Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-8951 | |
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, 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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,661,479 | |
Entity Central Index Key | 0000773141 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | MDC | |
Security Exchange Name | NYSE | |
Senior Notes 6.000 % Due January 2043 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6% Senior Notes due January 2043 | |
Trading Symbol | MDC 43 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventories: | ||
Housing completed or under construction | $ 1,921,134 | $ 1,722,061 |
Land and land under development | 1,315,196 | 1,793,718 |
Total inventories | 3,236,330 | 3,515,779 |
Total Assets | 5,488,003 | 5,363,272 |
LIABILITIES AND EQUITY | ||
Total Liabilities | 2,195,460 | 2,271,488 |
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; 74,662,468 and 72,585,596 issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 747 | 726 |
Additional paid-in-capital | 1,817,494 | 1,784,173 |
Retained earnings | 1,474,211 | 1,306,885 |
Accumulated other comprehensive income | 91 | 0 |
Total Stockholders' Equity | 3,292,543 | 3,091,784 |
Total Liabilities and Stockholders' Equity | 5,488,003 | 5,363,272 |
Homebuilding: | ||
ASSETS | ||
Cash and cash equivalents | 1,207,532 | 696,075 |
Restricted cash | 4,300 | 3,143 |
Marketable securities | 346,351 | 443,712 |
Trade and other receivables | 81,305 | 116,364 |
Inventories: | ||
Housing completed or under construction | 1,921,134 | 1,722,061 |
Land and land under development | 1,315,196 | 1,793,718 |
Total inventories | 3,236,330 | 3,515,779 |
Property and equipment, net | 62,403 | 63,730 |
Deferred tax asset, net | 46,615 | 49,252 |
Prepaids and other assets | 70,791 | 70,007 |
Total Assets | 5,055,627 | 4,958,062 |
LIABILITIES AND EQUITY | ||
Accounts payable | 135,265 | 109,218 |
Accrued and other liabilities | 312,882 | 383,406 |
Revolving credit facility | 10,000 | 10,000 |
Senior notes, net | 1,483,193 | 1,482,576 |
Total Liabilities | 1,941,340 | 1,985,200 |
Financial Services: | ||
ASSETS | ||
Cash and cash equivalents | 150,457 | 17,877 |
Marketable securities | 79,166 | 117,388 |
Inventories: | ||
Mortgage loans held-for-sale, net | 164,254 | 229,513 |
Other assets | 38,499 | 40,432 |
Total Assets | 432,376 | 405,210 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued liabilities | 108,650 | 110,536 |
Mortgage repurchase facility | 145,470 | 175,752 |
Total Liabilities | $ 254,120 | $ 286,288 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 74,662,468 | 72,585,596 |
Common stock, shares outstanding (in shares) | 74,662,468 | 72,585,596 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Inventory impairments | $ (6,200) | $ (28,415) | $ (27,500) | $ (29,075) |
Total pretax income | 139,807 | 185,789 | 361,826 | 646,634 |
Provision for income taxes | (32,502) | (41,389) | (80,328) | (164,271) |
Net income | 107,305 | 144,400 | 281,498 | 482,363 |
Other comprehensive income net of tax: | ||||
Unrealized gain related to available-for-sale debt securities | 1 | 0 | 91 | 0 |
Other comprehensive income | 1 | 0 | 91 | 0 |
Comprehensive income | $ 107,306 | $ 144,400 | $ 281,589 | $ 482,363 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.44 | $ 2.03 | $ 3.82 | $ 6.78 |
Diluted (in dollars per share) | $ 1.40 | $ 1.98 | $ 3.73 | $ 6.59 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 74,198,016 | 70,880,405 | 73,265,878 | 70,829,761 |
Diluted (in shares) | 76,253,178 | 72,729,453 | 75,106,356 | 72,892,635 |
Dividends declared per share (in dollars per share) | $ 0.55 | $ 0.50 | $ 1.55 | $ 1.50 |
Homebuilding: | ||||
Revenues | $ 1,087,050 | $ 1,407,642 | $ 3,210,536 | $ 4,098,985 |
Home cost of sales | (872,624) | (1,059,996) | (2,622,362) | (3,043,390) |
Inventory impairments | (6,200) | (28,415) | (27,500) | (29,075) |
Total cost of sales | (878,824) | (1,088,411) | (2,649,862) | (3,072,465) |
Gross profit | 208,226 | 319,231 | 560,674 | 1,026,520 |
Selling, general and administrative expenses | (101,311) | (141,435) | (303,032) | (404,598) |
Interest and other income | 20,414 | 2,220 | 51,812 | 3,797 |
Other income (expense) | 55 | (11,800) | 987 | (28,733) |
Total pretax income | 127,384 | 168,216 | 310,441 | 596,986 |
Financial Services: | ||||
Revenues | 23,769 | 34,101 | 85,874 | 99,461 |
Expenses | (15,494) | (18,704) | (46,231) | (54,440) |
Other income, net | 4,148 | 2,176 | 11,742 | 4,627 |
Total pretax income | $ 12,423 | $ 17,573 | $ 51,385 | $ 49,648 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2021 | 70,668,093 | ||||
Beginning balance at Dec. 31, 2021 | $ 2,597,146 | $ 707 | $ 1,709,276 | $ 887,163 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 148,421 | 148,421 | |||
Shares issued under stock-based compensation programs, net (in shares) | 498,921 | ||||
Shares issued under stock-based compensation programs, net | (12,628) | $ 5 | (12,633) | ||
Cash dividends declared | (35,583) | (35,583) | |||
Stock-based compensation expense | 13,726 | 13,726 | |||
Forfeiture of restricted stock (in shares) | (4,769) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 71,162,245 | ||||
Ending balance at Mar. 31, 2022 | 2,711,082 | $ 712 | 1,710,369 | 1,000,001 | 0 |
Beginning balance (in shares) at Dec. 31, 2021 | 70,668,093 | ||||
Beginning balance at Dec. 31, 2021 | 2,597,146 | $ 707 | 1,709,276 | 887,163 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 482,363 | ||||
Other comprehensive income (loss) | 0 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 71,254,143 | ||||
Ending balance at Sep. 30, 2022 | 3,009,204 | $ 713 | 1,745,750 | 1,262,741 | 0 |
Beginning balance (in shares) at Mar. 31, 2022 | 71,162,245 | ||||
Beginning balance at Mar. 31, 2022 | 2,711,082 | $ 712 | 1,710,369 | 1,000,001 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 189,542 | 189,542 | |||
Shares issued under stock-based compensation programs, net (in shares) | (1,573) | ||||
Shares issued under stock-based compensation programs, net | (58) | (58) | |||
Cash dividends declared | (35,580) | (35,580) | |||
Stock-based compensation expense | 9,331 | 9,331 | |||
Forfeiture of restricted stock (in shares) | (2,797) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 71,157,875 | ||||
Ending balance at Jun. 30, 2022 | 2,874,317 | $ 712 | 1,719,642 | 1,153,963 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 144,400 | 144,400 | |||
Other comprehensive income (loss) | 0 | ||||
Shares issued under stock-based compensation programs, net (in shares) | 101,269 | ||||
Shares issued under stock-based compensation programs, net | 1,141 | $ 1 | 1,140 | ||
Cash dividends declared | (35,622) | (35,622) | |||
Stock-based compensation expense | 24,968 | 24,968 | |||
Forfeiture of restricted stock (in shares) | (5,001) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 71,254,143 | ||||
Ending balance at Sep. 30, 2022 | $ 3,009,204 | $ 713 | 1,745,750 | 1,262,741 | 0 |
Beginning balance (in shares) at Dec. 31, 2022 | 72,585,596 | 72,585,596 | |||
Beginning balance at Dec. 31, 2022 | $ 3,091,784 | $ 726 | 1,784,173 | 1,306,885 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 80,700 | 80,700 | |||
Other comprehensive income (loss) | 323 | 323 | |||
Shares issued under stock-based compensation programs, net (in shares) | 503,022 | ||||
Shares issued under stock-based compensation programs, net | (11,740) | $ 5 | (11,745) | ||
Cash dividends declared | (36,543) | (36,543) | |||
Stock-based compensation expense | 5,597 | 5,597 | |||
Forfeiture of restricted stock (in shares) | (1,283) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 73,087,335 | ||||
Ending balance at Mar. 31, 2023 | $ 3,130,121 | $ 731 | 1,778,025 | 1,351,042 | 323 |
Beginning balance (in shares) at Dec. 31, 2022 | 72,585,596 | 72,585,596 | |||
Beginning balance at Dec. 31, 2022 | $ 3,091,784 | $ 726 | 1,784,173 | 1,306,885 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 281,498 | ||||
Other comprehensive income (loss) | $ 91 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 74,662,468 | 74,662,468 | |||
Ending balance at Sep. 30, 2023 | $ 3,292,543 | $ 747 | 1,817,494 | 1,474,211 | 91 |
Beginning balance (in shares) at Mar. 31, 2023 | 73,087,335 | ||||
Beginning balance at Mar. 31, 2023 | 3,130,121 | $ 731 | 1,778,025 | 1,351,042 | 323 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 93,493 | 93,493 | |||
Other comprehensive income (loss) | (233) | (233) | |||
Shares issued under stock-based compensation programs, net (in shares) | 1,459,256 | ||||
Shares issued under stock-based compensation programs, net | 31,332 | $ 14 | 31,318 | ||
Cash dividends declared | (36,566) | (36,566) | |||
Stock-based compensation expense | 2,956 | 2,956 | |||
Forfeiture of restricted stock (in shares) | (2,370) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 74,544,221 | ||||
Ending balance at Jun. 30, 2023 | 3,221,103 | $ 745 | 1,812,299 | 1,407,969 | 90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 107,305 | 107,305 | 0 | ||
Other comprehensive income (loss) | 1 | 1 | |||
Shares issued under stock-based compensation programs, net (in shares) | 118,247 | ||||
Shares issued under stock-based compensation programs, net | 1,220 | $ 2 | 1,218 | ||
Cash dividends declared | (41,063) | (41,063) | |||
Stock-based compensation expense | $ 3,977 | 3,977 | |||
Ending balance (in shares) at Sep. 30, 2023 | 74,662,468 | 74,662,468 | |||
Ending balance at Sep. 30, 2023 | $ 3,292,543 | $ 747 | $ 1,817,494 | $ 1,474,211 | $ 91 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||||
Net income | $ 107,305 | $ 144,400 | $ 281,498 | $ 482,363 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Stock-based compensation expense | 14,358 | 50,348 | ||
Depreciation and amortization | 17,870 | 20,663 | ||
Inventory impairments | 6,200 | 28,415 | 27,500 | 29,075 |
Project abandonment costs | (963) | 28,758 | ||
Amortization of discount of marketable debt securities | (24,864) | (1,082) | ||
