Cover
Cover - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-08951 | |
Entity Registrant Name | M.D.C. HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0622967 | |
Entity Address, Address Line One | 4350 South Monaco Street, Suite 500 | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 773-1100 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Public Float | $ 2.9 | |
Entity Common Stock, Shares Outstanding | 70,668,093 | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of part III of this Form 10-K are incorporated by reference from the Registrant's 2022 definitive proxy statement to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant's fiscal year. | |
Entity Central Index Key | 0000773141 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | 552676108 | |
Security Exchange Name | NYSE | |
Senior Notes 6.00% Due 2043 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.000% Senior Notes due January 2043 | |
Trading Symbol | 552676AQ1 | |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Denver, Colorado |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories: | ||
Property and equipment, net | $ 60,561 | $ 61,880 |
Total Assets | 4,963,528 | 3,864,920 |
LIABILITIES AND EQUITY | ||
Total Liabilities | 2,366,382 | 1,745,008 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 250,000,000 shares authorized; 70,668,093 and 64,851,126 issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 707 | 649 |
Additional paid-in-capital | 1,709,276 | 1,407,597 |
Retained earnings | 887,163 | 711,666 |
Total Stockholders' Equity | 2,597,146 | 2,119,912 |
Total Liabilities and Stockholders' Equity | 4,963,528 | 3,864,920 |
Homebuilding Segment | ||
ASSETS | ||
Cash and cash equivalents | 485,839 | 411,362 |
Restricted cash | 12,799 | 15,343 |
Trade and other receivables | 98,580 | 72,466 |
Inventories: | ||
Housing completed or under construction | 1,917,616 | 1,486,587 |
Land and land under development | 1,843,235 | 1,345,643 |
Total inventories | 3,760,851 | 2,832,230 |
Property and equipment, net | 60,561 | 61,880 |
Deferred tax assets, net | 17,942 | 11,454 |
Prepaids and other assets | 106,562 | 101,685 |
Other assets | 199 | 492 |
Total Assets | 4,543,134 | 3,506,420 |
LIABILITIES AND EQUITY | ||
Accounts payable | 149,488 | 98,862 |
Accrued and other liabilities | 370,910 | 300,735 |
Revolving credit facility | 10,000 | 10,000 |
Senior notes, net | 1,481,781 | 1,037,391 |
Total Liabilities | 2,012,179 | 1,446,988 |
Financial Services Segment | ||
ASSETS | ||
Cash and cash equivalents | 104,821 | 77,267 |
Inventories: | ||
Mortgage loans held-for-sale, net | 282,529 | 232,556 |
Other assets | 33,044 | 48,677 |
Total Assets | 420,394 | 358,500 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued liabilities | 97,903 | 95,630 |
Mortgage repurchase facility | 256,300 | 202,390 |
Total Liabilities | $ 354,203 | $ 298,020 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 70,668,093 | 64,851,126 |
Common Stock, Shares, Outstanding | 70,668,093 | 64,851,126 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 5,254,668 | $ 3,901,211 | $ 3,293,253 |
Inventory impairments | (1,600) | 0 | (935) |
Loss on debt retirement | (23,571) | 0 | 0 |
Income before income taxes | 751,694 | 457,512 | 304,989 |
Provision for income taxes | (178,037) | (89,930) | (66,677) |
Net income | 573,657 | 367,582 | 238,312 |
Comprehensive income | $ 573,657 | $ 367,582 | $ 238,312 |
Earnings per share: | |||
Basic ( in dollars per share) | $ 8.13 | $ 5.33 | $ 3.56 |
Diluted (in dollars per share) | $ 7.83 | $ 5.17 | $ 3.44 |
Weighted average common shares outstanding | |||
Basic (in shares) | 70,174,281 | 68,531,856 | 66,546,347 |
Diluted (in shares) | 72,854,601 | 70,676,581 | 68,798,879 |
Homebuilding Segment | |||
Revenues | $ 5,102,456 | $ 3,765,379 | $ 3,205,248 |
Home cost of sales | (3,924,093) | (2,982,668) | (2,600,196) |
Inventory impairments | (1,600) | 0 | (935) |
Total cost of sales | (3,925,693) | (2,982,668) | (2,601,131) |
Gross margin | 1,176,763 | 782,711 | 604,117 |
Selling, general and administrative expenses | (493,993) | (403,218) | (362,790) |
Loss on debt retirement | (23,571) | 0 | 0 |
Total | 5,965 | 4,233 | 9,070 |
Other expense | (5,476) | (5,209) | (5,635) |
Other income (expense), net | 5,965 | 4,233 | 9,070 |
Income before income taxes | 659,688 | 378,517 | 244,762 |
Financial Services Segment | |||
Revenues | 152,212 | 135,832 | 88,005 |
Expenses | (64,477) | (52,465) | (45,001) |
Other income (expense), net | 4,271 | (4,372) | 17,223 |
Income before income taxes | $ 92,006 | $ 78,995 | $ 60,227 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2018 | 56,615,352 | |||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,576,000 | $ (67) | $ 1,575,933 | $ 566 | $ 566 | $ 1,168,442 | $ 1,168,442 | $ 406,992 | $ (67) | $ 406,925 | $ 0 | $ 0 |
Net Income | 238,312 | 238,312 | ||||||||||
Shares issued under stock-based compensation programs, net (in shares) | 1,429,993 | |||||||||||
Shares issued under stock-based compensation programs, net | 15,341 | $ 15 | 15,326 | 0 | ||||||||
Cash dividends declared | (73,020) | (73,020) | ||||||||||
Stock dividends declared (in shares) | 4,534,908 | |||||||||||
Stock dividend declared | (97) | $ 45 | 138,949 | (139,091) | ||||||||
Stock-based compensation expense | 26,016 | 26,016 | ||||||||||
Forfeiture of restricted stock (in shares) | (5,292) | |||||||||||
Forfeiture of restricted stock | 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 62,574,961 | |||||||||||
Ending balance at Dec. 31, 2019 | 1,782,485 | $ (34) | $ 1,782,451 | $ 626 | $ 626 | 1,348,733 | $ 1,348,733 | 433,126 | $ (34) | $ 433,092 | 0 | $ 0 |
Net Income | 367,582 | 367,582 | ||||||||||
Shares issued under stock-based compensation programs, net (in shares) | 2,278,020 | |||||||||||
Shares issued under stock-based compensation programs, net | 28,825 | $ 23 | 28,802 | |||||||||
Cash dividends declared | (89,008) | (89,008) | ||||||||||
Stock-based compensation expense | 30,062 | 30,062 | ||||||||||
Forfeiture of restricted stock (in shares) | (1,855) | |||||||||||
Forfeiture of restricted stock | $ 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 64,851,126 | 64,851,126 | ||||||||||
Ending balance at Dec. 31, 2020 | $ 2,119,912 | $ 649 | 1,407,597 | 711,666 | 0 | |||||||
Net Income | 573,657 | 573,657 | ||||||||||
Shares issued under stock-based compensation programs, net (in shares) | 640,869 | |||||||||||
Shares issued under stock-based compensation programs, net | (16,216) | $ 6 | (16,222) | |||||||||
Cash dividends declared | (117,842) | (117,842) | ||||||||||
Stock dividends declared (in shares) | 5,192,776 | |||||||||||
Stock dividend declared | (687) | $ 52 | 279,579 | (280,318) | ||||||||
Stock-based compensation expense | 38,322 | 38,322 | ||||||||||
Forfeiture of restricted stock (in shares) | (16,678) | |||||||||||
Forfeiture of restricted stock | $ 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 70,668,093 | 70,668,093 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 2,597,146 | $ 707 | $ 1,709,276 | $ 887,163 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities: | |||
Net Income | $ 573,657 | $ 367,582 | $ 238,312 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation expense | 39,655 | 30,062 | 26,016 |
Depreciation and amortization | 31,666 | 27,166 | 23,054 |
Inventory impairments | 1,600 | 0 | 935 |
Net (gain) loss on marketable equity securities | 0 | 8,285 | (11,797) |
Gain on sale of other assets | (2,014) | 0 | 0 |
Loss on debt retirement | 23,571 | 0 | 0 |
Deferred income tax expense | (6,488) | 10,688 | 13,670 |
Net changes in assets and liabilities: | |||
Trade and other receivables | (25,334) | (12,815) | (12,997) |
Mortgage loans held-for-sale | (49,973) | (35,535) | (47,810) |
Prepaids and other assets | 8,545 | (44,932) | (4,694) |
Accounts payable and accrued liabilities | 126,415 | 91,318 | 66,205 |
Net cash provided by (used in) operating activities | (207,990) | (23,095) | 57,833 |
Investing Activities: | |||
Purchases of marketable securities | 0 | (10,804) | (11,708) |
Sales of marketable securities | 0 | 59,266 | 7,637 |
Proceeds from sale of other assets | 2,014 | 0 | 0 |
Purchases of property and equipment | (29,693) | (26,777) | (24,714) |
Net cash provided by (used in) investing activities | (27,679) | 21,685 | (28,785) |
Financing Activities: | |||
Advances on mortgage repurchase facility, net | 53,910 | 52,774 | 32,801 |
Payments on homebuilding line of credit, net | 0 | (5,000) | 0 |
Payments of senior notes | (276,951) | (250,000) | 0 |
Proceeds from issuance of senior notes | 694,662 | 298,050 | 0 |
Dividend payments | (118,529) | (89,008) | (73,117) |
Payments of deferred debt issuance costs | (1,720) | (4,471) | 0 |
Issuance of shares under stock-based compensation programs, net | (16,216) | 28,825 | 15,341 |
Net cash provided by (used in) financing activities | 335,156 | 31,170 | (24,975) |
Net increase in cash, cash equivalents and restricted cash | 99,487 | 29,760 | 4,073 |
Cash, cash equivalents and restricted cash: | |||
Beginning of year | 503,972 | 474,212 | 470,139 |
End of year | 603,459 | 503,972 | 474,212 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Total cash, cash equivalents and restricted cash | 603,459 | 503,972 | 474,212 |
Homebuilding Segment | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Inventory impairments | 1,600 | 0 | 935 |
Loss on debt retirement | 23,571 | 0 | 0 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 485,839 | 411,362 | 424,186 |
Restricted cash | 12,799 | 15,343 | 14,279 |
Financial Services Segment | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 104,821 | 77,267 | 35,747 |
Housing completed or under construction | |||
Net changes in assets and liabilities: | |||
Housing completed or under construction and land under development | (431,926) | (449,882) | (83,484) |
Land and land under development | |||
Net changes in assets and liabilities: | |||
Housing completed or under construction and land under development | $ (497,364) | $ (15,032) | $ (149,577) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation . The Consolidated Financial Statements of M.D.C. Holdings, Inc. ("MDC," “the Company," “we,” “us,” or “our” which refers to M.D.C. Holdings, Inc. and its subsidiaries) include the accounts of MDC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances have been reclassified to conform to the current year’s presentation. Description of Business . We have homebuilding operations in Arizona, California, Colorado, Florida, Idaho, Maryland, New Mexico, Nevada, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia and Washington. The primary functions of our homebuilding operations include land acquisition and development, home construction, purchasing, marketing, merchandising, sales and customer service. We build and sell primarily single-family detached homes, which are designed and built to meet local customer preferences. We are the general contractor for all of our projects and retain subcontractors for site development and home construction. Our financial services operations consist of HomeAmerican Mortgage Corporation (“HomeAmerican”), which originates mortgage loans, primarily for our homebuyers, American Home Insurance Agency, Inc. (“American Home Insurance”), which offers third-party insurance products to our homebuyers, and American Home Title and Escrow Company (“American Home Title”), which provides title agency services to the Company and our homebuyers in Colorado, Florida, Maryland, Nevada, Pennsylvania and Virginia. The financial services operations also include Allegiant Insurance Company, Inc., A Risk Retention Group (“Allegiant”), which provides insurance coverage primarily to our homebuilding subsidiaries on homes that have been delivered and most of our subcontractors for completed work on those delivered homes, and StarAmerican Insurance Ltd. (“StarAmerican”), a wholly owned subsidiary of MDC, which is a re-insurer of Allegiant claims. Presentation . Our balance sheet presentation is unclassified due to the fact that certain assets and liabilities have both short and long-term characteristics. Use of Accounting Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents . The Company periodically invests funds in highly liquid investments with an original maturity of three months or less, such as U.S. government securities, commercial bank deposits, commercial paper, certificates of deposit, money market funds and time deposits, which are included in cash and cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. Equity securities . Our equity securities consisted of holdings in common stock and exchange traded funds and were recorded at fair value with all changes in fair value recorded to other income (expense), net in the financial services section of our consolidated statements of operations and comprehensive income. Restricted Cash . We receive cash earnest money deposits from our customers who enter into home sale contracts. In certain states we are restricted from using such deposits for general purposes, unless we take measures to release state imposed restrictions on such deposits received from homebuyers, which may include posting blanket surety bonds. We had $12.8 million and $15.3 million in restricted cash related to homebuyer deposits at December 31, 2021 and 2020, respectively. Trade and Other Receivables . Trade and other receivables primarily includes home sale receivables, which reflects cash to be received from title companies or outside brokers associated with closed homes. Generally, we will receive cash from title companies and outside brokers within a few days of the home being closed. At December 31, 2021 and 2020, receivables from contracts with customers were $64.5 million and $49.2 million, respectively, and are included in trade and other receivables on the accompanying consolidated balance sheets. Mortgage Loans Held-for-Sale, net . Mortgage loans held-for-sale are recorded at fair value based on quoted market prices and estimated market prices received from a third-party. Using fair value allows an offset of the changes in fair values of the mortgage loans and the derivative instruments used to hedge them without having to comply with the requirements for hedge accounting. Inventories . Our inventories are primarily associated with communities where we intend to construct and sell homes, including models and unsold homes. Components of housing completed or under construction primarily include: (1) land costs transferred from land and land under development; (2) direct construction costs associated with a house; (3) real property taxes, engineering fees, permits and other fees; (4) capitalized interest; and (5) indirect construction costs, which include field construction management salaries and benefits, utilities and other construction related costs. Costs capitalized to land and land under development primarily include: (1) land costs; (2) land development costs; (3) entitlement costs; (4) capitalized interest; (5) engineering fees; and (6) title insurance, real property taxes and closing costs directly related to the purchase of the land parcel. Land costs are transferred from land and land under development to housing completed or under construction at the point in time that construction of a home on an owned lot begins. In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment (“ASC 360”), homebuilding inventories, excluding those classified as held for sale, are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable. We evaluate inventories for impairment at each quarter end on a subdivision level basis as each such subdivision represents the lowest level of identifiable cash flows. In making this determination, we review, among other things, the following for each subdivision: • actual and trending “Operating Margin” (which is defined as home sale revenues less home cost of sales and all incremental costs associated directly with the subdivision, including sales commissions and marketing costs); • estimated future undiscounted cash flows and Operating Margin; • forecasted Operating Margin for homes in backlog; • actual and trending net home orders; • homes available for sale; • market information for each sub-market, including competition levels, home foreclosure levels, the size and style of homes currently being offered for sale and lot size; and • known or probable events indicating that the carrying value may not be recoverable. If events or circumstances indicate that the carrying value of our inventory may not be recoverable, assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision (including capitalized interest) to its carrying value. If the undiscounted future cash flows are less than the subdivision’s carrying value, the carrying value of the subdivision is written down to its then estimated fair value. We generally determine the estimated fair value of each subdivision by calculating the present value of the estimated future cash flows using discount rates, which are Level 3 inputs (see Note 6, Fair Value Measurements, in the notes to the financial statements for definitions of fair value inputs), that are commensurate with the risk of the subdivision under evaluation. The evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues, home construction costs, and development costs per home, all of which are Level 3 inputs. If land is classified as held for sale, in accordance with ASC 360, we measure it at the lower of the carrying value or fair value less estimated costs to sell. In determining fair value, we primarily rely upon the most recent negotiated price which is a Level 2 input (see Note 6, Fair Value Measurements , for definitions of fair value inputs). If a negotiated price is not available, we will consider several factors including, but not limited to, current market conditions, recent comparable sales transactions and market analysis studies. If the fair value less estimated costs to sell is lower than the current carrying value, the land is impaired down to its estimated fair value less costs to sell. Costs Related to Sales Facilities. Costs related to interior and exterior upgrades to the home that will be sold as part of the home, such as wall treatments and additional upgraded landscaping, are recorded as housing completed or under construction. Costs to furnish and ready the model home or on-site sales facility that will not be sold as part of the model home, such as furniture, construction of the sales facility parking lot or construction of the sales center, are capitalized as property and equipment, net. Other costs incurred related to the marketing of the community and readying the model home for sale are expensed as incurred. Property and Equipment, net . Property and equipment is carried at cost less accumulated depreciation. For property and equipment related to on-site sales facilities, depreciation is recorded using the units of production method as homes are delivered. For all other property and equipment, depreciation is recorded using a straight-line method over the estimated useful lives of the related assets, which range from 2 to 29 years. Depreciation and amortization expense for property and equipment was $30.2 million, $26.1 million and $22.8 million for the years ended December 31, 2021, 2020 and 2019, respectively which is recorded in selling, general and administrative expenses in the homebuilding or expenses in the financial services sections of our consolidated statements of operations and comprehensive income. The following table sets forth the cost and carrying value of our homebuilding property and equipment by major asset category. Cost Accumulated Carrying December 31, 2021: (Dollars in thousands) Sales facilities $ 67,947 $ (31,644) $ 36,303 Airplane 31,230 (11,481) 19,749 Computer software and equipment 23,690 (21,367) 2,323 Leasehold improvements 7,783 (6,522) 1,261 Other 2,811 (1,886) 925 Total $ 133,461 $ (72,900) $ 60,561 December 31, 2020: Sales facilities $ 71,870 $ (34,272) $ 37,598 Airplane 31,230 (10,813) 20,417 Computer software and equipment 23,801 (21,997) 1,804 Leasehold improvements 7,640 (6,357) 1,283 Other 2,361 (1,583) 778 Total $ 136,902 $ (75,022) $ 61,880 Deferred Tax Assets, net . Deferred income taxes reflect the net tax effects of temporary differences between (1) the carrying amounts of the assets and liabilities for financial reporting purposes and (2) the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using current enacted tax rates in effect in the years in which those temporary differences are expected to reverse. A valuation allowance is recorded against a deferred tax asset if, based on the weight of available evidence, it is more-likely-than-not (a likelihood of more than 50%) that some portion, or all, of the deferred tax asset will not be realized. Variable Interest Entities . In accordance with ASC Topic 810, Consolidation (“ASC 810”), we analyze our land option contracts and other contractual arrangements to determine whether the corresponding land sellers are variable interest entities (“VIEs”) and, if so, whether we are the primary beneficiary. Although we do not have legal title to the optioned land, ASC 810 requires a company to consolidate a VIE if the company is determined to be the primary beneficiary. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact VIE’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. We also consider whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. We have concluded that, as of December 31, 2021 and 2020, we were not the primary beneficiary of any VIEs from which we are purchasing land under land option contracts. Goodwill. In accordance with ASC Topic 350, Intangibles–Goodwill and Other (“ASC 350” ) , we evaluate goodwill for possible impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use a three-step process to assess the realizability of goodwill. The first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, we analyze changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there are indicators of a significant decline in the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future probability-weighted cash flows. If this step indicates that the carrying value of a reporting unit is in excess of its fair value, we will proceed to the third step where the fair value of the reporting unit will be allocated to assets and liabilities as they would in a business combination. Impairment occurs when the carrying amount of goodwill exceeds its estimated fair value calculated in the third step. Based on our analysis, we have concluded that as of December 31, 2021 and 2020, our goodwill was not impaired. Liability for Unrecognized Tax Benefits. ASC Topic 740, Income Taxes , regarding liabilities for unrecognized tax benefits provides guidance for the recognition and measurement in financial statements of uncertain tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process, the first step being recognition. We determine whether it is more-likely-than-not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation, based on the technical merits of the position. The technical merits of a tax position derive from both statutory and judicial authority (legislation and statutes, legislative intent, regulations, rulings, and case law) and their applicability to the facts and circumstances of the tax position. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority. Once the gross unrecognized tax benefit is determined, we also accrue for any interest and penalties, as well as any offsets expected from resultant amendments to federal or state tax returns. We record the aggregate effect of these items in income tax expense in the consolidated statements of operations and comprehensive income. To the extent this tax position would be offset against a similar deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed, the liability is treated as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. Otherwise, we record the corresponding liability in accrued and other liabilities in our consolidated balance sheets. Warranty Accrual . Our homes are sold with limited third-party warranties. Under our agreement with the issuer of the third-party warranties, we are responsible for performing all of the work for the first two years of the warranty coverage and paying for substantially all of the work required to be performed during years three ten Warranty payments are recorded against the warranty accrual. Additional reserves may be established for known, unusual warranty-related expenditures not covered through the independent warranty accrual analysis performed by us. Warranty payments incurred for an individual house may differ from the related reserve established for the home at the time it was closed. The actual disbursements for warranty claims are evaluated in the aggregate to determine if an adjustment to the historical warranty accrual should be recorded. We assess the reasonableness and adequacy of the reserve and the per-unit reserve amount originally included in home cost of sales, as well as the timing of the reversal of any excess reserve on a quarterly basis, using historical payment data and other relevant information. Our warranty accrual is included in accrued and other liabilities in the homebuilding section of our consolidated balance sheets and adjustments to our warranty accrual are recorded as an increase or reduction to home cost of sales in the homebuilding section of our consolidated statements of operations and comprehensive income. See Note 12 to the Consolidated Financial Statements. Insurance Reserves. The establishment of reserves for estimated losses associated with insurance policies issued by Allegiant and re-insurance agreements issued by StarAmerican are based on actuarial studies that include known facts and interpretations of circumstances, including our experience with similar cases and historical trends involving claim payment patterns, pending levels of unpaid claims, product mix or concentration, claim severity, frequency patterns depending on the business conducted, and changing regulatory and legal environments. It is possible that changes in the insurance payment experience used in estimating our ultimate insurance losses could have a material impact on our insurance reserves. See Note 13, Insurance and Construction Defect Claim Reserves , to the Consolidated Financial Statements. Reserves for Construction Defect Claims. The establishment of reserves for estimated losses to be incurred by our homebuilding subsidiaries associated with (1) the self-insured retention (“SIR”) portion of construction defect claims that are expected to be covered under insurance policies with Allegiant and (2) the entire cost of any construction defect claims that are not expected to be covered by insurance policies with Allegiant are based on actuarial studies that include known facts similar to those established for our insurance reserves. It is possible that changes in the payment experience used in estimating our ultimate losses for construction defect claims could have a material impact on our reserves. See Note 13, Insurance and Construction Defect Claim Reserves , to the Consolidated Financial Statements. Litigation Reserves. We and certain of our subsidiaries have been named as defendants in various cases. We reserve for estimated exposure with respect to these cases based upon currently available information on each case. See Note 17, Commitments and Contingencies , to the Consolidated Financial Statements. Derivative Financial Instruments . The derivative instruments we utilize in the normal course of business are interest rate lock commitments and forward sales of mortgage-backed securities, both of which typically are short-term in nature. Forward sales of mortgage-backed securities are utilized to hedge changes in fair value of our interest rate lock commitments as well as mortgage loans held-for-sale that are not under commitments to sell. For forward sales of mortgage-backed securities, as well as interest rate lock commitments that are still outstanding at the end of a reporting period, we record the changes in fair value of the derivatives in revenues in the financial services section of our consolidated statements of operations and comprehensive income with an offset to other assets or accounts payable and accrued liabilities in the financial services section of our consolidated balance sheets, depending on the nature of the change. At December 31, 2021 and 2020, we had interest rate lock commitments with aggregate principal balances of $268.8 million and $230.5 million, respectively, at average interest rates of 2.91% and 2.69% respectively. In addition, we had $122.3 million and $91.1 million of mortgage loans held-for-sale at December 31, 2021 and 2020, respectively, that had not yet been committed to a mortgage purchaser. In order to economically hedge the changes in fair value of our interest rate lock commitments and mortgage loans held-for-sale which had not yet been committed to a mortgage purchaser, we had forward sales of securities totaling $275.6 million and $203.0 million at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021, 2020 and 2019, we recorded net gains (losses) on our derivatives of $(1.7) million, $4.7 million and $0.3 million, respectively. For further discussion of our policies regarding interest rate lock commitments, see our “Revenue Recognition for HomeAmerican” accounting policy section below. Revenue Recognition for Homebuilding Segments. We recognize home sale revenues from home deliveries when we have satisfied the performance obligations within the sales agreement, which is generally when title to and possession of the home are transferred to the buyer at the home closing date. Revenue from a home delivery includes the base sales price and any purchased options and upgrades and is reduced for any sales price incentives. In certain states where we build, we are not always able to complete certain outdoor features (such as landscaping or pools) prior to closing the home. To the extent these separate deliverables are not complete upon the closing of a home, we defer home sale revenues related to incomplete outdoor features, and recognize that revenue upon completion of the outdoor features. Revenue expected to be recognized in any future year related to remaining performance obligations (if any) and contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. Revenue Recognition for HomeAmerican . Revenues recorded by HomeAmerican primarily reflect (1) origination fees and (2) the corresponding sale, or expected future sale, of a loan, which will include the estimated earnings from either the release or retention of a loan’s servicing rights. Origination fees are recognized when a loan is originated. When an interest rate lock commitment is made to a customer, we record the expected gain on sale of the mortgage, plus the estimated earnings from the expected sale of the associated servicing rights, adjusted for a pull-through percentage (which is defined as the likelihood that an interest rate lock commitment will be originated), as revenue. As the interest rate lock commitment gets closer to being originated, the expected gain on the sale of that loan plus its servicing rights is updated to reflect current market value and the increase or decrease in the fair value of that interest rate lock commitment is recorded through revenues. At the same time, the expected pull-through percentage of the interest rate lock commitment to be originated is updated (typically an increase as the interest lock commitment gets closer to origination) and, if there has been a change, revenues are adjusted as necessary. After origination, our mortgage loans, generally including their servicing rights, are sold to third-party purchasers in accordance with sale agreements entered into by us with a third-party purchaser of the loans. We make representations and warranties with respect to the status of loans transferred in the sale agreements. The sale agreements generally include statements acknowledging the transfer of the loans is intended by both parties to constitute a sale. Sale of a mortgage loan has occurred when the following criteria, among others, have been met: (1) fair consideration has been paid for transfer of the loan by a third party in an arms-length transaction, (2) all the usual risks and rewards of ownership that are in substance a sale have been transferred by us to the third party purchaser; and (3) we do not have a substantial continuing involvement with the mortgage loan. We measure mortgage loans held-for-sale at fair value with the changes in fair value being reported in earnings at each reporting date. The impact of recording changes in fair value to earnings did not have a material impact on our financial position, results of operations or cash flows during the years ended December 31, 2021, 2020 or 2019. Our net gains on the sale of mortgage loans were $90.9 million, $93.3 million and $55.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, and are included as a component of revenues in the financial services section of the consolidated statements of operations and comprehensive income. Home Cost of Sales . Home cost of sales includes the specific construction costs of each home and all applicable land acquisition, land development and related costs, warranty costs and finance and closing costs, including closing cost incentives. We use the specific identification method for the purpose of accumulating home construction costs and allocate costs to each lot within a subdivision associated with land acquisition and land development based upon relative fair value of the lots prior to home construction. Lots within a subdivision typically have comparable fair values, and, as such, we generally allocate costs equally to each lot within a subdivision. We record all home cost of sales when a home is closed and performance obligations have been completed on a house-by-house basis. When a home is closed, we may not have paid for all costs necessary to complete the construction of the home. This includes (1) construction that has been completed on a house but has not yet been billed or (2) work still to be performed on a home (such as limited punch-list items or certain outdoor features). For each of these items, we create an estimate of the total expected costs to be incurred and, with the exclusion of outdoor features, the estimated total costs for those items, less any amounts paid to date, are included in home cost of sales. Actual results could differ from such estimates. For incomplete outdoor features, we will defer the revenue and any cost of sales on this separate stand-alone deliverable until complete. Stock-Based Compensation Expense . In accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”), stock-based compensation expense for all share-based payment awards is based on the grant date fair value. For stock option awards granted with just service and/or performance conditions, we estimate the fair value using a Black-Scholes option pricing model. For any stock option awards granted that contain a market condition, we estimate the fair value using a Monte Carlo simulation model. We recognize expense for share-based payment awards based on their varying vesting conditions as follows: • Awards with service-based vesting conditions only – Expense is recognized on a straight-line basis over the requisite service period of the award. • Awards with performance-based vesting conditions – Expense is not recognized until it is determined that it is probable the performance-based conditions will be met. When achievement of a performance-based condition is probable, a catch-up of expense will be recorded as if the award had been vesting on a straight-line basis from the award date. The award will continue to be expensed on a straight-line basis until the probability of achieving the performance-based condition changes, if applicable. An annual forfeiture rate is estimated at the time of grant for all share-based payment awards that contain service and/or performance conditions. That rate is revised, if necessary, in subsequent periods if the actual forfeiture rate differs from our estimate. Earnings (Loss) Per Common Share. For purposes of calculating earnings (loss) per share (“EPS”), a company that has participating security holders (for example, holders of unvested restricted stock that have non-forfeitable dividend rights) is required to utilize the two-class method for calculating earnings per share unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income/(loss)). Our common shares outstanding are comprised of shareholder owned common stock and shares of unvested restricted stock held by participating security holders. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding, excluding participating shares in accordance with ASC 260. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options outstanding and contingently issuable equity awards. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires measurement and recognition of expected credit losses for financial assets held. The amendments in ASU 2016-13 eliminate the probable threshold for initial recognition of a credit loss in current GAAP and reflect an entity’s current estimate of all expected credit losses. On January 1, 2020, we adopted ASU 2016-13 using the modified retrospective transition method, resulting in a cumulative effect adjustment that decreased the opening balance of retained earnings by less than $0.1 million. The standard did not materially impact our consolidated statements of operations and comprehensive income or consolidated cash flows. In March 2020, the Securities and Exchange Commission ("SEC") adopted amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees, in Rule 3-10 of Regulation S-X. The amended rule focuses on providing material, relevant and decision-useful information regarding guarantees and other credit enhancements, while eliminating certain prescriptive requirements. The rule is effective January 4, 2021 but earlier compliance is permitted. The Company adopted these amendments on June 30, 2020. As the combined assets, liabilities and results of operations of M.D.C. Holdings, Inc. and the Guarantor Subsidiaries (the “Obligor Group”) are not materially different from those in the homebuilding section of our consolidated balance sheets and consolidated statements of operations and comprehensive income, separate summarized financial information of the Obligor Group has not been included. See Note 22, Supplemental Guarantor Information , for further information regarding subsidiary guarantees. ASU 2016-02, Leases (“ASU 2016-02”) is codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes current lease guidance in ASC 840 and requires a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases. The lease liability is equal to the present value of the remaining lease payments while the right-of-use asset is similarly calculated and then adjusted for initial direct costs. In addition, ASC 842 expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method. We elected available practical expedients permitted under the transition guidance within the new standard, which among other items, allowed the Company to carry forward its historical lease classification and not reassess existing leases under the new definition of a lease in ASC 842. In addition, we will account for lease and non-lease components as a single lease component. The adoption of ASC 842 resulted in the recording of additional net lease assets and lease liabilities of $34.2 million and $34.3 million, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as an adjustment to retained earnings. The operating lease right-of-use asset and lease liability is included as a component of prepaids and other assets and accrued and other liabilities, respectively, in the homebuilding section and other assets and accounts payable and accrued liabilities, respectively, in the financial services section of our consolidated balance sheet. The standard did not materially impact our consolidated statements of operations and comprehensive income or consolidated cash flows. |
Supplemental Income Statement a
Supplemental Income Statement and Cash Flow Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Income Statement and Cash Flow Disclosure | Supplemental Income Statement and Cash Flow Disclosure The table below details homebuilding interest and other income and financial services other income (expense), net: Year Ended December 31, 2021 2020 2019 Homebuilding (Dollars in thousands) Interest and other income Interest income $ 1,502 $ 2,711 $ 7,797 Other income 4,463 1,522 1,273 Total $ 5,965 $ 4,233 $ 9,070 Financial Services Other income (expense), net Interest income $ 4,271 $ 3,578 $ 4,404 Dividend income — 335 1,022 Gain (loss) on marketable equity securities, net — (8,285) 11,797 Total $ 4,271 $ (4,372) $ 17,223 The table below sets forth supplemental disclosures of cash flow information and non-cash investing and financing activities. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Cash paid for: Interest, net of interest capitalized $ 632 $ 685 $ 685 Income taxes $ 192,372 $ 72,988 $ 56,476 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. We have identified our CODM as two key executives—the Executive Chairman and the Chief Executive Officer (“CEO”). We have identified each homebuilding division as an operating segment. Our homebuilding operating segments have been aggregated into the reportable segments noted below because they are similar in the following regards: (1) economic characteristics; (2) housing products; (3) class of homebuyer; (4) regulatory environments; and (5) methods used to construct and sell homes. Our homebuilding reportable segments are as follows: • West (Arizona, California, Nevada, New Mexico, Oregon, Texas and Washington) • Mountain (Colorado, Idaho and Utah) • East (Florida, mid-Atlantic, which includes Maryland, Pennsylvania and Virginia, and Tennessee) Our financial services business consists of the following operating segments: (1) HomeAmerican; (2) Allegiant; (3) StarAmerican; (4) American Home Insurance; and (5) American Home Title. Due to its contributions to consolidated pretax income we consider HomeAmerican to be a reportable segment (“mortgage operations”). The remaining operating segments have been aggregated into one reportable segment (“other”) because they do not individually exceed 10 percent of (1) consolidated revenue; (2) the greater of (a) combined reported profit of all operating segments that did not report a loss or (b) the positive value of the combined reported loss of all operating segments that reported losses; or (3) consolidated assets. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating divisions by centralizing key administrative functions such as finance, treasury, information technology, insurance, risk management, litigation and human resources. Corporate also provides the necessary administrative functions to support MDC as a publicly traded company. A portion of the expenses incurred by Corporate are allocated to the homebuilding operating segments based on their respective percentages of assets, and to a lesser degree, a portion of Corporate expenses are allocated to the financial services segments. A majority of Corporate’s personnel and resources are primarily dedicated to activities relating to the homebuilding segments, and, therefore, the balance of any unallocated Corporate expenses is included in the homebuilding operations section of our consolidated statements of operations and comprehensive income. On a periodic basis, we assess our Corporate cost allocation estimates. Our prior year assessment resulted in increases in Corporate cost allocations to both our homebuilding and financial services segments beginning January 1, 2020, to reflect the use of centralized administrative functions. Applying the most recent cost allocation estimate to the year ended December 31, 2019 would have resulted in decreased pretax income for our homebuilding and financial services segments of approximately $11.1 million and $1.6 million, respectively, with corresponding decrease in our Corporate segment pretax loss. Additionally, beginning January 1, 2020, we have reflected the expense associated with all homebuilding employee bonuses in the respective homebuilding segment to which the employee reports, consistent with how the CODM is now evaluating homebuilding division performance and making operating decisions. Had these bonuses been reflected in a similar manner during the year ended December 31, 2019, pretax income for our homebuilding segments would have decreased by an additional $13.1 million with a corresponding decrease in our Corporate segment pretax loss. There was no change in our Corporate cost allocation estimates in the year ended December 31, 2021. The following tables present revenue and pretax income / (loss) relating to our homebuilding and financial services operations: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding West $ 2,964,766 $ 2,106,241 $ 1,771,060 Mountain 1,567,198 1,293,779 1,131,568 East 570,492 365,359 302,620 Total homebuilding revenues $ 5,102,456 $ 3,765,379 $ 3,205,248 Financial Services Mortgage operations $ 107,535 $ 101,675 $ 55,222 Other 44,677 34,157 32,783 Total financial services revenues $ 152,212 $ 135,832 $ 88,005 Total revenues $ 5,254,668 $ 3,901,211 $ 3,293,253 Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding West $ 463,302 $ 229,951 $ 163,069 Mountain 231,523 175,001 136,313 East 59,494 20,006 9,857 Corporate (94,631) (46,441) (64,477) Total homebuilding pretax income $ 659,688 $ 378,517 $ 244,762 Financial Services Mortgage operations $ 69,455 $ 71,017 $ 29,312 Other 22,551 7,978 30,915 Total financial services pretax income $ 92,006 $ 78,995 $ 60,227 Total pretax income $ 751,694 $ 457,512 $ 304,989 The following table summarizes total assets for our homebuilding and financial services operations. The assets in our West, Mountain and East segments consist primarily of inventory while the assets in our Corporate segment primarily include cash and cash equivalents and our deferred tax assets. The assets in our financial services operations consist mostly of cash and cash equivalents and mortgage loans held-for-sale. December 31, 2021 2020 (Dollars in thousands) Homebuilding Assets West $ 2,472,378 $ 1,855,567 Mountain 1,072,717 905,007 East 450,675 274,937 Corporate 547,364 470,909 Total homebuilding assets $ 4,543,134 $ 3,506,420 Financial Services Mortgage operations $ 313,373 $ 279,649 Other 107,021 78,851 Total financial services assets $ 420,394 $ 358,500 Total assets $ 4,963,528 $ 3,864,920 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share On January 28, 2019, MDC’s board of directors approved an 8% stock dividend that was distributed on February 28, 2019 to shareholders of record on February 14, 2019. On January 25, 2021, the Company declared an 8% stock dividend that was distributed on March 17, 2021 to shareholders of record on March 3, 2021. In accordance with ASC 260, basic and diluted earnings per share amounts, weighted-average shares outstanding, and dividends declared per share have been restated for all appropriate periods presented to reflect the effect of these stock dividends. The following table shows our basic and diluted EPS calculations: Year Ended December 31, 2021 2020 2019 (Dollars in thousands, except per share amounts) Numerator Net income $ 573,657 $ 367,582 $ 238,312 Less: distributed earnings allocated to participating securities (634) (583) (466) Less: undistributed earnings allocated to participating securities (2,343) (1,748) (1,020) Net income attributable to common stockholders (numerator for basic earnings per share) 570,680 365,251 236,826 Add back: undistributed earnings allocated to participating securities 2,343 1,748 1,020 Less: undistributed earnings reallocated to participating securities (2,269) (1,704) (992) Numerator for diluted earnings per share under two class method $ 570,754 $ 365,295 $ 236,854 Denominator Weighted-average common shares outstanding 70,174,281 68,531,856 66,546,347 Add: dilutive effect of stock options 2,302,773 1,792,006 1,876,980 Add: dilutive effect of contingently issuable equity awards 377,547 352,719 375,552 Denominator for diluted earnings per share under two class method 72,854,601 70,676,581 68,798,879 Basic Earnings Per Common Share $ 8.13 $ 5.33 $ 3.56 Diluted Earnings Per Common Share $ 7.83 $ 5.17 $ 3.44 Diluted EPS for the years ended December 31, 2021, 2020 and 2019 excluded options to purchase approximately 15,000, 400,000, 400,000 shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements (“ASC 820”), defines fair value, establishes guidelines for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs, other than quoted prices in active markets, that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table sets forth the fair values and methods used for measuring the fair values of financial instruments on a recurring basis: Fair Value Financial Instrument Hierarchy December 31, 2021 December 31, 2020 (Dollars in thousands) Mortgage loans held-for-sale, net Level 2 $ 282,529 $ 232,556 The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of December 31, 2021 and 2020. Cash and cash equivalents (excluding debt securities with an original maturity of three months or less), restricted cash, trade and other receivables, prepaids and other assets, accounts payable, accrued and other liabilities and borrowings on our revolving credit facility. Fair value approximates carrying value. Equity securities . Our equity securities consisted of holdings in common stock stock and exchange traded funds and were recorded at fair value as with all changes in fair value recorded to other income (expense), net in the financial services section of our consolidated statements of operations and comprehensive income. We did not have any investments in equity securities at December 31, 2021 and 2020. The following table reconciles the net gain (loss) recognized during the year ended December 31, 2021 and 2020 on equity securities to the unrealized gain (loss) recognized during the period on equity securities still held at the reporting date. Year Ended December 31, 2021 2020 (Dollars in thousands) Net gain (loss) recognized during the period on equity securities $ — $ (8,285) Less: Net gain (loss) recognized during the period on equity securities sold during the period — (8,285) Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ — $ — Mortgage Loans Held-for-Sale, Net. Our mortgage loans held-for-sale, which are measured at fair value on a recurring basis include (1) mortgage loans held-for-sale that are under commitments to sell and (2) mortgage loans held-for-sale that were not under commitments to sell. At December 31, 2021 and 2020, we had $157.7 million and $137.3 million, respectively, in fair value of mortgage loans held-for-sale that were under commitments to sell. The fair value for those loans was based on quoted market prices for those mortgage loans, which are Level 2 fair value inputs. At December 31, 2021 and 2020, we had $124.9 million and $95.3 million, respectively, in fair value of mortgage loans held-for-sale that were not under commitments to sell. The fair value for those loans was primarily based upon the estimated market price received from an outside party, which is a Level 2 fair value input. The unpaid principal balances of all mortgage loans held for sale at December 31, 2021 and 2020 were $276.9 million and $222.3 million, respectively. Mortgage Repurchase Facility. The debt associated with our Mortgage Repurchase Facility (see Note 16, Lines of Credit and Total Debt Obligations , for further discussion) is at floating rates that approximate current market rates and have relatively short-term maturities, generally within 30 days. The fair value approximates carrying value and is based on Level 2 inputs. Senior Notes . The estimated values of the senior notes in the following table are based on Level 2 inputs, which primarily reflect estimated prices for our senior notes which were provided by multiple sources. December 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (Dollars in thousands) $250 million 5.500% senior notes due January 2024, net $ — $ — $ 249,233 $ 275,463 $300 million 3.850% senior notes due January 2030, net 297,699 319,057 297,458 331,384 $350 million 2.500% senior notes due January 2031, net 347,126 339,185 — — $500 million 6.000% senior notes due January 2043, net 490,903 628,092 490,700 667,288 $350 million 3.966% senior notes due August 2061, net 346,053 337,017 — — Total $ 1,481,781 $ 1,623,351 $ 1,037,391 $ 1,274,135 On September 17, 2021, we accelerated the retirement of $123.6 million of our 5.500% senior notes scheduled to mature in January 2024 through a cash tender offer. We accelerated the retirement of the remaining $126.4 million of our 5.500% senior notes on December 23, 2021, pursuant to their optional redemption provisions. These retirements resulted in a loss on retirement of debt of $23.6 million during the year ended December 31, 2021. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The table below sets forth, by reportable segment, information relating to our homebuilding inventories. December 31, December 31, (Dollars in thousands) Housing Completed or Under Construction: West $ 1,077,256 $ 902,842 Mountain 596,164 464,501 East 244,196 119,244 Subtotal 1,917,616 1,486,587 Land and Land Under Development: West 1,235,363 822,504 Mountain 435,958 391,054 East 171,914 132,085 Subtotal 1,843,235 1,345,643 Total Inventories $ 3,760,851 $ 2,832,230 Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Housing Completed or Under Construction: West $ 1,600 $ — $ 100 Mountain — — — East — — 435 Subtotal 1,600 — 535 Land and Land Under Development: West — — — Mountain — — 400 East — — — Subtotal — — 400 Total Inventory Impairments $ 1,600 $ — $ 935 The table below provides quantitative data, for the periods presented, where applicable, used in determining the fair value of the impaired inventory. Impairment Data Quantitative Data Three Months Ended Number of Subdivisions Impaired Inventory Impairments Fair Value of Inventory After Impairments Discount Rate (Dollars in thousands) December 31, 2021 1 $ 1,600 $ 6,903 N/A Total $ 1,600 March 31, 2019 2 $ 610 $ 10,476 N/A December 31, 2019 2 325 3,948 N/A Total $ 935 |
Capitalization of Interest
Capitalization of Interest | 12 Months Ended |
Dec. 31, 2021 | |
Capitalization of Interest [Abstract] | |
Capitalization of Interest | Capitalization of Interest We capitalize interest to inventories during the period of development in accordance with ASC Topic 835, Interest (“ASC 835”). Homebuilding interest capitalized as a cost of inventories is included in cost of sales during the period that related units or lots are delivered. To the extent our homebuilding debt exceeds our qualified assets as defined in ASC 835, we expense a portion of the interest incurred. Qualified homebuilding assets consist of all lots and homes, excluding finished unsold homes or finished models, within projects that are actively selling or under development. The table set forth below summarizes homebuilding interest activity. For all periods presented below, our qualified assets exceeded our homebuilding debt and as such, all interest incurred has been capitalized. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding interest incurred $ 72,500 $ 61,276 $ 63,635 Less: Interest capitalized (72,500) (61,276) (63,635) Homebuilding interest expensed $ — $ — $ — Interest capitalized, beginning of period $ 52,777 $ 55,310 $ 54,845 Plus: Interest capitalized during period 72,500 61,276 63,635 Less: Previously capitalized interest included in home and land cost of sales (67,223) (63,809) (63,170) Interest capitalized, end of period $ 58,054 $ 52,777 $ 55,310 |
Homebuilding Prepaid and Other
Homebuilding Prepaid and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Homebuilding Prepaid and Other Assets | Homebuilding Prepaids and Other Assets The following table sets forth the components of homebuilding prepaids and other assets. December 31, 2021 2020 (Dollars in thousands) Operating lease right-of-use asset (Note 2 and Note 10) $ 25,514 $ 29,226 Land option deposits 41,617 29,987 Prepaids 26,058 26,929 Goodwill 6,008 6,008 Deferred debt issuance costs on revolving credit facility, net 7,166 9,043 Other 199 492 Total $ 106,562 $ 101,685 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We lease certain property, land and equipment, the majority of which comprise property related leases to provide office space where we operate our business. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Our property related leases typically have terms of between three The property related lease for the Company’s headquarters in Denver, Colorado is ten years in length with an expiration date of October 31, 2026 and contains a ten year option to extend the term of the lease through 2036. This option has been excluded from our calculation of the right-of-use asset and lease liability as it is not currently considered reasonably certain that the option will be exercised. Operating lease expense is included as a component of selling, general and administrative expenses and expenses in the homebuilding and financial services sections of our consolidated statements of operations and comprehensive income, respectively. Components of operating lease expense were as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Operating lease cost 1 $ 8,028 $ 8,193 $ 7,690 Sublease income (Note 15) (156) (153) (150) Net lease cost $ 7,872 $ 8,040 $ 7,540 1 Includes variable lease costs, which are immaterial. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,598 $ 7,394 $ 7,255 Leased assets obtained in exchange for new operating lease liabilities $ 1,765 $ 4,050 $ 3,255 Supplemental cash flow information related to non-cash transactions also includes the recognition of operating lease right-of-use assets of $33.5 million and operating lease liabilities of $34.3 million upon adoption of ASC 842 during the year ended December 31, 2019. Weighted-average remaining lease term and discount rate for operating leases were as follows: December 31, 2021 December 31, 2020 Weighted-average remaining lease term (years) 4.5 5.3 Weighted-average discount rate 5.5% 5.5% Maturities of operating lease liabilities were as follows: Year Ended December 31, (Dollars in thoursands) 2022 $ 6,800 2023 6,643 2024 5,951 2025 5,733 2026 4,661 Thereafter 434 Total operating lease payments 1 $ 30,222 Less: Interest (3,530) Present value of operating lease liabilities 2 $ 26,692 ____________________________ 1 Operating lease payments exclude $4.5 million of legally binding lease payments for leases signed but not yet commenced. 2 Homebuilding and financial services operating lease liabilities of $26.4 million and $0.3 million, respectively, are included as a component of accrued and other liabilities and accounts payable and accrued liabilities, respectively, in the homebuilding and financial services section of our consolidated balance sheets at December 31, 2021. |
Homebuilding Accrued and Other
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities | Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities The following table sets forth information relating to homebuilding accrued and other liabilities. December 31, 2021 2020 (Dollars in thousands) Accrued compensation and related expenses $ 81,417 $ 56,682 Customer and escrow deposits 89,353 67,022 Warranty accrual 37,491 33,664 Lease liability (Note 2 and Note 10) 26,440 30,221 Accrued interest 30,934 27,650 Construction defect claim reserves 9,287 8,479 Land development and home construction accruals 22,012 10,824 Other accrued liabilities 73,976 66,193 Total accrued and other liabilities $ 370,910 $ 300,735 The following table sets forth information relating to financial services accounts payable and accrued liabilities. December 31, 2021 2020 (Dollars in thousands) Insurance reserves $ 72,900 $ 61,575 Accounts payable and other accrued liabilities 25,003 34,055 Total accounts payable and accrued liabilities $ 97,903 $ 95,630 |
Warranty Accrual
Warranty Accrual | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Warranty Accrual | Warranty Accrual The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the years ended December 31, 2021, 2020 and 2019. The warranty accrual increased due to the increase in the number of home closings. From time to time, we change our warranty accrual rates based on payment trends. Any changes made to those rates did not materially affect our warranty expense or gross margin from home sales for the years ended December 31, 2021, 2020 and 2019. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Balance at beginning of period $ 33,664 $ 31,386 $ 28,262 Expense provisions 22,696 16,700 15,525 Cash payments (18,850) (12,343) (12,466) Adjustments (19) (2,079) 65 Balance at end of period $ 37,491 $ 33,664 $ 31,386 |
Insurance and Construction Defe
Insurance and Construction Defect Claim Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Insurance and Construction Defect Claim Reserves | Insurance and Construction Defect Claim Reserves The following table summarizes our insurance and defect claim reserves activity for the years ended December 31, 2021, 2020 and 2019. These reserves are included as a component of accounts payable and accrued liabilities and accrued and other liabilities in either the financial services or homebuilding sections of the consolidated balance sheets, respectively. December 31, 2021 2020 2019 (Dollars in thousands) Balance at beginning of period $ 70,054 $ 60,415 $ 55,308 Expense provisions 19,653 15,403 12,650 Cash payments, net of recoveries (7,520) (5,764) (8,493) Adjustments — — 950 Balance at end of period $ 82,187 $ 70,054 $ 60,415 We recorded a $1.0 million adjustment to increase our insurance and construction defect claim reserves in 2019 due to greater than expected expenditures by our homebuilding subsidiaries. No such adjustments were required for the years ended December 31, 2021 and 2020. In the ordinary course of business, we make payments from our insurance and construction defect claim reserves to settle litigation claims arising primarily from our homebuilding activities. These payments are irregular in both their timing and their magnitude. As a result, the cash payments, net of recoveries shown for the years ended December 31, 2021, 2020 and 2019, are not necessarily indicative of what future cash payments will be for subsequent periods. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Current tax provision: Federal $ 148,741 $ 63,224 $ 50,870 State 35,784 16,018 2,137 Total current 184,525 79,242 53,007 Deferred tax provision: Federal (6,699) 6,380 5,175 State 211 4,308 8,495 Total deferred (6,488) 10,688 13,670 Provision for income taxes $ 178,037 $ 89,930 $ 66,677 The provision for income taxes differs from the amount that would be computed by applying the statutory federal income tax rate of 21% in 2021, 2020 and 2019 to income before income taxes as a result of the following: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Tax expense computed at federal statutory rate $ 157,856 $ 96,077 $ 64,048 State income tax expense, net of federal benefit 26,441 17,535 9,810 Limitation on executive compensation 14,915 8,102 4,463 Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits (4,044) 473 (1,571) Stock based compensation (windfall)/shortfall (1,830) (7,907) (2,828) Federal energy credits (14,558) (23,331) (7,649) Rate changes 81 (291) 190 Change in valuation allowance (1,054) (2,128) 121 Other 230 1,400 93 Provision for income taxes $ 178,037 $ 89,930 $ 66,677 Effective tax rate 23.7 % 19.7 % 21.9 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows: December 31, 2021 2020 (Dollars in thousands) Deferred tax assets: State net operating loss carryforwards $ 3,361 $ 5,739 Stock-based compensation expense 4,350 4,546 Warranty, litigation and other reserves 14,785 12,686 Accrued compensation 8,602 2,958 Asset impairment charges 468 1,416 Inventory, additional net costs capitalized for tax purposes 8,298 8,938 Other, net 1,526 3,441 Total deferred tax assets 41,390 39,724 Valuation allowance (3,316) (4,370) Total deferred tax assets, net of valuation allowance 38,074 35,354 Deferred tax liabilities: Property, equipment and other assets 10,871 11,654 Deferral of profit on home sales 4,668 7,144 Other, net 4,593 5,102 Total deferred tax liabilities 20,132 23,900 Net deferred tax asset $ 17,942 $ 11,454 At December 31, 2021, we had no federal net operating loss or alternative minimum tax carryforwards. However, we had $3.4 million in tax-effected state net operating loss carryforwards. The state operating loss carryforwards, if unused, begin expiring in 2024. At December 31, 2021, we had a valuation allowance of $3.3 million, a decrease of $1.1 million from the prior year. The valuation allowance is related to various state net operating loss carryforwards where realization is uncertain at this time due to the limited carryforward periods coupled with minimal activity that exists in certain states. At December 31, 2021 and 2020, our total liability for uncertain tax positions including interest and penalties was $0.4 million and $9.3 million, respectively. The following table summarizes activity for the gross unrecognized tax benefit component of our total liability for uncertain tax positions for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Gross unrecognized tax benefits at beginning of year $ 8,497 $ 8,515 $ 8,579 Increases related to prior year tax positions 162 121 75 Decreases related to prior year tax positions — — — Lapse of applicable statute of limitations (8,276) (139) (139) Gross unrecognized tax benefits at end of year $ 383 $ 8,497 $ 8,515 During the year ended December 31, 2021, we experienced a reduction in the uncertain tax positions due to the lapse of the statute of limitations of $8.3 million, of which approximately $3.2 million reduced our effective tax rate. Interest and penalties associated with the statute of limitations lapse were approximately $0.9 million. At December 31, 2021 and 2020, there was $0.4 million and $3.5 million, respectively, of unrecognized tax benefits that if recognized, would reduce our effective tax rate. The interest and penalties, net of federal benefit for the years ended December 31, 2021, 2020 and 2019 was $(0.8) million, $0.5 million and $(1.5) million, respectively, and are included in provision for income taxes in the consolidated statements of operations and comprehensive income. We are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are subject to U.S. federal income tax examination for calendar tax years ending 2018 through 2021. Additionally, we are subject to various state income tax examinations for the 2017 through 2021 calendar tax years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company has a sublease agreement with CVentures, Inc. Larry A. Mizel, the Company's Executive Chairman, is the President of CVentures, Inc. The sublease is for office space that CVentures, Inc. has continuously leased from the Company as disclosed in the Form 8-K filed July 27, 2005 and the Form 8-K filed March 28, 2006. The current sublease term commenced November 1, 2016 and will continue through October 31, 2026. The sublease agreement is for approximately 5,437 rentable square feet at a base rent that increases over the term from $26.50 to $31.67 per rentable square foot per year. The sublease rent is an allocation of the rent under the master lease agreement based on the sublease square footage. |
Lines of Credit and Total Debt
Lines of Credit and Total Debt Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Lines of Credit and Total Debt Obligations | Lines of Credit and Total Debt Obligations Revolving Credit Facility. We have an unsecured revolving credit agreement (“Revolving Credit Facility”) with a group of lenders, which may be used for general corporate purposes. This agreement was amended on December 28, 2020 to (1) increase the aggregate commitment from $1.0 billion to $1.2 billion (the “Commitment”), (2) extend the Revolving Credit Facility maturity of $1.125 billion of the Commitments to December 18, 2025 with the remaining Commitment continuing to terminate on December 18, 2023 and (3) provide that the aggregate amount of the commitments may increase to an amount not to exceed $1.7 billion upon our request, subject to receipt of additional commitments from existing or additional lenders and, in the case of additional lenders, the consent of the co-administrative agents. As defined in the Revolving Credit Facility, interest rates on base rate borrowings are equal to the highest of (1) 0.0%, (2) a prime rate, (3) a federal funds effective rate plus 1.50%, and (4) a specified eurocurrency rate plus 1.00% and, in each case, plus a margin that is determined based on our credit ratings and leverage ratio. Interest rates on eurocurrency borrowings are equal to a specified eurocurrency rate plus a margin that is determined based on our credit ratings and leverage ratio. At any time at which our leverage ratio, as of the last day of the most recent calendar quarter, exceeds 55%, the aggregate principal amount of all consolidated senior debt borrowings outstanding may not exceed the borrowing base. There is no borrowing base requirement if our leverage ratio, as of the last day of the most recent calendar quarter, is 55% or less. The Revolving Credit Facility provides for a transition from the eurocurrency rate to a benchmark replacement upon the occurrence of certain events. The Revolving Credit Facility is fully and unconditionally guaranteed, jointly and severally, by most of our homebuilding segment subsidiaries. The facility contains various representations, warranties and covenants that we believe are customary for agreements of this type. The financial covenants include a consolidated tangible net worth test and a leverage test, along with a consolidated tangible net worth covenant, all as defined in the Revolving Credit Facility. A failure to satisfy the foregoing tests does not constitute an event of default, but can trigger a “term-out” of the facility. A breach of the consolidated tangible net worth covenant (but not the consolidated tangible net worth test) or a violation of anti-corruption or sanctions laws would result in an event of default. The Revolving Credit Facility is subject to acceleration upon certain specified events of default, including breach of the consolidated tangible net worth covenant, a violation of anti-corruption or sanctions laws, failure to make timely payments, breaches of certain representations or covenants, failure to pay other material indebtedness, or another person becoming beneficial owner of 50% or more of our outstanding common stock. We believe we were in compliance with the representations, warranties and covenants included in the Revolving Credit Facility as of December 31, 2021. We incur costs associated with unused commitment fees pursuant to the terms of the Revolving Credit Facility. At December 31, 2021 and 2020, there were $40.1 million and $25.1 million, respectively, in letters of credit outstanding, which reduced the amounts available to be borrowed under the Revolving Credit Facility. We had $10.0 million and $10.0 million outstanding under the Revolving Credit Facility as of December 31, 2021 and 2020, respectively. As of December 31, 2021, availability under the Revolving Credit Facility was approximately $1.15 billion. Mortgage Repurchase Facility. HomeAmerican has a Master Repurchase Agreement (the “Mortgage Repurchase Facility”) with U.S. Bank National Association (“USBNA”). The Mortgage Repurchase Facility provides liquidity to HomeAmerican by providing for the sale of up to an aggregate of $75 million (subject to increase by up to $75 million under certain conditions) of eligible mortgage loans to USBNA with an agreement by HomeAmerican to repurchase the mortgage loans at a future date. Until such mortgage loans are transferred back to HomeAmerican, the documents relating to such loans are held by USBNA, as custodian, pursuant to the Custody Agreement (“Custody Agreement”), dated as of November 12, 2008, by and between HomeAmerican and USBNA. In the event that an eligible mortgage loan becomes ineligible, as defined under the Mortgage Repurchase Facility, HomeAmerican may be required to repurchase the ineligible mortgage loan immediately. The Mortgage Repurchase Facility was amended on September 24, 2020, March 25, 2021, May 20, 2021, and December 21, 2021 to adjust the commitments to purchase for specific time periods. As part of the amendments, the commitments to purchase (subject to increase by up to $75 million under certain conditions) were increased as follows: (1) $200 million for the periods December 22, 2020 through February 4, 2021, (2) $175 million for the periods March 25, 2021 through April 22, 2021, June 23, 2021 through July 22, 2021, September 22, 2021 through October 21, 2021, and March 23, 2022 through April 21, 2022 and (3) $400 million for the period December 21, 2021 through February 15, 2022. The Mortgage Repurchase Facility terminates on May 19, 2022. There was no increase to the maximum aggregate commitment of the Mortgage Repurchase Facility as of December 31, 2021. The maximum aggregate commitment of the Mortgage Repurchase Facility was temporarily increased by $50 million on December 28, 2020 effective through January 27, 2021. At December 31, 2021 and 2020, HomeAmerican had $256.3 million and $202.4 million, respectively, of mortgage loans that HomeAmerican was obligated to repurchase under the Mortgage Repurchase Facility. Mortgage loans that HomeAmerican is obligated to repurchase under the Mortgage Repurchase Facility are accounted for as a debt financing arrangement and are reported as mortgage repurchase facility in the consolidated balance sheets. The December 21, 2021 amendment also provides for a transition from a pricing rate based on the London Interbank Offered Rate (LIBOR) to one based on the Secured Overnight Financing Rate (SOFR). Senior Notes. Our senior notes are not secured and, while the senior note indentures contain some restrictions on secured debt and other transactions, they do not contain financial covenants. Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by most of our homebuilding segment subsidiaries. We believe that we are in compliance with the representations, warranties and covenants in the senior note indentures. Our debt obligations at December 31, 2021 and 2020, net of any unamortized debt issuance costs or discount, were as follows: December 31, 2021 2020 (Dollars in thousands) $250 million 5.500% senior notes due January 2024, net $ — $ 249,233 $300 million 3.850% senior notes due January 2030, net 297,699 297,458 $350 million 2.500% senior notes due January 2031, net 347,126 — $500 million 6.000% senior notes due January 2043, net 490,903 490,700 $350 million 3.966% senior notes due August 2061, net 346,053 — Total $ 1,481,781 $ 1,037,391 In January 2021, we completed an offering of $350 million of 2.500% senior notes due January 2031 at 100% of par. In August 2021, the Company issued $350 million of 3.966% senior notes due August 2061 at 100% of par. We used the net proceeds for general corporate purposes, which included the retirement of our 5.500% senior notes discussed further below, which were scheduled to mature in January 2024. In September 2021, we accelerated the retirement of $123.6 million of our 5.500% senior notes scheduled to mature in January 2024 through a cash tender offer. The retirement resulted in a loss of $12.2 million, which included the write-off of debt issuance costs and transaction fees. In December 2021, we accelerated the retirement of the remaining $126.4 million of our 5.500% senior notes pursuant to their optional redemption provisions. The retirement resulted in a loss of $11.4 million, which included the write-off of debt issuance costs and transaction fees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Surety Bonds and Letters of Credit. We are required to obtain surety bonds and letters of credit in support of our obligations for land development and subdivision improvements, homeowner association dues, warranty work, contractor license fees and earnest money deposits. At December 31, 2021, we had outstanding surety bonds and letters of credit totaling $371.3 million and $215.5 million, respectively, including $175.4 millions in letters of credit issued by HomeAmerican. The estimated cost to complete obligations related to these bonds and letters of credit were approximately $201.7 million and $161.6 million, respectively. All letters of credit as of December 31, 2021, excluding those issued by HomeAmerican, were issued under our unsecured Revolving Credit Facility (see Note 16, Lines of Credit and Total Debt Obligations , for further discussion of the Revolving Credit Facility). We expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms. To the extent that the obligations are performed, the related performance bonds and letters of credit should be released and we should not have any continuing obligations. However, in the event any such performance bonds or letters of credit are called, our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit. We have made no material guarantees with respect to third-party obligations. Litigation Reserves. Because of the nature of the homebuilding business, we have been named as defendants in various claims, complaints and other legal actions arising in the ordinary course of business, including product liability claims and claims associated with the sale and financing of homes. In the opinion of management, the outcome of these ordinary course matters will not have a material adverse effect upon our financial condition, results of operations or cash flows. At both December 31, 2021 and 2020, we had $1.6 million of legal accruals recorded in accrued liabilities in the consolidated balance sheets. Loan Origination Liabilities. HomeAmerican sold to financial institutions certain loans originated prior to 2009 that were subsequently included by such financial institutions in residential mortgage-backed securities offerings or other securitizations issued by those financial institutions. In connection with such sales, we were put on notice by one institution of a claim for indemnification or breach of contract relating to certain loans that were included in securitizations. The claim related to alleged misrepresentations by borrowers on certain residential mortgage loans originated by HomeAmerican and/or alleged lack of conformity of certain loans to applicable underwriting guidelines promulgated by the financial institution. This matter was settled as of December 31, 2019 and did not have a material impact on our results of operations, financial position, or cash flows. Lot Option Contracts . In the ordinary course of business, we enter into lot option purchase contracts (“Option Contracts”), generally through a deposit of cash or a letter of credit, for the right to purchase land or lots at a future point in time with predetermined terms. The use of such land option and other contracts generally allow us to reduce the risks associated with direct land ownership and development, reduces our capital and financial commitments, and minimizes the amount of land inventories on our consolidated balance sheets. In certain cases, these contracts will be settled shortly following the end of the period. Our obligation with respect to Option Contracts is generally limited to forfeiture of the related deposits. At December 31, 2021, we had cash deposits and letters of credit totaling $38.1 million and $17.3 million, respectively, at risk associated with options to purchase 11,148 lots. Coronavirus/COVID-19 Pandemic. In response to the pandemic, many state and local governments instituted restrictions that substantially limited the operations of non-essential businesses and the activities of individuals. While some of these restrictions have been eased, there is still significant uncertainty around the extent and duration of those still in place and the possibility for restrictions to be increased again in the future. We continue to construct, market and sell homes in all markets in which we operate, but increased restrictions could have a negative impact on traffic at our sales centers and model homes, cancellation rates and our ability to physically construct homes. While the extent to which the pandemic will impact our financial results in the coming periods depends on future developments, including whether there are additional outbreaks of COVID-19 and the actions taken to contain or address the virus, the pandemic and its associated impact on the U.S. economy and consumer confidence could have a material impact to the Company’s future results of operations, financial condition and cash flows. |
Concentration of Third-party Mo
Concentration of Third-party Mortgage Purchasers | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Thrid-party Mortgage Purchasers | Concentration of Third-Party Mortgage Purchasers The following table sets forth the percent of mortgage loans sold by HomeAmerican to its primary third party purchasers during 2021, 2020 and 2019. No other third parties purchased greater than 10 percent of our mortgage loans during 2021, 2020 or 2019. Year Ended December 31, 2021 2020 2019 PennyMac Loan Services, LLC 37 % 33 % 41 % Fannie Mae 19 % 24 % 7 % Chase Manhattan Mortgage 13 % 4 % 8 % Ginnie Mae 9 % 18 % 4 % Wells Fargo Funding, Inc. 6 % 9 % 16 % |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Cash Dividends. In each of the years ended December 31, 2021, 2020 and 2019, we paid dividends of $1.67 per share, $1.29 per share and $1.09 per share, respectively Stock Dividends. On January 28, 2019, MDC’s board of directors approved an 8% stock dividend that was distributed on February 28, 2019 to shareholders of record on February 14, 2019. On January 25, 2021, the Company declared an 8% stock dividend that was distributed on March 17, 2021 to shareholders of record on March 3, 2021. Common Stock Repurchase Program . At December 31, 2021, we were authorized to repurchase up to 4,000,000 shares of our common stock. We did not repurchase any shares of our common stock under this repurchase program during the years ended December 31, 2021, 2020 or 2019. We did not hold any treasury stock at December 31, 2021. |
Equity Incentive and Employee B
Equity Incentive and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive and Employee Benefit Plans | Equity Incentive and Employee Benefit Plans A summary of our equity incentive plans, restated as applicable for stock dividends, follows. Employee Equity Incentive Plans. On April 27, 2011, our shareholders approved the M.D.C Holdings, Inc. 2011 Equity Incentive Plan (the “2011 Equity Incentive Plan”) which provided for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity awards to employees of the Company. Stock options granted under the 2011 Equity Incentive Plan had an exercise price that is at least equal to the fair market value of our common stock on the date the stock option is granted, generally vested in periods up to five years and expired ten years after the date of grant. On April 27, 2021, the 2011 Equity Incentive Plan terminated and awards outstanding at the time the plan terminated remain outstanding in accordance with the terms and conditions of the plan and award agreement. There are 5.6 million remaining shares of MDC common stock reserved for issuance under the 2011 Equity Incentive Plan as of December 31, 2021. On April 26, 2021, our shareholders approved the M.D.C Holdings, Inc. 2021 Equity Incentive Plan (the "2021 Equity Incentive Plan") which provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash awards to employees of the Company. Stock options granted under the 2021 Equity Incentive Plan have an exercise price that is at least equal to the fair market value of our common stock on the date the stock option is granted, generally vest in periods up to five years and expire ten years after the date of grant. At December 31, 2021, a total of 3.0 million shares of MDC common stock were reserved for issuance under the 2021 Equity Incentive Plan, of which 2.2 million shares remained available for grant under this plan as of December 31, 2021 . Director Equity Incentive Plans . Effective April 27, 2011, our shareholders approved the M.D.C. Holdings, Inc. 2011 Stock Option Plan for Non-Employee Directors (the “2011 Director Stock Option Plan”), which provided for the grant of non-qualified stock options to non-employee directors of the Company. Effective March 29, 2016, our shareholders approved an amendment to the 2011 Director Stock Option Plan to provide the non-employee directors with an alternative to elect to receive an award of restricted stock in lieu of a stock option. Pursuant to the 2011 Director Stock Option Plan as amended, on August 1 of each year, each non-employee director is granted either (1) an option to purchase 25,000 shares of MDC common stock or (2) shares of restricted stock having an expense to the Company that is equivalent to the stock option. Effective April 20, 2020, our shareholders approved an amendment and restatement of the 2011 Director Stock Option Plan to (1) rename the 2011 Director Stock Option Plan as the M.D.C. Holdings, Inc. 2020 Equity Plan for Non-Employee Directors (such amended and restated 2011 Director Plan, the "2020 Director Equity Plan"), (2) increase the number of shares covered by the annual grant of each stock option (without increasing the total number of shares authorized under the plan) to reflect, on a going forward basis, the stock dividends declared by the Company, (3) provide that the number of shares covered by the annual grant shall be proportionally increased or decreased in the future for any increase or decrease in the number of shares of stock outstanding on account of any recapitalization, split, reverse split, combination, exchange, dividend or other distribution payable in shares of stock, and (4) extend the 2020 Director Equity Plan's termination date to April 20, 2030. Each option granted under the 2020 Director Equity Plan vests immediately, becomes exercisable six months after grant, and expires ten years from the date of grant. The option exercise price must be equal to the fair market value (as defined in the plan) of our common stock on the date of grant of the option. Each restricted stock award granted under the 2020 Equity Plan vests seven months after the grant date. At December 31, 2021, a total of 0.6 million shares of MDC common stock were reserved for issuance under the 2020 Director Equity Plan and 0.4 million shares remained available for grant under this plan as of December 31, 2021. Employee Benefit Plan . We have a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code where each employee may elect to make contributions up to the current tax limits. Effective for 2018 and thereafter, we match employee contributions at a rate of 50% of the first 6% of compensation and, as of December 31, 2021, we had accrued $3.6 million related to the match that is to be contributed in the first quarter of 2022 for 2021 activity. At December 31, 2020, we had accrued $3.0 million related to the match that was contributed in the first quarter of 2021 for 2020 activity. At December 31, 2019, we had accrued $2.6 million related to the match that was contributed during the first quarter of 2020 for 2019 activity. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Determining Fair Value of Share-Based Option Awards . Most options that we grant contain only a service condition (“Service-Based” option) and therefore vest over a specified number of years as long as the employee is employed by the Company. For Service-Based options, we use the Black-Scholes option pricing model to determine the grant date fair value. The fair values for Service-Based options granted for the years ended December 31, 2021, 2020 and 2019 were estimated using the Black-Scholes option pricing model with the below weighted-average assumptions. Year Ended December 31, 2021 2020 2019 Expected lives of options (years) 5.4 9.5 9.5 Expected volatility 40.4 % 62.8 % 29.9 % Risk free interest rate 0.8 % 0.7 % 1.7 % Dividend yield rate 3.0 % 5.1 % 3.4 % Based on calculations using the Black-Scholes option pricing model, the weighted-average grant date fair values of stock options granted, restated as applicable for stock dividends, during 2021, 2020 and 2019 were $14.66, $8.73 and $7.30, respectively. The expected life of options in the table above represents the weighted-average period for which the options are expected to remain outstanding and are derived primarily from historical exercise patterns. The expected volatility is determined based on our review of the implied volatility that is derived from the price of exchange traded options of the Company. The risk-free interest rate assumption is determined based upon observed interest rates appropriate for the expected term of our employee stock options. The dividend yield assumption is based on our history of dividend payouts. Stock Option Award Activity . Stock option activity under our option plans, restated as applicable for stock dividends, for the years ended December 31, 2021, 2020 and 2019 were as follows. Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Outstanding Stock Option Activity Outstanding, beginning of year 4,364,161 $ 23.37 5,831,119 $ 22.22 6,452,388 $ 21.76 Granted 15,000 53.32 432,000 23.90 445,227 32.92 Exercised (139,157) 19.87 (1,898,958) 19.96 (1,066,496) 23.75 Forfeited — N/A — N/A — N/A Cancelled — N/A — N/A — N/A Outstanding, end of year 4,240,004 $ 23.64 4,364,161 $ 23.37 5,831,119 $ 22.22 Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Unvested Stock Option Activity Outstanding, beginning of year 875,519 $ 7.76 756,268 $ 6.67 522,225 $ 5.80 Granted 15,000 14.66 432,000 8.73 445,227 7.30 Vested (458,519) 7.52 (312,749) 6.44 (211,184) 5.49 Forfeited — — — — — N/A Unvested, end of year 432,000 $ 8.25 875,519 $ 7.76 756,268 $ 6.67 The total intrinsic value of options (difference between price per share as of the exercise date and the exercise price, times the number of options outstanding) exercised during the years ended December 31, 2021, 2020 and 2019 was $5.1 million, $40.2 million and $8.2 million, respectively. The following table provides data for our stock options that are vested or expected to vest as of December 31, 2021. Exercisable or expected to vest Number outstanding 4,240,004 Weighted-average exercise price $ 23.64 Aggregate intrinsic value (in thousands) $ 136,501 Weighted-average remaining contractual term (years) 4.62 Exercisable Number outstanding 3,808,004 Weighted-average exercise price $ 23.27 Aggregate intrinsic value (in thousands) $ 124,006 Weighted-average remaining contractual term (years) 4.22 The aggregate intrinsic values in the tables above represent the total pretax intrinsic values (the difference between the closing price of MDC’s common stock on the last trading day of fiscal 2021 and the exercise price, multiplied by the number of in-the-money stock option shares) that would have been received by the option holders had all in-the-money outstanding stock options been exercised on December 31, 2021. The following table summarizes information associated with outstanding and exercisable stock options at December 31, 2021. Options Outstanding Options Exercisable Range of Exercise Price Number Weighted- Weighted- Number Weighted- Weighted- $ 15.01 - $ 20.00 61,172 3.30 $ 18.43 61,172 3.30 $ 18.43 $ 20.01 - $ 25.00 3,189,819 3.99 21.84 2,901,819 3.56 21.63 $ 25.01 - $ 30.00 542,013 5.94 26.59 542,013 5.94 26.59 $ 30.01 - $ 35.00 432,000 7.59 32.92 288,000 7.59 32.92 $ 50.01 - $ 55.00 15,000 9.58 53.32 15,000 9.58 53.32 Total 4,240,004 4.62 $ 23.64 3,808,004 4.22 $ 23.27 Total compensation expense relating to stock options was $3.0 million, $2.9 million and $1.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Our recognized tax benefit from this expense for the years ended December 31, 2021, 2020 and 2019 was $0.1 million, $0.0 million and $0.0 million, respectively. As of December 31, 2021, $2.2 million of total unrecognized compensation cost related to stock options was expected to be recognized as an expense by the Company in the future over a weighted-average period of approximately 1.0 year. For the years ended December 31, 2021, 2020 and 2019 the Company received cash from the exercise of stock option awards of $2.6 million, $37.9 million and $25.3 million, respectively. Our realized tax benefit from stock options exercised for the years ended December 31, 2021, 2020 and 2019 was $1.1 million, $7.2 million and $0.2 million, respectively. Restricted Stock Award Activity . Non-vested restricted stock awards, restated as applicable for stock dividends, at December 31, 2021, 2020 and 2019 and changes during those years were as follows: Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Unvested, beginning of year 413,274 $ 35.94 371,583 $ 28.28 364,942 $ 23.71 Granted 208,386 53.47 261,026 39.93 181,090 31.34 Vested (257,430) 38.49 (217,332) 27.59 (168,734) 25.22 Forfeited (16,678) 49.21 (2,003) 38.13 (5,715) 28.30 Unvested, end of year 347,552 $ 47.27 413,274 $ 35.94 371,583 $ 28.28 Total compensation expense relating to restricted stock awards was $10.1 million, $8.2 million and $4.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Our recognized tax benefit from this expense for the years ended December 31, 2021, 2020 and 2019 was $1.4 million, $1.2 million and $0.7 million, respectively. At December 31, 2021, there was $6.9 million of unrecognized compensation expense related to non-vested restricted stock awards that is expected to be recognized as an expense by us in the future over a weighted-average period of approximately 1.4 years. The total intrinsic value of unvested restricted stock awards (the closing price of MDC’s common stock on the last trading day of fiscal 2021 multiplied by the number of unvested awards) at December 31, 2021 was $19.4 million. The total intrinsic value of restricted stock which vested during each of the years ended December 31, 2021, 2020 and 2019 was $13.4 million, $8.6 million and $5.3 million, respectively. Performance Share Unit Awards. The Company has made annual grants of long term performance share unit awards (" PSUs") to each of the Executive Chairman, CEO and the Chief Financial Officer ("CFO"), as detailed in the table below. The PSUs are earned based upon the Company’s performance, over a period of three years (the “Performance Period”), measured by increasing home sale revenues over a “Base Period.” Each award is conditioned upon the Company achieving an average gross margin from home sales (excluding impairments) of at least fifteen percent (15%) over the Performance Period. Target goals will be earned if the Company’s three year average home sale revenues over the Performance Period (“Performance Revenues”) exceed the home sale revenues over the Base Period (“Base Revenues”) by at least 10% but less than 20%. If Performance Revenues exceed the Base Revenues by at least 5% but less than 10%, 50% of the Target Goals will be earned (“Threshold Goals”). If Performance Revenues exceed the Base Revenues by at least 20%, 200% of the Target Goals will be earned (“Maximum Goals”). The number of PSUs earned shall be adjusted to be proportional to the partial performance between the Threshold Goals, Target Goals and Maximum Goals. Details for each defined term above for each grant have been provided in the table below. Threshold Goal Target Goal Maximum Goal Maximum Potential Expense to be Recognized * Maximum Remaining Expense to be Recognized * Date of Award Performance Period Base Period Base Period Revenues PSUs Home Sale Revenues PSUs Home Sale Revenues PSUs Home Sale Revenues Fair Value per Share May 23, 2018 April 1, 2018 - March 31, 2021 April 1, 2017 - March 31, 2018 $2.543 billion 157,464 $2.670 billion 314,928 $2.797 billion 629,856 $3.052 billion $ 23.68 $ 14,915 $ — Aug 5, 2019 January 1, 2019 - December 31, 2021 January 1, 2018 - December 31, 2018 $2.982 billion 145,800 $3.131 billion 291,600 $3.280 billion 583,200 $3.578 billion $ 30.19 $ 17,604 $ — Aug 20, 2020 January 1, 2020 - December 31, 2022 January 1, 2019 - December 31, 2019 $3.205 billion 145,800 $3.366 billion 291,600 $3.526 billion 583,200 $3.846 billion $ 39.79 $ 23,205 $ 9,831 Jul 14, 2021 January 1, 2021 - December 31, 2023 January 1, 2020 - December 31, 2020 $3.765 billion 198,750 $3.953 billion 397,500 $4.142 billion 795,000 $4.518 billion $ 44.35 $ 35,255 $ 30,824 _______________________ * Dollars in thousands In accordance with ASC 718, the PSUs were valued on the date of grant at their fair value. The fair value of these grants was equal to the closing price of MDC stock on the date of grant less the discounted cash flows of expected future dividends over the respective vesting period (as these PSUs do not participate in dividends). The grant date fair value and maximum potential expense if the Maximum Goals were met for these awards has been provided in the table above. ASC 718 does not permit recognition of expense associated with performance-based stock awards until achievement of the performance targets are probable of occurring. 2016 PSU Grants. The 2016 PSU awards vested on August 7, 2019. For the year ended December 31, 2019 the Company recorded share-based award expense of $1.8 million related to these awards. 2017 PSU Grants. The 2017 PSU awards vested on May 5, 2020. For the years ended December 31, 2020 and 2019 the Company recorded share-based award expense of $1.4 million and $11.7 million, respectively, related to these awards. 2018 PSU Grant s. The 2018 PSU awards vested on April 29, 2021. For the years ended December 31, 2021, 2020 and 2019 the Company recorded share-based award expense of $1.3 million, $7.3 million and $6.3 million, respectively, related to these awards. 2019 PSU Grant s. For the years ended December 31, 2021 and 2020 the Company recorded the required share-based award expense related to the awards of $7.3 million and $10.3 million, respectively, based on its assessment of the probability for achievement of the performance targets. As of December 31, 2019, the Company concluded that achievement of any of the performance metrics had not met the level of probability required to record compensation expense and as such, no expense related to these awards was recognized in year-ended 2019. 2020 PSU Grant s. For the year ended December 31, 2021, the Company recorded the required share-based award expense related to the awards of $13.4 million, based on its assessment of the probability for achievement of the performance targets. As of December 31, 2020, the Company concluded that achievement of any of the performance metrics had not met the level of probability required to record compensation expense and as such, no expense related to these awards was recognized in year-ended 2020. 2021 PSU Grants. For the year ended December 31, 2021, the Company recorded the required share-based award expense related to the awards of $4.4 million, based on its assessment of the probability for achievement of the performance targets. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the following subsidiaries (collectively, the "Guarantor Subsidiaries"), which are 100%-owned subsidiaries of the Company. • M.D.C. Land Corporation • RAH of Florida, Inc. • Richmond American Construction, Inc. • Richmond American Construction NM, Inc. • Richmond American Homes of Arizona, Inc. • Richmond American Homes of Colorado, Inc. • Richmond American Homes of Florida, LP • Richmond American Homes of Idaho, Inc. (formerly known as Richmond American Homes of Illinois, Inc.) • Richmond American Homes of Maryland, Inc. • Richmond American Homes of Nevada, Inc. • Richmond American Homes of New Mexico, Inc. • Richmond American Homes of Oregon, Inc. • Richmond American Homes of Pennsylvania, Inc. • Richmond American Homes of Tennessee (formerly known as Richmond American Homes of New Jersey, Inc.) • Richmond American Homes of Texas, Inc. • Richmond American Homes of Utah, Inc. • Richmond American Homes of Virginia, Inc. • Richmond American Homes of Washington, Inc. The senior note indentures do not provide for a suspension of the guarantees. Other than for the senior notes due 2061, the senior note indentures, provide that any Guarantor may be released from its guarantee so long as (1) no default or event of default exists or would result from release of such guarantee, (2) the Guarantor being released has consolidated net worth of less than 5% of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (3) the Guarantors released from their guarantees in any year-end period comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (4) such release would not have a material adverse effect on the homebuilding business of the Company and its subsidiaries and (5) the Guarantor is released from its guarantee(s) under all Specified Indebtedness (other than by reason of payment under its guarantee of Specified Indebtedness). The indenture for the senior notes due 2061 provides that, if a Guarantor is released under its guarantees of our credit facilities or other publicly traded debt securities, the Guarantor will also be released under its guarantee of the senior notes due 2061. Upon delivery of an officers’ certificate and an opinion of counsel stating that all conditions precedent provided for in the indenture relating to such transactions have been complied with and the release is authorized, the guarantee will be automatically and unconditionally released. “Specified Indebtedness” means indebtedness under the senior notes, the Company’s Indenture dated as of December 3, 2002, the Revolving Credit Facility, and any refinancing, extension, renewal or replacement of any of the foregoing. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The Consolidated Financial Statements of M.D.C. Holdings, Inc. ("MDC," “the Company," “we,” “us,” or “our” which refers to M.D.C. Holdings, Inc. and its subsidiaries) include the accounts of MDC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances have been reclassified to conform to the current year’s presentation. |
