Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35873 | |
Entity Registrant Name | TAYLOR MORRISON HOME CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2026677 | |
Entity Address, Address Line One | 4900 N. Scottsdale Road | |
Entity Address, Address Line Two | Suite 2000 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85251 | |
City Area Code | 480 | |
Local Phone Number | 840-8100 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | TMHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,764,423 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001562476 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 554,287 | $ 798,568 |
Restricted cash | 3,105 | 8,531 |
Total cash | 557,392 | 807,099 |
Real estate inventory: | ||
Owned inventory | 5,841,924 | 5,473,828 |
Consolidated real estate not owned | 143,429 | 71,618 |
Total real estate inventory | 5,985,353 | 5,545,446 |
Land deposits | 199,043 | 203,217 |
Mortgage loans held for sale | 216,633 | 193,344 |
Lease right of use assets | 72,900 | 75,203 |
Prepaid expenses and other assets, net | 287,507 | 290,925 |
Other receivables, net | 189,771 | 184,518 |
Investments in unconsolidated entities | 369,982 | 346,192 |
Deferred tax assets, net | 67,825 | 67,825 |
Property and equipment, net | 300,740 | 295,121 |
Goodwill | 663,197 | 663,197 |
Total assets | 8,910,343 | 8,672,087 |
Liabilities | ||
Accounts payable | 276,093 | 263,481 |
Accrued expenses and other liabilities | 459,095 | 549,074 |
Lease liabilities | 81,138 | 84,999 |
Income taxes payable | 45,848 | 0 |
Customer deposits | 357,657 | 326,087 |
Estimated development liabilities | 27,416 | 27,440 |
Senior notes, net | 1,469,135 | 1,468,695 |
Loans payable and other borrowings | 441,190 | 394,943 |
Revolving credit facility borrowings | 0 | 0 |
Mortgage warehouse borrowings | 183,174 | 153,464 |
Liabilities attributable to consolidated real estate not owned | 143,429 | 71,618 |
Total liabilities | 3,484,175 | 3,339,801 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
Stockholders’ equity | ||
Total stockholders’ equity | 5,426,168 | 5,332,286 |
Total liabilities and owners’ equity | $ 8,910,343 | $ 8,672,087 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total revenue | $ 1,699,752 | $ 1,661,857 |
Total cost of revenue | 1,282,907 | 1,262,291 |
Gross margin | 416,845 | 399,566 |
Sales, commissions and other marketing costs | 102,600 | 92,760 |
General and administrative expenses | 67,564 | 66,261 |
Net income from unconsolidated entities | (2,751) | (1,929) |
Interest income, net | (43) | (1,111) |
Other expense/(income), net | 595 | (4,834) |
Income/(loss) before income taxes | 248,880 | 248,419 |
Income tax provision | 57,719 | 57,191 |
Net income before allocation to non-controlling interests | 191,161 | 191,228 |
Net income attributable to non-controlling interests | (891) | (177) |
Net income | $ 190,270 | $ 191,051 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.79 | $ 1.76 |
Diluted (in dollars per share) | $ 1.75 | $ 1.74 |
Weighted average number of shares of common stock: | ||
Basic (in shares) | 106,457 | 108,429 |
Diluted (in shares) | 108,564 | 110,053 |
Home closings revenue, net | ||
Total revenue | $ 1,636,255 | $ 1,612,595 |
Total cost of revenue | 1,243,209 | 1,227,513 |
Land closings revenue | ||
Total revenue | 7,225 | 4,520 |
Total cost of revenue | 5,202 | 4,345 |
Financial services revenue | ||
Total revenue | 46,959 | 35,149 |
Total cost of revenue | 25,143 | 22,148 |
Amenity and other revenue | ||
Total revenue | 9,313 | 9,593 |
Total cost of revenue | $ 9,353 | $ 8,285 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Non- Controlling Interests | |
Balance, beginning of period at Dec. 31, 2022 | $ 4,646,859 | $ 1 | $ 3,025,489 | $ (1,137,138) | $ 2,741,615 | $ 359 | $ 16,533 | |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 107,995,262 | |||||||
Balance, beginning of period (in shares) at Dec. 31, 2022 | 51,396,923 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 191,228 | 191,051 | 177 | |||||
Exercise of stock options and issuance of restricted stock units, net | [1] | 4,493 | 4,493 | |||||
Exercise of stock options and issuance of restricted stock units, net (shares) | [1] | 1,148,175 | ||||||
Repurchase of common stock | $ (3,568) | $ (3,568) | ||||||
Repurchase of common stock (shares) | (109,325) | (109,325) | (109,325) | |||||
Stock compensation expense | $ 7,533 | 7,533 | ||||||
Changes in non-controlling interests of consolidated joint ventures | 1 | 1 | ||||||
Balance, end of period at Mar. 31, 2023 | 4,846,546 | $ 1 | 3,037,515 | $ (1,140,706) | 2,932,666 | 359 | 16,711 | |
Balance, end of period (in shares) at Mar. 31, 2023 | 109,034,112 | |||||||
Balance, end of period (in shares) at Mar. 31, 2023 | 51,506,248 | |||||||
Balance, beginning of period at Dec. 31, 2023 | 5,332,286 | $ 1 | 3,068,597 | $ (1,265,097) | 3,510,544 | 896 | 17,345 | |
Balance, beginning of period (in shares) at Dec. 31, 2023 | 106,917,636 | |||||||
Balance, beginning of period (in shares) at Dec. 31, 2023 | 54,211,879 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 191,161 | 190,270 | 891 | |||||
Exercise of stock options and issuance of restricted stock units, net | [2] | (10,856) | (10,856) | |||||
Exercise of stock options and issuance of restricted stock units, net (shares) | [2] | 633,766 | ||||||
Repurchase of common stock | $ (91,649) | $ (91,649) | ||||||
Repurchase of common stock (shares) | (1,491,485) | (1,491,485) | (1,491,485) | |||||
Stock compensation expense | $ 5,483 | 5,483 | ||||||
Distributions to non-controlling interests of consolidated joint ventures | (257) | (257) | ||||||
Balance, end of period at Mar. 31, 2024 | $ 5,426,168 | $ 1 | $ 3,063,224 | $ (1,356,746) | $ 3,700,814 | $ 896 | $ 17,979 | |
Balance, end of period (in shares) at Mar. 31, 2024 | 106,059,917 | |||||||
Balance, end of period (in shares) at Mar. 31, 2024 | 55,703,364 | |||||||
[1] Dollar amount includes $13.5 million of stock options exercised netted with the value of shares withheld for taxes on the issuance of restricted stock units. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock options exercised | $ 4 | $ 13.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net income before allocation to non-controlling interests | $ 191,161 | $ 191,228 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||
Net income from unconsolidated entities | (2,751) | (1,929) |
Stock compensation expense | 5,483 | 7,533 |
Distributions of earnings from unconsolidated entities | 2,897 | 847 |
Depreciation and amortization | 10,250 | 7,087 |
Operating lease expense | 5,903 | 7,144 |
Debt issuance costs amortization | 741 | 868 |
Changes in operating assets and liabilities: | ||
Real estate inventory and land deposits | (363,923) | 51,596 |
Mortgage loans held for sale, prepaid expenses and other assets | (35,783) | 190,202 |
Customer deposits | 31,570 | 1,993 |
Accounts payable, accrued expenses and other liabilities | (22,133) | (112,097) |
Income taxes payable | 45,848 | 2,977 |
Net cash (used in)/provided by operating activities | (130,737) | 347,449 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (9,111) | (13,807) |
Distributions of capital from unconsolidated entities | 0 | 350 |
Investments of capital into unconsolidated entities | (23,936) | (11,123) |
Net cash used in investing activities | (33,047) | (24,580) |
Cash Flows from Financing Activities | ||
Increase in loans payable and other borrowings | 0 | 2,425 |
Repayments on loans payable and other borrowings | (11,544) | (7,377) |
Borrowings on mortgage warehouse facilities | 713,090 | 634,404 |
Repayments on mortgage warehouse facilities | (683,380) | (794,142) |
Changes in stock option exercises and issuance of restricted stock units, net | (10,856) | 4,493 |
Payment of principal portion of finance lease | (1,327) | (1,305) |
Repurchase of common stock, net | (91,649) | (3,568) |
Cash and distributions to non-controlling interests of consolidated joint ventures | (257) | 0 |
Net cash used in financing activities | (85,923) | (165,070) |
Net Decrease/Increase in Cash and Cash Equivalents and Restricted Cash | (249,707) | 157,799 |
Cash, Cash Equivalents, and Restricted Cash — Beginning of period | 807,099 | 726,635 |
Cash, Cash Equivalents, and Restricted Cash — End of period | 557,392 | 884,434 |
Supplemental Cash Flow Information | ||
Income tax refunds | 120 | 1,943 |
Supplemental Non-Cash Investing and Financing Activities: | ||
Change in loans payable issued to sellers in connection with land purchase contracts | 100,453 | 39,865 |
Change in inventory not owned | $ 71,811 | $ (21,676) |
BUSINESS
BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS Description of the Business |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 (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. Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the unaudited Condensed consolidated statement of operations. The equity from the percentage of the joint ventures not owned by us is presented as “Non-controlling interests” on the unaudited Condensed consolidated statement of stockholders’ equity. The balance of non-controlling interests will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses and distributions or contributions associated with the partners within the joint venture. Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the unaudited Condensed consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of goodwill, valuation of estimated development liabilities, valuation of equity awards, valuation allowance on deferred tax assets, and reserves for warranty and self-insured risks. Actual results could differ from those estimates. Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. The life cycle of a typical community generally ranges from two We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three months ended March 31, 2024 and 2023, 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. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community's inventory until activity resumes. Such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of March 31, 2024 and December 31, 2023, we had no long-term strategic assets. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once it meets all criteria in accordance with ASC 360 Property, Plant and Equipment . Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the three months ended March 31, 2024 and 2023, we had no material fair value adjustments for land held for sale. Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the immediate use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. We incur interest expense on these arrangements. Interest is based on remaining lots to be purchased and is capitalized for the percentage of lots in each project actively under development, with the remainder expensed and included in Interest income, net on the Condensed consolidated statements of operations. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-significant and non-refundable cash deposit. We are not legally obligated to purchase the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. As such, these entities are not consolidated. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the unaudited Condensed consolidated balance sheets. Investments in Consolidated and Unconsolidated Entities Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) should be created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the unaudited Condensed consolidated balance sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net income from unconsolidated entities on the unaudited Condensed consolidated statements of operations when earned and distributions are credited against our Investments in unconsolidated entities on the unaudited Condensed consolidated balance sheets when received. We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment's carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships among the entity's partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded no impairment charges related to the investments in unconsolidated entities for the three months ended March 31, 2024 and 2023 . Treasury Stock — We account for treasury stock, including the shares repurchased as part of our Accelerated Share Repurchase program ("ASR"), in accordance with ASC Topic 505-30, Equity—Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity. Refer to Note 10 - Stockholders' Equity for additional discussion regarding the ASR. Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) . The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land closings revenue: • Revenue from closings of residential real estate is recognized when the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. • Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, clubhouses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. Generally, loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging , requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the statements of operations in the period in which they occur. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires all public entities to report segment information in accordance with Topic 280. The guidance will be effective for the annual reporting period ending December 31, 2024 but entities may early adopt. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
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 (as defined in Note 10) outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of Common Stock were exercised or settled. The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Numerator: Net income $ 190,270 $ 191,051 Denominator: Weighted average shares – basic 106,457 108,429 Restricted stock units 1,112 913 Stock Options 995 711 Weighted average shares – diluted 108,564 110,053 Earnings per common share – basic: Net income $ 1.79 $ 1.76 Earnings per common share – diluted: Net income $ 1.75 $ 1.74 The above calculations of weighted average shares exclude 138,521 and 664,145 of anti-dilutive stock options and unvested performance and non-performance restricted stock units ("RSUs") for the three months ended March 31, 2024 and 2023, respectively. In addition, 155,757 shares relating to our ASR (refer to Note 10 - Stockholders' Equity) were also anti-dilutive and excluded from the above for the three months ended March 31, 2024. There were no ASR transactions in 2023. |
REAL ESTATE INVENTORY
REAL ESTATE INVENTORY | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
REAL ESTATE INVENTORY | REAL ESTATE INVENTORY Inventory consists of the following: As of (Dollars in thousands) March 31, December 31, Real estate developed and under development $ 4,076,312 $ 3,855,534 Real estate held for development or held for sale (1) 46,312 29,317 Total land inventory 4,122,624 3,884,851 Operating communities (2) 1,542,078 1,414,528 Capitalized interest 177,222 174,449 Total owned inventory 5,841,924 5,473,828 Consolidated real estate not owned 143,429 71,618 Total real estate inventory $ 5,985,353 $ 5,545,446 (1) Real estate held for development or held for sale includes properties which are not in active production. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes. We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the property owner and its creditors generally only have recourse against us in the form of retaining any non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased. A summary of owned and controlled lots is as follows: As of (Dollars in thousands) March 31, 2024 December 31, 2023 Owned lots: Undeveloped 13,321 13,418 Under development 9,708 8,848 Finished 12,177 11,811 Total owned lots 35,206 34,077 Controlled lots: Land option purchase contracts 8,145 8,621 Land banking arrangements 5,995 5,818 Other controlled lots (1) 24,836 23,846 Total controlled lots 38,976 38,285 Total owned and controlled lots 74,182 72,362 Homes in inventory 8,578 7,867 (1) Other controlled lots include single transaction take-downs and lots from our portion of unconsolidated JVs. Lots which have started vertical construction have been excluded from total owned lots. Controlled lots represent lots in which we have a contractual right, generally through an option contract or land banking arrangement as well as paid a land deposit to a seller for an underlying real estate asset. Homes in inventory include any lots with vertical construction. Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands): Three Months Ended 2024 2023 Interest capitalized - beginning of period $ 174,449 $ 190,123 Interest incurred and capitalized (1) 26,398 34,133 Interest amortized to cost of home closings (23,625) (27,649) Interest capitalized - end of period $ 177,222 $ 196,607 (1) |
INVESTMENTS IN CONSOLIDATED AND
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES Unconsolidated Entities Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands): As of March 31, December 31, Assets: Real estate inventory $ 1,011,378 $ 952,223 Other assets 242,828 182,517 Total assets $ 1,254,206 $ 1,134,740 Liabilities and owners’ equity: Debt $ 369,954 $ 317,224 Other liabilities 63,622 50,739 Total liabilities $ 433,576 $ 367,963 Owners’ equity: TMHC $ 369,982 $ 346,192 Others 450,648 420,585 Total owners’ equity $ 820,630 $ 766,777 Total liabilities and owners’ equity $ 1,254,206 $ 1,134,740 Three Months Ended 2024 2023 Revenues $ 73,767 $ 19,536 Costs and expenses (66,643) (14,699) Net income from unconsolidated entities $ 7,124 $ 4,837 TMHC’s share in net income of unconsolidated entities $ 2,751 $ 1,929 Distributions to TMHC from unconsolidated entities $ 2,897 $ 1,197 Consolidated Entities As of March 31, 2024, assets of the consolidated joint ventures totaled $266.8 million, of which $35.9 million was cash and cash equivalents, $66.7 million was owned real estate inventory, and $120.8 million was property and equipment, net (primarily related to Urban Form). The majority of the property and equipment, net balance is held for investment as of March 31, 2024. As of December 31, 2023, the assets of the consolidated joint ventures totaled $265.2 million, of which $29.8 million was cash and cash equivalents, $70.2 million was owned real estate inventory, and $121.3 million was property and equipment, net. The liabilities of the consolidated joint ventures totaled $124.1 million and $133.8 million as of |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 Real estate development costs to complete $ 45,723 $ 46,114 Compensation and employee benefits 77,393 149,095 Self-insurance and warranty reserves 186,948 184,448 Interest payable 26,039 31,042 Property and sales taxes payable 29,442 30,887 Other accruals 93,550 107,488 Total accrued expenses and other liabilities $ 459,095 $ 549,074 Self-Insurance and Warranty Reserves – We accrue for the expected costs associated with our limited warranty, deductibles and self-insured exposure under our various insurance policies within Beneva Indemnity Company (“Beneva”), a wholly owned subsidiary. A summary of the changes in reserves are as follows (in thousands): Three Months Ended 2024 2023 Reserve - beginning of period $ 184,448 $ 161,675 Additions to reserves 20,666 14,447 Cost of claims incurred (21,193) (20,508) Changes in estimates to pre-existing reserves 3,027 2,608 Reserve - end of period $ 186,948 $ 158,222 Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those reserved and such differences could be material, resulting in a change in future estimated reserves. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Total debt consists of the following (in thousands): As of March 31, 2024 December 31, 2023 Principal Unamortized Carrying Principal Unamortized Carrying 5.875% Senior Notes due 2027 500,000 (2,476) 497,524 500,000 (2,672) 497,328 6.625% Senior Notes due 2027 27,070 950 28,020 27,070 1,022 28,092 5.75% Senior Notes due 2028 450,000 (2,394) 447,606 450,000 (2,551) 447,449 5.125% Senior Notes due 2030 500,000 (4,015) 495,985 500,000 (4,174) 495,826 Senior Notes subtotal $ 1,477,070 $ (7,935) $ 1,469,135 $ 1,477,070 $ (8,375) $ 1,468,695 Loans payable and other borrowings 441,190 — 441,190 394,943 — 394,943 $1 Billion Revolving Credit Facility (1)(2) — — — — — — $100 Million Revolving Credit Facility (1)(2) — — — — — — Mortgage warehouse borrowings 183,174 — 183,174 153,464 — 153,464 Total debt $ 2,101,434 $ (7,935) $ 2,093,499 $ 2,025,477 $ (8,375) $ 2,017,102 (1) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Condensed consolidated balance sheets. (2) The $1 Billion Revolving Credit Facility Agreement together with the $100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”. Debt Instruments Excluding the debt instruments discussed below, the terms governing all other debt instruments listed in the table above have not substantially changed from the year ended December 31, 2023. For information regarding such instruments, refer to Note 8 - Debt to the Consolidated Financial Statements in our Annual Report. As of March 31, 2024, we were in compliance with all of the covenants in the debt instruments listed in the table above. $1 Billion Revolving Credit Facility Our $1 Billion Revolving Credit Facility has a maturity date of March 11, 2027. We had no outstanding borrowings under our $1 Billion Revolving Credit Facility as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, we had $2.7 million and $2.9 million, respectively, of unamortized debt issuance costs relating to our $1 Billion Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the unaudited Condensed consolidated balance sheets. As of March 31, 2024 and December 31, 2023, we had $59.9 million and $61.2 million, respectively, of utilized letters of credit, resulting in $940.1 million and $938.8 million, respectively, of availability under the $1 Billion Revolving Credit Facility. As of March 31, 2024, we were in compliance with all of the covenants under the $1 Billion Revolving Credit Facility. Mortgage Warehouse Borrowings The following is a summary of our mortgage warehouse borrowings (in thousands): As of March 31, 2024 Facility Amount Facility Interest Rate (2) Expiration Collateral (1) Warehouse A $ — $ 60,000 Term SOFR + 1.70% on Demand Mortgage Loans Warehouse C 59,603 100,000 Term SOFR + 1.50% on Demand Mortgage Loans Warehouse D 60,511 100,000 Daily SOFR + 1.50% September 4, 2024 Mortgage Loans Warehouse E 63,060 100,000 Term SOFR + 1.60% on Demand Mortgage Loans Total $ 183,174 $ 360,000 As of December 31, 2023 Facility Amount Facility Interest Rate (2) Expiration Collateral (1) Warehouse A $ 13,477 $ 60,000 Term SOFR + 1.70% on Demand Mortgage Loans Warehouse C 25,567 100,000 Term SOFR + 1.65% on Demand Mortgage Loans Warehouse D 56,745 100,000 Daily SOFR + 1.50% September 4, 2024 Mortgage Loans Warehouse E 57,675 100,000 Term SOFR + 1.60% on Demand Mortgage Loans Total $ 153,464 $ 360,000 (1) The mortgage warehouse borrowings outstanding as of March 31, 2024 and December 31, 2023 were collateralized by $216.6 million and $193.3 million, respectively, of mortgage loans held for sale. (2) Secured Overnight Financing Rate ("SOFR") Loans Payable and Other Borrowings Loans payable and other borrowings as of March 31, 2024 and December 31, 2023 consist of project-level debt due to various land sellers and financial institutions for specific communities. Project-level debt is generally secured by the land that was acquired and the principal payments generally coincide with corresponding project lot closings or a principal reduction schedule. Loans payable bear interest at rates that ranged from 0% to 10% and 0% to 9% at March 31, 2024 and December 31, 2023, respectively. We impute interest for loans with no stated interest rates. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2024 | |
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. Derivative assets and liabilities include interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our senior notes is derived from quoted market prices by independent dealers in markets that are not active. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of March 31, 2024, when compared to December 31, 2023. The carrying value and fair value of our financial instruments are as follows: March 31, 2024 December 31, 2023 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 216,633 $ 216,633 $ 193,344 $ 193,344 IRLCs 3 (795) (795) 1,489 1,489 MBSs 2 (2,039) (2,039) (5,055) (5,055) Mortgage warehouse borrowings 2 183,174 183,174 153,464 153,464 Loans payable and other borrowings 2 441,190 441,190 394,943 394,943 5.875% Senior Notes due 2027 (1) 2 497,524 498,790 497,328 502,500 6.625% Senior Notes due 2027 (1) 2 28,020 26,393 28,092 26,529 5.75% Senior Notes due 2028 (1) 2 447,606 446,103 447,449 451,571 5.125% Senior Notes due 2030 (1) 2 495,985 475,805 495,826 483,690 (1) Carrying value for senior notes, as presented, includes unamortized debt issuance costs and premiums. Debt issuance costs are not factored into the fair value calculation for the senior notes. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The fair value of our inventories at March 31, 2024 and December 31, 2023 was not determined as there were no events or circumstances that indicated their carrying value was not recoverable. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rate for the three months ended March 31, 2024 was 23.2%, compared to 23.0% for the same period in 2023. For the three months ended March 31, 2024, the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to state income taxes, excess tax benefits related to stock-based compensation, and credits related to homebuilding activities. There were no unrecognized tax benefits as of March 31, 2024 or December 31, 2023. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
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 December 15, 2023 the Board of Directors authorized a renewal of the Company's then-existing stock repurchase program which permits the repurchase up to $500 million of the Company’s common stock through December 31, 2025. Repurchases under the program may occur from time to time through open market purchases, privately negotiated transactions or other transactions. On March 5, 2024, using the availability under our stock repurchase program, we entered into an ASR agreement and paid $50.0 million to receive an initial delivery of 705,343 shares of our common stock in accordance with the ASR agreement with a third-party financial institution. The final settlement of the ASR is expected to occur no later than the third quarter of 2024, at which time, a volume-weighted average price calculation over the term of the ASR agreement will be used to determine the final number of shares to be delivered. We accounted for the ASR as a common stock repurchase and a forward contract indexed to our own common stock. We determined that the equity classification criteria was met for the forward contract; therefore, it was not accounted for as a derivative instrument. The following table summarizes share repurchase activity for the periods presented: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amount available for repurchase — beginning of period $ 494,489 $ 279,138 Amount repurchased (1) (91,649) (3,568) Amount available for repurchase — end of period $ 402,840 $ 275,570 (1) This amount includes $50.0 million of accelerated share repurchase. We repurchased a total of 1,491,485 and 109,325 shares during the three months ended March 31, 2024 and 2023. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
