Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 349,148,351 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,084,534,862 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and equivalents | $ 754,161 | $ 1,292,862 |
Restricted cash | 21,274 | 16,358 |
House and land inventory | 5,450,058 | 4,392,100 |
Land held for sale | 81,492 | 101,190 |
Residential mortgage loans available-for-sale | 442,715 | 339,531 |
Investments in unconsolidated entities | 41,267 | 40,368 |
Other assets | 671,099 | 543,218 |
Intangible assets | 110,215 | 123,115 |
Deferred tax assets, net | 1,394,879 | 1,720,668 |
Total assets | 8,967,160 | 8,569,410 |
Liabilities: | ||
Accounts payable, including book overdrafts of $60,547 and $32,586 in 2015 and 2014, respectively | 327,725 | 270,516 |
Customer deposits | 186,141 | 142,642 |
Accrued and other liabilities | 1,284,273 | 1,343,774 |
Income tax liabilities | 57,050 | 48,722 |
Financial Services debt | 267,877 | 140,241 |
Term loan | 500,000 | |
Senior notes | 1,584,769 | 1,818,561 |
Total liabilities | 4,207,835 | 3,764,456 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 349,148,351 and 369,458,530 shares issued and outstanding at December 31, 2015 and 2014, respectively | 3,491 | 3,695 |
Additional paid-in capital | 3,093,802 | 3,072,996 |
Accumulated other comprehensive loss | (609) | (690) |
Retained earnings | 1,662,641 | 1,728,953 |
Total shareholders’ equity | 4,759,325 | 4,804,954 |
Total liabilities and shareholders' equity | $ 8,967,160 | $ 8,569,410 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Book overdrafts | $ 60,547 | $ 32,586 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 349,148,351 | 369,458,530 |
Common stock, shares outstanding | 349,148,351 | 369,458,530 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Homebuilding | ||||||||||||
Home sale revenues | $ 5,792,675 | $ 5,662,171 | $ 5,424,309 | |||||||||
Land sale revenues | 48,536 | 34,554 | 114,335 | |||||||||
Total homebuilding revenues | $ 2,018,194 | $ 1,467,780 | $ 1,249,537 | $ 1,105,700 | $ 1,786,464 | $ 1,561,273 | $ 1,254,989 | $ 1,093,999 | 5,841,211 | 5,696,725 | 5,538,644 | |
Financial Services | 43,434 | 38,967 | 30,754 | 27,598 | 36,093 | 33,452 | 31,198 | 24,895 | 140,753 | 125,638 | 140,951 | |
Total revenues | 2,061,628 | 1,506,747 | 1,280,291 | 1,133,298 | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 5,981,964 | 5,822,363 | 5,679,595 | |
Homebuilding Cost of Revenues: | ||||||||||||
Home sale cost of revenues | 4,440,893 | 4,343,249 | 4,310,528 | |||||||||
Land sale cost of revenues | 35,858 | 23,748 | 104,426 | |||||||||
Total cost of revenues | 1,541,461 | 1,122,175 | 958,592 | 854,523 | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 4,476,751 | 4,366,997 | 4,414,954 | |
Financial Services expenses | 82,047 | 71,057 | 92,242 | |||||||||
Selling, general, and administrative expenses | 589,780 | 667,815 | 568,500 | |||||||||
Other expense, net | 17,363 | 26,736 | 76,077 | |||||||||
Income before income taxes | 373,315 | 179,276 | 167,627 | 95,805 | 267,120 | 224,928 | 67,681 | 130,029 | 816,023 | 689,758 | 527,822 | |
Income tax expense (benefit) | 145,288 | 71,507 | 64,303 | 40,834 | 50,025 | 84,383 | 25,801 | 55,210 | 321,933 | 215,420 | (2,092,294) | |
Net income | $ 228,027 | $ 107,769 | $ 103,324 | $ 54,971 | $ 217,095 | $ 140,545 | $ 41,880 | $ 74,819 | $ 494,090 | $ 474,338 | $ 2,620,116 | |
Net income per share: | ||||||||||||
Basic (usd per share) | $ 0.65 | $ 0.31 | $ 0.28 | $ 0.15 | $ 0.58 | $ 0.37 | $ 0.11 | $ 0.19 | $ 1.38 | $ 1.27 | $ 6.79 | |
Diluted (usd per share) | $ 0.64 | $ 0.30 | $ 0.28 | $ 0.15 | $ 0.58 | 0.37 | 0.11 | $ 0.19 | 1.36 | 1.26 | 6.72 | |
Cash dividends declared (usd per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.33 | $ 0.23 | $ 0.15 | ||||||
Number of shares used in calculation: | ||||||||||||
Basic shares outstanding (shares) | 348,699 | 350,147 | 361,009 | 366,748 | 369,533 | 373,531 | 376,072 | 383,991 | 356,576 | 370,377 | 383,077 | |
Effect of dilutive securities (shares) | 3,047 | 3,225 | 3,232 | 3,362 | 3,734 | 3,761 | 3,592 | 3,815 | 3,217 | 3,725 | 3,789 | |
Diluted shares outstanding (shares) | 351,746 | 353,372 | 364,241 | 370,110 | 373,267 | 377,292 | 379,664 | 387,806 | 359,793 | 374,102 | 386,866 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 494,090 | $ 474,338 | $ 2,620,116 |
Other comprehensive income, net of tax: | |||
Change in value of derivatives | 81 | 105 | 197 |
Other comprehensive income | 81 | 105 | 197 |
Comprehensive income | $ 494,171 | $ 474,443 | $ 2,620,313 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Shareholders' Equity, shares at Dec. 31, 2012 | 386,608,000 | ||||
Shareholders' Equity at Dec. 31, 2012 | $ 2,189,616 | $ 3,866 | $ 3,030,889 | $ (992) | $ (844,147) |
Stock option exercises, shares | 1,432,000 | ||||
Stock option exercises | 19,411 | $ 14 | 19,397 | 0 | 0 |
Share issuances, net of cancellations, shares | 1,002,000 | ||||
Share issuances, net of cancellations | $ 10 | (10) | |||
Dividends declared | (57,530) | (57,530) | |||
Share repurchases, shares | (7,742,000) | ||||
Share repurchases | (127,661) | $ (77) | (3,063) | (124,521) | |
Share-based compensation | 14,474 | $ 0 | 14,474 | 0 | 0 |
Excess tax benefits (deficiencies) from share-based compensation | (9,671) | (9,671) | |||
Net income | 2,620,116 | 2,620,116 | |||
Other comprehensive income | 197 | 197 | |||
Shareholders' Equity, shares at Dec. 31, 2013 | 381,300,000 | ||||
Shareholders' Equity at Dec. 31, 2013 | 4,648,952 | $ 3,813 | 3,052,016 | (795) | 1,593,918 |
Stock option exercises, shares | 1,422,000 | ||||
Stock option exercises | 15,627 | $ 14 | 15,613 | 0 | 0 |
Share issuances, net of cancellations, shares | (43,000) | ||||
Dividends declared | (86,370) | 72 | (86,442) | ||
Share repurchases, shares | (13,220,000) | ||||
Share repurchases | (253,019) | $ (132) | (252,887) | ||
Share-based compensation | 13,812 | $ 0 | 13,786 | 0 | 26 |
Excess tax benefits (deficiencies) from share-based compensation | (8,491) | (8,491) | |||
Net income | 474,338 | 474,338 | |||
Other comprehensive income | $ 105 | 105 | |||
Shareholders' Equity, shares at Dec. 31, 2014 | 369,458,530 | 369,459,000 | |||
Shareholders' Equity at Dec. 31, 2014 | $ 4,804,954 | $ 3,695 | 3,072,996 | (690) | 1,728,953 |
Stock option exercises, shares | 904,000 | ||||
Stock option exercises | 10,534 | $ 9 | 10,525 | 0 | 0 |
Share issuances, net of cancellations, shares | 428,000 | ||||
Share issuances, net of cancellations | 7,424 | $ 4 | 7,420 | ||
Dividends declared | (117,873) | 8 | (117,881) | ||
Share repurchases, shares | (21,642,000) | ||||
Share repurchases | (442,738) | $ (217) | (442,521) | ||
Share-based compensation | 16,888 | $ 0 | 16,888 | 0 | 0 |
Excess tax benefits (deficiencies) from share-based compensation | (14,035) | (14,035) | |||
Net income | 494,090 | 494,090 | |||
Other comprehensive income | $ 81 | 81 | |||
Shareholders' Equity, shares at Dec. 31, 2015 | 349,148,351 | 349,149,000 | |||
Shareholders' Equity at Dec. 31, 2015 | $ 4,759,325 | $ 3,491 | $ 3,093,802 | $ (609) | $ 1,662,641 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 494,090 | $ 474,338 | $ 2,620,116 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Deferred income tax expense (benefit) | 311,699 | 223,769 | (2,096,425) |
Write-down of land and deposits and pre-acquisition costs | 11,467 | 11,168 | 9,672 |
Depreciation and amortization | 46,222 | 39,864 | 31,587 |
Share-based compensation expense | 24,752 | 29,292 | 30,480 |
Loss on debt retirements | 0 | 8,584 | 26,930 |
Other, net | 5,605 | 6,091 | 10,294 |
Increase (decrease) in cash due to: | |||
Restricted cash | (8,626) | 1,368 | 3,387 |
Inventories | (927,768) | (346,596) | 265,064 |
Residential mortgage loans available-for-sale | (104,609) | (53,734) | 28,448 |
Other assets | (177,063) | (46,249) | (38,190) |
Accounts payable, accrued and other liabilities | (23,898) | (38,646) | (10,227) |
Net cash provided by (used in) operating activities | (348,129) | 309,249 | 881,136 |
Cash flows from investing activities: | |||
Net change in loans held for investment | 8,664 | 335 | (12,265) |
Change in restricted cash related to letters of credit | 3,710 | 54,989 | (4,152) |
Capital expenditures | (45,440) | (48,790) | (28,899) |
Cash used for business acquisition | 0 | (82,419) | 0 |
Other investing activities, net | 2,212 | 8,261 | (661) |
Net cash used in investing activities | (30,854) | (67,624) | (45,977) |
Cash flows from financing activities: | |||
Proceeds from debt issuance | 500,000 | 0 | 0 |
Repayments of debt | (239,193) | (250,631) | (479,827) |
Borrowings under revolving credit facility | 125,000 | 0 | 0 |
Repayments under revolving credit facility | (125,000) | 0 | 0 |
Financial Services borrowings (repayments) | 127,636 | 34,577 | (33,131) |
Stock option exercises | 10,535 | 15,627 | 19,411 |
Share repurchases | (442,738) | (253,019) | (127,661) |
Dividends paid | (115,958) | (75,646) | (38,382) |
Net cash used in financing activities | (159,718) | (529,092) | (659,590) |
Net increase (decrease) in cash and equivalents | (538,701) | (287,467) | 175,569 |
Cash and equivalents at beginning of period | 1,292,862 | 1,580,329 | 1,404,760 |
Cash and equivalents at end of period | 754,161 | 1,292,862 | 1,580,329 |
Supplemental Cash Flow Information: | |||
Interest paid (capitalized), net | (4,193) | (4,561) | (171) |
Income taxes paid (refunded), net | $ (5,654) | $ 1,030 | $ 373 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 U.S., and our common stock trades on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title operations. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. Business acquisitions We acquired certain real estate assets from Dominion Homes in August 2014 for $82.4 million in cash and the assumption of certain payables related to such assets. The net assets acquired were located primarily in Columbus, Ohio, and Louisville, Kentucky, and included approximately 8,200 lots, including approximately 400 homes in inventory and control of approximately 900 lots through land option contracts. We also assumed a sales order backlog of 622 homes. The acquired net assets were recorded at their estimated fair values. The acquisition of these assets was not material to our results of operations or financial condition. We acquired substantially all of the assets of JW Homes, including the brand John Wieland Homes and Neighborhoods, in a series of transactions in January 2016 for approximately $430.0 million in cash (of which approximately $13.0 million is expected to be paid subsequent to January 2016) and the assumption of certain payables related to such assets. The net assets acquired were located primarily in Atlanta, Charleston, Charlotte, Nashville, and Raleigh and included approximately 7,000 lots, including approximately 400 homes in inventory and control of approximately 1,300 lots through land option contracts. We also assumed a sales order backlog of approximately 300 homes. The acquired net assets will be recorded at their estimated fair values. The acquisition of these assets is not expected to have a material impact on our results of operations or financial condition. Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). Cash and equivalents Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2015 and 2014 also included $27.5 million and $5.1 million , respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. Restricted cash We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. Investments in unconsolidated entities We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 5 . Intangible assets Intangible assets consist of tradenames acquired in connection with the 2009 acquisition of Centex Corporation ("Centex") and the 2001 acquisition of Del Webb Corporation ("Del Webb"). These intangible assets were valued at the acquisition date and are being amortized over 20 -year lives. The acquired cost and accumulated amortization of our intangible assets were $259.0 million and $148.8 million , respectively, at December 31, 2015 , and $259.0 million and $135.9 million , respectively, at December 31, 2014 . Amortization expense totaled $12.9 million , $13.0 million and $13.1 million in 2015 , 2014 and 2013 , respectively, and is expected to be $12.9 million in each of the next five years. The ultimate realization of these assets is dependent upon estimates of future cash flows and benefits that we expect to generate from their use. If we determine that the carrying values of intangible assets may not be recoverable based upon the existence of one or more indicators of impairment, we use a projected undiscounted cash flow method to determine if impairment exists. If the carrying values of the intangible assets exceed the expected undiscounted cash flows, then we measure impairment as the difference between the fair value of the asset and the recorded carrying value. There were no impairments of tradenames during 2015 , 2014 , or 2013 . Property and equipment, net, and depreciation Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: model home furniture - two years; office furniture and equipment - three to ten years; and leasehold improvements - life of the lease. Property and equipment are included in other assets and totaled $86.3 million net of accumulated depreciation of $185.8 million at December 31, 2015 and $75.2 million net of accumulated depreciation of $192.2 million at December 31, 2014 . Depreciation expense totaled $33.3 million , $26.8 million , and $18.5 million in 2015 , 2014 , and 2013 , respectively. Advertising costs Advertising costs are expensed to selling, general, and administrative expense as incurred and totaled $45.3 million , $41.8 million , and $42.4 million , in 2015 , 2014 , and 2013 , respectively. Employee benefits We maintain defined contribution retirement plans that cover substantially all of our employees. Company contributions to the plans totaled $12.6 million , $12.1 million , and $11.0 million in 2015 , 2014 , and 2013 , respectively. Other expense, net Other expense, net consists of the following ($000’s omitted): 2015 2014 2013 Write-offs of deposits and pre-acquisition costs (Note 3) $ 5,021 $ 6,099 $ 3,122 Loss on debt retirements (Note 6) — 8,584 26,930 Lease exit and related costs 2,463 9,609 2,778 Amortization of intangible assets (Note 1) 12,900 13,033 13,100 Equity in (earnings) loss of unconsolidated entities ( Note 5 ) (7,355 ) (8,226 ) (993 ) Interest income (3,107 ) (4,632 ) (4,395 ) Interest expense 788 849 712 Miscellaneous, net (a) 6,653 1,420 34,823 $ 17,363 $ 26,736 $ 76,077 (a) Miscellaneous, net includes a charge of $20.0 million in 2015 resulting from the Applecross matter (see Note 12 ) and charges totaling $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12 ). Earnings per share Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares and restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price of our common shares are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our earnings per share excluded 3.9 million , 6.6 million , and 9.6 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, in 2015 , 2014 , and 2013 , respectively. In accordance with ASC 260 "Earnings Per Share" ("ASC 260"), the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. 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): December 31, 2015 December 31, 2014 December 31, 2013 Numerator: Net income $ 494,090 $ 474,338 $ 2,620,116 Less: earnings distributed to participating securities (755 ) (583 ) (407 ) Less: undistributed earnings allocated to participating securities (2,448 ) (2,668 ) (19,201 ) Numerator for basic earnings per share $ 490,887 $ 471,087 $ 2,600,508 Add back: undistributed earnings allocated to participating securities 2,448 2,668 19,201 Less: undistributed earnings reallocated to participating securities (2,429 ) (2,643 ) (18,845 ) Numerator for diluted earnings per share $ 490,906 $ 471,112 $ 2,600,864 Denominator: Basic shares outstanding 356,576 370,377 383,077 Effect of dilutive securities 3,217 3,725 3,789 Diluted shares outstanding 359,793 374,102 386,866 Earnings per share: Basic $ 1.38 $ 1.27 $ 6.79 Diluted $ 1.36 $ 1.26 $ 6.72 Share-based compensation We measure compensation cost for restricted shares and restricted share units at fair value on the grant date. Fair value is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted shares and restricted share units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 8 . Income taxes The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740, “Income Taxes” (“ASC 740”), which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including changes in facts or circumstances, changes in law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 9 . Homebuilding revenue recognition Homebuilding revenue and related profit are generally recognized when title to and possession of the property are transferred to the buyer. In situations where the buyer’s financing is originated by Pulte Mortgage and the buyer has not made an adequate initial or continuing investment, the profit on such sale is deferred until the sale of the related mortgage loan to a third-party investor has been completed. If there is a loss on the sale of the property, the loss on such sale is recognized at the time of closing. The amount of such deferred profits were not material at either December 31, 2015 or December 31, 2014 . Sales incentives When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. Inventory and cost of revenues Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and commissions and closing costs applicable to the home. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. We record valuation adjustments on land inventory when events and circumstances indicate that the related community may be impaired and when the cash flows estimated to be generated by the community are less than its carrying amount. Such indicators include gross margins or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community. Impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community. Our evaluations for impairments are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. See Note 3 . Land held for sale We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 3 . Land option agreements We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 3 . If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2015 or December 31, 2014 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2015 December 31, 2014 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 77,641 $ 1,064,506 $ 56,039 $ 891,506 Other land options 84,478 981,687 71,241 999,079 $ 162,119 $ 2,046,193 $ 127,280 $ 1,890,585 Start-up costs Costs and expenses associated with opening new communities are expensed to selling, general, and administrative expenses as incurred. Allowance for warranties Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time revenue is recognized for each home closing. Self-insured risks We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 12 . Residential mortgage loans available-for-sale Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 12 for discussion of the risks retained related to mortgage loan originations. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At December 31, 2015 and 2014 , residential mortgage loans available-for-sale had an aggregate fair value of $442.7 million and $339.5 million , respectively, and an aggregate outstanding principal balance of $429.6 million and $327.4 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $(0.3) million and $1.7 million for the years ended December 31, 2015 and 2014 , respectively. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages during 2015 , 2014 , and 2013 were $80.8 million , $67.2 million , and $80.3 million , respectively, and have been included in Financial Services revenues. Mortgage servicing rights We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. Such reserves were immaterial at December 31, 2015 and 2014 and are included in accrued and other liabilities. Loans held for investment We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are reviewed annually for impairment, or when recoverability becomes doubtful. Loans held for investment are included in other assets and totaled $7.6 million and $12.5 million at December 31, 2015 and 2014 , respectively. Interest income on mortgage loans Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $6.9 million , $7.2 million , and $7.5 million in 2015 , 2014 , and 2013 , respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. Mortgage servicing, origination, and commitment fees Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance, or a contracted set fee in the case of certain sub-servicing arrangements, and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Loan origination costs related to residential mortgage loans available-for-sale are recognized as incurred in Financial Services expenses while the associated mortgage origination fees are recognized in Financial Services revenues as earned, generally upon loan closing. Title services Revenues associated with our title operations are recognized within Financial Services revenues as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Derivative instruments and hedging activities We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). At December 31, 2015 and 2014 , we had aggregate interest rate lock commitments of $208.2 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 closed loans. 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 extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. At December 31, 2015 and 2014 , we had unexpired forward contracts of $525.0 million and $371.0 million , respectively, and whole loan investor commitments of $77.6 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 are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 75 days. The fair values of derivative instruments and their location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2015 December 31, 2014 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 5,854 $ 280 $ 4,313 $ 65 Forward contracts 1,178 840 79 3,653 Whole loan commitments 358 345 31 619 $ 7,390 $ 1,465 $ 4,423 $ 4,337 New accounting pronouncements 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 annual 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 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 int |