Description of Business | Description of Business . We have homebuilding operations in Arizona, California, Colorado, Florida, Idaho, Maryland, New Mexico, Nevada, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia and Washington. The primary functions of our homebuilding operations include land acquisition and development, home construction, purchasing, marketing, merchandising, sales and customer service. We build and sell primarily single-family detached homes, which are designed and built to meet local customer preferences. We are the general contractor for all of our projects and retain subcontractors for site development and home construction. Our financial services operations consist of HomeAmerican Mortgage Corporation (“HomeAmerican”), which originates mortgage loans, primarily for our homebuyers, American Home Insurance Agency, Inc. (“American Home Insurance”), which offers third-party insurance products to our homebuyers, and American Home Title and Escrow Company (“American Home Title”), which provides title agency services to the Company and our homebuyers in Colorado, Florida, Maryland, Nevada, Pennsylvania and Virginia. The financial services operations also include Allegiant Insurance Company, Inc., A Risk Retention Group (“Allegiant”), which provides insurance coverage primarily to our homebuilding subsidiaries on homes that have been delivered and most of our subcontractors for completed work on those delivered homes, and StarAmerican Insurance Ltd. (“StarAmerican”), a wholly owned subsidiary of MDC, which is a re-insurer of Allegiant claims. |
Presentation | Presentation . Our balance sheet presentation is unclassified due to the fact that certain assets and liabilities have both short and long-term characteristics. |
Use of Accounting Estimates | Use of Accounting Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents . The Company periodically invests funds in highly liquid investments with an original maturity of three months or less, such as U.S. government securities, commercial bank deposits, commercial paper, certificates of deposit, money market funds and time deposits, which are included in cash and cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. |
Equity securities | Equity securities . Our equity securities consisted of holdings in common stock and exchange traded funds and were recorded at fair value with all changes in fair value recorded to other income (expense), net in the financial services section of our consolidated statements of operations and comprehensive income. |
Restricted Cash | Restricted Cash . We receive cash earnest money deposits from our customers who enter into home sale contracts. In certain states we are restricted from using such deposits for general purposes, unless we take measures to release state imposed restrictions on such deposits received from homebuyers, which may include posting blanket surety bonds. We had $12.8 million and $15.3 million in restricted cash related to homebuyer deposits at December 31, 2021 and 2020, respectively. |
Trade and Other Receivables | Trade and Other Receivables . Trade and other receivables primarily includes home sale receivables, which reflects cash to be received from title companies or outside brokers associated with closed homes. Generally, we will receive cash from title companies and outside brokers within a few days of the home being closed. At December 31, 2021 and 2020, receivables from contracts with customers were $64.5 million and $49.2 million, respectively, and are included in trade and other receivables on the accompanying consolidated balance sheets. |
Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Sale, net . Mortgage loans held-for-sale are recorded at fair value based on quoted market prices and estimated market prices received from a third-party. Using fair value allows an offset of the changes in fair values of the mortgage loans and the derivative instruments used to hedge them without having to comply with the requirements for hedge accounting. |
Inventories | Inventories . Our inventories are primarily associated with communities where we intend to construct and sell homes, including models and unsold homes. Components of housing completed or under construction primarily include: (1) land costs transferred from land and land under development; (2) direct construction costs associated with a house; (3) real property taxes, engineering fees, permits and other fees; (4) capitalized interest; and (5) indirect construction costs, which include field construction management salaries and benefits, utilities and other construction related costs. Costs capitalized to land and land under development primarily include: (1) land costs; (2) land development costs; (3) entitlement costs; (4) capitalized interest; (5) engineering fees; and (6) title insurance, real property taxes and closing costs directly related to the purchase of the land parcel. Land costs are transferred from land and land under development to housing completed or under construction at the point in time that construction of a home on an owned lot begins. In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment (“ASC 360”), homebuilding inventories, excluding those classified as held for sale, are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable. We evaluate inventories for impairment at each quarter end on a subdivision level basis as each such subdivision represents the lowest level of identifiable cash flows. In making this determination, we review, among other things, the following for each subdivision: • actual and trending “Operating Margin” (which is defined as home sale revenues less home cost of sales and all incremental costs associated directly with the subdivision, including sales commissions and marketing costs); • estimated future undiscounted cash flows and Operating Margin; • forecasted Operating Margin for homes in backlog; • actual and trending net home orders; • homes available for sale; • market information for each sub-market, including competition levels, home foreclosure levels, the size and style of homes currently being offered for sale and lot size; and • known or probable events indicating that the carrying value may not be recoverable. If events or circumstances indicate that the carrying value of our inventory may not be recoverable, assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision (including capitalized interest) to its carrying value. If the undiscounted future cash flows are less than the subdivision’s carrying value, the carrying value of the subdivision is written down to its then estimated fair value. We generally determine the estimated fair value of each subdivision by calculating the present value of the estimated future cash flows using discount rates, which are Level 3 inputs (see Note 6, Fair Value Measurements, in the notes to the financial statements for definitions of fair value inputs), that are commensurate with the risk of the subdivision under evaluation. The evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues, home construction costs, and development costs per home, all of which are Level 3 inputs. If land is classified as held for sale, in accordance with ASC 360, we measure it at the lower of the carrying value or fair value less estimated costs to sell. In determining fair value, we primarily rely upon the most recent negotiated price which is a Level 2 input (see Note 6, Fair Value Measurements , for definitions of fair value inputs). If a negotiated price is not available, we will consider several factors including, but not limited to, current market conditions, recent comparable sales transactions and market analysis studies. If the fair value less estimated costs to sell is lower than the current carrying value, the land is impaired down to its estimated fair value less costs to sell. |
Costs Related to Sales Facilities | Costs Related to Sales Facilities. Costs related to interior and exterior upgrades to the home that will be sold as part of the home, such as wall treatments and additional upgraded landscaping, are recorded as housing completed or under construction. Costs to furnish and ready the model home or on-site sales facility that will not be sold as part of the model home, such as furniture, construction of the sales facility parking lot or construction of the sales center, are capitalized as property and equipment, net. Other costs incurred related to the marketing of the community and readying the model home for sale are expensed as incurred. |
Property and Equipment, net | Property and Equipment, net . Property and equipment is carried at cost less accumulated depreciation. For property and equipment related to on-site sales facilities, depreciation is recorded using the units of production method as homes are delivered. For all other property and equipment, depreciation is recorded using a straight-line method over the estimated useful lives of the related assets, which range from 2 to 29 years. Depreciation and amortization expense for property and equipment was $30.2 million, $26.1 million and $22.8 million for the years ended December 31, 2021, 2020 and 2019, respectively which is recorded in selling, general and administrative expenses in the homebuilding or expenses in the financial services sections of our consolidated statements of operations and comprehensive income. The following table sets forth the cost and carrying value of our homebuilding property and equipment by major asset category. Cost Accumulated Carrying December 31, 2021: (Dollars in thousands) Sales facilities $ 67,947 $ (31,644) $ 36,303 Airplane 31,230 (11,481) 19,749 Computer software and equipment 23,690 (21,367) 2,323 Leasehold improvements 7,783 (6,522) 1,261 Other 2,811 (1,886) 925 Total $ 133,461 $ (72,900) $ 60,561 December 31, 2020: Sales facilities $ 71,870 $ (34,272) $ 37,598 Airplane 31,230 (10,813) 20,417 Computer software and equipment 23,801 (21,997) 1,804 Leasehold improvements 7,640 (6,357) 1,283 Other 2,361 (1,583) 778 Total $ 136,902 $ (75,022) $ 61,880 |
Deferred Tax Assets, net | Deferred Tax Assets, net . Deferred income taxes reflect the net tax effects of temporary differences between (1) the carrying amounts of the assets and liabilities for financial reporting purposes and (2) the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using current enacted tax rates in effect in the years in which those temporary differences are expected to reverse. A valuation allowance is recorded against a deferred tax asset if, based on the weight of available evidence, it is more-likely-than-not (a likelihood of more than 50%) that some portion, or all, of the deferred tax asset will not be realized. |
Variable Interest Entities | Variable Interest Entities . In accordance with ASC Topic 810, Consolidation (“ASC 810”), we analyze our land option contracts and other contractual arrangements to determine whether the corresponding land sellers are variable interest entities (“VIEs”) and, if so, whether we are the primary beneficiary. Although we do not have legal title to the optioned land, ASC 810 requires a company to consolidate a VIE if the company is determined to be the primary beneficiary. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact VIE’s economic performance, including, but not limited to, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. We also consider whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. We have concluded that, as of December 31, 2021 and 2020, we were not the primary beneficiary of any VIEs from which we are purchasing land under land option contracts. |
Goodwill | Goodwill. In accordance with ASC Topic 350, Intangibles–Goodwill and Other (“ASC 350” ) , we evaluate goodwill for possible impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use a three-step process to assess the realizability of goodwill. The first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, we analyze changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there are indicators of a significant decline in the fair value of a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future probability-weighted cash flows. If this step indicates that the carrying value of a reporting unit is in excess of its fair value, we will proceed to the third step where the fair value of the reporting unit will be allocated to assets and liabilities as they would in a business combination. Impairment occurs when the carrying amount of goodwill exceeds its estimated fair value calculated in the third step. Based on our analysis, we have concluded that as of December 31, 2021 and 2020, our goodwill was not impaired. |
Liability for Unrecognized Tax Benefits | Liability for Unrecognized Tax Benefits. ASC Topic 740, Income Taxes , regarding liabilities for unrecognized tax benefits provides guidance for the recognition and measurement in financial statements of uncertain tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process, the first step being recognition. We determine whether it is more-likely-than-not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation, based on the technical merits of the position. The technical merits of a tax position derive from both statutory and judicial authority (legislation and statutes, legislative intent, regulations, rulings, and case law) and their applicability to the facts and circumstances of the tax position. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority. Once the gross unrecognized tax benefit is determined, we also accrue for any interest and penalties, as well as any offsets expected from resultant amendments to federal or state tax returns. We record the aggregate effect of these items in income tax expense in the consolidated statements of operations and comprehensive income. To the extent this tax position would be offset against a similar deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed, the liability is treated as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. Otherwise, we record the corresponding liability in accrued and other liabilities in our consolidated balance sheets. |
Warranty Accrual | Warranty Accrual . Our homes are sold with limited third-party warranties. Under our agreement with the issuer of the third-party warranties, we are responsible for performing all of the work for the first two years of the warranty coverage and paying for substantially all of the work required to be performed during years three ten Warranty payments are recorded against the warranty accrual. Additional reserves may be established for known, unusual warranty-related expenditures not covered through the independent warranty accrual analysis performed by us. Warranty payments incurred for an individual house may differ from the related reserve established for the home at the time it was closed. The actual disbursements for warranty claims are evaluated in the aggregate to determine if an adjustment to the historical warranty accrual should be recorded. We assess the reasonableness and adequacy of the reserve and the per-unit reserve amount originally included in home cost of sales, as well as the timing of the reversal of any excess reserve on a quarterly basis, using historical payment data and other relevant information. Our warranty accrual is included in accrued and other liabilities in the homebuilding section of our consolidated balance sheets and adjustments to our warranty accrual are recorded as an increase or reduction to home cost of sales in the homebuilding section of our consolidated statements of operations and comprehensive income. See Note 12 to the Consolidated Financial Statements. |
Insurance Reserves | Insurance Reserves. The establishment of reserves for estimated losses associated with insurance policies issued by Allegiant and re-insurance agreements issued by StarAmerican are based on actuarial studies that include known facts and interpretations of circumstances, including our experience with similar cases and historical trends involving claim payment patterns, pending levels of unpaid claims, product mix or concentration, claim severity, frequency patterns depending on the business conducted, and changing regulatory and legal environments. It is possible that changes in the insurance payment experience used in estimating our ultimate insurance losses could have a material impact on our insurance reserves. See Note 13, Insurance and Construction Defect Claim Reserves , to the Consolidated Financial Statements. |
Reserves for Construction Defect Claims | Reserves for Construction Defect Claims. The establishment of reserves for estimated losses to be incurred by our homebuilding subsidiaries associated with (1) the self-insured retention (“SIR”) portion of construction defect claims that are expected to be covered under insurance policies with Allegiant and (2) the entire cost of any construction defect claims that are not expected to be covered by insurance policies with Allegiant are based on actuarial studies that include known facts similar to those established for our insurance reserves. It is possible that changes in the payment experience used in estimating our ultimate losses for construction defect claims could have a material impact on our reserves. See Note 13, Insurance and Construction Defect Claim Reserves , to the Consolidated Financial Statements. |
Litigation Reserves | Litigation Reserves. We and certain of our subsidiaries have been named as defendants in various cases. We reserve for estimated exposure with respect to these cases based upon currently available information on each case. See Note 17, Commitments and Contingencies , to the Consolidated Financial Statements. |
Derivatives Financial Instruments | Derivative Financial Instruments . The derivative instruments we utilize in the normal course of business are interest rate lock commitments and forward sales of mortgage-backed securities, both of which typically are short-term in nature. Forward sales of mortgage-backed securities are utilized to hedge changes in fair value of our interest rate lock commitments as well as mortgage loans held-for-sale that are not under commitments to sell. For forward sales of mortgage-backed securities, as well as interest rate lock commitments that are still outstanding at the end of a reporting period, we record the changes in fair value of the derivatives in revenues in the financial services section of our consolidated statements of operations and comprehensive income with an offset to other assets or accounts payable and accrued liabilities in the financial services section of our consolidated balance sheets, depending on the nature of the change. At December 31, 2021 and 2020, we had interest rate lock commitments with aggregate principal balances of $268.8 million and $230.5 million, respectively, at average interest rates of 2.91% and 2.69% respectively. In addition, we had $122.3 million and $91.1 million of mortgage loans held-for-sale at December 31, 2021 and 2020, respectively, that had not yet been committed to a mortgage purchaser. In order to economically hedge the changes in fair value of our interest rate lock commitments and mortgage loans held-for-sale which had not yet been committed to a mortgage purchaser, we had forward sales of securities totaling $275.6 million and $203.0 million at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021, 2020 and 2019, we recorded net gains (losses) on our derivatives of $(1.7) million, $4.7 million and $0.3 million, respectively. For further discussion of our policies regarding interest rate lock commitments, see our “Revenue Recognition for HomeAmerican” accounting policy section below. |
Revenue recognition for Homebuilding Segments | Revenue Recognition for Homebuilding Segments. We recognize home sale revenues from home deliveries when we have satisfied the performance obligations within the sales agreement, which is generally when title to and possession of the home are transferred to the buyer at the home closing date. Revenue from a home delivery includes the base sales price and any purchased options and upgrades and is reduced for any sales price incentives. In certain states where we build, we are not always able to complete certain outdoor features (such as landscaping or pools) prior to closing the home. To the extent these separate deliverables are not complete upon the closing of a home, we defer home sale revenues related to incomplete outdoor features, and recognize that revenue upon completion of the outdoor features. Revenue expected to be recognized in any future year related to remaining performance obligations (if any) and contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. Revenue Recognition for HomeAmerican . Revenues recorded by HomeAmerican primarily reflect (1) origination fees and (2) the corresponding sale, or expected future sale, of a loan, which will include the estimated earnings from either the release or retention of a loan’s servicing rights. Origination fees are recognized when a loan is originated. When an interest rate lock commitment is made to a customer, we record the expected gain on sale of the mortgage, plus the estimated earnings from the expected sale of the associated servicing rights, adjusted for a pull-through percentage (which is defined as the likelihood that an interest rate lock commitment will be originated), as revenue. As the interest rate lock commitment gets closer to being originated, the expected gain on the sale of that loan plus its servicing rights is updated to reflect current market value and the increase or decrease in the fair value of that interest rate lock commitment is recorded through revenues. At the same time, the expected pull-through percentage of the interest rate lock commitment to be originated is updated (typically an increase as the interest lock commitment gets closer to origination) and, if there has been a change, revenues are adjusted as necessary. After origination, our mortgage loans, generally including their servicing rights, are sold to third-party purchasers in accordance with sale agreements entered into by us with a third-party purchaser of the loans. We make representations and warranties with respect to the status of loans transferred in the sale agreements. The sale agreements generally include statements acknowledging the transfer of the loans is intended by both parties to constitute a sale. Sale of a mortgage loan has occurred when the following criteria, among others, have been met: (1) fair consideration has been paid for transfer of the loan by a third party in an arms-length transaction, (2) all the usual risks and rewards of ownership that are in substance a sale have been transferred by us to the third party purchaser; and (3) we do not have a substantial continuing involvement with the mortgage loan. We measure mortgage loans held-for-sale at fair value with the changes in fair value being reported in earnings at each reporting date. The impact of recording changes in fair value to earnings did not have a material impact on our financial position, results of operations or cash flows during the years ended December 31, 2021, 2020 or 2019. Our net gains on the sale of mortgage loans were $90.9 million, $93.3 million and $55.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, and are included as a component of revenues in the financial services section of the consolidated statements of operations and comprehensive income. |
