Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 16, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PULTEGROUP INC/MI/ | |
Entity Central Index Key | 822,416 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 349,137,143 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and equivalents | $ 734,153 | $ 1,292,862 | |
Restricted cash | 25,942 | 16,358 | |
House and land inventory | 5,240,932 | 4,392,100 | |
Land held for sale | 85,130 | 101,190 | |
Land, not owned, under option agreements | 102,548 | 30,186 | |
Residential mortgage loans available-for-sale | 270,658 | 339,531 | |
Investments in unconsolidated entities | 41,509 | 40,368 | |
Other assets | 637,962 | 513,032 | |
Intangible assets | 113,440 | 123,115 | |
Deferred tax assets, net | 1,549,304 | 1,720,668 | |
Total assets | 8,801,578 | 8,569,410 | |
Liabilities: | |||
Accounts payable, including book overdrafts of $50,947 and $32,586 in 2015 and 2014, respectively | 372,498 | 270,516 | |
Customer deposits | 241,047 | 142,642 | |
Accrued and other liabilities | 1,373,910 | 1,343,774 | |
Income tax liabilities | 50,906 | 48,722 | |
Financial Services debt | 107,508 | 140,241 | |
Term loan | 500,000 | 0 | |
Senior notes | [1] | 1,584,104 | 1,818,561 |
Total liabilities | 4,229,973 | 3,764,456 | |
Shareholders' equity | 4,571,605 | 4,804,954 | |
Total liabilities and shareholders' equity | $ 8,801,578 | $ 8,569,410 | |
[1] | 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Book overdrafts | $ 50,947 | $ 32,586 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Homebuilding | ||||
Home sale revenues | $ 1,464,131 | $ 1,551,226 | $ 3,795,366 | $ 3,885,703 |
Land sale revenues | 3,649 | 10,047 | 27,651 | 24,558 |
Total homebuilding revenues | 1,467,780 | 1,561,273 | 3,823,017 | 3,910,261 |
Financial Services | 38,967 | 33,452 | 97,319 | 89,544 |
Consolidated revenues | 1,506,747 | 1,594,725 | 3,920,336 | 3,999,805 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,118,874 | 1,195,369 | 2,913,299 | 2,976,665 |
Land sale cost of revenues | 3,301 | 3,539 | 21,992 | 15,382 |
Total cost of revenues | 1,122,175 | 1,198,908 | 2,935,291 | 2,992,047 |
Financial Services expenses | 24,602 | 22,623 | 67,909 | 48,058 |
Selling, general and administrative expenses | 159,361 | 147,136 | 450,793 | 521,791 |
Other expense, net | 23,826 | 2,406 | 29,962 | 25,561 |
Interest income | (504) | (1,205) | (2,458) | (3,431) |
Interest expense | 203 | 210 | 598 | 625 |
Equity in earnings of unconsolidated entities | (2,192) | (281) | (4,464) | (7,483) |
Income before income taxes | 179,276 | 224,928 | 442,705 | 422,637 |
Income tax expense | 71,507 | 84,383 | 176,643 | 165,393 |
Net income | $ 107,769 | $ 140,545 | $ 266,062 | $ 257,244 |
Per share: | ||||
Basic earnings (usd per share) | $ 0.31 | $ 0.37 | $ 0.74 | $ 0.68 |
Diluted earnings (usd per share) | 0.30 | 0.37 | 0.73 | 0.67 |
Cash dividends declared (usd per share) | $ 0.08 | $ 0.05 | $ 0.24 | $ 0.15 |
Number of shares used in calculation: | ||||
Basic shares outstanding (shares) | 350,147 | 373,531 | 359,236 | 376,097 |
Effect of dilutive securities (shares) | 3,225 | 3,761 | 3,273 | 3,723 |
Diluted shares outstanding (shares) | 353,372 | 377,292 | 362,509 | 379,820 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 107,769 | $ 140,545 | $ 266,062 | $ 257,244 |
Other comprehensive income, net of tax: | ||||
Change in value of derivatives | 21 | 21 | 63 | 82 |
Other comprehensive income | 21 | 21 | 63 | 82 |
Comprehensive income | $ 107,790 | $ 140,566 | $ 266,125 | $ 257,326 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Shareholders' Equity beginning of period at Dec. 31, 2013 | $ 4,648,952 | $ 3,813 | $ 3,052,016 | $ (795) | $ 1,593,918 |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2013 | 381,300 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (shares) | 554 | ||||
Stock option exercises | 6,034 | $ 5 | 6,029 | ||
Stock issuances, net of cancellations (shares) | (42) | ||||
Stock issuances, net of cancellations | 0 | ||||
Dividends declared | (56,689) | 72 | (56,761) | ||
Share repurchases | (155,140) | $ (80) | (155,060) | ||
Share repurchases (shares) | (8,034) | ||||
Share-based compensation | 10,586 | 10,586 | 0 | ||
Excess tax benefits (deficiencies) from share-based awards | (660) | (660) | |||
Net income | 257,244 | 257,244 | |||
Other comprehensive income | 82 | 82 | |||
Shareholders' Equity end of period at Sep. 30, 2014 | 4,710,409 | $ 3,738 | 3,068,043 | (713) | 1,639,341 |
Shareholders' Equity, shares end of period (shares) at Sep. 30, 2014 | 373,778 | ||||
Shareholders' Equity beginning of period at Dec. 31, 2014 | 4,804,954 | $ 3,695 | 3,072,996 | (690) | 1,728,953 |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2014 | 369,459 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (shares) | 888 | ||||
Stock option exercises | 10,371 | $ 9 | 10,362 | ||
Stock issuances, net of cancellations (shares) | 431 | ||||
Stock issuances, net of cancellations | 7,423 | $ 4 | 7,419 | ||
Dividends declared | (86,296) | 8 | (86,304) | ||
Share repurchases | (442,738) | $ (216) | (442,522) | ||
Share repurchases (shares) | (21,641) | ||||
Share-based compensation | 13,556 | 13,556 | |||
Excess tax benefits (deficiencies) from share-based awards | (1,790) | (1,790) | |||
Net income | 266,062 | 266,062 | |||
Other comprehensive income | 63 | 63 | |||
Shareholders' Equity end of period at Sep. 30, 2015 | $ 4,571,605 | $ 3,492 | $ 3,102,551 | $ (627) | $ 1,466,189 |
Shareholders' Equity, shares end of period (shares) at Sep. 30, 2015 | 349,137 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 266,062 | $ 257,244 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred income tax expense | 171,364 | 164,460 |
Depreciation and amortization | 33,719 | 28,864 |
Share-based compensation expense | 20,139 | 21,290 |
Equity in earnings of unconsolidated entities | (4,464) | (7,483) |
Distributions of earnings from unconsolidated entities | 2,594 | 4,824 |
Loss on debt retirements | 0 | 8,584 |
Other non-cash, net | 13,170 | 8,211 |
Increase (decrease) in cash due to: | ||
Restricted cash | (13,293) | (689) |
Inventories | (835,276) | (384,571) |
Residential mortgage loans available-for-sale | 68,381 | 49,600 |
Other assets | (132,195) | (12,802) |
Accounts payable, accrued and other liabilities | 160,803 | 74,102 |
Income tax liabilities | 2,184 | (9,799) |
Net cash provided by (used in) operating activities | (246,812) | 201,835 |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 3,710 | 48,401 |
Capital expenditures | (34,049) | (41,888) |
Cash used for business acquisition | 0 | (77,469) |
Other investing activities, net | 9,959 | 1,360 |
Net cash provided by (used in) investing activities | (20,380) | (69,596) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | (32,733) | (34,070) |
Proceeds from debt issuance | 500,000 | 0 |
Repayments of debt | (238,520) | (250,631) |
Borrowings under revolving credit facility | 125,000 | 0 |
Repayments under revolving credit facility | (125,000) | 0 |
Stock option exercises | 10,371 | 6,034 |
Share repurchases | (442,738) | (155,140) |
Dividends paid | (87,897) | (56,944) |
Net cash provided by (used in) financing activities | (291,517) | (490,751) |
Net increase (decrease) in cash and equivalents | (558,709) | (358,512) |
Cash and equivalents at beginning of period | 1,292,862 | 1,580,329 |
Cash and equivalents at end of period | 734,153 | 1,221,817 |
Supplemental Cash Flow Information: | ||
Interest paid (capitalized), net | (20,304) | (23,236) |
Income taxes paid (refunded), net | $ 740 | $ (1,054) |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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 United States ("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 accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Use of estimates The preparation of financial statements in conformity with U.S. GAAP 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"). Other expense, net Other expense, net consists of the following ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Write-off of deposits and pre-acquisition costs $ 522 $ 1,391 $ 3,633 $ 4,543 Loss on debt retirements ( Note 5 ) — — — 8,584 Amortization of intangible assets 3,225 3,258 9,675 9,808 Miscellaneous, net (a) 20,079 (2,243 ) 16,654 2,626 $ 23,826 $ 2,406 $ 29,962 $ 25,561 (a) Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 9). 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 outstanding, 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 shares and restricted share 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 4.2 million and 4.4 million potentially dilutive instruments, including stock options, unvested restricted shares and restricted share units for the three and nine months ended September 30, 2015 , respectively, and 7.1 million and 7.2 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units for the three and nine months ended September 30, 2014 , respectively. In accordance with ASC 260 "Earnings Per Share", 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. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net income $ 107,769 $ 140,545 $ 266,062 $ 257,244 Less: earnings distributed to participating securities (181 ) (124 ) (554 ) (386 ) Less: undistributed earnings allocated to participating securities (516 ) (820 ) (1,169 ) (1,362 ) Numerator for basic earnings per share $ 107,072 $ 139,601 $ 264,339 $ 255,496 Add back: undistributed earnings allocated to participating securities 516 820 1,169 1,362 Less: undistributed earnings reallocated to participating securities (512 ) (812 ) (1,158 ) (1,349 ) Numerator for diluted earnings per share $ 107,076 $ 139,609 $ 264,350 $ 255,509 Denominator: Basic shares outstanding 350,147 373,531 359,236 376,097 Effect of dilutive securities 3,225 3,761 3,273 3,723 Diluted shares outstanding 353,372 377,292 362,509 379,820 Earnings per share: Basic $ 0.31 $ 0.37 $ 0.74 $ 0.68 Diluted $ 0.30 $ 0.37 $ 0.73 $ 0.67 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. If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. 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. No such VIEs required consolidation at either September 30, 2015 or December 31, 2014 because we determined that we were not the VIE's primary beneficiary. Separately, certain land option agreements represent financing arrangements, even though we generally have no obligation to pay the remaining purchase price under the option agreement. As a result, we recorded $102.5 million and $30.2 million at September 30, 2015 and December 31, 2014 , 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 as of September 30, 2015 and December 31, 2014 ($000’s omitted): September 30, 2015 December 31, 2014 Deposits and Remaining Purchase Land, Not Deposits and Remaining Purchase Land, Not Land options with VIEs $ 87,804 $ 1,098,008 $ 32,305 $ 56,039 $ 891,506 $ 12,533 Other land options 88,475 1,020,588 70,243 71,241 999,079 17,653 $ 176,279 $ 2,118,596 $ 102,548 $ 127,280 $ 1,890,585 $ 30,186 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”, 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.” 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 September 30, 2015 and December 31, 2014 , residential mortgage loans available-for-sale had an aggregate fair value of $270.7 million and $339.5 million , respectively, and an aggregate outstanding principal balance of $259.7 million and $327.4 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $1.1 million and $(0.3) million for the three months ended September 30, 2015 and 2014 , respectively, and $0.3 million and $1.3 million for the nine months ended September 30, 2015 and 2014 . 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 were $23.4 million and $18.0 million for the three months ended September 30, 2015 and 2014 , respectively, and $57.2 million and $48.4 million for the nine months ended September 30, 2015 and 2014 , respectively, and have been included in Financial Services revenues. 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). At September 30, 2015 and December 31, 2014 , we had aggregate interest rate lock commitments of $335.2 million and $146.1 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. In order to reduce risks associated with our loan origination activities, 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 residential mortgage loans available for sale. We do not enter into any derivative financial instruments for trading purposes. 