Corporate Office Relocation
Corporate Office Relocation | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Corporate office relocation | Corporate office relocation In May 2013, we announced our plan to relocate our corporate offices to Atlanta, Georgia, from the previous location in Bloomfield Hills, Michigan. The relocation of operations is occurring in phases over time and is expected to be substantially complete in 2016. We recorded employee severance, retention, relocation, and related expenses of $2.0 million , $7.6 million , and $15.0 million in 2015 , 2014 , and 2013 , respectively. We also recorded lease exit and asset impairment expenses totaling $2.3 million , $8.7 million , and $0.4 million in 2015 , 2014 , and 2013 , respectively. Severance, retention, relocation, and related expenses are recorded within selling, general, and administrative expense, while lease exit and asset impairment expenses are included in other expense, net. We expect the remaining expenses to total less than $10.0 million . |
Inventory And Land Held For Sal
Inventory And Land Held For Sale | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory and land held for sale | Inventory and land held for sale Major components of inventory at December 31, 2015 and 2014 were ($000’s omitted): 2015 2014 Homes under construction $ 1,408,260 $ 1,084,137 Land under development 3,259,066 2,545,049 Raw land 782,732 762,914 $ 5,450,058 $ 4,392,100 In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2015 2014 2013 Interest in inventory, beginning of period $ 167,638 $ 230,922 $ 331,880 Interest capitalized 120,001 131,444 154,107 Interest expensed (138,141 ) (194,728 ) (255,065 ) Interest in inventory, end of period $ 149,498 $ 167,638 $ 230,922 Land-related charges We recorded the following land-related charges ($000's omitted): 2015 2014 2013 Land impairments $ 7,347 $ 3,911 $ 2,944 Net realizable value adjustments ("NRV") - land held for sale (901 ) 1,158 3,606 Write-offs of deposits and pre-acquisition costs 5,021 6,099 3,122 Total land-related charges $ 11,467 $ 11,168 $ 9,672 Land held for sale Land held for sale at December 31, 2015 and 2014 was as follows ($000’s omitted): 2015 2014 Land held for sale, gross $ 86,913 $ 108,725 Net realizable value reserves (5,421 ) (7,535 ) Land held for sale, net $ 81,492 $ 101,190 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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. Home sale revenues for detached and attached homes were $5.0 billion and $841.5 million in 2015 , $4.8 billion and $885.8 million in 2014 , and $4.5 billion and $939.0 million in 2013 , respectively. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments. For 2015, we realigned our organizational structure and reportable segment presentation. Accordingly, the segment information provided in this note has been reclassified to conform to the current presentation for all periods presented. Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio Texas: Texas West: Arizona, California, Nevada, New Mexico, Washington 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 . Operating Data by Segment ($000’s omitted) Years Ended December 31, 2015 2014 2013 Revenues: Northeast $ 682,112 $ 710,859 $ 819,709 Southeast 1,058,089 949,635 842,921 Florida 1,019,733 917,956 802,665 Midwest 1,020,691 872,241 791,537 Texas 845,772 859,165 835,473 West 1,214,814 1,386,869 1,446,339 5,841,211 5,696,725 5,538,644 Financial Services 140,753 125,638 140,951 Consolidated revenues $ 5,981,964 $ 5,822,363 $ 5,679,595 Income before income taxes: Northeast (a) $ 82,616 $ 103,865 $ 110,246 Southeast 172,330 156,513 121,055 Florida 196,525 190,441 139,673 Midwest 91,745 78,863 84,551 Texas 121,329 133,005 111,431 West 169,394 254,724 258,960 Other homebuilding (b) (76,622 ) (282,234 ) (346,803 ) 757,317 635,177 479,113 Financial Services (c) 58,706 54,581 48,709 Consolidated income before income taxes $ 816,023 $ 689,758 $ 527,822 (a) Northeast includes a charge of $20.0 million in 2015 resulting from the Applecross matter (see Note 12 ). (b) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments, in addition to: losses on debt retirements of $8.6 million and $26.9 million in 2014 and 2013 , respectively (see Note 6 ); adjustments to general liability insurance reserves relating to a reversal of $62.2 million in 2015 and a charge of $69.3 million in 2014 (see Note 12 ); costs associated with the relocation of our corporate headquarters totaling $4.4 million , $16.3 million , and $15.4 million in 2015, 2014, and 2013, respectively (see Note 2 ); and charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12 ). (c) Financial Services included reductions in loan origination liabilities totaling $11.8 million and $18.6 million in 2015 and 2014, respectively. Operating Data by Segment ($000's omitted) 2015 2014 2013 Land-related charges*: Northeast $ 3,301 $ 2,824 $ 557 Southeast 3,022 1,826 998 Florida 4,555 487 1,076 Midwest 2,319 2,347 1,883 Texas 295 321 191 West (2,615 ) 1,696 2,023 Other homebuilding 590 1,667 2,944 $ 11,467 $ 11,168 $ 9,672 * Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 1 for additional discussion of these charges. Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Depreciation and amortization: Northeast $ 1,682 $ 1,852 $ 1,987 Southeast 3,492 2,666 1,647 Florida 3,536 2,150 1,334 Midwest 5,019 3,153 1,644 Texas 2,928 1,698 1,784 West 5,995 5,263 3,590 Other homebuilding (a) 20,254 19,548 16,248 42,906 36,330 28,234 Financial Services 3,316 3,534 3,353 $ 46,222 $ 39,864 $ 31,587 (a) Other homebuilding includes amortization of intangible assets. Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Equity in (earnings) loss of unconsolidated entities: Northeast $ 2 $ (4,733 ) $ (58 ) Southeast — — — Florida 2 (7 ) (4 ) Midwest (337 ) (481 ) 151 Texas — — — West (5,107 ) (2,422 ) (1,437 ) Other homebuilding (1,915 ) (583 ) 355 (7,355 ) (8,226 ) (993 ) Financial Services — (182 ) (137 ) $ (7,355 ) $ (8,408 ) $ (1,130 ) Operating Data by Segment ($000's omitted) December 31, 2015 Homes Under Land Under Raw Land Total Total Northeast $ 163,173 $ 292,631 $ 121,522 $ 577,326 $ 688,610 Southeast 196,456 367,577 139,246 703,279 765,933 Florida 227,910 574,092 97,185 899,187 1,013,543 Midwest 197,738 414,386 68,918 681,042 734,834 Texas 191,424 317,702 107,737 616,863 691,342 West 413,208 1,094,112 222,920 1,730,240 1,924,958 Other homebuilding (a) 18,351 198,566 25,204 242,121 2,638,951 1,408,260 3,259,066 782,732 5,450,058 8,458,171 Financial Services — — — — 508,989 $ 1,408,260 $ 3,259,066 $ 782,732 $ 5,450,058 $ 8,967,160 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 Midwest 176,966 326,549 70,266 573,781 624,815 Texas 134,873 250,102 91,765 476,740 528,392 West 270,060 850,629 230,199 1,350,888 1,485,685 Other homebuilding (a) 19,015 196,762 34,401 250,178 3,527,731 1,084,137 2,545,049 762,914 4,392,100 8,148,445 Financial Services — — — — 420,965 $ 1,084,137 $ 2,545,049 $ 762,914 $ 4,392,100 $ 8,569,410 December 31, 2013 Homes Under Land Under Raw Land Total Total Northeast $ 212,611 $ 325,241 $ 106,681 $ 644,533 $ 731,259 Southeast 139,484 274,981 146,617 561,082 599,271 Florida 140,366 295,631 104,766 540,763 618,449 Midwest 109,251 184,172 23,092 316,515 346,851 Texas 130,398 223,979 57,480 411,857 466,198 West 277,636 678,231 257,512 1,213,379 1,309,850 Other homebuilding (a) 32,401 207,152 50,879 290,432 4,334,591 1,042,147 2,189,387 747,027 3,978,561 8,406,469 Financial Services — — — — 327,674 $ 1,042,147 $ 2,189,387 $ 747,027 $ 3,978,561 $ 8,734,143 (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 | 12 Months Ended |
Dec. 31, 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. These joint ventures generally purchase, develop, and sell land, including selling land to us for use in our homebuilding operations. A summary of our joint ventures is presented below ($000’s omitted): December 31, 2015 2014 Investments in joint ventures with debt non-recourse to PulteGroup $ 23,236 $ 26,488 Investments in other active joint ventures 18,031 13,880 Total investments in unconsolidated entities $ 41,267 $ 40,368 Total joint venture debt $ 16,369 $ 25,849 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 226 $ 283 Joint venture debt non-recourse to PulteGroup 6,744 11,341 PulteGroup's total proportionate share of joint venture debt $ 6,970 $ 11,624 In 2015 , 2014 , and 2013 , we recognized income from unconsolidated joint ventures of $7.4 million , $8.4 million , and $1.1 million , respectively (of which $0.2 million and $0.1 million for 2014 and 2013, respectively, related to Financial Services). We received distributions from our unconsolidated joint ventures of $6.0 million , $13.1 million , and $3.1 million , in 2015 , 2014 , and 2013 , respectively, and made no significant capital contributions during such periods. The timing of cash flows related 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 exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our senior notes are summarized as follows ($000’s omitted): December 31, 2015 2014 5.25% unsecured senior notes due June 2015 (a) $ — $ 236,452 6.50% unsecured senior notes due May 2016 (a) 464,436 462,009 7.625% unsecured senior notes due October 2017 (b) 122,841 122,752 7.875% unsecured senior notes due June 2032 (a) 299,283 299,239 6.375% unsecured senior notes due May 2033 (a) 398,714 398,640 6.00% unsecured senior notes due February 2035 (a) 299,495 299,469 Total senior notes – carrying value (c) $ 1,584,769 $ 1,818,561 Estimated fair value $ 1,643,651 $ 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. The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2015 , we were in compliance with all of the covenants and requirements under the senior notes. Our senior note principal maturities are as follows: 2016 - $465.2 million ; 2017 - $123.0 million ; 2018 through 2020 - $0.0 million ; and thereafter - $1.0 billion . Refer to Note 13 for supplemental consolidating financial information of the Company. Debt retirement We retired outstanding senior notes totaling $238.0 million , $245.7 million , and $461.4 million during 2015 , 2014 , and 2013 , respectively. The 2014 and 2013 retirements occurred prior to the stated maturity dates and resulted in losses totaling $8.6 million and $26.9 million in 2014 and 2013 , respectively. Losses on debt repurchase transactions include the write-off of unamortized discounts, premiums, and transaction fees related to the repurchased debt and are reflected in other expense (income), net. Revolving credit facility In July 2014, we entered into a senior unsecured revolving credit facility (the “Revolving Credit Facility”) maturing in July 2017. The Revolving Credit Facility provides for maximum borrowings of $500.0 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 or Base Rate plus an applicable margin, as defined. At December 31, 2015 , we had no borrowings outstanding and $191.3 million of letters of credit issued under the Revolving Credit Facility. The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth, a minimum Interest Coverage Ratio, and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of December 31, 2015 , we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. Our available and unused borrowings under the Revolving Credit Facility, net of outstanding letters of credit, amounted to $308.7 million and $291.6 million as of December 31, 2015 and 2014 , respectively. 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, and was 1.5% at December 31, 2015. 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 December 31, 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 $35.3 million and $22.3 million at December 31, 2015 and 2014 , respectively. 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 amendment to the Repurchase Agreement that extended the effective date to September 2016 . The Repurchase Agreement was subsequently amended in December 2015 to increase the borrowing capacity to $310.0 million . The capacity decreased to $175.0 million on January 19, 2016, and increases 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 $267.9 million and $140.2 million outstanding under the Repurchase Agreement at December 31, 2015 , and 2014 , respectively, and was in compliance with its covenants and requirements as of such dates. The following is aggregate borrowing information for our mortgage operations ($000’s omitted): December 31, 2015 2014 Available credit lines $ 310,000 $ 150,000 Unused credit lines $ 42,123 $ 9,759 Weighted-average interest rate 2.65 % 2.70 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity We reinstated our quarterly cash dividend in July 2013 and subsequently raised the quarterly dividend in both 2014 and 2015. Our declared quarterly cash dividends totaled $117.9 million , $86.4 million , and $57.5 million in 2015 , 2014 , and 2013 , respectively. Under the share repurchase program authorized by our Board of Directors, we repurchased 21.2 million , 12.9 million , and $7.2 million shares in 2015 , 2014 , and 2013, respectively, for a total of $433.7 million , $245.8 million , and $118.1 million in 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , we had remaining authorization to repurchase $604.8 million of common shares. Under our stock-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted stock, generally related to the payment of minimum tax obligations. During 2015 , 2014 , and 2013 , employees surrendered shares valued at $9.0 million , $7.2 million , and $9.6 million , respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock compensation plans | Stock compensation plans We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted shares, performance shares, and restricted share units ("RSUs") to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not to exceed ten years. Non-employee directors are entitled to an annual distribution of stock options, common shares, or RSUs. All options granted to non-employee directors vest immediately and are exercisable for ten years from the grant date. Options granted to employees generally vest incrementally over four years and are generally exercisable for ten years from the vest date. Restricted shares and RSUs generally cliff vest after three years. Restricted share holders have voting rights during the vesting period and both restricted share and RSU holders receive cash dividends during the vesting period. Performance shares vest upon attainment of the stated performance targets and minimum service requirements and are converted into common shares upon distribution. RSUs represent the right to receive an equal number of common shares and are converted into common shares upon distribution. As of December 31, 2015 , there were 25.1 million shares that remained available for grant under the plan. Our stock compensation expense for the three years ended December 31, 2015 , is presented below ($000's omitted): 2015 2014 2013 Stock options $ 37 $ 121 $ 1,056 Restricted shares (including RSUs and performance shares) 16,852 13,690 13,418 Long-term incentive plans 7,863 15,481 16,006 $ 24,752 $ 29,292 $ 30,480 Stock options A summary of stock option activity for the three years ended December 31, 2015 , is presented below (000’s omitted except per share data): 2015 2014 2013 Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Outstanding, beginning of year 9,370 $ 23 12,887 $ 23 17,148 $ 22 Granted — — — — — — Exercised (904 ) 12 (1,422 ) 11 (1,432 ) 14 Forfeited (2,426 ) 37 (2,095 ) 29 (2,829 ) 25 Outstanding, end of year 6,040 $ 19 9,370 $ 23 12,887 $ 23 Options exercisable at year end 6,040 $ 19 9,265 $ 23 12,402 $ 23 Weighted-average per share fair value of options granted during the year $ — $ — $ — The following table summarizes information about the weighted-average remaining contractual lives of stock options outstanding and exercisable at December 31, 2015 : Options Outstanding Options Exercisable Number Outstanding (000's omitted) Weighted- Average Remaining Contract Life (in years) Weighted- Average Per Share Exercise Price Number Exercisable (000's omitted) Weighted- Average Per Share Exercise Price $0.01 to $10.00 326 4.8 $ 8 326 $ 8 $10.01 to $20.00 3,697 3.5 12 3,697 12 $20.01 to $30.00 152 1.0 28 152 28 $30.01 to $40.00 1,865 1.0 34 1,865 34 6,040 2.7 $ 19 6,040 $ 19 We did not issue any stock options during 2015, 2014, or 2013. As a result, there is no unrecognized compensation cost related to stock option awards at December 31, 2015 . The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of stock options that were exercised during 2015 , 2014 , and 2013 was $9.4 million , $14.1 million , and $10.8 million , respectively. As of December 31, 2015 , options outstanding had an intrinsic value of $25.3 million , of which $25.3 million related to options exercisable. Restricted shares (including RSUs and performance shares) A summary of restricted share activity, including RSUs and performance shares, for the three years ended December 31, 2015 , is presented below (000’s omitted, except per share data): 2015 2014 2013 Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Outstanding, beginning of year 2,890 $ 15 3,211 $ 11 3,822 $ 9 Granted 932 $ 22 974 $ 19 806 $ 21 Distributed (1,090 ) $ 10 (1,019 ) $ 10 (1,391 ) $ 11 Forfeited (156 ) $ 19 (276 ) $ 15 (26 ) $ 15 Outstanding, end of year 2,576 $ 18 2,890 $ 15 3,211 $ 11 Vested, end of year 89 $ 14 75 $ 13 60 $ 12 During 2015 , 2014 , and 2013 , the total fair value of shares vested during the year was $10.2 million , $8.1 million , and $12.7 million , respectively. Unamortized compensation cost related to restricted share awards was $16.0 million at December 31, 2015 . These costs will be expensed over a weighted-average period of approximately 2 years. Additionally, there were 88,727 RSUs outstanding at December 31, 2015 , that had vested but had not yet been paid out because the payout date had been deferred by the holder. Long-term incentive plans We maintain a long-term incentive plan for certain of our field employees that provides awards based on the achievement of stated performance targets over a three -year period. Awards are earned each year in the form of share units that are paid out in cash at the end of the performance period based upon the number of share units earned times the share price at the end of the performance period. Accordingly, the liability associated with the awards is adjusted each reporting period based on movements in the share price and totaled $2.7 million and $9.5 million at December 31, 2015 and 2014 , respectively. We also maintain a long-term performance award plan for senior management that provides awards based on the achievement of stated performance targets over a three -year period. Awards are earned based on our cumulative performance over the performance period and are stated in dollars but settled in common shares based on the stock price at the end of the performance period. If the share price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We recognize expense for these awards based on the probability of achievement of the stated performance targets. The liability for these awards totaled $20.5 million and $26.2 million at December 31, 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2015 2014 2013 Current expense (benefit) Federal $ 8,760 $ 5,619 $ 5,725 State and other 1,474 (13,968 ) (1,596 ) $ 10,234 $ (8,349 ) $ 4,129 Deferred expense (benefit) Federal $ 277,895 $ 232,969 $ (1,833,580 ) State and other 33,804 (9,200 ) (262,843 ) $ 311,699 $ 223,769 $ (2,096,423 ) Income tax expense (benefit) $ 321,933 $ 215,420 $ (2,092,294 ) The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2015 2014 2013 Income taxes at federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax 2.8 3.0 4.0 Deferred tax asset valuation allowance 0.4 (6.6 ) (438.0 ) Tax contingencies 0.1 (1.4 ) 0.3 Other 1.2 1.2 2.3 Effective rate 39.5 % 31.2 % (396.4 )% Our effective tax rate was 39.5% , 31.2% and (396.4)% for 2015 , 2014 , and 2013 respectively. The 2015 effective tax rate exceeds the federal statutory rate, primarily due to state taxes including changes in valuation allowance on state deferred tax assets and revaluation of deferred tax assets due to state law changes and business operations. The 2014 effective tax rate is less than the federal statutory rate primarily due to reversal of a portion of our valuation allowance related to certain state deferred tax assets, along with the favorable resolution of certain federal and state income tax matters. The 2013 effective tax rate differed from the federal statutory rate primarily due to the reversal of substantially all of the valuation allowance related to our federal and certain state deferred tax assets. Deferred tax assets and liabilities reflect temporary differences arising from the different treatment of items for tax and accounting purposes. Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2015 2014 Deferred tax assets: Accrued insurance $ 237,836 $ 254,031 Non-deductible reserves and other 155,488 191,097 Inventory valuation reserves 476,673 599,763 Net operating loss ("NOL") carryforwards: Federal 367,302 515,568 State 274,686 257,738 Alternative minimum tax credit carryforwards 44,161 34,812 Energy and other credit carryforwards 28,669 27,858 1,584,815 1,880,867 Deferred tax liabilities: Capitalized items, including real estate basis differences, deducted for tax, net (39,220 ) (31,584 ) Trademarks and tradenames (41,664 ) (46,362 ) (80,884 ) (77,946 ) Valuation allowance (109,052 ) (82,253 ) Net deferred tax asset $ 1,394,879 $ 1,720,668 Our gross federal NOL carryforward is approximately $1.0 billion and expires between 2028 and 2032 . We also have significant state NOLs in various jurisdictions which may generally be carried forward from 5 to 20 years, depending on the jurisdiction. The state NOL carryforwards expire at various dates as follows: of the total state DTA, $32.2 million from 2016 to 2020 , $46.1 million from 2021 to 2025 , and $196.4 million from 2026 to 2035 . In addition, we have federal energy credit carryforwards expiring in 2026 to 2034 and alternative minimum tax credits that can be carried forward indefinitely. 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. As a result of the merger with Centex in 2009, our ability to use certain of Centex’s pre-ownership change NOL carryforwards and built-in losses or deductions is limited by Section 382 of the Internal Revenue Code. We do not believe that the Section 382 limitation will prevent the Company from using Centex’s pre-ownership change federal NOL carryforwards and built-in losses. We do believe that certain of our state NOL carryforwards will be limited due to Section 382. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. In 2014 , we recorded an income tax benefit of $45.6 million as the result of a reversal of valuation allowance related primarily to certain of our state deferred tax assets as the result of an increase in expected future taxable income in certain jurisdictions. In 2013, we recorded an income tax benefit of $2.1 billion as the result of a reversal of valuation allowance. Based on previous evaluations, we had fully reserved our net deferred tax assets due to the uncertainty of their realization. One of the primary pieces of negative evidence we considered was the significant losses we had incurred in the recent years prior to 2013, including being in a three-year cumulative pre-tax loss position, which we exited in 2013. During 2013, we determined that the valuation allowance against substantially all of our federal deferred tax assets and a significant portion of our state deferred tax assets was no longer required. Accordingly, we reversed $2.1 billion of valuation allowance. We conduct our evaluations by considering all available positive and negative evidence. The principal positive evidence that led to the reversal of the valuation allowance in 2013 included: (1) our emergence from a three-year cumulative loss in 2013; (2) the significant positive income we generated during 2012 and 2013, including seven consecutive quarters of pretax income as of December 31, 2013; (3) continued improvements in 2013 over recent years in other key operating metrics, including revenues, gross margin, and overhead leverage; (4) our forecasted future profitability; (5) improvement in our financial position; and (6) significant evidence that conditions in the U.S. housing industry were more favorable than in recent years and our belief that conditions would continue to be favorable over the long-term. Even if industry conditions weaken from current levels, we believe we will be able to adjust our operations to sustain long-term profitability. As a result of certain realization requirements of ASC 718, the table of deferred tax assets and liabilities does not include certain deferred tax assets as of December 31, 2015 and 2014 , that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Equity will be increased by $19.4 million if and when such deferred tax assets are ultimately realized. We use the with-and-without approach when determining when excess tax benefits have been realized. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We had $39.0 million and $32.9 million of gross unrecognized tax benefits at December 31, 2015 and 2014 , respectively. Of these amounts, $39.0 million and $32.9 million , respectively, would impact the effective tax rate if recognized. Additionally, we had accrued interest and penalties of $17.2 million and $17.3 million at December 31, 2015 and 2014 , respectively. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $35.0 million , excluding interest and penalties, primarily due to potential settlements. A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2015 2014 2013 Unrecognized tax benefits, beginning of period $ 32,911 $ 173,310 $ 170,425 Increases related to tax positions taken during a prior period 5,763 — 12,877 Decreases related to tax positions taken during a prior period — (133,883 ) (7,502 ) Increases related to tax positions taken during the current period 318 237 381 Decreases related to settlements with taxing authorities — (6,753 ) (1,434 ) Reductions as a result of a lapse of the applicable statute of limitations — — (1,437 ) Unrecognized tax benefits, end of period $ 38,992 $ 32,911 $ 173,310 We continue to participate in the Compliance Assurance Process (“CAP”) with the IRS as an alternative to the traditional IRS examination process. As a result of our participation in CAP, federal tax years 2013 and prior are closed. Tax year 2014 is expected to close by the second quarter of 2016, and tax year 2015 is expected to close by the second quarter of 2017. We are currently under examination by various state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The final outcome of these examinations is not yet determinable. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 2005 to 2015 . |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 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 December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 442,715 $ 339,531 Interest rate lock commitments Level 2 5,574 4,248 Forward contracts Level 2 338 (3,574 ) Whole loan commitments Level 2 13 (588 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 11,052 $ 13,925 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 775,435 $ 1,309,220 Financial Services debt Level 2 267,877 140,241 Term loan Level 2 500,000 — Senior notes Level 2 1,643,651 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 value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. The carrying amounts of cash and equivalents, Financial Services debt, 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 December 31, 2015 and 2014 , respectively. |
Other Assets and Accrued and Ot
Other Assets and Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Other assets and accrued and other liabilities | Other assets and accrued and other liabilities Other assets are presented below ($000’s omitted): December 31, 2015 2014 Accounts and notes receivable: Insurance receivables (Note 12) $ 130,170 $ 60,598 Notes receivable 28,288 30,699 Other receivables 83,177 63,867 241,635 155,164 Prepaid expenses 109,113 72,585 Deposits and pre-acquisition costs (Note 1) 162,119 127,280 Property and equipment, net (Note 1) 86,312 75,219 Income taxes receivable (Note 9) 25,080 21,330 Other 46,840 91,640 $ 671,099 $ 543,218 We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 12 ), municipalities, and vendors. In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. Accrued and other liabilities are presented below ($000’s omitted): December 31, 2015 2014 Self-insurance liabilities (Note 12) $ 692,053 $ 710,245 Loan origination liabilities (Note 12) 46,381 58,222 Compensation-related 124,798 142,586 Warranty (Note 12) 61,179 65,389 Community development district obligations (Note 12) 11,964 17,122 Accrued interest 20,541 20,446 Limited recourse notes payable 35,336 22,255 Dividends payable 31,568 29,682 Other 260,453 277,827 $ 1,284,273 $ 1,343,774 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Leases We lease certain property and equipment under non-cancelable operating leases. The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2015 , are as follows ($000’s omitted): Years Ending December 31, 2016 $ 28,561 2017 21,353 2018 18,320 2019 15,981 2020 8,940 Thereafter 34,974 Total minimum lease payments (a) $ 128,129 (a) Minimum payments have not been reduced by minimum sublease rentals of $2.5 million due in the future under non-cancelable subleases. Net rental expense for 2015 , 2014 , and 2013 was $27.7 million , $25.3 million , and $23.0 million , respectively. Certain leases contain renewal or purchase options and generally provide that we pay for insurance, taxes, and maintenance. Loan origination liabilities Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If a loan is determined to be faulty, we either repurchase the loans from the investors or reimburse the investors' losses (a “make-whole” payment). Estimating the required liability for these potential losses requires a significant level of management judgment. During 2015 and 2014, we reduced our loan origination liabilities by net reserve releases of $11.4 million and $18.6 million , respectively, based on probable settlements of various repurchase requests and current conditions. Reserves provided (released) are reflected in Financial Services expenses. Given the ongoing volatility in the mortgage industry, changes in values of underlying collateral over time, and other uncertainties regarding the ultimate resolution of these claims, actual costs could differ from our current estimates. Changes in these liabilities were as follows ($000's omitted): 2015 2014 2013 Liabilities, beginning of period $ 58,222 $ 124,956 $ 164,280 Reserves provided (released), net (11,433 ) (18,604 ) — Payments (408 ) (48,130 ) (39,324 ) Liabilities, end of period $ 46,381 $ 58,222 $ 124,956 Community development and other special district obligations A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period during which we are the landowner of the applicable parcels. However, in certain limited instances we record a liability for future assessments. At December 31, 2015 and 2014 , we had $12.0 million and $17.1 million , respectively, in accrued liabilities for outstanding CDD obligations. Letters of credit and surety bonds In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $191.3 million and $1.0 billion , respectively, at December 31, 2015 , and $212.1 million and $1.0 billion , respectively, at December 31, 2014 . In the event any such letter of credit or surety bonds 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. In September 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. In September 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 2015, which is reflected in other expense, net During 2013, we settled a number of claims related to a previously completed luxury community in a market we have since exited. The claims related to a contractual dispute with certain homeowners. As a result of these settlements, we recorded charges of $41.2 million during 2013 , which are 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): 2015 2014 2013 Warranty liabilities, beginning of period $ 65,389 $ 63,992 $ 64,098 Reserves provided 52,684 51,348 49,399 Payments (60,968 ) (47,968 ) (44,925 ) Other adjustments 4,074 (1,983 ) (4,580 ) Warranty liabilities, end of period $ 61,179 $ 65,389 $ 63,992 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 us. Policies issued by the captive insurance subsidiaries represent self-insurance of these risks by us. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. Our insurance coverage requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. Our recorded reserves for all such claims totaled $692.1 million and $710.2 million at December 31, 2015 and 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 65% and 72% of the total general liability reserves at December 31, 2015 and 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. Housing market conditions have been volatile across most of our markets over the past ten years, and we believe such conditions can affect the frequency and cost of construction defect claims. Additionally, IBNR estimates comprise the majority 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. Changes in the frequency and timing of reported claims and estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Additionally, the amount of insurance coverage available for each policy period also impacts our recorded reserves. Because of the inherent uncertainty in estimating future losses related and the timing of such losses related to these claims, actual costs could differ significantly from estimated costs. Adjustments to reserves are recorded in the period in which the change in estimate occurs. During 2015 , we recorded general liability reserve reversals of $32.6 million resulting from a legal settlement and $29.6 million related to changes in our actuarial estimates resulting from favorable claims experience relative to previous actuarial projections. During 2014, we increased general liability insurance reserves by $69.3 million , which was primarily driven by estimated costs associated with siding repairs in certain previously completed communities that, in turn, impacted actuarial estimates for potential future claims. Such adjustments are reflected in "Reserves provided, net" in the below table. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): 2015 2014 2013 Balance, beginning of period $ 710,245 $ 668,100 $ 721,284 Reserves provided, net 16,085 141,790 64,737 Payments (34,277 ) (99,645 ) (117,921 ) Balance, end of period $ 692,053 $ 710,245 $ 668,100 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. As reflected in Note 11 , our receivables from insurance carriers totaled $130.2 million and $60.6 million at December 31, 2015 and 2014 , respectively. The increase in insurance receivables resulted from the continued progression of insured construction defect claims. Given the complexity inherent with resolving construction defect claims in the homebuilding industry as described above, there generally exists a significant lag between our payment of claims and our reimbursements from applicable insurance carriers. Additionally, we are the plaintiff in litigation with certain of our insurance carriers relating to a large portion of the insurance receivables balance. We believe collection of these insurance receivables is probable based on the legal merits of our positions, favorable legal rulings received to date, and our long history of collecting significant amounts of insurance reimbursements under similar insurance policies related to similar claims. While the outcome of these matters 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. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Dec. 31, 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 certain of our wholly-owned Homebuilding subsidiaries and certain other wholly-owned subsidiaries (collectively, the “Guarantors”). Such guaranties are full and unconditional. Our subsidiaries comprising the Financial Services segment along with certain other subsidiaries (collectively, the "Non-Guarantor Subsidiaries") do not guarantee the senior notes. In accordance with Rule 3-10 of Regulation S-X, 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. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 638,602 $ 115,559 $ — $ 754,161 Restricted cash — 20,274 1,000 — 21,274 House and land inventory — 5,450,058 — — 5,450,058 Land held for sale — 80,458 1,034 — 81,492 Residential mortgage loans available- for-sale — — 442,715 — 442,715 Investments in unconsolidated entities 93 36,499 4,675 — 41,267 Other assets 49,255 531,120 90,724 671,099 Intangible assets — 110,215 — — 110,215 Deferred tax assets, net 1,392,251 11 2,617 — 1,394,879 Investments in subsidiaries and intercompany accounts, net 5,529,606 465,644 6,293,018 (12,288,268 ) — $ 6,971,205 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,967,160 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 70,061 $ 1,558,885 $ 169,193 $ — $ 1,798,139 Income tax liabilities 57,050 — — — 57,050 Financial Services debt — — 267,877 — 267,877 Term loan 500,000 — — — 500,000 Senior notes 1,584,769 — — — 1,584,769 Total liabilities 2,211,880 1,558,885 437,070 — 4,207,835 Total shareholders’ equity 4,759,325 5,773,996 6,514,272 (12,288,268 ) 4,759,325 $ 6,971,205 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,967,160 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 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 34,214 451,331 57,673 — 543,218 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) For the year ended December 31, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,792,675 $ — $ — $ 5,792,675 Land sale revenues — 48,536 — — 48,536 — 5,841,211 — — 5,841,211 Financial Services — 1 140,752 — 140,753 — 5,841,212 140,752 — 5,981,964 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,440,893 — — 4,440,893 Land sale cost of revenues — 35,858 — — 35,858 — 4,476,751 — — 4,476,751 Financial Services expenses 313 (276 ) 82,010 — 82,047 Selling, general, and administrative expenses 3 585,870 3,907 — 589,780 Other expense, net 760 17,424 (821 ) — 17,363 Intercompany interest 2,110 7,922 (10,032 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (3,186 ) 753,521 65,688 — 816,023 Income tax expense (benefit) (1,210 ) 297,485 25,658 — 321,933 Income (loss) before equity in income (loss) of subsidiaries (1,976 ) 456,036 40,030 — 494,090 Equity in income (loss) of subsidiaries 496,066 40,484 411,699 (948,249 ) — Net income (loss) 494,090 496,520 451,729 (948,249 ) 494,090 Other comprehensive income (loss) 81 — — — 81 Comprehensive income (loss) $ 494,171 $ 496,520 $ 451,729 $ (948,249 ) $ 494,171 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,662,171 $ — $ — $ 5,662,171 Land sale revenues — 34,554 — — 34,554 — 5,696,725 — — 5,696,725 Financial Services — 889 124,749 — 125,638 — 5,697,614 124,749 — 5,822,363 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,343,249 — — 4,343,249 Land sale cost of revenues — 23,748 — — 23,748 — 4,366,997 — — 4,366,997 Financial Services expenses 784 (130 ) 70,403 — 71,057 Selling, general, and administrative expenses — 661,308 6,507 — 667,815 Other expense, net 9,026 16,847 863 — 26,736 Intercompany interest 9,800 (90 ) (9,710 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (19,610 ) 652,682 56,686 — 689,758 Income tax expense (benefit) (7,473 ) 201,332 21,561 — 215,420 Income (loss) before equity in income (loss) of subsidiaries (12,137 ) 451,350 35,125 — 474,338 Equity in income (loss) of subsidiaries 486,475 38,534 403,505 (928,514 ) — Net income (loss) 474,338 489,884 438,630 (928,514 ) 474,338 Other comprehensive income (loss) 105 — — — 105 Comprehensive income (loss) $ 474,443 $ 489,884 $ 438,630 $ (928,514 ) $ 474,443 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2013 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor Revenues: Homebuilding Home sale revenues $ — $ 5,424,309 $ — $ — $ 5,424,309 Land sale revenues — 114,335 — — 114,335 — 5,538,644 — — 5,538,644 Financial Services — 2,353 138,598 — 140,951 — 5,540,997 138,598 — 5,679,595 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,310,528 — — 4,310,528 Land sale cost of revenues — 104,426 — — 104,426 — 4,414,954 — — 4,414,954 Financial Services expenses 832 970 90,440 — 92,242 Selling, general, and administrative expenses — 573,904 (5,404 ) — 568,500 Other expense (income), net 28,694 43,944 3,439 — 76,077 Intercompany interest 17,518 (8,260 ) (9,258 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (47,044 ) 515,485 59,381 — 527,822 Income tax expense (benefit) (2,113,827 ) (799 ) 22,332 — (2,092,294 ) Income (loss) before equity in income (loss) of subsidiaries 2,066,783 516,284 37,049 — 2,620,116 Equity in income (loss) of subsidiaries 553,333 35,086 485,400 (1,073,819 ) — Net income (loss) 2,620,116 551,370 522,449 (1,073,819 ) 2,620,116 Other comprehensive income (loss) 197 — — — 197 Comprehensive income (loss) $ 2,620,313 $ 551,370 $ 522,449 $ (1,073,819 ) $ 2,620,313 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 184,033 $ (449,701 ) $ (82,461 ) $ — $ (348,129 ) Cash flows from investing activities: Net change in loans held for investment — — 8,664 — 8,664 Change in restricted cash related to letters of credit 3,710 — — — 3,710 Capital expenditures — (41,857 ) (3,583 ) — (45,440 ) Other investing activities, net — 1,937 275 — 2,212 Net cash provided by (used in) investing activities 3,710 (39,920 ) 5,356 — (30,854 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 127,636 — 127,636 Proceeds from debt issuance 500,000 — — 500,000 Repayments of debt (237,995 ) (1,198 ) — — (239,193 ) Borrowings