,681 | ||||
Real estate held for development or held for sale | 72,411 | 70,305 | ||||
Operating communities | 1,838,216 | 1,309,551 | ||||
Capitalized interest | 185,364 | $ 177,969 | 168,670 | $ 180,520 | $ 174,174 | $ 163,780 |
Total owned inventory | 5,975,551 | 5,444,207 | ||||
Consolidated real estate not owned | 70,817 | 55,314 | ||||
Total real estate inventory | $ 6,046,368 | $ 5,499,521 |
REAL ESTATE INVENTORY AND LAN_4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Development Status of Land Inventory (Details) $ in Thousands | Jun. 30, 2022 USD ($) lot | Dec. 31, 2021 USD ($) lot |
Book Value of Land and Development | ||
Inventory [Line Items] | ||
Total owned lots | $ | $ 3,951,971 | $ 3,965,986 |
Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 48,381 | 53,311 |
Raw | Book Value of Land and Development | ||
Inventory [Line Items] | ||
Raw | $ | $ 172,327 | $ 178,952 |
Raw | Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 3,801 | 4,017 |
Partially developed | Book Value of Land and Development | ||
Inventory [Line Items] | ||
Partially developed | $ | $ 1,619,200 | $ 1,568,967 |
Partially developed | Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 24,641 | 24,636 |
Finished | Book Value of Land and Development | ||
Inventory [Line Items] | ||
Finished | $ | $ 2,145,750 | $ 2,119,128 |
Finished | Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 19,939 | 19,360 |
Total homebuilding owned lots | Book Value of Land and Development | ||
Inventory [Line Items] | ||
Total homebuilding owned lots | $ | $ 3,937,277 | $ 3,867,047 |
Total homebuilding owned lots | Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 48,381 | 48,013 |
Other assets(1) | Book Value of Land and Development | ||
Inventory [Line Items] | ||
Other assets | $ | $ 14,694 | $ 98,939 |
Other assets(1) | Owned Lots | ||
Inventory [Line Items] | ||
Owned Lots | lot | 0 | 5,298 |
REAL ESTATE INVENTORY AND LAN_5
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Controlled Lots (Details) $ in Thousands | Jun. 30, 2022 USD ($) lot | Dec. 31, 2021 USD ($) lot |
Real Estate [Line Items] | ||
Controlled Lots | lot | 33,950 | 28,762 |
Purchase Price | $ 2,697,132 | $ 2,595,258 |
Land Deposit | $ 268,261 | $ 213,780 |
Land option purchase contracts | ||
Real Estate [Line Items] | ||
Controlled Lots | lot | 6,805 | 8,360 |
Purchase Price | $ 390,373 | $ 507,161 |
Land Deposit | $ 49,587 | $ 57,554 |
Land banking arrangements | ||
Real Estate [Line Items] | ||
Controlled Lots | lot | 7,173 | 5,731 |
Purchase Price | $ 1,063,392 | $ 749,813 |
Land Deposit | $ 157,433 | $ 117,721 |
Other controlled lots | ||
Real Estate [Line Items] | ||
Controlled Lots | lot | 19,972 | 14,671 |
Purchase Price | $ 1,243,367 | $ 1,338,284 |
Land Deposit | 61,241 | 38,505 |
Refundable Land Deposits | ||
Real Estate [Line Items] | ||
Land Deposit | $ 10,100 | $ 15,700 |
REAL ESTATE INVENTORY AND LAN_6
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest capitalized - beginning of period | $ 177,969 | $ 174,174 | $ 168,670 | $ 163,780 |
Interest incurred and capitalized | 40,815 | 40,416 | 80,544 | 78,135 |
Interest amortized to cost of home closings | (33,420) | (34,070) | (63,850) | (61,395) |
Interest capitalized - end of period | $ 185,364 | $ 180,520 | $ 185,364 | $ 180,520 |
INVESTMENTS IN CONSOLIDATED A_3
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) jointVenture | Jun. 30, 2022 USD ($) jointVenture | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||||
Number of joint ventures | jointVenture | 2 | 2 | ||
Gain on land transfers | $ 13,700 | $ 13,700 | $ 0 | |
Assets | 8,650,223 | 8,650,223 | $ 8,727,777 | |
Cash and cash equivalents | 378,340 | 378,340 | 832,821 | |
Fixed assets | 220,230 | 220,230 | 155,181 | |
Liabilities | 4,456,328 | 4,456,328 | 4,756,795 | |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 27,900 | 27,900 | 22,300 | |
Owned inventory | 66,800 | 66,800 | 147,600 | |
Fixed assets | 124,000 | 124,000 | 74,300 | |
Liabilities | 145,100 | 145,100 | 165,100 | |
WLH | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Assets | $ 267,900 | $ 267,900 | $ 291,800 |
INVESTMENTS IN CONSOLIDATED A_4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Other assets | $ 2,033,981 | $ 2,827,315 |
Total assets | 8,650,223 | 8,727,777 |
Liabilities and owners’ equity: | ||
Debt | 2,950,744 | 3,302,124 |
Total liabilities | 4,456,328 | 4,756,795 |
Owners’ equity: | ||
Total liabilities and stockholders’ equity | 8,650,223 | 8,727,777 |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Assets | ||
