Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 14, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PULTEGROUP INC/MI/ | |
Entity Central Index Key | 822,416 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 330,739,747 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and equivalents | $ 434,205 | $ 754,161 |
Restricted cash | 26,984 | 21,274 |
House and land inventory | 6,950,242 | 5,450,058 |
Land held for sale | 57,468 | 81,492 |
Residential mortgage loans available-for-sale | 349,012 | 442,715 |
Investments in unconsolidated entities | 51,768 | 41,267 |
Other assets | 647,706 | 660,835 |
Intangible assets | 158,242 | 110,215 |
Deferred tax assets, net | 1,195,905 | 1,394,879 |
Total assets | 9,871,532 | 8,956,896 |
Liabilities: | ||
Accounts payable | 378,423 | 327,725 |
Customer deposits | 248,302 | 186,141 |
Accrued and other liabilities | 1,270,353 | 1,284,273 |
Income tax liabilities | 33,562 | 57,050 |
Financial Services debt | 158,794 | 267,877 |
Term loan | 0 | 498,423 |
Senior notes | 3,110,066 | 1,576,082 |
Total liabilities | 5,199,500 | 4,197,571 |
Shareholders' equity | 4,672,032 | 4,759,325 |
Total liabilities and shareholders' equity | $ 9,871,532 | $ 8,956,896 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Homebuilding | ||||
Home sale revenues | $ 1,881,718 | $ 1,464,131 | $ 5,027,843 | $ 3,795,366 |
Land sale revenues | 13,167 | 3,649 | 20,604 | 27,651 |
Total homebuilding revenues | 1,894,885 | 1,467,780 | 5,048,447 | 3,823,017 |
Financial Services | 48,020 | 38,967 | 126,950 | 97,319 |
Consolidated revenues | 1,942,905 | 1,506,747 | 5,175,397 | 3,920,336 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,485,611 | 1,118,874 | 3,949,449 | 2,913,299 |
Land sale cost of revenues | 11,428 | 3,301 | 17,859 | 21,992 |
Total cost of revenues | 1,497,039 | 1,122,175 | 3,967,308 | 2,935,291 |
Financial Services expenses | 26,906 | 24,602 | 79,204 | 67,909 |
Selling, general, and administrative expenses | 183,008 | 159,361 | 566,355 | 450,793 |
Other expense (income), net | 23,617 | 21,333 | 42,402 | 23,638 |
Income before income taxes | 212,335 | 179,276 | 520,128 | 442,705 |
Income tax expense | 83,865 | 71,507 | 190,598 | 176,643 |
Net income | $ 128,470 | $ 107,769 | $ 329,530 | $ 266,062 |
Per share: | ||||
Basic earnings (usd per share) | $ 0.37 | $ 0.31 | $ 0.95 | $ 0.74 |
Diluted earnings (usd per share) | 0.37 | 0.30 | 0.94 | 0.73 |
Cash dividends declared (usd per share) | $ 0.09 | $ 0.08 | $ 0.27 | $ 0.24 |
Number of shares used in calculation: | ||||
Basic shares outstanding (shares) | 340,171 | 350,147 | 344,383 | 359,236 |
Effect of dilutive securities (shares) | 2,250 | 3,225 | 2,557 | 3,273 |
Diluted shares outstanding (shares) | 342,421 | 353,372 | 346,940 | 362,509 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 128,470 | $ 107,769 | $ 329,530 | $ 266,062 |
Other comprehensive income, net of tax: | ||||
Change in value of derivatives | 20 | 21 | 61 | 63 |
Other comprehensive income | 20 | 21 | 61 | 63 |
Comprehensive income | $ 128,490 | $ 107,790 | $ 329,591 | $ 266,125 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Shareholders' Equity beginning of period at Dec. 31, 2014 | $ 4,804,954 | $ 3,695 | $ 3,072,996 | $ (690) | $ 1,728,953 |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2014 | 369,459 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (shares) | 888 | ||||
Stock option exercises | 10,371 | $ 9 | 10,362 | ||
Stock issuances, net of cancellations (shares) | 431 | ||||
Stock issuances, net of cancellations | 7,423 | $ 4 | 7,419 | ||
Dividends declared | (86,296) | 8 | (86,304) | ||
Share repurchases | (442,738) | $ (216) | (442,522) | ||
Share repurchases (shares) | (21,641) | ||||
Share-based compensation | 13,556 | 13,556 | |||
Excess tax benefits (deficiencies) from share-based awards | (1,790) | (1,790) | |||
Net income | 266,062 | 266,062 | |||
Other comprehensive income | 63 | 63 | |||
Shareholders' Equity end of period at Sep. 30, 2015 | 4,571,605 | $ 3,492 | 3,102,551 | (627) | 1,466,189 |
Shareholders' Equity, shares end of period (shares) at Sep. 30, 2015 | 349,137 | ||||
Shareholders' Equity beginning of period at Dec. 31, 2015 | 4,759,325 | $ 3,491 | 3,093,802 | (609) | 1,662,641 |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2015 | 349,149 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (shares) | 498 | ||||
Stock option exercises | 5,845 | $ 5 | 5,840 | ||
Stock issuances, net of cancellations (shares) | 523 | ||||
Stock issuances, net of cancellations | 8,856 | $ 5 | 8,851 | ||
Dividends declared | (93,127) | (93,127) | |||
Share repurchases | (350,846) | $ (177) | (350,669) | ||
Share repurchases (shares) | (17,856) | ||||
Share-based compensation | 12,976 | 12,976 | |||
Excess tax benefits (deficiencies) from share-based awards | (588) | (588) | |||
Net income | 329,530 | 329,530 | |||
Other comprehensive income | 61 | 61 | |||