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, RSUs, performance-based restricted stock units (“PRSUs”), and other equity-based awards deliverable in shares of our Common Stock. As of March 31, 2024, we had an aggregate of 4,898,061 shares of Common Stock available for future grants under the Plan. The following table provides the outstanding balance of RSUs, PRSUs, and stock options as of March 31, 2024: RSUs and PRSUs Stock Options Number of Units Weighted Average Number of Options Weighted Balance at March 31, 2024 1,337,595 $ 37.72 2,236,404 $ 28.44 The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in General and administrative expenses in the unaudited Condensed consolidated statements of operations (in thousands): Three Months Ended 2024 2023 Restricted stock units (1) $ 4,772 $ 6,675 Stock options 711 858 Total stock compensation $ 5,483 $ 7,533 (1) Includes compensation expense related to time-based RSUs and PRSUs. |
OPERATING AND REPORTING SEGMENT
OPERATING AND REPORTING SEGMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
OPERATING AND REPORTING SEGMENTS | OPERATING AND REPORTING SEGMENTS We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. The activity from our Build-to-Rent and Urban Form operations are included in our Corporate segment. We also have a Financial Services reporting segment. Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows (in thousands): Three Months Ended March 31, 2024 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 547,311 $ 478,490 $ 622,829 $ 46,959 $ 4,163 $ 1,699,752 Gross margin 145,888 124,231 123,664 21,816 1,246 416,845 Selling (2) , general and administrative expenses (46,201) (39,393) (44,748) — (39,822) (170,164) Net (loss)/income from unconsolidated entities — (41) (26) 2,897 (79) 2,751 Interest and other (expense)/income, net (3) (827) (2,415) (3,518) 730 5,478 (552) Income/(loss) before income taxes $ 98,860 $ 82,382 $ 75,372 $ 25,443 $ (33,177) $ 248,880 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Includes sales, commissions, and other marketing costs. (3) Interest and other (expense)/income, net includes pre-acquisition write-offs on terminated projects. Three Months Ended March 31, 2023 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 610,813 $ 465,011 $ 547,906 $ 35,149 $ 2,978 $ 1,661,857 Gross margin 165,707 111,313 108,627 13,001 918 399,566 Selling (2) , general and administrative expenses (43,047) (36,956) (40,484) — (38,534) (159,021) Net (loss)/income from unconsolidated entities — (82) (235) 2,275 (29) 1,929 Interest and other (expense)/income, net (3) (1,212) (1,341) 3,779 — 4,719 5,945 Income/(loss) before income taxes $ 121,448 $ 72,934 $ 71,687 $ 15,276 $ (32,926) $ 248,419 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Includes sales, commissions, and other marketing costs. (3) Interest and other (expense)/income, net includes pre-acquisition write-offs on terminated projects. As of March 31, 2024 East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 2,172,523 $ 1,205,995 $ 2,805,878 $ — $ — $ 6,184,396 Investments in unconsolidated entities 63,628 132,007 98,491 5,483 70,373 369,982 Other assets 164,058 221,082 596,523 320,556 1,053,746 2,355,965 Total assets $ 2,400,209 $ 1,559,084 $ 3,500,892 $ 326,039 $ 1,124,119 $ 8,910,343 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2023 East Central West Financial Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,909,084 $ 1,181,014 $ 2,658,565 $ — $ — $ 5,748,663 Investments in unconsolidated entities 63,628 125,610 88,219 5,483 63,252 346,192 Other assets 177,739 214,685 616,210 298,451 1,270,147 2,577,232 Total assets $ 2,150,451 $ 1,521,309 $ 3,362,994 $ 303,934 $ 1,333,399 $ 8,672,087 (1) Includes the assets from our Build-To-Rent and Urban Form operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
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 $1.3 billion as of March 31, 2024 and December 31, 2023. Although significant development and construction activities have been completed related to these site improvements, the bonds are generally not released until all development and construction activities are completed. We do not believe that it is probable that any outstanding bonds as of March 31, 2024 will be drawn upon. Purchase Commitments —We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in the routine conduct of our business. We have a number of land purchase option contracts and land banking agreements, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property and the property owner and its creditors generally have no recourse. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits. The aggregate purchase price for land under these contracts was $1.5 billion at March 31, 2024 and December 31, 2023. Legal Proceedings — We are involved in various litigation and legal claims in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss can be reasonably estimated. At March 31, 2024 and December 31, 2023, our legal accruals were $23.2 million and $26.2 million, respectively. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. Predicting the ultimate resolution of the pending matters, the related timing, or the eventual loss associated with these matters is inherently difficult. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the accrued liabilities relating to such matter. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. On April 26, 2017, a class action complaint was filed in the Circuit Court of the Tenth Judicial Circuit in and for Polk County, Florida by Norman Gundel, William Mann, and Brenda Taylor against Avatar Properties, Inc. (an acquired AV Homes entity) ("Avatar"), generally alleging that our collection of club membership fees in connection with the use of one of our amenities in our East homebuilding segment violates various laws relating to homeowner associations and other Florida-specific laws (the "Solivita litigation"). The class action complaint sought 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 Sixth District Court of Appeal on November 29, 2021, and the plaintiffs agreed to continue to pay club membership fees pending the outcome of the appeal. On June 23, 2023 the District Court affirmed the trial court judgment in a split decision, with three separate opinions. Recognizing the potential “far-reaching effects on homeowners associations throughout the State,” the District Court certified a question of great public importance to the Florida Supreme Court, and we filed a notice to invoke the discretionary review of the Florida Supreme Court. On November 2, 2023, the Florida Supreme Court declined to exercise jurisdiction. Following the Florida Supreme Court’s decision, we paid $64.7 million to the plaintiffs during the quarter ended December 31, 2023, which included the amount of the trial court’s judgment, club membership fees received during the pendency of our appeal, pre-judgment interest and post-judgment interest. We expect to incur additional costs with respect to the plaintiff’s legal fees and costs; however, such amount cannot be reasonably estimated. Plaintiffs have also asserted claims for additional pre-judgment interest, for which we believe we have substantial defenses. Hearings on the plaintiff's pre-judgment interest and legal fees have been scheduled for the third quarter of 2024. After reviewing our amenity arrangements in our Florida communities to determine whether such arrangements might subject the Company to liability in light of the outcome of the Solivita litigation described above, we identified one additional community with similar claims. On August 13, 2020, Slade Chelbian, a resident of our Bellalago community in Kissimmee, Florida, filed a purported class action suit against Avatar, AV Homes, Inc. and Taylor Morrison Home Corporation in the Circuit Court of the Ninth Circuit in and for Osceola County, Florida, generally alleging that Avatar cannot earn profits from community members for use of club amenities where membership in the club is mandatory for all residents and failure to pay club membership fees could result in the foreclosure of their homes by Avatar. On February 25, 2022, the court stayed the action pending the resolution of the Solivita litigation. Following the resolution of the Solivita appeal, the court held a case management conference wherein the court scheduled a class certification hearing for the fourth quarter of 2024, but no class has been certified to date. While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, we have recorded an accrual for our estimated liability for this matter, which is reflected in our legal accruals as of March 31, 2024. Leases — Our leases primarily consist of office space, construction trailers, model home leasebacks, a ground lease, equipment, and storage units. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases |
MORTGAGE HEDGING ACTIVITIES
