Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 01, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | PULTEGROUP INC/MI/ | ||
Entity Central Index Key | 822416 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 368,198,659 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $7,529,488,415 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and equivalents | $1,292,862 | $1,580,329 |
Restricted cash | 16,358 | 72,715 |
House and land inventory | 4,392,100 | 3,978,561 |
Land held for sale | 101,190 | 61,735 |
Land, not owned, under option agreements | 30,186 | 24,024 |
Residential mortgage loans available-for-sale | 339,531 | 287,933 |
Investments in unconsolidated entities | 40,368 | 45,323 |
Other assets | 513,032 | 460,621 |
Intangible assets | 123,115 | 136,148 |
Deferred tax assets, net | 1,720,668 | 2,086,754 |
Total assets | 8,569,410 | 8,734,143 |
Liabilities: | ||
Accounts payable, including book overdrafts of $32,586 and $35,827 in 2014 and 2013, respectively | 270,516 | 202,736 |
Customer deposits | 142,642 | 134,858 |
Accrued and other liabilities | 1,343,774 | 1,377,750 |
Income tax liabilities | 48,722 | 206,015 |
Financial Services debt | 140,241 | 105,664 |
Senior notes | 1,818,561 | 2,058,168 |
Total liabilities | 3,764,456 | 4,085,191 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 369,458,530 and 381,299,600 shares issued and outstanding at December 31, 2014 and 2013, respectively | 3,695 | 3,813 |
Additional paid-in capital | 3,072,996 | 3,052,016 |
Accumulated other comprehensive loss | -690 | -795 |
Retained earnings | 1,728,953 | 1,593,918 |
Total shareholders’ equity | 4,804,954 | 4,648,952 |
Total liabilities and shareholders' equity | $8,569,410 | $8,734,143 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Book overdrafts | $32,586 | $35,827 |
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 369,458,530 | 381,299,600 |
Common stock, shares outstanding | 369,458,530 | 381,299,600 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding | |||||||||||
Home sale revenues | $5,662,171 | $5,424,309 | $4,552,412 | ||||||||
Land sale revenues | 34,554 | 114,335 | 106,698 | ||||||||
Total homebuilding revenues | 1,786,464 | 1,561,273 | 1,254,989 | 1,093,999 | 1,624,959 | 1,547,742 | 1,240,060 | 1,125,883 | 5,696,725 | 5,538,644 | 4,659,110 |
Financial Services | 36,093 | 33,452 | 31,198 | 24,895 | 30,380 | 34,336 | 39,362 | 36,873 | 125,638 | 140,951 | 160,888 |
Total revenues | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 1,655,339 | 1,582,078 | 1,279,422 | 1,162,756 | 5,822,363 | 5,679,595 | 4,819,998 |
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 4,343,249 | 4,310,528 | 3,833,451 | ||||||||
Land sale cost of revenues | 23,748 | 104,426 | 94,880 | ||||||||
Total cost of revenues | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 1,249,868 | 1,230,070 | 1,011,528 | 923,488 | 4,366,997 | 4,414,954 | 3,928,331 |
Financial Services expenses | 71,239 | 92,379 | 135,511 | ||||||||
Selling, general, and administrative expenses | 667,815 | 568,500 | 514,457 | ||||||||
Other expense, net | 38,745 | 80,753 | 66,298 | ||||||||
Interest income | -4,632 | -4,395 | -4,913 | ||||||||
Interest expense | 849 | 712 | 819 | ||||||||
Equity in earnings of unconsolidated entities | -8,408 | -1,130 | -4,059 | ||||||||
Income before income taxes | 267,120 | 224,928 | 67,681 | 130,029 | 232,420 | 174,722 | 38,330 | 82,350 | 689,758 | 527,822 | 183,554 |
Income tax expense (benefit) | 50,025 | 84,383 | 25,801 | 55,210 | 12,367 | -2,107,162 | 1,913 | 588 | 215,420 | -2,092,294 | -22,591 |
Net income | $217,095 | $140,545 | $41,880 | $74,819 | $220,053 | $2,281,884 | $36,417 | $81,762 | $474,338 | $2,620,116 | $206,145 |
Net income per share: | |||||||||||
Basic (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.58 | $5.92 | $0.09 | $0.21 | $1.27 | $6.79 | $0.54 |
Diluted (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.57 | $5.87 | $0.09 | $0.21 | $1.26 | $6.72 | $0.54 |
Cash dividends declared (usd per share) | $0.08 | $0.05 | $0.05 | $0.05 | $0.05 | $0.10 | $0.23 | $0.15 | $0 | ||
Number of shares used in calculation: | |||||||||||
Basic shares outstanding (shares) | 369,533 | 373,531 | 376,072 | 383,991 | 379,879 | 382,883 | 385,389 | 384,228 | 370,377 | 383,077 | 381,562 |
Effect of dilutive securities (shares) | 3,734 | 3,761 | 3,592 | 3,815 | 3,845 | 3,220 | 5,791 | 6,093 | 3,725 | 3,789 | 3,002 |
Diluted shares outstanding (shares) | 373,267 | 377,292 | 379,664 | 387,806 | 383,724 | 386,103 | 391,180 | 390,321 | 374,102 | 386,866 | 384,564 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $474,338 | $2,620,116 | $206,145 |
Other comprehensive income, net of tax: | |||
Change in value of derivatives | 105 | 197 | 314 |
Other comprehensive income | 105 | 197 | 314 |
Comprehensive income | $474,443 | $2,620,313 | $206,459 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] |
In Thousands, except Share data | |||||
Shareholders' Equity at Dec. 31, 2011 | $1,938,615 | $3,826 | $2,986,240 | ($1,306) | ($1,050,145) |
Shareholders' Equity, shares at Dec. 31, 2011 | 382,608,000 | ||||
Stock option exercises, shares | 2,877,000 | ||||
Stock option exercises | 32,809 | 29 | 32,780 | 0 | 0 |
Stock awards, net of cancellations, shares | 1,228,000 | ||||
Stock awards, net of cancellations | 12 | -12 | |||
Stock repurchases, shares | -105,000 | ||||
Stock repurchases | -961 | -1 | -813 | -147 | |
Stock-based compensation | 12,694 | 0 | 12,694 | 0 | 0 |
Net income | 206,145 | 206,145 | |||
Other comprehensive income | 314 | 314 | |||
Shareholders' Equity at Dec. 31, 2012 | 2,189,616 | 3,866 | 3,030,889 | -992 | -844,147 |
Shareholders' Equity, shares at Dec. 31, 2012 | 386,608,000 | ||||
Stock option exercises, shares | 1,432,000 | ||||
Stock option exercises | 19,411 | 14 | 19,397 | 0 | 0 |
Stock awards, net of cancellations, shares | 1,002,000 | ||||
Stock awards, net of cancellations | 10 | -10 | |||
Dividends declared | -57,530 | -57,530 | |||
Stock repurchases, shares | -7,742,000 | ||||
Stock repurchases | -127,661 | -77 | -3,063 | -124,521 | |
Stock-based compensation | 14,474 | 0 | 14,474 | 0 | 0 |
Excess tax benefits (deficiencies) from stock-based compensation | -9,671 | -9,671 | |||
Net income | 2,620,116 | 2,620,116 | |||
Other comprehensive income | 197 | 197 | |||
Shareholders' Equity at Dec. 31, 2013 | 4,648,952 | 3,813 | 3,052,016 | -795 | 1,593,918 |
Shareholders' Equity, shares at Dec. 31, 2013 | 381,299,600 | 381,300,000 | |||
Stock option exercises, shares | 1,422,000 | ||||
Stock option exercises | 15,627 | 14 | 15,613 | 0 | 0 |
Stock awards, net of cancellations, shares | -43,000 | ||||
Dividends declared | -86,370 | 72 | -86,442 | ||
Stock repurchases, shares | -13,220,000 | ||||
Stock repurchases | -253,019 | -132 | -252,887 | ||
Stock-based compensation | 13,812 | 0 | 13,786 | 0 | 26 |
Excess tax benefits (deficiencies) from stock-based compensation | -8,491 | -8,491 | |||
Net income | 474,338 | 474,338 | |||
Other comprehensive income | 105 | 105 | |||
Shareholders' Equity at Dec. 31, 2014 | $4,804,954 | $3,695 | $3,072,996 | ($690) | $1,728,953 |
Shareholders' Equity, shares at Dec. 31, 2014 | 369,458,530 | 369,459,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $474,338 | $2,620,116 | $206,145 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | |||
Deferred income tax expense | 223,769 | -2,096,425 | 0 |
Write-down of land and deposits and pre-acquisition costs | 11,168 | 9,672 | 17,195 |
Depreciation and amortization | 39,864 | 31,587 | 30,027 |
Stock-based compensation expense | 29,292 | 30,480 | 22,897 |
Loss on debt retirements | 8,584 | 26,930 | 32,071 |
Equity in earnings of unconsolidated entities | -8,408 | -1,130 | -4,059 |
Distributions of earnings from unconsolidated entities | 4,932 | 2,049 | 7,488 |
Other non-cash, net | 9,567 | 9,375 | 10,356 |
Increase (decrease) in cash due to: | |||
Restricted cash | 1,368 | 3,387 | 1,257 |
Inventories | -346,596 | 265,064 | 455,223 |
Residential mortgage loans available-for-sale | -53,734 | 28,448 | -60,828 |
Other assets | -46,249 | -38,190 | 26,014 |
Accounts payable, accrued and other liabilities | -23,671 | -17,377 | 20,802 |
Income tax liabilities | -14,975 | 7,150 | -4,448 |
Net cash provided by operating activities | 309,249 | 881,136 | 760,140 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | 8,157 | 1,001 | 3,029 |
Investments in unconsolidated entities | -9 | -1,677 | -16,456 |
Net change in loans held for investment | 335 | -12,265 | 836 |
Change in restricted cash related to letters of credit | 54,989 | -4,152 | 28,653 |
Proceeds from the sale of property and equipment | 113 | 15 | 7,586 |
Capital expenditures | -48,790 | -28,899 | -13,942 |
Cash used for business acquisition | -82,419 | 0 | 0 |
Net cash provided by (used in) investing activities | -67,624 | -45,977 | 9,706 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 34,577 | -33,131 | 138,795 |
Other borrowings (repayments) | -250,631 | -479,827 | -618,800 |
Stock option exercises | 15,627 | 19,411 | 32,809 |
Stock repurchases | -253,019 | -127,661 | -961 |
Dividends paid | -75,646 | -38,382 | 0 |
Net cash used in financing activities | -529,092 | -659,590 | -448,157 |
Net increase (decrease) in cash and equivalents | -287,467 | 175,569 | 321,689 |
Cash and equivalents at beginning of period | 1,580,329 | 1,404,760 | 1,083,071 |
Cash and equivalents at end of period | 1,292,862 | 1,580,329 | 1,404,760 |
Supplemental Cash Flow Information: | |||
Interest paid (capitalized), net | -4,561 | -171 | -1,470 |
Income taxes paid (refunded), net | $1,030 | $373 | ($13,322) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary of significant accounting policies | Summary of significant accounting policies | |||||||||||||||||||||||
Basis of presentation | ||||||||||||||||||||||||
PulteGroup, Inc. is one of the largest homebuilders in the U.S., and our common stock trades on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title operations. | ||||||||||||||||||||||||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. | ||||||||||||||||||||||||
Business acquisition | ||||||||||||||||||||||||
We acquired certain real estate assets from Dominion Homes in August 2014 for $82.4 million in cash and the assumption of certain payables related to such assets. The net assets acquired are located in Columbus, Ohio, and Louisville and Lexington, Kentucky, and included approximately 8,200 lots, including approximately 400 homes in inventory and control of approximately 900 lots through option contracts. We also assumed a sales order backlog of 622 homes. The acquired net assets were recorded at their estimated fair values. The acquisition of these assets was not material to our results of operations or financial condition. | ||||||||||||||||||||||||
Use of estimates | ||||||||||||||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||||
Subsequent events | ||||||||||||||||||||||||
We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). | ||||||||||||||||||||||||
Cash and equivalents | ||||||||||||||||||||||||
Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2014 and 2013 also included $5.1 million and $3.7 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. | ||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||
We maintain certain cash balances that are restricted as to their use. Restricted cash includes deposits maintained with financial institutions under cash-collateralized letter of credit agreements (see Note 6) as well as certain other accounts with restrictions, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. | ||||||||||||||||||||||||
Investments in unconsolidated entities | ||||||||||||||||||||||||
We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. | ||||||||||||||||||||||||
We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities in the Consolidated Statements of Operations. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 5. | ||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||
Intangible assets consist of tradenames acquired in connection with the 2009 acquisition of Centex Corporation ("Centex") and the 2001 acquisition of Del Webb Corporation ("Del Webb"). These intangible assets were valued at the acquisition date and are being amortized over 20-year lives. The acquired cost and accumulated amortization of our intangible assets were $259.0 million and $135.9 million, respectively, at December 31, 2014, and $259.0 million and $122.9 million, respectively, at December 31, 2013. Amortization expense totaled $13.0 million in 2014, and $13.1 million in 2013 and 2012, and is expected to be $12.9 million in each of the next five years. | ||||||||||||||||||||||||
The ultimate realization of these assets is dependent upon estimates of future earnings and benefits that we expect to generate from their use. If we determine that the carrying values of intangible assets may not be recoverable based upon the existence of one or more indicators of impairment, we use a projected undiscounted cash flow method to determine if impairment exists. If the carrying values of the intangible assets exceed the expected undiscounted cash flows, then we measure impairment as the difference between the fair value of the asset and the recorded carrying value. There were no impairments of tradenames during 2014, 2013, or 2012. | ||||||||||||||||||||||||
Property and equipment, net, and depreciation | ||||||||||||||||||||||||
Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: model home furniture - two years; office furniture and equipment - three to ten years; and leasehold improvements - life of the lease. Property and equipment are included in other assets and totaled $75.2 million net of accumulated depreciation of $192.2 million at December 31, 2014 and $53.1 million net of accumulated depreciation of $182.0 million at December 31, 2013. Depreciation expense totaled $26.8 million, $18.5 million, and $16.9 million in 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Advertising costs | ||||||||||||||||||||||||
Advertising costs are expensed as incurred and totaled $41.8 million, $42.4 million, and $45.8 million, in 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Employee benefits | ||||||||||||||||||||||||
We maintain defined contribution retirement plans that cover substantially all of our employees. Company contributions to the plans totaled $12.1 million, $11.0 million, and $9.4 million in 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Other expense, net | ||||||||||||||||||||||||
Other expense, net consists of the following ($000’s omitted): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Write-offs of deposits and pre-acquisition costs (Note 3) | $ | 6,099 | $ | 3,122 | $ | 2,278 | ||||||||||||||||||
Loss on debt retirements (Note 6) | 8,584 | 26,930 | 32,071 | |||||||||||||||||||||
Lease exit and related costs | 9,609 | 2,778 | 7,306 | |||||||||||||||||||||
Amortization of intangible assets (Note 1) | 13,033 | 13,100 | 13,100 | |||||||||||||||||||||
Miscellaneous, net (a) | 1,420 | 34,823 | 11,543 | |||||||||||||||||||||
$ | 38,745 | $ | 80,753 | $ | 66,298 | |||||||||||||||||||
(a) | Includes charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12) and $5.1 million in 2012 related to the write-down of notes receivable. | |||||||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted stock and restricted stock units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our earnings per share excluded 6.6 million, 9.6 million, and 16.6 million stock options, unvested restricted stock and restricted stock units, and other potentially dilutive instruments in 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
In accordance with ASC 260 "Earnings Per Share" ("ASC 260"), the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The Company's outstanding restricted stock awards, restricted stock units, and deferred shares are considered participating securities. | ||||||||||||||||||||||||
The following table presents the earnings per share of common stock ($000's omitted, except per share data): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income | $ | 474,338 | $ | 2,620,116 | $ | 206,145 | ||||||||||||||||||
Less: earnings distributed to participating securities | (583 | ) | (407 | ) | — | |||||||||||||||||||
Less: undistributed earnings allocated to participating securities | (2,668 | ) | (19,201 | ) | — | |||||||||||||||||||
Numerator for basic earnings per share | $ | 471,087 | $ | 2,600,508 | $ | 206,145 | ||||||||||||||||||
Add back: undistributed earnings allocated to participating securities | 2,668 | 19,201 | — | |||||||||||||||||||||
Less: undistributed earnings reallocated to participating securities | (2,643 | ) | (18,845 | ) | — | |||||||||||||||||||
Numerator for diluted earnings per share | $ | 471,112 | $ | 2,600,864 | $ | 206,145 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Basic shares outstanding | 370,377 | 383,077 | 381,562 | |||||||||||||||||||||
Effect of dilutive securities | 3,725 | 3,789 | 3,002 | |||||||||||||||||||||
Diluted shares outstanding | 374,102 | 386,866 | 384,564 | |||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Basic | $ | 1.27 | $ | 6.79 | $ | 0.54 | ||||||||||||||||||
Diluted | $ | 1.26 | $ | 6.72 | $ | 0.54 | ||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||
We measure compensation cost for restricted stock and restricted stock units at fair value on the grant date. Fair value is determined based on the quoted price of our common stock on the grant date. We recognize compensation expense for restricted stock and restricted stock units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 8. | ||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||
The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on the consolidated results of operations or financial position. | ||||||||||||||||||||||||
Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740, “Income Taxes” (“ASC 740”), which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including changes in facts or circumstances, changes in law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 9. | ||||||||||||||||||||||||
Homebuilding revenue recognition | ||||||||||||||||||||||||
Homebuilding revenue and related profit are generally recognized when title to and possession of the property are transferred to the buyer. In situations where the buyer’s financing is originated by Pulte Mortgage and the buyer has not made an adequate initial or continuing investment, the profit on such sale is deferred until the sale of the related mortgage loan to a third-party investor has been completed. If there is a loss on the sale of the property, the loss on such sale is recognized at the time of closing. The amount of such deferred profits were not material at either December 31, 2014 or December 31, 2013. | ||||||||||||||||||||||||
Sales incentives | ||||||||||||||||||||||||
When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. | ||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. | ||||||||||||||||||||||||
We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. | ||||||||||||||||||||||||
Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and commissions and closing costs applicable to the home. The construction cost of the home includes amounts paid through the closing date of the home, plus an appropriate accrual for costs incurred but not yet paid, based on an analysis of budgeted construction costs. This accrual is reviewed for accuracy based on actual payments made after closing compared with the amount accrued, and adjustments are made if needed. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. | ||||||||||||||||||||||||
We record valuation adjustments on land inventory when events and circumstances indicate that the related community may be impaired and when the cash flows estimated to be generated by the community are less than its carrying amount. Such indicators include gross margin or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community. Impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community. Our evaluations for impairments are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. See Note 3. | ||||||||||||||||||||||||
Land held for sale | ||||||||||||||||||||||||
We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 3. | ||||||||||||||||||||||||
Land option agreements | ||||||||||||||||||||||||
We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 3. | ||||||||||||||||||||||||
If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2014 or December 31, 2013 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. Separately, certain land option agreements represent financing arrangements due to the remaining purchase price under the land option agreements, in the event we exercise the purchase rights under the agreements, even though we generally have no obligation to pay these future amounts. As a result, we recorded $30.2 million and $24.0 million at December 31, 2014 and December 31, 2013, respectively, to land, not owned, under option agreements with a corresponding increase to accrued and other liabilities. The following provides a summary of our interests in land option agreements ($000’s omitted): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Deposits and | Remaining Purchase | Land, Not | Deposits and | Remaining Purchase | Land, Not | |||||||||||||||||||
Pre-acquisition | Price | Owned, | Pre-acquisition | Price | Owned, | |||||||||||||||||||
Costs | Under | Costs | Under | |||||||||||||||||||||
Option | Option | |||||||||||||||||||||||
Agreements | Agreements | |||||||||||||||||||||||
Land options with VIEs | $ | 56,039 | $ | 891,506 | $ | 12,533 | $ | 40,486 | $ | 661,158 | $ | 8,167 | ||||||||||||
Other land options | 71,241 | 999,079 | 17,653 | 50,548 | 729,128 | 15,857 | ||||||||||||||||||
$ | 127,280 | $ | 1,890,585 | $ | 30,186 | $ | 91,034 | $ | 1,390,286 | $ | 24,024 | |||||||||||||
Start-up costs | ||||||||||||||||||||||||
Costs and expenses associated with opening new communities are expensed to selling, general, and administrative expenses when incurred. | ||||||||||||||||||||||||
Allowance for warranties | ||||||||||||||||||||||||
Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time the product revenue is recognized. | ||||||||||||||||||||||||
Self-insured risks | ||||||||||||||||||||||||
We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time product revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 12. | ||||||||||||||||||||||||
Residential mortgage loans available-for-sale | ||||||||||||||||||||||||
Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 12 for discussion of the risks retained related to mortgage loan originations. | ||||||||||||||||||||||||
Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At December 31, 2014 and 2013, residential mortgage loans available-for-sale had an aggregate fair value of $339.5 million and $287.9 million, respectively, and an aggregate outstanding principal balance of $327.4 million and $278.1 million, respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $1.7 million and $(1.2) million for the years ended December 31, 2014 and 2013, respectively. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages during 2014, 2013, and 2012 were $67.2 million, $80.3 million, and $109.2 million, respectively, and have been included in Financial Services revenues. | ||||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||
We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. Such reserves were immaterial at December 31, 2014 and 2013 and are included in accrued and other liabilities. | ||||||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||
We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are carried at cost and are reviewed for impairment when recoverability becomes doubtful. Loans held for investment are included in other assets and totaled $12.5 million and $11.0 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Interest income on mortgage loans | ||||||||||||||||||||||||
Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $7.2 million, $7.5 million, and $6.0 million in 2014, 2013, and 2012, respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. | ||||||||||||||||||||||||
Mortgage servicing, origination, and commitment fees | ||||||||||||||||||||||||
Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance, or a contracted set fee in the case of certain sub-servicing arrangements, and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Loan origination costs related to residential mortgage loans available-for-sale are recognized as incurred in Financial Services expenses while the associated mortgage origination fees are recognized in Financial Services revenues as earned, generally upon loan closing. | ||||||||||||||||||||||||
Title services | ||||||||||||||||||||||||
Revenues associated with our title operations are recognized within Financial Services revenues as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. | ||||||||||||||||||||||||
Derivative instruments and hedging activities | ||||||||||||||||||||||||
We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). In order to reduce these risks, we use other derivative financial instruments, principally cash forward placement contracts on mortgage-backed securities and whole loan investor commitments, to economically hedge the interest rate lock commitment. We enter into these derivative financial instruments based upon our portfolio of interest rate lock commitments and closed loans. We do not enter into any derivative financial instruments for trading purposes. | ||||||||||||||||||||||||
At December 31, 2014 and 2013, we had aggregate interest rate lock commitments of $146.1 million and $175.7 million, respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. | ||||||||||||||||||||||||
Forward contracts on mortgage-backed securities are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price that may be settled in cash, by offsetting the position, or through the delivery of the financial instrument. Forward contracts on mortgage-backed securities are the predominant derivative 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 sold to an investor. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. At December 31, 2014 and 2013, we had unexpired forward contracts of $371.0 million and $381.5 million, respectively, and whole loan investor commitments of $63.5 million and $31.7 million, respectively. Changes in the fair value of interest rate lock commitments and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. | ||||||||||||||||||||||||
There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 75 days. | ||||||||||||||||||||||||
The fair values of derivative instruments and their location in the Consolidated Balance Sheets is summarized below ($000’s omitted): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Other Assets | Other Liabilities | Other Assets | Other Liabilities | |||||||||||||||||||||
Interest rate lock commitments | $ | 4,313 | $ | 65 | $ | 3,628 | $ | 489 | ||||||||||||||||
Forward contracts | 79 | 3,653 | 4,374 | 34 | ||||||||||||||||||||
Whole loan commitments | 31 | 619 | 189 | 84 | ||||||||||||||||||||
$ | 4,423 | $ | 4,337 | $ | 8,191 | $ | 607 | |||||||||||||||||