under revolving credit facility 125,000 — — — 125,000 Repayments under revolving credit facility (125,000 ) — — — (125,000 ) Stock option exercises 10,535 — — — 10,535 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (115,958 ) — — — (115,958 ) Intercompany activities, net 90,959 (27,886 ) (63,073 ) — — Net cash provided by (used in) financing activities (195,197 ) (29,084 ) 64,563 — (159,718 ) Net increase (decrease) in cash and equivalents (7,454 ) (518,705 ) (12,542 ) — (538,701 ) Cash and equivalents at beginning of year 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of year $ — $ 638,602 $ 115,559 $ — $ 754,161 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 206,485 $ 175,415 $ (72,651 ) $ — $ 309,249 Cash flows from investing activities: Net change in loans held for investment — — 335 — 335 Change in restricted cash related to letters of credit 54,989 — — — 54,989 Capital expenditures — (44,956 ) (3,834 ) — (48,790 ) Cash used for business acquisitions — (82,419 ) — — (82,419 ) Other investing activities, net — 8,274 (13 ) — 8,261 Net cash provided by (used in) investing activities 54,989 (119,101 ) (3,512 ) — (67,624 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 34,577 — 34,577 Repayments of debt (249,765 ) (866 ) — — (250,631 ) Stock option exercises 15,627 — — — 15,627 Share repurchases (253,019 ) — — — (253,019 ) Dividends paid (75,646 ) — — — (75,646 ) Intercompany activities, net 46,419 (87,140 ) 40,721 — — Net cash provided by (used in) financing activities (516,384 ) (88,006 ) 75,298 — (529,092 ) Net increase (decrease) in cash and equivalents (254,910 ) (31,692 ) (865 ) — (287,467 ) Cash and equivalents at beginning of year 262,364 1,188,999 128,966 — 1,580,329 Cash and equivalents at end of year $ 7,454 $ 1,157,307 $ 128,101 $ — $ 1,292,862 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2013 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ (41 ) $ 865,267 $ 15,910 $ — $ 881,136 Cash flows from investing activities: Net change in loans held for investment — — (12,265 ) — (12,265 ) Change in restricted cash related to letters of credit (4,152 ) — — — (4,152 ) Capital expenditures — (26,472 ) (2,427 ) — (28,899 ) Other investing activities, net — (661 ) — — (661 ) Net cash provided by (used in) investing activities (4,152 ) (27,133 ) (14,692 ) — (45,977 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (33,131 ) — (33,131 ) Repayments of debt (485,048 ) 5,221 — (479,827 ) Stock option exercises 19,411 — — — 19,411 Share repurchases (127,661 ) — — — (127,661 ) Dividends paid (38,382 ) — — — (38,382 ) Intercompany activities, net 752,069 (718,299 ) (33,770 ) — — Net cash provided by (used in) financing activities 120,389 (713,078 ) (66,901 ) — (659,590 ) Net increase (decrease) in cash and equivalents 116,196 125,056 (65,683 ) — 175,569 Cash and equivalents at beginning of year 146,168 1,063,943 194,649 — 1,404,760 Cash and equivalents at end of year $ 262,364 $ 1,188,999 $ 128,966 $ — $ 1,580,329 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results (unaudited) | Quarterly results (unaudited) UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2015 Homebuilding: Revenues $ 1,105,700 $ 1,249,537 $ 1,467,780 $ 2,018,194 $ 5,841,211 Cost of revenues 854,523 958,592 1,122,175 1,541,461 4,476,751 Income before income taxes (b) 90,748 157,640 164,911 344,019 757,317 Financial Services: Revenues $ 27,598 $ 30,754 $ 38,967 $ 43,434 $ 140,753 Income before income taxes (c) 5,057 9,987 14,365 29,297 58,706 Consolidated results: Revenues $ 1,133,298 $ 1,280,291 $ 1,506,747 $ 2,061,628 $ 5,981,964 Income before income taxes 95,805 167,627 179,276 373,315 816,023 Income tax expense 40,834 64,303 71,507 145,288 321,933 Net income $ 54,971 $ 103,324 $ 107,769 $ 228,027 $ 494,090 Net income per share: Basic $ 0.15 $ 0.28 $ 0.31 $ 0.65 $ 1.38 Diluted $ 0.15 $ 0.28 $ 0.30 $ 0.64 $ 1.36 Number of shares used in calculation: Basic 366,748 361,009 350,147 348,699 356,576 Effect of dilutive securities 3,362 3,232 3,225 3,047 3,217 Diluted 370,110 364,241 353,372 351,746 359,793 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Homebuilding income before income taxes includes reserve reversals resulting from a legal settlement (see Note 12 )of $26.9 million and $5.7 million in the 2nd and 3rd Quarters, respectively; a charge of $20.0 million in the 3rd Quarter related to the Applecross matter (see Note 12 ); and $29.6 million relating to decreased general liability insurance reserves in the 4th Quarter. (c) Financial Services expenses in the 4th Quarter includes a reduction in loan origination liabilities totaling $11.8 million .. UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2014 Homebuilding: Revenues $ 1,093,999 $ 1,254,989 $ 1,561,273 $ 1,786,464 $ 5,696,725 Cost of revenues 833,614 959,524 1,198,908 1,374,951 4,366,997 Income before income taxes (b) 108,435 58,573 214,051 254,118 635,177 Financial Services: Revenues $ 24,895 $ 31,198 $ 33,452 $ 36,093 $ 125,638 Income before income taxes (c) 21,594 9,108 10,877 13,002 54,581 Consolidated results: Revenues $ 1,118,894 $ 1,286,187 $ 1,594,725 $ 1,822,557 $ 5,822,363 Income before income taxes 130,029 67,681 224,928 267,120 689,758 Income tax expense (benefit) (d) 55,210 25,801 84,383 50,025 215,420 Net income $ 74,819 $ 41,880 $ 140,545 $ 217,095 $ 474,338 Net income per share: Basic $ 0.19 $ 0.11 $ 0.37 $ 0.58 $ 1.27 Diluted $ 0.19 $ 0.11 $ 0.37 $ 0.58 $ 1.26 Number of shares used in calculation: Basic 383,991 376,072 373,531 369,533 370,377 Effect of dilutive securities 3,815 3,592 3,761 3,734 3,725 Diluted 387,806 379,664 377,292 373,267 374,102 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (a) Homebuilding income before income taxes includes losses on debt retirement of $8.6 million in the 1st Quarter; charges of $84.5 million to increase general liability insurance reserves in the 2nd Quarter; and costs associated with the relocation of our corporate headquarters of $8.7 million , offset by favorable adjustments of $15.2 million to decrease general liability insurance reserves in the 4th Quarter. (b) Financial Services expenses in the 1st Quarter includes a reduction in loan origination liabilities totaling $18.6 million . (c) Income tax expense in the 4th Quarter includes a benefit of $49.6 million related to the resolution of certain tax matters and the reversal of valuation allowance related to certain state deferred tax assets. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. |
Use of Estimates Policy | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications Policy | Certain prior period amounts have been reclassified to conform to the current year presentation. |
Subsequent Events Policy | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). |
Cash and Equivalents Policy | Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2015 and 2014 also included $27.5 million and $5.1 million , respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. |
Restricted Cash Policy | We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. |
Investments in Unconsolidated Entities Policy | We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 5 . |
Intangible Assets Policy | Intangible assets consist of tradenames acquired in connection with the 2009 acquisition of Centex Corporation ("Centex") and the 2001 acquisition of Del Webb Corporation ("Del Webb"). These intangible assets were valued at the acquisition date and are being amortized over 20 -year lives. The acquired cost and accumulated amortization of our intangible assets were $259.0 million and $148.8 million , respectively, at December 31, 2015 , and $259.0 million and $135.9 million , respectively, at December 31, 2014 . Amortization expense totaled $12.9 million , $13.0 million and $13.1 million in 2015 , 2014 and 2013 , respectively, and is expected to be $12.9 million in each of the next five years. The ultimate realization of these assets is dependent upon estimates of future cash flows and benefits that we expect to generate from their use. If we determine that the carrying values of intangible assets may not be recoverable based upon the existence of one or more indicators of impairment, we use a projected undiscounted cash flow method to determine if impairment exists. If the carrying values of the intangible assets exceed the expected undiscounted cash flows, then we measure impairment as the difference between the fair value of the asset and the recorded carrying value. |
Property and Equipment, Net and Depreciation Policy | Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: model home furniture - two years; office furniture and equipment - three to ten years; and leasehold improvements - life of the lease. Property and equipment are included in other assets |
Advertising Costs Policy | Advertising costs are expensed to selling, general, and administrative expense as incurred |
Employee Benefits Policy | We maintain defined contribution retirement plans that cover substantially all of our employees. |
Earnings Per Share Policy | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares and restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price of our common shares are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our earnings per share excluded 3.9 million , 6.6 million , and 9.6 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, in 2015 , 2014 , and 2013 , respectively. In accordance with ASC 260 "Earnings Per Share" ("ASC 260"), the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. |
Share-based Compensation Policy | We measure compensation cost for restricted shares and restricted share units at fair value on the grant date. Fair value is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted shares and restricted share units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 8 . |
Income Taxes Policy | The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740, “Income Taxes” (“ASC 740”), which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including changes in facts or circumstances, changes in law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 9 . |
Homebuilding Revenue Recognition Policy | Homebuilding revenue and related profit are generally recognized when title to and possession of the property are transferred to the buyer. In situations where the buyer’s financing is originated by Pulte Mortgage and the buyer has not made an adequate initial or continuing investment, the profit on such sale is deferred until the sale of the related mortgage loan to a third-party investor has been completed. If there is a loss on the sale of the property, the loss on such sale is recognized at the time of closing. The amount of such deferred profits were not material at either December 31, 2015 or December 31, 2014 . |
Sales Incentives Policy | When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. |
Inventory and Cost of Revenues Policy | Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and commissions and closing costs applicable to the home. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. We record valuation adjustments on land inventory when events and circumstances indicate that the related community may be impaired and when the cash flows estimated to be generated by the community are less than its carrying amount. Such indicators include gross margins or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community. Impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. We determine the fair value of a community's inventory using a combination of market comparable land transactions, where available, and discounted cash flow models. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community. Our evaluations for impairments are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. |
Land Held for Sale Policy | We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. |
Land Option Agreements Policy | We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 3 . If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2015 or December 31, 2014 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. |
Start-up Costs Policy | Costs and expenses associated with opening new communities are expensed to selling, general, and administrative expenses as incurred. |
Allowance for Warranties Policy | Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time revenue is recognized for each home closing. |
Self-insured Risks Policy | We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. |
Residential Mortgage Loans Available for Sale Policy | Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 12 for discussion of the risks retained related to mortgage loan originations. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. |
Mortgage Servicing Rights Policy | We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. We recognize the fair value of our rights to service a mortgage loan as revenue at the time of entering into an interest rate lock commitment with a borrower. Due to the short period of time the servicing rights are held, we do not amortize the servicing asset. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this liability at the time the sale is recorded. |
Loans Held for Investment Policy | We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are reviewed annually for impairment, or when recoverability becomes doubtful. Loans held for investment are included in other assets |
Interest Income on Mortgage Loans Policy | Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $6.9 million , $7.2 million , and $7.5 million in 2015 , 2014 , and 2013 , respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. |
Mortgage Servicing, Origination, and Commitment Fees Policy | Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance, or a contracted set fee in the case of certain sub-servicing arrangements, and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Loan origination costs related to residential mortgage loans available-for-sale are recognized as incurred in Financial Services expenses while the associated mortgage origination fees are recognized in Financial Services revenues as earned, generally upon loan closing. |
Title Services Policy | Revenues associated with our title operations are recognized within Financial Services revenues as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. |
Derivative Instruments and Hedging Activities Policy | We are exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend. A commitment to lend at a specific interest rate (an interest rate lock commitment) is a derivative financial instrument (interest rate is locked to the borrower). At December 31, 2015 and 2014 , we had aggregate interest rate lock commitments of $208.2 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 closed loans. 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 extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. We also use whole loan investor commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. At December 31, 2015 and 2014 , we had unexpired forward contracts of $525.0 million and $371.0 million , respectively, and whole loan investor commitments of $77.6 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 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 | 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 annual 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 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 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 the related debt on the balance sheet, which we do not expect to be material to our financial statements. |
Inventory, Interest Capitalization Policy | We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. |
Fair Value of Financial Instruments Policy | Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, are based on market prices for similar instruments. Forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. Fair values for whole loan investor commitments are based on market prices for similar instruments from the specific whole loan investor. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. The carrying amounts of cash and equivalents, Financial Services debt, 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. |
Financing Receivables Policy | We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 12 ), municipalities, and vendors. In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. |
Legal Reserves Policy | We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense, net consists of the following ($000’s omitted): 2015 2014 2013 Write-offs of deposits and pre-acquisition costs (Note 3) $ 5,021 $ 6,099 $ 3,122 Loss on debt retirements (Note 6) — 8,584 26,930 Lease exit and related costs 2,463 9,609 2,778 Amortization of intangible assets (Note 1) 12,900 13,033 13,100 Equity in (earnings) loss of unconsolidated entities ( Note 5 ) (7,355 ) (8,226 ) (993 ) Interest income (3,107 ) (4,632 ) (4,395 ) Interest expense 788 849 712 Miscellaneous, net (a) 6,653 1,420 34,823 $ 17,363 $ 26,736 $ 76,077 (a) Miscellaneous, net includes a charge of $20.0 million in 2015 resulting from the Applecross matter (see Note 12 ) and charges totaling $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12 ). |
Schedule of Earnings Per Share of Common Stock | The following table presents the earnings per common share (000's omitted, except per share data): December 31, 2015 December 31, 2014 December 31, 2013 Numerator: Net income $ 494,090 $ 474,338 $ 2,620,116 Less: earnings distributed to participating securities (755 ) (583 ) (407 ) Less: undistributed earnings allocated to participating securities (2,448 ) (2,668 ) (19,201 ) Numerator for basic earnings per share $ 490,887 $ 471,087 $ 2,600,508 Add back: undistributed earnings allocated to participating securities 2,448 2,668 19,201 Less: undistributed earnings reallocated to participating securities (2,429 ) (2,643 ) (18,845 ) Numerator for diluted earnings per share $ 490,906 $ 471,112 $ 2,600,864 Denominator: Basic shares outstanding 356,576 370,377 383,077 Effect of dilutive securities 3,217 3,725 3,789 Diluted shares outstanding 359,793 374,102 386,866 Earnings per share: Basic $ 1.38 $ 1.27 $ 6.79 Diluted $ 1.36 $ 1.26 $ 6.72 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2015 December 31, 2014 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 77,641 $ 1,064,506 $ 56,039 $ 891,506 Other land options 84,478 981,687 71,241 999,079 $ 162,119 $ 2,046,193 $ 127,280 $ 1,890,585 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2015 December 31, 2014 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 5,854 $ 280 $ 4,313 $ 65 Forward contracts 1,178 840 79 3,653 Whole loan commitments 358 345 31 619 $ 7,390 $ 1,465 $ 4,423 $ 4,337 |
Inventory And Land Held For S24
Inventory And Land Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory at December 31, 2015 and 2014 were ($000’s omitted): 2015 2014 Homes under construction $ 1,408,260 $ 1,084,137 Land under development 3,259,066 2,545,049 Raw land 782,732 762,914 $ 5,450,058 $ 4,392,100 |
Capitalized Interest Rollforward | Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2015 2014 2013 Interest in inventory, beginning of period $ 167,638 $ 230,922 $ 331,880 Interest capitalized 120,001 131,444 154,107 Interest expensed (138,141 ) (194,728 ) (255,065 ) Interest in inventory, end of period $ 149,498 $ 167,638 $ 230,922 |
Land-related Charges | We recorded the following land-related charges ($000's omitted): 2015 2014 2013 Land impairments $ 7,347 $ 3,911 $ 2,944 Net realizable value adjustments ("NRV") - land held for sale (901 ) 1,158 3,606 Write-offs of deposits and pre-acquisition costs 5,021 6,099 3,122 Total land-related charges $ 11,467 $ 11,168 $ 9,672 |
Land Held for Sale | Land held for sale at December 31, 2015 and 2014 was as follows ($000’s omitted): 2015 2014 Land held for sale, gross $ 86,913 $ 108,725 Net realizable value reserves (5,421 ) (7,535 ) Land held for sale, net $ 81,492 $ 101,190 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Operating Data By Reporting Segment | Operating Data by Segment ($000’s omitted) Years Ended December 31, 2015 2014 2013 Revenues: Northeast $ 682,112 $ 710,859 $ 819,709 Southeast 1,058,089 949,635 842,921 Florida 1,019,733 917,956 802,665 Midwest 1,020,691 872,241 791,537 Texas 845,772 859,165 835,473 West 1,214,814 1,386,869 1,446,339 5,841,211 5,696,725 5,538,644 Financial Services 140,753 125,638 140,951 Consolidated revenues $ 5,981,964 $ 5,822,363 $ 5,679,595 Income before income taxes: Northeast (a) $ 82,616 $ 103,865 $ 110,246 Southeast 172,330 156,513 121,055 Florida 196,525 190,441 139,673 Midwest 91,745 78,863 84,551 Texas 121,329 133,005 111,431 West 169,394 254,724 258,960 Other homebuilding (b) (76,622 ) (282,234 ) (346,803 ) 757,317 635,177 479,113 Financial Services (c) 58,706 54,581 48,709 Consolidated income before income taxes $ 816,023 $ 689,758 $ 527,822 (a) Northeast includes a charge of $20.0 million in 2015 resulting from the Applecross matter (see Note 12 ). (b) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments, in addition to: losses on debt retirements of $8.6 million and $26.9 million in 2014 and 2013 , respectively (see Note 6 ); adjustments to general liability insurance reserves relating to a reversal of $62.2 million in 2015 and a charge of $69.3 million in 2014 (see Note 12 ); costs associated with the relocation of our corporate headquarters totaling $4.4 million , $16.3 million , and $15.4 million in 2015, 2014, and 2013, respectively (see Note 2 ); and charges of $41.2 million in 2013 resulting from a contractual dispute related to a previously completed luxury community (see Note 12 ). (c) Financial Services included reductions in loan origination liabilities totaling $11.8 million and $18.6 million in 2015 and 2014, respectively. | ||