Deferred income tax benefit (expense) | 2,608 | (4,180) | ||
Net changes in assets and liabilities: | ||||
Trade and other receivables | 44,979 | (19,321) | ||
Mortgage loans held-for-sale, net | 65,259 | 91,696 | ||
Prepaids and other assets | (3,097) | (8,050) | ||
Accounts payable and accrued and other liabilities | (55,528) | 12,506 | ||
Net cash provided by operating activities | 623,149 | 343,953 | ||
Investing Activities: | ||||
Purchases of marketable securities | (1,088,433) | (291,126) | ||
Maturities of marketable securities | 1,249,000 | 0 | ||
Purchases of property and equipment | (14,880) | (21,429) | ||
Net cash provided by (used in) investing activities | 145,687 | (312,555) | ||
Financing Activities: | ||||
Payments on mortgage repurchase facility, net | (30,282) | (60,086) | ||
Dividend payments | (114,172) | (106,785) | ||
Issuance of shares under stock-based compensation programs, net | 20,812 | (11,545) | ||
Net cash used in financing activities | (123,642) | (178,416) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 645,194 | (147,018) | ||
Cash, cash equivalents and restricted cash: | ||||
Beginning of period | 717,095 | 603,459 | ||
End of period | 1,362,289 | 456,441 | 1,362,289 | 456,441 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Total cash, cash equivalents and restricted cash | 1,362,289 | 456,441 | 1,362,289 | 456,441 |
Homebuilding: | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Inventory impairments | 6,200 | 28,415 | 27,500 | 29,075 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 1,207,532 | 417,298 | 1,207,532 | 417,298 |
Restricted cash | 4,300 | 4,657 | 4,300 | 4,657 |
Financial Services: | ||||
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | $ 150,457 | $ 34,486 | 150,457 | 34,486 |
Housing completed or under construction | ||||
Net changes in assets and liabilities: | ||||
Housing completed or under construction and land under development | (202,912) | (319,083) | ||
Land and land under development | ||||
Net changes in assets and liabilities: | ||||
Housing completed or under construction and land under development | $ 456,441 | $ (19,740) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Consolidated Financial Statements of M.D.C. Holdings, Inc. ("MDC," “the Company," “we,” “us,” or “our,” which refer to M.D.C. Holdings, Inc. and its subsidiaries) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of MDC at September 30, 2023 and for all periods presented. These statements should be read in conjunction with MDC’s Consolidated Financial Statements and Notes thereto included in MDC’s Annual Report on Form 10-K for the year ended December 31, 2022. Included in these footnotes are certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. These forward-looking statements may be identified by terminology such as “likely,” “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained in this section are reasonable, we cannot guarantee future results. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports on Forms 10-K, 10-Q and 8-K should be considered. Where necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adopted New Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022, directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain LIBOR rates beginning December 31, 2021, with complete elimination of the publication of the LIBOR rates by June 30, 2023. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We adopted this amendment in the second quarter of 2023. The adoption of ASU 2020-04, as amended by ASU 2021-01 and ASU 2022-06, did not have a material impact on our consolidated balance sheet or consolidated statement of operations and comprehensive income. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [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 conducted ongoing operations in the following states: • West (Arizona, California, Nevada, New Mexico, Oregon, Texas and Washington) • Mountain (Colorado, Idaho and Utah) • East (Alabama, Florida, Maryland, Pennsylvania, Tennessee and Virginia) Our financial services business consists of the following operating segments: (1) HomeAmerican Mortgage Corporation (“HomeAmerican”); (2) Allegiant Insurance Company, Inc., A Risk Retention Group (“Allegiant”); (3) StarAmerican Insurance Ltd. (“StarAmerican”); (4) American Home Insurance Agency, Inc.; and (5) American Home Title and Escrow Company. 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) the 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. The following table summarizes revenues for our homebuilding and financial services operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding West $ 651,472 $ 772,356 $ 1,845,964 $ 2,267,946 Mountain 284,142 424,397 931,367 1,196,526 East 151,436 210,889 433,205 634,513 Total homebuilding revenues $ 1,087,050 $ 1,407,642 $ 3,210,536 $ 4,098,985 Financial Services Mortgage operations $ 12,098 $ 16,933 $ 53,275 $ 56,611 Other 11,671 17,168 32,599 42,850 Total financial services revenues $ 23,769 $ 34,101 $ 85,874 $ 99,461 The following table summarizes pretax income (loss) for our homebuilding and financial services operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding West $ 60,792 $ 105,680 $ 133,631 $ 384,714 Mountain 38,211 68,106 107,923 197,747 East 15,891 28,245 45,349 94,046 Corporate 12,490 (33,815) 23,538 (79,521) Total homebuilding pretax income $ 127,384 $ 168,216 $ 310,441 $ 596,986 Financial Services Mortgage operations $ 3,098 $ 5,676 $ 26,676 $ 23,782 Other 9,325 11,897 24,709 25,866 Total financial services pretax income $ 12,423 $ 17,573 $ 51,385 $ 49,648 Total pretax income $ 139,807 $ 185,789 $ 361,826 $ 646,634 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 our cash and cash equivalents, marketable securities and deferred tax assets. The assets in our financial services segment consist mostly of cash and cash equivalents, marketable securities and mortgage loans held-for-sale. September 30, December 31, (Dollars in thousands) Homebuilding assets West $ 2,083,054 $ 2,275,144 Mountain 854,877 1,005,622 East 460,413 427,926 Corporate 1,657,283 1,249,370 Total homebuilding assets $ 5,055,627 $ 4,958,062 Financial services assets Mortgage operations $ 203,872 $ 267,309 Other 228,504 137,901 Total financial services assets $ 432,376 $ 405,210 Total assets $ 5,488,003 $ 5,363,272 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC 260") requires a company that has participating security holders (for example, holders of unvested restricted stock that have non-forfeitable dividend rights) to utilize the two-class method for calculating earnings per share (“EPS”) 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 adjusted to include the effect of potentially dilutive stock options outstanding and contingently issuable equity awards. The table below shows our basic and diluted EPS calculations. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Numerator Net income $ 107,305 $ 144,400 $ 281,498 $ 482,363 Less: distributed earnings allocated to participating securities (248) (180) (651) (535) Less: undistributed earnings allocated to participating securities (378) (522) (895) (1,784) Net income attributable to common stockholders (numerator for basic earnings per share) 106,679 143,698 279,952 480,044 Add back: undistributed earnings allocated to participating securities 378 522 895 1,784 Less: undistributed earnings reallocated to participating securities (372) (513) (878) (1,745) Numerator for diluted earnings per share under two-class method $ 106,685 $ 143,707 $ 279,969 $ 480,083 Denominator Weighted-average common shares outstanding 74,198,016 70,880,405 73,265,878 70,829,761 Add: dilutive effect of stock options 1,249,797 1,189,243 1,426,970 1,573,814 Add: dilutive effect of contingently issuable equity awards 805,365 659,805 413,508 489,060 Denominator for diluted earnings per share under two-class method 76,253,178 72,729,453 75,106,356 72,892,635 Basic Earnings Per Common Share $ 1.44 $ 2.03 $ 3.82 $ 6.78 Diluted Earnings Per Common Share $ 1.40 $ 1.98 $ 3.73 $ 6.59 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 expands 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, except those for which the carrying values approximate fair values: Fair Value Financial Instrument Hierarchy September 30, December 31, (Dollars in thousands) Marketable securities Debt securities (available-for-sale) Level 1 $ 425,517 $ 561,100 Mortgage loans held-for-sale, net Level 2 $ 164,254 $ 229,513 Derivative and financial instruments, net (Note 17) Interest rate lock commitments Level 2 $ (1,265) $ (1,678) Forward sales of mortgage-backed securities Level 2 $ 5,452 $ (5,269) Mandatory delivery forward loan sale commitments Level 2 $ (61) $ 791 Best-effort delivery forward loan sale commitments Level 2 $ 48 $ 1,976 The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of September 30, 2023 and December 31, 2022. Debt securities. Our debt securities consist of U.S. government treasury securities with original maturities upon acquisition of less than six months and are treated as available-for-sale investments and, as such, are recorded at fair value with all changes in fair value initially recorded through other comprehensive income. Debt securities are reviewed on a regular basis for impairment. There were no impairments recorded during both the three and nine months ended September 30, 2023 and 2022. The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for debt securities by major classification are as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government $ 425,397 $ 120 $ — $ 425,517 $ 561,100 $ — $ — $ 561,100 Total Debt Securities $ 425,397 $ 120 $ — $ 425,517 $ 561,100 $ — $ — $ 561,100 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 are not under commitments to sell. At September 30, 2023 and December 31, 2022, we had $54.7 million and $142.9 million, respectively, of mortgage loans held-for-sale at fair value 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 September 30, 2023 and December 31, 2022, we had $109.5 million and $86.6 million, respectively, 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. Gains (losses) on mortgage loans, net, are included as a component of revenues in the financial services section of our consolidated statements of operations and comprehensive income. For the three and nine months ended September 30, 2023, we recorded losses on mortgage loans held-for-sale, net of $2.3 million and $7.9 million, respectively, compared to losses of $4.3 million and $13.6 million for the same periods in the prior year. Derivative and financial instruments, net. Our derivatives and financial instruments, which include (1) interest rate lock commitments, (2) forward sales of mortgage-backed securities, (3) mandatory delivery forward loan sale commitments and (4) best-effort delivery forward loan sale commitments, are measured at fair value on a recurring basis based on market prices for similar instruments. For the financial assets and liabilities that the Company does not reflect at fair value, the following methods and assumptions were used to estimate the fair value of each class of financial instruments. 