MORTGAGE HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MORTGAGE HEDGING ACTIVITIES | MORTGAGE HEDGING ACTIVITIES The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of March 31, 2024 December 31, 2023 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ (795) $ 271,291 $ 1,489 $ 219,129 MBSs (2,039) 481,000 (5,055) 285,000 Total $ (2,834) $ (3,566) (1) The notional amounts in the table above include mandatory and best effort mortgages, that have been locked and approved. Total commitments to originate loans approximated $291.8 million and $242.6 million as of March 31, 2024 and December 31, 2023, respectively. This amount represents the commitments to originate loans that have been locked and approved by underwriting. The notional amounts in the table above includes mandatory and best effort loans that have been locked and approved by underwriting. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income from unconsolidated entities | $ 190,270 | $ 191,051 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
William H. Lyon [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Lyon Shareholder 2012, LLC and the William Harwell Lyon Separate Property Trust dated 07/28/2000 adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5‑1(c) of the Securities Exchange Act of 1934. William H. Lyon, a member of our Board of Directors, is manager of Lyon Shareholder 2012, LLC and trustee of the William Harwell Lyon Separate Property Trust dated 07/28/2000. Such trading plan provides for an aggregate sale of up to 2,735,000 shares of the Common Stock, less shares of Common Stock sold under prior 10b5-1 trading plans previously adopted by such entities, between June 14, 2024 and June 3, 2025. |
Name | William Harwell Lyon |
Title | Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 354 days |
Aggregate Available | 2,735,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 (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. |
Joint Ventures | Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the unaudited Condensed consolidated statement of operations. The equity from the percentage of the joint ventures not owned by us is presented as “Non-controlling interests” on the unaudited Condensed consolidated statement of stockholders’ equity. The balance of non-controlling interests will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses and distributions or contributions associated with the partners within the joint venture. |
Use of Estimates | 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 accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of goodwill, valuation of estimated development liabilities, valuation of equity awards, valuation allowance on deferred tax assets, and reserves for warranty and self-insured risks. Actual results could differ from those estimates. |
Real Estate Inventory | Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. The life cycle of a typical community generally ranges from two We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three months ended March 31, 2024 and 2023, 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. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community's inventory until activity resumes. Such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of March 31, 2024 and December 31, 2023, we had no long-term strategic assets. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once it meets all criteria in accordance with ASC 360 Property, Plant and Equipment . Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the three months ended March 31, 2024 and 2023, we had no material fair value adjustments for land held for sale. Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the immediate use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. We incur interest expense on these arrangements. Interest is based on remaining lots to be purchased and is capitalized for the percentage of lots in each project actively under development, with the remainder expensed and included in Interest income, net on the Condensed consolidated statements of operations. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-significant and non-refundable cash deposit. We are not legally obligated to purchase the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. As such, these entities are not consolidated. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the unaudited Condensed consolidated balance sheets. |
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 risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) should be created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the unaudited Condensed consolidated balance sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net income from unconsolidated entities on the unaudited Condensed consolidated statements of operations when earned and distributions are credited against our Investments in unconsolidated entities on the unaudited Condensed consolidated balance sheets when received. |
Treasury Stock | Treasury Stock — We account for treasury stock, including the shares repurchased as part of our Accelerated Share Repurchase program ("ASR"), in accordance with ASC Topic 505-30, Equity—Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity. Refer to Note 10 - Stockholders' Equity for additional discussion regarding the ASR. |
Revenue Recognition | Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) . The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land closings revenue: • Revenue from closings of residential real estate is recognized when the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. • Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, clubhouses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. Generally, loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging , requires that all hedging instruments be recognized as assets or liabilities on |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires all public entities to report segment information in accordance with Topic 280. The guidance will be effective for the annual reporting period ending December 31, 2024 but entities may early adopt. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Components of Basic and Diluted Earnings Per Share | The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Numerator: Net income $ 190,270 $ 191,051 Denominator: Weighted average shares – basic 106,457 108,429 Restricted stock units 1,112 913 Stock Options 995 711 Weighted average shares – diluted 108,564 110,053 Earnings per common share – basic: Net income $ 1.79 $ 1.76 Earnings per common share – diluted: Net income $ 1.75 $ 1.74 |
REAL ESTATE INVENTORY (Tables)
REAL ESTATE INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of (Dollars in thousands) March 31, December 31, Real estate developed and under development $ 4,076,312 $ 3,855,534 Real estate held for development or held for sale (1) 46,312 29,317 Total land inventory 4,122,624 3,884,851 Operating communities (2) 1,542,078 1,414,528 Capitalized interest 177,222 174,449 Total owned inventory 5,841,924 5,473,828 Consolidated real estate not owned 143,429 71,618 Total real estate inventory $ 5,985,353 $ 5,545,446 (1) Real estate held for development or held for sale includes properties which are not in active production. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes. |
Summary of Development Status of Land Inventory | A summary of owned and controlled lots is as follows: As of (Dollars in thousands) March 31, 2024 December 31, 2023 Owned lots: Undeveloped 13,321 13,418 Under development 9,708 8,848 Finished 12,177 11,811 Total owned lots 35,206 34,077 Controlled lots: Land option purchase contracts 8,145 8,621 Land banking arrangements 5,995 5,818 Other controlled lots (1) 24,836 23,846 Total controlled lots 38,976 38,285 Total owned and controlled lots 74,182 72,362 Homes in inventory 8,578 7,867 (1) Other controlled lots include single transaction take-downs and lots from our portion of unconsolidated JVs. |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred and amortized is as follows (in thousands): Three Months Ended 2024 2023 Interest capitalized - beginning of period $ 174,449 $ 190,123 Interest incurred and capitalized (1) 26,398 34,133 Interest amortized to cost of home closings (23,625) (27,649) Interest capitalized - end of period $ 177,222 $ 196,607 (1) |
INVESTMENTS IN CONSOLIDATED A_2
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method | Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands): As of March 31, December 31, Assets: Real estate inventory $ 1,011,378 $ 952,223 Other assets 242,828 182,517 Total assets $ 1,254,206 $ 1,134,740 Liabilities and owners’ equity: Debt $ 369,954 $ 317,224 Other liabilities 63,622 50,739 Total liabilities $ 433,576 $ 367,963 Owners’ equity: TMHC $ 369,982 $ 346,192 Others 450,648 420,585 Total owners’ equity $ 820,630 $ 766,777 Total liabilities and owners’ equity $ 1,254,206 $ 1,134,740 Three Months Ended 2024 2023 Revenues $ 73,767 $ 19,536 Costs and expenses (66,643) (14,699) Net income from unconsolidated entities $ 7,124 $ 4,837 TMHC’s share in net income of unconsolidated entities $ 2,751 $ 1,929 Distributions to TMHC from unconsolidated entities $ 2,897 $ 1,197 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of March 31, 2024 December 31, 2023 Real estate development costs to complete $ 45,723 $ 46,114 Compensation and employee benefits 77,393 149,095 Self-insurance and warranty reserves 186,948 184,448 Interest payable 26,039 31,042 Property and sales taxes payable 29,442 30,887 Other accruals 93,550 107,488 Total accrued expenses and other liabilities $ 459,095 $ 549,074 |