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 execute an interest rate lock with 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 September 30, 2015 and December 31, 2014 , we had unexpired forward contracts of $502.4 million and $371.0 million , respectively, and whole loan investor commitments of $57.5 million and $63.5 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 (and residential mortgage loans available-for-sale) 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 locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): September 30, 2015 December 31, 2014 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 11,131 $ 109 $ 4,313 $ 65 Forward contracts 219 4,931 79 3,653 Whole loan commitments 26 433 31 619 $ 11,376 $ 5,473 $ 4,423 $ 4,337 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" ("ASU 2014-04"), 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. We adopted ASU 2014-04 on January 1, 2015 and the adoption did not have a material impact on our financial statements. 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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which delayed the effective date by one year. As a result, the standard is effective for us for fiscal and interim periods beginning January 1, 2018 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. We adopted ASU 2014-11 on January 1, 2015 and the adoption did not have a material impact on our financial statements. 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. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, "Amendments to the Consolidation Analysis" ("ASU 2015-02"), which amends the consolidation requirements in ASC 810, primarily related to limited partnerships and VIEs. ASU 2015-02 is effective for us beginning January 1, 2016. We do not anticipate the adoption of ASU 2015-02 to have a material impact on our financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” ("ASU 2015-03"), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. The guidance is effective for us beginning January 1, 2016. We currently present deferred financing costs within Other assets. Accordingly, the adoption of the new guidance will result in the reclassification of debt issuance costs as an offset to Senior notes in the Company’s condensed consolidated balance sheets, which we do not expect to be material to our financial statements. |
Inventory And Land Held For Sal
Inventory And Land Held For Sale | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory and Land Held for Sale | Inventory and land held for sale Major components of inventory were as follows ($000’s omitted): September 30, December 31, Homes under construction $ 1,605,529 $ 1,084,137 Land under development 2,871,263 2,545,049 Raw land 764,140 762,914 $ 5,240,932 $ 4,392,100 We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the timing of home closings. 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): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Interest in inventory, beginning of period $ 164,384 $ 210,603 $ 167,638 $ 230,922 Interest capitalized 28,006 32,025 90,105 98,793 Interest expensed (36,609 ) (52,286 ) (101,962 ) (139,373 ) Interest in inventory, end of period $ 155,781 $ 190,342 $ 155,781 $ 190,342 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 was as follows ($000’s omitted): September 30, December 31, Land held for sale, gross $ 92,040 $ 108,725 Net realizable value reserves (6,910 ) (7,535 ) Land held for sale, net $ 85,130 $ 101,190 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
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. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, 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 included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Operating Data by Segment ($000’s omitted) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues: Northeast $ 182,547 $ 185,559 $ 430,881 $ 480,495 Southeast 282,051 253,895 713,090 668,660 Florida 247,528 251,486 659,330 647,146 Texas 203,319 216,837 566,307 595,975 North 355,070 426,165 936,712 949,757 Southwest 197,265 227,331 516,697 568,228 1,467,780 1,561,273 3,823,017 3,910,261 Financial Services 38,967 33,452 97,319 89,544 Consolidated revenues $ 1,506,747 $ 1,594,725 $ 3,920,336 $ 3,999,805 Income before income taxes: Northeast (c) $ 13,208 $ 28,568 $ 38,065 $ 65,873 Southeast 45,708 42,230 110,203 105,974 Florida 49,046 55,931 121,585 132,541 Texas 26,035 33,730 73,313 87,952 North 38,065 61,599 77,645 129,699 Southwest 23,838 40,812 63,589 93,198 Other homebuilding (a) (30,989 ) (48,819 ) (71,104 ) (234,178 ) 164,911 214,051 413,296 381,059 Financial Services (b) 14,365 10,877 29,409 41,578 Consolidated income before income taxes $ 179,276 $ 224,928 $ 442,705 $ 422,637 (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: reserve reversals of $5.7 million and $32.6 million for the three and nine months ended September 30, 2015 , respectively, resulting from a legal settlement (see Note 9); losses on debt retirements totaling $8.6 million for the nine months ended September 30, 2014 (see Note 5); a charge totaling $84.5 million to increase insurance reserves for the nine months ended September 30, 2014 (see Note 9); and costs associated with the relocation of our corporate headquarters totaling $1.9 million and $7.1 million for the three and nine months ended September 30, 2014 , respectively. (b) Financial Services included an $18.6 million reduction in loan origination liabilities for the nine months ended September 30, 2014 (see Note 9). (c) Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 9). Operating Data by Segment ($000's omitted) September 30, 2015 Homes Under Land Under Raw Land Total Total Northeast $ 224,242 $ 258,427 $ 125,117 $ 607,786 $ 726,388 Southeast 230,791 335,065 116,728 682,584 739,296 Florida 241,991 482,604 138,397 862,992 990,493 Texas 213,574 283,422 102,071 599,067 658,298 North 401,963 590,831 122,367 1,115,161 1,239,610 Southwest 269,079 718,839 131,819 1,119,737 1,261,564 Other homebuilding (a) 23,889 202,075 27,641 253,605 2,843,281 1,605,529 2,871,263 764,140 5,240,932 8,458,930 Financial Services — — — — 342,648 $ 1,605,529 $ 2,871,263 $ 764,140 $ 5,240,932 $ 8,801,578 December 31, 2014 Homes Under Land Under Raw Land Total Total 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 (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 E
Investments In Unconsolidated Entities | 9 Months Ended |
Sep. 30, 2015 | |
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): September 30, December 31, Investments in joint ventures with debt non-recourse to PulteGroup $ 24,412 $ 26,488 Investments in other active joint ventures 17,097 13,880 Total investments in unconsolidated entities $ 41,509 $ 40,368 Total joint venture debt $ 16,387 $ 25,849 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 215 $ 283 Joint venture debt non-recourse to PulteGroup 6,769 11,341 PulteGroup's total proportionate share of joint venture debt $ 6,984 $ 11,624 We recognized income from unconsolidated joint ventures of $2.2 million and $0.3 million during the three months ended September 30, 2015 and 2014 , respectively, and $4.5 million and $7.5 million during the nine months ended September 30, 2015 and 2014 , respectively. During the nine months ended September 30, 2015 and 2014 , we received distributions of $3.7 million and $12.4 million , respectively. The timing of cash flows relating to a joint venture and any related financing agreements varies by agreement. If additional capital contributions are required and approved by the joint venture, 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 our combined investment and limited recourse guaranty totals. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our senior notes are summarized as follows ($000’s omitted): September 30, December 31, 5.25% unsecured senior notes due June 2015 (a) $ — $ 236,452 6.50% unsecured senior notes due May 2016 (a) 463,829 462,009 7.625% unsecured senior notes due October 2017 (b) 122,819 122,752 7.875% unsecured senior notes due June 2032 (a) 299,272 299,239 6.375% unsecured senior notes due May 2033 (a) 398,696 398,640 6.00% unsecured senior notes due February 2035 (a) 299,488 299,469 Total senior notes – carrying value (c) $ 1,584,104 $ 1,818,561 Estimated fair value $ 1,662,206 $ 1,952,774 (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. Debt retirement In June 2015, we retired $238.0 million of senior notes at their scheduled maturity date. During the nine months ended September 30, 2014 , we retired prior to their scheduled maturity dates senior notes totaling $245.7 million and recorded losses related to these transactions totaling $8.6 million . Losses on debt repurchase transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense, 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 $500.0 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) $300.0 million in the aggregate. The interest rate on borrowings under the Revolving Credit Facility may be based on either the London Interbank Offered Rate ("LIBOR") or a base rate plus an applicable margin, as defined. At September 30, 2015 , we had no borrowings outstanding and $196.9 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 September 30, 2015 , we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. Term loan On September 30, 2015, we entered into a senior unsecured $500.0 million term loan agreement (the “Term Loan”) with an initial maturity date of January 3, 2017, which can be extended at our option up to 12 months. The interest rate on the Term Loan may be based on either LIBOR or a base rate plus an applicable margin, as defined. Borrowings are interest only with the principal being due at the maturity date and are guaranteed by certain of our wholly-owned subsidiaries. The Term Loan contains customary affirmative and negative covenants for loans of this type, including the same financial covenants as under the Revolving Credit Facility. As of September 30, 2015 , we were in compliance with all covenants. Limited recourse notes payable Certain of our local homebuilding operations maintain limited recourse collateralized notes payable with third parties that totaled $21.7 million at September 30, 2015 and $22.3 million at December 31, 2014 . These notes have maturities ranging up to six 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 2015, Pulte Mortgage entered into an amended and restated Repurchase Agreement that extended the effective date to September 2016 . The maximum aggregate commitment under the Repurchase Agreement was initially set at $175.0 million , increases to $200.0 million on December 1, 2015, decreases to $175.0 million on January 19, 2016, and increases again to $200.0 million on July 29, 2016. The purpose for the changes in capacity during the term of the agreement is to lower associated fees during seasonally lower volume periods of mortgage origination activity. 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 $107.5 million and $140.2 million outstanding under the Repurchase Agreement at September 30, 2015 and December 31, 2014 , respectively, and was in compliance with all of its covenants and requirements as of such dates. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ equity During the nine months ended September 30, 2015 , we declared cash dividends totaling $86.3 million and repurchased 21.2 million shares under our repurchase authorization for a total of $433.7 million . At September 30, 2015 , we had remaining authorization to repurchase $304.8 million of common shares. During the nine months ended September 30, 2014 , we declared cash dividends totaling $56.7 million and repurchased 7.7 million shares under our repurchase authorization for a total of $147.8 million . Under our share-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of shares, generally related to the payment of minimum tax obligations. During the nine months ended September 30, 2015 and 2014 , employees surrendered shares valued at $9.0 million and $7.2 million , respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes Our effective tax rate for both the three and nine months ended September 30, 2015 was 39.9% , compared to 37.5% and 39.1% respectively, for the same periods in 2014. In these periods, our effective tax rate exceeded the federal statutory tax rate due to a number of factors, including state income taxes, changes to the valuation allowance related to deferred tax assets, tax law changes or other circumstances that impact the value of deferred tax assets, and changes in unrecognized tax benefits. 