Real estate inventory | 668,474 | 414,687 |
Other assets | 129,062 | 118,990 |
Total assets | 797,536 | 533,677 |
Liabilities and owners’ equity: | ||
Debt | 130,284 | 167,842 |
Other liabilities | 23,169 | 16,245 |
Total liabilities | 153,453 | 184,087 |
Owners’ equity: | ||
TMHC | 291,560 | 171,406 |
Others | 352,523 | 178,184 |
Total owners’ equity | 644,083 | 349,590 |
Total liabilities and stockholders’ equity | $ 797,536 | $ 533,677 |
INVESTMENTS IN CONSOLIDATED A_5
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Costs and expenses | $ (1,453,543) | $ (1,390,577) | $ (2,763,539) | $ (2,533,948) |
Net income | 293,154 | 124,755 | 471,615 | 227,198 |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 94,166 | 29,745 | 124,567 | 79,626 |
Costs and expenses | (94,086) | (22,901) | (119,016) | (57,059) |
Net income | 80 | 6,844 | 5,551 | 22,567 |
TMHC’s share in (loss)/income of unconsolidated entities | (3,637) | 2,126 | (1,806) | 7,788 |
Distributions to TMHC from unconsolidated entities | $ 88,770 | $ 9,729 | $ 90,828 | $ 20,342 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||||||
Real estate development costs to complete | $ 45,974 | $ 49,833 | ||||
Compensation and employee benefits | 103,291 | 166,272 | ||||
Self-insurance and warranty reserves | 137,491 | $ 140,970 | 141,839 | $ 116,121 | $ 116,406 | $ 118,116 |
Interest payable | 40,977 | 48,551 | ||||
Property and sales taxes payable | 25,053 | 29,384 | ||||
Other accruals | 78,692 | 89,330 | ||||
Total accrued expenses and other liabilities | $ 431,478 | $ 525,209 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in Warranty Reserves | ||||
Reserve - beginning of period | $ 140,970 | $ 116,406 | $ 141,839 | $ 118,116 |
Additions to reserves | 23,519 | 18,394 | 32,403 | 30,784 |
Cost of claims incurred | (27,729) | (19,067) | (40,202) | (34,931) |
Changes in estimates to pre-existing reserves | 731 | 388 | 3,451 | 2,152 |
Reserve - end of period | $ 137,491 | $ 116,121 | $ 137,491 | $ 116,121 |
DEBT - Summary of Total Debt (D
DEBT - Summary of Total Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Feb. 10, 2020 |
Debt Instrument [Line Items] | |||
Principal | $ 2,962,635 | $ 3,299,802 | |
Unamortized Debt Issuance (Costs)/Premium | (11,891) | 2,322 | |
Carrying Value | 2,950,744 | 3,302,124 | |
Loans payable and other borrowings | |||
Debt Instrument [Line Items] | |||
Principal | 447,191 | 404,386 | |
Unamortized Debt Issuance (Costs)/Premium | 0 | 0 | |
Carrying Value | 447,191 | 404,386 | |
Mortgage warehouse borrowings | |||
Debt Instrument [Line Items] | |||
Principal | 179,555 | 413,887 | |
Unamortized Debt Issuance (Costs)/Premium | 0 | 0 | |
Carrying Value | 179,555 | 413,887 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | 2,185,889 | 2,450,000 | |
Unamortized Debt Issuance (Costs)/Premium | (11,891) | 2,322 | |
Carrying Value | $ 2,173,998 | 2,452,322 | |
Senior Notes | 5.875% Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
Principal | $ 350,000 | 350,000 | |
Unamortized Debt Issuance (Costs)/Premium | (449) | (733) | |
Carrying Value | $ 349,551 | 349,267 | |
Senior Notes | 5.625% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.625% | ||
Principal | $ 350,000 | 350,000 | |
Unamortized Debt Issuance (Costs)/Premium | (897) | (1,166) | |
Carrying Value | $ 349,103 | 348,834 | |
Senior Notes | 5.875% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
Principal | $ 500,000 | 500,000 | |
Unamortized Debt Issuance (Costs)/Premium | (3,851) | (4,243) | |
Carrying Value | $ 496,149 | 495,757 | |
Senior Notes | 6.625% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 6.625% | 6.625% | |
Principal | $ 35,889 | 300,000 | |
Unamortized Debt Issuance (Costs)/Premium | 1,928 | 17,718 | |
Carrying Value | $ 37,817 | 317,718 | |
Senior Notes | 5.75% Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.75% | ||
Principal | $ 450,000 | 450,000 | |
Unamortized Debt Issuance (Costs)/Premium | (3,498) | (3,814) | |
Carrying Value | $ 446,502 | 446,186 | |
Senior Notes | 5.125% Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.125% | ||
Principal | $ 500,000 | 500,000 | |
Unamortized Debt Issuance (Costs)/Premium | (5,124) | (5,440) | |
Carrying Value | 494,876 | 494,560 | |
Line of Credit | Revolving Credit Facility | $800 Million Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Facility Amount | 800,000 | ||
Principal | 150,000 | 0 | |
Unamortized Debt Issuance (Costs)/Premium | 0 | 0 | |
Carrying Value | 150,000 | 0 | |