Summary of Changes in Reserves | A summary of the changes in reserves are as follows (in thousands): Three Months Ended 2024 2023 Reserve - beginning of period $ 184,448 $ 161,675 Additions to reserves 20,666 14,447 Cost of claims incurred (21,193) (20,508) Changes in estimates to pre-existing reserves 3,027 2,608 Reserve - end of period $ 186,948 $ 158,222 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Borrowings | Total debt consists of the following (in thousands): As of March 31, 2024 December 31, 2023 Principal Unamortized Carrying Principal Unamortized Carrying 5.875% Senior Notes due 2027 500,000 (2,476) 497,524 500,000 (2,672) 497,328 6.625% Senior Notes due 2027 27,070 950 28,020 27,070 1,022 28,092 5.75% Senior Notes due 2028 450,000 (2,394) 447,606 450,000 (2,551) 447,449 5.125% Senior Notes due 2030 500,000 (4,015) 495,985 500,000 (4,174) 495,826 Senior Notes subtotal $ 1,477,070 $ (7,935) $ 1,469,135 $ 1,477,070 $ (8,375) $ 1,468,695 Loans payable and other borrowings 441,190 — 441,190 394,943 — 394,943 $1 Billion Revolving Credit Facility (1)(2) — — — — — — $100 Million Revolving Credit Facility (1)(2) — — — — — — Mortgage warehouse borrowings 183,174 — 183,174 153,464 — 153,464 Total debt $ 2,101,434 $ (7,935) $ 2,093,499 $ 2,025,477 $ (8,375) $ 2,017,102 (1) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Condensed consolidated balance sheets. (2) The $1 Billion Revolving Credit Facility Agreement together with the $100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”. |
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage warehouse borrowings (in thousands): As of March 31, 2024 Facility Amount Facility Interest Rate (2) Expiration Collateral (1) Warehouse A $ — $ 60,000 Term SOFR + 1.70% on Demand Mortgage Loans Warehouse C 59,603 100,000 Term SOFR + 1.50% on Demand Mortgage Loans Warehouse D 60,511 100,000 Daily SOFR + 1.50% September 4, 2024 Mortgage Loans Warehouse E 63,060 100,000 Term SOFR + 1.60% on Demand Mortgage Loans Total $ 183,174 $ 360,000 As of December 31, 2023 Facility Amount Facility Interest Rate (2) Expiration Collateral (1) Warehouse A $ 13,477 $ 60,000 Term SOFR + 1.70% on Demand Mortgage Loans Warehouse C 25,567 100,000 Term SOFR + 1.65% on Demand Mortgage Loans Warehouse D 56,745 100,000 Daily SOFR + 1.50% September 4, 2024 Mortgage Loans Warehouse E 57,675 100,000 Term SOFR + 1.60% on Demand Mortgage Loans Total $ 153,464 $ 360,000 (1) The mortgage warehouse borrowings outstanding as of March 31, 2024 and December 31, 2023 were collateralized by $216.6 million and $193.3 million, respectively, of mortgage loans held for sale. (2) Secured Overnight Financing Rate ("SOFR") |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of our financial instruments are as follows: March 31, 2024 December 31, 2023 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 216,633 $ 216,633 $ 193,344 $ 193,344 IRLCs 3 (795) (795) 1,489 1,489 MBSs 2 (2,039) (2,039) (5,055) (5,055) Mortgage warehouse borrowings 2 183,174 183,174 153,464 153,464 Loans payable and other borrowings 2 441,190 441,190 394,943 394,943 5.875% Senior Notes due 2027 (1) 2 497,524 498,790 497,328 502,500 6.625% Senior Notes due 2027 (1) 2 28,020 26,393 28,092 26,529 5.75% Senior Notes due 2028 (1) 2 447,606 446,103 447,449 451,571 5.125% Senior Notes due 2030 (1) 2 495,985 475,805 495,826 483,690 (1) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stock Repurchases | The following table summarizes share repurchase activity for the periods presented: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amount available for repurchase — beginning of period $ 494,489 $ 279,138 Amount repurchased (1) (91,649) (3,568) Amount available for repurchase — end of period $ 402,840 $ 275,570 (1) This amount includes $50.0 million of accelerated share repurchase. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Payment Arrangement Activity | The following table provides the outstanding balance of RSUs, PRSUs, and stock options as of March 31, 2024: RSUs and PRSUs Stock Options Number of Units Weighted Average Number of Options Weighted Balance at March 31, 2024 1,337,595 $ 37.72 2,236,404 $ 28.44 |
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 unaudited Condensed consolidated statements of operations (in thousands): Three Months Ended 2024 2023 Restricted stock units (1) $ 4,772 $ 6,675 Stock options 711 858 Total stock compensation $ 5,483 $ 7,533 (1) Includes compensation expense related to time-based RSUs and PRSUs. |
OPERATING AND REPORTING SEGME_2
OPERATING AND REPORTING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 East Central West Financial Corporate and Unallocated (1) Total Total revenue $ 547,311 $ 478,490 $ 622,829 $ 46,959 $ 4,163 $ 1,699,752 Gross margin 145,888 124,231 123,664 21,816 1,246 416,845 Selling (2) , general and administrative expenses (46,201) (39,393) (44,748) — (39,822) (170,164) Net (loss)/income from unconsolidated entities — (41) (26) 2,897 (79) 2,751 Interest and other (expense)/income, net (3) (827) (2,415) (3,518) 730 5,478 (552) Income/(loss) before income taxes $ 98,860 $ 82,382 $ 75,372 $ 25,443 $ (33,177) $ 248,880 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Includes sales, commissions, and other marketing costs. (3) Interest and other (expense)/income, net includes pre-acquisition write-offs on terminated projects. Three Months Ended March 31, 2023 East Central West Financial Services Corporate and Unallocated (1) Total Total revenue $ 610,813 $ 465,011 $ 547,906 $ 35,149 $ 2,978 $ 1,661,857 Gross margin 165,707 111,313 108,627 13,001 918 399,566 Selling (2) , general and administrative expenses (43,047) (36,956) (40,484) — (38,534) (159,021) Net (loss)/income from unconsolidated entities — (82) (235) 2,275 (29) 1,929 Interest and other (expense)/income, net (3) (1,212) (1,341) 3,779 — 4,719 5,945 Income/(loss) before income taxes $ 121,448 $ 72,934 $ 71,687 $ 15,276 $ (32,926) $ 248,419 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Includes sales, commissions, and other marketing costs. (3) Interest and other (expense)/income, net includes pre-acquisition write-offs on terminated projects. |
Summary of Assets by Segment | As of March 31, 2024 East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 2,172,523 $ 1,205,995 $ 2,805,878 $ — $ — $ 6,184,396 Investments in unconsolidated entities 63,628 132,007 98,491 5,483 70,373 369,982 Other assets 164,058 221,082 596,523 320,556 1,053,746 2,355,965 Total assets $ 2,400,209 $ 1,559,084 $ 3,500,892 $ 326,039 $ 1,124,119 $ 8,910,343 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2023 East Central West Financial Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,909,084 $ 1,181,014 $ 2,658,565 $ — $ — $ 5,748,663 Investments in unconsolidated entities 63,628 125,610 88,219 5,483 63,252 346,192 Other assets 177,739 214,685 616,210 298,451 1,270,147 2,577,232 Total assets $ 2,150,451 $ 1,521,309 $ 3,362,994 $ 303,934 $ 1,333,399 $ 8,672,087 (1) Includes the assets from our Build-To-Rent and Urban Form operations. |
MORTGAGE HEDGING ACTIVITIES (Ta
MORTGAGE HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ (795) $ 271,291 $ 1,489 $ 219,129 MBSs (2,039) 481,000 (5,055) 285,000 Total $ (2,834) $ (3,566) (1) The notional amounts in the table above include mandatory and best effort mortgages, that have been locked and approved. |
BUSINESS (Details)
BUSINESS (Details) | 3 Months Ended |
Mar. 31, 2024 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 (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Significant Accounting Policies [Line Items] | ||
Impairment, long-lived asset, held-for-use | $ 0 | $ 0 |
Impairment of long-lived assets to be disposed of | 0 | 0 |
Equity method investment, other than temporary impairment | $ 0 | $ 0 |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Life cycle of communities (in years) | 2 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Life cycle of communities (in years) | 5 years |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income | $ 190,270 | $ 191,051 |
Denominator: | ||
Weighted average shares - basic (in shares) | 106,457 | 108,429 |
Weighted average shares - diluted (in shares) | 108,564 | 110,053 |
Earnings per common share — basic: | ||
Net income (in dollars per share) | $ 1.79 | $ 1.76 |
Earnings per common share — diluted: | ||
Net income (in dollars per share) | $ 1.75 | $ 1.74 |
Restricted stock units | ||
Denominator: | ||
Restricted stock units and stock options (in shares) | 1,112 | 913 |
Stock Options | ||
Denominator: | ||
Restricted stock units and stock options (in shares) | 995 | 711 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock options and restricted stock units (RSUs) | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of earnings per share (in shares) | 138,521 | 664,145 |
Accelerated Share Repurchase (ASRs) | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of earnings per share (in shares) | 155,757 |
REAL ESTATE INVENTORY - Schedul
REAL ESTATE INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Real Estate [Abstract] | ||||
Real estate developed and under development | $ 4,076,312 | $ 3,855,534 | ||
Real estate held for development or held for sale | 46,312 | 29,317 | ||
Total land inventory | 4,122,624 | 3,884,851 | ||