Land-Related Charges By Reporting Segment | Operating Data by Segment ($000's omitted) 2015 2014 2013 Land-related charges*: Northeast $ 3,301 $ 2,824 $ 557 Southeast 3,022 1,826 998 Florida 4,555 487 1,076 Midwest 2,319 2,347 1,883 Texas 295 321 191 West (2,615 ) 1,696 2,023 Other homebuilding 590 1,667 2,944 $ 11,467 $ 11,168 $ 9,672 * Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 1 for additional discussion of these charges. | ||
Depreciation and Amortization Expense by Reporting Segment | Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Depreciation and amortization: Northeast $ 1,682 $ 1,852 $ 1,987 Southeast 3,492 2,666 1,647 Florida 3,536 2,150 1,334 Midwest 5,019 3,153 1,644 Texas 2,928 1,698 1,784 West 5,995 5,263 3,590 Other homebuilding (a) 20,254 19,548 16,248 42,906 36,330 28,234 Financial Services 3,316 3,534 3,353 $ 46,222 $ 39,864 $ 31,587 (a) Other homebuilding includes amortization of intangible assets | ||
Equity in (Earnings) Loss of Unconsolidated Entities by Reporting Segment | Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Equity in (earnings) loss of unconsolidated entities: Northeast $ 2 $ (4,733 ) $ (58 ) Southeast — — — Florida 2 (7 ) (4 ) Midwest (337 ) (481 ) 151 Texas — — — West (5,107 ) (2,422 ) (1,437 ) Other homebuilding (1,915 ) (583 ) 355 (7,355 ) (8,226 ) (993 ) Financial Services — (182 ) (137 ) $ (7,355 ) $ (8,408 ) $ (1,130 ) | (8,408) | (1,130) |
Total Assets And Inventory By Reporting Segment | Operating Data by Segment ($000's omitted) December 31, 2015 Homes Under Land Under Raw Land Total Total Northeast $ 163,173 $ 292,631 $ 121,522 $ 577,326 $ 688,610 Southeast 196,456 367,577 139,246 703,279 765,933 Florida 227,910 574,092 97,185 899,187 1,013,543 Midwest 197,738 414,386 68,918 681,042 734,834 Texas 191,424 317,702 107,737 616,863 691,342 West 413,208 1,094,112 222,920 1,730,240 1,924,958 Other homebuilding (a) 18,351 198,566 25,204 242,121 2,638,951 1,408,260 3,259,066 782,732 5,450,058 8,458,171 Financial Services — — — — 508,989 $ 1,408,260 $ 3,259,066 $ 782,732 $ 5,450,058 $ 8,967,160 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 Midwest 176,966 326,549 70,266 573,781 624,815 Texas 134,873 250,102 91,765 476,740 528,392 West 270,060 850,629 230,199 1,350,888 1,485,685 Other homebuilding (a) 19,015 196,762 34,401 250,178 3,527,731 1,084,137 2,545,049 762,914 4,392,100 8,148,445 Financial Services — — — — 420,965 $ 1,084,137 $ 2,545,049 $ 762,914 $ 4,392,100 $ 8,569,410 December 31, 2013 Homes Under Land Under Raw Land Total Total Northeast $ 212,611 $ 325,241 $ 106,681 $ 644,533 $ 731,259 Southeast 139,484 274,981 146,617 561,082 599,271 Florida 140,366 295,631 104,766 540,763 618,449 Midwest 109,251 184,172 23,092 316,515 346,851 Texas 130,398 223,979 57,480 411,857 466,198 West 277,636 678,231 257,512 1,213,379 1,309,850 Other homebuilding (a) 32,401 207,152 50,879 290,432 4,334,591 1,042,147 2,189,387 747,027 3,978,561 8,406,469 Financial Services — — — — 327,674 $ 1,042,147 $ 2,189,387 $ 747,027 $ 3,978,561 $ 8,734,143 (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 Unconsolidated26
Investments In Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Joint Ventures | A summary of our joint ventures is presented below ($000’s omitted): December 31, 2015 2014 Investments in joint ventures with debt non-recourse to PulteGroup $ 23,236 $ 26,488 Investments in other active joint ventures 18,031 13,880 Total investments in unconsolidated entities $ 41,267 $ 40,368 Total joint venture debt $ 16,369 $ 25,849 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 226 $ 283 Joint venture debt non-recourse to PulteGroup 6,744 11,341 PulteGroup's total proportionate share of joint venture debt $ 6,970 $ 11,624 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our senior notes are summarized as follows ($000’s omitted): December 31, 2015 2014 5.25% unsecured senior notes due June 2015 (a) $ — $ 236,452 6.50% unsecured senior notes due May 2016 (a) 464,436 462,009 7.625% unsecured senior notes due October 2017 (b) 122,841 122,752 7.875% unsecured senior notes due June 2032 (a) 299,283 299,239 6.375% unsecured senior notes due May 2033 (a) 398,714 398,640 6.00% unsecured senior notes due February 2035 (a) 299,495 299,469 Total senior notes – carrying value (c) $ 1,584,769 $ 1,818,561 Estimated fair value $ 1,643,651 $ 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. |
Schedule of Financial Services available credit lines | The following is aggregate borrowing information for our mortgage operations ($000’s omitted): December 31, 2015 2014 Available credit lines $ 310,000 $ 150,000 Unused credit lines $ 42,123 $ 9,759 Weighted-average interest rate 2.65 % 2.70 % |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock Compensation Expense by Plan Type | Our stock compensation expense for the three years ended December 31, 2015 , is presented below ($000's omitted): 2015 2014 2013 Stock options $ 37 $ 121 $ 1,056 Restricted shares (including RSUs and performance shares) 16,852 13,690 13,418 Long-term incentive plans 7,863 15,481 16,006 $ 24,752 $ 29,292 $ 30,480 |
Stock Option Activity Rollforward | A summary of stock option activity for the three years ended December 31, 2015 , is presented below (000’s omitted except per share data): 2015 2014 2013 Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Outstanding, beginning of year 9,370 $ 23 12,887 $ 23 17,148 $ 22 Granted — — — — — — Exercised (904 ) 12 (1,422 ) 11 (1,432 ) 14 Forfeited (2,426 ) 37 (2,095 ) 29 (2,829 ) 25 Outstanding, end of year 6,040 $ 19 9,370 $ 23 12,887 $ 23 Options exercisable at year end 6,040 $ 19 9,265 $ 23 12,402 $ 23 Weighted-average per share fair value of options granted during the year $ — $ — $ — |
Stock Options Weighted-average Remaining Contractual Lives | The following table summarizes information about the weighted-average remaining contractual lives of stock options outstanding and exercisable at December 31, 2015 : Options Outstanding Options Exercisable Number Outstanding (000's omitted) Weighted- Average Remaining Contract Life (in years) Weighted- Average Per Share Exercise Price Number Exercisable (000's omitted) Weighted- Average Per Share Exercise Price $0.01 to $10.00 326 4.8 $ 8 326 $ 8 $10.01 to $20.00 3,697 3.5 12 3,697 12 $20.01 to $30.00 152 1.0 28 152 28 $30.01 to $40.00 1,865 1.0 34 1,865 34 6,040 2.7 $ 19 6,040 $ 19 |
Restricted Stock, RSUs, and Performance Shares Activity Rollforward | A summary of restricted share activity, including RSUs and performance shares, for the three years ended December 31, 2015 , is presented below (000’s omitted, except per share data): 2015 2014 2013 Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Outstanding, beginning of year 2,890 $ 15 3,211 $ 11 3,822 $ 9 Granted 932 $ 22 974 $ 19 806 $ 21 Distributed (1,090 ) $ 10 (1,019 ) $ 10 (1,391 ) $ 11 Forfeited (156 ) $ 19 (276 ) $ 15 (26 ) $ 15 Outstanding, end of year 2,576 $ 18 2,890 $ 15 3,211 $ 11 Vested, end of year 89 $ 14 75 $ 13 60 $ 12 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2015 2014 2013 Current expense (benefit) Federal $ 8,760 $ 5,619 $ 5,725 State and other 1,474 (13,968 ) (1,596 ) $ 10,234 $ (8,349 ) $ 4,129 Deferred expense (benefit) Federal $ 277,895 $ 232,969 $ (1,833,580 ) State and other 33,804 (9,200 ) (262,843 ) $ 311,699 $ 223,769 $ (2,096,423 ) Income tax expense (benefit) $ 321,933 $ 215,420 $ (2,092,294 ) |
Effective Income Tax Rate Reconciliation | The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2015 2014 2013 Income taxes at federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax 2.8 3.0 4.0 Deferred tax asset valuation allowance 0.4 (6.6 ) (438.0 ) Tax contingencies 0.1 (1.4 ) 0.3 Other 1.2 1.2 2.3 Effective rate 39.5 % 31.2 % (396.4 )% |
Deferred Tax Assets and Liabilities | Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2015 2014 Deferred tax assets: Accrued insurance $ 237,836 $ 254,031 Non-deductible reserves and other 155,488 191,097 Inventory valuation reserves 476,673 599,763 Net operating loss ("NOL") carryforwards: Federal 367,302 515,568 State 274,686 257,738 Alternative minimum tax credit carryforwards 44,161 34,812 Energy and other credit carryforwards 28,669 27,858 1,584,815 1,880,867 Deferred tax liabilities: Capitalized items, including real estate basis differences, deducted for tax, net (39,220 ) (31,584 ) Trademarks and tradenames (41,664 ) (46,362 ) (80,884 ) (77,946 ) Valuation allowance (109,052 ) (82,253 ) Net deferred tax asset $ 1,394,879 $ 1,720,668 |
Summary of Income Tax Contingencies | A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2015 2014 2013 Unrecognized tax benefits, beginning of period $ 32,911 $ 173,310 $ 170,425 Increases related to tax positions taken during a prior period 5,763 — 12,877 Decreases related to tax positions taken during a prior period — (133,883 ) (7,502 ) Increases related to tax positions taken during the current period 318 237 381 Decreases related to settlements with taxing authorities — (6,753 ) (1,434 ) Reductions as a result of a lapse of the applicable statute of limitations — — (1,437 ) Unrecognized tax benefits, end of period $ 38,992 $ 32,911 $ 173,310 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 442,715 $ 339,531 Interest rate lock commitments Level 2 5,574 4,248 Forward contracts Level 2 338 (3,574 ) Whole loan commitments Level 2 13 (588 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 11,052 $ 13,925 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 775,435 $ 1,309,220 Financial Services debt Level 2 267,877 140,241 Term loan Level 2 500,000 — Senior notes Level 2 1,643,651 1,952,774 |
Other Assets and Accrued and 31
Other Assets and Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Schedule of Other Assets | Other assets are presented below ($000’s omitted): December 31, 2015 2014 Accounts and notes receivable: Insurance receivables (Note 12) $ 130,170 $ 60,598 Notes receivable 28,288 30,699 Other receivables 83,177 63,867 241,635 155,164 Prepaid expenses 109,113 72,585 Deposits and pre-acquisition costs (Note 1) 162,119 127,280 Property and equipment, net (Note 1) 86,312 75,219 Income taxes receivable (Note 9) 25,080 21,330 Other 46,840 91,640 $ 671,099 $ 543,218 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities are presented below ($000’s omitted): December 31, 2015 2014 Self-insurance liabilities (Note 12) $ 692,053 $ 710,245 Loan origination liabilities (Note 12) 46,381 58,222 Compensation-related 124,798 142,586 Warranty (Note 12) 61,179 65,389 Community development district obligations (Note 12) 11,964 17,122 Accrued interest 20,541 20,446 Limited recourse notes payable 35,336 22,255 Dividends payable 31,568 29,682 Other 260,453 277,827 $ 1,284,273 $ 1,343,774 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2015 , are as follows ($000’s omitted): Years Ending December 31, 2016 $ 28,561 2017 21,353 2018 18,320 2019 15,981 2020 8,940 Thereafter 34,974 Total minimum lease payments (a) $ 128,129 (a) Minimum payments have not been reduced by minimum sublease rentals of $2.5 million due in the future under non-cancelable subleases. |
Summary of Changes in Loan Origination Liability | Changes in these liabilities were as follows ($000's omitted): 2015 2014 2013 Liabilities, beginning of period $ 58,222 $ 124,956 $ 164,280 Reserves provided (released), net (11,433 ) (18,604 ) — Payments (408 ) (48,130 ) (39,324 ) Liabilities, end of period $ 46,381 $ 58,222 $ 124,956 |
Summary of Changes in Warranty Liability | Changes to warranty liabilities were as follows ($000’s omitted): 2015 2014 2013 Warranty liabilities, beginning of period $ 65,389 $ 63,992 $ 64,098 Reserves provided 52,684 51,348 49,399 Payments (60,968 ) (47,968 ) (44,925 ) Other adjustments 4,074 (1,983 ) (4,580 ) Warranty liabilities, end of period $ 61,179 $ 65,389 $ 63,992 |
Summary of Changes in Self-insurance Liability | Changes in these liabilities were as follows ($000's omitted): 2015 2014 2013 Balance, beginning of period $ 710,245 $ 668,100 $ 721,284 Reserves provided, net 16,085 141,790 64,737 Payments (34,277 ) (99,645 ) (117,921 ) Balance, end of period $ 692,053 $ 710,245 $ 668,100 |
Supplemental Guarantor Inform33
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 638,602 $ 115,559 $ — $ 754,161 Restricted cash — 20,274 1,000 — 21,274 House and land inventory — 5,450,058 — — 5,450,058 Land held for sale — 80,458 1,034 — 81,492 Residential mortgage loans available- for-sale — — 442,715 — 442,715 Investments in unconsolidated entities 93 36,499 4,675 — 41,267 Other assets 49,255 531,120 90,724 671,099 Intangible assets — 110,215 — — 110,215 Deferred tax assets, net 1,392,251 11 2,617 — 1,394,879 Investments in subsidiaries and intercompany accounts, net 5,529,606 465,644 6,293,018 (12,288,268 ) — $ 6,971,205 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,967,160 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 70,061 $ 1,558,885 $ 169,193 $ — $ 1,798,139 Income tax liabilities 57,050 — — — 57,050 Financial Services debt — — 267,877 — 267,877 Term loan 500,000 — — — 500,000 Senior notes 1,584,769 — — — 1,584,769 Total liabilities 2,211,880 1,558,885 437,070 — 4,207,835 Total shareholders’ equity 4,759,325 5,773,996 6,514,272 (12,288,268 ) 4,759,325 $ 6,971,205 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,967,160 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 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 34,214 451,331 57,673 — 543,218 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 (LOSS) For the year ended December 31, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,792,675 $ — $ — $ 5,792,675 Land sale revenues — 48,536 — — 48,536 — 5,841,211 — — 5,841,211 Financial Services — 1 140,752 — 140,753 — 5,841,212 140,752 — 5,981,964 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,440,893 — — 4,440,893 Land sale cost of revenues — 35,858 — — 35,858 — 4,476,751 — — 4,476,751 Financial Services expenses 313 (276 ) 82,010 — 82,047 Selling, general, and administrative expenses 3 585,870 3,907 — 589,780 Other expense, net 760 17,424 (821 ) — 17,363 Intercompany interest 2,110 7,922 (10,032 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (3,186 ) 753,521 65,688 — 816,023 Income tax expense (benefit) (1,210 ) 297,485 25,658 — 321,933 Income (loss) before equity in income (loss) of subsidiaries (1,976 ) 456,036 40,030 — 494,090 Equity in income (loss) of subsidiaries 496,066 40,484 411,699 (948,249 ) — Net income (loss) 494,090 496,520 451,729 (948,249 ) 494,090 Other comprehensive income (loss) 81 — — — 81 Comprehensive income (loss) $ 494,171 $ 496,520 $ 451,729 $ (948,249 ) $ 494,171 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,662,171 $ — $ — $ 5,662,171 Land sale revenues — 34,554 — — 34,554 — 5,696,725 — — 5,696,725 Financial Services — 889 124,749 — 125,638 — 5,697,614 124,749 — 5,822,363 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,343,249 — — 4,343,249 Land sale cost of revenues — 23,748 — — 23,748 — 4,366,997 — — 4,366,997 Financial Services expenses 784 (130 ) 70,403 — 71,057 Selling, general, and administrative expenses — 661,308 6,507 — 667,815 Other expense, net 9,026 16,847 863 — 26,736 Intercompany interest 9,800 (90 ) (9,710 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (19,610 ) 652,682 56,686 — 689,758 Income tax expense (benefit) (7,473 ) 201,332 21,561 — 215,420 Income (loss) before equity in income (loss) of subsidiaries (12,137 ) 451,350 35,125 — 474,338 Equity in income (loss) of subsidiaries 486,475 38,534 403,505 (928,514 ) — Net income (loss) 474,338 489,884 438,630 (928,514 ) 474,338 Other comprehensive income (loss) 105 — — — 105 Comprehensive income (loss) $ 474,443 $ 489,884 $ 438,630 $ (928,514 ) $ 474,443 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2013 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor Revenues: Homebuilding Home sale revenues $ — $ 5,424,309 $ — $ — $ 5,424,309 Land sale revenues — 114,335 — — 114,335 — 5,538,644 — — 5,538,644 Financial Services — 2,353 138,598 — 140,951 — 5,540,997 138,598 — 5,679,595 Homebuilding Cost of Revenues: Home sale cost of revenues — 4,310,528 — — 4,310,528 Land sale cost of revenues — 104,426 — — 104,426 — 4,414,954 — — 4,414,954 Financial Services expenses 832 970 90,440 — 92,242 Selling, general, and administrative expenses — 573,904 (5,404 ) — 568,500 Other expense (income), net 28,694 43,944 3,439 — 76,077 Intercompany interest 17,518 (8,260 ) (9,258 ) — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (47,044 ) 515,485 59,381 — 527,822 Income tax expense (benefit) (2,113,827 ) (799 ) 22,332 — (2,092,294 ) Income (loss) before equity in income (loss) of subsidiaries 2,066,783 516,284 37,049 — 2,620,116 Equity in income (loss) of subsidiaries 553,333 35,086 485,400 (1,073,819 ) — Net income (loss) 2,620,116 551,370 522,449 (1,073,819 ) 2,620,116 Other comprehensive income (loss) 197 — — — 197 Comprehensive income (loss) $ 2,620,313 $ 551,370 $ 522,449 $ (1,073,819 ) $ 2,620,313 |
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 184,033 $ (449,701 ) $ (82,461 ) $ — $ (348,129 ) Cash flows from investing activities: Net change in loans held for investment — — 8,664 — 8,664 Change in restricted cash related to letters of credit 3,710 — — — 3,710 Capital expenditures — (41,857 ) (3,583 ) — (45,440 ) Other investing activities, net — 1,937 275 — 2,212 Net cash provided by (used in) investing activities 3,710 (39,920 ) 5,356 — (30,854 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 127,636 — 127,636 Proceeds from debt issuance 500,000 — — 500,000 Repayments of debt (237,995 ) (1,198 ) — — (239,193 ) Borrowings under revolving credit facility 125,000 — — — 125,000 Repayments under revolving credit facility (125,000 ) — — — (125,000 ) Stock option exercises 10,535 — — — 10,535 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (115,958 ) — — — (115,958 ) Intercompany activities, net 90,959 (27,886 ) (63,073 ) — — Net cash provided by (used in) financing activities (195,197 ) (29,084 ) 64,563 — (159,718 ) Net increase (decrease) in cash and equivalents (7,454 ) (518,705 ) (12,542 ) — (538,701 ) Cash and equivalents at beginning of year 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of year $ — $ 638,602 $ 115,559 $ — $ 754,161 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2014 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 206,485 $ 175,415 $ (72,651 ) $ — $ 309,249 Cash flows from investing activities: Net change in loans held for investment — — 335 — 335 Change in restricted cash related to letters of credit 54,989 — — — 54,989 Capital expenditures — (44,956 ) (3,834 ) — (48,790 ) Cash used for business acquisitions — (82,419 ) — — (82,419 ) Other investing activities, net — 8,274 (13 ) — 8,261 Net cash provided by (used in) investing activities 54,989 (119,101 ) (3,512 ) — (67,624 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 34,577 — 34,577 Repayments of debt (249,765 ) (866 ) — — (250,631 ) Stock option exercises 15,627 — — — 15,627 Share repurchases (253,019 ) — — — (253,019 ) Dividends paid (75,646 ) — — — (75,646 ) Intercompany activities, net 46,419 (87,140 ) 40,721 — — Net cash provided by (used in) financing activities (516,384 ) (88,006 ) 75,298 — (529,092 ) Net increase (decrease) in cash and equivalents (254,910 ) (31,692 ) (865 ) — (287,467 ) Cash and equivalents at beginning of year 262,364 1,188,999 128,966 — 1,580,329 Cash and equivalents at end of year $ 7,454 $ 1,157,307 $ 128,101 $ — $ 1,292,862 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2013 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ (41 ) $ 865,267 $ 15,910 $ — $ 881,136 Cash flows from investing activities: Net change in loans held for investment — — (12,265 ) — (12,265 ) Change in restricted cash related to letters of credit (4,152 ) — — — (4,152 ) Capital expenditures — (26,472 ) (2,427 ) — (28,899 ) Other investing activities, net — (661 ) — — (661 ) Net cash provided by (used in) investing activities (4,152 ) (27,133 ) (14,692 ) — (45,977 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (33,131 ) — (33,131 ) Repayments of debt (485,048 ) 5,221 — (479,827 ) Stock option exercises 19,411 — — — 19,411 Share repurchases (127,661 ) — — — (127,661 ) Dividends paid (38,382 ) — — — (38,382 ) Intercompany activities, net 752,069 (718,299 ) (33,770 ) — — Net cash provided by (used in) financing activities 120,389 (713,078 ) (66,901 ) — (659,590 ) Net increase (decrease) in cash and equivalents 116,196 125,056 (65,683 ) — 175,569 Cash and equivalents at beginning of year 146,168 1,063,943 194,649 — 1,404,760 Cash and equivalents at end of year $ 262,364 $ 1,188,999 $ 128,966 $ — $ 1,580,329 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2015 Homebuilding: Revenues $ 1,105,700 $ 1,249,537 $ 1,467,780 $ 2,018,194 $ 5,841,211 Cost of revenues 854,523 958,592 1,122,175 1,541,461 4,476,751 Income before income taxes (b) 90,748 157,640 164,911 344,019 757,317 Financial Services: Revenues $ 27,598 $ 30,754 $ 38,967 $ 43,434 $ 140,753 Income before income taxes (c) 5,057 9,987 14,365 29,297 58,706 Consolidated results: Revenues $ 1,133,298 $ 1,280,291 $ 1,506,747 $ 2,061,628 $ 5,981,964 Income before income taxes 95,805 167,627 179,276 373,315 816,023 Income tax expense 40,834 64,303 71,507 145,288 321,933 Net income $ 54,971 $ 103,324 $ 107,769 $ 228,027 $ 494,090 Net income per share: Basic $ 0.15 $ 0.28 $ 0.31 $ 0.65 $ 1.38 Diluted $ 0.15 $ 0.28 $ 0.30 $ 0.64 $ 1.36 Number of shares used in calculation: Basic 366,748 361,009 350,147 348,699 356,576 Effect of dilutive securities 3,362 3,232 3,225 3,047 3,217 Diluted 370,110 364,241 353,372 351,746 359,793 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Homebuilding income before income taxes includes reserve reversals resulting from a legal settlement (see Note 12 )of $26.9 million and $5.7 million in the 2nd and 3rd Quarters, respectively; a charge of $20.0 million in the 3rd Quarter related to the Applecross matter (see Note 12 ); and $29.6 million relating to decreased general liability insurance reserves in the 4th Quarter. (c) Financial Services expenses in the 4th Quarter includes a reduction in loan origination liabilities totaling $11.8 million .. UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2014 Homebuilding: Revenues $ 1,093,999 $ 1,254,989 $ 1,561,273 $ 1,786,464 $ 5,696,725 Cost of revenues 833,614 959,524 1,198,908 1,374,951 4,366,997 Income before income taxes (b) 108,435 58,573 214,051 254,118 635,177 Financial Services: Revenues $ 24,895 $ 31,198 $ 33,452 $ 36,093 $ 125,638 Income before income taxes (c) 21,594 9,108 10,877 13,002 54,581 Consolidated results: Revenues $ 1,118,894 $ 1,286,187 $ 1,594,725 $ 1,822,557 $ 5,822,363 Income before income taxes 130,029 67,681 224,928 267,120 689,758 Income tax expense (benefit) (d) 55,210 25,801 84,383 50,025 215,420 Net income $ 74,819 $ 41,880 $ 140,545 $ 217,095 $ 474,338 Net income per share: Basic $ 0.19 $ 0.11 $ 0.37 $ 0.58 $ 1.27 Diluted $ 0.19 $ 0.11 $ 0.37 $ 0.58 $ 1.26 Number of shares used in calculation: Basic 383,991 376,072 373,531 369,533 370,377 Effect of dilutive securities 3,815 3,592 3,761 3,734 3,725 Diluted 387,806 379,664 377,292 373,267 374,102 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (a) Homebuilding income before income taxes includes losses on debt retirement of $8.6 million in the 1st Quarter; charges of $84.5 million to increase general liability insurance reserves in the 2nd Quarter; and costs associated with the relocation of our corporate headquarters of $8.7 million , offset by favorable adjustments of $15.2 million to decrease general liability insurance reserves in the 4th Quarter. (b) Financial Services expenses in the 1st Quarter includes a reduction in loan origination liabilities totaling $18.6 million . (c) Income tax expense in the 4th Quarter includes a benefit of $49.6 million related to the resolution of certain tax matters and the reversal of valuation allowance related to certain state deferred tax assets. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Narrative) (Details) shares in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2016USD ($) | Aug. 31, 2014USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Business Combination, Consideration Transferred | $ 82,400,000 | ||||