New accounting pronouncements | ||||||||||||||||||||||||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-04, “Receivables - Troubled Debt Restructurings by Creditors,” which clarifies when an in substance repossession or foreclosure of residential real estate property collateralizing a consumer mortgage loan has occurred. By doing so, this guidance helps determine when the creditor should derecognize the loan receivable and recognize the real estate property. The guidance is effective for us beginning January 1, 2015 and is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. | ||||||||||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 is effective for us for fiscal and interim periods beginning January 1, 2017 and allows for full retrospective or modified retrospective methods of adoption. We are currently evaluating the impact that the standard will have on our financial statements. | ||||||||||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures” ("ASU 2014-11"), which makes limited amendments to ASC 860, "Transfers and Servicing." The ASU requires entities to account for repurchase-to-maturity transactions as secured borrowings, eliminates accounting guidance on linked repurchase financing transactions, and expands disclosure requirements related to certain transfers of financial assets. ASU 2014-11 is effective for us for fiscal periods beginning January 1, 2015 and interim periods beginning April 1, 2015 and is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. | ||||||||||||||||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern and provide related disclosures. ASU 2014-15 is effective for annual and interim reporting periods beginning January 1, 2017 and is not expected to have a material impact on our financial statements. |
Corporate_Office_Relocation
Corporate Office Relocation | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Corporate office relocation | Corporate office relocation |
In May 2013, we announced our plan to relocate our corporate offices to Atlanta, Georgia, from the previous location in Bloomfield Hills, Michigan. The relocation of operations is occurring in phases over time and is expected to be substantially complete in 2015. We recorded employee severance, retention, relocation, and related costs of $7.6 million and $15.0 million in 2014 and 2013, respectively. We also recorded lease exit and asset impairment costs totaling $8.7 million and $0.4 million in 2014 and 2013, respectively. Severance, retention, relocation, and related costs are recorded within selling, general, and administrative expense, while lease exit and asset impairments are included in other expense, net. We expect the remaining costs to total less than $15.0 million. We have also incurred costs at the new location related to the recruitment and onboarding of new employees and certain redundant operating costs, the amount of which has not been material. |
Inventory_And_Land_Held_For_Sa
Inventory And Land Held For Sale | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Inventory and land held for sale | Inventory and land held for sale | |||||||||||
Major components of inventory at December 31, 2014 and 2013 were ($000’s omitted): | ||||||||||||
2014 | 2013 | |||||||||||
Homes under construction | $ | 1,084,137 | $ | 1,042,147 | ||||||||
Land under development | 2,545,049 | 2,189,387 | ||||||||||
Raw land | 762,914 | 747,027 | ||||||||||
$ | 4,392,100 | $ | 3,978,561 | |||||||||
In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Information related to interest capitalized into inventory is as follows ($000’s omitted): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Interest in inventory, beginning of period | $ | 230,922 | $ | 331,880 | $ | 355,068 | ||||||
Interest capitalized | 131,444 | 154,107 | 201,103 | |||||||||
Interest expensed (a) | (194,728 | ) | (255,065 | ) | (224,291 | ) | ||||||
Interest in inventory, end of period | 167,638 | 230,922 | 331,880 | |||||||||
(a) | Interest expensed to Home sale cost of revenues for 2014, 2013, and 2012 included $1.3 million, $2.9 million, and $6.5 million, respectively, of capitalized interest write-offs resulting from land-related charges and sales. | |||||||||||
Land-related charges | ||||||||||||
We recorded the following land-related charges: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Land impairments | $ | 3,911 | $ | 2,944 | $ | 13,437 | ||||||
Net realizable value adjustments ("NRV") - land held for sale | 1,158 | 3,606 | 1,480 | |||||||||
Write-off of deposits and pre-acquisition costs | 6,099 | 3,122 | 2,278 | |||||||||
Total land-related charges | $ | 11,168 | $ | 9,672 | $ | 17,195 | ||||||
Land held for sale | ||||||||||||
We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale at December 31, 2014 and 2013 was as follows ($000’s omitted): | ||||||||||||
2014 | 2013 | |||||||||||
Land held for sale, gross | $ | 108,725 | $ | 70,003 | ||||||||
Net realizable value reserves | (7,535 | ) | (8,268 | ) | ||||||||
Land held for sale, net | $ | 101,190 | $ | 61,735 | ||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment information | Segment information | |||||||||||||||||||
Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. Home sale revenues for detached and attached homes were $4.8 billion and $885.8 million in 2014, $4.5 billion and $939.0 million in 2013, and $3.6 billion and $925.4 million in 2012, respectively. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: | ||||||||||||||||||||
Northeast: | Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, | |||||||||||||||||||
Rhode Island, Virginia | ||||||||||||||||||||
Southeast: | Georgia, North Carolina, South Carolina, Tennessee | |||||||||||||||||||
Florida: | Florida | |||||||||||||||||||
Texas: | Texas | |||||||||||||||||||
North: | Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Northern California, Ohio, Washington | |||||||||||||||||||
Southwest: | Arizona, Nevada, New Mexico, Southern California | |||||||||||||||||||
We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments. Evaluation of segment performance is generally based on income before income taxes. Each reportable segment generally follows the same accounting policies described in Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements. | ||||||||||||||||||||
Operating Data by Segment ($000’s omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Northeast | $ | 710,859 | $ | 819,709 | $ | 755,148 | ||||||||||||||
Southeast | 949,635 | 842,921 | 691,113 | |||||||||||||||||
Florida | 917,956 | 802,665 | 628,997 | |||||||||||||||||
Texas | 859,165 | 835,473 | 682,929 | |||||||||||||||||
North | 1,436,500 | 1,232,814 | 1,022,633 | |||||||||||||||||
Southwest | 822,610 | 1,005,062 | 878,290 | |||||||||||||||||
5,696,725 | 5,538,644 | 4,659,110 | ||||||||||||||||||
Financial Services | 125,638 | 140,951 | 160,888 | |||||||||||||||||
Consolidated revenues | $ | 5,822,363 | $ | 5,679,595 | $ | 4,819,998 | ||||||||||||||
Income before income taxes: | ||||||||||||||||||||
Northeast | $ | 103,865 | $ | 110,246 | $ | 73,345 | ||||||||||||||
Southeast | 156,513 | 121,055 | 64,678 | |||||||||||||||||
Florida | 190,441 | 139,673 | 73,472 | |||||||||||||||||
Texas | 133,005 | 111,431 | 60,979 | |||||||||||||||||
North | 197,230 | 164,348 | 84,597 | |||||||||||||||||
Southwest | 136,357 | 179,163 | 79,887 | |||||||||||||||||
Other homebuilding (a) | (282,234 | ) | (346,803 | ) | (278,967 | ) | ||||||||||||||
635,177 | 479,113 | 157,991 | ||||||||||||||||||
Financial Services | 54,581 | 48,709 | 25,563 | |||||||||||||||||
Consolidated income before income taxes | $ | 689,758 | $ | 527,822 | $ | 183,554 | ||||||||||||||
(a) | Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Other homebuilding also included the following: losses on debt retirements of $8.6 million, $26.9 million, and $32.1 million for 2014, 2013, and 2012, respectively; charges totaling $69.3 million to increase general liability insurance reserves in 2014; costs associated with the relocation of our corporate headquarters totaling $16.3 million and $15.4 million in 2014 and 2013, respectively; and charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community. | |||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Land-related charges*: | ||||||||||||||||||||
Northeast | $ | 2,824 | $ | 557 | $ | 1,794 | ||||||||||||||
Southeast | 1,826 | 998 | 1,363 | |||||||||||||||||
Florida | 487 | 1,076 | 214 | |||||||||||||||||
Texas | 321 | 191 | 556 | |||||||||||||||||
North | 3,227 | 3,434 | 4,546 | |||||||||||||||||
Southwest | 816 | 472 | 2,254 | |||||||||||||||||
Other homebuilding | 1,667 | 2,944 | 6,468 | |||||||||||||||||
$ | 11,168 | $ | 9,672 | $ | 17,195 | |||||||||||||||
* | Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 1 for additional discussion of these charges. | |||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||
Northeast | $ | 1,852 | $ | 1,987 | $ | 1,790 | ||||||||||||||
Southeast | 2,666 | 1,647 | 1,028 | |||||||||||||||||
Florida | 2,150 | 1,334 | 1,640 | |||||||||||||||||
Texas | 1,698 | 1,784 | 1,619 | |||||||||||||||||
North | 4,414 | 2,265 | 1,709 | |||||||||||||||||
Southwest | 4,002 | 2,969 | 3,143 | |||||||||||||||||
Other homebuilding (a) | 19,548 | 16,248 | 16,168 | |||||||||||||||||
36,330 | 28,234 | 27,097 | ||||||||||||||||||
Financial Services | 3,534 | 3,353 | 2,930 | |||||||||||||||||
$ | 39,864 | $ | 31,587 | $ | 30,027 | |||||||||||||||
(a) | Other homebuilding includes amortization of intangible assets. | |||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Equity in (earnings) loss of unconsolidated entities: | ||||||||||||||||||||
Northeast | $ | (4,733 | ) | $ | (58 | ) | $ | (4 | ) | |||||||||||
Southeast | — | — | — | |||||||||||||||||
Florida | (7 | ) | (4 | ) | — | |||||||||||||||
Texas | — | — | — | |||||||||||||||||
North | (2,417 | ) | (608 | ) | (1,497 | ) | ||||||||||||||
Southwest | (486 | ) | (678 | ) | (1,137 | ) | ||||||||||||||
Other homebuilding | (583 | ) | 355 | (1,235 | ) | |||||||||||||||
(8,226 | ) | (993 | ) | (3,873 | ) | |||||||||||||||
Financial Services | (182 | ) | (137 | ) | (186 | ) | ||||||||||||||
$ | (8,408 | ) | $ | (1,130 | ) | $ | (4,059 | ) | ||||||||||||
Operating Data by Segment | ||||||||||||||||||||
($000's omitted) | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 184,974 | $ | 266,229 | $ | 106,077 | $ | 557,280 | $ | 659,224 | ||||||||||
Southeast | 147,506 | 304,762 | 117,981 | 570,249 | 605,067 | |||||||||||||||
Florida | 150,743 | 350,016 | 112,225 | 612,984 | 717,531 | |||||||||||||||
Texas | 134,873 | 250,102 | 91,765 | 476,740 | 528,392 | |||||||||||||||
North | 280,970 | 478,665 | 137,044 | 896,679 | 996,908 | |||||||||||||||
Southwest | 166,056 | 698,513 | 163,421 | 1,027,990 | 1,113,592 | |||||||||||||||
Other homebuilding (a) | 19,015 | 196,762 | 34,401 | 250,178 | 3,527,731 | |||||||||||||||
1,084,137 | 2,545,049 | 762,914 | 4,392,100 | 8,148,445 | ||||||||||||||||
Financial Services | — | — | — | — | 420,965 | |||||||||||||||
$ | 1,084,137 | $ | 2,545,049 | $ | 762,914 | $ | 4,392,100 | $ | 8,569,410 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 212,611 | $ | 325,241 | $ | 106,681 | $ | 644,533 | $ | 731,259 | ||||||||||
Southeast | 139,484 | 274,981 | 146,617 | 561,082 | 599,271 | |||||||||||||||
Florida | 140,366 | 295,631 | 104,766 | 540,763 | 618,449 | |||||||||||||||
Texas | 130,398 | 223,979 | 57,480 | 411,857 | 466,198 | |||||||||||||||
North | 227,537 | 350,239 | 78,945 | 656,721 | 716,239 | |||||||||||||||
Southwest | 159,350 | 512,164 | 201,659 | 873,173 | 940,462 | |||||||||||||||
Other homebuilding (a) | 32,401 | 207,152 | 50,879 | 290,432 | 4,334,591 | |||||||||||||||
1,042,147 | 2,189,387 | 747,027 | 3,978,561 | 8,406,469 | ||||||||||||||||
Financial Services | — | — | — | — | 327,674 | |||||||||||||||
$ | 1,042,147 | $ | 2,189,387 | $ | 747,027 | $ | 3,978,561 | $ | 8,734,143 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 198,549 | $ | 445,436 | $ | 109,136 | $ | 753,121 | $ | 866,024 | ||||||||||
Southeast | 147,227 | 286,210 | 120,193 | 553,630 | 590,650 | |||||||||||||||
Florida | 130,276 | 310,625 | 100,633 | 541,534 | 620,220 | |||||||||||||||
Texas | 145,594 | 256,704 | 54,556 | 456,854 | 523,843 | |||||||||||||||
North | 219,172 | 369,144 | 46,414 | 634,730 | 680,447 | |||||||||||||||
Southwest | 226,204 | 496,488 | 167,295 | 889,987 | 963,540 | |||||||||||||||
Other homebuilding (a) | 49,162 | 270,771 | 64,257 | 384,190 | 2,140,739 | |||||||||||||||
1,116,184 | 2,435,378 | 662,484 | 4,214,046 | 6,385,463 | ||||||||||||||||
Financial Services | — | — | — | — | 348,946 | |||||||||||||||
$ | 1,116,184 | $ | 2,435,378 | $ | 662,484 | $ | 4,214,046 | $ | 6,734,409 | |||||||||||
(a) | Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments. |
Investments_In_Unconsolidated_
Investments In Unconsolidated Entities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Investments In unconsolidated entities | Investments in unconsolidated entities | |||||||
We participate in a number of joint ventures with independent third parties. Many of these joint ventures purchase, develop, and/or sell land and homes. A summary of our joint ventures is presented below ($000’s omitted): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Investments in joint ventures with debt non-recourse to PulteGroup | $ | 26,488 | $ | 26,532 | ||||
Investments in other active joint ventures | 13,880 | 18,791 | ||||||
Total investments in unconsolidated entities | $ | 40,368 | $ | 45,323 | ||||
Total joint venture debt | $ | 25,849 | $ | 12,408 | ||||
PulteGroup proportionate share of joint venture debt: | ||||||||
Joint venture debt with limited recourse guaranties | $ | 283 | $ | 750 | ||||
Joint venture debt non-recourse to PulteGroup | 11,341 | 3,654 | ||||||
PulteGroup's total proportionate share of joint venture debt | $ | 11,624 | $ | 4,404 | ||||
In 2014, 2013, and 2012, we recognized income from unconsolidated joint ventures of $8.4 million, $1.1 million, and $4.1 million, respectively. During 2014, 2013, and 2012, we made capital contributions of $0.0 million, $1.7 million, and $16.5 million, respectively, and received distributions of $13.1 million, $3.1 million, and $10.5 million, respectively. | ||||||||
The timing of cash obligations under a joint venture and any related financing agreements varies by agreement. If additional capital contributions are required and approved, we would need to contribute our pro rata portion of those capital needs in order to not dilute our ownership in the joint ventures. While future capital contributions may be required, we believe the total amount of such contributions will be limited. Our maximum financial loss exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals. |
Debt
Debt | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt | Debt | |||||||||||
Our senior notes are summarized as follows ($000’s omitted): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
5.20% unsecured senior notes due February 2015 (a) | $ | — | $ | 95,633 | ||||||||
5.25% unsecured senior notes due June 2015 (a) | 236,452 | 233,085 | ||||||||||
6.50% unsecured senior notes due May 2016 (a) | 462,009 | 459,581 | ||||||||||
7.625% unsecured senior notes due October 2017 (b) | 122,752 | 122,663 | ||||||||||
7.875% unsecured senior notes due June 2032 (a) | 299,239 | 299,196 | ||||||||||
6.375% unsecured senior notes due May 2033 (a) | 398,640 | 398,567 | ||||||||||
6.00% unsecured senior notes due February 2035 (a) | 299,469 | 299,443 | ||||||||||
7.375% unsecured senior notes due June 2046 (a) | — | 150,000 | ||||||||||
Total senior notes – carrying value (c) | $ | 1,818,561 | $ | 2,058,168 | ||||||||
Estimated fair value | $ | 1,952,774 | $ | 2,070,744 | ||||||||
(a) | Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. | |||||||||||
(b) | Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. | |||||||||||
(c) | The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes. | |||||||||||
The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2014, we were in compliance with all of the covenants and requirements under the senior notes. Total senior note principal maturities of $1.8 billion during the five years following 2014 and thereafter are as follows: 2015 - $238.0 million; 2016 - $465.2 million; 2017 - $123.0 million; 2018 - $0.0 million; 2019 - $0.0 million; and thereafter - $1.0 billion. Refer to Note 13 for supplemental consolidating financial information of the Company. | ||||||||||||
Debt retirement | ||||||||||||
During the last three years, we significantly reduced our outstanding senior notes through a variety of transactions. As a result of these transactions, we reduced our outstanding senior notes by $245.7 million, $461.4 million, and $592.4 million during 2014, 2013, and 2012, respectively, and recorded losses totaling $8.6 million, $26.9 million, and $32.1 million in 2014, 2013 and 2012, respectively. Losses on debt repurchase transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense (income), net. | ||||||||||||
Revolving credit facility | ||||||||||||
In July 2014, we entered into a senior unsecured revolving credit facility (the “Revolving Credit Facility”) maturing in July 2017. The Revolving Credit Facility provides for maximum borrowings of $500 million and contains an uncommitted accordion feature that could increase the size of the Revolving Credit Facility to $1.0 billion, subject to certain conditions and availability of additional bank commitments. The Revolving Credit Facility also provides for the issuance of letters of credit that reduce available borrowing capacity under the Revolving Credit Facility and may total no more than the greater of: (i) 50% of the size of the facility or (ii) $300 million in the aggregate. The interest rate on borrowings under the Revolving Credit Facility may be based on either the London Interbank Offered Rate or Base Rate plus an applicable margin, as defined. At December 31, 2014, we had no borrowings outstanding and $208.4 million of letters of credit issued under the Revolving Credit Facility. | ||||||||||||
The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth, a minimum Interest Coverage Ratio, and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of December 31, 2014, we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. | ||||||||||||
Other letter of credit facilities | ||||||||||||
We maintain a separate cash-collateralized letter of credit agreement with a bank. Letters of credit totaling $3.7 million and $58.7 million were outstanding under this agreement (or similar previous agreements with different financial institutions) at December 31, 2014 and 2013, respectively. Under this agreement, we are required to maintain deposits with the financial institution in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash. An unsecured letter of credit facility we previously maintained with a bank expired in September 2014. | ||||||||||||
Limited recourse notes payable | ||||||||||||
Certain of our local homebuilding operations maintain limited recourse collateralized notes payable with third parties totaling $22.3 million and $7.5 million at December 31, 2014 and 2013, respectively. These notes have maturities ranging up to 6 years, are collateralized by the applicable land positions to which they relate, have no recourse to any other assets, and are classified within accrued and other liabilities. The stated interest rates on these notes range up to 5.00%. | ||||||||||||
Pulte Mortgage | ||||||||||||
Pulte Mortgage maintains a master repurchase agreement (the “Repurchase Agreement”) with third party lenders. In September 2014, Pulte Mortgage entered into an amendment to the Repurchase Agreement that extended the effective date to September 2015 and established a borrowing capacity of $150.0 million. The capacity will reduce to $99.8 million in February 2015, and will increase again to $150.0 million in June 2015. The purpose for the change in capacity during the term of the agreement is to lower associated fees during seasonally low volume periods when the additional capacity is unnecessary. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. Pulte Mortgage had $140.2 million and $105.7 million outstanding under the Repurchase Agreement at December 31, 2014, and 2013, respectively, and was in compliance with all of its covenants and requirements as of such dates. | ||||||||||||
The following is aggregate borrowing information for our mortgage operations ($000’s omitted): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Available credit lines | $ | 150,000 | $ | 150,000 | $ | 150,000 | ||||||
Unused credit lines | $ | 9,759 | $ | 44,336 | $ | 11,205 | ||||||
Weighted-average interest rate | 2.7 | % | 2.9 | % | 3 | % |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity |
We reinstated our quarterly cash dividend in July 2013. During 2013, we declared three cash dividends of $0.05 per common share each. During 2014, we declared cash dividends of $0.05 per common share in each of the first three quarters and $0.08 per common share in the fourth quarter for a total of $86.4 million. | |
In previous years, our Board of Directors authorized a share repurchase program. In October 2014, our Board of Directors approved an increase of $750.0 million to such authorization. We repurchased 12.9 million and 7.2 million shares under the repurchase authorizations for a total of $245.8 million and $118.1 million in 2014 and 2013, respectively. There were no repurchases under these programs during 2012. At December 31, 2014, we had remaining authorization to repurchase $738.5 million of common shares. | |
Under our stock-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted stock, generally related to the payment of minimum tax obligations. During 2014, 2013, and 2012, employees surrendered shares valued at $7.2 million, $9.6 million, and $1.0 million, respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization. |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||||
Stock compensation plans | Stock compensation plans | |||||||||||||||||||||||
We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted stock, performance shares, and restricted stock units ("RSUs") to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not exceeding ten years. Non-employee directors are entitled to an annual distribution of stock options, common stock, or restricted stock units. All options granted to non-employee directors vest immediately and are exercisable on the grant date for ten years. Options granted to employees generally vest incrementally over four years. Restricted stock and RSUs generally cliff vest after three years. Restricted stock holders have voting rights during the vesting period and both restricted stock and RSU holders receive cash dividends during the vesting period. Performance shares vest upon attainment of the stated performance targets and minimum service requirements and are converted into shares of common stock upon distribution. RSUs represent the right to receive an equal number of shares of common stock and are converted into shares of common stock upon distribution. As of December 31, 2014, there were 23.5 million shares that remained available for grant under the plan. | ||||||||||||||||||||||||
Our stock compensation expense for the three years ended December 31, 2014 is presented below ($000's omitted): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Stock options | $ | 121 | $ | 1,056 | $ | 2,617 | ||||||||||||||||||
Restricted stock (including RSUs and performance shares) | 13,690 | 13,418 | 10,077 | |||||||||||||||||||||
Long-term incentive plans | 15,481 | 16,006 | 10,203 | |||||||||||||||||||||
$ | 29,292 | $ | 30,480 | $ | 22,897 | |||||||||||||||||||
Stock options | ||||||||||||||||||||||||
A summary of stock option activity for the three years ended December 31, 2014 is presented below (000’s omitted except per share data): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | ||||||||||||||||||||||
Outstanding, beginning of year | 12,887 | $ | 23 | 17,148 | $ | 22 | 21,641 | $ | 21 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Exercised | (1,422 | ) | 11 | (1,432 | ) | 14 | (2,877 | ) | 11 | |||||||||||||||
Forfeited | (2,095 | ) | 29 | (2,829 | ) | 25 | (1,616 | ) | 27 | |||||||||||||||
Outstanding, end of year | 9,370 | $ | 23 | 12,887 | $ | 23 | 17,148 | $ | 22 | |||||||||||||||
Options exercisable at year end | 9,265 | $ | 23 | 12,402 | $ | 23 | 15,719 | $ | 23 | |||||||||||||||
Weighted-average per share fair value of | $ | — | $ | — | $ | — | ||||||||||||||||||
options granted during the year | ||||||||||||||||||||||||
The following table summarizes information about the weighted-average remaining contractual lives of stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average Per | ||||||||||||||||||||
(000's omitted) | Remaining | Per Share | (000's omitted) | Share | ||||||||||||||||||||
Contract Life | Exercise Price | Exercise Price | ||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
$0.01 to $11.00 | 907 | 4 | $ | 10 | 802 | $ | 10 | |||||||||||||||||
$11.01 to $18.00 | 4,003 | 4.6 | 12 | 4,003 | 12 | |||||||||||||||||||
$18.01 to $25.00 | 417 | 0.3 | 23 | 417 | 23 | |||||||||||||||||||
$25.01 to $35.00 | 1,997 | 1.9 | 34 | 1,997 | 34 | |||||||||||||||||||
$35.01 to $45.00 | 2,046 | 0.9 | 40 | 2,046 | 40 | |||||||||||||||||||
9,370 | 3 | $ | 23 | 9,265 | $ | 23 | ||||||||||||||||||
We did not issue any stock options during 2014, 2013, or 2012. As a result, there is no unrecognized compensation cost related to stock option awards at December 31, 2014. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of stock options that were exercised during 2014, 2013, and 2012 was $14.1 million, $10.8 million, and $8.6 million, respectively. As of December 31, 2014, options outstanding had an intrinsic value of $48.8 million, of which $47.3 million related to options exercisable. | ||||||||||||||||||||||||
Restricted stock (including RSUs and performance shares) | ||||||||||||||||||||||||
A summary of restricted stock activity, including RSUs and performance shares, for the three years ended December 31, 2014 is presented below (000’s omitted, except per share data): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||
Outstanding, beginning of | 3,211 | $ | 11 | 3,822 | $ | 9 | 3,042 | $ | 9 | |||||||||||||||
year | ||||||||||||||||||||||||
Granted | 974 | $ | 19 | 806 | $ | 21 | 1,461 | $ | 10 | |||||||||||||||
Distributed | (1,019 | ) | $ | 10 | (1,391 | ) | $ | 11 | (544 | ) | $ | 11 | ||||||||||||
Forfeited | (276 | ) | $ | 15 | (26 | ) | $ | 15 | (137 | ) | $ | 10 | ||||||||||||
Outstanding, end of year | 2,890 | $ | 15 | 3,211 | $ | 11 | 3,822 | $ | 9 | |||||||||||||||
Vested, end of year | 75 | $ | 13 | 60 | $ | 12 | 51 | $ | 10 | |||||||||||||||
During 2014, 2013, and 2012, the total fair value of shares vested during the year was $8.1 million, $12.7 million, and $3.7 million, respectively. Unamortized compensation cost related to restricted stock awards was $13.9 million at December 31, 2014. These costs will be expensed over a weighted-average period of approximately 2 years. | ||||||||||||||||||||||||
Certain individuals have received grants of performance shares. The fair value of each performance share was calculated using the stock price on the grant date. We recognize expense when it becomes probable that the stated performance targets will be achieved. Unamortized compensation cost related to performance shares considered probable was $0.2 million at December 31, 2014 and will be expensed over a weighted-average period of less than one year. Additionally, there were 75,080 RSUs outstanding at December 31, 2014 that had vested but had not yet been paid out because the payout date had been deferred by the holder. | ||||||||||||||||||||||||