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 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. During the nine months ended September 30, 2015 and 2014 , we recorded adjustments to deferred tax assets resulting from certain states enacting tax law changes along with internal reorganizations. The estimated impact of such changes was recorded to income tax expense during the respective periods. 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. 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 September 30, 2015 and December 31, 2014, we had $33.2 million and $32.9 million , respectively, of gross unrecognized tax benefits and $17.5 million and $17.3 million , respectively, of related accrued interest and penalties. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $15.0 million , excluding interest and penalties, primarily due to expirations of certain statutes of limitations and potential settlements. We are currently under examination by the IRS and various state taxing jurisdictions and anticipate finalizing certain examinations within the next twelve months. The final outcome of these examinations is not yet determinable. The statutes of limitation for our major tax jurisdictions generally remain open for examination for tax years 2004 to 2015 . |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 270,658 $ 339,531 Interest rate lock commitments Level 2 11,022 4,248 Forward contracts Level 2 (4,712 ) (3,574 ) Whole loan commitments Level 2 (407 ) (588 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 1,262 $ 13,925 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 760,095 $ 1,309,220 Financial Services debt Level 2 107,508 140,241 Term loan Level 2 500,000 — Senior notes Level 2 1,662,206 1,952,774 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 values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. The carrying amounts of cash and equivalents, Financial Services debt, the Term Loan, 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 $1.6 billion and $1.8 billion at September 30, 2015 and December 31, 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies 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. In the first quarter of 2014, we reduced our loan origination liabilities by $18.6 million based on settlements of various pending repurchase requests combined with then current conditions. 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): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Liabilities, beginning of period $ 58,238 $ 62,707 $ 58,222 $ 124,956 Reserves provided and adjustments 81 — 220 (18,604 ) Payments (23 ) (1,991 ) (146 ) (45,636 ) Liabilities, end of period $ 58,296 $ 60,716 $ 58,296 $ 60,716 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 $196.9 million and $1.0 billion , respectively, at September 30, 2015 , and $212.1 million and $1.0 billion , respectively, at December 31, 2014 . In the event any such letter of credit or surety bond is drawn, 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 drawn. 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. On September 14, 2012, Applecross Club Operations (“Applecross”) filed a complaint for breach of contract and promissory estoppel in Applecross v. Pulte Homes of PA, et al. The complaint alleged that we induced Applecross to purchase a golf course from us in 2010 by promising to build over 1,000 residential units in a planned community located outside Philadelphia, Pennsylvania. On September 28, 2015, the jury in the case found in favor of Applecross and awarded damages in the amount of $20.0 million. We believe we have meritorious defenses and have filed post-trial motions seeking to, among other things, overturn the jury verdict. If unsuccessful, we plan to appeal the award. However, in light of the jury’s verdict, we recorded a reserve of $20.0 million in the three months ended September 30, 2015, which is reflected in other expense, net. 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): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Warranty liabilities, beginning of period $ 54,502 $ 61,986 $ 65,389 $ 63,992 Reserves provided 12,575 12,375 32,586 33,036 Payments (14,316 ) (12,674 ) (45,793 ) (34,586 ) Other adjustments 1,773 (222 ) 2,352 (977 ) Warranty liabilities, end of period $ 54,534 $ 61,465 $ 54,534 $ 61,465 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 generally 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 omissions, 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 periodically 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 $702.5 million and $710.2 million at September 30, 2015 and December 31, 2014 , 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 73% and 72% of the total general liability reserves at September 30, 2015 and December 31, 2014 , 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 the three and nine months ended September 30, 2015, we recorded reserve reversals of $5.7 million and $32.6 million , respectively, resulting from a legal settlement. During the three months ended June 30, 2014, we recorded additional reserves totaling $84.5 million , which 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. These adjustments are reflected in "Reserves provided, net" in the below table. 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 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): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Balance, beginning of period $ 700,133 $ 746,446 $ 710,245 $ 668,100 Reserves provided, net 14,021 21,385 20,467 137,666 Payments (11,670 ) (33,168 ) (28,228 ) (71,103 ) Balance, end of period $ 702,484 $ 734,663 $ 702,484 $ 734,663 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2015 | |
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 our 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. CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2015 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 688,224 $ 45,929 $ — $ 734,153 Restricted cash — 24,942 1,000 — 25,942 House and land inventory — 5,240,932 — — 5,240,932 Land held for sale — 84,096 1,034 — 85,130 Land, not owned, under option agreements — 102,548 — — 102,548 Residential mortgage loans available- for-sale — — 270,658 — 270,658 Investments in unconsolidated entities 88 36,955 4,466 — 41,509 Other assets 26,073 516,775 95,114 — 637,962 Intangible assets — 113,440 — — 113,440 Deferred tax assets, net 1,541,759 13 7,532 — 1,549,304 Investments in subsidiaries and intercompany accounts, net 5,222,327 286,642 6,100,670 (11,609,639 ) — $ 6,790,247 $ 7,094,567 $ 6,526,403 $ (11,609,639 ) $ 8,801,578 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 83,632 $ 1,715,283 $ 188,540 $ — $ 1,987,455 Income tax liabilities 50,906 — — — 50,906 Financial Services debt — — 107,508 — 107,508 Term loan 500,000 — — — 500,000 Senior notes 1,584,104 — — — 1,584,104 Total liabilities 2,218,642 1,715,283 296,048 — 4,229,973 Total shareholders’ equity 4,571,605 5,379,284 6,230,355 (11,609,639 ) 4,571,605 $ 6,790,247 $ 7,094,567 $ 6,526,403 $ (11,609,639 ) $ 8,801,578 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor 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 agreements — 30,186 — — 30,186 Residential mortgage loans available- for-sale — — 339,531 — 339,531 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 intercompany accounts, net 4,963,831 967,032 6,359,441 (12,290,304 ) — $ 6,744,136 $ 7,228,040 $ 6,887,538 $ (12,290,304 ) $ 8,569,410 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 71,874 $ 1,514,954 $ 170,104 $ — $ 1,756,932 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 STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,464,131 $ — $ — $ 1,464,131 Land sale revenues — 3,649 — — 3,649 — 1,467,780 — — 1,467,780 Financial Services — — 38,967 — 38,967 — 1,467,780 38,967 — 1,506,747 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,118,874 — — 1,118,874 Land sale cost of revenues — 3,301 — — 3,301 — 1,122,175 — — 1,122,175 Financial Services expenses 13 (13 ) 24,602 — 24,602 Selling, general and administrative expenses — 158,975 386 — 159,361 Other expense (income), net — 23,796 30 — 23,826 Interest income — (504 ) — — (504 ) Interest expense 203 — — — 203 Equity in earnings of unconsolidated entities (1 ) (2,025 ) (166 ) — (2,192 ) Intercompany interest 594 2,039 (2,633 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (809 ) 163,337 16,748 — 179,276 Income tax expense (benefit) (307 ) 65,347 6,467 — 71,507 Income (loss) before equity in income (loss) of subsidiaries (502 ) 97,990 10,281 — 107,769 Equity in income (loss) of subsidiaries 108,271 9,913 82,484 (200,668 ) — Net income (loss) 107,769 107,903 92,765 (200,668 ) 107,769 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 107,790 $ 107,903 $ 92,765 $ (200,668 ) $ 107,790 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,551,226 $ — $ — $ 1,551,226 Land sale revenues — 10,047 — — 10,047 — 1,561,273 — — 1,561,273 Financial Services — 154 33,298 — 33,452 — 1,561,427 33,298 — 1,594,725 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,195,369 — — 1,195,369 Land sale cost of revenues — 3,539 — — 3,539 — 1,198,908 — — 1,198,908 Financial Services expenses 195 (102 ) 22,530 — 22,623 Selling, general and administrative expenses — 146,642 494 — 147,136 Other expense (income), net (16 ) 2,194 228 — 2,406 Interest income (93 ) (1,080 ) (32 ) — (1,205 ) Interest expense 210 — — — 210 Equity in earnings of unconsolidated entities (2 ) (205 ) (74 ) — (281 ) Intercompany interest 4,190 (1,666 ) (2,524 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (4,484 ) 216,736 12,676 — 224,928 Income tax expense (benefit) (1,764 ) 81,157 4,990 — 84,383 Income (loss) before equity in income (loss) of subsidiaries (2,720 ) 135,579 7,686 — 140,545 Equity in income (loss) of subsidiaries 143,265 7,518 100,513 (251,296 ) — Net income (loss) 140,545 143,097 108,199 (251,296 ) 140,545 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 140,566 $ 143,097 $ 108,199 $ (251,296 ) $ 140,566 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,795,366 $ — $ — $ 3,795,366 Land sale revenues — 27,651 — — 27,651 — 3,823,017 — — 3,823,017 Financial Services — — 97,319 — 97,319 — 3,823,017 97,319 — 3,920,336 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,913,299 — — 2,913,299 Land sale cost of revenues — 21,992 — — 21,992 — 2,935,291 — — 2,935,291 Financial Services expenses 300 (274 ) 67,883 — 67,909 Selling, general and administrative expenses — 449,261 1,532 — 450,793 Other expense, net (9 ) 30,040 (69 ) — 29,962 Interest income (3 ) (2,461 ) 6 — (2,458 ) Interest expense 598 — — — 598 Equity in (earnings) loss of unconsolidated entities (14 ) (3,877 ) (573 ) — (4,464 ) Intercompany interest 1,537 5,886 (7,423 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (2,409 ) 409,151 35,963 — 442,705 Income tax expense (benefit) (917 ) 163,713 13,847 — 176,643 Income (loss) before equity in income (loss) of subsidiaries (1,492 ) 245,438 22,116 — 266,062 Equity in income (loss) of subsidiaries 267,554 21,586 227,143 (516,283 ) — Net income (loss) 266,062 267,024 249,259 (516,283 ) 266,062 Other comprehensive income 63 — — — 63 Comprehensive income $ 266,125 $ 267,024 $ 249,259 $ (516,283 ) $ 266,125 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the nine months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,885,703 $ — $ — $ 3,885,703 Land sale revenues — 24,558 — — 24,558 — 3,910,261 — — 3,910,261 Financial Services — 888 88,656 — 89,544 — 3,911,149 88,656 — 3,999,805 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,976,665 — — 2,976,665 Land sale cost of revenues — 15,382 — — 15,382 — 