Unfunded settlements | $ 27,500,000 | $ 5,100,000 | |||
Intangible asset useful life | 20 years | ||||
Intangible assets, acquired cost (gross) | $ 259,000,000 | 259,000,000 | |||
Intangible assets, accumulated amortization | 148,800,000 | 135,900,000 | |||
Intangible assets amortization expense | 12,900,000 | 13,033,000 | $ 13,100,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 12,900,000 | ||||
Future Amortization Expense, Year Two | 12,900,000 | ||||
Future Amortization Expense, Year Three | 12,900,000 | ||||
Future Amortization Expense, Year Four | 12,900,000 | ||||
Future Amortization Expense, Year Five | 12,900,000 | ||||
Intangible asset impairment expense | 0 | 0 | 0 | ||
Property and equipment, net | 86,312,000 | 75,219,000 | |||
Property and equipment, accumulated depreciation | 185,800,000 | 192,200,000 | |||
Depreciation Expense | 33,300,000 | 26,800,000 | 18,500,000 | ||
Advertising Expense | 45,300,000 | 41,800,000 | 42,400,000 | ||
Employee benefit plan company contributions | 12,600,000 | $ 12,100,000 | 11,000,000 | ||
Charges related to contractual dispute | $ 20,000,000 | $ 41,200,000 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 3.9 | 6.6 | 9.6 | ||
Number of VIEs requiring consolidation | 0 | 0 | |||
Residential mortgage loans available-for-sale | $ 442,715,000 | $ 339,531,000 | |||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 429,600,000 | 327,400,000 | |||
Net gain (loss) from change in fair value | (300,000) | 1,700,000 | |||
Net gains from the sale of mortgages | 80,800,000 | 67,200,000 | $ 80,300,000 | ||
Loans held for investment, net | $ 7,600,000 | 12,500,000 | |||
Days past contractual term once loans no longer accrue interest income | 90 days | ||||
Variability in future cash flows of derivative instruments in days | 75 days | ||||
Furniture and Fixtures [Member] | |||||
Property and equipment, useful life | 2 years | ||||
Minimum [Member] | |||||
Period of Reimbursement of Payments on Loan Prepay in Days | 90 days | ||||
Minimum [Member] | Equipment [Member] | |||||
Property and equipment, useful life | 3 years | ||||
Maximum [Member] | |||||
Period of Reimbursement of Payments on Loan Prepay in Days | 120 days | ||||
Maximum [Member] | Equipment [Member] | |||||
Property and equipment, useful life | 10 years | ||||
Financial Services [Member] | |||||
Interest income on mortgage loans | $ 6,900,000 | 7,200,000 | $ 7,500,000 | ||
Interest Rate Lock Commitments [Member] | |||||
Derivative, notional amount | 208,200,000 | 146,100,000 | |||
Forward Contracts [Member] | |||||
Derivative, notional amount | 525,000,000 | 371,000,000 | |||
Whole Loan Commitments [Member] | |||||
Derivative, notional amount | $ 77,600,000 | $ 63,500,000 | |||
Subsequent Event [Member] | |||||
Business Combination, Consideration Transferred | $ 430,000,000 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Other Expense (Income), Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other expense (income), net [Line Items] | |||
Write-off of deposits and pre-acquisition costs | $ 5,021 | $ 6,099 | $ 3,122 |
Loss on debt retirements | 0 | 8,584 | 26,930 |
Amortization of intangible assets | 12,900 | 13,033 | 13,100 |
Equity in (earnings) loss of unconsolidated entities | (7,355) | (8,226) | (993) |
Interest income | (3,107) | (4,632) | (4,395) |
Interest expense | 788 | 849 | 712 |
Miscellaneous, net | 6,653 | 1,420 | 34,823 |
Other expense, net | 17,363 | 26,736 | 76,077 |
Charges related to contractual dispute | 20,000 | 41,200 | |
Homebuilding [Member] | |||
Other expense (income), net [Line Items] | |||
Lease exit and related costs | 2,463 | 9,609 | 2,778 |
Equity in (earnings) loss of unconsolidated entities | $ (7,355) | $ (8,226) | $ (993) |
Summary of Significant Accoun37
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 | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net income | $ 228,027 | $ 107,769 | $ 103,324 | $ 54,971 | $ 217,095 | $ 140,545 | $ 41,880 | $ 74,819 | $ 494,090 | $ 474,338 | $ 2,620,116 |
Less: earnings distributed to participating securities | (755) | (583) | (407) | ||||||||
Less: undistributed earnings allocated to participating securities | (2,448) | (2,668) | (19,201) | ||||||||
Numerator for basic earnings per share | 490,887 | 471,087 | 2,600,508 | ||||||||
Add back: undistributed earnings allocated to participating securities | 2,448 | 2,668 | 19,201 | ||||||||
Less: undistributed earnings reallocated to participating securities | (2,429) | (2,643) | (18,845) | ||||||||
Numerator for diluted earnings per share | $ 490,906 | $ 471,112 | $ 2,600,864 | ||||||||
Denominator: | |||||||||||
Basic shares outstanding | 348,699 | 350,147 | 361,009 | 366,748 | 369,533 | 373,531 | 376,072 | 383,991 | 356,576 | 370,377 | 383,077 |
Effect of dilutive securities (shares) | 3,047 | 3,225 | 3,232 | 3,362 | 3,734 | 3,761 | 3,592 | 3,815 | 3,217 | 3,725 | 3,789 |
Diluted shares outstanding (shares) | 351,746 | 353,372 | 364,241 | 370,110 | 373,267 | 377,292 | 379,664 | 387,806 | 359,793 | 374,102 | 386,866 |
Earnings per share: | |||||||||||
Basic (usd per share) | $ 0.65 | $ 0.31 | $ 0.28 | $ 0.15 | $ 0.58 | $ 0.37 | $ 0.11 | $ 0.19 | $ 1.38 | $ 1.27 | $ 6.79 |
Diluted (usd per share) | $ 0.64 | $ 0.30 | $ 0.28 | $ 0.15 | $ 0.58 | $ 0.37 | $ 0.11 | $ 0.19 | $ 1.36 | $ 1.26 | $ 6.72 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 162,119 | $ 127,280 |
Remaining Purchase Price | 2,046,193 | 1,890,585 |
Consolidated and Unconsolidated VIEs [Member] | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 77,641 | 56,039 |
Remaining Purchase Price | 1,064,506 | 891,506 |
Other Land Option Agreements Member | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 84,478 | 71,241 |
Remaining Purchase Price | $ 981,687 | $ 999,079 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 7,390 | $ 4,423 |
Other Liabilities | 1,465 | 4,337 |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 5,854 | 4,313 |
Other Liabilities | 280 | 65 |
Forward Contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 1,178 | 79 |
Other Liabilities | 840 | 3,653 |
Whole Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 358 | 31 |
Other Liabilities | $ 345 | $ 619 |
Corporate Office Relocation (Na
Corporate Office Relocation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring and relocation costs | $ 10 | ||
Home Office Relocation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance, retention, relocation, and related costs | 4.4 | $ 16.3 | $ 15.4 |
Home Office Relocation [Member] | Employee severance, retention, and relocation costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance, retention, relocation, and related costs | 2 | 7.6 | 15 |
Home Office Relocation [Member] | Asset impairments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance, retention, relocation, and related costs | $ 2.3 | $ 8.7 | $ 0.4 |
Inventory And Land Held For S41
Inventory And Land Held For Sale (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | |||
Homes under construction | $ 1,408,260 | $ 1,084,137 | $ 1,042,147 |
Land under development | 3,259,066 | 2,545,049 | 2,189,387 |
Raw land | 782,732 | 762,914 | 747,027 |
House and land inventory | $ 5,450,058 | $ 4,392,100 | $ 3,978,561 |
Inventory And Land Held For S42
Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest in inventory, beginning of period | $ 167,638 | $ 230,922 | $ 331,880 |
Interest capitalized | 120,001 | 131,444 | 154,107 |
Interest expensed | (138,141) | (194,728) | (255,065) |
Interest in inventory, end of period | $ 149,498 | $ 167,638 | $ 230,922 |
Inventory And Land Held For S43
Inventory And Land Held For Sale Inventory and Land Held for Sale (Land-related Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | |||
Land impairments | $ 7,347 | $ 3,911 | $ 2,944 |
Net realizable value adjustments (NRV) - land held for sale | (901) | 1,158 | 3,606 |
Write-off of deposits and pre-acquisition costs | 5,021 | 6,099 | 3,122 |
Total land-related charges | $ 11,467 | $ 11,168 | $ 9,672 |
Inventory And Land Held For S44
Inventory And Land Held For Sale (Land Held For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Land held for sale, gross | $ 86,913 | $ 108,725 |
Net realizable value reserves | (5,421) | (7,535) |
Land held for sale, net | $ 81,492 | $ 101,190 |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information | ||||||
Home sale revenues | $ 5,792,675 | $ 5,662,171 | $ 5,424,309 | |||
Number of reportable segments | segment | 6 | |||||
Charges related to contractual dispute | $ 20,000 | 41,200 | ||||
Loan origination release | $ 11,800 | 11,800 | ||||
Loss on debt retirements | 0 | 8,584 | 26,930 | |||
Adjustment to self insurance reserves | $ (29,600) | $ (15,200) | $ 84,500 | (62,200) | 69,300 | |
Reserves provided | (11,433) | (18,604) | 0 | |||
Detached single-family homes [Member] | ||||||
Segment Reporting Information | ||||||
Home sale revenues | 5,000,000 | 4,800,000 | 4,500,000 | |||
Attached homes [Member] | ||||||
Segment Reporting Information | ||||||
Home sale revenues | 841,500 | 885,800 | 939,000 | |||
Home Office Relocation [Member] | ||||||
Segment Reporting Information | ||||||
Costs associated with the relocation of corporate headquarters | $ 4,400 | $ 16,300 | $ 15,400 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Homebuilding | $ 2,018,194 | $ 1,467,780 | $ 1,249,537 | $ 1,105,700 | $ 1,786,464 | $ 1,561,273 | $ 1,254,989 | $ 1,093,999 | $ 5,841,211 | $ 5,696,725 | $ 5,538,644 |
Financial Services | 43,434 | 38,967 | 30,754 | 27,598 | 36,093 | 33,452 | 31,198 | 24,895 | 140,753 | 125,638 | 140,951 |
Consolidated revenues | 2,061,628 | 1,506,747 | 1,280,291 | 1,133,298 | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 5,981,964 | 5,822,363 | 5,679,595 |
Income (loss) before income taxes: | |||||||||||
Homebuilding | 344,019 | 164,911 | 157,640 | 90,748 | 254,118 | 214,051 | 58,573 | 108,435 | 757,317 | 635,177 | 479,113 |
Consolidated income (loss) before income taxes | $ 373,315 | $ 179,276 | $ 167,627 | $ 95,805 | $ 267,120 | $ 224,928 | $ 67,681 | $ 130,029 | 816,023 | 689,758 | 527,822 |
Northeast [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 682,112 | 710,859 | 819,709 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 82,616 | 103,865 | 110,246 | ||||||||
Southeast [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 1,058,089 | 949,635 | 842,921 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 172,330 | 156,513 | 121,055 | ||||||||
Florida [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 1,019,733 | 917,956 | 802,665 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 196,525 | 190,441 | 139,673 | ||||||||
Texas [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 845,772 | 859,165 | 835,473 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 121,329 | 133,005 | 111,431 | ||||||||
Midwest [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 1,020,691 | 872,241 | 791,537 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 91,745 | 78,863 | 84,551 | ||||||||
West [Member] | |||||||||||
Revenues: | |||||||||||
Homebuilding | 1,214,814 | 1,386,869 | 1,446,339 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 169,394 | 254,724 | 258,960 | ||||||||
Other Homebuilding [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | (76,622) | (282,234) | (346,803) | ||||||||
Financial Services [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | $ 58,706 | $ 54,581 | $ 48,709 |
Segment Information (Land-Relat
Segment Information (Land-Related Charges By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information | |||
Total land-related charges | $ 11,467 | $ 11,168 | $ 9,672 |
Northeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 3,301 | 2,824 | 557 |
Southeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 3,022 | 1,826 | 998 |
Florida [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 4,555 | 487 | 1,076 |
Texas [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 295 | 321 | 191 |
Midwest [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 2,319 | 2,347 | 1,883 |
West [Member] | |||
Segment Reporting Information | |||
Total land-related charges | (2,615) | 1,696 | 2,023 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Total land-related charges | $ 590 | $ 1,667 | $ 2,944 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation and amortization: | |||
Depreciation and amortization | $ 46,222 | $ 39,864 | $ 31,587 |
Northeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 1,682 | 1,852 | 1,987 |
Southeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 3,492 | 2,666 | 1,647 |
Florida [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 3,536 | 2,150 | 1,334 |
Texas [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 2,928 | 1,698 | 1,784 |
Midwest [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 5,019 | 3,153 | 1,644 |
West [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 5,995 | 5,263 | 3,590 |
Other Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 20,254 | 19,548 | 16,248 |
Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 42,906 | 36,330 | 28,234 |
Financial Services [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | $ 3,316 | $ 3,534 | $ 3,353 |
Segment Information (Equity in
Segment Information (Equity in (earnings) loss of unconsolidated entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | $ (7,355) | $ (8,226) | $ (993) |
Equity in (Earnings) Loss of Unconsolidated Entities by Reporting Segment | Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Equity in (earnings) loss of unconsolidated entities: Northeast $ 2 $ (4,733 ) $ (58 ) Southeast — — — Florida 2 (7 ) (4 ) Midwest (337 ) (481 ) 151 Texas — — — West (5,107 ) (2,422 ) (1,437 ) Other homebuilding (1,915 ) (583 ) 355 (7,355 ) (8,226 ) (993 ) Financial Services — (182 ) (137 ) $ (7,355 ) $ (8,408 ) $ (1,130 ) | (8,408) | (1,130) |
Northeast [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | $ 2 | $ (4,733) | $ (58) |
Southeast [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Florida [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | 2 | (7) | (4) |
Texas [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Midwest [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | (337) | (481) | 151 |
West [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | (5,107) | (2,422) | (1,437) |
Other Homebuilding [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | (1,915) | (583) | 355 |
Homebuilding [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | (7,355) | (8,226) | (993) |
Financial Services [Member] | |||
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | $ 0 | $ (182) | $ (137) |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information | |||
Homes under construction | $ 1,408,260 | $ 1,084,137 | $ 1,042,147 |
Land under development | 3,259,066 | 2,545,049 | 2,189,387 |
Raw land | 782,732 | 762,914 | 747,027 |
House and land inventory | 5,450,058 | 4,392,100 | 3,978,561 |
Total assets | 8,967,160 | 8,569,410 | 8,734,143 |
Northeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 163,173 | 184,974 | 212,611 |
Land under development | 292,631 | 266,229 | 325,241 |
Raw land | 121,522 | 106,077 | 106,681 |
House and land inventory | 577,326 | 557,280 | 644,533 |
Total assets | 688,610 | 659,224 | 731,259 |
Southeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 196,456 | 147,506 | 139,484 |
Land under development | 367,577 | 304,762 | 274,981 |
Raw land | 139,246 | 117,981 | 146,617 |
House and land inventory | 703,279 | 570,249 | 561,082 |
Total assets | 765,933 | 605,067 | 599,271 |
Florida [Member] | |||
Segment Reporting Information | |||
Homes under construction | 227,910 | 150,743 | 140,366 |
Land under development | 574,092 | 350,016 | 295,631 |
Raw land | 97,185 | 112,225 | 104,766 |
House and land inventory | 899,187 | 612,984 | 540,763 |
Total assets | 1,013,543 | 717,531 | 618,449 |
Texas [Member] | |||
Segment Reporting Information | |||
Homes under construction | 191,424 | 134,873 | 130,398 |
Land under development | 317,702 | 250,102 | 223,979 |
Raw land | 107,737 | 91,765 | 57,480 |
House and land inventory | 616,863 | 476,740 | 411,857 |
Total assets | 691,342 | 528,392 | 466,198 |
Midwest [Member] | |||
Segment Reporting Information | |||
Homes under construction | 197,738 | 176,966 | 109,251 |
Land under development | 414,386 | 326,549 | 184,172 |
Raw land | 68,918 | 70,266 | 23,092 |
House and land inventory | 681,042 | 573,781 | 316,515 |
Total assets | 734,834 | 624,815 | 346,851 |
West [Member] | |||
Segment Reporting Information | |||
Homes under construction | 413,208 | 270,060 | 277,636 |
Land under development | 1,094,112 | 850,629 | 678,231 |
Raw land | 222,920 | 230,199 | 257,512 |
House and land inventory | 1,730,240 | 1,350,888 | 1,213,379 |
Total assets | 1,924,958 | 1,485,685 | 1,309,850 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Homes under construction | 18,351 | 19,015 | 32,401 |
Land under development | 198,566 | 196,762 | 207,152 |
Raw land | 25,204 | 34,401 | 50,879 |
House and land inventory | 242,121 | 250,178 | 290,432 |
Total assets | 2,638,951 | 3,527,731 | 4,334,591 |
Homebuilding [Member] | |||
Segment Reporting Information | |||
Homes under construction | 1,408,260 | 1,084,137 | 1,042,147 |
Land under development | 3,259,066 | 2,545,049 | 2,189,387 |
Raw land | 782,732 | 762,914 | 747,027 |
House and land inventory | 5,450,058 | 4,392,100 | 3,978,561 |
Total assets | 8,458,171 | 8,148,445 | 8,406,469 |
Financial Services [Member] | |||
Segment Reporting Information | |||
Total assets | $ 508,989 | $ 420,965 | $ 327,674 |
Investments In Unconsolidated51
Investments In Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of unconsolidated entities | $ (7,355) | $ (8,226) | $ (993) |
Equity in (Earnings) Loss of Unconsolidated Entities by Reporting Segment | Operating Data by Segment ($000's omitted) Years Ended December 31, 2015 2014 2013 Equity in (earnings) loss of unconsolidated entities: Northeast $ 2 $ (4,733 ) $ (58 ) Southeast — — — Florida 2 (7 ) (4 ) Midwest (337 ) (481 ) 151 Texas — — — West (5,107 ) (2,422 ) (1,437 ) Other homebuilding (1,915 ) (583 ) 355 (7,355 ) (8,226 ) (993 ) Financial Services — (182 ) (137 ) $ (7,355 ) $ (8,408 ) $ (1,130 ) | (8,408) | (1,130) |
Capital and earnings distributions received from unconsolidated entities | $ 6,000 | $ 13,100 | $ 3,100 |