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. Mortgage Repurchase Facility. The debt associated with our mortgage repurchase facility (see Note 18 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 that were provided by multiple sources. September 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (Dollars in thousands) $300 million 3.850% Senior Notes due January 2030, net $ 298,141 $ 250,922 $ 297,949 $ 246,236 $350 million 2.500% Senior Notes due January 2031, net 347,633 261,309 347,413 255,374 $500 million 6.000% Senior Notes due January 2043, net 491,292 415,994 491,120 414,017 $350 million 3.966% Senior Notes due August 2061, net 346,127 193,774 346,094 204,014 Total $ 1,483,193 $ 1,121,999 $ 1,482,576 $ 1,119,641 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table sets forth, by reportable segment, information relating to our homebuilding inventories: September 30, December 31, (Dollars in thousands) Housing completed or under construction: West $ 1,191,600 $ 1,026,880 Mountain 464,534 511,092 East 265,000 184,089 Subtotal 1,921,134 1,722,061 Land and land under development: West 793,379 1,145,119 Mountain 356,655 433,893 East 165,162 214,706 Subtotal 1,315,196 1,793,718 Total inventories $ 3,236,330 $ 3,515,779 Our inventories are primarily associated with communities where we intend to construct and sell homes, including models and unsold homes. 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. 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. 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 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); • 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 determining the present value of the estimated future cash flows at discount rates, which are Level 3 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, we measure it in accordance with ASC 360 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. 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, which are considered Level 3 inputs. 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. Inventory impairments recognized by segment for the three and nine months ended September 30, 2023 and 2022 are shown in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) (Dollars in thousands) Housing Completed or Under Construction: West $ 1,106 $ 2,538 $ 2,893 $ 3,198 Mountain 700 — 1,364 — East — — — — Subtotal 1,806 2,538 4,257 3,198 Land and Land Under Development: West 2,994 23,362 14,707 23,362 Mountain 1,400 2,515 8,536 2,515 East — — — — Subtotal 4,394 25,877 23,243 25,877 Total Inventory Impairments $ 6,200 $ 28,415 $ 27,500 $ 29,075 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 Fair Value of Discount Rate (Dollars in thousands) September 30, 2023 2 $ 6,200 $ 17,116 15% — 18% June 30, 2023 1 13,500 17,886 18% March 31, 2023 1 7,800 13,016 18% Total $ 27,500 September 30, 2022 9 $ 28,415 $ 44,615 15% — 18% March 31, 2022 1 660 1,728 N/A Total $ 29,075 |
Capitalization of Interest
Capitalization of Interest | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [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. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding interest incurred $ 17,482 $ 17,391 $ 52,386 $ 52,031 Less: Interest capitalized (17,482) (17,391) (52,386) (52,031) Homebuilding interest expensed $ — $ — $ — $ — Interest capitalized, beginning of period $ 61,953 $ 62,169 $ 59,921 $ 58,054 Plus: Interest capitalized during period 17,482 17,391 52,386 52,031 Less: Previously capitalized interest included in home cost of sales (14,007) (15,977) (46,879) (46,502) Interest capitalized, end of period $ 65,428 $ 63,583 $ 65,428 $ 63,583 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 in the homebuilding section and expenses in the financial services section of our consolidated statements of operations and comprehensive income. Components of operating lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) Operating lease cost 1 $ 2,011 $ 2,180 $ 6,387 $ 6,418 Less: Sublease income (148) (141) (440) (366) Net lease cost $ 1,863 $ 2,039 $ 5,947 $ 6,052 1 Includes variable lease costs, which are immaterial. Supplemental cash flow information related to leases was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,955 $ 2,038 $ 6,251 $ 6,059 Leased assets obtained in exchange for new operating lease liabilities $ 1,344 $ 1,689 $ 3,238 $ 5,984 Weighted-average remaining lease term and discount rate for operating leases were as follows: September 30, 2023 September 30, 2022 Weighted-average remaining lease term (in years) 3.5 4.3 Weighted-average discount rate 5.5 % 5.5 % Maturities of operating lease liabilities were as follows: Year Ended December 31, (Dollars in thousands) 2023 (excluding the nine months ended September 30, 2023) $ 1,358 2024 8,240 2025 8,168 2026 6,923 2027 1,722 Thereafter 938 Total operating lease payments $ 27,349 Less: Effects of discounting 2,514 Present value of operating lease liabilities 1 $ 24,835 _______________________________________________________________ 1 Homebuilding and financial services operating lease liabilities of $24.6 million and $0.2 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 sections of our consolidated balance sheet at September 30, 2023. |
Homebuilding Prepaids and Other
Homebuilding Prepaids and Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Homebuilding Prepaids and Other Assets | Homebuilding Prepaids and Other Assets The following table sets forth the components of homebuilding prepaids and other assets: September 30, December 31, (Dollars in thousands) Land option deposits $ 23,831 $ 19,539 Operating lease right-of-use asset (Note 8) 23,453 25,636 Prepaids 13,128 13,333 Goodwill 6,008 6,008 Deferred debt issuance costs on revolving credit facility, net 3,816 5,241 Other 555 250 Total prepaids and other assets $ 70,791 $ 70,007 |
Homebuilding Accrued and Other
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, December 31, 2022 (Dollars in thousands) Accrued compensation and related expenses $ 76,219 $ 100,653 Customer and escrow deposits 51,181 42,296 Warranty accrual (Note 11) 45,592 46,857 Lease liability (Note 8) 24,625 26,574 Land development and home construction accruals 18,192 20,028 Accrued interest 14,889 30,934 Income taxes payable — 23,880 Construction defect claim reserves (Note 12) 10,387 10,466 Retentions payable 16,730 21,519 Other accrued liabilities 55,067 60,199 Total accrued and other liabilities $ 312,882 $ 383,406 A reclassification was made to our prior period financial information, where $21.5 million was reclassed from other accrued liabilities to retentions payable to conform to the current year presentation. The following table sets forth information relating to financial services accounts payable and accrued liabilities: September 30, December 31, 2022 (Dollars in thousands) Insurance reserves (Note 12) $ 86,072 $ 84,108 Accounts payable and other accrued liabilities 22,578 26,428 Total accounts payable and accrued liabilities $ 108,650 $ 110,536 |
Warranty Accrual
Warranty Accrual | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Warranty Accrual | Warranty Accrual Our homes are sold with limited third-party warranties and, 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 certain work required to be performed subsequent to year two 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. The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the three and nine months ended September 30, 2023 and 2022. The warranty accrual during the three and nine months ended September 30, 2023 decreased due to a decrease in home closings year-over-year. The warranty accrual during the nine months ended September 30, 2022 included a $3.0 million adjustment to increase our warranty accrual. This adjustment was due to higher general warranty related expenditures. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Balance at beginning of period $ 47,209 $ 42,711 $ 46,857 $ 37,491 Expense provisions 5,629 6,856 17,566 19,475 Cash payments (7,246) (4,929) (18,831) (14,768) Adjustments — 523 — 2,963 Balance at end of period $ 45,592 $ 45,161 $ 45,592 $ 45,161 |
Insurance and Construction Defe