Home Cost of Sales | Home Cost of Sales . Home cost of sales includes the specific construction costs of each home and all applicable land acquisition, land development and related costs, warranty costs and finance and closing costs, including closing cost incentives. We use the specific identification method for the purpose of accumulating home construction costs and allocate costs to each lot within a subdivision associated with land acquisition and land development based upon relative fair value of the lots prior to home construction. Lots within a subdivision typically have comparable fair values, and, as such, we generally allocate costs equally to each lot within a subdivision. We record all home cost of sales when a home is closed and performance obligations have been completed on a house-by-house basis. When a home is closed, we may not have paid for all costs necessary to complete the construction of the home. This includes (1) construction that has been completed on a house but has not yet been billed or (2) work still to be performed on a home (such as limited punch-list items or certain outdoor features). For each of these items, we create an estimate of the total expected costs to be incurred and, with the exclusion of outdoor features, the estimated total costs for those items, less any amounts paid to date, are included in home cost of sales. Actual results could differ from such estimates. For incomplete outdoor features, we will defer the revenue and any cost of sales on this separate stand-alone deliverable until complete. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense . In accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”), stock-based compensation expense for all share-based payment awards is based on the grant date fair value. For stock option awards granted with just service and/or performance conditions, we estimate the fair value using a Black-Scholes option pricing model. For any stock option awards granted that contain a market condition, we estimate the fair value using a Monte Carlo simulation model. We recognize expense for share-based payment awards based on their varying vesting conditions as follows: • Awards with service-based vesting conditions only – Expense is recognized on a straight-line basis over the requisite service period of the award. • Awards with performance-based vesting conditions – Expense is not recognized until it is determined that it is probable the performance-based conditions will be met. When achievement of a performance-based condition is probable, a catch-up of expense will be recorded as if the award had been vesting on a straight-line basis from the award date. The award will continue to be expensed on a straight-line basis until the probability of achieving the performance-based condition changes, if applicable. An annual forfeiture rate is estimated at the time of grant for all share-based payment awards that contain service and/or performance conditions. That rate is revised, if necessary, in subsequent periods if the actual forfeiture rate differs from our estimate. |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share. For purposes of calculating earnings (loss) per share (“EPS”), a company that has participating security holders (for example, holders of unvested restricted stock that have non-forfeitable dividend rights) is required to utilize the two-class method for calculating earnings per share unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income/(loss)). Our common shares outstanding are comprised of shareholder owned common stock and shares of unvested restricted stock held by participating security holders. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding, excluding participating shares in accordance with ASC 260. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options outstanding and contingently issuable equity awards. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires measurement and recognition of expected credit losses for financial assets held. The amendments in ASU 2016-13 eliminate the probable threshold for initial recognition of a credit loss in current GAAP and reflect an entity’s current estimate of all expected credit losses. On January 1, 2020, we adopted ASU 2016-13 using the modified retrospective transition method, resulting in a cumulative effect adjustment that decreased the opening balance of retained earnings by less than $0.1 million. The standard did not materially impact our consolidated statements of operations and comprehensive income or consolidated cash flows. In March 2020, the Securities and Exchange Commission ("SEC") adopted amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees, in Rule 3-10 of Regulation S-X. The amended rule focuses on providing material, relevant and decision-useful information regarding guarantees and other credit enhancements, while eliminating certain prescriptive requirements. The rule is effective January 4, 2021 but earlier compliance is permitted. The Company adopted these amendments on June 30, 2020. As the combined assets, liabilities and results of operations of M.D.C. Holdings, Inc. and the Guarantor Subsidiaries (the “Obligor Group”) are not materially different from those in the homebuilding section of our consolidated balance sheets and consolidated statements of operations and comprehensive income, separate summarized financial information of the Obligor Group has not been included. See Note 22, Supplemental Guarantor Information , for further information regarding subsidiary guarantees. ASU 2016-02, Leases (“ASU 2016-02”) is codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes current lease guidance in ASC 840 and requires a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases. The lease liability is equal to the present value of the remaining lease payments while the right-of-use asset is similarly calculated and then adjusted for initial direct costs. In addition, ASC 842 expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method. We elected available practical expedients permitted under the transition guidance within the new standard, which among other items, allowed the Company to carry forward its historical lease classification and not reassess existing leases under the new definition of a lease in ASC 842. In addition, we will account for lease and non-lease components as a single lease component. The adoption of ASC 842 resulted in the recording of additional net lease assets and lease liabilities of $34.2 million and $34.3 million, respectively, as of January 1, 2019. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as an adjustment to retained earnings. The operating lease right-of-use asset and lease liability is included as a component of prepaids and other assets and accrued and other liabilities, respectively, in the homebuilding section and other assets and accounts payable and accrued liabilities, respectively, in the financial services section of our consolidated balance sheet. The standard did not materially impact our consolidated statements of operations and comprehensive income or consolidated cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table sets forth the cost and carrying value of our homebuilding property and equipment by major asset category. Cost Accumulated Carrying December 31, 2021: (Dollars in thousands) Sales facilities $ 67,947 $ (31,644) $ 36,303 Airplane 31,230 (11,481) 19,749 Computer software and equipment 23,690 (21,367) 2,323 Leasehold improvements 7,783 (6,522) 1,261 Other 2,811 (1,886) 925 Total $ 133,461 $ (72,900) $ 60,561 December 31, 2020: Sales facilities $ 71,870 $ (34,272) $ 37,598 Airplane 31,230 (10,813) 20,417 Computer software and equipment 23,801 (21,997) 1,804 Leasehold improvements 7,640 (6,357) 1,283 Other 2,361 (1,583) 778 Total $ 136,902 $ (75,022) $ 61,880 |
Supplemental Income Statement_2
Supplemental Income Statement and Cash Flow Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Interest and Other Income | The table below details homebuilding interest and other income and financial services other income (expense), net: Year Ended December 31, 2021 2020 2019 Homebuilding (Dollars in thousands) Interest and other income Interest income $ 1,502 $ 2,711 $ 7,797 Other income 4,463 1,522 1,273 Total $ 5,965 $ 4,233 $ 9,070 Financial Services Other income (expense), net Interest income $ 4,271 $ 3,578 $ 4,404 Dividend income — 335 1,022 Gain (loss) on marketable equity securities, net — (8,285) 11,797 Total $ 4,271 $ (4,372) $ 17,223 |
Schedule of Cash Flow, Supplemental Disclosures | The table below sets forth supplemental disclosures of cash flow information and non-cash investing and financing activities. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Cash paid for: Interest, net of interest capitalized $ 632 $ 685 $ 685 Income taxes $ 192,372 $ 72,988 $ 56,476 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables present revenue and pretax income / (loss) relating to our homebuilding and financial services operations: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding West $ 2,964,766 $ 2,106,241 $ 1,771,060 Mountain 1,567,198 1,293,779 1,131,568 East 570,492 365,359 302,620 Total homebuilding revenues $ 5,102,456 $ 3,765,379 $ 3,205,248 Financial Services Mortgage operations $ 107,535 $ 101,675 $ 55,222 Other 44,677 34,157 32,783 Total financial services revenues $ 152,212 $ 135,832 $ 88,005 Total revenues $ 5,254,668 $ 3,901,211 $ 3,293,253 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding West $ 463,302 $ 229,951 $ 163,069 Mountain 231,523 175,001 136,313 East 59,494 20,006 9,857 Corporate (94,631) (46,441) (64,477) Total homebuilding pretax income $ 659,688 $ 378,517 $ 244,762 Financial Services Mortgage operations $ 69,455 $ 71,017 $ 29,312 Other 22,551 7,978 30,915 Total financial services pretax income $ 92,006 $ 78,995 $ 60,227 Total pretax income $ 751,694 $ 457,512 $ 304,989 |
Reconciliation of Assets from Segment to Consolidated | The assets in our financial services operations consist mostly of cash and cash equivalents and mortgage loans held-for-sale. December 31, 2021 2020 (Dollars in thousands) Homebuilding Assets West $ 2,472,378 $ 1,855,567 Mountain 1,072,717 905,007 East 450,675 274,937 Corporate 547,364 470,909 Total homebuilding assets $ 4,543,134 $ 3,506,420 Financial Services Mortgage operations $ 313,373 $ 279,649 Other 107,021 78,851 Total financial services assets $ 420,394 $ 358,500 Total assets $ 4,963,528 $ 3,864,920 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows our basic and diluted EPS calculations: Year Ended December 31, 2021 2020 2019 (Dollars in thousands, except per share amounts) Numerator Net income $ 573,657 $ 367,582 $ 238,312 Less: distributed earnings allocated to participating securities (634) (583) (466) Less: undistributed earnings allocated to participating securities (2,343) (1,748) (1,020) Net income attributable to common stockholders (numerator for basic earnings per share) 570,680 365,251 236,826 Add back: undistributed earnings allocated to participating securities 2,343 1,748 1,020 Less: undistributed earnings reallocated to participating securities (2,269) (1,704) (992) Numerator for diluted earnings per share under two class method $ 570,754 $ 365,295 $ 236,854 Denominator Weighted-average common shares outstanding 70,174,281 68,531,856 66,546,347 Add: dilutive effect of stock options 2,302,773 1,792,006 1,876,980 Add: dilutive effect of contingently issuable equity awards 377,547 352,719 375,552 Denominator for diluted earnings per share under two class method 72,854,601 70,676,581 68,798,879 Basic Earnings Per Common Share $ 8.13 $ 5.33 $ 3.56 Diluted Earnings Per Common Share $ 7.83 $ 5.17 $ 3.44 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table sets forth the fair values and methods used for measuring the fair values of financial instruments on a recurring basis: Fair Value Financial Instrument Hierarchy December 31, 2021 December 31, 2020 (Dollars in thousands) Mortgage loans held-for-sale, net Level 2 $ 282,529 $ 232,556 |
Gain (Loss) on Securities | The following table reconciles the net gain (loss) recognized during the year ended December 31, 2021 and 2020 on equity securities to the unrealized gain (loss) recognized during the period on equity securities still held at the reporting date. Year Ended December 31, 2021 2020 (Dollars in thousands) Net gain (loss) recognized during the period on equity securities $ — $ (8,285) Less: Net gain (loss) recognized during the period on equity securities sold during the period — (8,285) Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ — $ — |
Fair Value of Senior Notes | The estimated values of the senior notes in the following table are based on Level 2 inputs, which primarily reflect estimated prices for our senior notes which were provided by multiple sources. December 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (Dollars in thousands) $250 million 5.500% senior notes due January 2024, net $ — $ — $ 249,233 $ 275,463 $300 million 3.850% senior notes due January 2030, net 297,699 319,057 297,458 331,384 $350 million 2.500% senior notes due January 2031, net 347,126 339,185 — — $500 million 6.000% senior notes due January 2043, net 490,903 628,092 490,700 667,288 $350 million 3.966% senior notes due August 2061, net 346,053 337,017 — — Total $ 1,481,781 $ 1,623,351 $ 1,037,391 $ 1,274,135 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The table below sets forth, by reportable segment, information relating to our homebuilding inventories. December 31, December 31, (Dollars in thousands) Housing Completed or Under Construction: West $ 1,077,256 $ 902,842 Mountain 596,164 464,501 East 244,196 119,244 Subtotal 1,917,616 1,486,587 Land and Land Under Development: West 1,235,363 822,504 Mountain 435,958 391,054 East 171,914 132,085 Subtotal 1,843,235 1,345,643 Total Inventories $ 3,760,851 $ 2,832,230 |
Schedule of Inventory Impairments | Inventory impairments recognized by segment for the years ended December 31, 2021, 2020 and 2019 are shown in the table below. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Housing Completed or Under Construction: West $ 1,600 $ — $ 100 Mountain — — — East — — 435 Subtotal 1,600 — 535 Land and Land Under Development: West — — — Mountain — — 400 East — — — Subtotal — — 400 Total Inventory Impairments $ 1,600 $ — $ 935 |
Quantitative Data for Fair Value of the Impaired Inventory | The table below provides quantitative data, for the periods presented, where applicable, used in determining the fair value of the impaired inventory. Impairment Data Quantitative Data Three Months Ended Number of Subdivisions Impaired Inventory Impairments Fair Value of Inventory After Impairments Discount Rate (Dollars in thousands) December 31, 2021 1 $ 1,600 $ 6,903 N/A Total $ 1,600 March 31, 2019 2 $ 610 $ 10,476 N/A December 31, 2019 2 325 3,948 N/A Total $ 935 |
Capitalization of Interest (Tab
Capitalization of Interest (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capitalization of Interest [Abstract] | |
Capitalization of Interest | For all periods presented below, our qualified assets exceeded our homebuilding debt and as such, all interest incurred has been capitalized. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Homebuilding interest incurred $ 72,500 $ 61,276 $ 63,635 Less: Interest capitalized (72,500) (61,276) (63,635) Homebuilding interest expensed $ — $ — $ — Interest capitalized, beginning of period $ 52,777 $ 55,310 $ 54,845 Plus: Interest capitalized during period 72,500 61,276 63,635 Less: Previously capitalized interest included in home and land cost of sales (67,223) (63,809) (63,170) Interest capitalized, end of period $ 58,054 $ 52,777 $ 55,310 |
Homebuilding Prepaid and Othe_2
Homebuilding Prepaid and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets | The following table sets forth the components of homebuilding prepaids and other assets. December 31, 2021 2020 (Dollars in thousands) Operating lease right-of-use asset (Note 2 and Note 10) $ 25,514 $ 29,226 Land option deposits 41,617 29,987 Prepaids 26,058 26,929 Goodwill 6,008 6,008 Deferred debt issuance costs on revolving credit facility, net 7,166 9,043 Other 199 492 Total $ 106,562 $ 101,685 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | Components of operating lease expense were as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Operating lease cost 1 $ 8,028 $ 8,193 $ 7,690 Sublease income (Note 15) (156) (153) (150) Net lease cost $ 7,872 $ 8,040 $ 7,540 1 Includes variable lease costs, which are immaterial. |
Schedule of Lease Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,598 $ 7,394 $ 7,255 Leased assets obtained in exchange for new operating lease liabilities $ 1,765 $ 4,050 $ 3,255 |
Schedule of Lease Terms and Discount Rates | Weighted-average remaining lease term and discount rate for operating leases were as follows: December 31, 2021 December 31, 2020 Weighted-average remaining lease term (years) 4.5 5.3 Weighted-average discount rate 5.5% 5.5% |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities were as follows: Year Ended December 31, (Dollars in thoursands) 2022 $ 6,800 2023 6,643 2024 5,951 2025 5,733 2026 4,661 Thereafter 434 Total operating lease payments 1 $ 30,222 Less: Interest (3,530) Present value of operating lease liabilities 2 $ 26,692 ____________________________ 1 Operating lease payments exclude $4.5 million of legally binding lease payments for leases signed but not yet commenced. 2 Homebuilding and financial services operating lease liabilities of $26.4 million and $0.3 million, respectively, are included as a component of accrued and other liabilities and accounts payable and accrued liabilities, respectively, in the homebuilding and financial services section of our consolidated balance sheets at December 31, 2021. |
Homebuilding Accrued and Othe_2
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | The following table sets forth information relating to homebuilding accrued and other liabilities. December 31, 2021 2020 (Dollars in thousands) Accrued compensation and related expenses $ 81,417 $ 56,682 Customer and escrow deposits 89,353 67,022 Warranty accrual 37,491 33,664 Lease liability (Note 2 and Note 10) 26,440 30,221 Accrued interest 30,934 27,650 Construction defect claim reserves 9,287 8,479 Land development and home construction accruals 22,012 10,824 Other accrued liabilities 73,976 66,193 Total accrued and other liabilities $ 370,910 $ 300,735 |
Schedule of Accounts Payable and Accrued Liabilities | The following table sets forth information relating to financial services accounts payable and accrued liabilities. December 31, 2021 2020 (Dollars in thousands) Insurance reserves $ 72,900 $ 61,575 Accounts payable and other accrued liabilities 25,003 34,055 Total accounts payable and accrued liabilities $ 97,903 $ 95,630 |
Warranty Accrual (Tables)
Warranty Accrual (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Any changes made to those rates did not materially affect our warranty expense or gross margin from home sales for the years ended December 31, 2021, 2020 and 2019. Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Balance at beginning of period $ 33,664 $ 31,386 $ 28,262 Expense provisions 22,696 16,700 15,525 Cash payments (18,850) (12,343) (12,466) Adjustments (19) (2,079) 65 Balance at end of period $ 37,491 $ 33,664 $ 31,386 |
Insurance and Construction De_2
Insurance and Construction Defect Claim Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | These reserves are included as a component of accounts payable and accrued liabilities and accrued and other liabilities in either the financial services or homebuilding sections of the consolidated balance sheets, respectively. December 31, 2021 2020 2019 (Dollars in thousands) Balance at beginning of period $ 70,054 $ 60,415 $ 55,308 Expense provisions 19,653 15,403 12,650 Cash payments, net of recoveries (7,520) (5,764) (8,493) Adjustments — — 950 Balance at end of period $ 82,187 $ 70,054 $ 60,415 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Our provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Current tax provision: Federal $ 148,741 $ 63,224 $ 50,870 State 35,784 16,018 2,137 Total current 184,525 79,242 53,007 Deferred tax provision: Federal (6,699) 6,380 5,175 State 211 4,308 8,495 Total deferred (6,488) 10,688 13,670 Provision for income taxes $ 178,037 $ 89,930 $ 66,677 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount that would be computed by applying the statutory federal income tax rate of 21% in 2021, 2020 and 2019 to income before income taxes as a result of the following: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Tax expense computed at federal statutory rate $ 157,856 $ 96,077 $ 64,048 State income tax expense, net of federal benefit 26,441 17,535 9,810 Limitation on executive compensation 14,915 8,102 4,463 Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits (4,044) 473 (1,571) Stock based compensation (windfall)/shortfall (1,830) (7,907) (2,828) Federal energy credits (14,558) (23,331) (7,649) Rate changes 81 (291) 190 Change in valuation allowance (1,054) (2,128) 121 Other 230 1,400 93 Provision for income taxes $ 178,037 $ 89,930 $ 66,677 Effective tax rate 23.7 % 19.7 % 21.9 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows: December 31, 2021 2020 (Dollars in thousands) Deferred tax assets: State net operating loss carryforwards $ 3,361 $ 5,739 Stock-based compensation expense 4,350 4,546 Warranty, litigation and other reserves 14,785 12,686 Accrued compensation 8,602 2,958 Asset impairment charges 468 1,416 Inventory, additional net costs capitalized for tax purposes 8,298 8,938 Other, net 1,526 3,441 Total deferred tax assets 41,390 39,724 Valuation allowance (3,316) (4,370) Total deferred tax assets, net of valuation allowance 38,074 35,354 Deferred tax liabilities: Property, equipment and other assets 10,871 11,654 Deferral of profit on home sales 4,668 7,144 Other, net 4,593 5,102 Total deferred tax liabilities 20,132 23,900 Net deferred tax asset $ 17,942 $ 11,454 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes activity for the gross unrecognized tax benefit component of our total liability for uncertain tax positions for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Gross unrecognized tax benefits at beginning of year $ 8,497 $ 8,515 $ 8,579 Increases related to prior year tax positions 162 121 75 Decreases related to prior year tax positions — — — Lapse of applicable statute of limitations (8,276) (139) (139) Gross unrecognized tax benefits at end of year $ 383 $ 8,497 $ 8,515 |
Lines of Credit and Total Deb_2
Lines of Credit and Total Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt obligations at December 31, 2021 and 2020, net of any unamortized debt issuance costs or discount, were as follows: December 31, 2021 2020 (Dollars in thousands) $250 million 5.500% senior notes due January 2024, net $ — $ 249,233 $300 million 3.850% senior notes due January 2030, net 297,699 297,458 $350 million 2.500% senior notes due January 2031, net 347,126 — $500 million 6.000% senior notes due January 2043, net 490,903 490,700 $350 million 3.966% senior notes due August 2061, net 346,053 — Total $ 1,481,781 $ 1,037,391 |
Concentration of Third-party _2
Concentration of Third-party Mortgage Purchasers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table sets forth the percent of mortgage loans sold by HomeAmerican to its primary third party purchasers during 2021, 2020 and 2019. No other third parties purchased greater than 10 percent of our mortgage loans during 2021, 2020 or 2019. Year Ended December 31, 2021 2020 2019 PennyMac Loan Services, LLC 37 % 33 % 41 % Fannie Mae 19 % 24 % 7 % Chase Manhattan Mortgage 13 % 4 % 8 % Ginnie Mae 9 % 18 % 4 % Wells Fargo Funding, Inc. 6 % 9 % 16 % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Service-Based Options Granted | The fair values for Service-Based options granted for the years ended December 31, 2021, 2020 and 2019 were estimated using the Black-Scholes option pricing model with the below weighted-average assumptions. Year Ended December 31, 2021 2020 2019 Expected lives of options (years) 5.4 9.5 9.5 Expected volatility 40.4 % 62.8 % 29.9 % Risk free interest rate 0.8 % 0.7 % 1.7 % Dividend yield rate 3.0 % 5.1 % 3.4 % |
Schedule of Stock Option Award Activity | Stock option activity under our option plans, restated as applicable for stock dividends, for the years ended December 31, 2021, 2020 and 2019 were as follows. Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Outstanding Stock Option Activity Outstanding, beginning of year 4,364,161 $ 23.37 5,831,119 $ 22.22 6,452,388 $ 21.76 Granted 15,000 53.32 432,000 23.90 445,227 32.92 Exercised (139,157) 19.87 (1,898,958) 19.96 (1,066,496) 23.75 Forfeited — N/A — N/A — N/A Cancelled — N/A — N/A — N/A Outstanding, end of year 4,240,004 $ 23.64 4,364,161 $ 23.37 5,831,119 $ 22.22 |
Schedule of Nonvested Share Activity | Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Unvested Stock Option Activity Outstanding, beginning of year 875,519 $ 7.76 756,268 $ 6.67 522,225 $ 5.80 Granted 15,000 14.66 432,000 8.73 445,227 7.30 Vested (458,519) 7.52 (312,749) 6.44 (211,184) 5.49 Forfeited — — — — — N/A Unvested, end of year 432,000 $ 8.25 875,519 $ 7.76 756,268 $ 6.67 |