Long-term incentive plans | ||||||||||||||||||||||||
We maintain a long-term incentive plan for certain of our field employees that provides awards based on the achievement of stated performance targets over a three-year period. Awards are earned each year in the form of share units that are paid out in cash at the end of the performance period based upon the number of share units earned times the stock price at the end of the performance period. Accordingly, the liability associated with the awards is adjusted each reporting period based on movements in the stock price and totaled $9.5 million and $12.6 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
We also maintain a long-term performance award plan for senior management that provides awards based on the achievement of stated performance targets over a three-year period. Awards are earned based on our cumulative performance over the performance period and are stated in dollars but settled in common shares based on the stock price at the end of the performance period. If the stock price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We recognize expense for these awards based on the probability of achievement of the stated performance targets. The liability for these awards totaled $26.2 million and $14.3 million at December 31, 2014 and 2013, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income taxes | Income taxes | |||||||||||
Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit) | ||||||||||||
Federal | $ | 5,619 | $ | 5,725 | $ | (8,523 | ) | |||||
State and other | (13,968 | ) | (1,596 | ) | (14,068 | ) | ||||||
$ | (8,349 | ) | $ | 4,129 | $ | (22,591 | ) | |||||
Deferred provision (benefit) | ||||||||||||
Federal | $ | 232,969 | $ | (1,833,580 | ) | $ | — | |||||
State and other | (9,200 | ) | (262,843 | ) | — | |||||||
$ | 223,769 | $ | (2,096,423 | ) | $ | — | ||||||
Income tax expense (benefit) | $ | 215,420 | $ | (2,092,294 | ) | $ | (22,591 | ) | ||||
The following table reconciles the statutory federal income tax rate to the effective income tax rate: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes at federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of state and local income taxes, net of federal tax | 3 | 4 | 3 | |||||||||
Deferred tax asset valuation allowance | (6.6 | ) | (438.0 | ) | (37.7 | ) | ||||||
Tax contingencies | (1.4 | ) | 0.3 | (10.6 | ) | |||||||
Other | 1.2 | 2.3 | (2.0 | ) | ||||||||
Effective rate | 31.2 | % | (396.4 | )% | (12.3 | )% | ||||||
Our effective tax rate is affected by a number of factors, the most significant of which are the valuation allowance related to our deferred tax assets, changes in tax laws or other circumstances that impact the value of our deferred tax assets, and changes in our unrecognized tax benefits. Due to the effects of these factors, our effective tax rates in 2014, 2013, and 2012 are not correlated to the amount of our income before income taxes. The income tax expense for 2014 reflects a reversal of a portion of our valuation allowance, primarily related to certain of our state deferred tax assets, along with the favorable resolution of certain federal and state income tax matters. The income tax benefit for 2013 resulted from the reversal of substantially all of the valuation allowance related to our federal deferred tax assets and certain of our state deferred tax assets, while the income tax benefit for 2012 resulted primarily from the favorable resolution of certain federal and state income tax matters. | ||||||||||||
Deferred tax assets and liabilities reflect temporary differences arising from the different treatment of items for tax and accounting purposes. Components of our net deferred tax asset are as follows ($000’s omitted): | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Non-deductible reserves and other | $ | 445,128 | $ | 475,730 | ||||||||
Inventory valuation reserves | 599,763 | 770,566 | ||||||||||
Net operating loss ("NOL") carryforwards: | ||||||||||||
Federal | 515,568 | 726,398 | ||||||||||
State | 257,738 | 292,195 | ||||||||||
Alternative minimum tax credits | 34,812 | 28,683 | ||||||||||
Energy credit and charitable contribution carryforward | 27,858 | 39,978 | ||||||||||
1,880,867 | 2,333,550 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Capitalized items, including real estate basis differences, | (31,584 | ) | (39,449 | ) | ||||||||
deducted for tax, net | ||||||||||||
Trademarks and tradenames | (46,362 | ) | (50,047 | ) | ||||||||
(77,946 | ) | (89,496 | ) | |||||||||
Valuation allowance | (82,253 | ) | (157,300 | ) | ||||||||
Net deferred tax asset | $ | 1,720,668 | $ | 2,086,754 | ||||||||
Our gross federal NOL carryforward is approximately $1.5 billion and expires between 2028 and 2032. A portion of the federal NOL is subject to the provisions of Internal Revenue Code Section 382. We also have significant state NOLs in various jurisdictions. These state NOLs may generally be carried forward from 5 to 20 years, depending on the jurisdiction, and expire between 2014 and 2034. In addition, we have energy credit carryforwards expiring in 2026 to 2034 and alternative minimum tax credits, which can be carried forward indefinitely. | ||||||||||||
As a result of our merger with Centex in 2009, our ability to use certain of Centex’s pre-ownership change NOL carryforwards and built-in losses or deductions is limited by Section 382 of the Internal Revenue Code. Our Section 382 limitation is approximately $67.4 million per year for NOLs, losses realized on built-in loss assets that are sold within 60 months of the ownership change, and certain deductions. We do not believe that the Section 382 limitation will prevent the Company from using Centex’s pre-ownership change federal NOL carryforwards and built-in losses or deductions. | ||||||||||||
We evaluate our deferred tax assets each period to determine if a valuation allowance is required based on whether it is "more likely than not" that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods. We conduct our evaluation by considering all available positive and negative evidence. This evaluation considers, among other factors, historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. housing industry and broader economy. | ||||||||||||
In 2014, we recorded an income tax benefit of $45.6 million as the result of a reversal of valuation allowance related primarily to certain of our state deferred tax assets as the result of an increase in expected future taxable income in certain jurisdictions. At December 31, 2014, our remaining valuation allowance relates primarily to state net operating loss carryforwards that have not met the "more likely than not" realization threshold, primarily due to state related section 382 limitations. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. | ||||||||||||
In 2013, we recorded an income tax benefit of $2.1 billion as the result of a reversal of valuation allowance. Based on our evaluation through June 30, 2013, we had fully reserved our net deferred tax assets due to the uncertainty of their realization. One of the primary pieces of negative evidence we considered was the significant losses we incurred in recent years, including being in a three-year cumulative pre-tax loss position, which we exited in 2013. In the third quarter of 2013, we determined that the valuation allowance against substantially all of our federal deferred tax assets and a significant portion of our state deferred tax assets was no longer required. Accordingly, we reversed $2.1 billion of valuation allowance in the third quarter. When a change in valuation allowance is recognized in an interim period, a portion of the valuation allowance to be reversed must be allocated to the remaining interim periods. Accordingly, an additional $73.7 million of the remaining valuation allowance reversed in the fourth quarter of 2013, which was offset by income tax expense based on fourth quarter earnings. | ||||||||||||
We conducted our evaluations by considering all available positive and negative evidence. The principal positive evidence that led to the reversal of the valuation allowance in 2013 included: (1) our emergence from a three-year cumulative loss in 2013; (2) the significant positive income we generated during 2012 and 2013, including seven consecutive quarters of pretax income as of December 31, 2013; (3) continued improvements in 2013 over recent years in other key operating metrics, including revenues, gross margin, and overhead leverage; (4) our forecasted future profitability; (5) improvement in our financial position; and (6) significant evidence that conditions in the U.S. housing industry are more favorable than in recent years and our belief that conditions will continue to be favorable over the long-term. Even if industry conditions weaken from current levels, we believe we will be able to adjust our operations to sustain long-term profitability. | ||||||||||||
Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. At December 31, 2014, we had $32.9 million of gross unrecognized tax benefits, of which $21.4 million (net of federal benefit) would impact the effective tax rate if recognized. At December 31, 2013, we had $173.3 million of gross unrecognized tax benefits, of which $21.5 million would impact the effective rate if recognized. Income tax liabilities decreased from $206.0 million at December 31, 2013 to $48.7 million at December 31, 2014, primarily as the result of the resolution of certain income tax matters. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $4.1 million, excluding interest and penalties, primarily due to potential settlements. Additionally, we had accrued interest and penalties of $17.3 million and $33.1 million at December 31, 2014 and 2013, respectively. Our net tax-related interest and penalties totaled a benefit of $15.8 million and an expense of $3.0 million in 2014 and 2013, respectively. A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 173,310 | $ | 170,425 | $ | 171,863 | ||||||
Increases related to tax positions taken during a prior period | — | 12,877 | 8,782 | |||||||||
Decreases related to tax positions taken during a prior period | (133,883 | ) | (7,502 | ) | (9,373 | ) | ||||||
Increases related to tax positions taken during the current | 237 | 381 | 11,797 | |||||||||
period | ||||||||||||
Decreases related to settlements with taxing authorities | (6,753 | ) | (1,434 | ) | — | |||||||
Reductions as a result of a lapse of the applicable statute of | — | (1,437 | ) | (12,644 | ) | |||||||
limitations | ||||||||||||
Unrecognized tax benefits, end of period | $ | 32,911 | $ | 173,310 | $ | 170,425 | ||||||
We are currently under examination by the IRS and various state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The final outcome of these examinations is not yet determinable. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 2004 to 2014. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair value disclosures | Fair value disclosures | ||||||||||
ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy can be summarized as follows: | |||||||||||
Level 1 | Fair value determined based on quoted prices in active markets for identical assets or liabilities. | ||||||||||
Level 2 | Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. | ||||||||||
Level 3 | Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques | ||||||||||
Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): | |||||||||||
Financial Instrument | Fair Value | Fair Value | |||||||||
Hierarchy | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
Measured at fair value on a recurring basis: | |||||||||||
Residential mortgage loans available-for-sale | Level 2 | $ | 339,531 | $ | 287,933 | ||||||
Interest rate lock commitments | Level 2 | 4,248 | 3,139 | ||||||||
Forward contracts | Level 2 | (3,574 | ) | 4,340 | |||||||
Whole loan commitments | Level 2 | (588 | ) | 105 | |||||||
Measured at fair value on a non-recurring basis: | |||||||||||
House and land inventory | Level 3 | $ | 13,925 | $ | — | ||||||
Disclosed at fair value: | |||||||||||
Cash and equivalents (including restricted cash) | Level 1 | $ | 1,309,220 | $ | 1,653,044 | ||||||
Financial Services debt | Level 2 | 140,241 | 105,664 | ||||||||
Senior notes | Level 2 | 1,952,774 | 2,070,744 | ||||||||
Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. | |||||||||||
Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. | |||||||||||
The carrying amounts of cash and equivalents, Financial Services debt, and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. The carrying value of senior notes was $1.8 billion and $2.1 billion, at December 31, 2014 and 2013, respectively. |
Other_Assets_and_Accrued_and_O
Other Assets and Accrued and Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets and Accrued and Other Liabilities [Abstract] | ||||||||
Other assets and accrued and other liabilities | Other assets and accrued and other liabilities | |||||||
Other assets are presented below ($000’s omitted): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts and notes receivable: | ||||||||
Insurance receivables | $ | 60,598 | $ | 51,764 | ||||
Notes receivable | 30,699 | 32,944 | ||||||
Other receivables | 63,867 | 52,720 | ||||||
$ | 155,164 | $ | 137,428 | |||||
Prepaid expenses | 72,585 | 65,965 | ||||||
Deposits and pre-acquisition costs (Note 1) | 127,280 | 91,034 | ||||||
Property and equipment, net (Note 1) | 75,219 | 53,051 | ||||||
Income taxes receivable (Note 9) | 21,330 | 35,437 | ||||||
Other | 61,454 | 77,706 | ||||||
$ | 513,032 | $ | 460,621 | |||||
We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 12), municipalities, and vendors. In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. | ||||||||
Accrued and other liabilities are presented below ($000’s omitted): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Self-insurance liabilities (Note 12) | $ | 710,245 | $ | 668,100 | ||||
Loan origination liabilities (Note 12) | 58,222 | 124,956 | ||||||
Compensation-related | 142,586 | 171,686 | ||||||
Warranty (Note 12) | 65,389 | 63,992 | ||||||
Community development district obligations (Note 12) | 17,122 | 26,124 | ||||||
Liability for land, not owned, under option agreements (Note 1) | 30,186 | 24,024 | ||||||
Accrued interest | 20,446 | 22,283 | ||||||
Limited recourse notes payable | 22,255 | 7,521 | ||||||
Other | 277,323 | 269,064 | ||||||
$ | 1,343,774 | $ | 1,377,750 | |||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||
Leases | ||||||||||||
We lease certain property and equipment under non-cancelable operating leases. The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2014 are as follows ($000’s omitted): | ||||||||||||
Years Ending December 31, | ||||||||||||
2015 | $ | 28,744 | ||||||||||
2016 | 25,713 | |||||||||||
2017 | 18,817 | |||||||||||
2018 | 14,870 | |||||||||||
2019 | 12,846 | |||||||||||
Thereafter | 42,733 | |||||||||||
Total minimum lease payments (a) | $ | 143,723 | ||||||||||
(a) | Minimum payments have not been reduced by minimum sublease rentals of $5.3 million due in the future under non-cancelable subleases. | |||||||||||
Net rental expense for 2014, 2013, and 2012 was $25.3 million, $23.0 million, and $24.2 million, respectively. Certain leases contain renewal or purchase options and generally provide that we pay for insurance, taxes, and maintenance. | ||||||||||||
Loan origination liabilities | ||||||||||||
Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If a loan is determined to be faulty, we either repurchase the loans from the investors or reimburse the investors' losses (a “make-whole” payment). | ||||||||||||
Because we generally do not retain the servicing rights to the loans we originate, information regarding the current and historical performance, credit quality, and outstanding balances of such loans is limited. Estimating these loan origination liabilities is further complicated by uncertainties surrounding numerous external factors, such as various macroeconomic factors (including unemployment rates and changes in home prices), actions taken by third parties, including the parties servicing the loans, and the U.S. federal government in its dual capacity as regulator of the U.S. mortgage industry and conservator of the government-sponsored enterprises commonly known as Fannie Mae and Freddie Mac, which own or guarantee the majority of mortgage loans in the U.S. Most requests received to date relate to make-whole payments on loans that have been foreclosed. Requests undergo extensive analysis to confirm the exposure, attempt to cure the identified defect, and, when necessary, determine our liability. We establish liabilities for such anticipated losses based upon, among other things, the level of current unresolved repurchase requests, the volume of estimated probable future repurchase requests, our ability to cure the defects identified in the repurchase requests, and the severity of the estimated loss upon repurchase. Determining these estimates and the resulting liability requires a significant level of management judgment. | ||||||||||||
During 2014, we reduced our loan origination liabilities by $18.6 million based on settlements of various pending repurchase requests and current conditions. During 2012, we recorded $49.0 million of provisions for losses as a change in estimate primarily to reflect projected claim volumes in excess of previous estimates. Reserves provided and related adjustments are reflected in Financial Services expenses. Given the ongoing volatility in the mortgage industry, changes in values of underlying collateral over time, and other uncertainties regarding the ultimate resolution of these claims, actual costs could differ from our current estimates. | ||||||||||||
Changes in these liabilities were as follows ($000's omitted): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Liabilities, beginning of period | $ | 124,956 | $ | 164,280 | $ | 128,330 | ||||||
Reserves provided (released) | (18,604 | ) | — | 49,025 | ||||||||
Payments | (48,130 | ) | (39,324 | ) | (13,075 | ) | ||||||
Liabilities, end of period | $ | 58,222 | $ | 124,956 | $ | 164,280 | ||||||
The mortgage subsidiary of Centex also sold loans to a bank for inclusion in residential mortgage-backed securities (“RMBSs”) issued by the bank. In connection with these sales, Centex's mortgage subsidiary entered into agreements pursuant to which it may be required to indemnify the bank for losses incurred by investors in the RMBSs arising out of material errors or omissions in certain information provided by the mortgage subsidiary relating to the loans and loan origination process. In 2011, the bank notified us that it had been named defendant in two lawsuits alleging various violations of federal and state securities laws asserting that untrue statements of material fact were included in the registration statements used to market the sale of two RMBS transactions which included $162 million of loans originated by Centex's mortgage subsidiary. The plaintiffs seek unspecified compensatory and/or rescissory damages on behalf of persons who purchased the securities. Neither Centex's mortgage subsidiary nor the Company is named as a defendant in these actions. We cannot yet quantify Centex's mortgage subsidiary's potential liability as a result of these indemnification obligations. We do not believe, however, that these matters will have a material adverse impact on the results of operations, financial position, or cash flows of the Company. We are aware of six other RMBS transactions with similar indemnity provisions that include an aggregate $116 million of loans originated by Centex's mortgage subsidiary, and we are not aware of any current or threatened legal proceedings regarding those transactions. | ||||||||||||
Community development and other special district obligations | ||||||||||||
A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period during which we are the landowner of the applicable parcels. However, in certain limited instances we record a liability for future assessments. At December 31, 2014 and 2013, we had $17.1 million and $26.1 million, respectively, in accrued liabilities for outstanding CDD obligations. | ||||||||||||
Letters of credit and surety bonds | ||||||||||||
In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $212.1 million and $1.0 billion, respectively, at December 31, 2014, and $183.1 million and $958.3 million, respectively, at December 31, 2013. In the event any such letter of credit or surety bonds are called, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be called. Our surety bonds generally do not have stated expiration dates; rather we are released from the surety bonds as the underlying contractual performance is completed. Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed. | ||||||||||||
Litigation and regulatory matters | ||||||||||||
We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. | ||||||||||||
We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. | ||||||||||||
During 2013, we settled a number of claims related to a previously completed luxury community in a market we have since exited. The claims related to a contractual dispute with certain homeowners. As a result of these settlements, we recorded charges of $41.2 million during 2013. | ||||||||||||
Allowance for warranties | ||||||||||||
Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record liabilities in the amount of such costs at the time product revenue is recognized. Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the cost per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Warranty liabilities, beginning of period | $ | 63,992 | $ | 64,098 | $ | 68,025 | ||||||
Reserves provided | 51,348 | 49,399 | 45,705 | |||||||||
Payments | (47,968 | ) | (44,925 | ) | (45,365 | ) | ||||||
Other adjustments | (1,983 | ) | (4,580 | ) | (4,267 | ) | ||||||
Warranty liabilities, end of period | $ | 65,389 | $ | 63,992 | $ | 64,098 | ||||||
Self-insured risks | ||||||||||||
We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits. | ||||||||||||
Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require companies to maintain significant per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program provided by the Company. Policies issued by the captive insurance subsidiaries represent self-insurance of these risks by the Company. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. Our insurance coverage requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. | ||||||||||||
At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. These estimates comprise a significant portion of our liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in claims reporting and resolution patterns, third party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are reported and resolved over an extended period often exceeding ten years. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. | ||||||||||||
Our recorded reserves for all such claims totaled $710.2 million and $668.1 million at December 31, 2014 and 2013, respectively, the vast majority of which relates to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 72% and 78% of the total general liability reserves at December 31, 2014 and 2013, respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses. | ||||||||||||
During 2014, we recorded a change in estimate increasing general liability insurance reserves by $69.3 million, which is reflected in "Reserves provided" in the below table. Such additional reserves were primarily driven by estimated costs associated with siding repairs in certain previously completed communities that, in turn, impacted actuarial estimates for potential future claims. Adjustments to reserves are recorded in the period in which the change in estimate occurs. Changes in the frequency and timing of reported claims and estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Additionally, the amount of insurance coverage available for each policy period also impacts our recorded reserves. Because of the inherent uncertainty in estimating future losses related and the timing of such losses related to these claims, actual costs could differ significantly from estimated costs. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 668,100 | $ | 721,284 | $ | 739,029 | ||||||
Reserves provided | 141,790 | 64,737 | 54,262 | |||||||||
Payments | (99,645 | ) | (117,921 | ) | (72,007 | ) | ||||||
Balance, end of period | $ | 710,245 | $ | 668,100 | $ | 721,284 | ||||||
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ||||||||||||||||||||
Supplemental Guarantor information | Supplemental Guarantor information | |||||||||||||||||||
All of our senior notes are guaranteed jointly and severally on a senior basis by each of the Company's wholly-owned Homebuilding subsidiaries and certain other wholly-owned subsidiaries (collectively, the “Guarantors”). Such guaranties are full and unconditional. Supplemental consolidating financial information of the Company, including such information for the Guarantors, is presented below. Investments in subsidiaries are presented using the equity method of accounting. Separate financial statements of the Guarantors are not provided as the consolidating financial information contained herein provides a more meaningful disclosure to allow investors to determine the nature of the assets held by, and the operations of, the combined groups. | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
DECEMBER 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and equivalents | $ | 7,454 | $ | 1,157,307 | $ | 128,101 | $ | — | $ | 1,292,862 | ||||||||||
Restricted cash | 3,710 | 1,513 | 11,135 | — | 16,358 | |||||||||||||||
House and land inventory | — | 4,391,445 | 655 | — | 4,392,100 | |||||||||||||||
Land held for sale | — | 100,156 | 1,034 | — | 101,190 | |||||||||||||||
Land, not owned, under option | — | 30,186 | — | — | 30,186 | |||||||||||||||
agreements | ||||||||||||||||||||
Residential mortgage loans available- | — | — | 339,531 | — | 339,531 | |||||||||||||||
for-sale | ||||||||||||||||||||
Securities purchased under agreements to resell | 22,000 | — | (22,000 | ) | — | — | ||||||||||||||
Investments in unconsolidated entities | 74 | 36,126 | 4,168 | — | 40,368 | |||||||||||||||
Other assets | 34,214 | 421,145 | 57,673 | — | 513,032 | |||||||||||||||
Intangible assets | — | 123,115 | — | — | 123,115 | |||||||||||||||
Deferred tax assets, net | 1,712,853 | 15 | 7,800 | — | 1,720,668 | |||||||||||||||
Investments in subsidiaries and | 4,963,831 | 967,032 | 6,359,441 | (12,290,304 | ) | — | ||||||||||||||
intercompany accounts, net | ||||||||||||||||||||
$ | 6,744,136 | $ | 7,228,040 | $ | 6,887,538 | $ | (12,290,304 | ) | $ | 8,569,410 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable, customer deposits, | $ | 71,874 | $ | 1,514,954 | $ | 170,104 | $ | — | $ | 1,756,932 | ||||||||||
accrued and other liabilities | ||||||||||||||||||||
Income tax liabilities | 48,747 | (25 | ) | — | — | 48,722 | ||||||||||||||
Financial Services debt | — | — | 140,241 | — | 140,241 | |||||||||||||||
Senior notes | 1,818,561 | — | — | — | 1,818,561 | |||||||||||||||