Homebuilding [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of unconsolidated entities | (7,355) | (8,226) | (993) |
Financial Services [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of unconsolidated entities | $ 0 | $ (182) | $ (137) |
Investments In Unconsolidated52
Investments In Unconsolidated Entities (Summary Schedule Of Joint Ventures) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments in joint ventures with debt non-recourse to Company | $ 23,236 | $ 26,488 |
Investments in other active joint ventures | 18,031 | 13,880 |
Total investments in unconsolidated entities | 41,267 | 40,368 |
Total joint venture debt | 16,369 | 25,849 |
Company proportionate share of joint venture debt: | ||
Joint venture debt with limited recourse guaranties | 226 | 283 |
Joint venture debt non-recourse to Company | 6,744 | 11,341 |
Company's total proportionate share of joint venture debt | $ 6,970 | $ 11,624 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 29, 2016 | Jan. 19, 2016 | Sep. 08, 2014 | Jul. 23, 2014 | |
Debt Instrument | |||||||||
Long-term debt, maturities, repayments of principal, 2016 | $ 465,200,000 | ||||||||
Long-term debt, maturities, repayments of principal, 2017 | 123,000,000 | ||||||||
Long-term debt, maturities, repayments of principal, 2018 - 2020 | 0 | ||||||||
Long-term debt, maturities, repayments of principal, thereafter | 1,000,000,000 | ||||||||
Extinguishment of debt, amount | 238,000,000 | $ 245,700,000 | $ 461,400,000 | ||||||
Loss on debt retirements | 0 | 8,584,000 | $ 26,930,000 | ||||||
Letters of credit outstanding, amount | 191,300,000 | 212,100,000 | |||||||
Unused credit lines | 308,700,000 | 291,600,000 | |||||||
Term loan | $ 500,000,000 | ||||||||
Line of Credit Facility, Interest Rate Description | 0.015 | ||||||||
Notes Payable | $ 35,336,000 | 22,255,000 | |||||||
Debt Instrument, Term | 6 years | ||||||||
Financial Services debt | $ 267,877,000 | $ 140,241,000 | |||||||
Maximum [Member] | |||||||||
Debt Instrument | |||||||||
Debt instrument, interest rate, stated percentage | 5.00% | ||||||||
Unsecured Letter Of Credit Facility [Member] | |||||||||
Debt Instrument | |||||||||
Letters of credit outstanding, amount | $ 191,300,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||
Short-term Debt, Terms | 0.5 | ||||||||
Short-term debt covenant description | 300,000 | ||||||||
Line of Credit, Current | $ 0 | ||||||||
Line of Credit Facility, Initiation Date | Jul. 23, 2014 | ||||||||
Line of Credit Facility, Expiration Date | Jul. 21, 2017 | ||||||||
Revolving Credit Facility Accordion Feature [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||
Financial Services [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 310,000,000 | $ 150,000,000 | |||||||
Unused credit lines | $ 42,123,000 | 9,759,000 | |||||||
Financial Services [Member] | Unsecured Letter Of Credit Facility [Member] | |||||||||
Debt Instrument | |||||||||
Line of Credit Facility, Expiration Date | Sep. 1, 2014 | ||||||||
Financial Services [Member] | Repurchase Agreement [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 310,000,000 | ||||||||
Line of Credit Facility, Initiation Date | Jun. 1, 2015 | Feb. 2, 2015 | Sep. 8, 2014 | ||||||
Line of Credit Facility, Expiration Date | Sep. 7, 2015 | ||||||||
Financial Services debt | $ 267,900,000 | $ 140,200,000 | |||||||
Financial Services [Member] | Repurchase Agreement [Member] | Scenario, Forecast [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||||
Subsequent Event [Member] | Financial Services [Member] | Repurchase Agreement [Member] | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 175,000,000 |
Debt (Summary Of Company's Seni
Debt (Summary Of Company's Senior Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument | ||
Senior note carrying value | $ 1,584,769 | $ 1,818,561 |
Estimated fair value | $ 1,643,651 | $ 1,952,774 |
Unsecured Senior Notes 5.20% Due February 2015 [Member] | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 5.20% | 5.20% |
Debt instrument, maturity date, description | February 2,015 | February 2,015 |
Unsecured Senior Notes 5.25% Due June 2015 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 0 | $ 236,452 |
Debt instrument, interest rate, stated percentage | 5.25% | 5.25% |
Debt instrument, maturity date, description | June 2,015 | June 2,015 |
Unsecured Senior Notes 6.50% Due May 2016 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 464,436 | $ 462,009 |
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% |
Debt instrument, maturity date, description | May 2,016 | May 2,016 |
Unsecured Senior Notes 7.625% Due October 2017 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 122,841 | $ 122,752 |
Debt instrument, interest rate, stated percentage | 7.625% | 7.625% |
Debt instrument, maturity date, description | October 2,017 | October 2,017 |
Unsecured Senior Notes 7.875% Due June 2032 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 299,283 | $ 299,239 |
Debt instrument, interest rate, stated percentage | 7.875% | 7.875% |
Debt instrument, maturity date, description | June 2,032 | June 2,032 |
Unsecured Senior Notes 6.375% Due May 2033 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 398,714 | $ 398,640 |
Debt instrument, interest rate, stated percentage | 6.375% | 6.375% |
Debt instrument, maturity date, description | May 2,033 | May 2,033 |
Unsecured Senior Notes 6.00% Due February 2035 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 299,495 | $ 299,469 |
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% |
Debt instrument, maturity date, description | February 2,035 | February 2,035 |
Unsecured Senior Notes 7.375% Due June 2046 [Member] | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 7.375% | 7.375% |
Debt instrument, maturity date, description | June 2,046 | June 2,046 |
Debt (Aggregate Borrowing Infor
Debt (Aggregate Borrowing Information) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Unused credit lines | $ 308,700,000 | $ 291,600,000 |
Financial Services [Member] | ||
Line of Credit Facility [Line Items] | ||
Available credit lines | 310,000,000 | 150,000,000 |
Unused credit lines | $ 42,123,000 | $ 9,759,000 |
Weighted-average interest rate | 2.65% | 2.70% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||||
Cash dividends declared (usd per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.33 | $ 0.23 | $ 0.15 |
Dividends declared | $ 117,873,000 | $ 86,370,000 | $ 57,530,000 | |||
Stock repurchases | 442,738,000 | $ 253,019,000 | $ 127,661,000 | |||
Share repurchase plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Remaining value of stock repurchase programs authorization | $ 604,800,000 | |||||
Shares repurchased under authorized repurchase programs | 21.2 | 12.9 | 7.2 | |||
Stock repurchases | $ 433,700,000 | $ 245,834,000 | $ 118,052,000 | |||
Shares withheld to pay taxes [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchases | $ 9,000,000 | $ 7,200,000 | $ 9,600,000 |
Stock Compensation Plans Narrat
Stock Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum period stock options, appreciation rights, restricted stock, and restricted stock units can be granted | 10 years | ||
Number of shares available for grant | 25,100,000 | ||
Number of Years Stock Options are Exercisable After Grant Date | 10 years | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 4 years | ||
Unrecognized stock compensation expense | $ 0 | ||
Aggregate instrinsic value of stock options exercised | 9.4 | $ 14.1 | $ 10.8 |
Intrinsic value of outstanding stock options | 25.3 | ||
Intrinsic value of exercisable stock options | $ 25.3 | ||
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units outstanding vested but not yet paid | 88,727 | ||
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | $ 16 | ||
Weighted average period in which stock based compensation costs are expensed | 2 years | ||
Restricted stock shares vested during period, total fair value | $ 10.2 | 8.1 | $ 12.7 |
Field long-term compensation plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Long-term incentive plan liability | $ 2.7 | 9.5 | |
Senior management long-term compensation plan [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation vesting period maximum | 3 years | ||
Long-term incentive plan liability | $ 20.5 | $ 26.2 | |
Stock compensation plan price floor | $ 5 |
Stock Compensation Plans (Expen
Stock Compensation Plans (Expense by plan type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 24,752 | $ 29,292 | $ 30,480 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 37 | 121 | 1,056 |
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 16,852 | 13,690 | 13,418 |
Long-term incentive plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 7,863 | $ 15,481 | $ 16,006 |
Stock Compensation Plans (Stock
Stock Compensation Plans (Stock Option Activity Rollforward) (Details) - Stock options [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of year | 9,370 | 12,887 | 17,148 |
Granted | 0 | 0 | 0 |
Exercised | (904) | (1,422) | (1,432) |
Forfeited | (2,426) | (2,095) | (2,829) |
Outstanding, end of year | 6,040 | 9,370 | 12,887 |
Options exercisable at year end | 6,040 | 9,265 | 12,402 |
Weighted-average per share fair value of options granted during the year | $ 0 | $ 0 | $ 0 |
Outstanding, weighted-average per share exercise price, beginning of year | 23 | 23 | 22 |
Granted, weighted-average per share exercise price | 0 | 0 | 0 |
Exercised, weighted-average per share exercise price | 12 | 11 | 14 |
Forfeited, weighted-average per share exercise price | 37 | 29 | 25 |
Options outstanding, weighted-average per share exercise price, end of year | 19 | 23 | 23 |
Options exercisable at year end, weighted-average per share exercise price | $ 19 | $ 23 | $ 23 |
Stock Compensation Plans (Weigh
Stock Compensation Plans (Weighted-average remaining contractual lives of stock options outstanding) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 6,040 |
Options outstanding - weighted average per share exercise price | $ 19 |
Options exercisable - number exercisable | shares | 6,040 |
Options exercisable - weighted average per share exercise price | $ 19 |
Weighted average remaining contractual term | 2 years 8 months |
$0.01 to $10.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 326 |
Options outstanding - weighted average per share exercise price | $ 8 |
Options exercisable - number exercisable | shares | 326 |
Options exercisable - weighted average per share exercise price | $ 8 |
Exercise price range, lower range limit | 0.01 |
Exercise price range, upper range limit | $ 10 |
Weighted average remaining contractual term | 4 years 10 months |
$10.01 to $20.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 3,697 |
Options outstanding - weighted average per share exercise price | $ 12 |
Options exercisable - number exercisable | shares | 3,697 |
Options exercisable - weighted average per share exercise price | $ 12 |
Exercise price range, lower range limit | 10.01 |
Exercise price range, upper range limit | $ 20 |
Weighted average remaining contractual term | 3 years 6 months |
$20.01 to $30.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 152 |
Options outstanding - weighted average per share exercise price | $ 28 |
Options exercisable - number exercisable | shares | 152 |
Options exercisable - weighted average per share exercise price | $ 28 |
Exercise price range, lower range limit | 20.01 |
Exercise price range, upper range limit | $ 30 |
Weighted average remaining contractual term | 1 year |
$30.01 to $40.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 1,865 |
Options outstanding - weighted average per share exercise price | $ 34 |
Options exercisable - number exercisable | shares | 1,865 |
Options exercisable - weighted average per share exercise price | $ 34 |
Exercise price range, lower range limit | 30.01 |
Exercise price range, upper range limit | $ 40 |
Weighted average remaining contractual term | 1 year |
$40.01 to $45.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $ 40.01 |
Exercise price range, upper range limit | $ 45 |
Stock Compensation Plans (Restr
Stock Compensation Plans (Restricted Stock, RSUs and Performance Shares Activity Rollforward) (Details) - Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock, RSUs and Performance Shares Activity [Roll Forward] | |||
Outstanding, beginning of year | 2,890 | 3,211 | 3,822 |
Granted | 932 | 974 | 806 |
Vested | (1,090) | (1,019) | (1,391) |
Forfeited | (156) | (276) | (26) |
Outstanding, end of year | 2,576 | 2,890 | 3,211 |
Vested, end of year | 89 | 75 | 60 |
Outstanding, beginning of year, weighted-average per share grant date fair value | $ 15 | $ 11 | $ 9 |
Granted, weighted-average per share grant date fair value | 22 | 19 | 21 |
Vested, weighted-average per share grant date fair value | 10 | 10 | 11 |
Forfeited, weighted-average per share grant date fair value | 19 | 15 | 15 |
Outstanding, end of year, weighted-average per share grant date fair value | 18 | 15 | 11 |
Vested, end of year, weighted-average per share grant date fair value | $ 14 | $ 13 | $ 12 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||||
Gross federal NOL carryforward | $ 1,000,000 | $ 1,000,000 | |||
Valuation allowance adjustment | 49,600 | $ (45,600) | $ 2,100,000 | ||
unrecognized tax benefits in equity share based payment | 19,400 | ||||
Deferred Income Tax Expense (Benefit) | $ 311,699 | 223,769 | (2,096,423) | ||
Gross unrecognized tax benefits | 38,992 | 38,992 | 32,911 | $ 173,310 | $ 170,425 |
Income tax liabilities | 57,050 | 57,050 | 48,722 | ||
Possible decrease in unrecognized tax benefits | 35,000 | 35,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 17,200 | $ 17,200 | $ 17,300 | ||
Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 5 years | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2028 | ||||
Income tax examination, year(s) under examination | 2,005 | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 20 years | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2032 | ||||
Income tax examination, year(s) under examination | 2,015 | ||||
2016 to 2020 [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2016 | ||||
2016 to 2020 [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2020 | ||||
2016 to 2020 [Member] | State and Local Jurisdiction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 32,200 | $ 32,200 | |||
2021 to 2025 [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2021 | ||||
2021 to 2025 [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2025 | ||||
2021 to 2025 [Member] | State and Local Jurisdiction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 46,100 | $ 46,100 | |||
2026 to 2035 [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2026 | ||||
2026 to 2035 [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards, expiration dates | Jan. 1, 2035 | ||||
2026 to 2035 [Member] | State and Local Jurisdiction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 196,400 | $ 196,400 |
Income Taxes Components of curr
Income Taxes Components of current and deferred income tax expense (benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision (benefit) | |||||||||||
Federal | $ 8,760 | $ 5,619 | $ 5,725 | ||||||||
State and other | 1,474 | (13,968) | (1,596) | ||||||||
Current Income Tax Expense (Benefit) | 10,234 | (8,349) | 4,129 | ||||||||
Deferred provision (benefit) | |||||||||||
Federal | 277,895 | 232,969 | (1,833,580) | ||||||||
State and other | 33,804 | (9,200) | (262,843) | ||||||||
Deferred Income Tax Expense (Benefit) | 311,699 | 223,769 | (2,096,423) | ||||||||
Income tax expense (benefit) | $ 145,288 | $ 71,507 | $ 64,303 | $ 40,834 | $ 50,025 | $ 84,383 | $ 25,801 | $ 55,210 | $ 321,933 | $ 215,420 | $ (2,092,294) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of statutory federal income tax rate to effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Income taxes at federal statutory rate | 35.00% | 35.00% | 35.00% |
Effect of state and local income taxes, net of federal tax | 2.80% | 3.00% | 4.00% |
Deferred tax asset valuation allowance | 0.40% | (6.60%) | (438.00%) |
Tax contingencies | 0.10% | (1.40%) | 0.30% |
Other | 1.20% | 1.20% | 2.30% |
Effective rate | 39.50% | 31.20% | (396.40%) |
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards, expiration dates | Jan. 1, 2032 |
Income Taxes Net deferred tax a
Income Taxes Net deferred tax asset (liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance adjustment | $ 49,600 | $ (45,600) | $ 2,100,000 | |
Deferred Tax Assets [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Other | 237,836 | $ 237,836 | 254,031 | |
Non-deductible reserves and other | 155,488 | 155,488 | 191,097 | |
Inventory valuation reserves | 476,673 | 476,673 | 599,763 | |
Net operating loss (NOL) carryforwards: | ||||
Federal | 367,302 | 367,302 | 515,568 | |
State | 274,686 | 274,686 | 257,738 | |
Alternative minimum tax credits | 44,161 | 44,161 | 34,812 | |
Energy credit and charitable contribution carryforward | 28,669 | 28,669 | 27,858 | |
Deferred Tax Assets, Gross | 1,584,815 | 1,584,815 | 1,880,867 | |
Deferred Tax Liabilities [Abstract] | ||||
Capitalized items, including real estate basis differences, deducted for tax, net | (39,220) | (39,220) | (31,584) | |
Trademarks and tradenames | (41,664) | (41,664) | (46,362) | |
Deferred Tax Liabilities, Gross | (80,884) | (80,884) | (77,946) | |
Valuation allowance | (109,052) | (109,052) | (82,253) | |
Net deferred tax asset (liability) | $ 1,394,879 | $ 1,394,879 | $ 1,720,668 | |
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2028 | |||
Minimum [Member] | 2016 to 2020 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2016 | |||
Minimum [Member] | 2021 to 2025 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2021 | |||
Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2032 | |||
Maximum [Member] | 2016 to 2020 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2020 | |||
Maximum [Member] | 2021 to 2025 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, expiration dates | Jan. 1, 2025 |
Income Taxes Reconciliation o66
Income Taxes Reconciliation of the change in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of the change in unrecognized tax benefits [Roll Forward] | |||
Unrecognized Tax Benefits, beginning of period | $ 32,911 | $ 173,310 | $ 170,425 |
Increases related to tax positions taken during a prior period | 5,763 | 0 | 12,877 |
Decreases related to tax positions taken during a prior period | 0 | (133,883) | (7,502) |
Increases related to tax positions taken during the current period | 318 | 237 | 381 |
Decreases related to settlements with taxing authorities | 0 | (6,753) | (1,434) |
Reductions as a result of a lapse of the statute of limitations | 0 | 0 | (1,437) |
Unrecognized Tax Benefits, end of period | $ 38,992 | $ 32,911 | $ 173,310 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Narrative) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Senior notes | $ 1,584,769 | $ 1,818,561 |
Fair Value Disclosures Fair V68
Fair Value Disclosures Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosed at fair value: | ||
Term loan | $ 500,000 | |
Senior notes, fair value | 1,643,651 | $ 1,952,774 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash), fair value | 775,435 | 1,309,220 |
Fair Value, Inputs, Level 2 [Member] | ||
Disclosed at fair value: | ||
Financial Services debt, fair value | 267,877 | 140,241 |
Term loan | 0 | |
Senior notes, fair value | 1,643,651 | 1,952,774 |
House and land inventory [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure, Nonrecurring | 11,052 | 13,925 |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 5,574 | 4,248 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 338 | (3,574) |
Whole Loan Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 13 | (588) |
Residential Mortgage [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | $ 442,715 | $ 339,531 |
Other Assets and Accrued and 69
Other Assets and Accrued and Other Liabilities (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||
Insurance receivables | $ 130,170 | $ 60,598 |
Notes receivable | 28,288 | 30,699 |
Other receivables | 83,177 | 63,867 |
Accounts and notes receivable | 241,635 | 155,164 |
Prepaid expenses | 109,113 | 72,585 |
Deposits and pre-acquisition Costs | 162,119 | 127,280 |
Property and equipment, net | 86,312 | 75,219 |
Income taxes receivable | 25,080 | 21,330 |
Other | 46,840 | 91,640 |
Other Assets | $ 671,099 | $ 543,218 |
Other Assets and Accrued and 70
Other Assets and Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||||
Self-insurance liabilities | $ 692,053 | $ 710,245 | $ 668,100 | $ 721,284 |
Loan origination liabilities | 46,381 | 58,222 | 124,956 | 164,280 |
Compensation-related | 124,798 | 142,586 | ||
Warranty | 61,179 | 65,389 | $ 63,992 | $ 64,098 |
Community development district obligations | 11,964 | 17,122 | ||
Accrued interest | 20,541 | 20,446 | ||
Notes Payable | 35,336 | 22,255 | ||
Dividends Payable | 31,568 | 29,682 | ||
Other | 260,453 | 277,827 | ||
Accrued and other liabilities | $ 1,284,273 | $ 1,343,774 |
Commitments And Contingencies71
Commitments And Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015USD ($)claim | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)claim | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Pending Claims, Number | claim | 1,000 | 1,000 | |||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ 18,600 | ||||||||