Schedule of Stock Options that are Vested or Expected to Vest | The following table provides data for our stock options that are vested or expected to vest as of December 31, 2021. Exercisable or expected to vest Number outstanding 4,240,004 Weighted-average exercise price $ 23.64 Aggregate intrinsic value (in thousands) $ 136,501 Weighted-average remaining contractual term (years) 4.62 Exercisable Number outstanding 3,808,004 Weighted-average exercise price $ 23.27 Aggregate intrinsic value (in thousands) $ 124,006 Weighted-average remaining contractual term (years) 4.22 |
Schedule of Outstanding Exercisable Stock Options | The following table summarizes information associated with outstanding and exercisable stock options at December 31, 2021. Options Outstanding Options Exercisable Range of Exercise Price Number Weighted- Weighted- Number Weighted- Weighted- $ 15.01 - $ 20.00 61,172 3.30 $ 18.43 61,172 3.30 $ 18.43 $ 20.01 - $ 25.00 3,189,819 3.99 21.84 2,901,819 3.56 21.63 $ 25.01 - $ 30.00 542,013 5.94 26.59 542,013 5.94 26.59 $ 30.01 - $ 35.00 432,000 7.59 32.92 288,000 7.59 32.92 $ 50.01 - $ 55.00 15,000 9.58 53.32 15,000 9.58 53.32 Total 4,240,004 4.62 $ 23.64 3,808,004 4.22 $ 23.27 |
Schedule of Nonvested Restricted Stock Units Activity | Non-vested restricted stock awards, restated as applicable for stock dividends, at December 31, 2021, 2020 and 2019 and changes during those years were as follows: Year Ended December 31, 2021 2020 2019 Number of Weighted- Number of Weighted- Number of Weighted- Unvested, beginning of year 413,274 $ 35.94 371,583 $ 28.28 364,942 $ 23.71 Granted 208,386 53.47 261,026 39.93 181,090 31.34 Vested (257,430) 38.49 (217,332) 27.59 (168,734) 25.22 Forfeited (16,678) 49.21 (2,003) 38.13 (5,715) 28.30 Unvested, end of year 347,552 $ 47.27 413,274 $ 35.94 371,583 $ 28.28 |
Schedule of Performance Shares Activity and Outstanding | The number of PSUs earned shall be adjusted to be proportional to the partial performance between the Threshold Goals, Target Goals and Maximum Goals. Details for each defined term above for each grant have been provided in the table below. Threshold Goal Target Goal Maximum Goal Maximum Potential Expense to be Recognized * Maximum Remaining Expense to be Recognized * Date of Award Performance Period Base Period Base Period Revenues PSUs Home Sale Revenues PSUs Home Sale Revenues PSUs Home Sale Revenues Fair Value per Share May 23, 2018 April 1, 2018 - March 31, 2021 April 1, 2017 - March 31, 2018 $2.543 billion 157,464 $2.670 billion 314,928 $2.797 billion 629,856 $3.052 billion $ 23.68 $ 14,915 $ — Aug 5, 2019 January 1, 2019 - December 31, 2021 January 1, 2018 - December 31, 2018 $2.982 billion 145,800 $3.131 billion 291,600 $3.280 billion 583,200 $3.578 billion $ 30.19 $ 17,604 $ — Aug 20, 2020 January 1, 2020 - December 31, 2022 January 1, 2019 - December 31, 2019 $3.205 billion 145,800 $3.366 billion 291,600 $3.526 billion 583,200 $3.846 billion $ 39.79 $ 23,205 $ 9,831 Jul 14, 2021 January 1, 2021 - December 31, 2023 January 1, 2020 - December 31, 2020 $3.765 billion 198,750 $3.953 billion 397,500 $4.142 billion 795,000 $4.518 billion $ 44.35 $ 35,255 $ 30,824 _______________________ * Dollars in thousands |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Earnest money deposits | $ 12.8 | $ 15.3 | |
Receivables from contracts with customers | 64.5 | 49.2 | |
Depreciation and amortization expense | 30.2 | 26.1 | $ 22.8 |
Goodwill impairment loss | $ 0 | 0 | |
Warranty period responsible for performing all work | 2 years | ||
Derivative notional amount | $ 275.6 | 203 | |
Gain (loss) on derivatives, net | (1.7) | 4.7 | 0.3 |
Gain on sale of mortgage loans | 90.9 | 93.3 | $ 55.3 |
Interest Rate Lock Commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | $ 268.8 | $ 230.5 | |
Average fixed interest rate | 2.91% | 2.69% | |
Mortgage loans held-for-sale, net | $ 122.3 | $ 91.1 | |
Minimum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Useful life | 2 years | ||
Warranty period responsible for paying for substantially all work required to be performed | 3 years | ||
Maximum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Useful life | 29 years | ||
Warranty period responsible for paying for substantially all work required to be performed | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cost and Carrying Value of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 133,461 | $ 136,902 |
Accumulated Depreciation and Amortization | (72,900) | (75,022) |
Carrying Value | 60,561 | 61,880 |
Sales facilities | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 67,947 | 71,870 |
Accumulated Depreciation and Amortization | (31,644) | (34,272) |
Carrying Value | 36,303 | 37,598 |
Airplane | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 31,230 | 31,230 |
Accumulated Depreciation and Amortization | (11,481) | (10,813) |
Carrying Value | 19,749 | 20,417 |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 23,690 | 23,801 |
Accumulated Depreciation and Amortization | (21,367) | (21,997) |
Carrying Value | 2,323 | 1,804 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 7,783 | 7,640 |
Accumulated Depreciation and Amortization | (6,522) | (6,357) |
Carrying Value | 1,261 | 1,283 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,811 | 2,361 |
Accumulated Depreciation and Amortization | (1,886) | (1,583) |
Carrying Value | $ 925 | $ 778 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to opening balance (less than) | $ 887,163 | $ 711,666 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaids and other assets | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |||
Homebuilding Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use asset | 25,514 | 29,226 | ||
Operating lease liability | $ 26,440 | $ 30,221 | ||
Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to opening balance (less than) | $ 100 | |||
Accounting Standards Update 2016-02 | Homebuilding Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use asset | $ 34,200 | |||
Operating lease liability | $ 34,300 |
Supplemental Income Statement_3
Supplemental Income Statement and Cash Flow Disclosure - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Homebuilding Segment | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 1,502 | $ 2,711 | $ 7,797 |
Other income | 4,463 | 1,522 | 1,273 |
Total | 5,965 | 4,233 | 9,070 |
Financial Services Segment | |||
Segment Reporting Information [Line Items] | |||
Interest income | 4,271 | 3,578 | 4,404 |
Dividend income | 0 | 335 | 1,022 |
Gain (loss) on marketable equity securities, net | 0 | (8,285) | 11,797 |
Total | $ 4,271 | $ (4,372) | $ 17,223 |
Supplemental Income Statement_4
Supplemental Income Statement and Cash Flow Disclosure - Supplemental Disclosures of Cash Flow Information and Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest, net of interest capitalized | $ 632 | $ 685 | $ 685 |
Income taxes | $ 192,372 | $ 72,988 | $ 56,476 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Change in pretax income | $ (751,694) | $ (457,512) | $ (304,989) |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | segment | 1 | ||
Homebuilding Segment | |||
Segment Reporting Information [Line Items] | |||
Change in pretax income | $ (659,688) | (378,517) | (244,762) |
Homebuilding Segment | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Change in pretax income | 11,100 | ||
Financial Services Segment | |||
Segment Reporting Information [Line Items] | |||
Change in pretax income | (92,006) | $ (78,995) | (60,227) |
Financial Services Segment | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Change in pretax income | 1,600 | ||
Corporate Segment | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Change in pretax income | $ 0 | $ 13,100 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Revenue From Segments to Consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,254,668 | $ 3,901,211 | $ 3,293,253 |
Homebuilding Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,102,456 | 3,765,379 | 3,205,248 |
Homebuilding Segment | West | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,964,766 | 2,106,241 | 1,771,060 |
Homebuilding Segment | Mountain | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,567,198 | 1,293,779 | 1,131,568 |
Homebuilding Segment | East | |||
Segment Reporting Information [Line Items] | |||
Revenues | 570,492 | 365,359 | 302,620 |
Financial Services Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 152,212 | 135,832 | 88,005 |
Financial Services Segment | Mortgage operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 107,535 | 101,675 | 55,222 |
Financial Services Segment | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 44,677 | $ 34,157 | $ 32,783 |
Segment Reporting - Reconcili_2
Segment Reporting - Reconciliation of Pretax Operating Income From Segments to Consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Income before income taxes | $ 751,694 | $ 457,512 | $ 304,989 |
Homebuilding Segment | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 659,688 | 378,517 | 244,762 |
Income before income taxes | 659,688 | 378,517 | 244,762 |
Homebuilding Segment | Corporate | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | (94,631) | (46,441) | (64,477) |
Homebuilding Segment | West | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 463,302 | 229,951 | 163,069 |
Homebuilding Segment | Mountain | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 231,523 | 175,001 | 136,313 |
Homebuilding Segment | East | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 59,494 | 20,006 | 9,857 |
Financial Services Segment | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 92,006 | 78,995 | 60,227 |
Income before income taxes | 92,006 | 78,995 | 60,227 |
Financial Services Segment | Mortgage operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | 69,455 | 71,017 | 29,312 |
Financial Services Segment | Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Income before income taxes | $ 22,551 | $ 7,978 | $ 30,915 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 4,963,528 | $ 3,864,920 |
Homebuilding Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,543,134 | 3,506,420 |
Homebuilding Segment | Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | 547,364 | 470,909 |
Homebuilding Segment | West | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,472,378 | 1,855,567 |
Homebuilding Segment | Mountain | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,072,717 | 905,007 |
Homebuilding Segment | East | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 450,675 | 274,937 |
Financial Services Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 420,394 | 358,500 |
Financial Services Segment | Mortgage operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 313,373 | 279,649 |
Financial Services Segment | Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 107,021 | $ 78,851 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | Jan. 25, 2021 | Jan. 28, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Earnings Per Share [Abstract] | |||||
Stock dividend rate, percentage | 8.00% | 8.00% | |||
Antidilutive securities excluded from computation of earnings per share, amount | 15 | 400 | 400 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net Income | $ 573,657 | $ 367,582 | $ 238,312 |
Less: distributed earnings allocated to participating securities | (634) | (583) | (466) |
Less: undistributed earnings allocated to participating securities | (2,343) | (1,748) | (1,020) |
Net income attributable to common stockholders (numerator for basic earnings per share) | 570,680 | 365,251 | 236,826 |
Add back: undistributed earnings allocated to participating securities | 2,343 | 1,748 | 1,020 |
Less: undistributed earnings reallocated to participating securities | (2,269) | (1,704) | (992) |
Numerator for diluted earnings per share under two class method | $ 570,754 | $ 365,295 | $ 236,854 |
Weighted-average common shares outstanding (in shares) | 70,174,281 | 68,531,856 | 66,546,347 |
Denominator for diluted earnings per share under two class method (in shares) | 72,854,601 | 70,676,581 | 68,798,879 |
Basic Earnings Per Common Share (in dollars per share) | $ 8.13 | $ 5.33 | $ 3.56 |
Diluted Earnings Per Common Share (in dollars per share) | $ 7.83 | $ 5.17 | $ 3.44 |
Share-based Payment Arrangement, Option | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Add: dilutive effect of stock options and performance share units (in shares) | 2,302,773 | 1,792,006 | 1,876,980 |
Performance Shares | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Add: dilutive effect of stock options and performance share units (in shares) | 377,547 | 352,719 | 375,552 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Dec. 23, 2021 | Sep. 17, 2021 | Dec. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Unpaid principal balance | $ 276,900 | $ 222,300 | |||||
Loss on debt retirement | $ (23,571) | $ 0 | $ 0 | ||||
$300 million 3.850% senior notes due January 2030, net | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Early repayment of senior debt | $ 126,400 | $ 123,600 | |||||
Stated interest rate (percent) | 5.50% | 5.50% | 5.50% | 3.85% | 3.85% | 5.50% | |
Loss on debt retirement | $ (11,400) | $ (12,200) | $ (23,600) | ||||
Minimum | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Short term borrowings maturity period | 30 days | ||||||
Fair Value, Inputs, Level 2 | Under Commitment to Sell | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Mortgage loans held-for-sale, net | $ 157,700 | $ 137,300 | |||||
Fair Value, Inputs, Level 2 | Not Under Commitment to Sell | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Mortgage loans held-for-sale, net | $ 124,900 | $ 95,300 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Methods Used for Measuring Fair Values of Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held-for-sale, net | $ 282,529 | $ 232,556 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciles Net Loss to Unrealized Loss on Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Net gain (loss) recognized during the period on equity securities | $ 0 | $ (8,285) | $ 11,797 |
Less: Net gain (loss) recognized during the period on equity securities sold during the period | 0 | (8,285) | |
Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date | $ 0 | $ 0 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value of Senior Notes (Details) - USD ($) | Dec. 31, 2021 | Dec. 23, 2021 | Sep. 17, 2021 | Aug. 31, 2021 | Dec. 31, 2020 |
Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 1,623,351,000 | $ 1,274,135,000 | |||
Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | 1,481,781,000 | 1,037,391,000 | |||
$250 million 5.500% senior notes due January 2024, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Face amount | $ 250,000,000 | $ 250,000,000 | |||
Stated interest rate (percent) | 5.50% | 5.50% | |||
$250 million 5.500% senior notes due January 2024, net | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 0 | $ 275,463,000 | |||
$250 million 5.500% senior notes due January 2024, net | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | 0 | 249,233,000 | |||
$300 million 3.850% senior notes due January 2030, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Face amount | $ 300,000,000 | $ 300,000,000 | |||
Stated interest rate (percent) | 3.85% | 5.50% | 5.50% | 5.50% | 3.85% |
$300 million 3.850% senior notes due January 2030, net | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 319,057,000 | $ 331,384,000 | |||
$300 million 3.850% senior notes due January 2030, net | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | 297,699,000 | 297,458,000 | |||
$350 million 2.500% senior notes due January 2031, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Face amount | $ 350,000,000 | $ 350,000,000 | |||
Stated interest rate (percent) | 2.50% | 2.50% | |||
$350 million 2.500% senior notes due January 2031, net | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 339,185,000 | $ 0 | |||
$350 million 2.500% senior notes due January 2031, net | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | 347,126,000 | 0 | |||
$500 million 6.000% senior notes due January 2043, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||
Stated interest rate (percent) | 6.00% | 6.00% | |||
$500 million 6.000% senior notes due January 2043, net | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 628,092,000 | $ 667,288,000 | |||
$500 million 6.000% senior notes due January 2043, net | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | 490,903,000 | 490,700,000 | |||
$350 million 3.966% senior notes due August 2061, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Face amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||
Stated interest rate (percent) | 3.966% | 3.966% | 3.966% | ||
$350 million 3.966% senior notes due August 2061, net | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 337,017,000 | $ 0 | |||
$350 million 3.966% senior notes due August 2061, net | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying Amount | $ 346,053,000 | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventory (Details) - Homebuilding Segment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Housing completed or under construction | $ 1,917,616 | $ 1,486,587 |
Land and land under development | 1,843,235 | 1,345,643 |
Total inventories | 3,760,851 | 2,832,230 |
West | ||
Inventory [Line Items] | ||
Housing completed or under construction | 1,077,256 | 902,842 |
Land and land under development | 1,235,363 | 822,504 |
Mountain | ||
Inventory [Line Items] | ||
Housing completed or under construction | 596,164 | 464,501 |
Land and land under development | 435,958 | 391,054 |
East | ||
Inventory [Line Items] | ||
Housing completed or under construction | 244,196 | 119,244 |
Land and land under development | $ 171,914 | $ 132,085 |
Inventories - Inventory Impairm
Inventories - Inventory Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | ||||||
Inventory Impairments | $ 1,600 | $ 325 | $ 610 | $ 1,600 | $ 0 | $ 935 |
Homebuilding Segment | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 1,600 | 0 | 935 | |||
Homebuilding Segment | Housing completed or under construction | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 1,600 | 0 | 535 | |||
Homebuilding Segment | Land and land under development | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 0 | 0 | 400 | |||
Homebuilding Segment | West | Housing completed or under construction | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 1,600 | 0 | 100 | |||
Homebuilding Segment | West | Land and land under development | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 0 | 0 | 0 | |||
Homebuilding Segment | Mountain | Housing completed or under construction | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 0 | 0 | 0 | |||
Homebuilding Segment | Mountain | Land and land under development | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 0 | 0 | 400 | |||
Homebuilding Segment | East | Housing completed or under construction | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | 0 | 0 | 435 | |||
Homebuilding Segment | East | Land and land under development | ||||||
Inventory [Line Items] | ||||||
Inventory Impairments | $ 0 | $ 0 | $ 0 |
Inventories - Fair Value of Imp
Inventories - Fair Value of Impaired Inventory (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021USD ($)subdivision | Dec. 31, 2019USD ($)subdivision | Mar. 31, 2019USD ($)subdivision | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Inventory Disclosure [Abstract] | ||||||
Number of Subdivisions Impaired | subdivision | 1 | 2 | 2 | |||
Inventory Impairments | $ 1,600 | $ 325 | $ 610 | $ 1,600 | $ 0 | $ 935 |
Fair Value of Inventory After Impairments | $ 6,903 | $ 3,948 | $ 10,476 |
Capitalization of Interest - In
Capitalization of Interest - Interest Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalization of Interest [Abstract] | |||
Homebuilding interest incurred | $ 72,500 | $ 61,276 | $ 63,635 |
Less: Interest capitalized | (72,500) | (61,276) | (63,635) |
Homebuilding interest expensed | 0 | 0 | 0 |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest capitalized, beginning of period | 52,777 | 55,310 | 54,845 |
Plus: Interest capitalized during period | 72,500 | 61,276 | 63,635 |
Less: Previously capitalized interest included in home and land cost of sales | (67,223) | (63,809) | (63,170) |
Interest capitalized, end of period | $ 58,054 | $ 52,777 | $ 55,310 |
Homebuilding Prepaid and Othe_3
Homebuilding Prepaid and Other Assets - Summary of Homebuilding Prepaid and Other Assets (Details) - Homebuilding Segment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Operating lease right-of-use asset | $ 25,514 | $ 29,226 |
Land option deposits | 41,617 | 29,987 |
Prepaids | 26,058 | 26,929 |
Goodwill | 6,008 | 6,008 |
Deferred debt issuance costs on revolving credit facility, net | 7,166 | 9,043 |
Other | 199 | 492 |
Total | $ 106,562 | $ 101,685 |
Leases- Narrative (Details)
Leases- Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease liability, leases not yet commenced | $ 4.5 | |
Other Assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use asset | $ 33.5 | |
Other Liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liability | $ 34.3 | |
Company Headquarters | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 10 years | |
Renewal term | 10 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 5 years |
Leases - Components of Operatin
Leases - Components of Operating Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 8,028 | $ 8,193 | $ 7,690 |
Sublease income | (156) | (153) | (150) |
Net lease cost | $ 7,872 | $ 8,040 | $ 7,540 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 7,598 | $ 7,394 | $ 7,255 |
Leased assets obtained in exchange for new operating lease liabilities | $ 1,765 | $ 4,050 | $ 3,255 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 4 years 6 months | 5 years 3 months 18 days |
Weighted-average discount rate | 5.50% | 5.50% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
2022 | $ 6,800 | |
2023 | 6,643 | |
2024 | 5,951 | |
2025 | 5,733 | |
2026 | 4,661 | |
Thereafter | 434 | |
Total operating lease payments 1 | 30,222 | |
Less: Interest | (3,530) | |
Homebuilding Segment | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | 26,440 | $ 30,221 |
Accounts Payable and Accrued Liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | 26,692 | |
Accounts Payable | Homebuilding Segment | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | 26,400 | |
Accrued Liabilities | Financial Services Segment | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | $ 300 |
Homebuilding Accrued and Othe_3
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities - Homebuilding Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Warranty accrual | $ 37,491 | $ 33,664 | $ 31,386 | $ 28,262 |
Homebuilding Segment | ||||
Segment Reporting Information [Line Items] | ||||
Accrued compensation and related expenses | 81,417 | 56,682 | ||
Customer and escrow deposits | 89,353 | 67,022 | ||
Warranty accrual | 37,491 | 33,664 | ||
Operating lease liability | 26,440 | 30,221 | ||
Accrued interest | 30,934 | 27,650 | ||
Construction defect claim reserves | 9,287 | 8,479 | ||
Land development and home construction accruals | 22,012 | 10,824 | ||
Other accrued liabilities | 73,976 | 66,193 | ||
Total accrued and other liabilities | $ 370,910 | $ 300,735 |
Homebuilding Accrued and Othe_4
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Insurance reserves | $ 82,187 | $ 70,054 | $ 60,415 | $ 55,308 |
Financial Services Segment | ||||
Segment Reporting Information [Line Items] | ||||
Insurance reserves | 72,900 | 61,575 | ||
Accounts payable and other accrued liabilities | 25,003 | 34,055 | ||
Total accounts payable and accrued liabilities | $ 97,903 | $ 95,630 |
Warranty Accrual - Warranty Acc
Warranty Accrual - Warranty Accrual and Payment Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 33,664 | $ 31,386 | $ 28,262 |
Expense provisions | 22,696 | 16,700 | 15,525 |
Cash payments | (18,850) | (12,343) | (12,466) |
Adjustments | (19) | (2,079) | 65 |
Balance at end of period | $ 37,491 | $ 33,664 | $ 31,386 |
Insurance and Construction De_3
Insurance and Construction Defect Claim Reserves - Summary of Insurance and Defect Claim Reserves Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Liability for Future Policy Benefits [Roll Forward] | |||
Balance at beginning of period | $ 70,054,000 | $ 60,415,000 | $ 55,308,000 |
Expense provisions | 19,653,000 | 15,403,000 | 12,650,000 |
Cash payments, net of recoveries | (7,520,000) | (5,764,000) | (8,493,000) |
Adjustments | 0 | 0 | 950,000 |
Balance at end of period | $ 82,187,000 | $ 70,054,000 | $ 60,415,000 |
Insurance and Construction De_4
Insurance and Construction Defect Claim Reserves - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Adjustments | $ 0 | $ 0 | $ 950,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax provision: | |||
Federal | $ 148,741 | $ 63,224 | $ 50,870 |
State | 35,784 | 16,018 | 2,137 |
Total current | 184,525 | 79,242 | 53,007 |
Deferred tax provision: | |||
Federal | (6,699) | 6,380 | 5,175 |
State | 211 | 4,308 | 8,495 |
Total deferred | (6,488) | 10,688 | 13,670 |