Total liabilities | 1,939,182 | 1,514,929 | 310,345 | — | 3,764,456 | |||||||||||||||
Total shareholders’ equity | 4,804,954 | 5,713,111 | 6,577,193 | (12,290,304 | ) | 4,804,954 | ||||||||||||||
$ | 6,744,136 | $ | 7,228,040 | $ | 6,887,538 | $ | (12,290,304 | ) | $ | 8,569,410 | ||||||||||
CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
DECEMBER 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and equivalents | $ | 262,364 | $ | 1,188,999 | $ | 128,966 | $ | — | $ | 1,580,329 | ||||||||||
Restricted cash | 58,699 | 2,635 | 11,381 | — | 72,715 | |||||||||||||||
House and land inventory | — | 3,977,851 | 710 | — | 3,978,561 | |||||||||||||||
Land held for sale | — | 60,701 | 1,034 | — | 61,735 | |||||||||||||||
Land, not owned, under option | — | 24,024 | — | — | 24,024 | |||||||||||||||
agreements | ||||||||||||||||||||
Residential mortgage loans available- | — | — | 287,933 | — | 287,933 | |||||||||||||||
for-sale | ||||||||||||||||||||
Investments in unconsolidated entities | 68 | 41,319 | 3,936 | — | 45,323 | |||||||||||||||
Other assets | 50,251 | 359,228 | 51,142 | — | 460,621 | |||||||||||||||
Intangible assets | — | 136,148 | — | — | 136,148 | |||||||||||||||
Deferred tax assets, net | 2,074,137 | 17 | 12,600 | — | 2,086,754 | |||||||||||||||
Investments in subsidiaries and | 4,532,950 | (16,513 | ) | 5,939,784 | (10,456,221 | ) | — | |||||||||||||
intercompany accounts, net | ||||||||||||||||||||
$ | 6,978,469 | $ | 5,774,409 | $ | 6,437,486 | $ | (10,456,221 | ) | $ | 8,734,143 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable, customer deposits, | $ | 65,334 | $ | 1,413,752 | $ | 236,258 | $ | — | $ | 1,715,344 | ||||||||||
accrued and other liabilities | ||||||||||||||||||||
Income tax liabilities | 206,015 | — | — | — | 206,015 | |||||||||||||||
Financial Services debt | — | — | 105,664 | — | 105,664 | |||||||||||||||
Senior notes | 2,058,168 | — | — | — | 2,058,168 | |||||||||||||||
Total liabilities | 2,329,517 | 1,413,752 | 341,922 | — | 4,085,191 | |||||||||||||||
Total shareholders’ equity | 4,648,952 | 4,360,657 | 6,095,564 | (10,456,221 | ) | 4,648,952 | ||||||||||||||
$ | 6,978,469 | $ | 5,774,409 | $ | 6,437,486 | $ | (10,456,221 | ) | $ | 8,734,143 | ||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 5,662,171 | $ | — | $ | — | $ | 5,662,171 | ||||||||||
Land sale revenues | — | 34,554 | — | — | 34,554 | |||||||||||||||
— | 5,696,725 | — | — | 5,696,725 | ||||||||||||||||
Financial Services | — | 889 | 124,749 | — | 125,638 | |||||||||||||||
— | 5,697,614 | 124,749 | — | 5,822,363 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 4,343,249 | — | — | 4,343,249 | |||||||||||||||
Land sale cost of revenues | — | 23,748 | — | — | 23,748 | |||||||||||||||
— | 4,366,997 | — | — | 4,366,997 | ||||||||||||||||
Financial Services expenses | 784 | (130 | ) | 70,585 | — | 71,239 | ||||||||||||||
Selling, general, and administrative | — | 661,308 | 6,507 | — | 667,815 | |||||||||||||||
expenses | ||||||||||||||||||||
Other expense, net | 8,521 | 29,273 | 951 | — | 38,745 | |||||||||||||||
Interest income | (337 | ) | (4,244 | ) | (51 | ) | — | (4,632 | ) | |||||||||||
Interest expense | 849 | — | — | — | 849 | |||||||||||||||
Intercompany interest | 9,800 | (90 | ) | (9,710 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | (7 | ) | (8,182 | ) | (219 | ) | — | (8,408 | ) | |||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (19,610 | ) | 652,682 | 56,686 | — | 689,758 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | (7,473 | ) | 201,332 | 21,561 | — | 215,420 | ||||||||||||||
Income (loss) before equity in income | (12,137 | ) | 451,350 | 35,125 | — | 474,338 | ||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 486,475 | 38,534 | 403,505 | (928,514 | ) | — | ||||||||||||||
Net income (loss) | 474,338 | 489,884 | 438,630 | (928,514 | ) | 474,338 | ||||||||||||||
Other comprehensive income (loss) | 105 | — | — | — | 105 | |||||||||||||||
Comprehensive income (loss) | $ | 474,443 | $ | 489,884 | $ | 438,630 | $ | (928,514 | ) | $ | 474,443 | |||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 5,424,309 | $ | — | $ | — | $ | 5,424,309 | ||||||||||
Land sale revenues | — | 114,335 | — | — | 114,335 | |||||||||||||||
— | 5,538,644 | — | — | 5,538,644 | ||||||||||||||||
Financial Services | — | 2,353 | 138,598 | — | 140,951 | |||||||||||||||
— | 5,540,997 | 138,598 | — | 5,679,595 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 4,310,528 | — | — | 4,310,528 | |||||||||||||||
Land sale cost of revenues | — | 104,426 | — | — | 104,426 | |||||||||||||||
— | 4,414,954 | — | — | 4,414,954 | ||||||||||||||||
Financial Services expenses | 832 | 970 | 90,577 | — | 92,379 | |||||||||||||||
Selling, general, and administrative | — | 573,904 | (5,404 | ) | — | 568,500 | ||||||||||||||
expenses | ||||||||||||||||||||
Other expense, net | 26,870 | 49,681 | 4,202 | — | 80,753 | |||||||||||||||
Interest income | (349 | ) | (3,954 | ) | (92 | ) | — | (4,395 | ) | |||||||||||
Interest expense | 712 | — | — | — | 712 | |||||||||||||||
Intercompany interest | 17,518 | (8,260 | ) | (9,258 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | 1,461 | (1,783 | ) | (808 | ) | — | (1,130 | ) | ||||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (47,044 | ) | 515,485 | 59,381 | — | 527,822 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | (2,113,827 | ) | (799 | ) | 22,332 | — | (2,092,294 | ) | ||||||||||||
Income (loss) before equity in income | 2,066,783 | 516,284 | 37,049 | — | 2,620,116 | |||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 553,333 | 35,086 | 485,400 | (1,073,819 | ) | — | ||||||||||||||
Net income (loss) | 2,620,116 | 551,370 | 522,449 | (1,073,819 | ) | 2,620,116 | ||||||||||||||
Other comprehensive income (loss) | 197 | — | — | — | 197 | |||||||||||||||
Comprehensive income (loss) | $ | 2,620,313 | $ | 551,370 | $ | 522,449 | $ | (1,073,819 | ) | $ | 2,620,313 | |||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 4,552,412 | $ | — | $ | — | $ | 4,552,412 | ||||||||||
Land sale revenues | — | 106,698 | — | — | 106,698 | |||||||||||||||
— | 4,659,110 | — | — | 4,659,110 | ||||||||||||||||
Financial Services | — | 2,082 | 158,806 | — | 160,888 | |||||||||||||||
— | 4,661,192 | 158,806 | — | 4,819,998 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 3,833,451 | — | — | 3,833,451 | |||||||||||||||
Land sale cost of revenues | — | 94,880 | — | — | 94,880 | |||||||||||||||
— | 3,928,331 | — | — | 3,928,331 | ||||||||||||||||
Financial Services expenses | 379 | 567 | 134,565 | — | 135,511 | |||||||||||||||
Selling, general, and administrative | — | 515,283 | (826 | ) | — | 514,457 | ||||||||||||||
expenses | ||||||||||||||||||||
Other expense (income), net | 32,027 | 33,506 | 765 | — | 66,298 | |||||||||||||||
Interest income | (229 | ) | (4,597 | ) | (87 | ) | — | (4,913 | ) | |||||||||||
Interest expense | 819 | — | — | — | 819 | |||||||||||||||
Intercompany interest | 587,281 | (573,852 | ) | (13,429 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | (1 | ) | (3,555 | ) | (503 | ) | — | (4,059 | ) | |||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (620,276 | ) | 765,509 | 38,321 | — | 183,554 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | 426 | (22,299 | ) | (718 | ) | — | (22,591 | ) | ||||||||||||
Income (loss) before equity in income | (620,702 | ) | 787,808 | 39,039 | — | 206,145 | ||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 826,847 | 34,596 | 476,806 | (1,338,249 | ) | — | ||||||||||||||
Net income (loss) | 206,145 | 822,404 | 515,845 | (1,338,249 | ) | 206,145 | ||||||||||||||
Other comprehensive income (loss) | 314 | — | — | — | 314 | |||||||||||||||
Comprehensive income (loss) | $ | 206,459 | $ | 822,404 | $ | 515,845 | $ | (1,338,249 | ) | $ | 206,459 | |||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | PulteGroup, Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | 206,485 | $ | 175,415 | $ | (72,651 | ) | $ | — | $ | 309,249 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 8,161 | (4 | ) | — | 8,157 | ||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net change in loans held for investment | — | — | 335 | — | 335 | |||||||||||||||
Change in restricted cash related to | 54,989 | — | — | — | 54,989 | |||||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 113 | — | — | 113 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (44,956 | ) | (3,834 | ) | — | (48,790 | ) | ||||||||||||
Cash used for business acquisition | — | (82,419 | ) | — | — | (82,419 | ) | |||||||||||||
Net cash provided by (used in) investing | 54,989 | (119,101 | ) | (3,512 | ) | — | (67,624 | ) | ||||||||||||
activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings | — | — | 34,577 | — | 34,577 | |||||||||||||||
(repayments) | ||||||||||||||||||||
Other borrowings (repayments) | (249,765 | ) | (866 | ) | — | — | (250,631 | ) | ||||||||||||
Stock option exercises | 15,627 | — | — | — | 15,627 | |||||||||||||||
Stock repurchases | (253,019 | ) | — | — | — | (253,019 | ) | |||||||||||||
Dividends paid | (75,646 | ) | — | — | — | (75,646 | ) | |||||||||||||
Intercompany activities, net | 46,419 | (87,140 | ) | 40,721 | — | — | ||||||||||||||
Net cash provided by (used in) | (516,384 | ) | (88,006 | ) | 75,298 | — | (529,092 | ) | ||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | (254,910 | ) | (31,692 | ) | (865 | ) | — | (287,467 | ) | |||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of year | 262,364 | 1,188,999 | 128,966 | — | 1,580,329 | |||||||||||||||
Cash and equivalents at end of year | $ | 7,454 | $ | 1,157,307 | $ | 128,101 | $ | — | $ | 1,292,862 | ||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | PulteGroup, Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | (41 | ) | $ | 865,267 | $ | 15,910 | $ | — | $ | 881,136 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 1,001 | — | — | 1,001 | |||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | (1,677 | ) | — | — | (1,677 | ) | |||||||||||||
Net change in loans held for investment | — | — | (12,265 | ) | — | (12,265 | ) | |||||||||||||
Change in restricted cash related to | (4,152 | ) | — | — | — | (4,152 | ) | |||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 15 | — | — | 15 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (26,472 | ) | (2,427 | ) | — | (28,899 | ) | ||||||||||||
Net cash provided by (used in) investing | (4,152 | ) | (27,133 | ) | (14,692 | ) | — | (45,977 | ) | |||||||||||
activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings | — | — | (33,131 | ) | (33,131 | ) | ||||||||||||||
(repayments) | ||||||||||||||||||||
Other borrowings (repayments) | (485,048 | ) | 5,221 | (479,827 | ) | |||||||||||||||
Stock option exercises | 19,411 | — | — | — | 19,411 | |||||||||||||||
Stock repurchases | (127,661 | ) | — | — | — | (127,661 | ) | |||||||||||||
Dividends paid | (38,382 | ) | — | — | — | (38,382 | ) | |||||||||||||
Intercompany activities, net | 752,069 | (718,299 | ) | (33,770 | ) | — | — | |||||||||||||
Net cash provided by (used in) | 120,389 | (713,078 | ) | (66,901 | ) | — | (659,590 | ) | ||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | 116,196 | 125,056 | (65,683 | ) | — | 175,569 | ||||||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of year | 146,168 | 1,063,943 | 194,649 | — | 1,404,760 | |||||||||||||||
Cash and equivalents at end of year | $ | 262,364 | $ | 1,188,999 | $ | 128,966 | $ | — | $ | 1,580,329 | ||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | (582,762 | ) | $ | 1,332,342 | $ | 10,560 | $ | — | $ | 760,140 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 3,029 | — | — | 3,029 | |||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | (16,456 | ) | — | — | (16,456 | ) | |||||||||||||
Net change in loans held for | — | — | 836 | — | 836 | |||||||||||||||
investment | ||||||||||||||||||||
Change in restricted cash related to | 28,653 | — | — | — | 28,653 | |||||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 7,586 | — | — | 7,586 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (10,831 | ) | (3,111 | ) | — | (13,942 | ) | ||||||||||||
Net cash provided by (used in) | 28,653 | (16,672 | ) | (2,275 | ) | — | 9,706 | |||||||||||||
investing activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings (repayments) | — | — | 138,795 | — | 138,795 | |||||||||||||||
Other borrowings (repayments) | (620,700 | ) | 1,900 | — | — | (618,800 | ) | |||||||||||||
Stock option exercises | 32,809 | — | — | — | 32,809 | |||||||||||||||
Stock repurchases | (961 | ) | — | — | — | (961 | ) | |||||||||||||
Intercompany activities, net | 1,169,842 | (1,129,188 | ) | (40,654 | ) | — | — | |||||||||||||
Net cash provided by (used in) | 580,990 | (1,127,288 | ) | 98,141 | — | (448,157 | ) | |||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | 26,881 | 188,382 | 106,426 | — | 321,689 | |||||||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of | 119,287 | 875,561 | 88,223 | — | 1,083,071 | |||||||||||||||
year | ||||||||||||||||||||
Cash and equivalents at end of year | $ | 146,168 | $ | 1,063,943 | $ | 194,649 | $ | — | $ | 1,404,760 | ||||||||||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly results (unaudited) | Quarterly results (unaudited) | |||||||||||||||||||
UNAUDITED QUARTERLY INFORMATION | ||||||||||||||||||||
(000’s omitted, except per share data) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total (a) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2014 | ||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||
Revenues | $ | 1,093,999 | $ | 1,254,989 | $ | 1,561,273 | $ | 1,786,464 | $ | 5,696,725 | ||||||||||
Cost of revenues | 833,614 | 959,524 | 1,198,908 | 1,374,951 | 4,366,997 | |||||||||||||||
Income before income taxes (b) | 108,435 | 58,573 | 214,051 | 254,118 | 635,177 | |||||||||||||||
Financial Services: | ||||||||||||||||||||
Revenues | $ | 24,895 | $ | 31,198 | $ | 33,452 | $ | 36,093 | $ | 125,638 | ||||||||||
Income before income taxes (c) | 21,594 | 9,108 | 10,877 | 13,002 | 54,581 | |||||||||||||||
Consolidated results: | ||||||||||||||||||||
Revenues | $ | 1,118,894 | $ | 1,286,187 | $ | 1,594,725 | $ | 1,822,557 | $ | 5,822,363 | ||||||||||
Income before income taxes | 130,029 | 67,681 | 224,928 | 267,120 | 689,758 | |||||||||||||||
Income tax expense (d) | 55,210 | 25,801 | 84,383 | 50,025 | 215,420 | |||||||||||||||
Net income | $ | 74,819 | $ | 41,880 | $ | 140,545 | $ | 217,095 | $ | 474,338 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.11 | $ | 0.37 | $ | 0.58 | $ | 1.27 | ||||||||||
Diluted | $ | 0.19 | $ | 0.11 | $ | 0.37 | $ | 0.58 | $ | 1.26 | ||||||||||
Number of shares used in calculation: | ||||||||||||||||||||
Basic | 383,991 | 376,072 | 373,531 | 369,533 | 370,377 | |||||||||||||||
Effect of dilutive securities | 3,815 | 3,592 | 3,761 | 3,734 | 3,725 | |||||||||||||||
Diluted | 387,806 | 379,664 | 377,292 | 373,267 | 374,102 | |||||||||||||||
(a) | Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. | |||||||||||||||||||
(b) | Homebuilding income before income taxes includes losses on debt retirement of $8.6 million in the 1st Quarter; charges of $84.5 million to increase general liability insurance reserves in the 2nd Quarter; and costs associated with the relocation of our corporate headquarters of $8.7 million, offset by favorable adjustments of $15.2 million to decrease general liability insurance reserves in the 4th Quarter. | |||||||||||||||||||
(c) | Financial Services expenses in the 1st Quarter includes a reduction in loan origination liabilities totaling $18.6 million. | |||||||||||||||||||
(d) | Income tax expense in the 4th Quarter includes a benefit of $49.6 million related to the resolution of certain tax matters and the reversal of valuation allowance related to certain state deferred tax assets. | |||||||||||||||||||
UNAUDITED QUARTERLY INFORMATION | ||||||||||||||||||||
(000’s omitted, except per share data) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total (a) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013 | ||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||
Revenues | $ | 1,125,883 | $ | 1,240,060 | $ | 1,547,742 | $ | 1,624,959 | $ | 5,538,644 | ||||||||||
Cost of revenues | 923,488 | 1,011,528 | 1,230,070 | 1,249,868 | 4,414,954 | |||||||||||||||
Income before income taxes (b) | 68,037 | 21,971 | 163,594 | 225,511 | 479,113 | |||||||||||||||
Financial Services: | ||||||||||||||||||||
Revenues | $ | 36,873 | $ | 39,362 | $ | 34,336 | $ | 30,380 | $ | 140,951 | ||||||||||
Income before income taxes | 14,313 | 16,359 | 11,128 | 6,909 | 48,709 | |||||||||||||||
Consolidated results: | ||||||||||||||||||||
Revenues | $ | 1,162,756 | $ | 1,279,422 | $ | 1,582,078 | $ | 1,655,339 | $ | 5,679,595 | ||||||||||
Income before income taxes | 82,350 | 38,330 | 174,722 | 232,420 | 527,822 | |||||||||||||||
Income tax expense (benefit) (c) | 588 | 1,913 | (2,107,162 | ) | 12,367 | (2,092,294 | ) | |||||||||||||
Net income | $ | 81,762 | $ | 36,417 | $ | 2,281,884 | $ | 220,053 | $ | 2,620,116 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.09 | $ | 5.92 | $ | 0.58 | $ | 6.79 | ||||||||||
Diluted | $ | 0.21 | $ | 0.09 | $ | 5.87 | $ | 0.57 | $ | 6.72 | ||||||||||
Number of shares used in calculation: | ||||||||||||||||||||
Basic | 384,228 | 385,389 | 382,883 | 379,879 | 383,077 | |||||||||||||||
Effect of dilutive securities | 6,093 | 5,791 | 3,220 | 3,845 | 3,789 | |||||||||||||||
Diluted | 390,321 | 391,180 | 386,103 | 383,724 | 386,866 | |||||||||||||||
(a) | Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. | |||||||||||||||||||
(b) | Homebuilding income before income taxes in the 2nd Quarter includes charges totaling $66.6 million consisting of losses on debt retirements, costs associated with the relocation of our corporate headquarters, and a contractual dispute related to a previously completed luxury community. | |||||||||||||||||||
(c) | Income tax expense (benefit) includes a benefit of $2.1 billion and $73.7 million in the 3rd Quarter and 4th Quarter, respectively, related to the reversal of substantially all of the valuation allowance previously recorded against our deferred tax assets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. |
Use of Estimates Policy | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Subsequent Events Policy | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). |
Cash and Cash Equivalents Policy | Cash and equivalents |
Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2014 and 2013 also included $5.1 million and $3.7 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. | |
Restricted cash | |
We maintain certain cash balances that are restricted as to their use. Restricted cash includes deposits maintained with financial institutions under cash-collateralized letter of credit agreements (see Note 6) as well as certain other accounts with restrictions, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. | |
Investments in Unconsolidated Entities Policy | We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. |
We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities in the Consolidated Statements of Operations. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 5. | |
Intangible Assets Policy | Intangible assets consist of tradenames acquired in connection with the 2009 acquisition of Centex Corporation ("Centex") and the 2001 acquisition of Del Webb Corporation ("Del Webb"). These intangible assets were valued at the acquisition date and are being amortized over 20-year lives. The acquired cost and accumulated amortization of our intangible assets were $259.0 million and $135.9 million, respectively, at December 31, 2014, and $259.0 million and $122.9 million, respectively, at December 31, 2013. Amortization expense totaled $13.0 million in 2014, and $13.1 million in 2013 and 2012, and is expected to be $12.9 million in each of the next five years. |
The ultimate realization of these assets is dependent upon estimates of future earnings and benefits that we expect to generate from their use. If we determine that the carrying values of intangible assets may not be recoverable based upon the existence of one or more indicators of impairment, we use a projected undiscounted cash flow method to determine if impairment exists. If the carrying values of the intangible assets exceed the expected undiscounted cash flows, then we measure impairment as the difference between the fair value of the asset and the recorded carrying value. | |
Property and Equipment, Net and Depreciation Policy | Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: model home furniture - two years; office furniture and equipment - three to ten years; and leasehold improvements - life of the lease. Property and equipment are included in other assets |
Advertising Costs Policy | Advertising costs are expensed as incurred |
Earnings Per Share Policy | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted stock and restricted stock units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our earnings per share excluded 6.6 million, 9.6 million, and 16.6 million stock options, unvested restricted stock and restricted stock units, and other potentially dilutive instruments in 2014, 2013, and 2012, respectively. |
In accordance with ASC 260 "Earnings Per Share" ("ASC 260"), the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The Company's outstanding restricted stock awards, restricted stock units, and deferred shares are considered participating securities. | |
Stock-based Compensation Policy | We measure compensation cost for restricted stock and restricted stock units at fair value on the grant date. Fair value is determined based on the quoted price of our common stock on the grant date. We recognize compensation expense for restricted stock and restricted stock units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 8. |
Income Taxes Policy | The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on the consolidated results of operations or financial position. |
Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740, “Income Taxes” (“ASC 740”), which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including changes in facts or circumstances, changes in law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 9. | |
Homebuilding Revenue Recognition Policy | Homebuilding revenue and related profit are generally recognized when title to and possession of the property are transferred to the buyer. In situations where the buyer’s financing is originated by Pulte Mortgage and the buyer has not made an adequate initial or continuing investment, the profit on such sale is deferred until the sale of the related mortgage loan to a third-party investor has been completed. If there is a loss on the sale of the property, the loss on such sale is recognized at the time of closing. |
Sales Incentives Policy | When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. |
Inventory Policy | Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. |
We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. | |
Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and commissions and closing costs applicable to the home. The construction cost of the home includes amounts paid through the closing date of the home, plus an appropriate accrual for costs incurred but not yet paid, based on an analysis of budgeted construction costs. This accrual is reviewed for accuracy based on actual payments made after closing compared with the amount accrued, and adjustments are made if needed. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. | |
We record valuation adjustments on land inventory when events and circumstances indicate that the related community may be impaired and when the cash flows estimated to be generated by the community are less than its carrying amount. Such indicators include gross margin or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community. Impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community. Our evaluations for impairments are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. See Note 3. | |
Land Held for Sale Policy | We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 3. |
Land Option Agreements Policy | We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 3. |
If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2014 or December 31, 2013 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. Separately, certain land option agreements represent financing arrangements due to the remaining purchase price under the land option agreements, in the event we exercise the purchase rights under the agreements, even though we generally have no obligation to pay these future amounts. As a result, we recorded $30.2 million and $24.0 million at December 31, 2014 and December 31, 2013, respectively, to land, not owned, under option agreements with a corresponding increase to accrued and other liabilities. | |
Start-up Costs Policy | Costs and expenses associated with opening new communities are expensed to selling, general, and administrative expenses when incurred. |
Allowance for Warranties Policy | Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time the product revenue is recognized. |
Self-insured Risks Policy | We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time product revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 12. |
Residential Mortgage Loans Available for Sale Policy | Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 12 for discussion of the risks retained related to mortgage loan originations. |
Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. | |
Mortgage Servicing Rights Policy | We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. |
Loans Held for Investment Policy | We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are carried at cost and are reviewed for impairment when recoverability becomes doubtful. Loans held for investment are included in other assets |
Interest Income on Mortgage Loans Policy | Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $7.2 million, $7.5 million, and $6.0 million in 2014, 2013, and 2012, respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. |
Mortgage Servicing, Origination, and Commitment Fees Policy | Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance, or a contracted set fee in the case of certain sub-servicing arrangements, and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Loan origination costs related to residential mortgage loans available-for-sale are recognized as incurred in Financial Services expenses while the associated mortgage origination fees are recognized in Financial Services revenues as earned, generally upon loan closing. |
Title Services Policy | Revenues associated with our title operations are recognized within Financial Services revenues as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. |
Derivative Instruments and Hedging Activities Policy | We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). In order to reduce these risks, we use other derivative financial instruments, principally cash forward placement contracts on mortgage-backed securities and whole loan investor commitments, to economically hedge the interest rate lock commitment. We enter into these derivative financial instruments based upon our portfolio of interest rate lock commitments and closed loans. We do not enter into any derivative financial instruments for trading purposes. |