Operating communities | 1,542,078 | 1,414,528 | ||
Capitalized interest | 177,222 | 174,449 | $ 196,607 | $ 190,123 |
Total owned inventory | 5,841,924 | 5,473,828 | ||
Consolidated real estate not owned | 143,429 | 71,618 | ||
Total real estate inventory | $ 5,985,353 | $ 5,545,446 |
REAL ESTATE INVENTORY - Sched_2
REAL ESTATE INVENTORY - Schedule of Development Status of Land Inventory (Details) | Mar. 31, 2024 lot home | Dec. 31, 2023 lot home |
Inventory [Line Items] | ||
Total owned lots | 35,206 | 34,077 |
Total controlled lots | 38,976 | 38,285 |
Total owned and controlled lots | 74,182 | 72,362 |
Homes in inventory | home | 8,578 | 7,867 |
Undeveloped | ||
Inventory [Line Items] | ||
Total owned lots | 13,321 | 13,418 |
Under development | ||
Inventory [Line Items] | ||
Total owned lots | 9,708 | 8,848 |
Finished | ||
Inventory [Line Items] | ||
Total owned lots | 12,177 | 11,811 |
Land option purchase contracts | ||
Inventory [Line Items] | ||
Total controlled lots | 8,145 | 8,621 |
Land banking arrangements | ||
Inventory [Line Items] | ||
Total controlled lots | 5,995 | 5,818 |
Other controlled lots | ||
Inventory [Line Items] | ||
Total controlled lots | 24,836 | 23,846 |
REAL ESTATE INVENTORY - Sched_3
REAL ESTATE INVENTORY - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Capitalized Interest Costs [Roll Forward] | ||
Interest capitalized - beginning of period | $ 174,449 | $ 190,123 |
Interest incurred and capitalized | 26,398 | 34,133 |
Interest amortized to cost of home closings | (23,625) | (27,649) |
Interest capitalized - end of period | $ 177,222 | $ 196,607 |
INVESTMENTS IN CONSOLIDATED A_3
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Real estate inventory | $ 4,122,624 | $ 3,884,851 |
Other assets | 2,355,965 | 2,577,232 |
Total assets | 8,910,343 | 8,672,087 |
Liabilities and owners’ equity: | ||
Debt | 2,093,499 | 2,017,102 |
Total liabilities | 3,484,175 | 3,339,801 |
Owners’ equity: | ||
Total liabilities and owners’ equity | 8,910,343 | 8,672,087 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Assets: | ||
Real estate inventory | 1,011,378 | 952,223 |
Other assets | 242,828 | 182,517 |
Total assets | 1,254,206 | 1,134,740 |
Liabilities and owners’ equity: | ||
Debt | 369,954 | 317,224 |
Other liabilities | 63,622 | 50,739 |
Total liabilities | 433,576 | 367,963 |
Owners’ equity: | ||
TMHC | 369,982 | 346,192 |
Others | 450,648 | 420,585 |
Total owners’ equity | 820,630 | 766,777 |
Total liabilities and owners’ equity | $ 1,254,206 | $ 1,134,740 |
INVESTMENTS IN CONSOLIDATED A_4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 1,699,752 | $ 1,661,857 |
Costs and expenses | (1,282,907) | (1,262,291) |
Net income from unconsolidated entities | 190,270 | 191,051 |
TMHC’s share in net income of unconsolidated entities | 2,751 | 1,929 |
Distributions to TMHC from unconsolidated entities | 2,897 | 847 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 73,767 | 19,536 |
Costs and expenses | (66,643) | (14,699) |
Net income from unconsolidated entities | 7,124 | 4,837 |
Taylor Morrison Home Corporation | ||
Schedule of Equity Method Investments [Line Items] | ||
TMHC’s share in net income of unconsolidated entities | 2,751 | 1,929 |
Distributions to TMHC from unconsolidated entities | $ 2,897 | $ 1,197 |
INVESTMENTS IN CONSOLIDATED A_5
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Assets | $ 8,910,343 | $ 8,672,087 |
Cash and cash equivalents | 554,287 | 798,568 |
Total real estate inventory | 5,985,353 | 5,545,446 |
Fixed assets | 300,740 | 295,121 |
Liabilities | 3,484,175 | 3,339,801 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 266,800 | 265,200 |
Cash and cash equivalents | 35,900 | 29,800 |
Total real estate inventory | 66,700 | 70,200 |
Fixed assets | 120,800 | 121,300 |
Liabilities | $ 124,100 | $ 133,800 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||||
Real estate development costs to complete | $ 45,723 | $ 46,114 | ||
Compensation and employee benefits | 77,393 | 149,095 | ||
Self-insurance and warranty reserves | 186,948 | 184,448 | $ 158,222 | $ 161,675 |
Interest payable | 26,039 | 31,042 | ||
Property and sales taxes payable | 29,442 | 30,887 | ||
Other accruals | 93,550 | 107,488 | ||
Total accrued expenses and other liabilities | $ 459,095 | $ 549,074 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Summary of changes in warranty reserves | ||
Reserve - beginning of period | $ 184,448 | $ 161,675 |
Additions to reserves | 20,666 | 14,447 |
Cost of claims incurred | (21,193) | (20,508) |
Changes in estimates to pre-existing reserves | 3,027 | 2,608 |
Reserves — end of period | $ 186,948 | $ 158,222 |
DEBT - Senior Notes and Other B
DEBT - Senior Notes and Other Borrowings (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Facility Amount | $ 360,000,000 | $ 360,000,000 |
Principal | 2,101,434,000 | 2,025,477,000 |
Unamortized Debt Issuance (Costs)/ Premium | (7,935,000) | (8,375,000) |
Carrying Value | 2,093,499,000 | 2,017,102,000 |
Loans payable and other borrowings | ||
Debt Instrument [Line Items] | ||
Principal | 441,190,000 | 394,943,000 |
Unamortized Debt Issuance (Costs)/ Premium | 0 | 0 |
Carrying Value | 441,190,000 | 394,943,000 |
Mortgage warehouse borrowings | ||
Debt Instrument [Line Items] | ||
Principal | 183,174,000 | 153,464,000 |
Unamortized Debt Issuance (Costs)/ Premium | 0 | 0 |
Carrying Value | 183,174,000 | 153,464,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 1,477,070,000 | 1,477,070,000 |
Unamortized Debt Issuance (Costs)/ Premium | (7,935,000) | (8,375,000) |
Carrying Value | $ 1,469,135,000 | 1,468,695,000 |
Senior Notes | $5.875% Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 5.875% | |
Principal | $ 500,000,000 | 500,000,000 |
Unamortized Debt Issuance (Costs)/ Premium | (2,476,000) | (2,672,000) |
Carrying Value | $ 497,524,000 | 497,328,000 |
Senior Notes | $6.625% Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 6.625% | |
Principal | $ 27,070,000 | 27,070,000 |
Unamortized Debt Issuance (Costs)/ Premium | 950,000 | 1,022,000 |
Carrying Value | $ 28,020,000 | 28,092,000 |
Senior Notes | $5.75% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 5.75% | |
Principal | $ 450,000,000 | 450,000,000 |
Unamortized Debt Issuance (Costs)/ Premium | (2,394,000) | (2,551,000) |
Carrying Value | $ 447,606,000 | 447,449,000 |
Senior Notes | $5.125% Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate of senior notes | 5.125% | |
Principal | $ 500,000,000 | 500,000,000 |
Unamortized Debt Issuance (Costs)/ Premium | (4,015,000) | (4,174,000) |
Carrying Value | 495,985,000 | 495,826,000 |
Line of Credit | $1 Billion Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Facility Amount | 1,000,000,000 | |
Principal | 0 | 0 |
Unamortized Debt Issuance (Costs)/ Premium | 0 | 0 |
Carrying Value | 0 | 0 |
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Facility Amount | 100,000,000 | |
Principal | 0 | 0 |
Unamortized Debt Issuance (Costs)/ Premium | 0 | 0 |
Carrying Value | $ 0 | $ 0 |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | $ 360,000,000 | $ 360,000,000 |
Revolving credit facility borrowings | 0 | 0 |
Letters of credit utilized | 1,300,000,000 | 1,300,000,000 |
Revolving Credit Facility | $1 Billion Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity on line of credit | 1,000,000,000 | |
Unamortized debt issuance costs | 2,700,000 | 2,900,000 |
Letters of credit utilized | 59,900,000 | 61,200,000 |
Availability under revolving credit facility | $ 940,100,000 | $ 938,800,000 |
DEBT - Summary of Mortgage Ware
DEBT - Summary of Mortgage Warehouse Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 183,174 | $ 153,464 |
Facility Amount | 360,000 | 360,000 |
Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 0 | 13,477 |
Facility Amount | 60,000 | 60,000 |
Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 59,603 | 25,567 |
Facility Amount | 100,000 | 100,000 |
Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 60,511 | 56,745 |
Facility Amount | 100,000 | 100,000 |
Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 63,060 | 57,675 |
Facility Amount | $ 100,000 | $ 100,000 |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.70% | 1.70% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.50% | 1.65% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.50% | 1.50% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.60% | 1.60% |
Mortgage loans | ||
Line of Credit Facility [Line Items] | ||
Mortgage loans held for sale | $ 216,600 | $ 193,300 |
DEBT - Loans Payable and Other
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payable and Other Borrowings | Mar. 31, 2024 | Dec. 31, 2023 |
Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 0% | 0% |
Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 10% | 9% |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
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% | |
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% | |
Carrying Value | 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 216,633 | $ 193,344 |
Carrying Value | 2 | MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2,039) | (5,055) |
Carrying Value | 2 | Mortgage warehouse borrowings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 183,174 | 153,464 |