Provision for income taxes | $ 178,037 | $ 89,930 | $ 66,677 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax expense computed at federal statutory rate | $ 157,856 | $ 96,077 | $ 64,048 |
State income tax expense, net of federal benefit | 26,441 | 17,535 | 9,810 |
Limitation on executive compensation | 14,915 | 8,102 | 4,463 |
Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits | (4,044) | 473 | (1,571) |
Stock based compensation (windfall)/shortfall | (1,830) | (7,907) | (2,828) |
Federal energy credits | (14,558) | (23,331) | (7,649) |
Rate changes | 81 | (291) | 190 |
Change in valuation allowance | (1,054) | (2,128) | 121 |
Other | 230 | 1,400 | 93 |
Provision for income taxes | $ 178,037 | $ 89,930 | $ 66,677 |
Effective tax rate | 23.70% | 19.70% | 21.90% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
State net operating loss carryforwards | $ 3,361 | $ 5,739 |
Stock-based compensation expense | 4,350 | 4,546 |
Warranty, litigation and other reserves | 14,785 | 12,686 |
Accrued compensation | 8,602 | 2,958 |
Asset impairment charges | 468 | 1,416 |
Inventory, additional net costs capitalized for tax purposes | 8,298 | 8,938 |
Other, net | 1,526 | 3,441 |
Total deferred tax assets | 41,390 | 39,724 |
Valuation allowance | (3,316) | (4,370) |
Total deferred tax assets, net of valuation allowance | 38,074 | 35,354 |
Deferred tax liabilities: | ||
Property, equipment and other assets | 10,871 | 11,654 |
Deferral of profit on home sales | 4,668 | 7,144 |
Other, net | 4,593 | 5,102 |
Total deferred tax liabilities | 20,132 | 23,900 |
Net deferred tax asset | $ 17,942 | $ 11,454 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 3,316 | $ 4,370 | |
Increase (decrease) in deferred tax asset | (1,100) | ||
Liability for uncertain tax positions | 400 | 9,300 | |
Reduction in uncertain tax positions due to lapse of statute of limitations | 8,276 | 139 | $ 139 |
Tax contingency, amount | 3,200 | ||
Reduction in interest and penalties from lapse in statute of limitations | 900 | ||
Unrecognized tax benefits that would impact effective tax rate | 400 | 3,500 | |
Income tax penalties and interest expense | (800) | $ 500 | $ (1,500) |
Domestic Tax Authority | Internal Revenue Service (IRS) | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforward | 0 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforward | $ 3,400 |
Income Taxes - Liability Associ
Income Taxes - Liability Associated With Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of year | $ 8,497 | $ 8,515 | $ 8,579 |
Increases related to prior year tax positions | 162 | 121 | 75 |
Decreases related to prior year tax positions | 0 | 0 | 0 |
Lapse of applicable statute of limitations | 8,276 | 139 | 139 |
Gross unrecognized tax benefits at end of year | $ 383 | $ 8,497 | $ 8,515 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - CVentures, Inc. | Oct. 31, 2026$ / ft² | Nov. 01, 2016ft²$ / ft² |
Related Party Transaction [Line Items] | ||
Area of real estate property | ft² | 5,437 | |
Yearly rental rate per rentable square foot | 26.50 | |
Forecast | ||
Related Party Transaction [Line Items] | ||
Yearly rental rate per rentable square foot | 31.67 |
Lines of Credit and Total Deb_3
Lines of Credit and Total Debt Obligations - Narrative (Details) - USD ($) | Dec. 23, 2021 | Sep. 17, 2021 | Dec. 28, 2020 | Dec. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 15, 2022 | Aug. 31, 2021 | Apr. 22, 2021 | Feb. 04, 2021 | Jan. 11, 2021 | Aug. 09, 2018 | Sep. 29, 2017 |
Line of Credit Facility [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | $ 215,500,000 | |||||||||||||
Loss on debt retirement | $ 23,571,000 | $ 0 | $ 0 | |||||||||||
Senior Notes 2 Point 500 Percent, Due January 2031 | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Stated interest rate (percent) | 2.50% | |||||||||||||
Face amount | $ 350,000,000 | |||||||||||||
Par price, percentage | 100.00% | |||||||||||||
$300 million 3.850% senior notes due January 2030, net | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Stated interest rate (percent) | 5.50% | 5.50% | 5.50% | 3.85% | 3.85% | 5.50% | ||||||||
Face amount | $ 300,000,000 | $ 300,000,000 | ||||||||||||
Early repayment of senior debt | $ 126,400,000 | $ 123,600,000 | ||||||||||||
Loss on debt retirement | $ 11,400,000 | $ 12,200,000 | $ 23,600,000 | |||||||||||
$350 million 3.966% senior notes due August 2061, net | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Stated interest rate (percent) | 3.966% | 3.966% | 3.966% | |||||||||||
Face amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||||||||
Par price, percentage | 100.00% | |||||||||||||
Maximum | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Leverage ratio | 55.00% | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,200,000,000 | $ 1,000,000,000 | ||||||||||||
Line of credit facility, outstanding, extended maturity amount | 1,125,000,000 | |||||||||||||
Potential borrowing capacity, subject to additional commitments | $ 1,700,000,000 | |||||||||||||
Stated interest rate (percent) | 0.00% | |||||||||||||
Maximum leverage ratio | 55.00% | |||||||||||||
Minimum common stock outstanding ownership, percentage | 50.00% | |||||||||||||
Letters of credit outstanding, amount | $ 40,100,000 | 25,100,000 | ||||||||||||
Revolving credit facility | 10,000,000 | 10,000,000 | ||||||||||||
Remaining borrowing capacity | 1,150,000,000 | |||||||||||||
Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||
Revolving Credit Facility | Specified Eurocurrency Rate | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||||
Mortgage Repurchase Facility | Warehouse Agreement Borrowings | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||||||
Maximum increase to borrowing capacity | $ 50,000,000 | $ 175,000,000 | $ 200,000,000 | $ 75,000,000 | ||||||||||
Mortgage Repurchase Facility | Forecast | Warehouse Agreement Borrowings | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Maximum increase to borrowing capacity | $ 400,000,000 | |||||||||||||
Financial Services Segment | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Mortgage repurchase facility | $ 256,300,000 | $ 202,390,000 |
Lines of Credit and Total Deb_4
Lines of Credit and Total Debt Obligations - Carrying Amount of Senior Notes (Details) - USD ($) | Dec. 31, 2021 | Dec. 23, 2021 | Sep. 17, 2021 | Aug. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | |||||
Long-term debt | $ 1,481,781,000 | $ 1,037,391,000 | |||
$250 million 5.500% senior notes due January 2024, net | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 250,000,000 | $ 250,000,000 | |||
Stated interest rate (percent) | 5.50% | 5.50% | |||
Long-term debt | $ 0 | $ 249,233,000 | |||
$300 million 3.850% senior notes due January 2030, net | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 300,000,000 | $ 300,000,000 | |||
Stated interest rate (percent) | 3.85% | 5.50% | 5.50% | 5.50% | 3.85% |
Long-term debt | $ 297,699,000 | $ 297,458,000 | |||
$350 million 2.500% senior notes due January 2031, net | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 350,000,000 | $ 350,000,000 | |||
Stated interest rate (percent) | 2.50% | 2.50% | |||
Long-term debt | $ 347,126,000 | $ 0 | |||
$500 million 6.000% senior notes due January 2043, net | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||
Stated interest rate (percent) | 6.00% | 6.00% | |||
Long-term debt | $ 490,903,000 | $ 490,700,000 | |||
$350 million 3.966% senior notes due August 2061, net | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||
Stated interest rate (percent) | 3.966% | 3.966% | 3.966% | ||
Long-term debt | $ 346,053,000 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)thirdPartyGuaranteelot | Dec. 31, 2020USD ($)lot | |
Loss Contingencies [Line Items] | ||
Surety bonds, outstanding, amount | $ 371.3 | |
Letters of credit outstanding, amount | 215.5 | |
Estimated cost related to letters of credit | 201.7 | |
Estimated cost related to bonds | $ 161.6 | |
Number of guarantees related to third parties | thirdPartyGuarantee | 0 | |
Estimated litigation liability | $ 1.6 | $ 1.6 |
Number of lots | lot | 11,148 | |
HomeAmerican Loan Origination Liabilities | Settled | ||
Loss Contingencies [Line Items] | ||
Claims settled, number | lot | 1 | |
Option Contracts | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding, amount | $ 17.3 | |
Deposits | 38.1 | |
HomeAmerican | ||
Loss Contingencies [Line Items] | ||
Surety bonds, outstanding, amount | $ 175.4 |
Concentration of Third-party _3
Concentration of Third-party Mortgage Purchasers - Percent of Mortgage Loans Sold to Third-party Purchasers (Details) - Customer Concentration Risk - Mortgage Loans Sold | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PennyMac Loan Services, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 37.00% | 33.00% | 41.00% |
Fannie Mae | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 24.00% | 7.00% |
Chase Manhattan Mortgage | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 4.00% | 8.00% |
Ginnie Mae | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 9.00% | 18.00% | 4.00% |
Wells Fargo Funding, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 6.00% | 9.00% | 16.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Jan. 25, 2021 | Jan. 28, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | |||||
Cash dividends paid (in dollars per share) | $ 1.67 | $ 1.29 | $ 1.09 | ||
Stock dividend rate, percentage | 8.00% | 8.00% | |||
Number of shares authorized to be repurchased | 4,000,000 | ||||
Shares repurchased during the period (in shares) | 0 | 0 | 0 | ||
Treasure stock held at period end (in shares) | 0 |
Equity Incentive and Employee_2
Equity Incentive and Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer matching contribution, percent of match | 50.00% | ||
Percent of employees' gross pay | 6.00% | ||
Defined contribution plan, cost | $ 3.6 | $ 3 | $ 2.6 |
Equity Incentive Plan 2011 | Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Capital shares reserved for future issuance | 5,600,000 | ||
Equity Incentive Plan 2011 | Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
2021 Equity Incentive Plan | Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Capital shares reserved for future issuance | 2,200,000 | ||
2021 Equity Incentive Plan | Maximum | Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Capital shares reserved for future issuance | 3,000,000 | ||
2011 Director Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Capital shares reserved for future issuance | 600,000 | ||
Number of shares available for grant | 400,000 | ||
2011 Director Stock Option Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 7 months | ||
2011 Director Stock Option Plan | Nonqualified Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Maximum number of shares per employee | 25,000 | ||
Award exercisable period | 6 months |
Stock-based Compensation - Shar
Stock-based Compensation - Share-based Award Expense Activity (Details) - Share-based Payment Arrangement, Option | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected lives of options (years) | 5 years 4 months 24 days | 9 years 6 months | 9 years 6 months |
Expected volatility | 40.40% | 62.80% | 29.90% |
Risk free interest rate | 0.80% | 0.70% | 1.70% |
Dividend yield rate | 3.00% | 5.10% | 3.40% |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Outstanding, beginning of year (in shares) | 4,364,161 | 5,831,119 | 6,452,388 |
Grants in period, gross | 15,000 | 432,000 | 445,227 |
Exercised (in shares) | (139,157) | (1,898,958) | (1,066,496) |
Forfeited (in shares) | 0 | 0 | 0 |
Cancelled (in shares) | 0 | 0 | 0 |
Outstanding, end of year (in shares) | 4,240,004 | 4,364,161 | 5,831,119 |
Weighted- Average Exercise Price | |||
Outstanding, beginning of year, weighted average exercise price (in dollars per share) | $ 23.37 | $ 22.22 | $ 21.76 |
Granted, Weighted-Average Exercise Price ( in dollars per share) | 53.32 | 23.90 | 32.92 |
Exercised, Weighted-Average Exercise Price ( in dollars per share) | 19.87 | 19.96 | 23.75 |
Outstanding, end of year, weighted average exercise price (in dollars per share) | $ 23.64 | $ 23.37 | $ 22.22 |
Share Based Compensation - Unve
Share Based Compensation - Unvested Stock Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Outstanding, beginning of year (in shares) | 875,519 | 756,268 | 522,225 |
Grants in period, gross | 15,000 | 432,000 | 445,227 |
Vested (in shares) | (458,519) | (312,749) | (211,184) |
Forfeited (in shares) | 0 | 0 | 0 |
Unvested, end of year (in shares) | 432,000 | 875,519 | 756,268 |
Weighted- Average Fair Value | |||
Outstanding, weigted-average fair value, beginning of year (in dollars per share) | $ 7.76 | $ 6.67 | $ 5.80 |
Grants in period, weighted average fair value (in dollars per share) | 14.66 | 8.73 | 7.30 |
Vested, weighted average fair value (in dollars per share) | 7.52 | 6.44 | 5.49 |
Unvested, weighted average fair value, end of year (in dollars per share) | $ 8.25 | $ 7.76 | $ 6.67 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 60 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 14, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, weighted average fair value (in dollars per share) | $ 14.66 | $ 8.73 | $ 7.30 | |
Exercises in period, intrinsic value | $ 5,100,000 | $ 40,200,000 | $ 8,200,000 | |
Average home sales revenues Performance Period | 3 years | |||
Grant date fair value (in dollars per share) | $ 53.47 | $ 39.93 | $ 31.34 | |
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 3,000,000 | $ 2,900,000 | $ 1,500,000 | |
Share-based payment arrangement, expense, tax benefit | 100,000 | 0 | 0 | |
Option, cost not yet recognized, amount | $ 2,200,000 | |||
Cost not yet recognized, period for recognition | 1 year | |||
Proceeds from stock options exercised | $ 2,600,000 | 37,900,000 | 25,300,000 | |
Exercise of option, tax benefit | 1,100,000 | 7,200,000 | 200,000 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 10,100,000 | 8,200,000 | 4,800,000 | |
Share-based payment arrangement, expense, tax benefit | $ 1,400,000 | 1,200,000 | 700,000 | |
Cost not yet recognized, period for recognition | 1 year 4 months 24 days | |||
Cost not yet recognized, amount, total | $ 6,900,000 | |||
Aggregate intrinsic value, nonvested | 19,400,000 | |||
Aggregate intrinsic value, vested | $ 13,400,000 | $ 8,600,000 | $ 5,300,000 | |
Restricted Stock | Equity Incentive Plan 2011 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Performance Shares | Equity Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average gross margin of home sales, percentage, minimum | 15.00% | |||
Shares withheld for tax withholding obligation | 316,620 | 323,280 | 292,378 | |
Decrease for tax withholding obligation | $ 18,800,000 | $ 9,100,000 | $ 10,000,000 | |
Performance Shares | Equity Incentive Plan 2011 | Granted in 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 1,800,000 | |||
Performance Shares | Equity Incentive Plan 2011 | Granted In 2017 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 1,400,000 | 11,700,000 | ||
Performance Shares | Equity Incentive Plan 2011 | Granted in 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 1,300,000 | 7,300,000 | 6,300,000 | |
Performance Shares | Equity Incentive Plan 2011 | Granted in 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 7,300,000 | $ 10,300,000 | $ 0 | |
Performance Shares | Equity Incentive Plan 2011 | Granted in 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 13,400,000 | |||
Performance Shares | Equity Incentive Plan 2011 | Granted in 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 4,400,000 | |||
Performance Shares | Equity Incentive Plan 2011 | 5% to 10% Vesting Threshold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target goal number of shares | 50.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Percentage of performance revenues that exceed base revenues | 10.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Minimum | 5% to 10% Vesting Threshold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance revenues that exceed base revenues | 5.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Minimum | 20% Vesting Threshold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance revenues that exceed base revenues | 20.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance revenues that exceed base revenues | 20.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Maximum | 5% to 10% Vesting Threshold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance revenues that exceed base revenues | 10.00% | |||
Performance Shares | Equity Incentive Plan 2011 | Maximum | 20% Vesting Threshold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target goal number of shares | 200.00% | |||
Black-scholes Model | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period, weighted average fair value (in dollars per share) | $ 14.66 | $ 8.73 | $ 7.30 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Vested and Expected to Vest (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Exercisable or expected to vest | |
Number outstanding (in shares) | shares | 4,240,004 |
Weighted-average exercise price (in dollars per share) | $ / shares | $ 23.64 |
Aggregate intrinsic value (in thousands) | $ | $ 136,501 |
Weighted-average remaining contractual term (years) (Year) | 4 years 7 months 13 days |
Exercisable | |
Number outstanding (in shares) | shares | 3,808,004 |
Weighted-average exercise price (in dollars per share) | $ / shares | $ 23.27 |
Aggregate intrinsic value (in thousands) | $ | $ 124,006 |
Weighted-average remaining contractual term (years) (Year) | 4 years 2 months 19 days |
Stock Based Compensation - Outs
Stock Based Compensation - Outstanding and Exercisable Stock Options (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number Outstanding (in shares) | shares | 4,240,004 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 4 years 7 months 13 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 23.64 |
Options Outstanding, Number Outstanding (in shares) | shares | 3,808,004 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 2 months 19 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 23.27 |
15.01 - 20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum (in dollars per share) | 15.01 |
Range of exercise price, maximum (in dollars per share) | $ 20 |
Options Outstanding, Number Outstanding (in shares) | shares | 61,172 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 3 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.43 |
Options Outstanding, Number Outstanding (in shares) | shares | 61,172 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 3 months 18 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 18.43 |
20.01 - 25.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum (in dollars per share) | 20.01 |
Range of exercise price, maximum (in dollars per share) | $ 25 |
Options Outstanding, Number Outstanding (in shares) | shares | 3,189,819 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 3 years 11 months 26 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 21.84 |
Options Outstanding, Number Outstanding (in shares) | shares | 2,901,819 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 6 months 21 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 21.63 |
25.01 - 30.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum (in dollars per share) | 25.01 |
Range of exercise price, maximum (in dollars per share) | $ 30 |
Options Outstanding, Number Outstanding (in shares) | shares | 542,013 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 5 years 11 months 8 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 26.59 |
Options Outstanding, Number Outstanding (in shares) | shares | 542,013 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 5 years 11 months 8 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 26.59 |
30.01 - 35.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum (in dollars per share) | 30.01 |
Range of exercise price, maximum (in dollars per share) | $ 35 |
Options Outstanding, Number Outstanding (in shares) | shares | 432,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 7 years 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 32.92 |
Options Outstanding, Number Outstanding (in shares) | shares | 288,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 7 years 7 months 2 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 32.92 |
35.01 - 40.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum (in dollars per share) | 50.01 |
Range of exercise price, maximum (in dollars per share) | $ 55 |
Options Outstanding, Number Outstanding (in shares) | shares | 15,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 9 years 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 53.32 |
Options Outstanding, Number Outstanding (in shares) | shares | 15,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 9 years 6 months 29 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 53.32 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted and Unrestricted Stock Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning of year (in shares) | 413,274 | 371,583 | 364,942 |
Granted (in shares) | 208,386 | 261,026 | 181,090 |
Vested (in shares) | (257,430) | (217,332) | (168,734) |
Forfeited (in shares) | (16,678) | (2,003) | (5,715) |
Unvested, end of year (in shares) | 347,552 | 413,274 | 371,583 |
Weighted- Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value - Unvested, beginning of year (in dollars per share) | $ 35.94 | $ 28.28 | $ 23.71 |
Grant date fair value (in dollars per share) | 53.47 | 39.93 | 31.34 |
Weighted-Average Grant Date Fair Value - Vested (in dollars per share) | 38.49 | 27.59 | 25.22 |
Weighted-Average Grant Date Fair Value - Forfeited (in dollars per share) | 49.21 | 38.13 | 28.30 |
Weighted-Average Grant Date Fair Value - Unvested, end of year (in dollars per share) | $ 47.27 | $ 35.94 | $ 28.28 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Stock Units Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value - Granted (in dollars per share) | $ 53.47 | $ 39.93 | $ 31.34 |
Performance Shares | May 23, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base period revenues | $ 2,543,000 | ||
Threshold goal, number of PSUs (in shares) | 157,464 | ||
Threshold goal, home sale revenues | $ 2,670,000 | ||
Target goal, number of PSUs (in shares) | 314,928 | ||
Target goal, home sale revenues | $ 2,797,000 | ||
Maximum goal, number of PSUs (in shares) | 629,856 | ||
Maximum goal, home sale revenues | $ 3,052,000 | ||
Weighted-Average Grant Date Fair Value - Granted (in dollars per share) | $ 23.68 | ||
Maximum potential expense to be recognized | $ 14,915 | ||
Maximum Remaining Expense to be Recognized | 0 | ||
Performance Shares | August 5, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base period revenues | $ 2,982,000 | ||
Threshold goal, number of PSUs (in shares) | 145,800 | ||
Threshold goal, home sale revenues | $ 3,131,000 | ||
Target goal, number of PSUs (in shares) | 291,600 | ||
Target goal, home sale revenues | $ 3,280,000 | ||
Maximum goal, number of PSUs (in shares) | 583,200 | ||
Maximum goal, home sale revenues | $ 3,578,000 | ||
Weighted-Average Grant Date Fair Value - Granted (in dollars per share) | $ 30.19 | ||
Maximum potential expense to be recognized | $ 17,604 | ||
Maximum Remaining Expense to be Recognized | 0 | ||
Performance Shares | August 20, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base period revenues | $ 3,205,000 | ||
Threshold goal, number of PSUs (in shares) | 145,800 | ||
Threshold goal, home sale revenues | $ 3,366,000 | ||
Target goal, number of PSUs (in shares) | 291,600 | ||
Target goal, home sale revenues | $ 3,526,000 | ||
Maximum goal, number of PSUs (in shares) | 583,200 | ||
Maximum goal, home sale revenues | $ 3,846,000 | ||
Weighted-Average Grant Date Fair Value - Granted (in dollars per share) | $ 39.79 | ||
Maximum potential expense to be recognized | $ 23,205 | ||
Maximum Remaining Expense to be Recognized | 9,831 | ||
Performance Shares | July 14, 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Base period revenues | $ 3,765,000 | ||
Threshold goal, number of PSUs (in shares) | 198,750 | ||
Threshold goal, home sale revenues | $ 3,953,000 | ||
Target goal, number of PSUs (in shares) | 397,500 | ||
Target goal, home sale revenues | $ 4,142,000 | ||
Maximum goal, number of PSUs (in shares) | 795,000 | ||
Maximum goal, home sale revenues | $ 4,518,000 | ||
Weighted-Average Grant Date Fair Value - Granted (in dollars per share) | $ 44.35 | ||
Maximum potential expense to be recognized | $ 35,255 | ||
Maximum Remaining Expense to be Recognized | $ 30,824 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | ||
Maximum percentage of consolidated net worth of guarantor for suspension of guarantee | 5.00% | |
Maximum aggregate percentage of consolidated net worth of all guarantors for suspension of guarantee | 10.00% | |
Maximum aggregate percentage of consolidated net worth of all guarantors for suspension of guarantee to permit cure of default | 15.00% | |
Non-Guarantor Subsidiaries | ||
Guarantor Obligations [Line Items] | ||
Due to non-guarantor subsidiaries | $ 60.2 | $ 65.8 |
All Guarantor Subsidiaries | ||
Guarantor Obligations [Line Items] | ||
Ownership percentage by parent | 100.00% |