Line of Credit | Revolving Credit Facility | $100 Million Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Facility Amount | 100,000 | ||
Principal | 0 | 31,529 | |
Unamortized Debt Issuance (Costs)/Premium | 0 | 0 | |
Carrying Value | $ 0 | $ 31,529 |
DEBT - 2027 Senior Notes (Detai
DEBT - 2027 Senior Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 28, 2022 | Jun. 13, 2022 | Jul. 27, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 10, 2020 | |
Debt Instrument [Line Items] | ||||||||
Repayments of senior debt | $ 264,111 | $ 0 | ||||||
Gain on extinguishment of debt, net | $ 13,471 | $ 0 | $ 13,471 | $ 0 | ||||
5.875% Senior Notes due 2027 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 5.875% | 5.875% | ||||||
6.625% Senior Notes due 2027 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 6.625% | 6.625% | 6.625% | |||||
Repayments of senior debt | $ 264,100 | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of senior debt | $ 800 | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (as a percent) | 100% | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (as a percent) | 103.313% | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Debt Instrument, Redemption, Period Three | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (as a percent) | 102.208% | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Debt Instrument, Redemption, Period Four | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (as a percent) | 101.104% | |||||||
6.625% Senior Notes due 2027 | Senior Notes | Debt Instrument, Redemption, Period Five | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (as a percent) | 100% | |||||||
6.625% Senior Notes due 2027 issued by TM Communities | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 6.625% | |||||||
Senior notes issued amount | $ 290,400 | |||||||
Percentage of principal amount redeemed | 100% | |||||||
Gain on extinguishment of debt, net | $ 13,500 | $ 13,500 | ||||||
6.625% Senior Notes due 2027 issued by TM Communities | Senior Notes | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes issued amount | $ 265,000 | |||||||
Percentage of principal amount redeemed | 97% | |||||||
6.625% Senior Notes due 2027 issued by WLH | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes issued amount | $ 9,600 |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) fiscalQuarter equityCureRight | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,962,635 | $ 3,299,802 |
Letters of credit utilized | 1,200,000 | 1,200,000 |
Revolving credit facility borrowings | 150,000 | 31,529 |
Revolving Credit Facility | $800 Million Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | 800,000 | |
Long-term debt, gross | 150,000 | 0 |
Unamortized debt issuance costs | 3,000 | 1,100 |
Letters of credit utilized | 66,300 | 58,700 |
Line of credit available | $ 583,700 | 741,300 |
Maximum capitalization ratio | 60% | |
Minimum net worth required | $ 2,500,000 | |
Revolving credit facility borrowings | $ 40,000 | |
Number of consecutive fiscal quarters in which equity cure right can be used twice (in fiscal quarter) | fiscalQuarter | 4 | |
Maximum number of times equity cure right can be exercised | 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 | |
Long-term debt, gross | $ 0 | $ 31,529 |
Maximum consecutive days for financial covenant | 5 days |
DEBT - Summary of Mortgage Ware
DEBT - Summary of Mortgage Warehouse Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||
Amount Drawn | $ 179,555 | $ 413,887 | |
Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | 179,555 | 413,887 | |
Facility Amount | 410,000 | 760,000 | |
Mortgage borrowings outstanding, collateralized amount | 203,200 | 467,500 | |
Collateralized amount of restricted short-term investments | 900 | 3,500 | |
Warehouse A | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | 4,538 | 12 | |
Facility Amount | $ 10,000 | 10,000 | |
Warehouse A | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest Rate | 1.75% | 1.75% | |
Warehouse B | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | $ 20,143 | 86,409 | |
Facility Amount | $ 75,000 | 150,000 | |
Warehouse B | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest Rate | 1.75% | 1.75% | |
Warehouse C | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | $ 43,170 | 116,601 | |
Facility Amount | $ 125,000 | 250,000 | |
Warehouse C | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest Rate | 2.05% | 1.95% | |
Warehouse D | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | $ 52,733 | 105,065 | |
Facility Amount | $ 100,000 | 150,000 | |