2,992,047 — — 2,992,047 Financial Services expenses 591 56 47,411 — 48,058 Selling, general and administrative expenses — 520,513 1,278 — 521,791 Other expense (income), net 8,538 16,290 733 — 25,561 Interest income (332 ) (3,046 ) (53 ) — (3,431 ) Interest expense 625 — — — 625 Equity in (earnings) loss of (7 ) (7,295 ) (181 ) — (7,483 ) Intercompany interest 5,010 2,281 (7,291 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (14,425 ) 390,303 46,759 — 422,637 Income tax expense (benefit) (5,640 ) 152,750 18,283 — 165,393 Income (loss) before equity in income (loss) of subsidiaries (8,785 ) 237,553 28,476 — 257,244 Equity in income (loss) of subsidiaries 266,029 28,670 209,648 (504,347 ) — Net income (loss) 257,244 266,223 238,124 (504,347 ) 257,244 Other comprehensive income 82 — — — 82 Comprehensive income (loss) $ 257,326 $ 266,223 $ 238,124 $ (504,347 ) $ 257,326 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 162,645 $ (468,838 ) $ 59,381 $ — $ (246,812 ) Cash flows from investing activities: Change in restricted cash related to letters of credit 3,710 — — — 3,710 Capital expenditures — (31,197 ) (2,852 ) — (34,049 ) Other investing activities, net — 785 9,174 — 9,959 Net cash provided by (used in) investing activities 3,710 (30,412 ) 6,322 — (20,380 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (32,733 ) — (32,733 ) Proceeds from debt issuance 500,000 — — — 500,000 Repayments of debt (237,994 ) (526 ) — — (238,520 ) Borrowings under revolving credit facility 125,000 — — — 125,000 Repayments under revolving credit facility (125,000 ) — — — (125,000 ) Stock option exercises 10,371 — — — 10,371 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (87,897 ) — — — (87,897 ) Intercompany activities, net 84,449 30,693 (115,142 ) — — Net cash provided by (used in) financing activities (173,809 ) 30,167 (147,875 ) — (291,517 ) Net increase (decrease) in cash and equivalents (7,454 ) (469,083 ) (82,172 ) — (558,709 ) Cash and equivalents at beginning of period 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of period $ — $ 688,224 $ 45,929 $ — $ 734,153 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 265,107 $ (73,268 ) $ 9,996 $ — $ 201,835 Cash flows from investing activities: Change in restricted cash related to letters of credit 48,401 — — — 48,401 Capital expenditures — (39,025 ) (2,863 ) (41,888 ) Cash used for business acquisition — (77,469 ) — — (77,469 ) Other investing activities, net — 7,710 (6,350 ) — 1,360 Net cash provided by (used in) investing activities 48,401 (108,784 ) (9,213 ) — (69,596 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (34,070 ) — (34,070 ) Other borrowings (repayments) (249,765 ) (866 ) — — (250,631 ) Stock option exercises 6,034 — — — 6,034 Share repurchases (155,140 ) — — — (155,140 ) Dividends paid (56,944 ) — — — (56,944 ) Intercompany activities, net (119,195 ) 163,409 (44,214 ) — — Net cash provided by (used in) financing activities (575,010 ) 162,543 (78,284 ) — (490,751 ) Net increase (decrease) in cash and equivalents (261,502 ) (19,509 ) (77,501 ) — (358,512 ) Cash and equivalents at beginning of period 262,364 1,188,999 128,966 — 1,580,329 Cash and equivalents at end of period $ 862 $ 1,169,490 $ 51,465 $ — $ 1,221,817 |
Summary Of Significant Accoun18
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 . |
Use of Estimates Policy | Use of estimates The preparation of financial statements in conformity with U.S. GAAP 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 | Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). |
Earnings Per Share Policy | 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 outstanding, 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 shares and restricted share 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 4.2 million and 4.4 million potentially dilutive instruments, including stock options, unvested restricted shares and restricted share units for the three and nine months ended September 30, 2015 , respectively, and 7.1 million and 7.2 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units for the three and nine months ended September 30, 2014 , respectively. In accordance with ASC 260 "Earnings Per Share", 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. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. |
Land under Option Arrangements Policy | 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. If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. 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. |
Residential Mortgage Loans Available for Sale Policy | 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”, 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.” 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. |
Derivatives Policy | 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). At September 30, 2015 and December 31, 2014 , we had aggregate interest rate lock commitments of $335.2 million and $146.1 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. In order to reduce risks associated with our loan origination activities, 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 residential mortgage loans available for sale. We do not enter into any derivative financial instruments for trading purposes. 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 execute an interest rate lock with 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 September 30, 2015 and December 31, 2014 , we had unexpired forward contracts of $502.4 million and $371.0 million , respectively, and whole loan investor commitments of $57.5 million and $63.5 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 (and residential mortgage loans available-for-sale) 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. |
New Accounting Pronouncements Policy | 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" ("ASU 2014-04"), 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. We adopted ASU 2014-04 on January 1, 2015 and the adoption did not have a material impact on our financial statements. 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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which delayed the effective date by one year. As a result, the standard is effective for us for fiscal and interim periods beginning January 1, 2018 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. We adopted ASU 2014-11 on January 1, 2015 and the adoption did not have a material impact on our financial statements. 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. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, "Amendments to the Consolidation Analysis" ("ASU 2015-02"), which amends the consolidation requirements in ASC 810, primarily related to limited partnerships and VIEs. ASU 2015-02 is effective for us beginning January 1, 2016. We do not anticipate the adoption of ASU 2015-02 to have a material impact on our financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” ("ASU 2015-03"), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. The guidance is effective for us beginning January 1, 2016. We currently present deferred financing costs within Other assets. Accordingly, the adoption of the new guidance will result in the reclassification of debt issuance costs as an offset to Senior notes in the Company’s condensed consolidated balance sheets, which we do not expect to be material to our financial statements. |
Inventory, Interest Capitalization Policy | We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the timing of home closings. |
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 values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. The carrying amounts of cash and equivalents, Financial Services debt, the Term Loan, 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. |
Legal Reserves Policy | 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. |
Standard Product Warranty, 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 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. |
Summary Of Significant Accoun19
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of other expense (income), net | Other expense, net consists of the following ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Write-off of deposits and pre-acquisition costs $ 522 $ 1,391 $ 3,633 $ 4,543 Loss on debt retirements ( Note 5 ) — — — 8,584 Amortization of intangible assets 3,225 3,258 9,675 9,808 Miscellaneous, net (a) 20,079 (2,243 ) 16,654 2,626 $ 23,826 $ 2,406 $ 29,962 $ 25,561 (a) Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 9). |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block] | The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Net income $ 107,769 $ 140,545 $ 266,062 $ 257,244 Less: earnings distributed to participating securities (181 ) (124 ) (554 ) (386 ) Less: undistributed earnings allocated to participating securities (516 ) (820 ) (1,169 ) (1,362 ) Numerator for basic earnings per share $ 107,072 $ 139,601 $ 264,339 $ 255,496 Add back: undistributed earnings allocated to participating securities 516 820 1,169 1,362 Less: undistributed earnings reallocated to participating securities (512 ) (812 ) (1,158 ) (1,349 ) Numerator for diluted earnings per share $ 107,076 $ 139,609 $ 264,350 $ 255,509 Denominator: Basic shares outstanding 350,147 373,531 359,236 376,097 Effect of dilutive securities 3,225 3,761 3,273 3,723 Diluted shares outstanding 353,372 377,292 362,509 379,820 Earnings per share: Basic $ 0.31 $ 0.37 $ 0.74 $ 0.68 Diluted $ 0.30 $ 0.37 $ 0.73 $ 0.67 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements as of September 30, 2015 and December 31, 2014 ($000’s omitted): September 30, 2015 December 31, 2014 Deposits and Remaining Purchase Land, Not Deposits and Remaining Purchase Land, Not Land options with VIEs $ 87,804 $ 1,098,008 $ 32,305 $ 56,039 $ 891,506 $ 12,533 Other land options 88,475 1,020,588 70,243 71,241 999,079 17,653 $ 176,279 $ 2,118,596 $ 102,548 $ 127,280 $ 1,890,585 $ 30,186 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): September 30, 2015 December 31, 2014 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 11,131 $ 109 $ 4,313 $ 65 Forward contracts 219 4,931 79 3,653 Whole loan commitments 26 433 31 619 $ 11,376 $ 5,473 $ 4,423 $ 4,337 |
Inventory And Land Held For S20
Inventory And Land Held For Sale (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory were as follows ($000’s omitted): September 30, December 31, Homes under construction $ 1,605,529 $ 1,084,137 Land under development 2,871,263 2,545,049 Raw land 764,140 762,914 $ 5,240,932 $ 4,392,100 |
Capitalized interest rollforward | Information related to interest capitalized into inventory is as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Interest in inventory, beginning of period $ 164,384 $ 210,603 $ 167,638 $ 230,922 Interest capitalized 28,006 32,025 90,105 98,793 Interest expensed (36,609 ) (52,286 ) (101,962 ) (139,373 ) Interest in inventory, end of period $ 155,781 $ 190,342 $ 155,781 $ 190,342 |
Land Held for Sale | Land held for sale was as follows ($000’s omitted): September 30, December 31, Land held for sale, gross $ 92,040 $ 108,725 Net realizable value reserves (6,910 ) (7,535 ) Land held for sale, net $ 85,130 $ 101,190 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Operating Data By Reporting Segment | Operating Data by Segment ($000’s omitted) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues: Northeast $ 182,547 $ 185,559 $ 430,881 $ 480,495 Southeast 282,051 253,895 713,090 668,660 Florida 247,528 251,486 659,330 647,146 Texas 203,319 216,837 566,307 595,975 North 355,070 426,165 936,712 949,757 Southwest 197,265 227,331 516,697 568,228 1,467,780 1,561,273 3,823,017 3,910,261 Financial Services 38,967 33,452 97,319 89,544 Consolidated revenues $ 1,506,747 $ 1,594,725 $ 3,920,336 $ 3,999,805 Income before income taxes: Northeast (c) $ 13,208 $ 28,568 $ 38,065 $ 65,873 Southeast 45,708 42,230 110,203 105,974 Florida 49,046 55,931 121,585 132,541 Texas 26,035 33,730 73,313 87,952 North 38,065 61,599 77,645 129,699 Southwest 23,838 40,812 63,589 93,198 Other homebuilding (a) (30,989 ) (48,819 ) (71,104 ) (234,178 ) 164,911 214,051 413,296 381,059 Financial Services (b) 14,365 10,877 29,409 41,578 Consolidated income before income taxes $ 179,276 $ 224,928 $ 442,705 $ 422,637 (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: reserve reversals of $5.7 million and $32.6 million for the three and nine months ended September 30, 2015 , respectively, resulting from a legal settlement (see Note 9); losses on debt retirements totaling $8.6 million for the nine months ended September 30, 2014 (see Note 5); a charge totaling $84.5 million to increase insurance reserves for the nine months ended September 30, 2014 (see Note 9); and costs associated with the relocation of our corporate headquarters totaling $1.9 million and $7.1 million for the three and nine months ended September 30, 2014 , respectively. (b) Financial Services included an $18.6 million reduction in loan origination liabilities for the nine months ended September 30, 2014 (see Note 9). (c) Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 9). |