Insurance and Construction Defect Claim Reserves | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Insurance and Construction Defect Claim Reserves | Insurance and Construction Defect Claim 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, 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. 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 third party actuarial studies that include known facts similar to those 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. The table set forth below summarizes our insurance and construction defect claim reserves activity for the three and nine months ended September 30, 2023 and 2022. These reserves are included as a component of accounts payable and accrued liabilities and accrued and other liabilities in the financial services and homebuilding sections, respectively, of the consolidated balance sheets. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Balance at beginning of period $ 95,125 $ 87,924 $ 94,574 $ 82,187 Expense provisions 4,024 4,879 11,913 14,331 Cash payments, net of recoveries (2,690) (1,363) (10,028) (5,078) Balance at end of period $ 96,459 $ 91,440 $ 96,459 $ 91,440 In the ordinary course of business, we make payments from our insurance and construction defect claim reserves to settle litigation claims arising 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 three and nine months ended September 30, 2023 and 2022 are not necessarily indicative of what future cash payments will be for subsequent periods. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur overall effective income tax rates were 23.2% and 22.2% for the three and nine months ended September 30, 2023 and 22.3% and 25.4% for the three and nine months ended September 30, 2022. The rates for the three and nine months ended September 30, 2023 resulted in income tax expense of $32.5 million and $80.3 million, respectively, compared to the income tax expense of $41.4 million and $164.3 million for the three and nine months ended September 30, 2022, respectively. The year-over-year increase in the effective tax rate for the three months ended September 30, 2023, was due to a decrease in energy tax credits in 2023. During the three months ended September 30, 2022, the Inflation Reduction Act retroactively extended the energy tax credit for the period January 1, 2022 through December 31, 2022 during the quarter. The year-over-year decrease in the effective rate for the nine months ended September 30, 2023, was primarily related to a decrease in non-deductible executive compensation and an increase in the windfall on non-qualifying stock options exercised and lapsed restricted stock during the period. |
Senior Notes
Senior Notes | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes The carrying values of our senior notes as of September 30, 2023 and December 31, 2022, net of any unamortized debt issuance costs or discount, were as follows: September 30, December 31, 2022 (Dollars in thousands) 3.850% Senior Notes due January 2030, net $ 298,141 $ 297,949 2.500% Senior Notes due January 2031, net 347,633 347,413 6.000% Senior Notes due January 2043, net 491,292 491,120 3.966% Senior Notes due August 2061, net 346,127 346,094 Total $ 1,483,193 $ 1,482,576 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table sets forth share-based award expense activity for the three and nine months ended September 30, 2023 and 2022, which is included as a component of selling, general and administrative expenses and expenses in the homebuilding and financial services sections, respectively, of our consolidated statements of operations and comprehensive income: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Stock option grants expense $ — $ 16,914 $ 202 $ 18,094 Restricted stock awards expense 2,293 1,364 8,818 5,992 Performance share units expense 1,780 7,277 5,338 26,262 Total stock-based compensation $ 4,073 $ 25,555 $ 14,358 $ 50,348 Additional detail on the performance share units ("PSUs") expense is included below: 2020 PSU Grant s. The 2020 PSU awards vested on February 3, 2023. For the three and nine months ended September 30, 2022, the Company recorded share-based award expense of $2.5 million and $7.4 million, respectively, related to these awards. 2021 PSU Grant s. As of September 30, 2023, the Company recorded share-based award expense related to the awards of $1.8 million and $5.3 million for the three and nine months ended September 30, 2023, respectively, based on its assessment of the probability for achievement of the performance targets. For the three and nine months ended September 30, 2022, the Company recorded share-based award expense of $4.8 million and $18.9 million, respectively, related to these awards. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023, we had outstanding surety bonds and letters of credit totaling $331.7 million and $109.1 million, respectively, including $62.1 million in letters of credit issued by HomeAmerican. The estimated cost to complete obligations related to these bonds and letters of credit were approximately $156.7 million and $47.1 million, respectively. All letters of credit as of September 30, 2023, excluding those issued by HomeAmerican, were issued under our unsecured revolving credit facility (see Note 18 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. Due to 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. 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 September 30, 2023, we had cash deposits, capitalized costs and letters of credit totaling $22.6 million, $3.9 million and $7.2 million, respectively, at risk associated with options to purchase 4,587 lots. |
Derivative and Financial Instru
Derivative and Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Financial Instruments | Derivative and Financial Instruments In the normal course of business, we enter into interest rate lock commitments ("IRLCs") with borrowers who have applied for loan funding and meet defined credit and underwriting criteria. Since we can terminate IRLCs if the borrower does not comply with the terms of the contract, and some IRLCs may expire without being utilized, these IRLCs do not necessarily represent future cash requirements. Market risk arises if interest rates move adversely between the time we originate a mortgage loan or we enter into an IRLC and the date the loan is committed or sold to an investor. We mitigate our exposure to interest rate market risk relating to mortgage loans held-for-sale and IRLCs using: (1) forward sales of mortgage-backed securities, which are commitments to sell a specified financial instrument at a specified future date for a specified price, (2) mandatory delivery forward loan sale commitments, which are obligations of an investor to buy loans at a specified price within a specified time period, and (3) best-effort delivery forward loan sale commitments, which are obligations of an investor to buy loans at a specified price subject to the underlying mortgage loans being funded and closed. The best-effort delivery forward loan sale commitments do not meet the definition of a derivative financial instrument in accordance with ASC Topic 815, Derivatives and Hedging ("ASC 815"). We have elected the fair value option for the best-effort delivery forward loan sale commitments in accordance with ASC Topic 825, Financial Instruments ("ASC 825"). Forward sales of mortgage-backed securities are the predominant derivative and financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is committed under a best-effort or mandatory delivery forward loan sale commitment. The following table sets forth the notional amounts and fair value measurement of our derivative and financial instruments at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Notional Value Derivative Assets Derivative Liabilities Derivatives, Net Notional Value Derivative Assets Derivative Liabilities Derivatives, Net (Dollars in thousands) (Dollars in thousands) Interest rate lock commitments $ 274,211 $ 1,485 $ 2,750 $ (1,265) $ 394,004 $ 1,566 $ 3,244 $ (1,678) Forward sales of mortgage-backed securities 366,000 5,452 — 5,452 323,000 580 5,849 (5,269) Mandatory delivery forward loan sale commitments 50,597 229 290 (61) 105,060 794 3 791 Best-effort delivery forward loan sale commitments 5,870 49 1 48 139,972 2,161 185 1,976 |
Lines of Credit
Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Lines of Credit 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. Effective April 11, 2023, the Revolving Credit Facility was amended to transition from a eurocurrency based interest rate to an interest rate based on the Secured Overnight Financing Rate ("SOFR"). 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 0.50%, and (4) the one month term SOFR screen rate plus the SOFR adjustment plus 1.00% and, in each case, plus a margin that is determined based on our credit ratings and leverage ratio. Interest rates on SOFR borrowings are equal to the greater of (1) 0.0% and (2) the sum of the term SOFR screen rate for such interest period plus the SOFR adjustment, 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 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 September 30, 2023. We incur costs associated with unused commitment fees pursuant to the terms of the Revolving Credit Facility. At September 30, 2023 and December 31, 2022, there were $47.0 million and $48.3 million, respectively, in letters of credit outstanding, which reduced the amounts available to be borrowed under the Revolving Credit Facility. At September 30, 2023 and December 31, 2022, we had $10.0 million and $10.0 million, respectively, outstanding under the Revolving Credit Facility. As of September 30, 2023, availability under the Revolving Credit Facility was approximately $1.14 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 May 20, 2021, December 21, 2021, May 19, 2022 and May 18, 2023 to adjust the commitments to purchase for specific time periods. The total capacity of the facility at September 30, 2023 was $150 million. The May 18, 2023 amendment extended the termination date of the Repurchase Agreement to May 16, 2024. At September 30, 2023 and December 31, 2022, HomeAmerican had $145.5 million and $175.8 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. Pricing under the Mortgage Repurchase Facility is based on SOFR. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company has a sublease agreement with CVentures, Inc. Larry A. Mizel, the Executive Chairman of the Company, 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. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2023 | |