Warehouse D | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest Rate | 1.65% | 1.65% | |
Warehouse E | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Amount Drawn | $ 58,971 | 105,800 | |
Facility Amount | $ 100,000 | $ 200,000 | |
Warehouse E | Secured Debt | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest Rate | 1.50% | 1.50% |
DEBT - Loans Payable and Other
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payables | Jun. 30, 2022 | Dec. 31, 2021 |
Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 0% | 0% |
Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 8% | 8% |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Feb. 10, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs | $ 4,918 | $ 2,110 | |
Senior Notes | 5.875% Senior Notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
Senior Notes | 5.625% Senior Notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 5.625% | ||
Senior Notes | 5.875% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
Senior Notes | 6.625% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 6.625% | 6.625% | |
Senior Notes | 5.75% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 5.75% | ||
Senior Notes | 5.125% Senior Notes due 2030 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (as a percent) | 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 | ||
Level 2 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 203,238 | 467,534 | |
Level 2 | Carrying Value | MBSs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
MBSs | (1,330) | (449) | |
Level 2 | Carrying Value | Mortgage warehouse borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 179,555 | 413,887 | |
Level 2 | Carrying Value | Loans payable and other borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 447,191 | 404,386 | |
Level 2 | Carrying Value | Senior Notes | 5.875% Senior Notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 349,551 | 349,267 | |
Level 2 | Carrying Value | Senior Notes | 5.625% Senior Notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 349,103 | 348,834 | |
Level 2 | Carrying Value | Senior Notes | 5.875% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 496,149 | 495,757 | |
Level 2 | Carrying Value | Senior Notes | 6.625% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 37,817 | 317,718 | |
Level 2 | Carrying Value | Senior Notes | 5.75% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 446,502 | 446,186 | |
Level 2 | Carrying Value | Senior Notes | 5.125% Senior Notes due 2030 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 494,876 | 494,560 | |
Level 2 | Carrying Value | Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 150,000 | 0 | |
Level 2 | Carrying Value | Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 0 | 31,529 | |
Level 2 | Estimated Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 203,238 | 467,534 | |
Level 2 | Estimated Fair Value | MBSs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
MBSs | (1,330) | (449) | |
Level 2 | Estimated Fair Value | Mortgage warehouse borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 179,555 | 413,887 | |
Level 2 | Estimated Fair Value | Loans payable and other borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 447,191 | 404,386 | |
Level 2 | Estimated Fair Value | Senior Notes | 5.875% Senior Notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 349,125 | 365,890 | |
Level 2 | Estimated Fair Value | Senior Notes | 5.625% Senior Notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 340,270 | 372,750 | |
Level 2 | Estimated Fair Value | Senior Notes | 5.875% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 460,850 | 560,000 | |
Level 2 | Estimated Fair Value | Senior Notes | 6.625% Senior Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 34,378 | 315,750 | |
Level 2 | Estimated Fair Value | Senior Notes | 5.75% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 403,785 | 502,875 | |
Level 2 | Estimated Fair Value | Senior Notes | 5.125% Senior Notes due 2030 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 415,250 | 550,000 | |
Level 2 | Estimated Fair Value | Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 150,000 | 0 | |
Level 2 | Estimated Fair Value | Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 0 | 31,529 | |
Level 3 | Carrying Value | IRLCs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs | 4,918 | 2,110 | |
Level 3 | Estimated Fair Value | IRLCs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
IRLCs | 4,918 | 2,110 | |