Total Assets And Inventory By Reporting Segment | Operating Data by Segment ($000's omitted) September 30, 2015 Homes Under Land Under Raw Land Total Total Northeast $ 224,242 $ 258,427 $ 125,117 $ 607,786 $ 726,388 Southeast 230,791 335,065 116,728 682,584 739,296 Florida 241,991 482,604 138,397 862,992 990,493 Texas 213,574 283,422 102,071 599,067 658,298 North 401,963 590,831 122,367 1,115,161 1,239,610 Southwest 269,079 718,839 131,819 1,119,737 1,261,564 Other homebuilding (a) 23,889 202,075 27,641 253,605 2,843,281 1,605,529 2,871,263 764,140 5,240,932 8,458,930 Financial Services — — — — 342,648 $ 1,605,529 $ 2,871,263 $ 764,140 $ 5,240,932 $ 8,801,578 December 31, 2014 Homes Under Land Under Raw Land Total Total 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 (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 Unconsolidated22
Investments In Unconsolidated Entities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of joint ventures | A summary of our joint ventures is presented below ($000’s omitted): September 30, December 31, Investments in joint ventures with debt non-recourse to PulteGroup $ 24,412 $ 26,488 Investments in other active joint ventures 17,097 13,880 Total investments in unconsolidated entities $ 41,509 $ 40,368 Total joint venture debt $ 16,387 $ 25,849 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 215 $ 283 Joint venture debt non-recourse to PulteGroup 6,769 11,341 PulteGroup's total proportionate share of joint venture debt $ 6,984 $ 11,624 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our senior notes are summarized as follows ($000’s omitted): September 30, December 31, 5.25% unsecured senior notes due June 2015 (a) $ — $ 236,452 6.50% unsecured senior notes due May 2016 (a) 463,829 462,009 7.625% unsecured senior notes due October 2017 (b) 122,819 122,752 7.875% unsecured senior notes due June 2032 (a) 299,272 299,239 6.375% unsecured senior notes due May 2033 (a) 398,696 398,640 6.00% unsecured senior notes due February 2035 (a) 299,488 299,469 Total senior notes – carrying value (c) $ 1,584,104 $ 1,818,561 Estimated fair value $ 1,662,206 $ 1,952,774 (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 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value September 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 270,658 $ 339,531 Interest rate lock commitments Level 2 11,022 4,248 Forward contracts Level 2 (4,712 ) (3,574 ) Whole loan commitments Level 2 (407 ) (588 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 1,262 $ 13,925 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 760,095 $ 1,309,220 Financial Services debt Level 2 107,508 140,241 Term loan Level 2 500,000 — Senior notes Level 2 1,662,206 1,952,774 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of changes in loan origination liability | Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Liabilities, beginning of period $ 58,238 $ 62,707 $ 58,222 $ 124,956 Reserves provided and adjustments 81 — 220 (18,604 ) Payments (23 ) (1,991 ) (146 ) (45,636 ) Liabilities, end of period $ 58,296 $ 60,716 $ 58,296 $ 60,716 |
Summary of changes in warranty liability | Changes to warranty liabilities were as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Warranty liabilities, beginning of period $ 54,502 $ 61,986 $ 65,389 $ 63,992 Reserves provided 12,575 12,375 32,586 33,036 Payments (14,316 ) (12,674 ) (45,793 ) (34,586 ) Other adjustments 1,773 (222 ) 2,352 (977 ) Warranty liabilities, end of period $ 54,534 $ 61,465 $ 54,534 $ 61,465 |
Summary of changes in self-insurance liability | Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Balance, beginning of period $ 700,133 $ 746,446 $ 710,245 $ 668,100 Reserves provided, net 14,021 21,385 20,467 137,666 Payments (11,670 ) (33,168 ) (28,228 ) (71,103 ) Balance, end of period $ 702,484 $ 734,663 $ 702,484 $ 734,663 |
Supplemental Guarantor Inform26
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2015 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 688,224 $ 45,929 $ — $ 734,153 Restricted cash — 24,942 1,000 — 25,942 House and land inventory — 5,240,932 — — 5,240,932 Land held for sale — 84,096 1,034 — 85,130 Land, not owned, under option agreements — 102,548 — — 102,548 Residential mortgage loans available- for-sale — — 270,658 — 270,658 Investments in unconsolidated entities 88 36,955 4,466 — 41,509 Other assets 26,073 516,775 95,114 — 637,962 Intangible assets — 113,440 — — 113,440 Deferred tax assets, net 1,541,759 13 7,532 — 1,549,304 Investments in subsidiaries and intercompany accounts, net 5,222,327 286,642 6,100,670 (11,609,639 ) — $ 6,790,247 $ 7,094,567 $ 6,526,403 $ (11,609,639 ) $ 8,801,578 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 83,632 $ 1,715,283 $ 188,540 $ — $ 1,987,455 Income tax liabilities 50,906 — — — 50,906 Financial Services debt — — 107,508 — 107,508 Term loan 500,000 — — — 500,000 Senior notes 1,584,104 — — — 1,584,104 Total liabilities 2,218,642 1,715,283 296,048 — 4,229,973 Total shareholders’ equity 4,571,605 5,379,284 6,230,355 (11,609,639 ) 4,571,605 $ 6,790,247 $ 7,094,567 $ 6,526,403 $ (11,609,639 ) $ 8,801,578 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor 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 agreements — 30,186 — — 30,186 Residential mortgage loans available- for-sale — — 339,531 — 339,531 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 intercompany accounts, net 4,963,831 967,032 6,359,441 (12,290,304 ) — $ 6,744,136 $ 7,228,040 $ 6,887,538 $ (12,290,304 ) $ 8,569,410 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 71,874 $ 1,514,954 $ 170,104 $ — $ 1,756,932 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 Statement of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,464,131 $ — $ — $ 1,464,131 Land sale revenues — 3,649 — — 3,649 — 1,467,780 — — 1,467,780 Financial Services — — 38,967 — 38,967 — 1,467,780 38,967 — 1,506,747 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,118,874 — — 1,118,874 Land sale cost of revenues — 3,301 — — 3,301 — 1,122,175 — — 1,122,175 Financial Services expenses 13 (13 ) 24,602 — 24,602 Selling, general and administrative expenses — 158,975 386 — 159,361 Other expense (income), net — 23,796 30 — 23,826 Interest income — (504 ) — — (504 ) Interest expense 203 — — — 203 Equity in earnings of unconsolidated entities (1 ) (2,025 ) (166 ) — (2,192 ) Intercompany interest 594 2,039 (2,633 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (809 ) 163,337 16,748 — 179,276 Income tax expense (benefit) (307 ) 65,347 6,467 — 71,507 Income (loss) before equity in income (loss) of subsidiaries (502 ) 97,990 10,281 — 107,769 Equity in income (loss) of subsidiaries 108,271 9,913 82,484 (200,668 ) — Net income (loss) 107,769 107,903 92,765 (200,668 ) 107,769 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 107,790 $ 107,903 $ 92,765 $ (200,668 ) $ 107,790 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,551,226 $ — $ — $ 1,551,226 Land sale revenues — 10,047 — — 10,047 — 1,561,273 — — 1,561,273 Financial Services — 154 33,298 — 33,452 — 1,561,427 33,298 — 1,594,725 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,195,369 — — 1,195,369 Land sale cost of revenues — 3,539 — — 3,539 — 1,198,908 — — 1,198,908 Financial Services expenses 195 (102 ) 22,530 — 22,623 Selling, general and administrative expenses — 146,642 494 — 147,136 Other expense (income), net (16 ) 2,194 228 — 2,406 Interest income (93 ) (1,080 ) (32 ) — (1,205 ) Interest expense 210 — — — 210 Equity in earnings of unconsolidated entities (2 ) (205 ) (74 ) — (281 ) Intercompany interest 4,190 (1,666 ) (2,524 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (4,484 ) 216,736 12,676 — 224,928 Income tax expense (benefit) (1,764 ) 81,157 4,990 — 84,383 Income (loss) before equity in income (loss) of subsidiaries (2,720 ) 135,579 7,686 — 140,545 Equity in income (loss) of subsidiaries 143,265 7,518 100,513 (251,296 ) — Net income (loss) 140,545 143,097 108,199 (251,296 ) 140,545 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 140,566 $ 143,097 $ 108,199 $ (251,296 ) $ 140,566 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,795,366 $ — $ — $ 3,795,366 Land sale revenues — 27,651 — — 27,651 — 3,823,017 — — 3,823,017 Financial Services — — 97,319 — 97,319 — 3,823,017 97,319 — 3,920,336 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,913,299 — — 2,913,299 Land sale cost of revenues — 21,992 — — 21,992 — 2,935,291 — — 2,935,291 Financial Services expenses 300 (274 ) 67,883 — 67,909 Selling, general and administrative expenses — 449,261 1,532 — 450,793 Other expense, net (9 ) 30,040 (69 ) — 29,962 Interest income (3 ) (2,461 ) 6 — (2,458 ) Interest expense 598 — — — 598 Equity in (earnings) loss of unconsolidated entities (14 ) (3,877 ) (573 ) — (4,464 ) Intercompany interest 1,537 5,886 (7,423 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (2,409 ) 409,151 35,963 — 442,705 Income tax expense (benefit) (917 ) 163,713 13,847 — 176,643 Income (loss) before equity in income (loss) of subsidiaries (1,492 ) 245,438 22,116 — 266,062 Equity in income (loss) of subsidiaries 267,554 21,586 227,143 (516,283 ) — Net income (loss) 266,062 267,024 249,259 (516,283 ) 266,062 Other comprehensive income 63 — — — 63 Comprehensive income $ 266,125 $ 267,024 $ 249,259 $ (516,283 ) $ 266,125 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the nine months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,885,703 $ — $ — $ 3,885,703 Land sale revenues — 24,558 — — 24,558 — 3,910,261 — — 3,910,261 Financial Services — 888 88,656 — 89,544 — 3,911,149 88,656 — 3,999,805 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,976,665 — — 2,976,665 Land sale cost of revenues — 15,382 — — 15,382 — 2,992,047 — — 2,992,047 Financial Services expenses 591 56 47,411 — 48,058 Selling, general and administrative expenses — 520,513 1,278 — 521,791 Other expense (income), net 8,538 16,290 733 — 25,561 Interest income (332 ) (3,046 ) (53 ) — (3,431 ) Interest expense 625 — — — 625 Equity in (earnings) loss of (7 ) (7,295 ) (181 ) — (7,483 ) Intercompany interest 5,010 2,281 (7,291 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (14,425 ) 390,303 46,759 — 422,637 Income tax expense (benefit) (5,640 ) 152,750 18,283 — 165,393 Income (loss) before equity in income (loss) of subsidiaries (8,785 ) 237,553 28,476 — 257,244 Equity in income (loss) of subsidiaries 266,029 28,670 209,648 (504,347 ) — Net income (loss) 257,244 266,223 238,124 (504,347 ) 257,244 Other comprehensive income 82 — — — 82 Comprehensive income (loss) $ 257,326 $ 266,223 $ 238,124 $ (504,347 ) $ 257,326 |