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. • 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, 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. 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. As of September 30, 2023 and December 31, 2022, amounts due to (due from) non-guarantor subsidiaries from the Obligor Group totaled $(20.6) million and $29.7 million, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 107,305 | $ 93,493 | $ 80,700 | $ 144,400 | $ 189,542 | $ 148,421 | $ 281,498 | $ 482,363 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Derek R Kimmerle [Member] | |
Trading Arrangements, by Individual | |
Name | Derek R. Kimmerle |
Title | Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | July 31, 2023 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Adopted New Accounting Standards | Adopted New Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022, directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain LIBOR rates beginning December 31, 2021, with complete elimination of the publication of the LIBOR rates by June 30, 2023. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We adopted this amendment in the second quarter of 2023. The adoption of ASU 2020-04, as amended by ASU 2021-01 and ASU 2022-06, did not have a material impact on our consolidated balance sheet or consolidated statement of operations and comprehensive income. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Reconciliation of Revenue from Segments to Consolidated | The following table summarizes revenues for our homebuilding and financial services operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding West $ 651,472 $ 772,356 $ 1,845,964 $ 2,267,946 Mountain 284,142 424,397 931,367 1,196,526 East 151,436 210,889 433,205 634,513 Total homebuilding revenues $ 1,087,050 $ 1,407,642 $ 3,210,536 $ 4,098,985 Financial Services Mortgage operations $ 12,098 $ 16,933 $ 53,275 $ 56,611 Other 11,671 17,168 32,599 42,850 Total financial services revenues $ 23,769 $ 34,101 $ 85,874 $ 99,461 |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table summarizes pretax income (loss) for our homebuilding and financial services operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding West $ 60,792 $ 105,680 $ 133,631 $ 384,714 Mountain 38,211 68,106 107,923 197,747 East 15,891 28,245 45,349 94,046 Corporate 12,490 (33,815) 23,538 (79,521) Total homebuilding pretax income $ 127,384 $ 168,216 $ 310,441 $ 596,986 Financial Services Mortgage operations $ 3,098 $ 5,676 $ 26,676 $ 23,782 Other 9,325 11,897 24,709 25,866 Total financial services pretax income $ 12,423 $ 17,573 $ 51,385 $ 49,648 Total pretax income $ 139,807 $ 185,789 $ 361,826 $ 646,634 |
Schedule of Reconciliation of Assets from Segment to Consolidated | 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 our cash and cash equivalents, marketable securities and deferred tax assets. The assets in our financial services segment consist mostly of cash and cash equivalents, marketable securities and mortgage loans held-for-sale. September 30, December 31, (Dollars in thousands) Homebuilding assets West $ 2,083,054 $ 2,275,144 Mountain 854,877 1,005,622 East 460,413 427,926 Corporate 1,657,283 1,249,370 Total homebuilding assets $ 5,055,627 $ 4,958,062 Financial services assets Mortgage operations $ 203,872 $ 267,309 Other 228,504 137,901 Total financial services assets $ 432,376 $ 405,210 Total assets $ 5,488,003 $ 5,363,272 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | To calculate diluted EPS, basic EPS is adjusted to include the effect of potentially dilutive stock options outstanding and contingently issuable equity awards. The table below shows our basic and diluted EPS calculations. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Numerator Net income $ 107,305 $ 144,400 $ 281,498 $ 482,363 Less: distributed earnings allocated to participating securities (248) (180) (651) (535) Less: undistributed earnings allocated to participating securities (378) (522) (895) (1,784) Net income attributable to common stockholders (numerator for basic earnings per share) 106,679 143,698 279,952 480,044 Add back: undistributed earnings allocated to participating securities 378 522 895 1,784 Less: undistributed earnings reallocated to participating securities (372) (513) (878) (1,745) Numerator for diluted earnings per share under two-class method $ 106,685 $ 143,707 $ 279,969 $ 480,083 Denominator Weighted-average common shares outstanding 74,198,016 70,880,405 73,265,878 70,829,761 Add: dilutive effect of stock options 1,249,797 1,189,243 1,426,970 1,573,814 Add: dilutive effect of contingently issuable equity awards 805,365 659,805 413,508 489,060 Denominator for diluted earnings per share under two-class method 76,253,178 72,729,453 75,106,356 72,892,635 Basic Earnings Per Common Share $ 1.44 $ 2.03 $ 3.82 $ 6.78 Diluted Earnings Per Common Share $ 1.40 $ 1.98 $ 3.73 $ 6.59 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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, except those for which the carrying values approximate fair values: Fair Value Financial Instrument Hierarchy September 30, December 31, (Dollars in thousands) Marketable securities Debt securities (available-for-sale) Level 1 $ 425,517 $ 561,100 Mortgage loans held-for-sale, net Level 2 $ 164,254 $ 229,513 Derivative and financial instruments, net (Note 17) Interest rate lock commitments Level 2 $ (1,265) $ (1,678) Forward sales of mortgage-backed securities Level 2 $ 5,452 $ (5,269) Mandatory delivery forward loan sale commitments Level 2 $ (61) $ 791 Best-effort delivery forward loan sale commitments Level 2 $ 48 $ 1,976 |
Schedule of Debt Securities, Available-for-Sale | The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for debt securities by major classification are as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government $ 425,397 $ 120 $ — $ 425,517 $ 561,100 $ — $ — $ 561,100 Total Debt Securities $ 425,397 $ 120 $ — $ 425,517 $ 561,100 $ — $ — $ 561,100 |
Schedule of 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 that were provided by multiple sources. September 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (Dollars in thousands) $300 million 3.850% Senior Notes due January 2030, net $ 298,141 $ 250,922 $ 297,949 $ 246,236 $350 million 2.500% Senior Notes due January 2031, net 347,633 261,309 347,413 255,374 $500 million 6.000% Senior Notes due January 2043, net 491,292 415,994 491,120 414,017 $350 million 3.966% Senior Notes due August 2061, net 346,127 193,774 346,094 204,014 Total $ 1,483,193 $ 1,121,999 $ 1,482,576 $ 1,119,641 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table sets forth, by reportable segment, information relating to our homebuilding inventories: September 30, December 31, (Dollars in thousands) Housing completed or under construction: West $ 1,191,600 $ 1,026,880 Mountain 464,534 511,092 East 265,000 184,089 Subtotal 1,921,134 1,722,061 Land and land under development: West 793,379 1,145,119 Mountain 356,655 433,893 East 165,162 214,706 Subtotal 1,315,196 1,793,718 Total inventories $ 3,236,330 $ 3,515,779 |
Schedule of Inventory Impairments | Inventory impairments recognized by segment for the three and nine months ended September 30, 2023 and 2022 are shown in the table below. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) (Dollars in thousands) Housing Completed or Under Construction: West $ 1,106 $ 2,538 $ 2,893 $ 3,198 Mountain 700 — 1,364 — East — — — — Subtotal 1,806 2,538 4,257 3,198 Land and Land Under Development: West 2,994 23,362 14,707 23,362 Mountain 1,400 2,515 8,536 2,515 East — — — — Subtotal 4,394 25,877 23,243 25,877 Total Inventory Impairments $ 6,200 $ 28,415 $ 27,500 $ 29,075 |
Schedule of 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 Fair Value of Discount Rate (Dollars in thousands) September 30, 2023 2 $ 6,200 $ 17,116 15% — 18% June 30, 2023 1 13,500 17,886 18% March 31, 2023 1 7,800 13,016 18% Total $ 27,500 September 30, 2022 9 $ 28,415 $ 44,615 15% — 18% March 31, 2022 1 660 1,728 N/A Total $ 29,075 |
Capitalization of Interest (Tab
Capitalization of Interest (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Capitalization of Interest | For all periods presented below, our qualified assets exceeded our homebuilding debt and as such, all interest incurred has been capitalized. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Homebuilding interest incurred $ 17,482 $ 17,391 $ 52,386 $ 52,031 Less: Interest capitalized (17,482) (17,391) (52,386) (52,031) Homebuilding interest expensed $ — $ — $ — $ — Interest capitalized, beginning of period $ 61,953 $ 62,169 $ 59,921 $ 58,054 Plus: Interest capitalized during period 17,482 17,391 52,386 52,031 Less: Previously capitalized interest included in home cost of sales (14,007) (15,977) (46,879) (46,502) Interest capitalized, end of period $ 65,428 $ 63,583 $ 65,428 $ 63,583 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | Components of operating lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands) Operating lease cost 1 $ 2,011 $ 2,180 $ 6,387 $ 6,418 Less: Sublease income (148) (141) (440) (366) Net lease cost $ 1,863 $ 2,039 $ 5,947 $ 6,052 1 Includes variable lease costs, which are immaterial. |
Schedule of Lease Cash Flow Information | Supplemental cash flow information related to leases was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,955 $ 2,038 $ 6,251 $ 6,059 Leased assets obtained in exchange for new operating lease liabilities $ 1,344 $ 1,689 $ 3,238 $ 5,984 |
Schedule of Lease Terms and Discount Rates | Weighted-average remaining lease term and discount rate for operating leases were as follows: September 30, 2023 September 30, 2022 Weighted-average remaining lease term (in years) 3.5 4.3 Weighted-average discount rate 5.5 % 5.5 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities were as follows: Year Ended December 31, (Dollars in thousands) 2023 (excluding the nine months ended September 30, 2023) $ 1,358 2024 8,240 2025 8,168 2026 6,923 2027 1,722 Thereafter 938 Total operating lease payments $ 27,349 Less: Effects of discounting 2,514 Present value of operating lease liabilities 1 $ 24,835 _______________________________________________________________ 1 Homebuilding and financial services operating lease liabilities of $24.6 million and $0.2 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 sections of our consolidated balance sheet at September 30, 2023. |