Level 1 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Security Investment | 2,180 | 6,400 | |
Level 1 | Estimated Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Security Investment | $ 2,180 | $ 6,400 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | 25.10% | 23.60% | 24.50% | 23% | |
Unrecognized tax benefits that would affect effective tax rate | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2022 | |
Equity, Class of Treasury Stock [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 | 50,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |||
Repurchase of common stock (in shares) | 6,779,498 | 3,809,428 | 8,727,685 | 5,256,737 | |
May 2022 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Additional amount authorized for repurchase | $ 500 | ||||
Prior Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Additional amount authorized for repurchase | $ 250 | $ 250 |
STOCKHOLDERS_ EQUITY - Stock Re
STOCKHOLDERS’ EQUITY - Stock Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | ||||
Amount available for repurchase - beginning of period | $ 172,384 | $ 48,413 | $ 230,413 | $ 86,831 |
Amount cancelled from expired or unused authorizations | (75,000) | 0 | (75,000) | 0 |
Additional amount authorized for repurchase | 500,000 | 250,000 | 500,000 | 250,000 |
Amount repurchased | (172,384) | (106,754) | (230,413) | (145,172) |
Amount available for repurchase — end of period | $ 425,000 | $ 191,659 | $ 425,000 | $ 191,659 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Unit, Stock Options, and Stock Warrants Activity (Details) | Jun. 30, 2022 $ / shares shares |
Restricted Stock Units and Performance-based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards other than options, balance (in shares) | shares | 1,633,914 |
Weighted Average Grant Date Fair Value | |
Stock awards other than options, outstanding, balance (in dollars per share) | $ / shares | $ 27.34 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, balance (in shares) | shares | 3,499,994 |
Weighted Average Grant Date Fair Value | |
Stock Options, outstanding balance (in dollars per share) | $ / shares | $ 23.15 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation | $ 5,278 | $ 4,654 | $ 12,141 | $ 10,335 |
Restricted stock units (RSUs) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation | 4,137 | 3,615 | 9,918 | 8,362 |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation | $ 1,141 | $ 1,039 | $ 2,223 | $ 1,973 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate unamortized outstanding stock based compensation | $ 38.1 | $ 26.5 |
Two Thousand And Thirteen Omnibus Equity Award Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate common stock available for future grants (in shares) | 5,498,968 |
REPORTING SEGMENTS - Narrative
REPORTING SEGMENTS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments included in operating component | 3 |
REPORTING SEGMENTS - Reconcilia
REPORTING SEGMENTS - Reconciliation to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | $ 1,995,023 | $ 1,719,280 | $ 3,698,147 | $ 3,137,092 |
Gross margin | 541,480 | 328,703 | 934,608 | 603,144 |
Selling, general and administrative expenses | (165,542) | (167,557) | (322,807) | (315,062) |
Net (loss)/income from unconsolidated entities | (3,637) | 2,126 | (1,806) | 7,787 |
Interest and other income/(expense), net | 5,825 | (48) | 1,031 | (904) |
Gain on extinguishment of debt, net | 13,471 | 0 | 13,471 | 0 |
Income before income taxes | 391,597 | 163,224 | 624,497 | 294,965 |
Operating Segments | East | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | 635,862 | 581,362 | 1,160,983 | 1,034,723 |
Gross margin | 174,535 | 122,241 | 300,226 | 207,308 |
Selling, general and administrative expenses | (44,589) | (46,365) | (84,915) | (84,964) |
Net (loss)/income from unconsolidated entities | 0 | 0 | 0 | 0 |
Interest and other income/(expense), net | 10,110 | 49 | 9,678 | 91 |
Gain on extinguishment of debt, net | 0 | 0 | ||
Income before income taxes | 140,056 | 75,925 | 224,989 | 122,435 |
Operating Segments | Central | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | 457,512 | 385,839 | 828,247 | 708,452 |
Gross margin | 117,356 | 68,606 | 191,364 | 133,784 |
Selling, general and administrative expenses | (33,499) | (32,342) | (62,939) | (60,900) |
Net (loss)/income from unconsolidated entities | (39) | (6) | 46 | (70) |
Interest and other income/(expense), net | (1,076) | (518) | (2,936) | (891) |
Gain on extinguishment of debt, net | 0 | 0 | ||
Income before income taxes | 82,742 | 35,740 | 125,535 | 71,923 |