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 162,645 $ (468,838 ) $ 59,381 $ — $ (246,812 ) Cash flows from investing activities: Change in restricted cash related to letters of credit 3,710 — — — 3,710 Capital expenditures — (31,197 ) (2,852 ) — (34,049 ) Other investing activities, net — 785 9,174 — 9,959 Net cash provided by (used in) investing activities 3,710 (30,412 ) 6,322 — (20,380 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (32,733 ) — (32,733 ) Proceeds from debt issuance 500,000 — — — 500,000 Repayments of debt (237,994 ) (526 ) — — (238,520 ) Borrowings under revolving credit facility 125,000 — — — 125,000 Repayments under revolving credit facility (125,000 ) — — — (125,000 ) Stock option exercises 10,371 — — — 10,371 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (87,897 ) — — — (87,897 ) Intercompany activities, net 84,449 30,693 (115,142 ) — — Net cash provided by (used in) financing activities (173,809 ) 30,167 (147,875 ) — (291,517 ) Net increase (decrease) in cash and equivalents (7,454 ) (469,083 ) (82,172 ) — (558,709 ) Cash and equivalents at beginning of period 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of period $ — $ 688,224 $ 45,929 $ — $ 734,153 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 265,107 $ (73,268 ) $ 9,996 $ — $ 201,835 Cash flows from investing activities: Change in restricted cash related to letters of credit 48,401 — — — 48,401 Capital expenditures — (39,025 ) (2,863 ) (41,888 ) Cash used for business acquisition — (77,469 ) — — (77,469 ) Other investing activities, net — 7,710 (6,350 ) — 1,360 Net cash provided by (used in) investing activities 48,401 (108,784 ) (9,213 ) — (69,596 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (34,070 ) — (34,070 ) Other borrowings (repayments) (249,765 ) (866 ) — — (250,631 ) Stock option exercises 6,034 — — — 6,034 Share repurchases (155,140 ) — — — (155,140 ) Dividends paid (56,944 ) — — — (56,944 ) Intercompany activities, net (119,195 ) 163,409 (44,214 ) — — Net cash provided by (used in) financing activities (575,010 ) 162,543 (78,284 ) — (490,751 ) Net increase (decrease) in cash and equivalents (261,502 ) (19,509 ) (77,501 ) — (358,512 ) Cash and equivalents at beginning of period 262,364 1,188,999 128,966 — 1,580,329 Cash and equivalents at end of period $ 862 $ 1,169,490 $ 51,465 $ — $ 1,221,817 |
Summary Of Significant Accoun27
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 4.2 | 7.1 | 4.4 | 7.2 | |||
Liabilities for land, not owned, under option agreements | $ 102,548 | $ 102,548 | $ 30,186 | ||||
Land, Not Owned, Under Option Agreements | 102,548 | 102,548 | 30,186 | ||||
Residential mortgage loans available-for-sale fair value | 270,658 | 270,658 | 339,531 | ||||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 259,700 | 259,700 | 327,400 | ||||
Net gain (loss) from change in fair value | 1,100 | $ (300) | 300 | $ 1,300 | |||
Net gains from the sale of mortgages | 23,400 | $ 18,000 | $ 57,200 | $ 48,400 | |||
Variability in future cash flows of derivative instruments in days | 75 days | ||||||
Interest rate lock commitments | |||||||
Derivative, notional amount | 335,200 | $ 335,200 | 146,100 | ||||
Forward contracts | |||||||
Derivative, notional amount | 502,400 | 502,400 | 371,000 | ||||
Whole loan commitments | |||||||
Derivative, notional amount | 57,500 | 57,500 | $ 63,500 | ||||
Northeast | Applecross v. Pulte Homes of PA, et al | |||||||
Litigation Settlement, Expense | [2] | $ 20,000 | [1] | $ 20,000 | |||
[1] | Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 | ||||||
[2] | Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 |
Summary Of Significant Accoun28
Summary Of Significant Accounting Policies (Other Expense (Income), Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ||||||
Write-off of deposits and pre-acquisition costs | $ 522 | $ 1,391 | $ 3,633 | $ 4,543 | ||
Loss on debt retirements | 0 | 0 | 0 | 8,584 | ||
Amortization of intangible assets | 3,225 | 3,258 | 9,675 | 9,808 | ||
Miscellaneous, net (a) | 20,079 | [1] | (2,243) | 16,654 | [1] | 2,626 |
Other expense, net | $ 23,826 | $ 2,406 | $ 29,962 | $ 25,561 | ||
[1] | Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Earnings per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 107,769 | $ 140,545 | $ 266,062 | $ 257,244 |
Less: earnings distributed to participating securities | (181) | (124) | (554) | (386) |
Less: undistributed earnings allocated to participating securities | (516) | (820) | (1,169) | (1,362) |
Numerator for basic earnings per share | 107,072 | 139,601 | 264,339 | 255,496 |
Add back: undistributed earnings allocated to participating securities | 516 | 820 | 1,169 | 1,362 |
Less: undistributed earnings reallocated to participating securities | (512) | (812) | (1,158) | (1,349) |
Numerator for diluted earnings per share | $ 107,076 | $ 139,609 | $ 264,350 | $ 255,509 |
Denominator: | ||||
Basic shares outstanding (shares) | 350,147 | 373,531 | 359,236 | 376,097 |
Effect of dilutive securities (shares) | 3,225 | 3,761 | 3,273 | 3,723 |
Diluted shares outstanding (shares) | 353,372 | 377,292 | 362,509 | 379,820 |
Earnings Per Share [Abstract] | ||||
Earnings Per Share, Basic (usd per share) | $ 0.31 | $ 0.37 | $ 0.74 | $ 0.68 |
Earnings Per Share, Diluted (usd per share) | $ 0.30 | $ 0.37 | $ 0.73 | $ 0.67 |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 176,279 | $ 127,280 |
Remaining Purchase Price | 2,118,596 | 1,890,585 |
Land, Not Owned, Under Option Agreements | 102,548 | 30,186 |
Land options with VIEs | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 87,804 | 56,039 |
Remaining Purchase Price | 1,098,008 | 891,506 |
Land, Not Owned, Under Option Agreements | 32,305 | 12,533 |
Other Land Option Agreements Member | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 88,475 | 71,241 |
Remaining Purchase Price | 1,020,588 | 999,079 |
Land, Not Owned, Under Option Agreements | $ 70,243 | $ 17,653 |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 11,376 | $ 4,423 |
Other Liabilities | 5,473 | 4,337 |
Interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 11,131 | 4,313 |
Other Liabilities | 109 | 65 |
Forward contracts | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 219 | 79 |
Other Liabilities | 4,931 | 3,653 |
Whole loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 26 | 31 |
Other Liabilities | $ 433 | $ 619 |
Inventory And Land Held For S32
Inventory And Land Held For Sale (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Homes under construction | $ 1,605,529 | $ 1,084,137 |
Land under development | 2,871,263 | 2,545,049 |
Raw land | 764,140 | 762,914 |
House and land inventory | $ 5,240,932 | $ 4,392,100 |
Inventory And Land Held For S33
Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest in inventory, beginning of period | $ 164,384 | $ 210,603 | $ 167,638 | $ 230,922 |
Interest capitalized | 28,006 | 32,025 | 90,105 | 98,793 |
Interest expensed | (36,609) | (52,286) | (101,962) | (139,373) |
Interest in inventory, end of period | $ 155,781 | $ 190,342 | $ 155,781 | $ 190,342 |
Inventory And Land Held For S34
Inventory And Land Held For Sale (Land Held For Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Land held for sale, gross | $ 92,040 | $ 108,725 |
Net realizable value reserves | (6,910) | (7,535) |
Land held for sale, net | $ 85,130 | $ 101,190 |
Segment Information Narrative (
Segment Information Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Segment Reporting Information | ||||||
Adjustment to self insurance reserves | $ (5,700) | $ (32,600) | $ 84,500 | |||
Loss on debt retirements | 0 | $ 0 | 0 | 8,584 | ||
Loss Contingency Accrual, Period Increase (Decrease) | (18,600) | |||||
Home Office Relocation [Member] | ||||||
Segment Reporting Information | ||||||
Restructuring and Related Cost, Incurred Cost | $ 1,900 | $ 7,100 | ||||
Applecross v. Pulte Homes of PA, et al | Northeast | ||||||
Segment Reporting Information | ||||||
Litigation Settlement, Expense | [2] | $ 20,000 | [1] | $ 20,000 | ||
[1] | Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 | |||||
[2] | Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Revenues: | |||||||
Homebuilding | $ 1,467,780 | $ 1,561,273 | $ 3,823,017 | $ 3,910,261 | |||
Financial Services | 38,967 | 33,452 | 97,319 | 89,544 | |||
Consolidated revenues | 1,506,747 | 1,594,725 | 3,920,336 | 3,999,805 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 179,276 | 224,928 | 442,705 | 422,637 | |||
Northeast | |||||||
Revenues: | |||||||
Homebuilding | 182,547 | 185,559 | 430,881 | 480,495 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 13,208 | [1] | 28,568 | 38,065 | [1] | 65,873 | |
Southeast | |||||||
Revenues: | |||||||
Homebuilding | 282,051 | 253,895 | 713,090 | 668,660 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 45,708 | 42,230 | 110,203 | 105,974 | |||
Florida | |||||||
Revenues: | |||||||
Homebuilding | 247,528 | 251,486 | 659,330 | 647,146 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 49,046 | 55,931 | 121,585 | 132,541 | |||
Texas | |||||||
Revenues: | |||||||
Homebuilding | 203,319 | 216,837 | 566,307 | 595,975 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 26,035 | 33,730 | 73,313 | 87,952 | |||
North | |||||||
Revenues: | |||||||
Homebuilding | 355,070 | 426,165 | 936,712 | 949,757 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 38,065 | 61,599 | 77,645 | 129,699 | |||
Southwest | |||||||
Revenues: | |||||||
Homebuilding | 197,265 | 227,331 | 516,697 | 568,228 | |||
Income before Income Taxes: | |||||||
Income before income taxes | 23,838 | 40,812 | 63,589 | 93,198 | |||
Other homebuilding | |||||||
Income before Income Taxes: | |||||||
Income before income taxes | [2] | (30,989) | (48,819) | (71,104) | (234,178) | ||
Homebuilding | |||||||
Income before Income Taxes: | |||||||
Income before income taxes | 164,911 | 214,051 | 413,296 | 381,059 | |||
Financial Services | |||||||
Income before Income Taxes: | |||||||
Income before income taxes | [3] | $ 14,365 | $ 10,877 | $ 29,409 | $ 41,578 | ||
[1] | Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 | ||||||
[2] | 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: reserve reversals of $5.7 million and $32.6 million for the three and nine months ended September 30, 2015, respectively, resulting from a legal settlement (see Note 9); losses on debt retirements totaling $8.6 million for the nine months ended September 30, 2014 (see Note 5); a charge totaling $84.5 million to increase insurance reserves for the nine months ended September 30, 2014 (see Note 9); and costs associated with the relocation of our corporate headquarters totaling $1.9 million and $7.1 million for the three and nine months ended September 30, 2014, respectively. | ||||||
[3] | Financial Services included an $18.6 million reduction in loan origination liabilities for the nine months ended September 30, 2014 |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||
Homes under construction | $ 1,605,529 | $ 1,084,137 | |
Land under development | 2,871,263 | 2,545,049 | |
Raw land | 764,140 | 762,914 | |
House and land inventory | 5,240,932 | 4,392,100 | |
Total assets | 8,801,578 | 8,569,410 | |
Northeast | |||
Segment Reporting Information | |||
Homes under construction | 224,242 | 184,974 | |
Land under development | 258,427 | 266,229 | |
Raw land | 125,117 | 106,077 | |
House and land inventory | 607,786 | 557,280 | |
Total assets | 726,388 | 659,224 | |
Southeast | |||
Segment Reporting Information | |||
Homes under construction | 230,791 | 147,506 | |
Land under development | 335,065 | 304,762 | |
Raw land | 116,728 | 117,981 | |
House and land inventory | 682,584 | 570,249 | |
Total assets | 739,296 | 605,067 | |
Florida | |||
Segment Reporting Information | |||
Homes under construction | 241,991 | 150,743 | |
Land under development | 482,604 | 350,016 | |
Raw land | 138,397 | 112,225 | |
House and land inventory | 862,992 | 612,984 | |
Total assets | 990,493 | 717,531 | |
Texas | |||
Segment Reporting Information | |||
Homes under construction | 213,574 | 134,873 | |
Land under development | 283,422 | 250,102 | |
Raw land | 102,071 | 91,765 | |
House and land inventory | 599,067 | 476,740 | |
Total assets | 658,298 | 528,392 | |
North | |||
Segment Reporting Information | |||
Homes under construction | 401,963 | 280,970 | |
Land under development | 590,831 | 478,665 | |
Raw land | 122,367 | 137,044 | |
House and land inventory | 1,115,161 | 896,679 | |
Total assets | 1,239,610 | 996,908 | |
Southwest | |||
Segment Reporting Information | |||
Homes under construction | 269,079 | 166,056 | |
Land under development | 718,839 | 698,513 | |
Raw land | 131,819 | 163,421 | |
House and land inventory | 1,119,737 | 1,027,990 | |
Total assets | 1,261,564 | 1,113,592 | |
Other homebuilding | |||
Segment Reporting Information | |||
Homes under construction | [1] | 23,889 | 19,015 |
Land under development | [1] | 202,075 | 196,762 |
Raw land | [1] | 27,641 | 34,401 |
House and land inventory | [1] | 253,605 | 250,178 |