Homebuilding Prepaids and Oth_2
Homebuilding Prepaids and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets | The following table sets forth the components of homebuilding prepaids and other assets: September 30, December 31, (Dollars in thousands) Land option deposits $ 23,831 $ 19,539 Operating lease right-of-use asset (Note 8) 23,453 25,636 Prepaids 13,128 13,333 Goodwill 6,008 6,008 Deferred debt issuance costs on revolving credit facility, net 3,816 5,241 Other 555 250 Total prepaids and other assets $ 70,791 $ 70,007 |
Homebuilding Accrued and Othe_2
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | The following table sets forth information relating to homebuilding accrued and other liabilities: September 30, December 31, 2022 (Dollars in thousands) Accrued compensation and related expenses $ 76,219 $ 100,653 Customer and escrow deposits 51,181 42,296 Warranty accrual (Note 11) 45,592 46,857 Lease liability (Note 8) 24,625 26,574 Land development and home construction accruals 18,192 20,028 Accrued interest 14,889 30,934 Income taxes payable — 23,880 Construction defect claim reserves (Note 12) 10,387 10,466 Retentions payable 16,730 21,519 Other accrued liabilities 55,067 60,199 Total accrued and other liabilities $ 312,882 $ 383,406 |
Schedule of Accounts Payable and Accrued Liabilities | The following table sets forth information relating to financial services accounts payable and accrued liabilities: September 30, December 31, 2022 (Dollars in thousands) Insurance reserves (Note 12) $ 86,072 $ 84,108 Accounts payable and other accrued liabilities 22,578 26,428 Total accounts payable and accrued liabilities $ 108,650 $ 110,536 |
Warranty Accrual (Tables)
Warranty Accrual (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the three and nine months ended September 30, 2023 and 2022. The warranty accrual during the three and nine months ended September 30, 2023 decreased due to a decrease in home closings year-over-year. The warranty accrual during the nine months ended September 30, 2022 included a $3.0 million adjustment to increase our warranty accrual. This adjustment was due to higher general warranty related expenditures. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Balance at beginning of period $ 47,209 $ 42,711 $ 46,857 $ 37,491 Expense provisions 5,629 6,856 17,566 19,475 Cash payments (7,246) (4,929) (18,831) (14,768) Adjustments — 523 — 2,963 Balance at end of period $ 45,592 $ 45,161 $ 45,592 $ 45,161 |
Insurance and Construction De_2
Insurance and Construction Defect Claim Reserves (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table set forth below summarizes our insurance and construction defect claim reserves activity for the three and nine months ended September 30, 2023 and 2022. These reserves are included as a component of accounts payable and accrued liabilities and accrued and other liabilities in the financial services and homebuilding sections, respectively, of the consolidated balance sheets. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Balance at beginning of period $ 95,125 $ 87,924 $ 94,574 $ 82,187 Expense provisions 4,024 4,879 11,913 14,331 Cash payments, net of recoveries (2,690) (1,363) (10,028) (5,078) Balance at end of period $ 96,459 $ 91,440 $ 96,459 $ 91,440 |
Senior Notes (Tables)
Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying values of our senior notes as of September 30, 2023 and December 31, 2022, net of any unamortized debt issuance costs or discount, were as follows: September 30, December 31, 2022 (Dollars in thousands) 3.850% Senior Notes due January 2030, net $ 298,141 $ 297,949 2.500% Senior Notes due January 2031, net 347,633 347,413 6.000% Senior Notes due January 2043, net 491,292 491,120 3.966% Senior Notes due August 2061, net 346,127 346,094 Total $ 1,483,193 $ 1,482,576 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Activity | The following table sets forth share-based award expense activity for the three and nine months ended September 30, 2023 and 2022, which is included as a component of selling, general and administrative expenses and expenses in the homebuilding and financial services sections, respectively, of our consolidated statements of operations and comprehensive income: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Dollars in thousands) Stock option grants expense $ — $ 16,914 $ 202 $ 18,094 Restricted stock awards expense 2,293 1,364 8,818 5,992 Performance share units expense 1,780 7,277 5,338 26,262 Total stock-based compensation $ 4,073 $ 25,555 $ 14,358 $ 50,348 |
Derivative and Financial Inst_2
Derivative and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gain (Loss) on Derivative and Financial Instruments | The following table sets forth the notional amounts and fair value measurement of our derivative and financial instruments at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Notional Value Derivative Assets Derivative Liabilities Derivatives, Net Notional Value Derivative Assets Derivative Liabilities Derivatives, Net (Dollars in thousands) (Dollars in thousands) Interest rate lock commitments $ 274,211 $ 1,485 $ 2,750 $ (1,265) $ 394,004 $ 1,566 $ 3,244 $ (1,678) Forward sales of mortgage-backed securities 366,000 5,452 — 5,452 323,000 580 5,849 (5,269) Mandatory delivery forward loan sale commitments 50,597 229 290 (61) 105,060 794 3 791 Best-effort delivery forward loan sale commitments 5,870 49 1 48 139,972 2,161 185 1,976 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Other | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Reconciliation of Revenue From Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | $ 1,087,050 | $ 1,407,642 | $ 3,210,536 | $ 4,098,985 |
Homebuilding | West | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 651,472 | 772,356 | 1,845,964 | 2,267,946 |
Homebuilding | Mountain | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 284,142 | 424,397 | 931,367 | 1,196,526 |
Homebuilding | East | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 151,436 | 210,889 | 433,205 | 634,513 |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 23,769 | 34,101 | 85,874 | 99,461 |
Financial Services | West | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 23,769 | 34,101 | 85,874 | 99,461 |
Financial Services | Mortgage operations | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | 12,098 | 16,933 | 53,275 | 56,611 |
Financial Services | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total financial services revenues | $ 11,671 | $ 17,168 | $ 32,599 | $ 42,850 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total pretax income | $ 139,807 | $ 185,789 | $ 361,826 | $ 646,634 |
Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 127,384 | 168,216 | 310,441 | 596,986 |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 12,423 | 17,573 | 51,385 | 49,648 |
Operating Segments | Homebuilding | West | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 60,792 | 105,680 | 133,631 | 384,714 |
Operating Segments | Homebuilding | Mountain | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 38,211 | 68,106 | 107,923 | 197,747 |
Operating Segments | Homebuilding | East | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 15,891 | 28,245 | 45,349 | 94,046 |
Operating Segments | Financial Services | Mortgage operations | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 3,098 | 5,676 | 26,676 | 23,782 |
Operating Segments | Financial Services | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | 9,325 | 11,897 | 24,709 | 25,866 |
Corporate | Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Total pretax income | $ 12,490 | $ (33,815) | $ 23,538 | $ (79,521) |
Segment Reporting - Total Asset
Segment Reporting - Total Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 5,488,003 | $ 5,363,272 |
Homebuilding assets | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 5,055,627 | 4,958,062 |
Financial services assets | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 432,376 | 405,210 |
Operating Segments | Homebuilding assets | West | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 2,083,054 | 2,275,144 |
Operating Segments | Homebuilding assets | Mountain | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 854,877 | 1,005,622 |
Operating Segments | Homebuilding assets | East | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 460,413 | 427,926 |
Operating Segments | Financial services assets | Mortgage operations | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 203,872 | 267,309 |
Operating Segments | Financial services assets | Other | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 228,504 | 137,901 |
Corporate | Homebuilding assets | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 1,657,283 | $ 1,249,370 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income | $ 107,305 | $ 93,493 | $ 80,700 | $ 144,400 | $ 189,542 | $ 148,421 | $ 281,498 | $ 482,363 |
Less: distributed earnings allocated to participating securities | (248) | (180) | (651) | (535) | ||||
Less: undistributed earnings allocated to participating securities | (378) | (522) | (895) | (1,784) | ||||
Net income attributable to common stockholders (numerator for basic earnings per share) | 106,679 | 143,698 | 279,952 | 480,044 | ||||
Add back: undistributed earnings allocated to participating securities | 378 | 522 | 895 | 1,784 | ||||
Less: undistributed earnings reallocated to participating securities | (372) | (513) | (878) | (1,745) | ||||
Numerator for diluted earnings per share under two-class method | $ 106,685 | $ 143,707 | $ 279,969 | $ 480,083 | ||||