Operating Segments | West | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | 832,274 | 714,439 | 1,602,484 | 1,312,169 |
Gross margin | 222,687 | 126,593 | 404,218 | 231,031 |
Selling, general and administrative expenses | (42,374) | (47,203) | (85,893) | (88,755) |
Net (loss)/income from unconsolidated entities | (5,793) | 4 | (6,105) | 1,996 |
Interest and other income/(expense), net | (3,703) | (1,311) | (5,669) | (1,420) |
Gain on extinguishment of debt, net | 0 | 0 | ||
Income before income taxes | 170,817 | 78,083 | 306,551 | 142,852 |
Operating Segments | Financial Services | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | 35,471 | 37,392 | 70,670 | 81,457 |
Gross margin | 13,988 | 11,457 | 24,973 | 31,523 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Net (loss)/income from unconsolidated entities | 2,195 | 2,128 | 4,253 | 5,871 |
Interest and other income/(expense), net | 0 | 0 | 0 | 0 |
Gain on extinguishment of debt, net | 0 | 0 | ||
Income before income taxes | 16,183 | 13,585 | 29,226 | 37,394 |
Corporate and Unallocated | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total revenue | 33,904 | 248 | 35,763 | 291 |
Gross margin | 12,914 | (194) | 13,827 | (502) |
Selling, general and administrative expenses | (45,080) | (41,647) | (89,060) | (80,443) |
Net (loss)/income from unconsolidated entities | 0 | 0 | 0 | (10) |
Interest and other income/(expense), net | 494 | 1,732 | (42) | 1,316 |
Gain on extinguishment of debt, net | 13,471 | 13,471 | ||
Income before income taxes | $ (18,201) | $ (40,109) | $ (61,804) | $ (79,639) |
REPORTING SEGMENTS - Summary of
REPORTING SEGMENTS - Summary of Assets by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | $ 6,324,682 | $ 5,729,056 |
Investments in unconsolidated entities | 291,560 | 171,406 |
Other assets | 2,033,981 | 2,827,315 |
Total assets | 8,650,223 | 8,727,777 |
Operating Segments | East | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 2,017,995 | 1,781,948 |
Investments in unconsolidated entities | 42,283 | 0 |
Other assets | 167,882 | 196,126 |
Total assets | 2,228,160 | 1,978,074 |
Operating Segments | Central | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 1,514,185 | 1,282,024 |
Investments in unconsolidated entities | 89,454 | 87,600 |
Other assets | 220,763 | 221,906 |
Total assets | 1,824,402 | 1,591,530 |
Operating Segments | West | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 2,792,502 | 2,665,084 |
Investments in unconsolidated entities | 127,811 | 79,531 |
Other assets | 566,028 | 588,520 |
Total assets | 3,486,341 | 3,333,135 |
Operating Segments | Financial Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 0 | 0 |
Investments in unconsolidated entities | 4,342 | 4,275 |
Other assets | 302,182 | 559,233 |
Total assets | 306,524 | 563,508 |
Corporate and Unallocated | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 0 | 0 |
Investments in unconsolidated entities | 27,670 | 0 |
Other assets | 777,126 | 1,261,530 |
Total assets | $ 804,796 | $ 1,261,530 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Nov. 02, 2021 | |
Loss Contingencies [Line Items] | ||||||
Outstanding letters of credit and surety bonds | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 | |||
Aggregate purchase price | 2,697,132,000 | 2,697,132,000 | 2,595,258,000 | |||
Legal accruals | 23,500,000 | 23,500,000 | 21,700,000 | |||
Lease liabilities | 91,872,000 | 91,872,000 | 96,172,000 | |||
Operating lease expense | 6,700,000 | $ 4,000,000 | 13,600,000 | $ 8,000,000 | ||
Land Option Purchase Contracts and Land Banking Arrangements | ||||||
Loss Contingencies [Line Items] | ||||||
Aggregate purchase price | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,300,000,000 | |||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency | $ 35,000,000 | |||||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency | $ 0 |
MORTGAGE HEDGING ACTIVITIES - N
MORTGAGE HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Total commitments to extend credit | $ 767.8 | $ 173.7 |
Minimum | ||
Derivative [Line Items] | ||
Derivative term | 30 days | |
Maximum | ||
Derivative [Line Items] | ||
Derivative term | 60 days |
MORTGAGE HEDGING ACTIVITIES - S
MORTGAGE HEDGING ACTIVITIES - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Fair Value | $ 3,588 | $ 1,661 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 4,918 | 2,110 |
Notional Amount | 703,747 | 158,299 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | (1,330) | (449) |
Notional Amount | $ 585,168 | $ 407,000 |