At December 31, 2014 and 2013, we had aggregate interest rate lock commitments of $146.1 million and $175.7 million, respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. | |
Forward contracts on mortgage-backed securities are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price that may be settled in cash, by offsetting the position, or through the delivery of the financial instrument. Forward contracts on mortgage-backed securities are the predominant derivative 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 sold to an investor. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. At December 31, 2014 and 2013, we had unexpired forward contracts of $371.0 million and $381.5 million, respectively, and whole loan investor commitments of $63.5 million and $31.7 million, respectively. Changes in the fair value of interest rate lock commitments and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. | |
There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 75 days. |
Inventory_And_Land_Held_For_Sa1
Inventory And Land Held For Sale (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |
Inventory, Interest Capitalization Policy | We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. |
Impairment of Land Held for Sale Policy | We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures Fair Value Disclosures (Policies) (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments Policy | Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. |
Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. | |
The carrying amounts of cash and equivalents, Financial Services debt, and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. |
Other_Assets_and_Accrued_and_O1
Other Assets and Accrued and Other Liabilities Other Assets and Accrued and Other Liabilities (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Financing Receivables Policy | In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. |
Commitments_And_Contingencies_
Commitments And Contingencies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Reserves Policy | We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. |
We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Schedule of Other Expense (Income), Net | Other expense, net consists of the following ($000’s omitted): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Write-offs of deposits and pre-acquisition costs (Note 3) | $ | 6,099 | $ | 3,122 | $ | 2,278 | ||||||||||||||||||
Loss on debt retirements (Note 6) | 8,584 | 26,930 | 32,071 | |||||||||||||||||||||
Lease exit and related costs | 9,609 | 2,778 | 7,306 | |||||||||||||||||||||
Amortization of intangible assets (Note 1) | 13,033 | 13,100 | 13,100 | |||||||||||||||||||||
Miscellaneous, net (a) | 1,420 | 34,823 | 11,543 | |||||||||||||||||||||
$ | 38,745 | $ | 80,753 | $ | 66,298 | |||||||||||||||||||
(a) | Includes charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12) and $5.1 million in 2012 related to the write-down of notes receivable. | |||||||||||||||||||||||
Schedule of Earnings Per Share of Common Stock | The following table presents the earnings per share of common stock ($000's omitted, except per share data): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income | $ | 474,338 | $ | 2,620,116 | $ | 206,145 | ||||||||||||||||||
Less: earnings distributed to participating securities | (583 | ) | (407 | ) | — | |||||||||||||||||||
Less: undistributed earnings allocated to participating securities | (2,668 | ) | (19,201 | ) | — | |||||||||||||||||||
Numerator for basic earnings per share | $ | 471,087 | $ | 2,600,508 | $ | 206,145 | ||||||||||||||||||
Add back: undistributed earnings allocated to participating securities | 2,668 | 19,201 | — | |||||||||||||||||||||
Less: undistributed earnings reallocated to participating securities | (2,643 | ) | (18,845 | ) | — | |||||||||||||||||||
Numerator for diluted earnings per share | $ | 471,112 | $ | 2,600,864 | $ | 206,145 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Basic shares outstanding | 370,377 | 383,077 | 381,562 | |||||||||||||||||||||
Effect of dilutive securities | 3,725 | 3,789 | 3,002 | |||||||||||||||||||||
Diluted shares outstanding | 374,102 | 386,866 | 384,564 | |||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Basic | $ | 1.27 | $ | 6.79 | $ | 0.54 | ||||||||||||||||||
Diluted | $ | 1.26 | $ | 6.72 | $ | 0.54 | ||||||||||||||||||
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements ($000’s omitted): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Deposits and | Remaining Purchase | Land, Not | Deposits and | Remaining Purchase | Land, Not | |||||||||||||||||||
Pre-acquisition | Price | Owned, | Pre-acquisition | Price | Owned, | |||||||||||||||||||
Costs | Under | Costs | Under | |||||||||||||||||||||
Option | Option | |||||||||||||||||||||||
Agreements | Agreements | |||||||||||||||||||||||
Land options with VIEs | $ | 56,039 | $ | 891,506 | $ | 12,533 | $ | 40,486 | $ | 661,158 | $ | 8,167 | ||||||||||||
Other land options | 71,241 | 999,079 | 17,653 | 50,548 | 729,128 | 15,857 | ||||||||||||||||||
$ | 127,280 | $ | 1,890,585 | $ | 30,186 | $ | 91,034 | $ | 1,390,286 | $ | 24,024 | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their location in the Consolidated Balance Sheets is summarized below ($000’s omitted): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Other Assets | Other Liabilities | Other Assets | Other Liabilities | |||||||||||||||||||||
Interest rate lock commitments | $ | 4,313 | $ | 65 | $ | 3,628 | $ | 489 | ||||||||||||||||
Forward contracts | 79 | 3,653 | 4,374 | 34 | ||||||||||||||||||||
Whole loan commitments | 31 | 619 | 189 | 84 | ||||||||||||||||||||
$ | 4,423 | $ | 4,337 | $ | 8,191 | $ | 607 | |||||||||||||||||
Inventory_And_Land_Held_For_Sa2
Inventory And Land Held For Sale (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Components of Inventory | Major components of inventory at December 31, 2014 and 2013 were ($000’s omitted): | |||||||||||
2014 | 2013 | |||||||||||
Homes under construction | $ | 1,084,137 | $ | 1,042,147 | ||||||||
Land under development | 2,545,049 | 2,189,387 | ||||||||||
Raw land | 762,914 | 747,027 | ||||||||||
$ | 4,392,100 | $ | 3,978,561 | |||||||||
Capitalized Interest Rollforward | Information related to interest capitalized into inventory is as follows ($000’s omitted): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Interest in inventory, beginning of period | $ | 230,922 | $ | 331,880 | $ | 355,068 | ||||||
Interest capitalized | 131,444 | 154,107 | 201,103 | |||||||||
Interest expensed (a) | (194,728 | ) | (255,065 | ) | (224,291 | ) | ||||||
Interest in inventory, end of period | 167,638 | 230,922 | 331,880 | |||||||||
(a) | Interest expensed to Home sale cost of revenues for 2014, 2013, and 2012 included $1.3 million, $2.9 million, and $6.5 million, respectively, of capitalized interest write-offs resulting from land-related charges and sales. | |||||||||||
Land-related Charges | We recorded the following land-related charges: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Land impairments | $ | 3,911 | $ | 2,944 | $ | 13,437 | ||||||
Net realizable value adjustments ("NRV") - land held for sale | 1,158 | 3,606 | 1,480 | |||||||||
Write-off of deposits and pre-acquisition costs | 6,099 | 3,122 | 2,278 | |||||||||
Total land-related charges | $ | 11,168 | $ | 9,672 | $ | 17,195 | ||||||
Land Held for Sale | Land held for sale at December 31, 2014 and 2013 was as follows ($000’s omitted): | |||||||||||
2014 | 2013 | |||||||||||
Land held for sale, gross | $ | 108,725 | $ | 70,003 | ||||||||
Net realizable value reserves | (7,535 | ) | (8,268 | ) | ||||||||
Land held for sale, net | $ | 101,190 | $ | 61,735 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Operating Data By Reporting Segment | ||||||||||||||||||||
Operating Data by Segment ($000’s omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Northeast | $ | 710,859 | $ | 819,709 | $ | 755,148 | ||||||||||||||
Southeast | 949,635 | 842,921 | 691,113 | |||||||||||||||||
Florida | 917,956 | 802,665 | 628,997 | |||||||||||||||||
Texas | 859,165 | 835,473 | 682,929 | |||||||||||||||||
North | 1,436,500 | 1,232,814 | 1,022,633 | |||||||||||||||||
Southwest | 822,610 | 1,005,062 | 878,290 | |||||||||||||||||
5,696,725 | 5,538,644 | 4,659,110 | ||||||||||||||||||
Financial Services | 125,638 | 140,951 | 160,888 | |||||||||||||||||
Consolidated revenues | $ | 5,822,363 | $ | 5,679,595 | $ | 4,819,998 | ||||||||||||||
Income before income taxes: | ||||||||||||||||||||
Northeast | $ | 103,865 | $ | 110,246 | $ | 73,345 | ||||||||||||||
Southeast | 156,513 | 121,055 | 64,678 | |||||||||||||||||
Florida | 190,441 | 139,673 | 73,472 | |||||||||||||||||
Texas | 133,005 | 111,431 | 60,979 | |||||||||||||||||
North | 197,230 | 164,348 | 84,597 | |||||||||||||||||
Southwest | 136,357 | 179,163 | 79,887 | |||||||||||||||||
Other homebuilding (a) | (282,234 | ) | (346,803 | ) | (278,967 | ) | ||||||||||||||
635,177 | 479,113 | 157,991 | ||||||||||||||||||
Financial Services | 54,581 | 48,709 | 25,563 | |||||||||||||||||
Consolidated income before income taxes | $ | 689,758 | $ | 527,822 | $ | 183,554 | ||||||||||||||
(a) | Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Other homebuilding also included the following: losses on debt retirements of $8.6 million, $26.9 million, and $32.1 million for 2014, 2013, and 2012, respectively; charges totaling $69.3 million to increase general liability insurance reserves in 2014; costs associated with the relocation of our corporate headquarters totaling $16.3 million and $15.4 million in 2014 and 2013, respectively; and charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community. | |||||||||||||||||||
Land-Related Charges By Reporting Segment | ||||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Land-related charges*: | ||||||||||||||||||||
Northeast | $ | 2,824 | $ | 557 | $ | 1,794 | ||||||||||||||
Southeast | 1,826 | 998 | 1,363 | |||||||||||||||||
Florida | 487 | 1,076 | 214 | |||||||||||||||||
Texas | 321 | 191 | 556 | |||||||||||||||||
North | 3,227 | 3,434 | 4,546 | |||||||||||||||||
Southwest | 816 | 472 | 2,254 | |||||||||||||||||
Other homebuilding | 1,667 | 2,944 | 6,468 | |||||||||||||||||
$ | 11,168 | $ | 9,672 | $ | 17,195 | |||||||||||||||
* | Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 1 for additional discussion of these charges. | |||||||||||||||||||
Depreciation and Amortization Expense by Reporting Segment | ||||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||
Northeast | $ | 1,852 | $ | 1,987 | $ | 1,790 | ||||||||||||||
Southeast | 2,666 | 1,647 | 1,028 | |||||||||||||||||
Florida | 2,150 | 1,334 | 1,640 | |||||||||||||||||
Texas | 1,698 | 1,784 | 1,619 | |||||||||||||||||
North | 4,414 | 2,265 | 1,709 | |||||||||||||||||
Southwest | 4,002 | 2,969 | 3,143 | |||||||||||||||||
Other homebuilding (a) | 19,548 | 16,248 | 16,168 | |||||||||||||||||
36,330 | 28,234 | 27,097 | ||||||||||||||||||
Financial Services | 3,534 | 3,353 | 2,930 | |||||||||||||||||
$ | 39,864 | $ | 31,587 | $ | 30,027 | |||||||||||||||
(a) | Other homebuilding includes amortization of intangible assets | |||||||||||||||||||
Equity in (Earnings) Loss of Unconsolidated Entities by Reporting Segment | ||||||||||||||||||||
Operating Data by Segment ($000's omitted) | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Equity in (earnings) loss of unconsolidated entities: | ||||||||||||||||||||
Northeast | $ | (4,733 | ) | $ | (58 | ) | $ | (4 | ) | |||||||||||
Southeast | — | — | — | |||||||||||||||||
Florida | (7 | ) | (4 | ) | — | |||||||||||||||
Texas | — | — | — | |||||||||||||||||
North | (2,417 | ) | (608 | ) | (1,497 | ) | ||||||||||||||
Southwest | (486 | ) | (678 | ) | (1,137 | ) | ||||||||||||||
Other homebuilding | (583 | ) | 355 | (1,235 | ) | |||||||||||||||
(8,226 | ) | (993 | ) | (3,873 | ) | |||||||||||||||
Financial Services | (182 | ) | (137 | ) | (186 | ) | ||||||||||||||
$ | (8,408 | ) | $ | (1,130 | ) | $ | (4,059 | ) | ||||||||||||
Total Assets And Inventory By Reporting Segment | ||||||||||||||||||||
Operating Data by Segment | ||||||||||||||||||||
($000's omitted) | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 184,974 | $ | 266,229 | $ | 106,077 | $ | 557,280 | $ | 659,224 | ||||||||||
Southeast | 147,506 | 304,762 | 117,981 | 570,249 | 605,067 | |||||||||||||||
Florida | 150,743 | 350,016 | 112,225 | 612,984 | 717,531 | |||||||||||||||
Texas | 134,873 | 250,102 | 91,765 | 476,740 | 528,392 | |||||||||||||||
North | 280,970 | 478,665 | 137,044 | 896,679 | 996,908 | |||||||||||||||
Southwest | 166,056 | 698,513 | 163,421 | 1,027,990 | 1,113,592 | |||||||||||||||
Other homebuilding (a) | 19,015 | 196,762 | 34,401 | 250,178 | 3,527,731 | |||||||||||||||
1,084,137 | 2,545,049 | 762,914 | 4,392,100 | 8,148,445 | ||||||||||||||||
Financial Services | — | — | — | — | 420,965 | |||||||||||||||
$ | 1,084,137 | $ | 2,545,049 | $ | 762,914 | $ | 4,392,100 | $ | 8,569,410 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 212,611 | $ | 325,241 | $ | 106,681 | $ | 644,533 | $ | 731,259 | ||||||||||
Southeast | 139,484 | 274,981 | 146,617 | 561,082 | 599,271 | |||||||||||||||
Florida | 140,366 | 295,631 | 104,766 | 540,763 | 618,449 | |||||||||||||||
Texas | 130,398 | 223,979 | 57,480 | 411,857 | 466,198 | |||||||||||||||
North | 227,537 | 350,239 | 78,945 | 656,721 | 716,239 | |||||||||||||||
Southwest | 159,350 | 512,164 | 201,659 | 873,173 | 940,462 | |||||||||||||||
Other homebuilding (a) | 32,401 | 207,152 | 50,879 | 290,432 | 4,334,591 | |||||||||||||||
1,042,147 | 2,189,387 | 747,027 | 3,978,561 | 8,406,469 | ||||||||||||||||
Financial Services | — | — | — | — | 327,674 | |||||||||||||||
$ | 1,042,147 | $ | 2,189,387 | $ | 747,027 | $ | 3,978,561 | $ | 8,734,143 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Homes Under | Land Under | Raw Land | Total | Total | ||||||||||||||||
Construction | Development | Inventory | Assets | |||||||||||||||||
Northeast | $ | 198,549 | $ | 445,436 | $ | 109,136 | $ | 753,121 | $ | 866,024 | ||||||||||
Southeast | 147,227 | 286,210 | 120,193 | 553,630 | 590,650 | |||||||||||||||
Florida | 130,276 | 310,625 | 100,633 | 541,534 | 620,220 | |||||||||||||||
Texas | 145,594 | 256,704 | 54,556 | 456,854 | 523,843 | |||||||||||||||
North | 219,172 | 369,144 | 46,414 | 634,730 | 680,447 | |||||||||||||||
Southwest | 226,204 | 496,488 | 167,295 | 889,987 | 963,540 | |||||||||||||||
Other homebuilding (a) | 49,162 | 270,771 | 64,257 | 384,190 | 2,140,739 | |||||||||||||||
1,116,184 | 2,435,378 | 662,484 | 4,214,046 | 6,385,463 | ||||||||||||||||
Financial Services | — | — | — | — | 348,946 | |||||||||||||||
$ | 1,116,184 | $ | 2,435,378 | $ | 662,484 | $ | 4,214,046 | $ | 6,734,409 | |||||||||||
(a) | Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments. |
Investments_In_Unconsolidated_1
Investments In Unconsolidated Entities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Summary of Joint Ventures | A summary of our joint ventures is presented below ($000’s omitted): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Investments in joint ventures with debt non-recourse to PulteGroup | $ | 26,488 | $ | 26,532 | ||||
Investments in other active joint ventures | 13,880 | 18,791 | ||||||
Total investments in unconsolidated entities | $ | 40,368 | $ | 45,323 | ||||
Total joint venture debt | $ | 25,849 | $ | 12,408 | ||||
PulteGroup proportionate share of joint venture debt: | ||||||||
Joint venture debt with limited recourse guaranties | $ | 283 | $ | 750 | ||||
Joint venture debt non-recourse to PulteGroup | 11,341 | 3,654 | ||||||
PulteGroup's total proportionate share of joint venture debt | $ | 11,624 | $ | 4,404 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Senior Notes | Our senior notes are summarized as follows ($000’s omitted): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
5.20% unsecured senior notes due February 2015 (a) | $ | — | $ | 95,633 | ||||||||
5.25% unsecured senior notes due June 2015 (a) | 236,452 | 233,085 | ||||||||||
6.50% unsecured senior notes due May 2016 (a) | 462,009 | 459,581 | ||||||||||
7.625% unsecured senior notes due October 2017 (b) | 122,752 | 122,663 | ||||||||||
7.875% unsecured senior notes due June 2032 (a) | 299,239 | 299,196 | ||||||||||
6.375% unsecured senior notes due May 2033 (a) | 398,640 | 398,567 | ||||||||||
6.00% unsecured senior notes due February 2035 (a) | 299,469 | 299,443 | ||||||||||
7.375% unsecured senior notes due June 2046 (a) | — | 150,000 | ||||||||||
Total senior notes – carrying value (c) | $ | 1,818,561 | $ | 2,058,168 | ||||||||
Estimated fair value | $ | 1,952,774 | $ | 2,070,744 | ||||||||
(a) | Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. | |||||||||||
(b) | Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. | |||||||||||
(c) | The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes. | |||||||||||
Schedule of Financial Services available credit lines | The following is aggregate borrowing information for our mortgage operations ($000’s omitted): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Available credit lines | $ | 150,000 | $ | 150,000 | $ | 150,000 | ||||||
Unused credit lines | $ | 9,759 | $ | 44,336 | $ | 11,205 | ||||||
Weighted-average interest rate | 2.7 | % | 2.9 | % | 3 | % |
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||||
Stock Compensation Expense by Plan Type | Our stock compensation expense for the three years ended December 31, 2014 is presented below ($000's omitted): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Stock options | $ | 121 | $ | 1,056 | $ | 2,617 | ||||||||||||||||||
Restricted stock (including RSUs and performance shares) | 13,690 | 13,418 | 10,077 | |||||||||||||||||||||
Long-term incentive plans | 15,481 | 16,006 | 10,203 | |||||||||||||||||||||
$ | 29,292 | $ | 30,480 | $ | 22,897 | |||||||||||||||||||
Stock Option Activity Rollforward | A summary of stock option activity for the three years ended December 31, 2014 is presented below (000’s omitted except per share data): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | ||||||||||||||||||||||
Outstanding, beginning of year | 12,887 | $ | 23 | 17,148 | $ | 22 | 21,641 | $ | 21 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Exercised | (1,422 | ) | 11 | (1,432 | ) | 14 | (2,877 | ) | 11 | |||||||||||||||
Forfeited | (2,095 | ) | 29 | (2,829 | ) | 25 | (1,616 | ) | 27 | |||||||||||||||
Outstanding, end of year | 9,370 | $ | 23 | 12,887 | $ | 23 | 17,148 | $ | 22 | |||||||||||||||
Options exercisable at year end | 9,265 | $ | 23 | 12,402 | $ | 23 | 15,719 | $ | 23 | |||||||||||||||
Weighted-average per share fair value of | $ | — | $ | — | $ | — | ||||||||||||||||||
options granted during the year | ||||||||||||||||||||||||
Stock Options Weighted-average Remaining Contractual Lives | The following table summarizes information about the weighted-average remaining contractual lives of stock options outstanding and exercisable at December 31, 2014: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average Per | ||||||||||||||||||||
(000's omitted) | Remaining | Per Share | (000's omitted) | Share | ||||||||||||||||||||
Contract Life | Exercise Price | Exercise Price | ||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
$0.01 to $11.00 | 907 | 4 | $ | 10 | 802 | $ | 10 | |||||||||||||||||
$11.01 to $18.00 | 4,003 | 4.6 | 12 | 4,003 | 12 | |||||||||||||||||||
$18.01 to $25.00 | 417 | 0.3 | 23 | 417 | 23 | |||||||||||||||||||
$25.01 to $35.00 | 1,997 | 1.9 | 34 | 1,997 | 34 | |||||||||||||||||||
$35.01 to $45.00 | 2,046 | 0.9 | 40 | 2,046 | 40 | |||||||||||||||||||
9,370 | 3 | $ | 23 | 9,265 | $ | 23 | ||||||||||||||||||
Restricted Stock, RSUs, and Performance Shares Activity Rollforward | A summary of restricted stock activity, including RSUs and performance shares, for the three years ended December 31, 2014 is presented below (000’s omitted, except per share data): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||
Outstanding, beginning of | 3,211 | $ | 11 | 3,822 | $ | 9 | 3,042 | $ | 9 | |||||||||||||||
year | ||||||||||||||||||||||||
Granted | 974 | $ | 19 | 806 | $ | 21 | 1,461 | $ | 10 | |||||||||||||||
Distributed | (1,019 | ) | $ | 10 | (1,391 | ) | $ | 11 | (544 | ) | $ | 11 | ||||||||||||
Forfeited | (276 | ) | $ | 15 | (26 | ) | $ | 15 | (137 | ) | $ | 10 | ||||||||||||
Outstanding, end of year | 2,890 | $ | 15 | 3,211 | $ | 11 | 3,822 | $ | 9 | |||||||||||||||
Vested, end of year | 75 | $ | 13 | 60 | $ | 12 | 51 | $ | 10 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of Income Tax Expense (Benefit) | Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit) | ||||||||||||
Federal | $ | 5,619 | $ | 5,725 | $ | (8,523 | ) | |||||
State and other | (13,968 | ) | (1,596 | ) | (14,068 | ) | ||||||
$ | (8,349 | ) | $ | 4,129 | $ | (22,591 | ) | |||||
Deferred provision (benefit) | ||||||||||||
Federal | $ | 232,969 | $ | (1,833,580 | ) | $ | — | |||||
State and other | (9,200 | ) | (262,843 | ) | — | |||||||
$ | 223,769 | $ | (2,096,423 | ) | $ | — | ||||||
Income tax expense (benefit) | $ | 215,420 | $ | (2,092,294 | ) | $ | (22,591 | ) | ||||
Effective Income Tax Rate Reconciliation | The following table reconciles the statutory federal income tax rate to the effective income tax rate: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes at federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Effect of state and local income taxes, net of federal tax | 3 | 4 | 3 | |||||||||
Deferred tax asset valuation allowance | (6.6 | ) | (438.0 | ) | (37.7 | ) | ||||||
Tax contingencies | (1.4 | ) | 0.3 | (10.6 | ) | |||||||
Other | 1.2 | 2.3 | (2.0 | ) | ||||||||
Effective rate | 31.2 | % | (396.4 | )% | (12.3 | )% | ||||||
Deferred Tax Assets and Liabilities | Components of our net deferred tax asset are as follows ($000’s omitted): | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Non-deductible reserves and other | $ | 445,128 | $ | 475,730 | ||||||||
Inventory valuation reserves | 599,763 | 770,566 | ||||||||||
Net operating loss ("NOL") carryforwards: | ||||||||||||
Federal | 515,568 | 726,398 | ||||||||||
State | 257,738 | 292,195 | ||||||||||
Alternative minimum tax credits | 34,812 | 28,683 | ||||||||||
Energy credit and charitable contribution carryforward | 27,858 | 39,978 | ||||||||||
1,880,867 | 2,333,550 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Capitalized items, including real estate basis differences, | (31,584 | ) | (39,449 | ) | ||||||||
deducted for tax, net | ||||||||||||
Trademarks and tradenames | (46,362 | ) | (50,047 | ) | ||||||||
(77,946 | ) | (89,496 | ) | |||||||||
Valuation allowance | (82,253 | ) | (157,300 | ) | ||||||||
Net deferred tax asset | $ | 1,720,668 | $ | 2,086,754 | ||||||||
Summary of Income Tax Contingencies | A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 173,310 | $ | 170,425 | $ | 171,863 | ||||||
Increases related to tax positions taken during a prior period | — | 12,877 | 8,782 | |||||||||
Decreases related to tax positions taken during a prior period | (133,883 | ) | (7,502 | ) | (9,373 | ) | ||||||
Increases related to tax positions taken during the current | 237 | 381 | 11,797 | |||||||||
period | ||||||||||||
Decreases related to settlements with taxing authorities | (6,753 | ) | (1,434 | ) | — | |||||||
Reductions as a result of a lapse of the applicable statute of | — | (1,437 | ) | (12,644 | ) | |||||||
limitations | ||||||||||||
Unrecognized tax benefits, end of period | $ | 32,911 | $ | 173,310 | $ | 170,425 | ||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): | ||||||||||
Financial Instrument | Fair Value | Fair Value | |||||||||
Hierarchy | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
Measured at fair value on a recurring basis: | |||||||||||
Residential mortgage loans available-for-sale | Level 2 | $ | 339,531 | $ | 287,933 | ||||||
Interest rate lock commitments | Level 2 | 4,248 | 3,139 | ||||||||
Forward contracts | Level 2 | (3,574 | ) | 4,340 | |||||||
Whole loan commitments | Level 2 | (588 | ) | 105 | |||||||
Measured at fair value on a non-recurring basis: | |||||||||||
House and land inventory | Level 3 | $ | 13,925 | $ | — | ||||||
Disclosed at fair value: | |||||||||||
Cash and equivalents (including restricted cash) | Level 1 | $ | 1,309,220 | $ | 1,653,044 | ||||||
Financial Services debt | Level 2 | 140,241 | 105,664 | ||||||||
Senior notes | Level 2 | 1,952,774 | 2,070,744 | ||||||||
Other_Assets_and_Accrued_and_O2
Other Assets and Accrued and Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets and Accrued and Other Liabilities [Abstract] | ||||||||
Schedule of Other Assets | Other assets are presented below ($000’s omitted): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts and notes receivable: | ||||||||
Insurance receivables | $ | 60,598 | $ | 51,764 | ||||
Notes receivable | 30,699 | 32,944 | ||||||
Other receivables | 63,867 | 52,720 | ||||||
$ | 155,164 | $ | 137,428 | |||||
Prepaid expenses | 72,585 | 65,965 | ||||||
Deposits and pre-acquisition costs (Note 1) | 127,280 | 91,034 | ||||||
Property and equipment, net (Note 1) | 75,219 | 53,051 | ||||||
Income taxes receivable (Note 9) | 21,330 | 35,437 | ||||||
Other | 61,454 | 77,706 | ||||||
$ | 513,032 | $ | 460,621 | |||||
Schedule of Accrued and Other Liabilities | Accrued and other liabilities are presented below ($000’s omitted): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Self-insurance liabilities (Note 12) | $ | 710,245 | $ | 668,100 | ||||
Loan origination liabilities (Note 12) | 58,222 | 124,956 | ||||||
Compensation-related | 142,586 | 171,686 | ||||||
Warranty (Note 12) | 65,389 | 63,992 | ||||||
Community development district obligations (Note 12) | 17,122 | 26,124 | ||||||
Liability for land, not owned, under option agreements (Note 1) | 30,186 | 24,024 | ||||||
Accrued interest | 20,446 | 22,283 | ||||||
Limited recourse notes payable | 22,255 | 7,521 | ||||||
Other | 277,323 | 269,064 | ||||||
$ | 1,343,774 | $ | 1,377,750 | |||||
Commitments_And_Contingencies_1
Commitments And Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2014 are as follows ($000’s omitted): | |||||||||||
Years Ending December 31, | ||||||||||||
2015 | $ | 28,744 | ||||||||||
2016 | 25,713 | |||||||||||
2017 | 18,817 | |||||||||||
2018 | 14,870 | |||||||||||
2019 | 12,846 | |||||||||||
Thereafter | 42,733 | |||||||||||
Total minimum lease payments (a) | $ | 143,723 | ||||||||||
(a) | Minimum payments have not been reduced by minimum sublease rentals of $5.3 million due in the future under non-cancelable subleases. | |||||||||||
Summary of Changes in Loan Origination Liability | Changes in these liabilities were as follows ($000's omitted): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Liabilities, beginning of period | $ | 124,956 | $ | 164,280 | $ | 128,330 | ||||||
Reserves provided (released) | (18,604 | ) | — | 49,025 | ||||||||
Payments | (48,130 | ) | (39,324 | ) | (13,075 | ) | ||||||
Liabilities, end of period | $ | 58,222 | $ | 124,956 | $ | 164,280 | ||||||
Summary of Changes in Warranty Liability | Changes to warranty liabilities were as follows ($000’s omitted): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Warranty liabilities, beginning of period | $ | 63,992 | $ | 64,098 | $ | 68,025 | ||||||
Reserves provided | 51,348 | 49,399 | 45,705 | |||||||||
Payments | (47,968 | ) | (44,925 | ) | (45,365 | ) | ||||||
Other adjustments | (1,983 | ) | (4,580 | ) | (4,267 | ) | ||||||