Total assets | [1] | 2,843,281 | 3,527,731 |
Homebuilding | |||
Segment Reporting Information | |||
Homes under construction | 1,605,529 | 1,084,137 | |
Land under development | 2,871,263 | 2,545,049 | |
Raw land | 764,140 | 762,914 | |
House and land inventory | 5,240,932 | 4,392,100 | |
Total assets | 8,458,930 | 8,148,445 | |
Financial Services | |||
Segment Reporting Information | |||
Total assets | $ 342,648 | $ 420,965 | |
[1] | 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 Unconsolidated38
Investments In Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Equity in earnings of unconsolidated entities | $ 2,192 | $ 281 | $ 4,464 | $ 7,483 |
Capital and earnings distributions received from unconsolidated entities | $ 3,700 | $ 12,400 |
Investments In Unconsolidated39
Investments In Unconsolidated Entities (Summary Schedule Of Joint Ventures) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments in joint ventures with debt non-recourse to PulteGroup | $ 24,412 | $ 26,488 |
Investments in other active joint ventures | 17,097 | 13,880 |
Total investments in unconsolidated entities | 41,509 | 40,368 |
Total joint venture debt | 16,387 | 25,849 |
PulteGroup proportionate share of joint venture debt: | ||
Joint venture debt with limited recourse guaranties | 215 | 283 |
Joint venture debt non-recourse to PulteGroup | 6,769 | 11,341 |
PulteGroup's total proportionate share of joint venture debt | $ 6,984 | $ 11,624 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 29, 2016 | Jan. 19, 2016 | Dec. 01, 2015 | Dec. 31, 2014 | Sep. 08, 2014 | Jul. 23, 2014 | |
Debt Instrument [Line Items] | |||||||||||
Extinguishment of debt | $ 238,000,000 | $ 245,700,000 | |||||||||
Loss on debt retirements | $ 0 | $ 0 | 0 | $ 8,584,000 | |||||||
Letters of credit outstanding | 196,900,000 | 196,900,000 | $ 212,100,000 | ||||||||
Notes payable | 21,700,000 | $ 21,700,000 | 22,300,000 | ||||||||
Debt Instrument, term | 6 years | ||||||||||
Amount outstanding | 107,508,000 | $ 107,508,000 | 140,241,000 | ||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||||
Maximum percent of current credit facility that may be issued in addition | 50.00% | ||||||||||
Maximum additional issuance | $ 300,000,000 | ||||||||||
Fair value of amount outstanding | $ 0 | 0 | |||||||||
Revolving Credit Facility Accordion Feature | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||||
Repurchase Agreement | Financial Services | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||||||
Line of Credit Facility, Initiation Date | Jun. 1, 2015 | Feb. 2, 2015 | Sep. 4, 2015 | ||||||||
Line of Credit Facility, Expiration Date | Sep. 2, 2016 | ||||||||||
Amount outstanding | $ 107,500,000 | $ 107,500,000 | $ 140,200,000 | ||||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.00% | 5.00% | |||||||||
Senior Unsecured Term Loan Maturing January 3, 2017 [Member] | Senior Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | |||||||||
Scenario, Forecast [Member] | Repurchase Agreement | Financial Services | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 175,000,000 | $ 200,000,000 |
Debt (Summary of Senior Notes)
Debt (Summary of Senior Notes) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Senior note carrying value | [1] | $ 1,584,104 | $ 1,818,561 |
Estimated fair value | $ 1,662,206 | $ 1,952,774 | |
Unsecured Senior Notes 5.25% due June 2015 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.25% | 5.25% | |
Senior note carrying value | [2] | $ 0 | $ 236,452 |
Debt Instrument, Maturity Date, Description | June 2,015 | June 2,015 | |
Unsecured Senior Notes 6.50% due May 2016 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.50% | 6.50% | |
Senior note carrying value | [2] | $ 463,829 | $ 462,009 |
Debt Instrument, Maturity Date, Description | May 2,016 | May 2,016 | |
Unsecured Senior Notes 7.625% due October 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.625% | 7.625% | |
Senior note carrying value | [3] | $ 122,819 | $ 122,752 |
Debt Instrument, Maturity Date, Description | October 2,017 | October 2,017 | |
Unsecured Senior Notes 7.875% due June 2032 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.875% | 7.875% | |
Senior note carrying value | [2] | $ 299,272 | $ 299,239 |
Debt Instrument, Maturity Date, Description | June 2,032 | June 2,032 | |
Unsecured Senior Notes 6.375% due May 2033 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.375% | 6.375% | |
Senior note carrying value | [2] | $ 398,696 | $ 398,640 |
Debt Instrument, Maturity Date, Description | May 2,033 | May 2,033 | |
Unsecured Senior Notes 6.00% due February 2035 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.00% | 6.00% | |
Senior note carrying value | [2] | $ 299,488 | $ 299,469 |
Debt Instrument, Maturity Date, Description | February 2,035 | February 2,035 | |
[1] | 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. | ||
[2] | Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. | ||
[3] | Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Cash dividends declared (usd per share) | $ 0.08 | $ 0.05 | $ 0.24 | $ 0.15 |
Dividends | $ 86,296 | $ 56,689 | ||
Payments for repurchase of common stock | $ 442,738 | $ 155,140 | ||
Share repurchase plan | ||||
Class of Stock [Line Items] | ||||
Share repurchases (shares) | 21.2 | 7.7 | ||
Payments for repurchase of common stock | $ 433,700 | $ 147,800 | ||
Remaining value of stock repurchase programs authorization | $ 304,800 | 304,800 | ||
Shares withheld to pay taxes | ||||
Class of Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 9,000 | $ 7,200 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax (percent) | 39.90% | 37.50% | 39.90% | 39.10% | |
Gross unrecognized tax benefits | $ 33.2 | $ 33.2 | $ 32.9 | ||
Accrued interest and penalties on unrecognized tax benefits | 17.5 | 17.5 | $ 17.3 | ||
Possible decrease in unrecognized tax benefits | $ 15 | $ 15 | |||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Income tax years under examination | 2,004 | ||||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Income tax years under examination | 2,015 |
Fair Value Disclosures Fair V44
Fair Value Disclosures Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Disclosed at fair value: | ||
Senior notes | $ 1,662,206 | $ 1,952,774 |
Level 2 | ||
Disclosed at fair value: | ||
Financial Services debt | 107,508 | 140,241 |
Loans Payable, Fair Value Disclosure | 500,000 | 0 |
Level 1 | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash) | 760,095 | 1,309,220 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure, Nonrecurring | 1,262 | 13,925 |
Interest rate lock commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 11,022 | 4,248 |
Forward contracts | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Liabilities, Fair Value Disclosure, Recurring | (4,712) | (3,574) |
Whole loan commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Liabilities, Fair Value Disclosure, Recurring | (407) | (588) |
Residential Mortgage | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | $ 270,658 | $ 339,531 |
Fair Value Disclosures Narrativ
Fair Value Disclosures Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Senior notes | [1] | $ 1,584,104 | $ 1,818,561 |
[1] | 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. |
Commitments and Contingencies46
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015USD ($)claim | Sep. 30, 2015USD ($)claim | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Loss Contingencies [Line Items] | |||||||||
Letters of credit outstanding | $ 196,900 | $ 196,900 | $ 212,100 | ||||||
Surety bonds outstanding | $ 1,000,000 | $ 1,000,000 | 1,000,000 | ||||||
Maximum product warranty in years | 10 years | ||||||||
Pending claims | claim | 1,000 | 1,000 | |||||||
Self-insurance liabilities | $ 702,484 | $ 702,484 | $ 734,663 | $ 700,133 | $ 710,245 | $ 746,446 | $ 668,100 | ||
Incurred but not reported percentage of liability reserves | 73.00% | 73.00% | 72.00% | ||||||
Adjustment to self insurance reserves | $ (5,700) | $ (32,600) | $ 84,500 | ||||||
Northeast | Applecross v. Pulte Homes of PA, et al | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserve recorded | [2] | $ 20,000 | [1] | $ 20,000 | |||||
[1] | Miscellaneous, net includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 | ||||||||
[2] | Northeast includes a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 |
Commitments and Contingencies47
Commitments and Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loss Contingency Accrual [Roll Forward] | ||||
Liabilities, beginning of period | $ 58,238 | $ 62,707 | $ 58,222 | $ 124,956 |
Reserves provided and adjustments | 81 | 0 | 220 | (18,604) |
Payments | (23) | (1,991) | (146) | (45,636) |
Liabilities, end of period | $ 58,296 | $ 60,716 | $ 58,296 | $ 60,716 |
Commitments and Contingencies48
Commitments and Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liabilities, beginning of period | $ 54,502 | $ 61,986 | $ 65,389 | $ 63,992 |
Reserves provided | 12,575 | 12,375 | 32,586 | 33,036 |
Payments | (14,316) | (12,674) | (45,793) | (34,586) |
Other adjustments | 1,773 | (222) | 2,352 | (977) |
Warranty liabilities, end of period | $ 54,534 | $ 61,465 | $ 54,534 | $ 61,465 |
Commitments and Contingencies49
Commitments and Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in Self-insurance Liability [Roll Forward] | ||||
Balance, beginning of period | $ 700,133 | $ 746,446 | $ 710,245 | $ 668,100 |
Reserves provided, net | 14,021 | 21,385 | 20,467 | 137,666 |
Payments | (11,670) | (33,168) | (28,228) | (71,103) |
Balance, end of period | $ 702,484 | $ 734,663 | $ 702,484 | $ 734,663 |
Supplemental Guarantor Inform50
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
ASSETS | |||||
Cash and equivalents | $ 734,153 | $ 1,292,862 | $ 1,221,817 | $ 1,580,329 | |
Restricted cash | 25,942 | 16,358 | |||
House and land inventory | 5,240,932 | 4,392,100 | |||
Land held for sale | 85,130 | 101,190 | |||
Land, not owned, under option agreements | 102,548 | 30,186 | |||
Residential mortgage loans available-for-sale | 270,658 | 339,531 | |||
Securities purchased under agreements to resell | 0 | ||||
Investments in unconsolidated entities | 41,509 | 40,368 | |||
Other assets | 637,962 | 513,032 | |||
Intangible assets | 113,440 | 123,115 | |||
Deferred tax assets, net | 1,549,304 | 1,720,668 | |||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | |||
Total assets | 8,801,578 | 8,569,410 | |||
Liabilities: | |||||
Accounts payable, customer deposits, accrued and other liabilities | 1,987,455 | 1,756,932 | |||
Income tax liabilities | 50,906 | 48,722 | |||
Financial Services debt | 107,508 | 140,241 | |||
Term loan | 500,000 | 0 | |||
Senior notes | [1] | 1,584,104 | 1,818,561 | ||
Total liabilities | 4,229,973 | 3,764,456 | |||
Total shareholders' equity | 4,571,605 | 4,804,954 | 4,710,409 | 4,648,952 | |
Total liabilities and shareholders' equity | 8,801,578 | 8,569,410 | |||
PulteGroup, Inc. | |||||
ASSETS | |||||
Cash and equivalents | 0 | 7,454 | 862 | 262,364 | |
Restricted cash | 0 | 3,710 | |||
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 | 88 | 74 | |||
Other assets | 26,073 | 34,214 | |||
Intangible assets | 0 | 0 | |||
Deferred tax assets, net | 1,541,759 | 1,712,853 | |||
Investments in subsidiaries and intercompany accounts, net | 5,222,327 | 4,963,831 | |||
Total assets | 6,790,247 | 6,744,136 | |||
Liabilities: | |||||
Accounts payable, customer deposits, accrued and other liabilities | 83,632 | 71,874 | |||
Income tax liabilities | 50,906 | 48,747 | |||
Financial Services debt | 0 | 0 | |||
Term loan | 500,000 | ||||
Senior notes | 1,584,104 | 1,818,561 | |||
Total liabilities | 2,218,642 | 1,939,182 | |||
Total shareholders' equity | 4,571,605 | 4,804,954 | |||
Total liabilities and shareholders' equity | 6,790,247 | 6,744,136 | |||
Guarantor Subsidiaries | |||||
ASSETS | |||||
Cash and equivalents | 688,224 | 1,157,307 | 1,169,490 | 1,188,999 | |
Restricted cash | 24,942 | 1,513 | |||
House and land inventory | 5,240,932 | 4,391,445 | |||
Land held for sale | 84,096 | 100,156 | |||
Land, not owned, under option agreements | 102,548 | 30,186 | |||
Residential mortgage loans available-for-sale | 0 | 0 | |||
Securities purchased under agreements to resell | 0 | ||||