Weighted-average common shares outstanding (in shares) | 74,198,016 | 70,880,405 | 73,265,878 | 70,829,761 | ||||
Denominator for diluted earnings per share under two-class method | 76,253,178 | 72,729,453 | 75,106,356 | 72,892,635 | ||||
Basic Earnings Per Common Share (in dollars per share) | $ 1.44 | $ 2.03 | $ 3.82 | $ 6.78 | ||||
Diluted Earnings Per Common Share (in dollars per share) | $ 1.40 | $ 1.98 | $ 3.73 | $ 6.59 | ||||
Share-Based Payment Arrangement, Option | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Weighted-average common shares outstanding, dilutive effect of stock options and contingently issuable equity awards (in shares) | 1,249,797 | 1,189,243 | 1,426,970 | 1,573,814 | ||||
Performance Shares | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Weighted-average common shares outstanding, dilutive effect of stock options and contingently issuable equity awards (in shares) | 805,365 | 659,805 | 413,508 | 489,060 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 15,000 | 1,861,534 | 15,000 | 1,861,534 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Interest rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | $ (1,265) | $ (1,678) |
Forward sales of mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | 5,452 | (5,269) |
Mandatory delivery forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | (61) | 791 |
Best-effort delivery forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | 48 | 1,976 |
Fair Value, Inputs, Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities (available-for-sale) | 425,517 | 561,100 |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held-for-sale, net | 164,254 | 229,513 |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Interest rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | (1,265) | (1,678) |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Forward sales of mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | 5,452 | (5,269) |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Mandatory delivery forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | (61) | 791 |
Fair Value, Inputs, Level 2 | Fair Value, Recurring | Best-effort delivery forward loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative and financial instruments, net | $ 48 | $ 1,976 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 425,397 | $ 561,100 |
Gross Unrealized Gains | 120 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 425,517 | 561,100 |
U.S. Government | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 425,397 | 561,100 |
Gross Unrealized Gains | 120 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 425,517 | $ 561,100 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss on sale of mortgage loans | $ 2.3 | $ 4.3 | $ 7.9 | $ 13.6 | |
Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short term borrowings maturity period | 30 days | ||||
Under Commitment to Sell | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held-for-sale, net | 54.7 | $ 54.7 | $ 142.9 | ||
Not Under Commitment to Sell | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held-for-sale, net | $ 109.5 | $ 109.5 | $ 86.6 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Senior Notes (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | $ 1,483,193,000 | $ 1,482,576,000 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 1,483,193,000 | 1,482,576,000 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,121,999,000 | 1,119,641,000 |
Senior Notes 3.850% Due January 2030 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, face amount | $ 300,000,000 | |
Interest rate, stated percentage | 3.85% | |
Carrying Amount | $ 298,141,000 | 297,949,000 |
Senior Notes 3.850% Due January 2030 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 298,141,000 | 297,949,000 |
Senior Notes 3.850% Due January 2030 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 250,922,000 | 246,236,000 |
Senior Notes 2.500% Due January 2031 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, face amount | $ 350,000,000 | |
Interest rate, stated percentage | 2.50% | |
Carrying Amount | $ 347,633,000 | 347,413,000 |
Senior Notes 2.500% Due January 2031 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 347,633,000 | 347,413,000 |
Senior Notes 2.500% Due January 2031 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 261,309,000 | 255,374,000 |
Senior Notes 6.000 % Due January 2043 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, face amount | $ 500,000,000 | |
Interest rate, stated percentage | 6% | |
Carrying Amount | $ 491,292,000 | 491,120,000 |
Senior Notes 6.000 % Due January 2043 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 491,292,000 | 491,120,000 |
Senior Notes 6.000 % Due January 2043 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 415,994,000 | 414,017,000 |
Senior Notes 3.966% Due August 2061 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, face amount | $ 350,000,000 | |
Interest rate, stated percentage | 3.966% | |
Carrying Amount | $ 346,127,000 | 346,094,000 |
Senior Notes 3.966% Due August 2061 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 346,127,000 | 346,094,000 |
Senior Notes 3.966% Due August 2061 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 193,774,000 | $ 204,014,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Housing completed or under construction | $ 1,921,134 | $ 1,722,061 |
Land and land under development | 1,315,196 | 1,793,718 |
Total inventories | 3,236,330 | 3,515,779 |
Homebuilding: | ||
Inventory [Line Items] | ||
Housing completed or under construction | 1,921,134 | 1,722,061 |
Land and land under development | 1,315,196 | 1,793,718 |
Total inventories | 3,236,330 | 3,515,779 |
Homebuilding: | West | ||
Inventory [Line Items] | ||
Housing completed or under construction | 1,191,600 | 1,026,880 |
Land and land under development | 793,379 | 1,145,119 |
Homebuilding: | Mountain | ||
Inventory [Line Items] | ||
Housing completed or under construction | 464,534 | 511,092 |
Land and land under development | 356,655 | 433,893 |
Homebuilding: | East | ||
Inventory [Line Items] | ||
Housing completed or under construction | 265,000 | 184,089 |
Land and land under development | $ 165,162 | $ 214,706 |
Inventories - Schedule of Inv_2
Inventories - Schedule of Inventory Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Inventory [Line Items] | |||||||
Inventory Impairments | $ 6,200 | $ 13,500 | $ 7,800 | $ 28,415 | $ 660 | $ 27,500 | $ 29,075 |
Homebuilding: | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 6,200 | 28,415 | 27,500 | 29,075 | |||
Housing completed or under construction | Homebuilding: | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 1,806 | 2,538 | 4,257 | 3,198 | |||
Housing completed or under construction | Homebuilding: | West | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 1,106 | 2,538 | 2,893 | 3,198 | |||
Housing completed or under construction | Homebuilding: | Mountain | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 700 | 0 | 1,364 | 0 | |||
Housing completed or under construction | Homebuilding: | East | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 0 | 0 | 0 | 0 | |||
Land and land under development | Homebuilding: | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 4,394 | 25,877 | 23,243 | 25,877 | |||
Land and land under development | Homebuilding: | West | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 2,994 | 23,362 | 14,707 | 23,362 | |||
Land and land under development | Homebuilding: | Mountain | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | 1,400 | 2,515 | 8,536 | 2,515 | |||
Land and land under development | Homebuilding: | East | |||||||
Inventory [Line Items] | |||||||
Inventory Impairments | $ 0 | $ 0 | $ 0 | $ 0 |
Inventories - Fair Value of Imp
Inventories - Fair Value of Impaired Inventory (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) lot | Jun. 30, 2023 USD ($) lot | Mar. 31, 2023 USD ($) lot | Sep. 30, 2022 USD ($) subdivision | Mar. 31, 2022 USD ($) subdivision | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Inventory [Line Items] | |||||||
Number of Subdivisions Impaired | 2 | 1 | 1 | 9 | 1 | ||
Inventory Impairments | $ 6,200 | $ 13,500 | $ 7,800 | $ 28,415 | $ 660 | $ 27,500 | $ 29,075 |
Fair Value of Inventory After Impairments | $ 17,116 | $ 17,886 | $ 13,016 | $ 44,615 | $ 1,728 | ||
Discount Rate | 18% | 18% | |||||
Minimum | |||||||
Inventory [Line Items] | |||||||
Discount Rate | 15% | 15% | |||||
Maximum | |||||||
Inventory [Line Items] | |||||||
Discount Rate | 18% | 18% |
Capitalization of Interest - Sc
Capitalization of Interest - Schedule of Capitalization of Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Homebuilding interest incurred | $ 17,482 | $ 17,391 | $ 52,386 | $ 52,031 |
Less: Interest capitalized | (17,482) | (17,391) | (52,386) | (52,031) |
Homebuilding interest expensed | 0 | 0 | 0 | 0 |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest capitalized, beginning of period | 61,953 | 62,169 | 59,921 | 58,054 |
Plus: Interest capitalized during period | 17,482 | 17,391 | 52,386 | 52,031 |
Less: Previously capitalized interest included in home cost of sales | (14,007) | (15,977) | (46,879) | (46,502) |
Interest capitalized, end of period | $ 65,428 | $ 63,583 | $ 65,428 | $ 63,583 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2023 |
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 - Schedule of Lease, Cos
Leases - Schedule of Lease, Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,011 | $ 2,180 | $ 6,387 | $ 6,418 |
Less: Sublease income | (148) | (141) | (440) | (366) |
Net lease cost | $ 1,863 | $ 2,039 | $ 5,947 | $ 6,052 |
Leases - Schedule of Lease Cash
Leases - Schedule of Lease Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 1,955 | $ 2,038 | $ 6,251 | $ 6,059 |
Leased assets obtained in exchange for new operating lease liabilities | $ 1,344 | $ 1,689 | $ 3,238 | $ 5,984 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 3 years 6 months | 4 years 3 months 18 days |