Warranty liabilities, end of period | $ | 65,389 | $ | 63,992 | $ | 64,098 | ||||||
Summary of Changes in Self-insurance Liability | Changes in these liabilities were as follows ($000's omitted): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 668,100 | $ | 721,284 | $ | 739,029 | ||||||
Reserves provided | 141,790 | 64,737 | 54,262 | |||||||||
Payments | (99,645 | ) | (117,921 | ) | (72,007 | ) | ||||||
Balance, end of period | $ | 710,245 | $ | 668,100 | $ | 721,284 | ||||||
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ||||||||||||||||||||
Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET | |||||||||||||||||||
DECEMBER 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and equivalents | $ | 7,454 | $ | 1,157,307 | $ | 128,101 | $ | — | $ | 1,292,862 | ||||||||||
Restricted cash | 3,710 | 1,513 | 11,135 | — | 16,358 | |||||||||||||||
House and land inventory | — | 4,391,445 | 655 | — | 4,392,100 | |||||||||||||||
Land held for sale | — | 100,156 | 1,034 | — | 101,190 | |||||||||||||||
Land, not owned, under option | — | 30,186 | — | — | 30,186 | |||||||||||||||
agreements | ||||||||||||||||||||
Residential mortgage loans available- | — | — | 339,531 | — | 339,531 | |||||||||||||||
for-sale | ||||||||||||||||||||
Securities purchased under agreements to resell | 22,000 | — | (22,000 | ) | — | — | ||||||||||||||
Investments in unconsolidated entities | 74 | 36,126 | 4,168 | — | 40,368 | |||||||||||||||
Other assets | 34,214 | 421,145 | 57,673 | — | 513,032 | |||||||||||||||
Intangible assets | — | 123,115 | — | — | 123,115 | |||||||||||||||
Deferred tax assets, net | 1,712,853 | 15 | 7,800 | — | 1,720,668 | |||||||||||||||
Investments in subsidiaries and | 4,963,831 | 967,032 | 6,359,441 | (12,290,304 | ) | — | ||||||||||||||
intercompany accounts, net | ||||||||||||||||||||
$ | 6,744,136 | $ | 7,228,040 | $ | 6,887,538 | $ | (12,290,304 | ) | $ | 8,569,410 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable, customer deposits, | $ | 71,874 | $ | 1,514,954 | $ | 170,104 | $ | — | $ | 1,756,932 | ||||||||||
accrued and other liabilities | ||||||||||||||||||||
Income tax liabilities | 48,747 | (25 | ) | — | — | 48,722 | ||||||||||||||
Financial Services debt | — | — | 140,241 | — | 140,241 | |||||||||||||||
Senior notes | 1,818,561 | — | — | — | 1,818,561 | |||||||||||||||
Total liabilities | 1,939,182 | 1,514,929 | 310,345 | — | 3,764,456 | |||||||||||||||
Total shareholders’ equity | 4,804,954 | 5,713,111 | 6,577,193 | (12,290,304 | ) | 4,804,954 | ||||||||||||||
$ | 6,744,136 | $ | 7,228,040 | $ | 6,887,538 | $ | (12,290,304 | ) | $ | 8,569,410 | ||||||||||
CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
DECEMBER 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and equivalents | $ | 262,364 | $ | 1,188,999 | $ | 128,966 | $ | — | $ | 1,580,329 | ||||||||||
Restricted cash | 58,699 | 2,635 | 11,381 | — | 72,715 | |||||||||||||||
House and land inventory | — | 3,977,851 | 710 | — | 3,978,561 | |||||||||||||||
Land held for sale | — | 60,701 | 1,034 | — | 61,735 | |||||||||||||||
Land, not owned, under option | — | 24,024 | — | — | 24,024 | |||||||||||||||
agreements | ||||||||||||||||||||
Residential mortgage loans available- | — | — | 287,933 | — | 287,933 | |||||||||||||||
for-sale | ||||||||||||||||||||
Investments in unconsolidated entities | 68 | 41,319 | 3,936 | — | 45,323 | |||||||||||||||
Other assets | 50,251 | 359,228 | 51,142 | — | 460,621 | |||||||||||||||
Intangible assets | — | 136,148 | — | — | 136,148 | |||||||||||||||
Deferred tax assets, net | 2,074,137 | 17 | 12,600 | — | 2,086,754 | |||||||||||||||
Investments in subsidiaries and | 4,532,950 | (16,513 | ) | 5,939,784 | (10,456,221 | ) | — | |||||||||||||
intercompany accounts, net | ||||||||||||||||||||
$ | 6,978,469 | $ | 5,774,409 | $ | 6,437,486 | $ | (10,456,221 | ) | $ | 8,734,143 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts payable, customer deposits, | $ | 65,334 | $ | 1,413,752 | $ | 236,258 | $ | — | $ | 1,715,344 | ||||||||||
accrued and other liabilities | ||||||||||||||||||||
Income tax liabilities | 206,015 | — | — | — | 206,015 | |||||||||||||||
Financial Services debt | — | — | 105,664 | — | 105,664 | |||||||||||||||
Senior notes | 2,058,168 | — | — | — | 2,058,168 | |||||||||||||||
Total liabilities | 2,329,517 | 1,413,752 | 341,922 | — | 4,085,191 | |||||||||||||||
Total shareholders’ equity | 4,648,952 | 4,360,657 | 6,095,564 | (10,456,221 | ) | 4,648,952 | ||||||||||||||
$ | 6,978,469 | $ | 5,774,409 | $ | 6,437,486 | $ | (10,456,221 | ) | $ | 8,734,143 | ||||||||||
Consolidating Statement Of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 5,662,171 | $ | — | $ | — | $ | 5,662,171 | ||||||||||
Land sale revenues | — | 34,554 | — | — | 34,554 | |||||||||||||||
— | 5,696,725 | — | — | 5,696,725 | ||||||||||||||||
Financial Services | — | 889 | 124,749 | — | 125,638 | |||||||||||||||
— | 5,697,614 | 124,749 | — | 5,822,363 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 4,343,249 | — | — | 4,343,249 | |||||||||||||||
Land sale cost of revenues | — | 23,748 | — | — | 23,748 | |||||||||||||||
— | 4,366,997 | — | — | 4,366,997 | ||||||||||||||||
Financial Services expenses | 784 | (130 | ) | 70,585 | — | 71,239 | ||||||||||||||
Selling, general, and administrative | — | 661,308 | 6,507 | — | 667,815 | |||||||||||||||
expenses | ||||||||||||||||||||
Other expense, net | 8,521 | 29,273 | 951 | — | 38,745 | |||||||||||||||
Interest income | (337 | ) | (4,244 | ) | (51 | ) | — | (4,632 | ) | |||||||||||
Interest expense | 849 | — | — | — | 849 | |||||||||||||||
Intercompany interest | 9,800 | (90 | ) | (9,710 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | (7 | ) | (8,182 | ) | (219 | ) | — | (8,408 | ) | |||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (19,610 | ) | 652,682 | 56,686 | — | 689,758 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | (7,473 | ) | 201,332 | 21,561 | — | 215,420 | ||||||||||||||
Income (loss) before equity in income | (12,137 | ) | 451,350 | 35,125 | — | 474,338 | ||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 486,475 | 38,534 | 403,505 | (928,514 | ) | — | ||||||||||||||
Net income (loss) | 474,338 | 489,884 | 438,630 | (928,514 | ) | 474,338 | ||||||||||||||
Other comprehensive income (loss) | 105 | — | — | — | 105 | |||||||||||||||
Comprehensive income (loss) | $ | 474,443 | $ | 489,884 | $ | 438,630 | $ | (928,514 | ) | $ | 474,443 | |||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 5,424,309 | $ | — | $ | — | $ | 5,424,309 | ||||||||||
Land sale revenues | — | 114,335 | — | — | 114,335 | |||||||||||||||
— | 5,538,644 | — | — | 5,538,644 | ||||||||||||||||
Financial Services | — | 2,353 | 138,598 | — | 140,951 | |||||||||||||||
— | 5,540,997 | 138,598 | — | 5,679,595 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 4,310,528 | — | — | 4,310,528 | |||||||||||||||
Land sale cost of revenues | — | 104,426 | — | — | 104,426 | |||||||||||||||
— | 4,414,954 | — | — | 4,414,954 | ||||||||||||||||
Financial Services expenses | 832 | 970 | 90,577 | — | 92,379 | |||||||||||||||
Selling, general, and administrative | — | 573,904 | (5,404 | ) | — | 568,500 | ||||||||||||||
expenses | ||||||||||||||||||||
Other expense, net | 26,870 | 49,681 | 4,202 | — | 80,753 | |||||||||||||||
Interest income | (349 | ) | (3,954 | ) | (92 | ) | — | (4,395 | ) | |||||||||||
Interest expense | 712 | — | — | — | 712 | |||||||||||||||
Intercompany interest | 17,518 | (8,260 | ) | (9,258 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | 1,461 | (1,783 | ) | (808 | ) | — | (1,130 | ) | ||||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (47,044 | ) | 515,485 | 59,381 | — | 527,822 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | (2,113,827 | ) | (799 | ) | 22,332 | — | (2,092,294 | ) | ||||||||||||
Income (loss) before equity in income | 2,066,783 | 516,284 | 37,049 | — | 2,620,116 | |||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 553,333 | 35,086 | 485,400 | (1,073,819 | ) | — | ||||||||||||||
Net income (loss) | 2,620,116 | 551,370 | 522,449 | (1,073,819 | ) | 2,620,116 | ||||||||||||||
Other comprehensive income (loss) | 197 | — | — | — | 197 | |||||||||||||||
Comprehensive income (loss) | $ | 2,620,313 | $ | 551,370 | $ | 522,449 | $ | (1,073,819 | ) | $ | 2,620,313 | |||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Eliminating | Consolidated | ||||||||||||||||||
Entries | PulteGroup, | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Inc. | |||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Homebuilding | ||||||||||||||||||||
Home sale revenues | $ | — | $ | 4,552,412 | $ | — | $ | — | $ | 4,552,412 | ||||||||||
Land sale revenues | — | 106,698 | — | — | 106,698 | |||||||||||||||
— | 4,659,110 | — | — | 4,659,110 | ||||||||||||||||
Financial Services | — | 2,082 | 158,806 | — | 160,888 | |||||||||||||||
— | 4,661,192 | 158,806 | — | 4,819,998 | ||||||||||||||||
Homebuilding Cost of Revenues: | ||||||||||||||||||||
Home sale cost of revenues | — | 3,833,451 | — | — | 3,833,451 | |||||||||||||||
Land sale cost of revenues | — | 94,880 | — | — | 94,880 | |||||||||||||||
— | 3,928,331 | — | — | 3,928,331 | ||||||||||||||||
Financial Services expenses | 379 | 567 | 134,565 | — | 135,511 | |||||||||||||||
Selling, general, and administrative | — | 515,283 | (826 | ) | — | 514,457 | ||||||||||||||
expenses | ||||||||||||||||||||
Other expense (income), net | 32,027 | 33,506 | 765 | — | 66,298 | |||||||||||||||
Interest income | (229 | ) | (4,597 | ) | (87 | ) | — | (4,913 | ) | |||||||||||
Interest expense | 819 | — | — | — | 819 | |||||||||||||||
Intercompany interest | 587,281 | (573,852 | ) | (13,429 | ) | — | — | |||||||||||||
Equity in (earnings) loss of | (1 | ) | (3,555 | ) | (503 | ) | — | (4,059 | ) | |||||||||||
unconsolidated entities | ||||||||||||||||||||
Income (loss) before income taxes and | (620,276 | ) | 765,509 | 38,321 | — | 183,554 | ||||||||||||||
equity in income (loss) of | ||||||||||||||||||||
subsidiaries | ||||||||||||||||||||
Income tax expense (benefit) | 426 | (22,299 | ) | (718 | ) | — | (22,591 | ) | ||||||||||||
Income (loss) before equity in income | (620,702 | ) | 787,808 | 39,039 | — | 206,145 | ||||||||||||||
(loss) of subsidiaries | ||||||||||||||||||||
Equity in income (loss) of subsidiaries | 826,847 | 34,596 | 476,806 | (1,338,249 | ) | — | ||||||||||||||
Net income (loss) | 206,145 | 822,404 | 515,845 | (1,338,249 | ) | 206,145 | ||||||||||||||
Other comprehensive income (loss) | 314 | — | — | — | 314 | |||||||||||||||
Comprehensive income (loss) | $ | 206,459 | $ | 822,404 | $ | 515,845 | $ | (1,338,249 | ) | $ | 206,459 | |||||||||
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | PulteGroup, Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | 206,485 | $ | 175,415 | $ | (72,651 | ) | $ | — | $ | 309,249 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 8,161 | (4 | ) | — | 8,157 | ||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net change in loans held for investment | — | — | 335 | — | 335 | |||||||||||||||
Change in restricted cash related to | 54,989 | — | — | — | 54,989 | |||||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 113 | — | — | 113 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (44,956 | ) | (3,834 | ) | — | (48,790 | ) | ||||||||||||
Cash used for business acquisition | — | (82,419 | ) | — | — | (82,419 | ) | |||||||||||||
Net cash provided by (used in) investing | 54,989 | (119,101 | ) | (3,512 | ) | — | (67,624 | ) | ||||||||||||
activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings | — | — | 34,577 | — | 34,577 | |||||||||||||||
(repayments) | ||||||||||||||||||||
Other borrowings (repayments) | (249,765 | ) | (866 | ) | — | — | (250,631 | ) | ||||||||||||
Stock option exercises | 15,627 | — | — | — | 15,627 | |||||||||||||||
Stock repurchases | (253,019 | ) | — | — | — | (253,019 | ) | |||||||||||||
Dividends paid | (75,646 | ) | — | — | — | (75,646 | ) | |||||||||||||
Intercompany activities, net | 46,419 | (87,140 | ) | 40,721 | — | — | ||||||||||||||
Net cash provided by (used in) | (516,384 | ) | (88,006 | ) | 75,298 | — | (529,092 | ) | ||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | (254,910 | ) | (31,692 | ) | (865 | ) | — | (287,467 | ) | |||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of year | 262,364 | 1,188,999 | 128,966 | — | 1,580,329 | |||||||||||||||
Cash and equivalents at end of year | $ | 7,454 | $ | 1,157,307 | $ | 128,101 | $ | — | $ | 1,292,862 | ||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | PulteGroup, Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | (41 | ) | $ | 865,267 | $ | 15,910 | $ | — | $ | 881,136 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 1,001 | — | — | 1,001 | |||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | (1,677 | ) | — | — | (1,677 | ) | |||||||||||||
Net change in loans held for investment | — | — | (12,265 | ) | — | (12,265 | ) | |||||||||||||
Change in restricted cash related to | (4,152 | ) | — | — | — | (4,152 | ) | |||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 15 | — | — | 15 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (26,472 | ) | (2,427 | ) | — | (28,899 | ) | ||||||||||||
Net cash provided by (used in) investing | (4,152 | ) | (27,133 | ) | (14,692 | ) | — | (45,977 | ) | |||||||||||
activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings | — | — | (33,131 | ) | (33,131 | ) | ||||||||||||||
(repayments) | ||||||||||||||||||||
Other borrowings (repayments) | (485,048 | ) | 5,221 | (479,827 | ) | |||||||||||||||
Stock option exercises | 19,411 | — | — | — | 19,411 | |||||||||||||||
Stock repurchases | (127,661 | ) | — | — | — | (127,661 | ) | |||||||||||||
Dividends paid | (38,382 | ) | — | — | — | (38,382 | ) | |||||||||||||
Intercompany activities, net | 752,069 | (718,299 | ) | (33,770 | ) | — | — | |||||||||||||
Net cash provided by (used in) | 120,389 | (713,078 | ) | (66,901 | ) | — | (659,590 | ) | ||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | 116,196 | 125,056 | (65,683 | ) | — | 175,569 | ||||||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of year | 146,168 | 1,063,943 | 194,649 | — | 1,404,760 | |||||||||||||||
Cash and equivalents at end of year | $ | 262,364 | $ | 1,188,999 | $ | 128,966 | $ | — | $ | 1,580,329 | ||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
($000’s omitted) | ||||||||||||||||||||
Unconsolidated | Consolidated | |||||||||||||||||||
PulteGroup, | ||||||||||||||||||||
PulteGroup, | Guarantor | Non-Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | Entries | |||||||||||||||||
Net cash provided by (used in) | $ | (582,762 | ) | $ | 1,332,342 | $ | 10,560 | $ | — | $ | 760,140 | |||||||||
operating activities | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Distributions from unconsolidated | — | 3,029 | — | — | 3,029 | |||||||||||||||
entities | ||||||||||||||||||||
Investments in unconsolidated entities | — | (16,456 | ) | — | — | (16,456 | ) | |||||||||||||
Net change in loans held for | — | — | 836 | — | 836 | |||||||||||||||
investment | ||||||||||||||||||||
Change in restricted cash related to | 28,653 | — | — | — | 28,653 | |||||||||||||||
letters of credit | ||||||||||||||||||||
Proceeds from the sale of property and | — | 7,586 | — | — | 7,586 | |||||||||||||||
equipment | ||||||||||||||||||||
Capital expenditures | — | (10,831 | ) | (3,111 | ) | — | (13,942 | ) | ||||||||||||
Net cash provided by (used in) | 28,653 | (16,672 | ) | (2,275 | ) | — | 9,706 | |||||||||||||
investing activities | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Financial Services borrowings (repayments) | — | — | 138,795 | — | 138,795 | |||||||||||||||
Other borrowings (repayments) | (620,700 | ) | 1,900 | — | — | (618,800 | ) | |||||||||||||
Stock option exercises | 32,809 | — | — | — | 32,809 | |||||||||||||||
Stock repurchases | (961 | ) | — | — | — | (961 | ) | |||||||||||||
Intercompany activities, net | 1,169,842 | (1,129,188 | ) | (40,654 | ) | — | — | |||||||||||||
Net cash provided by (used in) | 580,990 | (1,127,288 | ) | 98,141 | — | (448,157 | ) | |||||||||||||
financing activities | ||||||||||||||||||||
Net increase (decrease) in cash and | 26,881 | 188,382 | 106,426 | — | 321,689 | |||||||||||||||
equivalents | ||||||||||||||||||||
Cash and equivalents at beginning of | 119,287 | 875,561 | 88,223 | — | 1,083,071 | |||||||||||||||
year | ||||||||||||||||||||
Cash and equivalents at end of year | $ | 146,168 | $ | 1,063,943 | $ | 194,649 | $ | — | $ | 1,404,760 | ||||||||||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information | UNAUDITED QUARTERLY INFORMATION | |||||||||||||||||||
(000’s omitted, except per share data) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total (a) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2014 | ||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||
Revenues | $ | 1,093,999 | $ | 1,254,989 | $ | 1,561,273 | $ | 1,786,464 | $ | 5,696,725 | ||||||||||
Cost of revenues | 833,614 | 959,524 | 1,198,908 | 1,374,951 | 4,366,997 | |||||||||||||||
Income before income taxes (b) | 108,435 | 58,573 | 214,051 | 254,118 | 635,177 | |||||||||||||||
Financial Services: | ||||||||||||||||||||
Revenues | $ | 24,895 | $ | 31,198 | $ | 33,452 | $ | 36,093 | $ | 125,638 | ||||||||||
Income before income taxes (c) | 21,594 | 9,108 | 10,877 | 13,002 | 54,581 | |||||||||||||||
Consolidated results: | ||||||||||||||||||||
Revenues | $ | 1,118,894 | $ | 1,286,187 | $ | 1,594,725 | $ | 1,822,557 | $ | 5,822,363 | ||||||||||
Income before income taxes | 130,029 | 67,681 | 224,928 | 267,120 | 689,758 | |||||||||||||||
Income tax expense (d) | 55,210 | 25,801 | 84,383 | 50,025 | 215,420 | |||||||||||||||
Net income | $ | 74,819 | $ | 41,880 | $ | 140,545 | $ | 217,095 | $ | 474,338 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.11 | $ | 0.37 | $ | 0.58 | $ | 1.27 | ||||||||||
Diluted | $ | 0.19 | $ | 0.11 | $ | 0.37 | $ | 0.58 | $ | 1.26 | ||||||||||
Number of shares used in calculation: | ||||||||||||||||||||
Basic | 383,991 | 376,072 | 373,531 | 369,533 | 370,377 | |||||||||||||||
Effect of dilutive securities | 3,815 | 3,592 | 3,761 | 3,734 | 3,725 | |||||||||||||||
Diluted | 387,806 | 379,664 | 377,292 | 373,267 | 374,102 | |||||||||||||||
(a) | Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. | |||||||||||||||||||
(b) | Homebuilding income before income taxes includes losses on debt retirement of $8.6 million in the 1st Quarter; charges of $84.5 million to increase general liability insurance reserves in the 2nd Quarter; and costs associated with the relocation of our corporate headquarters of $8.7 million, offset by favorable adjustments of $15.2 million to decrease general liability insurance reserves in the 4th Quarter. | |||||||||||||||||||
(c) | Financial Services expenses in the 1st Quarter includes a reduction in loan origination liabilities totaling $18.6 million. | |||||||||||||||||||
(d) | Income tax expense in the 4th Quarter includes a benefit of $49.6 million related to the resolution of certain tax matters and the reversal of valuation allowance related to certain state deferred tax assets. | |||||||||||||||||||
UNAUDITED QUARTERLY INFORMATION | ||||||||||||||||||||
(000’s omitted, except per share data) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total (a) | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013 | ||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||
Revenues | $ | 1,125,883 | $ | 1,240,060 | $ | 1,547,742 | $ | 1,624,959 | $ | 5,538,644 | ||||||||||
Cost of revenues | 923,488 | 1,011,528 | 1,230,070 | 1,249,868 | 4,414,954 | |||||||||||||||
Income before income taxes (b) | 68,037 | 21,971 | 163,594 | 225,511 | 479,113 | |||||||||||||||
Financial Services: | ||||||||||||||||||||
Revenues | $ | 36,873 | $ | 39,362 | $ | 34,336 | $ | 30,380 | $ | 140,951 | ||||||||||
Income before income taxes | 14,313 | 16,359 | 11,128 | 6,909 | 48,709 | |||||||||||||||
Consolidated results: | ||||||||||||||||||||
Revenues | $ | 1,162,756 | $ | 1,279,422 | $ | 1,582,078 | $ | 1,655,339 | $ | 5,679,595 | ||||||||||
Income before income taxes | 82,350 | 38,330 | 174,722 | 232,420 | 527,822 | |||||||||||||||
Income tax expense (benefit) (c) | 588 | 1,913 | (2,107,162 | ) | 12,367 | (2,092,294 | ) | |||||||||||||
Net income | $ | 81,762 | $ | 36,417 | $ | 2,281,884 | $ | 220,053 | $ | 2,620,116 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.09 | $ | 5.92 | $ | 0.58 | $ | 6.79 | ||||||||||
Diluted | $ | 0.21 | $ | 0.09 | $ | 5.87 | $ | 0.57 | $ | 6.72 | ||||||||||
Number of shares used in calculation: | ||||||||||||||||||||
Basic | 384,228 | 385,389 | 382,883 | 379,879 | 383,077 | |||||||||||||||
Effect of dilutive securities | 6,093 | 5,791 | 3,220 | 3,845 | 3,789 | |||||||||||||||
Diluted | 390,321 | 391,180 | 386,103 | 383,724 | 386,866 | |||||||||||||||
(a) | Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. | |||||||||||||||||||
(b) | Homebuilding income before income taxes in the 2nd Quarter includes charges totaling $66.6 million consisting of losses on debt retirements, costs associated with the relocation of our corporate headquarters, and a contractual dispute related to a previously completed luxury community. | |||||||||||||||||||
(c) | Income tax expense (benefit) includes a benefit of $2.1 billion and $73.7 million in the 3rd Quarter and 4th Quarter, respectively, related to the reversal of substantially all of the valuation allowance previously recorded against our deferred tax assets. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combination, Consideration Transferred | $82,400,000 | ||
Unfunded settlements | 5,100,000 | 3,700,000 | |
Intangible asset useful life | 20 years | ||
Intangible assets, acquired cost (gross) | 259,000,000 | 259,000,000 | |
Intangible assets, accumulated amortization | 135,900,000 | 122,900,000 | |
Intangible assets amortization expense | 13,033,000 | 13,100,000 | 13,100,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 12,900,000 | ||
Future Amortization Expense, Year Two | 12,900,000 | ||
Future Amortization Expense, Year Three | 12,900,000 | ||
Future Amortization Expense, Year Four | 12,900,000 | ||
Future Amortization Expense, Year Five | 12,900,000 | ||
Intangible asset impairment expense | 0 | 0 | 0 |
Property and equipment, net | 75,219,000 | 53,051,000 | |
Property and equipment, accumulated depreciation | 192,200,000 | 182,000,000 | |
Depreciation Expense | 26,800,000 | 18,500,000 | 16,900,000 |
Advertising Expense | 41,800,000 | 42,400,000 | 45,800,000 |
Employee benefit plan company contributions | 12,100,000 | 11,000,000 | 9,400,000 |
Charges related to contractual dispute | 41,200,000 | ||
Provision for Doubtful Accounts | 5,100,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6.6 | 9.6 | 16.6 |
Number of VIEs requiring consolidation | 0 | 0 | |
Land, not owned, under option agreements | 30,186,000 | 24,024,000 | |
Liability for land, not owned, under option agreements | 30,186,000 | 24,024,000 | |
Residential mortgage loans available-for-sale | 339,531,000 | 287,933,000 | |
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 327,400,000 | 278,100,000 | |
Net gain (loss) from change in fair value | 1,700,000 | -1,200,000 | |
Net gains from the sale of mortgages | 67,200,000 | 80,300,000 | 109,200,000 |
Loans held for investment, net | 12,500,000 | 11,000,000 | |
Days past contractual term once loans no longer accrue interest income | 90 days | ||
Variability in future cash flows of derivative instruments in days | 75 days | ||
Furniture and Fixtures [Member] | |||
Property and equipment, useful life | 2 years | ||
Minimum [Member] | |||
Period of Reimbursement of Payments on Loan Prepay in Days | 90 days | ||
Minimum [Member] | Equipment [Member] | |||
Property and equipment, useful life | 3 years | ||
Maximum [Member] | |||
Period of Reimbursement of Payments on Loan Prepay in Days | 120 days | ||
Maximum [Member] | Equipment [Member] | |||
Property and equipment, useful life | 10 years | ||
Financial Services [Member] | |||
Interest income on mortgage loans | 7,200,000 | 7,500,000 | 6,000,000 |
Interest Rate Lock Commitments [Member] | |||
Derivative, notional amount | 146,100,000 | 175,700,000 | |
Forward Contracts [Member] | |||
Derivative, notional amount | 371,000,000 | 381,500,000 | |
Whole Loan Commitments [Member] | |||
Derivative, notional amount | $63,500,000 | $31,700,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Other Expense (Income), Net) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other expense (income), net [Line Items] | ||||
Write-off of deposits and pre-acquisition costs | $6,099 | $3,122 | $2,278 | |
Loss on debt retirements | 8,584 | 8,584 | 26,930 | 32,071 |
Amortization of intangible assets | 13,033 | 13,100 | 13,100 | |
Miscellaneous, net | 1,420 | 34,823 | 11,543 | |
Other expense, net | 38,745 | 80,753 | 66,298 | |
Homebuilding [Member] | ||||
Other expense (income), net [Line Items] | ||||
Lease exit and related costs | $9,609 | $2,778 | $7,306 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income | $217,095 | $140,545 | $41,880 | $74,819 | $220,053 | $2,281,884 | $36,417 | $81,762 | $474,338 | $2,620,116 | $206,145 |
Less: earnings distributed to participating securities | -583 | -407 | 0 | ||||||||
Less: undistributed earnings allocated to participating securities | -2,668 | -19,201 | 0 | ||||||||
Numerator for basic earnings per share | 471,087 | 2,600,508 | 206,145 | ||||||||
Add back: undistributed earnings allocated to participating securities | 2,668 | 19,201 | 0 | ||||||||
Less: undistributed earnings reallocated to participating securities | -2,643 | -18,845 | 0 | ||||||||
Numerator for diluted earnings per share | $471,112 | $2,600,864 | $206,145 | ||||||||
Denominator: | |||||||||||
Basic shares outstanding | 369,533 | 373,531 | 376,072 | 383,991 | 379,879 | 382,883 | 385,389 | 384,228 | 370,377 | 383,077 | 381,562 |
Effect of dilutive securities (shares) | 3,734 | 3,761 | 3,592 | 3,815 | 3,845 | 3,220 | 5,791 | 6,093 | 3,725 | 3,789 | 3,002 |
Diluted shares outstanding (shares) | 373,267 | 377,292 | 379,664 | 387,806 | 383,724 | 386,103 | 391,180 | 390,321 | 374,102 | 386,866 | 384,564 |
Earnings per share: | |||||||||||
Basic (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.58 | $5.92 | $0.09 | $0.21 | $1.27 | $6.79 | $0.54 |
Diluted (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.57 | $5.87 | $0.09 | $0.21 | $1.26 | $6.72 | $0.54 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | $127,280 | $91,034 |
Remaining Purchase Price | 1,890,585 | 1,390,286 |
Land, Not Owned, Under Option Agreements | 30,186 | 24,024 |
Consolidated and Unconsolidated VIEs [Member] | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 56,039 | 40,486 |
Remaining Purchase Price | 891,506 | 661,158 |
Land, Not Owned, Under Option Agreements | 12,533 | 8,167 |
Other Land Option Agreements Member | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 71,241 | 50,548 |
Remaining Purchase Price | 999,079 | 729,128 |
Land, Not Owned, Under Option Agreements | $17,653 | $15,857 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $4,423 | $8,191 |
Other Liabilities | 4,337 | 607 |
Whole Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 31 | 189 |
Other Liabilities | 619 | 84 |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 4,313 | 3,628 |
Other Liabilities | 65 | 489 |
Forward Contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 79 | 4,374 |