Investments in unconsolidated entities | 36,955 | 36,126 | |||
Other assets | 516,775 | 421,145 | |||
Intangible assets | 113,440 | 123,115 | |||
Deferred tax assets, net | 13 | 15 | |||
Investments in subsidiaries and intercompany accounts, net | 286,642 | 967,032 | |||
Total assets | 7,094,567 | 7,228,040 | |||
Liabilities: | |||||
Accounts payable, customer deposits, accrued and other liabilities | 1,715,283 | 1,514,954 | |||
Income tax liabilities | 0 | (25) | |||
Financial Services debt | 0 | 0 | |||
Term loan | 0 | ||||
Senior notes | 0 | 0 | |||
Total liabilities | 1,715,283 | 1,514,929 | |||
Total shareholders' equity | 5,379,284 | 5,713,111 | |||
Total liabilities and shareholders' equity | 7,094,567 | 7,228,040 | |||
Non-Guarantor Subsidiaries | |||||
ASSETS | |||||
Cash and equivalents | 45,929 | 128,101 | 51,465 | 128,966 | |
Restricted cash | 1,000 | 11,135 | |||
House and land inventory | 0 | 655 | |||
Land held for sale | 1,034 | 1,034 | |||
Land, not owned, under option agreements | 0 | 0 | |||
Residential mortgage loans available-for-sale | 270,658 | 339,531 | |||
Securities purchased under agreements to resell | (22,000) | ||||
Investments in unconsolidated entities | 4,466 | 4,168 | |||
Other assets | 95,114 | 57,673 | |||
Intangible assets | 0 | 0 | |||
Deferred tax assets, net | 7,532 | 7,800 | |||
Investments in subsidiaries and intercompany accounts, net | 6,100,670 | 6,359,441 | |||
Total assets | 6,526,403 | 6,887,538 | |||
Liabilities: | |||||
Accounts payable, customer deposits, accrued and other liabilities | 188,540 | 170,104 | |||
Income tax liabilities | 0 | 0 | |||
Financial Services debt | 107,508 | 140,241 | |||
Term loan | 0 | ||||
Senior notes | 0 | 0 | |||
Total liabilities | 296,048 | 310,345 | |||
Total shareholders' equity | 6,230,355 | 6,577,193 | |||
Total liabilities and shareholders' equity | 6,526,403 | 6,887,538 | |||
Eliminating Entries | |||||
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 | (11,609,639) | (12,290,304) | |||
Total assets | (11,609,639) | (12,290,304) | |||
Liabilities: | |||||
Accounts payable, customer deposits, accrued and other liabilities | 0 | 0 | |||
Income tax liabilities | 0 | 0 | |||
Financial Services debt | 0 | 0 | |||
Term loan | 0 | ||||
Senior notes | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Total shareholders' equity | (11,609,639) | (12,290,304) | |||
Total liabilities and shareholders' equity | $ (11,609,639) | $ (12,290,304) | |||
[1] | 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. |
Supplemental Guarantor Inform51
Supplemental Guarantor Information (Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Homebuilding | ||||
Home sale revenues | $ 1,464,131 | $ 1,551,226 | $ 3,795,366 | $ 3,885,703 |
Land sale revenues | 3,649 | 10,047 | 27,651 | 24,558 |
Total homebuilding revenues | 1,467,780 | 1,561,273 | 3,823,017 | 3,910,261 |
Financial Services | 38,967 | 33,452 | 97,319 | 89,544 |
Total revenues | 1,506,747 | 1,594,725 | 3,920,336 | 3,999,805 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,118,874 | 1,195,369 | 2,913,299 | 2,976,665 |
Land sale cost of revenues | 3,301 | 3,539 | 21,992 | 15,382 |
Total cost of revenues | 1,122,175 | 1,198,908 | 2,935,291 | 2,992,047 |
Financial Services expenses | 24,602 | 22,623 | 67,909 | 48,058 |
Selling, general and administrative expenses | 159,361 | 147,136 | 450,793 | 521,791 |
Other expense (income), net | 23,826 | 2,406 | 29,962 | 25,561 |
Interest income | (504) | (1,205) | (2,458) | (3,431) |
Interest expense | 203 | 210 | 598 | 625 |
Equity in earnings of unconsolidated entities | (2,192) | (281) | (4,464) | (7,483) |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 179,276 | 224,928 | 442,705 | 422,637 |
Income tax expense (benefit) | 71,507 | 84,383 | 176,643 | 165,393 |
Income (loss) before equity in income (loss) of subsidiaries | 107,769 | 140,545 | 266,062 | 257,244 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 107,769 | 140,545 | 266,062 | 257,244 |
Other comprehensive income | 21 | 21 | 63 | 82 |
Comprehensive income (loss) | 107,790 | 140,566 | 266,125 | 257,326 |
PulteGroup, Inc. | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 13 | 195 | 300 | 591 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | (16) | (9) | 8,538 |
Interest income | 0 | (93) | (3) | (332) |
Interest expense | 203 | 210 | 598 | 625 |
Equity in earnings of unconsolidated entities | (1) | (2) | (14) | (7) |
Intercompany interest | 594 | 4,190 | 1,537 | 5,010 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (809) | (4,484) | (2,409) | (14,425) |
Income tax expense (benefit) | (307) | (1,764) | (917) | (5,640) |
Income (loss) before equity in income (loss) of subsidiaries | (502) | (2,720) | (1,492) | (8,785) |
Equity in income (loss) of subsidiaries | 108,271 | 143,265 | 267,554 | 266,029 |
Net income | 107,769 | 140,545 | 266,062 | 257,244 |
Other comprehensive income | 21 | 21 | 63 | 82 |
Comprehensive income (loss) | 107,790 | 140,566 | 266,125 | 257,326 |
Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 1,464,131 | 1,551,226 | 3,795,366 | 3,885,703 |
Land sale revenues | 3,649 | 10,047 | 27,651 | 24,558 |
Total homebuilding revenues | 1,467,780 | 1,561,273 | 3,823,017 | 3,910,261 |
Financial Services | 0 | 154 | 0 | 888 |
Total revenues | 1,467,780 | 1,561,427 | 3,823,017 | 3,911,149 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,118,874 | 1,195,369 | 2,913,299 | 2,976,665 |
Land sale cost of revenues | 3,301 | 3,539 | 21,992 | 15,382 |
Total cost of revenues | 1,122,175 | 1,198,908 | 2,935,291 | 2,992,047 |
Financial Services expenses | (13) | (102) | (274) | 56 |
Selling, general and administrative expenses | 158,975 | 146,642 | 449,261 | 520,513 |
Other expense (income), net | 23,796 | 2,194 | 30,040 | 16,290 |
Interest income | (504) | (1,080) | (2,461) | (3,046) |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated entities | (2,025) | (205) | (3,877) | (7,295) |
Intercompany interest | 2,039 | (1,666) | 5,886 | 2,281 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 163,337 | 216,736 | 409,151 | 390,303 |
Income tax expense (benefit) | 65,347 | 81,157 | 163,713 | 152,750 |
Income (loss) before equity in income (loss) of subsidiaries | 97,990 | 135,579 | 245,438 | 237,553 |
Equity in income (loss) of subsidiaries | 9,913 | 7,518 | 21,586 | 28,670 |
Net income | 107,903 | 143,097 | 267,024 | 266,223 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 107,903 | 143,097 | 267,024 | 266,223 |
Non-Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 38,967 | 33,298 | 97,319 | 88,656 |
Total revenues | 38,967 | 33,298 | 97,319 | 88,656 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 24,602 | 22,530 | 67,883 | 47,411 |
Selling, general and administrative expenses | 386 | 494 | 1,532 | 1,278 |
Other expense (income), net | 30 | 228 | (69) | 733 |
Interest income | 0 | (32) | 6 | (53) |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated entities | (166) | (74) | (573) | (181) |
Intercompany interest | (2,633) | (2,524) | (7,423) | (7,291) |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 16,748 | 12,676 | 35,963 | 46,759 |
Income tax expense (benefit) | 6,467 | 4,990 | 13,847 | 18,283 |
Income (loss) before equity in income (loss) of subsidiaries | 10,281 | 7,686 | 22,116 | 28,476 |
Equity in income (loss) of subsidiaries | 82,484 | 100,513 | 227,143 | 209,648 |
Net income | 92,765 | 108,199 | 249,259 | 238,124 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 92,765 | 108,199 | 249,259 | 238,124 |
Eliminating Entries | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated entities | 0 | 0 | 0 | 0 |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (200,668) | (251,296) | (516,283) | (504,347) |
Net income | (200,668) | (251,296) | (516,283) | (504,347) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (200,668) | $ (251,296) | $ (516,283) | $ (504,347) |
Supplemental Guarantor Inform52
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Net cash provided by (used in) operating activities | $ (246,812) | $ 201,835 |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 3,710 | 48,401 |
Capital expenditures | (34,049) | (41,888) |
Cash used for business acquisition | 0 | (77,469) |
Other investing activities, net | 9,959 | 1,360 |
Net cash provided by (used in) investing activities | (20,380) | (69,596) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | (32,733) | (34,070) |
Proceeds from debt issuance | 500,000 | 0 |
Repayments of debt | (238,520) | (250,631) |
Borrowings under revolving credit facility | 125,000 | 0 |
Repayments under revolving credit facility | (125,000) | 0 |
Stock option exercises | 10,371 | 6,034 |
Share repurchases | (442,738) | (155,140) |
Dividends paid | (87,897) | (56,944) |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | (291,517) | (490,751) |
Net increase (decrease) in cash and equivalents | (558,709) | (358,512) |
Cash and equivalents at beginning of period | 1,292,862 | 1,580,329 |
Cash and equivalents at end of period | 734,153 | 1,221,817 |
PulteGroup, Inc. | ||
Net cash provided by (used in) operating activities | 162,645 | 265,107 |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 3,710 | 48,401 |
Capital expenditures | 0 | 0 |
Cash used for business acquisition | 0 | |
Other investing activities, net | 0 | 0 |
Net cash provided by (used in) investing activities | 3,710 | 48,401 |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Proceeds from debt issuance | 500,000 | |
Repayments of debt | (237,994) | (249,765) |
Borrowings under revolving credit facility | 125,000 | |
Repayments under revolving credit facility | (125,000) | |
Stock option exercises | 10,371 | 6,034 |
Share repurchases | (442,738) | (155,140) |
Dividends paid | (87,897) | (56,944) |
Intercompany activities, net | 84,449 | (119,195) |
Net cash provided by (used in) financing activities | (173,809) | (575,010) |
Net increase (decrease) in cash and equivalents | (7,454) | (261,502) |
Cash and equivalents at beginning of period | 7,454 | 262,364 |
Cash and equivalents at end of period | 0 | 862 |
Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | (468,838) | (73,268) |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 0 | 0 |
Capital expenditures | (31,197) | (39,025) |
Cash used for business acquisition | (77,469) | |
Other investing activities, net | 785 | 7,710 |
Net cash provided by (used in) investing activities | (30,412) | (108,784) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Proceeds from debt issuance | 0 | |
Repayments of debt | (526) | (866) |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 30,693 | 163,409 |
Net cash provided by (used in) financing activities | 30,167 | 162,543 |
Net increase (decrease) in cash and equivalents | (469,083) | (19,509) |
Cash and equivalents at beginning of period | 1,157,307 | 1,188,999 |
Cash and equivalents at end of period | 688,224 | 1,169,490 |
Non-Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | 59,381 | 9,996 |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 0 | 0 |
Capital expenditures | (2,852) | (2,863) |
Cash used for business acquisition | 0 | |
Other investing activities, net | 9,174 | (6,350) |
Net cash provided by (used in) investing activities | 6,322 | (9,213) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | (32,733) | (34,070) |
Proceeds from debt issuance | 0 | |
Repayments of debt | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | (115,142) | (44,214) |
Net cash provided by (used in) financing activities | (147,875) | (78,284) |
Net increase (decrease) in cash and equivalents | (82,172) | (77,501) |
Cash and equivalents at beginning of period | 128,101 | 128,966 |
Cash and equivalents at end of period | 45,929 | 51,465 |
Eliminating Entries | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Change in restricted cash related to letters of credit | 0 | $ 0 |
Capital expenditures | 0 | |
Cash used for business acquisition | $ 0 | |
Other investing activities, net | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Proceeds from debt issuance | 0 | |
Repayments of debt | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Net increase (decrease) in cash and equivalents | 0 | 0 |
Cash and equivalents at beginning of period | 0 | 0 |
Cash and equivalents at end of period | $ 0 | $ 0 |