Carrying Value | 2 | Loans payable and other borrowings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 441,190 | 394,943 |
Carrying Value | 2 | Senior Notes | $5.875% Senior Notes due 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 497,524 | 497,328 |
Carrying Value | 2 | Senior Notes | $6.625% Senior Notes due 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 28,020 | 28,092 |
Carrying Value | 2 | Senior Notes | 5.75% Senior Notes due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 447,606 | 447,449 |
Carrying Value | 2 | Senior Notes | $5.125% Senior Notes due 2030 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 495,985 | 495,826 |
Carrying Value | 3 | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,489 | |
Derivative liabilities | (795) | |
Estimated Fair Value | 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 216,633 | 193,344 |
Estimated Fair Value | 2 | MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2,039) | (5,055) |
Estimated Fair Value | 2 | Mortgage warehouse borrowings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 183,174 | 153,464 |
Estimated Fair Value | 2 | Loans payable and other borrowings | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 441,190 | 394,943 |
Estimated Fair Value | 2 | Senior Notes | $5.875% Senior Notes due 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 498,790 | 502,500 |
Estimated Fair Value | 2 | Senior Notes | $6.625% Senior Notes due 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 26,393 | 26,529 |
Estimated Fair Value | 2 | Senior Notes | 5.75% Senior Notes due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 446,103 | 451,571 |
Estimated Fair Value | 2 | Senior Notes | $5.125% Senior Notes due 2030 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 475,805 | 483,690 |
Estimated Fair Value | 3 | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 1,489 | |
Derivative liabilities | $ (795) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective rate | 23.20% | 23% | |
Unrecognized tax benefits | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Mar. 05, 2024 | Aug. 16, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 15, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 400,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.00001 | ||||
Preferred stock, shares authorized (in shares) | 50,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.00001 | ||||
Stock repurchase program, authorized amount | $ 500,000,000 | ||||
Repurchase of stock | $ 91,649,000 | $ 3,568,000 | |||
Repurchase of common stock (in shares) | 1,491,485 | 109,325 | |||
Percentage of execise tax on net repurchase of stock | 1% | ||||
ASR Agreement | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of stock | $ 50,000,000 | ||||
Repurchase of common stock (in shares) | 705,343 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | ||
Amount available for repurchase — beginning of period | $ 494,489 | $ 279,138 |
Amount repurchased | (91,649) | (3,568) |
Amount available for repurchase — end of period | $ 402,840 | $ 275,570 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate unamortized outstanding stock based compensation | $ 45.2 | $ 26.5 |
2013 Omnibus Equity Award Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate common stock available for future grants (in shares) | 4,898,061 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Unit, Stock Options, and Stock Warrants Activity (Details) | Mar. 31, 2024 $ / shares shares |
RSUs and PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance, Number of Units (in shares) | shares | 1,337,595 |
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 37.72 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance, Number of Options (in shares) | shares | 2,236,404 |
Balance, Weighted Average Exercise Price Per Share (in dollars per share) | $ / shares | $ 28.44 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation | $ 5,483 | $ 7,533 |
Restricted Stock Units | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation | 4,772 | 6,675 |
Stock Options | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation | $ 711 | $ 858 |
OPERATING AND REPORTING SEGME_3
OPERATING AND REPORTING SEGMENTS - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments included in operating component | 3 |
OPERATING AND REPORTING SEGME_4
OPERATING AND REPORTING SEGMENTS - Reconciliation to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | $ 1,699,752 | $ 1,661,857 |
Gross margin | 416,845 | 399,566 |
Selling, general and administrative expense | (170,164) | (159,021) |
Net (loss)/income from unconsolidated entities | 2,751 | 1,929 |
Interest and other (expense)/income, net | (552) | 5,945 |
Income/(loss) before income taxes | 248,880 | 248,419 |
Operating Segments | East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | 547,311 | 610,813 |
Gross margin | 145,888 | 165,707 |
Selling, general and administrative expense | (46,201) | (43,047) |
Net (loss)/income from unconsolidated entities | 0 | 0 |
Interest and other (expense)/income, net | (827) | (1,212) |
Income/(loss) before income taxes | 98,860 | 121,448 |
Operating Segments | Central | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | 478,490 | 465,011 |
Gross margin | 124,231 | 111,313 |
Selling, general and administrative expense | (39,393) | (36,956) |
Net (loss)/income from unconsolidated entities | (41) | (82) |
Interest and other (expense)/income, net | (2,415) | (1,341) |
Income/(loss) before income taxes | 82,382 | 72,934 |
Operating Segments | West | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | 622,829 | 547,906 |
Gross margin | 123,664 | 108,627 |
Selling, general and administrative expense | (44,748) | (40,484) |
Net (loss)/income from unconsolidated entities | (26) | (235) |
Interest and other (expense)/income, net | (3,518) | 3,779 |
Income/(loss) before income taxes | 75,372 | 71,687 |
Operating Segments | Financial Services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | 46,959 | 35,149 |
Gross margin | 21,816 | 13,001 |
Selling, general and administrative expense | 0 | 0 |
Net (loss)/income from unconsolidated entities | 2,897 | 2,275 |
Interest and other (expense)/income, net | 730 | 0 |
Income/(loss) before income taxes | 25,443 | 15,276 |
Corporate and Unallocated | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total revenue | 4,163 | 2,978 |
Gross margin | 1,246 | 918 |
Selling, general and administrative expense | (39,822) | (38,534) |
Net (loss)/income from unconsolidated entities | (79) | (29) |
Interest and other (expense)/income, net | 5,478 | 4,719 |
Income/(loss) before income taxes | $ (33,177) | $ (32,926) |
OPERATING AND REPORTING SEGME_5
OPERATING AND REPORTING SEGMENTS - Summary of Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | $ 6,184,396 | $ 5,748,663 |
Investments in unconsolidated entities | 369,982 | 346,192 |
Other assets | 2,355,965 | 2,577,232 |
Total assets | 8,910,343 | 8,672,087 |
Operating Segments | East | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 2,172,523 | 1,909,084 |
Investments in unconsolidated entities | 63,628 | 63,628 |
Other assets | 164,058 | 177,739 |
Total assets | 2,400,209 | 2,150,451 |
Operating Segments | Central | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 1,205,995 | 1,181,014 |
Investments in unconsolidated entities | 132,007 | 125,610 |
Other assets | 221,082 | 214,685 |
Total assets | 1,559,084 | 1,521,309 |
Operating Segments | West | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 2,805,878 | 2,658,565 |
Investments in unconsolidated entities | 98,491 | 88,219 |
Other assets | 596,523 | 616,210 |
Total assets | 3,500,892 | 3,362,994 |
Operating Segments | Financial Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 0 | 0 |
Investments in unconsolidated entities | 5,483 | 5,483 |
Other assets | 320,556 | 298,451 |
Total assets | 326,039 | 303,934 |
Corporate and Unallocated | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Real estate inventory and land deposits | 0 | 0 |
Investments in unconsolidated entities | 70,373 | 63,252 |
Other assets | 1,053,746 | 1,270,147 |
Total assets | $ 1,124,119 | $ 1,333,399 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Nov. 02, 2021 | |
Loss Contingencies [Line Items] | ||||
Outstanding letters of credit | $ 1,300,000 | $ 1,300,000 | ||
Legal accruals | 23,200 | 26,200 | ||
Loss contingency, damages paid, value | 64,700 | |||
Lease liabilities | 81,138 | 84,999 | ||
Operating lease expense | 5,900 | $ 7,100 | ||
Land Option Purchase Contracts And Land Banking Arrangements | ||||
Loss Contingencies [Line Items] | ||||
Purchase price | $ 1,500,000 | $ 1,500,000 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency | $ 35,000 |
MORTGAGE HEDGING ACTIVITIES (De
MORTGAGE HEDGING ACTIVITIES (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Fair Value | $ (2,834) | $ (3,566) |
Total commitments to originate loans | 291,800 | 242,600 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 1,489 | |
Fair Value | (795) | |
Notional amount | 271,291 | 219,129 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | (2,039) | (5,055) |
Notional amount | $ 481,000 | $ 285,000 |