Other Liabilities | $3,653 | $34 |
Corporate_Office_Relocation_Na
Corporate Office Relocation (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring and relocation costs | $15 | |
Home Office Relocation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance, retention, relocation, and related costs | 16.3 | 15.4 |
Home Office Relocation [Member] | Employee severance, retention, and relocation costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance, retention, relocation, and related costs | 7.6 | 15 |
Home Office Relocation [Member] | Asset impairments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance, retention, relocation, and related costs | $8.70 | $0.40 |
Recovered_Sheet1
Inventory And Land Held for Sale (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Capitalized interest related to inventory impairments expensed to cost of revenues | $1.30 | $2.90 | $6.50 |
Inventory_And_Land_Held_For_Sa3
Inventory And Land Held For Sale (Major Components Of Inventory) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Homes under construction | $1,084,137 | $1,042,147 | $1,116,184 |
Land under development | 2,545,049 | 2,189,387 | 2,435,378 |
Raw land | 762,914 | 747,027 | 662,484 |
House and land inventory | $4,392,100 | $3,978,561 | $4,214,046 |
Inventory_And_Land_Held_For_Sa4
Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest in inventory, beginning of period | $230,922 | $331,880 | $355,068 |
Interest capitalized | 131,444 | 154,107 | 201,103 |
Interest expensed | -194,728 | -255,065 | -224,291 |
Interest in inventory, end of period | $167,638 | $230,922 | $331,880 |
Inventory_And_Land_Held_For_Sa5
Inventory And Land Held For Sale Inventory and Land Held for Sale (Land-related Charges) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Land impairments | $3,911 | $2,944 | $13,437 |
Net realizable value adjustments (NRV) - land held for sale | 1,158 | 3,606 | 1,480 |
Write-off of deposits and pre-acquisition costs | 6,099 | 3,122 | 2,278 |
Total land-related charges | $11,168 | $9,672 | $17,195 |
Inventory_And_Land_Held_For_Sa6
Inventory And Land Held For Sale (Land Held For Sale) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Land held for sale, gross | $108,725 | $70,003 |
Net realizable value reserves | -7,535 | -8,268 |
Land held for sale, net | $101,190 | $61,735 |
Segment_Information_Narrative_
Segment Information Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | ||||||
Segment Reporting Information | ||||||
Home sale revenues | $5,662,171,000 | $5,424,309,000 | $4,552,412,000 | |||
Number of reportable segments | 6 | |||||
Loss on debt retirements | 8,584,000 | 8,584,000 | 26,930,000 | 32,071,000 | ||
Adjustment to self insurance reserves | -15,200,000 | 84,500,000 | 69,300,000 | |||
Charges related to contractual dispute | 41,200,000 | |||||
Detached single-family homes [Member] | ||||||
Segment Reporting Information | ||||||
Home sale revenues | 4,800,000,000 | 4,500,000,000 | 3,600,000,000 | |||
Attached homes [Member] | ||||||
Segment Reporting Information | ||||||
Home sale revenues | 885,800,000 | 939,000,000 | 925,400,000 | |||
Home Office Relocation [Member] | ||||||
Segment Reporting Information | ||||||
Costs associated with the relocation of corporate headquarters | $16,300,000 | $15,400,000 |
Segment_Information_Operating_
Segment Information (Operating Data By Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
Homebuilding | $1,786,464 | $1,561,273 | $1,254,989 | $1,093,999 | $1,624,959 | $1,547,742 | $1,240,060 | $1,125,883 | $5,696,725 | $5,538,644 | $4,659,110 |
Financial Services | 36,093 | 33,452 | 31,198 | 24,895 | 30,380 | 34,336 | 39,362 | 36,873 | 125,638 | 140,951 | 160,888 |
Consolidated revenues | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 1,655,339 | 1,582,078 | 1,279,422 | 1,162,756 | 5,822,363 | 5,679,595 | 4,819,998 |
Income (loss) before income taxes: | |||||||||||
Homebuilding | 254,118 | 214,051 | 58,573 | 108,435 | 225,511 | 163,594 | 21,971 | 68,037 | 635,177 | 479,113 | 157,991 |
Consolidated income (loss) before income taxes | 267,120 | 224,928 | 67,681 | 130,029 | 232,420 | 174,722 | 38,330 | 82,350 | 689,758 | 527,822 | 183,554 |
Northeast [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 710,859 | 819,709 | 755,148 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 103,865 | 110,246 | 73,345 | ||||||||
Southeast [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 949,635 | 842,921 | 691,113 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 156,513 | 121,055 | 64,678 | ||||||||
Florida [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 917,956 | 802,665 | 628,997 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 190,441 | 139,673 | 73,472 | ||||||||
Texas [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 859,165 | 835,473 | 682,929 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 133,005 | 111,431 | 60,979 | ||||||||
North [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 1,436,500 | 1,232,814 | 1,022,633 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 197,230 | 164,348 | 84,597 | ||||||||
Southwest [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 822,610 | 1,005,062 | 878,290 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 136,357 | 179,163 | 79,887 | ||||||||
Other Homebuilding [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | -282,234 | -346,803 | -278,967 | ||||||||
Financial Services [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | $54,581 | $48,709 | $25,563 |
Segment_Information_LandRelate
Segment Information (Land-Related Charges By Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information | |||
Total land-related charges | $11,168 | $9,672 | $17,195 |
Northeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 2,824 | 557 | 1,794 |
Southeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 1,826 | 998 | 1,363 |
Florida [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 487 | 1,076 | 214 |
Texas [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 321 | 191 | 556 |
North [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 3,227 | 3,434 | 4,546 |
Southwest [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 816 | 472 | 2,254 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Total land-related charges | $1,667 | $2,944 | $6,468 |
Segment_Information_Depreciati
Segment Information (Depreciation and Amortization) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Depreciation and amortization: | |||
Depreciation and amortization | $39,864 | $31,587 | $30,027 |
Northeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 1,852 | 1,987 | 1,790 |
Southeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 2,666 | 1,647 | 1,028 |
Florida [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 2,150 | 1,334 | 1,640 |
Texas [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 1,698 | 1,784 | 1,619 |
North [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 4,414 | 2,265 | 1,709 |
Southwest [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 4,002 | 2,969 | 3,143 |
Other Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 19,548 | 16,248 | 16,168 |
Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 36,330 | 28,234 | 27,097 |
Financial Services [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | $3,534 | $3,353 | $2,930 |
Segment_Information_Equity_in_
Segment Information (Equity in (earnings) loss of unconsolidated entities) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | ($8,408) | ($1,130) | ($4,059) |
Northeast [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -4,733 | -58 | -4 |
Southeast [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Florida [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -7 | -4 | 0 |
Texas [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
North [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -2,417 | -608 | -1,497 |
Southwest [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -486 | -678 | -1,137 |
Other Homebuilding [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -583 | 355 | -1,235 |
Homebuilding [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | -8,226 | -993 | -3,873 |
Financial Services [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | ($182) | ($137) | ($186) |
Segment_Information_Total_Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information | |||
Homes under construction | $1,084,137 | $1,042,147 | $1,116,184 |
Land under development | 2,545,049 | 2,189,387 | 2,435,378 |
Raw land | 762,914 | 747,027 | 662,484 |
House and land inventory | 4,392,100 | 3,978,561 | 4,214,046 |
Total assets | 8,569,410 | 8,734,143 | 6,734,409 |
Northeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 184,974 | 212,611 | 198,549 |
Land under development | 266,229 | 325,241 | 445,436 |
Raw land | 106,077 | 106,681 | 109,136 |
House and land inventory | 557,280 | 644,533 | 753,121 |
Total assets | 659,224 | 731,259 | 866,024 |
Southeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 147,506 | 139,484 | 147,227 |
Land under development | 304,762 | 274,981 | 286,210 |
Raw land | 117,981 | 146,617 | 120,193 |
House and land inventory | 570,249 | 561,082 | 553,630 |
Total assets | 605,067 | 599,271 | 590,650 |
Florida [Member] | |||
Segment Reporting Information | |||
Homes under construction | 150,743 | 140,366 | 130,276 |
Land under development | 350,016 | 295,631 | 310,625 |
Raw land | 112,225 | 104,766 | 100,633 |
House and land inventory | 612,984 | 540,763 | 541,534 |
Total assets | 717,531 | 618,449 | 620,220 |
Texas [Member] | |||
Segment Reporting Information | |||
Homes under construction | 134,873 | 130,398 | 145,594 |
Land under development | 250,102 | 223,979 | 256,704 |
Raw land | 91,765 | 57,480 | 54,556 |
House and land inventory | 476,740 | 411,857 | 456,854 |
Total assets | 528,392 | 466,198 | 523,843 |
North [Member] | |||
Segment Reporting Information | |||
Homes under construction | 280,970 | 227,537 | 219,172 |
Land under development | 478,665 | 350,239 | 369,144 |
Raw land | 137,044 | 78,945 | 46,414 |
House and land inventory | 896,679 | 656,721 | 634,730 |
Total assets | 996,908 | 716,239 | 680,447 |
Southwest [Member] | |||
Segment Reporting Information | |||
Homes under construction | 166,056 | 159,350 | 226,204 |
Land under development | 698,513 | 512,164 | 496,488 |
Raw land | 163,421 | 201,659 | 167,295 |
House and land inventory | 1,027,990 | 873,173 | 889,987 |
Total assets | 1,113,592 | 940,462 | 963,540 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Homes under construction | 19,015 | 32,401 | 49,162 |
Land under development | 196,762 | 207,152 | 270,771 |
Raw land | 34,401 | 50,879 | 64,257 |
House and land inventory | 250,178 | 290,432 | 384,190 |
Total assets | 3,527,731 | 4,334,591 | 2,140,739 |
Homebuilding [Member] | |||
Segment Reporting Information | |||
Homes under construction | 1,084,137 | 1,042,147 | 1,116,184 |
Land under development | 2,545,049 | 2,189,387 | 2,435,378 |
Raw land | 762,914 | 747,027 | 662,484 |
House and land inventory | 4,392,100 | 3,978,561 | 4,214,046 |
Total assets | 8,148,445 | 8,406,469 | 6,385,463 |
Financial Services [Member] | |||
Segment Reporting Information | |||
Total assets | $420,965 | $327,674 | $348,946 |
Investments_In_Unconsolidated_2
Investments In Unconsolidated Entities (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity in earnings of unconsolidated entities | $8,408,000 | $1,130,000 | $4,059,000 |
Capital contributions made to unconsolidated entities | 9,000 | 1,677,000 | 16,456,000 |
Capital and earnings distributions received from unconsolidated entities | $13,100,000 | $3,100,000 | $10,500,000 |
Investments_In_Unconsolidated_3
Investments In Unconsolidated Entities (Summary Schedule Of Joint Ventures) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments in joint ventures with debt non-recourse to Company | $26,488 | $26,532 |
Investments in other active joint ventures | 13,880 | 18,791 |
Total investments in unconsolidated entities | 40,368 | 45,323 |
Total joint venture debt | 25,849 | 12,408 |
Company proportionate share of joint venture debt: | ||
Joint venture debt with limited recourse guaranties | 283 | 750 |
Joint venture debt non-recourse to Company | 11,341 | 3,654 |
Company's total proportionate share of joint venture debt | $11,624 | $4,404 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2015 | Mar. 31, 2015 | Jul. 23, 2014 | Sep. 08, 2014 | Jun. 01, 2015 | Feb. 02, 2015 | |
Debt Instrument | ||||||||||
Long-term debt principal total | $1,826,239,000 | |||||||||
Long-term debt, maturities, repayments of principal, 2015 | 238,000,000 | |||||||||
Long-term debt, maturities, repayments of principal, 2016 | 465,200,000 | |||||||||
Long-term debt, maturities, repayments of principal, 2017 | 123,000,000 | |||||||||
Long-term debt, maturities, repayments of principal, 2018 | 0 | |||||||||
Long-term debt, maturities, repayments of principal, 2019 | 0 | |||||||||
Long-term debt, maturities, repayments of principal, thereafter | 1,000,000,000 | |||||||||
Extinguishment of debt, amount | 245,700,000 | 461,400,000 | 592,400,000 | |||||||
Loss on debt retirements | 8,584,000 | 8,584,000 | 26,930,000 | 32,071,000 | ||||||
Letters of credit outstanding, amount | 212,100,000 | 183,100,000 | ||||||||
Notes Payable | 22,255,000 | 7,521,000 | ||||||||
Debt Instrument, Term | 6 years | |||||||||
Financial Services debt | 140,241,000 | 105,664,000 | ||||||||
Maximum [Member] | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||
Unsecured Letter Of Credit Facility [Member] | ||||||||||
Debt Instrument | ||||||||||
Letters of credit outstanding, amount | 208,400,000 | |||||||||
Letter Of Credit [Member] | ||||||||||
Debt Instrument | ||||||||||
Letters of credit outstanding, amount | 3,700,000 | 58,700,000 | ||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument | ||||||||||
Maximum borrowing capacity | 500,000,000 | |||||||||
Line of Credit, Current | 0 | |||||||||
Line of Credit Facility, Initiation Date | 23-Jul-14 | |||||||||
Line of Credit Facility, Expiration Date | 21-Jul-17 | |||||||||
Revolving Credit Facility Accordion Feature [Member] | ||||||||||
Debt Instrument | ||||||||||
Maximum borrowing capacity | 1,000,000,000 | |||||||||
Financial Services [Member] | ||||||||||
Debt Instrument | ||||||||||
Maximum borrowing capacity | 150,000,000 | 150,000,000 | 150,000,000 | |||||||
Financial Services [Member] | Unsecured Letter Of Credit Facility [Member] | ||||||||||
Debt Instrument | ||||||||||
Line of Credit Facility, Expiration Date | 1-Sep-14 | |||||||||
Financial Services [Member] | Repurchase Agreement [Member] | ||||||||||
Debt Instrument | ||||||||||
Maximum borrowing capacity | 150,000,000 | |||||||||
Line of Credit Facility, Initiation Date | 8-Sep-14 | |||||||||
Line of Credit Facility, Expiration Date | 7-Sep-15 | |||||||||
Financial Services debt | 140,200,000 | 105,700,000 | ||||||||
Financial Services [Member] | Repurchase Agreement [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument | ||||||||||
Maximum borrowing capacity | $150,000,000 | $99,800,000 | ||||||||
Line of Credit Facility, Initiation Date | 1-Jun-15 | 2-Feb-15 |
Debt_Summary_Of_Companys_Senio
Debt (Summary Of Company's Senior Notes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument | ||
Senior note carrying value | $1,818,561 | $2,058,168 |
Estimated fair value | 1,952,774 | 2,070,744 |
Unsecured Senior Notes 5.20% Due February 2015 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 0 | 95,633 |
Debt instrument, interest rate, stated percentage | 5.20% | 5.20% |
Debt instrument, maturity date, description | Feb-15 | Feb-15 |
Unsecured Senior Notes 5.25% Due June 2015 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 236,452 | 233,085 |
Debt instrument, interest rate, stated percentage | 5.25% | 5.25% |
Debt instrument, maturity date, description | Jun-15 | Jun-15 |
Unsecured Senior Notes 6.50% Due May 2016 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 462,009 | 459,581 |
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% |
Debt instrument, maturity date, description | May-16 | May-16 |
Unsecured Senior Notes 7.625% Due October 2017 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 122,752 | 122,663 |
Debt instrument, interest rate, stated percentage | 7.63% | 7.63% |
Debt instrument, maturity date, description | Oct-17 | Oct-17 |
Unsecured Senior Notes 7.875% Due June 2032 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 299,239 | 299,196 |
Debt instrument, interest rate, stated percentage | 7.88% | 7.88% |
Debt instrument, maturity date, description | Jun-32 | Jun-32 |
Unsecured Senior Notes 6.375% Due May 2033 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 398,640 | 398,567 |
Debt instrument, interest rate, stated percentage | 6.38% | 6.38% |
Debt instrument, maturity date, description | May-33 | May-33 |
Unsecured Senior Notes 6.00% Due February 2035 [Member] | ||
Debt Instrument | ||
Senior note carrying value | 299,469 | 299,443 |
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% |
Debt instrument, maturity date, description | Feb-35 | Feb-35 |
Unsecured Senior Notes 7.375% Due June 2046 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $0 | $150,000 |
Debt instrument, interest rate, stated percentage | 7.38% | 7.38% |
Debt instrument, maturity date, description | Jun-46 | Jun-46 |
Debt_Aggregate_Borrowing_Infor
Debt (Aggregate Borrowing Information) (Details) (Financial Services [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Services [Member] | |||
Line of Credit Facility [Line Items] | |||
Available credit lines | $150,000,000 | $150,000,000 | $150,000,000 |
Unused credit lines | $9,759,000 | $44,336,000 | $11,205,000 |
Weighted-average interest rate | 2.70% | 2.90% | 3.00% |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | |||||||||
Cash dividends declared (usd per share) | $0.08 | $0.05 | $0.05 | $0.05 | $0.05 | $0.10 | $0.23 | $0.15 | $0 |
Dividends declared | $86,370,000 | $57,530,000 | |||||||
Stock Repurchase Program, Authorized Amount | 750,000,000 | 750,000,000 | |||||||
Stock repurchases | 253,019,000 | 127,661,000 | 961,000 | ||||||
Share repurchase plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Remaining value of stock repurchase programs authorization | 738,500,000 | 738,500,000 | |||||||
Shares repurchased under authorized repurchase programs | 12,900 | 7,200 | 0 | ||||||
Stock repurchases | 245,800,000 | 118,052,000 | 0 | ||||||
Shares withheld to pay taxes [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchases | $7,200,000 | $9,600,000 | $1,000,000 |
Stock_Compensation_Plans_Narra
Stock Compensation Plans Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum period stock options, appreciation rights, restricted stock, and restricted stock units can be granted | 10 years | ||
Number of shares available for grant | 23,500,000 | ||
Number of Years Stock Options are Exercisable After Grant Date | 10 years | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 4 years | ||
Unrecognized stock compensation expense | $0 | ||
Aggregate instrinsic value of stock options exercised | 14.1 | 10.8 | 8.6 |
Intrinsic value of outstanding stock options | 48.8 | ||
Intrinsic value of exercisable stock options | 47.3 | ||
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | 0.2 | ||
Weighted average period in which stock based compensation costs are expensed | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units outstanding vested but not yet paid | 75,080 | ||
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | 13.9 | ||
Weighted average period in which stock based compensation costs are expensed | 2 years | ||
Restricted stock shares vested during period, total fair value | 8.1 | 12.7 | 3.7 |
Field long-term compensation plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Long-term incentive plan liability | 9.5 | 12.6 | |
Senior management long-term compensation plan [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Long-term incentive plan liability | $26.20 | $14.30 | |
Stock compensation plan price floor | $5 |
Stock_Compensation_Plans_Expen
Stock Compensation Plans (Expense by plan type) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $29,292 | $30,480 | $22,897 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 121 | 1,056 | 2,617 |
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,690 | 13,418 | 10,077 |
Long-term incentive plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $15,481 | $16,006 | $10,203 |
Stock_Compensation_Plans_Stock
Stock Compensation Plans (Stock Option Activity Rollforward) (Details) (Stock options [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options [Member] | |||
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of year | 12,887 | 17,148 | 21,641 |
Granted | 0 | 0 | 0 |
Exercised | -1,422 | -1,432 | -2,877 |
Forfeited | -2,095 | -2,829 | -1,616 |
Outstanding, end of year | 9,370 | 12,887 | 17,148 |
Options exercisable at year end | 9,265 | 12,402 | 15,719 |
Weighted-average per share fair value of options granted during the year | $0 | $0 | $0 |
Outstanding, weighted-average per share exercise price, beginning of year | $23 | $22 | $21 |
Granted, weighted-average per share exercise price | $0 | $0 | $0 |
Exercised, weighted-average per share exercise price | $11 | $14 | $11 |
Forfeited, weighted-average per share exercise price | $29 | $25 | $27 |
Options outstanding, weighted-average per share exercise price, end of year | $23 | $23 | $22 |
Options exercisable at year end, weighted-average per share exercise price | $23 | $23 | $23 |
Stock_Compensation_Plans_Weigh
Stock Compensation Plans (Weighted-average remaining contractual lives of stock options outstanding) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 9,370 |
Options outstanding - weighted average per share exercise price | $23 |
Options exercisable - number exercisable | 9,265 |
Options exercisable - weighted average per share exercise price | $23 |
Weighted average remaining contractual term | 3 years |
$0.01 to $11.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 907 |
Options outstanding - weighted average per share exercise price | $10 |
Options exercisable - number exercisable | 802 |
Options exercisable - weighted average per share exercise price | $10 |
Exercise price range, lower range limit | $0.01 |
Exercise price range, upper range limit | $11 |
Weighted average remaining contractual term | 4 years |
$11.01 to $18.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 4,003 |
Options outstanding - weighted average per share exercise price | $12 |
Options exercisable - number exercisable | 4,003 |
Options exercisable - weighted average per share exercise price | $12 |
Exercise price range, lower range limit | $11.01 |
Exercise price range, upper range limit | $18 |
Weighted average remaining contractual term | 4 years 7 months 6 days |
$18.01 to $25.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 417 |
Options outstanding - weighted average per share exercise price | $23 |
Options exercisable - number exercisable | 417 |
Options exercisable - weighted average per share exercise price | $23 |
Exercise price range, lower range limit | $18.01 |
Exercise price range, upper range limit | $25 |
Weighted average remaining contractual term | 3 months 18 days |
$25.01 to $35.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 1,997 |
Options outstanding - weighted average per share exercise price | $34 |
Options exercisable - number exercisable | 1,997 |
Options exercisable - weighted average per share exercise price | $34 |
Exercise price range, lower range limit | $25.01 |
Exercise price range, upper range limit | $35 |
Weighted average remaining contractual term | 1 year 10 months 24 days |
$35.01 to $45.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | 2,046 |
Options outstanding - weighted average per share exercise price | $40 |
Options exercisable - number exercisable | 2,046 |
Options exercisable - weighted average per share exercise price | $40 |
Exercise price range, lower range limit | $35.01 |
Exercise price range, upper range limit | $45 |
Weighted average remaining contractual term | 0 years 10 months 24 days |
Stock_Compensation_Plans_Restr
Stock Compensation Plans (Restricted Stock, RSUs and Performance Shares Activity Rollforward) (Details) (Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Restricted Stock, RSUs and Performance Shares Activity [Roll Forward] | |||
Outstanding, beginning of year | 3,211 | 3,822 | 3,042 |
Granted | 974 | 806 | 1,461 |
Vested | -1,019 | -1,391 | -544 |
Forfeited | -276 | -26 | -137 |
Outstanding, end of year | 2,890 | 3,211 | 3,822 |
Vested, end of year | 75 | 60 | 51 |
Outstanding, beginning of year, weighted-average per share grant date fair value | $11 | $9 | $9 |
Granted, weighted-average per share grant date fair value | $19 | $21 | $10 |
Vested, weighted-average per share grant date fair value | $10 | $11 | $11 |
Forfeited, weighted-average per share grant date fair value | $15 | $15 | $10 |
Outstanding, end of year, weighted-average per share grant date fair value | $15 | $11 | $9 |
Vested, end of year, weighted-average per share grant date fair value | $13 | $12 | $10 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | |||||||
Gross federal NOL carryforward | $1,500,000,000 | $1,500,000,000 | |||||
Section 382 limitation amount per year | 67,400,000 | ||||||
Section 382 limitation period | 60 months | ||||||
Valuation allowance adjustment | 49,600,000 | 73,700,000 | 2,100,000,000 | 45,600,000 | |||
Deferred Income Tax Expense (Benefit) | 223,769,000 | -2,096,423,000 | 0 | ||||
Gross unrecognized tax benefits | 32,911,000 | 173,310,000 | 32,911,000 | 173,310,000 | 170,425,000 | 171,863,000 | |
Unrecognized tax benefits that would impact effective tax rate | 21,400,000 | 21,500,000 | 21,400,000 | 21,500,000 | |||
Income tax liabilities | 48,722,000 | 206,015,000 | 48,722,000 | 206,015,000 | |||
Possible decrease in unrecognized tax benefits | 4,100,000 | 4,100,000 | |||||
Unrecognized tax benefits, income tax penalties and interest accrued | 17,300,000 | 33,100,000 | 17,300,000 | 33,100,000 | |||
Unrecognized tax benefits, income tax penalties and interest expense | $15,800,000 | ($3,000,000) | |||||
Minimum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 5 years | ||||||
Operating loss carryforwards, expiration dates | 1-Jan-14 | ||||||
Income tax examination, year(s) under examination | 2004 | ||||||
Maximum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 20 years | ||||||
Operating loss carryforwards, expiration dates | 1-Jan-34 | ||||||
Income tax examination, year(s) under examination | 2014 |
Income_Taxes_Components_of_cur
Income Taxes Components of current and deferred income tax expense (benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision (benefit) | |||||||||||
Federal | $5,619 | $5,725 | ($8,523) | ||||||||
State and other | -13,968 | -1,596 | -14,068 | ||||||||
Current Income Tax Expense (Benefit) | -8,349 | 4,129 | -22,591 | ||||||||
Deferred provision (benefit) | |||||||||||
Federal | 232,969 | -1,833,580 | 0 | ||||||||
State and other | -9,200 | -262,843 | 0 | ||||||||
Deferred Income Tax Expense (Benefit) | 223,769 | -2,096,423 | 0 | ||||||||
Income tax expense (benefit) | $50,025 | $84,383 | $25,801 | $55,210 | $12,367 | ($2,107,162) | $1,913 | $588 | $215,420 | ($2,092,294) | ($22,591) |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of statutory federal income tax rate to effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate | 35.00% | 35.00% | 35.00% |