Adjustment to self insurance reserves | $ (29,600) | $ (15,200) | $ 84,500 | $ (62,200) | 69,300 | ||||
Future minimum sublease rental income | 2,500 | 2,500 | |||||||
Operating lease rent expense | 27,700 | 25,300 | $ 23,000 | ||||||
Accrued liabilities for outstanding community development district obligations | 11,964 | 17,122 | 11,964 | 17,122 | |||||
Letters of credit outstanding, amount | 191,300 | 212,100 | 191,300 | 212,100 | |||||
Surety Bonds Outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Charges related to contractual dispute | $ 20,000 | 41,200 | |||||||
Maximum product warranty in years | 10 years | ||||||||
Self-insurance liabilities | $ 692,053 | $ 710,245 | $ 692,053 | $ 710,245 | $ 668,100 | $ 721,284 | |||
Incurred but not reported percentage of liability reserves | 65.00% | 72.00% | 65.00% | 72.00% | |||||
Payments for Legal Settlements | $ (5,700) | $ (26,900) | $ (32,600) |
Commitments and Contingencies C
Commitments and Contingencies Commitments And Contingencies (Future minimum operating lease payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Years Ending December 31, | |
Future minimum lease payments - 2016 | $ 28,561 |
Future minimum lease payments - 2017 | 21,353 |
Future minimum lease payments - 2018 | 18,320 |
Future minimum lease payments - 2019 | 15,981 |
Future minimum lease payments - 2020 | 8,940 |
Future minimum lease payments - Thereafter | 34,974 |
Future minimum lease payments - Total | $ 128,129 |
Commitments And Contingencies73
Commitments And Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Loss Contingency Accrual, Period Increase (Decrease) | $ (18,600) | ||
Changes in loan origination liability [Roll Forward] | |||
Liabilities, beginning of period | $ 58,222 | 124,956 | $ 164,280 |
Reserves provided (released), net | (11,433) | (18,604) | 0 |
Payments | (408) | (48,130) | (39,324) |
Liabilities, end of period | $ 46,381 | $ 58,222 | $ 124,956 |
Commitments And Contingencies74
Commitments And Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes to warranty liabilities [Roll Forward] | |||
Warranty liabilities, beginning of period | $ 65,389 | $ 63,992 | $ 64,098 |
Warranty reserves provided | 52,684 | 51,348 | 49,399 |
Payments | (60,968) | (47,968) | (44,925) |
Other adjustments | 4,074 | (1,983) | (4,580) |
Warranty liabilities, end of period | $ 61,179 | $ 65,389 | $ 63,992 |
Commitments And Contingencies75
Commitments And Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Adjustment to self insurance reserves | $ (29,600) | $ (15,200) | $ 84,500 | $ (62,200) | $ 69,300 | |
Insurance Related Expenses [Roll Forward] | ||||||
Balance, beginning of period | 710,245 | 668,100 | $ 721,284 | |||
Reserves provided | 16,085 | 141,790 | 64,737 | |||
Payments | (34,277) | (99,645) | (117,921) | |||
Balance, end of period | $ 692,053 | $ 710,245 | $ 692,053 | $ 710,245 | $ 668,100 |
Supplemental Guarantor Inform76
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and equivalents | $ 754,161 | $ 1,292,862 | $ 1,580,329 | $ 1,404,760 |
Restricted cash | 21,274 | 16,358 | ||
House and land inventory | 5,450,058 | 4,392,100 | 3,978,561 | |
Land held for sale | 81,492 | 101,190 | ||
Residential mortgage loans available-for-sale | 442,715 | 339,531 | ||
Securities purchased under agreements to resell | 0 | |||
Investments in unconsolidated entities | 41,267 | 40,368 | ||
Other assets | 671,099 | 543,218 | ||
Intangible assets | 110,215 | 123,115 | ||
Deferred tax assets, net | 1,394,879 | 1,720,668 | ||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | ||
Total assets | 8,967,160 | 8,569,410 | 8,734,143 | |
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,798,139 | 1,756,932 | ||
Income tax liabilities | 57,050 | 48,722 | ||
Financial Services debt | 267,877 | 140,241 | ||
Term loan | 500,000 | |||
Senior notes | 1,584,769 | 1,818,561 | ||
Total liabilities | 4,207,835 | 3,764,456 | ||
Total shareholders' equity | 4,759,325 | 4,804,954 | 4,648,952 | 2,189,616 |
Total liabilities and shareholders' equity | 8,967,160 | 8,569,410 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and equivalents | 0 | 7,454 | 262,364 | 146,168 |
Restricted cash | 0 | 3,710 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Securities purchased under agreements to resell | 22,000 | |||
Investments in unconsolidated entities | 93 | 74 | ||
Other assets | 49,255 | 34,214 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 1,392,251 | 1,712,853 | ||
Investments in subsidiaries and intercompany accounts, net | 5,529,606 | 4,963,831 | ||
Total assets | 6,971,205 | 6,744,136 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 70,061 | 71,874 | ||
Income tax liabilities | 57,050 | 48,747 | ||
Financial Services debt | 0 | 0 | ||
Term loan | 500,000 | |||
Senior notes | 1,584,769 | 1,818,561 | ||
Total liabilities | 2,211,880 | 1,939,182 | ||
Total shareholders' equity | 4,759,325 | 4,804,954 | ||
Total liabilities and shareholders' equity | 6,971,205 | 6,744,136 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 638,602 | 1,157,307 | 1,188,999 | 1,063,943 |
Restricted cash | 20,274 | 1,513 | ||
House and land inventory | 5,450,058 | 4,391,445 | ||
Land held for sale | 80,458 | 100,156 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Securities purchased under agreements to resell | 0 | |||
Investments in unconsolidated entities | 36,499 | 36,126 | ||
Other assets | 531,120 | 451,331 | ||
Intangible assets | 110,215 | 123,115 | ||
Deferred tax assets, net | 11 | 15 | ||
Investments in subsidiaries and intercompany accounts, net | 465,644 | 967,032 | ||
Total assets | 7,332,881 | 7,228,040 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,558,885 | 1,514,954 | ||
Income tax liabilities | 0 | (25) | ||
Financial Services debt | 0 | 0 | ||
Term loan | 0 | |||
Senior notes | 0 | 0 | ||
Total liabilities | 1,558,885 | 1,514,929 | ||
Total shareholders' equity | 5,773,996 | 5,713,111 | ||
Total liabilities and shareholders' equity | 7,332,881 | 7,228,040 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 115,559 | 128,101 | 128,966 | 194,649 |
Restricted cash | 1,000 | 11,135 | ||
House and land inventory | 0 | 655 | ||
Land held for sale | 1,034 | 1,034 | ||
Residential mortgage loans available-for-sale | 442,715 | 339,531 | ||
Securities purchased under agreements to resell | (22,000) | |||
Investments in unconsolidated entities | 4,675 | 4,168 | ||
Other assets | 90,724 | 57,673 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 2,617 | 7,800 | ||
Investments in subsidiaries and intercompany accounts, net | 6,293,018 | 6,359,441 | ||
Total assets | 6,951,342 | 6,887,538 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 169,193 | 170,104 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 267,877 | 140,241 | ||
Term loan | 0 | |||
Senior notes | 0 | 0 | ||
Total liabilities | 437,070 | 310,345 | ||
Total shareholders' equity | 6,514,272 | 6,577,193 | ||
Total liabilities and shareholders' equity | 6,951,342 | 6,887,538 | ||
Eliminating Entries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | $ 0 | 0 | ||
Other assets | 0 | |||
Intangible assets | $ 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | (12,288,268) | (12,290,304) | ||
Total assets | (12,288,268) | (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 | (12,288,268) | (12,290,304) | ||
Total liabilities and shareholders' equity | $ (12,288,268) | $ (12,290,304) |
Supplemental Guarantor Inform77
Supplemental Guarantor Information (Statement Of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Homebuilding | |||||||||||
Home sale revenues | $ 5,792,675 | $ 5,662,171 | $ 5,424,309 | ||||||||
Land sale revenues | 48,536 | 34,554 | 114,335 | ||||||||
Total homebuilding revenues | $ 2,018,194 | $ 1,467,780 | $ 1,249,537 | $ 1,105,700 | $ 1,786,464 | $ 1,561,273 | $ 1,254,989 | $ 1,093,999 | 5,841,211 | 5,696,725 | 5,538,644 |
Financial Services | 43,434 | 38,967 | 30,754 | 27,598 | 36,093 | 33,452 | 31,198 | 24,895 | 140,753 | 125,638 | 140,951 |
Total revenues | 2,061,628 | 1,506,747 | 1,280,291 | 1,133,298 | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 5,981,964 | 5,822,363 | 5,679,595 |
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 4,440,893 | 4,343,249 | 4,310,528 | ||||||||
Land sale cost of revenues | 35,858 | 23,748 | 104,426 | ||||||||
Total cost of revenues | 1,541,461 | 1,122,175 | 958,592 | 854,523 | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 4,476,751 | 4,366,997 | 4,414,954 |
Financial Services expenses | 82,047 | 71,057 | 92,242 | ||||||||
Selling, general, and administrative expenses | 589,780 | 667,815 | 568,500 | ||||||||
Other expense, net | 17,363 | 26,736 | 76,077 | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 816,023 | 689,758 | 527,822 | ||||||||
Income tax expense (benefit) | 145,288 | 71,507 | 64,303 | 40,834 | 50,025 | 84,383 | 25,801 | 55,210 | 321,933 | 215,420 | (2,092,294) |
Income (loss) before equity in income (loss) of subsidiaries | 494,090 | 474,338 | 2,620,116 | ||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | $ 228,027 | $ 107,769 | $ 103,324 | $ 54,971 | $ 217,095 | $ 140,545 | $ 41,880 | $ 74,819 | 494,090 | 474,338 | 2,620,116 |
Other comprehensive income (loss) | 81 | 105 | 197 | ||||||||
Comprehensive income | 494,171 | 474,443 | 2,620,313 | ||||||||
Parent Company [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 313 | 784 | 832 | ||||||||
Selling, general, and administrative expenses | 3 | 0 | 0 | ||||||||
Other expense, net | 760 | 9,026 | 28,694 | ||||||||
Intercompany interest | 2,110 | 9,800 | 17,518 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (3,186) | (19,610) | (47,044) | ||||||||
Income tax expense (benefit) | (1,210) | (7,473) | (2,113,827) | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | (1,976) | (12,137) | 2,066,783 | ||||||||
Equity in income (loss) of subsidiaries | 496,066 | 486,475 | 553,333 | ||||||||
Net income | 494,090 | 474,338 | 2,620,116 | ||||||||
Other comprehensive income (loss) | 81 | 105 | 197 | ||||||||
Comprehensive income | 494,171 | 474,443 | 2,620,313 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 5,792,675 | 5,662,171 | 5,424,309 | ||||||||
Land sale revenues | 48,536 | 34,554 | 114,335 | ||||||||
Total homebuilding revenues | 5,841,211 | 5,696,725 | 5,538,644 | ||||||||
Financial Services | 1 | 889 | 2,353 | ||||||||
Total revenues | 5,841,212 | 5,697,614 | 5,540,997 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 4,440,893 | 4,343,249 | 4,310,528 | ||||||||
Land sale cost of revenues | 35,858 | 23,748 | 104,426 | ||||||||
Total cost of revenues | 4,476,751 | 4,366,997 | 4,414,954 | ||||||||
Financial Services expenses | (276) | (130) | 970 | ||||||||
Selling, general, and administrative expenses | 585,870 | 661,308 | 573,904 | ||||||||
Other expense, net | 17,424 | 16,847 | 43,944 | ||||||||
Intercompany interest | 7,922 | (90) | (8,260) | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 753,521 | 652,682 | 515,485 | ||||||||
Income tax expense (benefit) | 297,485 | 201,332 | (799) | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 456,036 | 451,350 | 516,284 | ||||||||
Equity in income (loss) of subsidiaries | 40,484 | 38,534 | 35,086 | ||||||||
Net income | 496,520 | 489,884 | 551,370 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 496,520 | 489,884 | 551,370 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 140,752 | 124,749 | 138,598 | ||||||||
Total revenues | 140,752 | 124,749 | 138,598 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 82,010 | 70,403 | 90,440 | ||||||||
Selling, general, and administrative expenses | 3,907 | 6,507 | (5,404) | ||||||||
Other expense, net | (821) | 863 | 3,439 | ||||||||
Intercompany interest | (10,032) | (9,710) | (9,258) | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 65,688 | 56,686 | 59,381 | ||||||||
Income tax expense (benefit) | 25,658 | 21,561 | 22,332 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 40,030 | 35,125 | 37,049 | ||||||||
Equity in income (loss) of subsidiaries | 411,699 | 403,505 | 485,400 | ||||||||
Net income | 451,729 | 438,630 | 522,449 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 451,729 | 438,630 | 522,449 | ||||||||
Eliminating Entries [Member] | |||||||||||
Homebuilding | |||||||||||
Home sale revenues | 0 | 0 | 0 | ||||||||
Land sale revenues | 0 | 0 | 0 | ||||||||
Total homebuilding revenues | 0 | 0 | 0 | ||||||||
Financial Services | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Home sale cost of revenues | 0 | 0 | 0 | ||||||||
Land sale cost of revenues | 0 | 0 | 0 | ||||||||
Total cost of revenues | 0 | 0 | 0 | ||||||||
Financial Services expenses | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in income (loss) of subsidiaries | (948,249) | (928,514) | (1,073,819) | ||||||||
Net income | (948,249) | (928,514) | (1,073,819) | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | $ (948,249) | $ (928,514) | $ (1,073,819) |
Supplemental Guarantor Inform78
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net cash provided by (used in) operating activities | $ (348,129) | $ 309,249 | $ 881,136 |
Cash flows from investing activities: | |||
Net change in loans held for investment | 8,664 | 335 | (12,265) |
Change in restricted cash related to letters of credit | 3,710 | 54,989 | (4,152) |
Capital expenditures | (45,440) | (48,790) | (28,899) |
Other investing activities, net | 2,212 | 8,261 | (661) |
Cash used for business acquisition | 0 | (82,419) | 0 |
Net cash used in investing activities | (30,854) | (67,624) | (45,977) |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 127,636 | 34,577 | (33,131) |
Proceeds from debt issuance | 500,000 | 0 | 0 |
Repayments of debt | (239,193) | (250,631) | (479,827) |
Borrowings under revolving credit facility | 125,000 | 0 | 0 |
Repayments under revolving credit facility | (125,000) | 0 | 0 |
Stock option exercises | 10,535 | 15,627 | 19,411 |
Share repurchases | (442,738) | (253,019) | (127,661) |
Dividends paid | (115,958) | (75,646) | (38,382) |
Intercompany activities, net | 0 | 0 | 0 |
Net cash used in financing activities | (159,718) | (529,092) | (659,590) |
Net increase (decrease) in cash and equivalents | (538,701) | (287,467) | 175,569 |
Cash and equivalents at beginning of period | 1,292,862 | 1,580,329 | 1,404,760 |
Cash and equivalents at end of period | 754,161 | 1,292,862 | 1,580,329 |
Parent Company [Member] | |||
Net cash provided by (used in) operating activities | 184,033 | 206,485 | (41) |
Cash flows from investing activities: | |||
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 3,710 | 54,989 | (4,152) |
Capital expenditures | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Net cash used in investing activities | 3,710 | 54,989 | (4,152) |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | 0 |
Proceeds from debt issuance | 500,000 | ||
Repayments of debt | (237,995) | (249,765) | (485,048) |
Borrowings under revolving credit facility | 125,000 | ||
Repayments under revolving credit facility | (125,000) | ||
Stock option exercises | 10,535 | 15,627 | 19,411 |
Share repurchases | (442,738) | (253,019) | (127,661) |
Dividends paid | (115,958) | (75,646) | (38,382) |
Intercompany activities, net | 90,959 | 46,419 | 752,069 |
Net cash used in financing activities | (195,197) | (516,384) | 120,389 |
Net increase (decrease) in cash and equivalents | (7,454) | (254,910) | 116,196 |
Cash and equivalents at beginning of period | 7,454 | 262,364 | 146,168 |
Cash and equivalents at end of period | 0 | 7,454 | 262,364 |
Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | (449,701) | 175,415 | 865,267 |
Cash flows from investing activities: | |||
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Capital expenditures | (41,857) | (44,956) | (26,472) |
Other investing activities, net | 1,937 | 8,274 | (661) |
Cash used for business acquisition | (82,419) | ||
Net cash used in investing activities | (39,920) | (119,101) | (27,133) |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | 0 |
Proceeds from debt issuance | 0 | ||
Repayments of debt | (1,198) | (866) | 5,221 |
Borrowings under revolving credit facility | 0 | ||
Repayments under revolving credit facility | 0 | ||
Stock option exercises | 0 | 0 | 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | (27,886) | (87,140) | (718,299) |
Net cash used in financing activities | (29,084) | (88,006) | (713,078) |
Net increase (decrease) in cash and equivalents | (518,705) | (31,692) | 125,056 |
Cash and equivalents at beginning of period | 1,157,307 | 1,188,999 | 1,063,943 |
Cash and equivalents at end of period | 638,602 | 1,157,307 | 1,188,999 |
Non-Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | (82,461) | (72,651) | 15,910 |
Cash flows from investing activities: | |||
Net change in loans held for investment | 8,664 | 335 | (12,265) |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Capital expenditures | (3,583) | (3,834) | (2,427) |
Other investing activities, net | 275 | (13) | 0 |
Cash used for business acquisition | 0 | ||
Net cash used in investing activities | 5,356 | (3,512) | (14,692) |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 127,636 | 34,577 | $ (33,131) |
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 | $ 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | (63,073) | 40,721 | (33,770) |
Net cash used in financing activities | 64,563 | 75,298 | (66,901) |
Net increase (decrease) in cash and equivalents | (12,542) | (865) | (65,683) |
Cash and equivalents at beginning of period | 128,101 | 128,966 | 194,649 |
Cash and equivalents at end of period | 115,559 | 128,101 | 128,966 |
Eliminating Entries [Member] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Net change in loans held for investment | 0 | 0 | 0 |
Change in restricted cash related to letters of credit | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Financial Services borrowings (repayments) | 0 | 0 | 0 |
Repayments of debt | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | ||
Repayments under revolving credit facility | 0 | ||
Stock option exercises | 0 | 0 | 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and equivalents | 0 | 0 | 0 |
Cash and equivalents at beginning of period | 0 | 0 | 0 |
Cash and equivalents at end of period | $ 0 | $ 0 | $ 0 |
Quarterly Results (Unaudited)79
Quarterly Results (Unaudited) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Payments for Legal Settlements | $ (5,700) | $ (26,900) | $ (32,600) | |||||
Litigation Settlement, Expense | 20,000 | $ 41,200 | ||||||
Gains (Losses) on Extinguishment of Debt | 0 | $ 8,584 | 26,930 | |||||
Adjustment to self insurance reserves | $ (29,600) | $ (15,200) | $ 84,500 | (62,200) | 69,300 | |||
Loan origination release | 11,800 | 11,800 | ||||||
loan origination reduction | $ 18,600 | 18,600 | ||||||
Loss Contingency Accrual, Period Increase (Decrease) | (18,600) | |||||||
Valuation allowance adjustment | $ 49,600 | (45,600) | 2,100,000 | |||||
Reserves provided | (11,433) | (18,604) | 0 | |||||
Home Office Relocation [Member] | ||||||||
Costs associated with the relocation of corporate headquarters | 4,400 | 16,300 | 15,400 | |||||
Home Office Relocation [Member] | Other Restructuring [Member] | ||||||||
Costs associated with the relocation of corporate headquarters | $ 2,300 | $ 8,700 | $ 400 |
Quarterly Results (Unaudited)80
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Homebuilding: | |||||||||||
Revenues | $ 2,018,194 | $ 1,467,780 | $ 1,249,537 | $ 1,105,700 | $ 1,786,464 | $ 1,561,273 | $ 1,254,989 | $ 1,093,999 | $ 5,841,211 | $ 5,696,725 | $ 5,538,644 |
Cost of revenues | 1,541,461 | 1,122,175 | 958,592 | 854,523 | 1,374,951 | 1,198,908 | 959,524 | 833,614 | 4,476,751 | 4,366,997 | 4,414,954 |
Income before income taxes | 344,019 | 164,911 | 157,640 | 90,748 | 254,118 | 214,051 | 58,573 | 108,435 | 757,317 | 635,177 | 479,113 |
Financial Services: | |||||||||||
Revenues | 43,434 | 38,967 | 30,754 | 27,598 | 36,093 | 33,452 | 31,198 | 24,895 | 140,753 | 125,638 | 140,951 |
Income before income taxes | 29,297 | 14,365 | 9,987 | 5,057 | 13,002 | 10,877 | 9,108 | 21,594 | 58,706 | 54,581 | |
Consolidated results: | |||||||||||
Total revenues | 2,061,628 | 1,506,747 | 1,280,291 | 1,133,298 | 1,822,557 | 1,594,725 | 1,286,187 | 1,118,894 | 5,981,964 | 5,822,363 | 5,679,595 |
Income before income taxes | 373,315 | 179,276 | 167,627 | 95,805 | 267,120 | 224,928 | 67,681 | 130,029 | 816,023 | 689,758 | 527,822 |
Income tax expense (benefit) | 145,288 | 71,507 | 64,303 | 40,834 | 50,025 | 84,383 | 25,801 | 55,210 | 321,933 | 215,420 | (2,092,294) |
Net income | $ 228,027 | $ 107,769 | $ 103,324 | $ 54,971 | $ 217,095 | $ 140,545 | $ 41,880 | $ 74,819 | $ 494,090 | $ 474,338 | $ 2,620,116 |
Net income per share: | |||||||||||
Basic (usd per share) | $ 0.65 | $ 0.31 | $ 0.28 | $ 0.15 | $ 0.58 | $ 0.37 | $ 0.11 | $ 0.19 | $ 1.38 | $ 1.27 | $ 6.79 |
Diluted (usd per share) | $ 0.64 | $ 0.30 | $ 0.28 | $ 0.15 | $ 0.58 | $ 0.37 | $ 0.11 | $ 0.19 | $ 1.36 | $ 1.26 | $ 6.72 |
Number of shares used in calculation: | |||||||||||
Basic shares outstanding | 348,699 | 350,147 | 361,009 | 366,748 | 369,533 | 373,531 | 376,072 | 383,991 | 356,576 | 370,377 | 383,077 |
Effect of dilutive securities (shares) | 3,047 | 3,225 | 3,232 | 3,362 | 3,734 | 3,761 | 3,592 | 3,815 | 3,217 | 3,725 | 3,789 |
Diluted shares outstanding (shares) | 351,746 | 353,372 | 364,241 | 370,110 | 373,267 | 377,292 | 379,664 | 387,806 | 359,793 | 374,102 | 386,866 |