Weighted-average discount rate | 5.50% | 5.50% |
Leases - Schedule of Lessee, Op
Leases - Schedule of Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
2023 (excluding the nine months ended September 30, 2023) | $ 1,358 | |
2024 | 8,240 | |
2025 | 8,168 | |
2026 | 6,923 | |
2027 | 1,722 | |
Thereafter | 938 | |
Total operating lease payments | 27,349 | |
Less: Effects of discounting | 2,514 | |
Present value of operating lease liabilities | 24,835 | |
Homebuilding: | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | $ 24,625 | $ 26,574 |
Financial Services: | ||
Lessee, Lease, Description [Line Items] | ||
Present value of operating lease liabilities | $ 200 |
Homebuilding Prepaids and Oth_3
Homebuilding Prepaids and Other Assets - Schedule of Other Assets (Details) - Homebuilding: - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Prepaid Expenses and Other Assets [Line Items] | ||
Land option deposits | $ 23,831 | $ 19,539 |
Operating lease right-of-use asset | 23,453 | 25,636 |
Prepaids | 13,128 | 13,333 |
Goodwill | 6,008 | 6,008 |
Deferred debt issuance costs on revolving credit facility, net | 3,816 | 5,241 |
Other | 555 | 250 |
Total prepaids and other assets | $ 70,791 | $ 70,007 |
Homebuilding Accrued and Othe_3
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||||||
Warranty accrual | $ 45,592 | $ 47,209 | $ 46,857 | $ 45,161 | $ 42,711 | $ 37,491 |
Lease liability | 24,835 | |||||
Retentions payable | 21,500 | |||||
Homebuilding: | ||||||
Segment Reporting Information [Line Items] | ||||||
Accrued compensation and related expenses | 76,219 | 100,653 | ||||
Customer and escrow deposits | 51,181 | 42,296 | ||||
Warranty accrual | 45,592 | 46,857 | ||||
Lease liability | 24,625 | 26,574 | ||||
Land development and home construction accruals | 18,192 | 20,028 | ||||
Accrued interest | 14,889 | 30,934 | ||||
Income taxes payable | 0 | 23,880 | ||||
Construction defect claim reserves | 10,387 | 10,466 | ||||
Retentions payable | 16,730 | 21,519 | ||||
Other accrued liabilities | 55,067 | 60,199 | ||||
Total accrued and other liabilities | $ 312,882 | $ 383,406 |
Homebuilding Accrued and Othe_4
Homebuilding Accrued and Other Liabilities and Financial Services Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||||||
Insurance reserves | $ 96,459 | $ 95,125 | $ 94,574 | $ 91,440 | $ 87,924 | $ 82,187 |
Financial Services: | ||||||
Segment Reporting Information [Line Items] | ||||||
Insurance reserves | 86,072 | 84,108 | ||||
Accounts payable and other accrued liabilities | 22,578 | 26,428 | ||||
Total accounts payable and accrued liabilities | $ 108,650 | $ 110,536 |
Warranty Accrual - Narrative (D
Warranty Accrual - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Product Warranty Liability [Line Items] | ||||
Period responsible for performing all warranty work (in years) | 2 years | |||
Adjustment to increase warranty accrual | $ 0 | $ 523 | $ 0 | $ 2,963 |
Minimum | ||||
Product Warranty Liability [Line Items] | ||||
Period responsible for paying for substantially all warranty work required (in years) | 2 years |
Warranty Accrual - Schedule of
Warranty Accrual - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 47,209 | $ 42,711 | $ 46,857 | $ 37,491 |
Expense provisions | 5,629 | 6,856 | 17,566 | 19,475 |
Cash payments | (7,246) | (4,929) | (18,831) | (14,768) |
Adjustments | 0 | 523 | 0 | 2,963 |
Balance at end of period | $ 45,592 | $ 45,161 | $ 45,592 | $ 45,161 |
Insurance and Construction De_3
Insurance and Construction Defect Claim Reserves - Schedule of Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Liability for Future Policy Benefits [Roll Forward] | ||||
Balance at beginning of period | $ 95,125 | $ 87,924 | $ 94,574 | $ 82,187 |
Expense provisions | 4,024 | 4,879 | 11,913 | 14,331 |
Cash payments, net of recoveries | (2,690) | (1,363) | (10,028) | (5,078) |
Balance at end of period | $ 96,459 | $ 91,440 | $ 96,459 | $ 91,440 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 23.20% | 22.30% | 22.20% | 25.40% |
Income tax expense | $ 32,502 | $ 41,389 | $ 80,328 | $ 164,271 |
Senior Notes - Schedule of Debt
Senior Notes - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 1,483,193 | $ 1,482,576 |
Senior Notes 3.850% Due January 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.85% | |
Carrying Amount | $ 298,141 | 297,949 |
Senior Notes 2.500% Due January 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.50% | |
Carrying Amount | $ 347,633 | 347,413 |
Senior Notes 6.000 % Due January 2043 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 6% | |
Carrying Amount | $ 491,292 | 491,120 |
Senior Notes 3.966% Due August 2061 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.966% | |
Carrying Amount | $ 346,127 | $ 346,094 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Payment Arrangement, Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 4,073 | $ 25,555 | $ 14,358 | $ 50,348 |
Stock option grants expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 0 | 16,914 | 202 | 18,094 |
Restricted stock awards expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 2,293 | 1,364 | 8,818 | 5,992 |
Performance share units expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 1,780 | $ 7,277 | $ 5,338 | $ 26,262 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 4,073 | $ 25,555 | $ 14,358 | $ 50,348 |
Performance share units expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 1,780 | 7,277 | 5,338 | 26,262 |
Granted in 2020 | Performance share units expense | Equity Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 2,500 | 7,400 | ||
Granted in 2021 | Performance share units expense | Equity Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 1,800 | $ 4,800 | $ 5,300 | $ 18,900 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) lot | |
Loss Contingencies [Line Items] | |
Surety bonds, outstanding, amount | $ 331.7 |
Letters of credit outstanding, amount | 109.1 |
Estimated cost related to letters of credit | 156.7 |
Estimated cost related to bonds | $ 47.1 |
Number of lots | lot | 4,587 |
Option Contracts | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding, amount | $ 7.2 |
Deposits | 22.6 |
Capitalized costs | 3.9 |
HomeAmerican | |
Loss Contingencies [Line Items] | |
Surety bonds, outstanding, amount | $ 62.1 |
Derivative and Financial Inst_3
Derivative and Financial Instruments - Schedule of Gain (Loss) on Derivative and Financial Instruments (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | $ 274,211,000 | $ 394,004,000 |
Derivative Assets | 1,485,000 | 1,566,000 |
Derivative Liabilities | 2,750,000 | 3,244,000 |
Derivatives, Net | (1,265,000) | (1,678,000) |
Forward sales of mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 366,000,000 | 323,000,000 |
Derivative Assets | 5,452,000 | 580,000 |
Derivative Liabilities | 0 | 5,849,000 |
Derivatives, Net | 5,452,000 | (5,269,000) |
Mandatory delivery forward loan sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 50,597,000 | 105,060,000 |
Derivative Assets | 229,000 | 794,000 |
Derivative Liabilities | 290,000 | 3,000 |
Derivatives, Net | (61,000) | 791,000 |
Best-effort delivery forward loan sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 5,870,000 | 139,972,000 |
Derivative Assets | 49,000 | 2,161,000 |
Derivative Liabilities | 1,000 | 185,000 |
Derivatives, Net | $ 48,000 | $ 1,976,000 |
Derivative and Financial Inst_4
Derivative and Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net gains on derivative and financial instruments | $ 4.1 | $ 7.3 | $ 5.6 | $ 44.6 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | Apr. 11, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | May 19, 2022 | Dec. 28, 2020 | Dec. 27, 2020 |
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding, amount | $ 109,100,000 | |||||
Financial Services: | ||||||
Line of Credit Facility [Line Items] | ||||||
Warehouse agreement borrowings | $ 145,470,000 | $ 175,752,000 | ||||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing base required leverage ratio | 55% | |||||
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 maximum borrowing capacity, subject to additional commitments | $ 1,700,000,000 | |||||
Stated interest rate (percent) | 0% | |||||
Maximum leverage ratio | 55% | |||||
Minimum common stock outstanding ownership, percentage | 50% | |||||
Letters of credit outstanding, amount | $ 47,000,000 | 48,300,000 | ||||
Revolving credit facility | 10,000,000 | $ 10,000,000 | ||||
Remaining borrowing capacity | 1,140,000,000 | |||||
Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility | Specified Eurocurrency Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Mortgage Repurchase Facility | Warehouse Agreement Borrowings | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Maximum increase to borrowing capacity | $ 150,000,000 | $ 75,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Sublease Agreement - Related Party | Oct. 31, 2026 $ / ft² | Nov. 01, 2016 ft² $ / ft² |
Related Party Transaction [Line Items] | ||
Area of real estate property | ft² | 5,437 | |
Minimum | ||
Related Party Transaction [Line Items] | ||
Yearly rental rate per rentable square foot | 26.50 | |
Maximum | Forecast | ||
Related Party Transaction [Line Items] | ||
Yearly rental rate per rentable square foot | 31.67 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Guarantor Obligations [Line Items] | ||
Maximum percentage of consolidated net worth of guarantor for suspension of guarantee | 5% | |
Maximum aggregate percentage of consolidated net worth of all guarantors for suspension of guarantee | 10% | |
Maximum aggregate percentage of consolidated net worth of all guarantors for suspension of guarantee to permit cure of default | 15% | |
Non-Guarantor Subsidiaries | Related Party | ||
Guarantor Obligations [Line Items] | ||
Due from non-guarantor subsidiaries | $ (20.6) | |
Due to non-guarantor subsidiaries | $ 29.7 | |
All Guarantor Subsidiaries | ||
Guarantor Obligations [Line Items] | ||
Ownership interest | 100% |