Effect of state and local income taxes, net of federal tax | 3.00% | 4.00% | 3.00% |
Deferred tax asset valuation allowance | -6.60% | -438.00% | -37.70% |
Tax contingencies | -1.40% | 0.30% | -10.60% |
Other | 1.20% | 2.30% | -2.00% |
Effective rate | 31.20% | -396.40% | -12.30% |
Income_Taxes_Net_deferred_tax_
Income Taxes Net deferred tax asset (liability) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets [Abstract] | ||
Non-deductible reserves and other | $445,128 | $475,730 |
Inventory valuation reserves | 599,763 | 770,566 |
Net operating loss (NOL) carryforwards: | ||
Federal | 515,568 | 726,398 |
State | 257,738 | 292,195 |
Alternative minimum tax credits | 34,812 | 28,683 |
Energy credit and charitable contribution carryforward | 27,858 | 39,978 |
Deferred Tax Assets, Gross | 1,880,867 | 2,333,550 |
Deferred Tax Liabilities [Abstract] | ||
Capitalized items, including real estate basis differences, deducted for tax, net | -31,584 | -39,449 |
Trademarks and tradenames | -46,362 | -50,047 |
Deferred Tax Liabilities, Gross | -77,946 | -89,496 |
Valuation allowance | -82,253 | -157,300 |
Net deferred tax asset (liability) | $1,720,668 | $2,086,754 |
Income_Taxes_Reconciliation_of1
Income Taxes Reconciliation of the change in unrecognized tax benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the change in unrecognized tax benefits [Roll Forward] | |||
Unrecognized Tax Benefits, beginning of period | $173,310 | $170,425 | $171,863 |
Increases related to tax positions taken during a prior period | 0 | 12,877 | 8,782 |
Decreases related to tax positions taken during a prior period | -133,883 | -7,502 | -9,373 |
Increases related to tax positions taken during the current period | 237 | 381 | 11,797 |
Decreases related to settlements with taxing authorities | -6,753 | -1,434 | 0 |
Reductions as a result of a lapse of the statute of limitations | 0 | -1,437 | -12,644 |
Unrecognized Tax Benefits, end of period | $32,911 | $173,310 | $170,425 |
Fair_Value_Disclosures_Fair_Va1
Fair Value Disclosures Fair Value Disclosures (Narrative) (Details) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Senior notes | $1,818,561 | $2,058,168 |
Fair_Value_Disclosures_Fair_Va2
Fair Value Disclosures Fair Value Disclosures (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosed at fair value: | ||
Senior notes, fair value | $1,952,774 | $2,070,744 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash), fair value | 1,309,220 | 1,653,044 |
Fair Value, Inputs, Level 2 [Member] | ||
Disclosed at fair value: | ||
Financial Services debt, fair value | 140,241 | 105,664 |
Senior notes, fair value | 1,952,774 | 2,070,744 |
House and land inventory [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure, Nonrecurring | 13,925 | 0 |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 4,248 | 3,139 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | -3,574 | 4,340 |
Whole Loan Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | -588 | 105 |
Residential Mortgage [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | $339,531 | $287,933 |
Other_Assets_and_Accrued_and_O3
Other Assets and Accrued and Other Liabilities (Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets and Accrued and Other Liabilities [Abstract] | ||
Insurance receivables | $60,598 | $51,764 |
Notes receivable | 30,699 | 32,944 |
Other receivables | 63,867 | 52,720 |
Accounts and notes receivable | 155,164 | 137,428 |
Prepaid expenses | 72,585 | 65,965 |
Deposits and pre-acquisition Costs | 127,280 | 91,034 |
Property and equipment, net | 75,219 | 53,051 |
Income taxes receivable | 21,330 | 35,437 |
Other | 61,454 | 77,706 |
Other Assets | $513,032 | $460,621 |
Other_Assets_and_Accrued_and_O4
Other Assets and Accrued and Other Liabilities (Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other Assets and Accrued and Other Liabilities [Abstract] | ||||
Self-insurance liabilities | $710,245 | $668,100 | $721,284 | $739,029 |
Loan origination liabilities | 58,222 | 124,956 | 164,280 | 128,330 |
Compensation-related | 142,586 | 171,686 | ||
Warranty | 65,389 | 63,992 | 64,098 | 68,025 |
Community development district obligations | 17,122 | 26,124 | ||
Liability for land, not owned, under option agreements | 30,186 | 24,024 | ||
Accrued interest | 20,446 | 22,283 | ||
Notes Payable | 22,255 | 7,521 | ||
Other | 277,323 | 269,064 | ||
Accrued and other liabilities | $1,343,774 | $1,377,750 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
claim | claim | ||||||
Loss Contingencies [Line Items] | |||||||
Loss Contingency, Pending Claims, Number | 1,000 | 1,000 | |||||
Loss Contingency Accrual, Period Increase (Decrease) | $18,600,000 | ($49,000,000) | |||||
Adjustment to self insurance reserves | -15,200,000 | 84,500,000 | 69,300,000 | ||||
Future minimum sublease rental income | 5,300,000 | 5,300,000 | |||||
Operating lease rent expense | 25,300,000 | 23,000,000 | 24,200,000 | ||||
Accrued liabilities for outstanding community development district obligations | 17,122,000 | 17,122,000 | 26,124,000 | ||||
Letters of credit outstanding, amount | 212,100,000 | 212,100,000 | 183,100,000 | ||||
Surety Bonds Outstanding | 1,000,000,000 | 1,000,000,000 | 958,300,000 | ||||
Charges related to contractual dispute | 41,200,000 | ||||||
Maximum product warranty in years | 10 years | ||||||
Self-insurance liabilities | 710,245,000 | 710,245,000 | 668,100,000 | 721,284,000 | 739,029,000 | ||
Incurred but not reported percentage of liability reserves | 72.00% | 72.00% | 78.00% | ||||
Residential mortgage backed securities known [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Residential mortgage-backed securities principal sold in previous period | 162,000,000 | ||||||
Residential mortgage backed securities other [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Residential mortgage-backed securities principal sold in previous period | $116,000,000 | $116,000,000 |
Recovered_Sheet2
Commitments and Contingencies Commitments And Contingencies (Future minimum operating lease payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Years Ending December 31, | |
Future minimum lease payments - 2015 | $28,744 |
Future minimum lease payments - 2016 | 25,713 |
Future minimum lease payments - 2017 | 18,817 |
Future minimum lease payments - 2018 | 14,870 |
Future minimum lease payments - 2019 | 12,846 |
Future minimum lease payments - Thereafter | 42,733 |
Future minimum lease payments - Total | $143,723 |
Commitments_And_Contingencies_3
Commitments And Contingencies (Changes To Anticipated Loan Losses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in loan origination liability [Roll Forward] | |||
Liabilities, beginning of period | $124,956 | $164,280 | $128,330 |
Reserves provided | -18,604 | 0 | 49,025 |
Payments | -48,130 | -39,324 | -13,075 |
Liabilities, end of period | $58,222 | $124,956 | $164,280 |
Commitments_And_Contingencies_4
Commitments And Contingencies (Changes To Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes to warranty liabilities [Roll Forward] | |||
Warranty liabilities, beginning of period | $63,992 | $64,098 | $68,025 |
Warranty reserves provided | 51,348 | 49,399 | 45,705 |
Payments | -47,968 | -44,925 | -45,365 |
Other adjustments | -1,983 | -4,580 | -4,267 |
Warranty liabilities, end of period | $65,389 | $63,992 | $64,098 |
Commitments_And_Contingencies_5
Commitments And Contingencies (Changes in Self-insurance Liability) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance Related Expenses [Roll Forward] | |||
Balance, beginning of period | $668,100 | $721,284 | $739,029 |
Reserves provided | 141,790 | 64,737 | 54,262 |
Payments | -99,645 | -117,921 | -72,007 |
Balance, end of period | $710,245 | $668,100 | $721,284 |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information (Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and equivalents | $1,292,862 | $1,580,329 | $1,404,760 | $1,083,071 |
Restricted cash | 16,358 | 72,715 | ||
House and land inventory | 4,392,100 | 3,978,561 | 4,214,046 | |
Land held for sale | 101,190 | 61,735 | ||
Land, not owned, under option agreements | 30,186 | 24,024 | ||
Residential mortgage loans available-for-sale | 339,531 | 287,933 | ||
Securities purchased under agreements to resell | 0 | |||
Investments in unconsolidated entities | 40,368 | 45,323 | ||
Other assets | 513,032 | 460,621 | ||
Intangible assets | 123,115 | 136,148 | ||
Deferred tax assets, net | 1,720,668 | 2,086,754 | ||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | ||
Total assets | 8,569,410 | 8,734,143 | 6,734,409 | |
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,756,932 | 1,715,344 | ||
Income tax liabilities | 48,722 | 206,015 | ||
Financial Services debt | 140,241 | 105,664 | ||
Senior notes | 1,818,561 | 2,058,168 | ||
Total liabilities | 3,764,456 | 4,085,191 | ||
Total shareholders' equity | 4,804,954 | 4,648,952 | 2,189,616 | 1,938,615 |
Total liabilities and shareholders' equity | 8,569,410 | 8,734,143 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and equivalents | 7,454 | 262,364 | 146,168 | 119,287 |
Restricted cash | 3,710 | 58,699 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Land, not owned, under option agreements | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Securities purchased under agreements to resell | 22,000 | |||
Investments in unconsolidated entities | 74 | 68 | ||
Other assets | 34,214 | 50,251 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 1,712,853 | 2,074,137 | ||
Investments in subsidiaries and intercompany accounts, net | 4,963,831 | 4,532,950 | ||
Total assets | 6,744,136 | 6,978,469 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 71,874 | 65,334 | ||
Income tax liabilities | 48,747 | 206,015 | ||
Financial Services debt | 0 | 0 | ||
Senior notes | 1,818,561 | 2,058,168 | ||
Total liabilities | 1,939,182 | 2,329,517 | ||
Total shareholders' equity | 4,804,954 | 4,648,952 | ||
Total liabilities and shareholders' equity | 6,744,136 | 6,978,469 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 1,157,307 | 1,188,999 | 1,063,943 | 875,561 |
Restricted cash | 1,513 | 2,635 | ||
House and land inventory | 4,391,445 | 3,977,851 | ||
Land held for sale | 100,156 | 60,701 | ||
Land, not owned, under option agreements | 30,186 | 24,024 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Securities purchased under agreements to resell | 0 | |||
Investments in unconsolidated entities | 36,126 | 41,319 | ||
Other assets | 421,145 | 359,228 | ||
Intangible assets | 123,115 | 136,148 | ||
Deferred tax assets, net | 15 | 17 | ||
Investments in subsidiaries and intercompany accounts, net | 967,032 | -16,513 | ||
Total assets | 7,228,040 | 5,774,409 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,514,954 | 1,413,752 | ||
Income tax liabilities | -25 | 0 | ||
Financial Services debt | 0 | 0 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 1,514,929 | 1,413,752 | ||
Total shareholders' equity | 5,713,111 | 4,360,657 | ||
Total liabilities and shareholders' equity | 7,228,040 | 5,774,409 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 128,101 | 128,966 | 194,649 | 88,223 |
Restricted cash | 11,135 | 11,381 | ||
House and land inventory | 655 | 710 | ||
Land held for sale | 1,034 | 1,034 | ||
Land, not owned, under option agreements | 0 | 0 | ||
Residential mortgage loans available-for-sale | 339,531 | 287,933 | ||
Securities purchased under agreements to resell | -22,000 | |||
Investments in unconsolidated entities | 4,168 | 3,936 | ||
Other assets | 57,673 | 51,142 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 7,800 | 12,600 | ||
Investments in subsidiaries and intercompany accounts, net | 6,359,441 | 5,939,784 | ||
Total assets | 6,887,538 | 6,437,486 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 170,104 | 236,258 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 140,241 | 105,664 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 310,345 | 341,922 | ||
Total shareholders' equity | 6,577,193 | 6,095,564 | ||
Total liabilities and shareholders' equity | 6,887,538 | 6,437,486 | ||
Eliminating Entries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Land, not owned, under option agreements | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Securities purchased under agreements to resell | 0 | |||
Investments in unconsolidated entities | 0 | 0 | ||
Other assets | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | -12,290,304 | -10,456,221 | ||
Total assets | -12,290,304 | -10,456,221 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 0 | 0 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total shareholders' equity | -12,290,304 | -10,456,221 | ||
Total liabilities and shareholders' equity | ($12,290,304) | ($10,456,221) |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information (Statement Of Operations and Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding | |||||||||||
Home sale revenues | $5,662,171 | $5,424,309 | $4,552,412 | ||||||||
Land sale revenues | 34,554 | 114,335 | 106,698 | ||||||||
Total homebuilding revenues | 1,786,464 | 1,561,273 | 1,254,989 | 1,093,999 | 1,624,959 | 1,547,742 | 1,240,060 | 1,125,883 | 5,696,725 | 5,538,644 | 4,659,110 |
Financial Services | 36,093 | 33,452 | 31,198 | 24,895 | 30,380 | 34,336 | 39,362 | 36,873 | 125,638 | 140,951 | 160,888 |
Total revenues | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 1,655,339 | 1,582,078 | 1,279,422 | 1,162,756 | 5,822,363 | 5,679,595 | 4,819,998 |
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 4,343,249 | 4,310,528 | 3,833,451 | ||||||||
Land sale cost of revenues | 23,748 | 104,426 | 94,880 | ||||||||
Total cost of revenues | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 1,249,868 | 1,230,070 | 1,011,528 | 923,488 | 4,366,997 | 4,414,954 | 3,928,331 |
Financial Services expenses | 71,239 | 92,379 | 135,511 | ||||||||
Selling, general, and administrative expenses | 667,815 | 568,500 | 514,457 | ||||||||
Other expense, net | 38,745 | 80,753 | 66,298 | ||||||||
Interest income | -4,632 | -4,395 | -4,913 | ||||||||
Interest expense | 849 | 712 | 819 | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Equity in (earnings) loss of unconsolidated entities | -8,408 | -1,130 | -4,059 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 689,758 | 527,822 | 183,554 | ||||||||
Income tax expense (benefit) | 50,025 | 84,383 | 25,801 | 55,210 | 12,367 | -2,107,162 | 1,913 | 588 | 215,420 | -2,092,294 | -22,591 |
Income (loss) before equity in income (loss) of subsidiaries | 474,338 | 2,620,116 | 206,145 | ||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 217,095 | 140,545 | 41,880 | 74,819 | 220,053 | 2,281,884 | 36,417 | 81,762 | 474,338 | 2,620,116 | 206,145 |
Other comprehensive income (loss) | 105 | 197 | 314 | ||||||||
Comprehensive income | 474,443 | 2,620,313 | 206,459 | ||||||||
Parent Company [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 784 | 832 | 379 | ||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense, net | 8,521 | 26,870 | 32,027 | ||||||||
Interest income | -337 | -349 | -229 | ||||||||
Interest expense | 849 | 712 | 819 | ||||||||
Intercompany interest | 9,800 | 17,518 | 587,281 | ||||||||
Equity in (earnings) loss of unconsolidated entities | -7 | 1,461 | -1 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | -19,610 | -47,044 | -620,276 | ||||||||
Income tax expense (benefit) | -7,473 | -2,113,827 | 426 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | -12,137 | 2,066,783 | -620,702 | ||||||||
Equity in income (loss) of subsidiaries | 486,475 | 553,333 | 826,847 | ||||||||
Net income | 474,338 | 2,620,116 | 206,145 | ||||||||
Other comprehensive income (loss) | 105 | 197 | 314 | ||||||||
Comprehensive income | 474,443 | 2,620,313 | 206,459 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 5,662,171 | 5,424,309 | 4,552,412 | ||||||||
Land sale revenues | 34,554 | 114,335 | 106,698 | ||||||||
Total homebuilding revenues | 5,696,725 | 5,538,644 | 4,659,110 | ||||||||
Financial Services | 889 | 2,353 | 2,082 | ||||||||
Total revenues | 5,697,614 | 5,540,997 | 4,661,192 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 4,343,249 | 4,310,528 | 3,833,451 | ||||||||
Land sale cost of revenues | 23,748 | 104,426 | 94,880 | ||||||||
Total cost of revenues | 4,366,997 | 4,414,954 | 3,928,331 | ||||||||
Financial Services expenses | -130 | 970 | 567 | ||||||||
Selling, general, and administrative expenses | 661,308 | 573,904 | 515,283 | ||||||||
Other expense, net | 29,273 | 49,681 | 33,506 | ||||||||
Interest income | -4,244 | -3,954 | -4,597 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Intercompany interest | -90 | -8,260 | -573,852 | ||||||||
Equity in (earnings) loss of unconsolidated entities | -8,182 | -1,783 | -3,555 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 652,682 | 515,485 | 765,509 | ||||||||
Income tax expense (benefit) | 201,332 | -799 | -22,299 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 451,350 | 516,284 | 787,808 | ||||||||
Equity in income (loss) of subsidiaries | 38,534 | 35,086 | 34,596 | ||||||||
Net income | 489,884 | 551,370 | 822,404 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 489,884 | 551,370 | 822,404 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 124,749 | 138,598 | 158,806 | ||||||||
Total revenues | 124,749 | 138,598 | 158,806 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 70,585 | 90,577 | 134,565 | ||||||||
Selling, general, and administrative expenses | 6,507 | -5,404 | -826 | ||||||||
Other expense, net | 951 | 4,202 | 765 | ||||||||
Interest income | -51 | -92 | -87 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Intercompany interest | -9,710 | -9,258 | -13,429 | ||||||||
Equity in (earnings) loss of unconsolidated entities | -219 | -808 | -503 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 56,686 | 59,381 | 38,321 | ||||||||
Income tax expense (benefit) | 21,561 | 22,332 | -718 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 35,125 | 37,049 | 39,039 | ||||||||
Equity in income (loss) of subsidiaries | 403,505 | 485,400 | 476,806 | ||||||||
Net income | 438,630 | 522,449 | 515,845 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 438,630 | 522,449 | 515,845 | ||||||||
Eliminating Entries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Equity in (earnings) loss of unconsolidated entities | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in income (loss) of subsidiaries | -928,514 | -1,073,819 | -1,338,249 | ||||||||
Net income | -928,514 | -1,073,819 | -1,338,249 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | ($928,514) | ($1,073,819) | ($1,338,249) |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net cash provided by (used in) operating activities | $309,249,000 | $881,136,000 | $760,140,000 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | 8,157,000 | 1,001,000 | 3,029,000 |
Investments in unconsolidated entities | -9,000 | -1,677,000 | -16,456,000 |
Net change in loans held for investment | 335,000 | -12,265,000 | 836,000 |
Change in restricted cash related to letters of credit | 54,989,000 | -4,152,000 | 28,653,000 |
Proceeds from the sale of property and equipment | 113,000 | 15,000 | 7,586,000 |
Capital expenditures | -48,790,000 | -28,899,000 | -13,942,000 |
Cash used for business acquisition | -82,419,000 | 0 | 0 |
Net cash provided by (used in) investing activities | -67,624,000 | -45,977,000 | 9,706,000 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 34,577,000 | -33,131,000 | 138,795,000 |
Other borrowings (repayments) | -250,631,000 | -479,827,000 | -618,800,000 |
Stock option exercises | 15,627,000 | 19,411,000 | 32,809,000 |
Stock repurchases | -253,019,000 | -127,661,000 | -961,000 |
Dividends paid | -75,646,000 | -38,382,000 | 0 |
Intercompany activities, net | 0 | 0 | 0 |
Net cash used in financing activities | -529,092,000 | -659,590,000 | -448,157,000 |
Net increase (decrease) in cash and equivalents | -287,467,000 | 175,569,000 | 321,689,000 |
Cash and equivalents at beginning of period | 1,580,329,000 | 1,404,760,000 | 1,083,071,000 |
Cash and equivalents at end of period | 1,292,862,000 | 1,580,329,000 | 1,404,760,000 |
Parent Company [Member] | |||
Net cash provided by (used in) operating activities | 206,485,000 | -41,000 | -582,762,000 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | 0 | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 | 0 |
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 54,989,000 | -4,152,000 | 28,653,000 |
Proceeds from the sale of property and equipment | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Net cash provided by (used in) investing activities | 54,989,000 | -4,152,000 | 28,653,000 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | 0 |
Other borrowings (repayments) | -249,765,000 | -485,048,000 | -620,700,000 |
Stock option exercises | 15,627,000 | 19,411,000 | 32,809,000 |
Stock repurchases | -253,019,000 | -127,661,000 | -961,000 |
Dividends paid | -75,646,000 | -38,382,000 | |
Intercompany activities, net | 46,419,000 | 752,069,000 | 1,169,842,000 |
Net cash used in financing activities | -516,384,000 | 120,389,000 | 580,990,000 |
Net increase (decrease) in cash and equivalents | -254,910,000 | 116,196,000 | 26,881,000 |
Cash and equivalents at beginning of period | 262,364,000 | 146,168,000 | 119,287,000 |
Cash and equivalents at end of period | 7,454,000 | 262,364,000 | 146,168,000 |
Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | 175,415,000 | 865,267,000 | 1,332,342,000 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | 8,161,000 | 1,001,000 | 3,029,000 |
Investments in unconsolidated entities | 0 | -1,677,000 | -16,456,000 |
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Proceeds from the sale of property and equipment | 113,000 | 15,000 | 7,586,000 |
Capital expenditures | -44,956,000 | -26,472,000 | -10,831,000 |
Cash used for business acquisition | -82,419,000 | ||
Net cash provided by (used in) investing activities | -119,101,000 | -27,133,000 | -16,672,000 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | 0 |
Other borrowings (repayments) | -866,000 | 5,221,000 | 1,900,000 |
Stock option exercises | 0 | 0 | 0 |
Stock repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | |
Intercompany activities, net | -87,140,000 | -718,299,000 | -1,129,188,000 |
Net cash used in financing activities | -88,006,000 | -713,078,000 | -1,127,288,000 |
Net increase (decrease) in cash and equivalents | -31,692,000 | 125,056,000 | 188,382,000 |
Cash and equivalents at beginning of period | 1,188,999,000 | 1,063,943,000 | 875,561,000 |
Cash and equivalents at end of period | 1,157,307,000 | 1,188,999,000 | 1,063,943,000 |
Non-Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | -72,651,000 | 15,910,000 | 10,560,000 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | -4,000 | 0 | 0 |
Investments in unconsolidated entities | -9,000 | 0 | 0 |
Net change in loans held for investment | 335,000 | -12,265,000 | 836,000 |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Proceeds from the sale of property and equipment | 0 | 0 | 0 |
Capital expenditures | -3,834,000 | -2,427,000 | -3,111,000 |
Cash used for business acquisition | 0 | ||
Net cash provided by (used in) investing activities | -3,512,000 | -14,692,000 | -2,275,000 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 34,577,000 | -33,131,000 | 138,795,000 |
Other borrowings (repayments) | 0 | 0 | |
Stock option exercises | 0 | 0 | 0 |
Stock repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | |
Intercompany activities, net | 40,721,000 | -33,770,000 | -40,654,000 |
Net cash used in financing activities | 75,298,000 | -66,901,000 | 98,141,000 |
Net increase (decrease) in cash and equivalents | -865,000 | -65,683,000 | 106,426,000 |
Cash and equivalents at beginning of period | 128,966,000 | 194,649,000 | 88,223,000 |
Cash and equivalents at end of period | 128,101,000 | 128,966,000 | 194,649,000 |
Eliminating Entries [Member] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Distributions from unconsolidated entities | 0 | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 | 0 |
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Proceeds from the sale of property and equipment | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | |
Other borrowings (repayments) | 0 | 0 | |
Stock option exercises | 0 | 0 | 0 |
Stock repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | |
Intercompany activities, net | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and equivalents | 0 | 0 | 0 |
Cash and equivalents at beginning of period | 0 | 0 | 0 |
Cash and equivalents at end of period | $0 | $0 | $0 |
Quarterly_Results_Unaudited_Na
Quarterly Results (Unaudited) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||
Gains (Losses) on Extinguishment of Debt | $8,584,000 | $8,584,000 | $26,930,000 | $32,071,000 | |||||
Charges included in homebuilding income before income taxes | 66,600,000 | ||||||||
Adjustment to self insurance reserves | -15,200,000 | 84,500,000 | 69,300,000 | ||||||
Loss Contingency Accrual, Period Increase (Decrease) | -18,600,000 | 49,000,000 | |||||||
Valuation allowance adjustment | $49,600,000 | $73,700,000 | $2,100,000,000 | $45,600,000 |
Quarterly_Results_Unaudited_De
Quarterly Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding: | |||||||||||
Revenues | $1,786,464 | $1,561,273 | $1,254,989 | $1,093,999 | $1,624,959 | $1,547,742 | $1,240,060 | $1,125,883 | $5,696,725 | $5,538,644 | $4,659,110 |
Cost of revenues | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 1,249,868 | 1,230,070 | 1,011,528 | 923,488 | 4,366,997 | 4,414,954 | 3,928,331 |
Income before income taxes | 254,118 | 214,051 | 58,573 | 108,435 | 225,511 | 163,594 | 21,971 | 68,037 | 635,177 | 479,113 | 157,991 |
Financial Services: | |||||||||||
Revenues | 36,093 | 33,452 | 31,198 | 24,895 | 30,380 | 34,336 | 39,362 | 36,873 | 125,638 | 140,951 | 160,888 |
Income (loss) before income taxes | 13,002 | 10,877 | 9,108 | 21,594 | 6,909 | 11,128 | 16,359 | 14,313 | 54,581 | 48,709 | |
Consolidated results: | |||||||||||
Total revenues | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 1,655,339 | 1,582,078 | 1,279,422 | 1,162,756 | 5,822,363 | 5,679,595 | 4,819,998 |
Income before income taxes | 267,120 | 224,928 | 67,681 | 130,029 | 232,420 | 174,722 | 38,330 | 82,350 | 689,758 | 527,822 | 183,554 |
Income tax expense (benefit) | 50,025 | 84,383 | 25,801 | 55,210 | 12,367 | -2,107,162 | 1,913 | 588 | 215,420 | -2,092,294 | -22,591 |
Net income | $217,095 | $140,545 | $41,880 | $74,819 | $220,053 | $2,281,884 | $36,417 | $81,762 | $474,338 | $2,620,116 | $206,145 |
Net income per share: | |||||||||||
Basic (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.58 | $5.92 | $0.09 | $0.21 | $1.27 | $6.79 | $0.54 |
Diluted (usd per share) | $0.58 | $0.37 | $0.11 | $0.19 | $0.57 | $5.87 | $0.09 | $0.21 | $1.26 | $6.72 | $0.54 |
Number of shares used in calculation: | |||||||||||
Basic shares outstanding | 369,533 | 373,531 | 376,072 | 383,991 | 379,879 | 382,883 | 385,389 | 384,228 | 370,377 | 383,077 | 381,562 |
Effect of dilutive securities (shares) | 3,734 | 3,761 | 3,592 | 3,815 | 3,845 | 3,220 | 5,791 | 6,093 | 3,725 | 3,789 | 3,002 |
Diluted shares outstanding (shares) | 373,267 | 377,292 | 379,664 | 387,806 | 383,724 | 386,103 | 391,180 | 390,321 | 374,102 | 386,866 | 384,564 |