Shareholders' Equity end of period at Sep. 30, 2016 | $ 4,672,032 | $ 3,324 | $ 3,120,881 | $ (548) | $ 1,548,375 |
Shareholders' Equity, shares end of period (shares) at Sep. 30, 2016 | 332,314 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 329,530 | $ 266,062 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Deferred income tax expense | 198,974 | 171,364 |
Depreciation and amortization | 40,218 | 33,719 |
Share-based compensation expense | 19,813 | 20,139 |
Other, net | 17,678 | 11,300 |
Increase (decrease) in cash due to: | ||
Restricted cash | (5,710) | (13,293) |
Inventories | (1,100,173) | (835,276) |
Residential mortgage loans available-for-sale | 92,649 | 68,381 |
Other assets | 11,502 | (130,282) |
Accounts payable, accrued and other liabilities | 83,303 | 162,987 |
Net cash provided by (used in) operating activities | (312,216) | (244,899) |
Cash flows from investing activities: | ||
Capital expenditures | (30,551) | (34,049) |
Cash used for business acquisition | (430,458) | 0 |
Other investing activities, net | (8,576) | 13,669 |
Net cash used in investing activities | (469,585) | (20,380) |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 1,995,961 | 498,087 |
Repayments of debt | (985,734) | (238,520) |
Borrowings under revolving credit facility | 619,000 | 125,000 |
Repayments under revolving credit facility | (619,000) | (125,000) |
Financial Services borrowings (repayments) | (109,083) | (32,733) |
Stock option exercises | 5,845 | 10,371 |
Share repurchases | (350,846) | (442,738) |
Dividends paid | (94,298) | (87,897) |
Net cash provided by (used in) financing activities | 461,845 | (293,430) |
Net increase (decrease) in cash and equivalents | (319,956) | (558,709) |
Cash and equivalents at beginning of period | 754,161 | 1,292,862 |
Cash and equivalents at end of period | 434,205 | 734,153 |
Supplemental Cash Flow Information: | ||
Interest paid (capitalized), net | (11,324) | (20,304) |
Income taxes paid (refunded), net | $ (74) | $ 740 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation PulteGroup, Inc. is one of the largest homebuilders in the United States ("U.S."), and our common shares trade on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title operations. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . Business acquisition We acquired substantially all of the assets of JW Homes ("Wieland") in January 2016, for $ 430.5 million in cash and the assumption of certain payables related to such assets. The acquired net assets were located in Atlanta, Charleston, Charlotte, Nashville, and Raleigh, and included approximately 7,000 lots, including 375 homes in inventory, and control of approximately 1,300 lots through land option contracts. We also assumed a sales order backlog of 317 homes. The acquired net assets were recorded at their estimated fair values and resulted in goodwill of $40.4 million and separately identifiable intangible assets of $18.0 million comprised of the John Wieland Homes and Neighborhoods tradename, which is being amortized over a 20 -year life. The acquisition of these assets was not material to our results of operations or financial condition. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation, including the adoption in January 2016 of Accounting Standards Update ("ASU") 2015-03, “Interest - Imputation of Interest,” which changes the presentation of debt issuance costs in the balance sheet from an asset to a direct reduction of the carrying amount of the related debt. The adoption of this guidance resulted in the reclassification of applicable unamortized debt issuance costs from other assets to senior notes and term loan. See Note 4 . Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("the SEC"). Other expense (income), net Other expense (income), net consists of the following ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Write-off of deposits and pre-acquisition costs $ 2,541 $ 522 $ 12,996 $ 3,633 Lease exit and related costs (a) 4,644 275 10,589 497 Amortization of intangible assets 3,450 3,225 10,350 9,675 Interest income (887 ) (504 ) (2,659 ) (2,458 ) Interest expense 165 203 526 598 Equity in earnings of unconsolidated entities (485 ) (2,192 ) (4,489 ) (4,464 ) Miscellaneous, net (b) 14,189 19,804 15,089 16,157 $ 23,617 $ 21,333 $ 42,402 $ 23,638 (a) Lease exit and related costs for the three and nine months ended September 30, 2016, resulted from actions taken to reduce overheads and the substantial completion of our corporate headquarters relocation from Michigan to Georgia, which began in 2013. (b) Miscellaneous, net includes a charge of $15.0 million related to the settlement of a disputed land transaction for the three and nine months ended September 30, 2016 , and a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 8 ). Earnings per share Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares outstanding, adjusted for unvested shares (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our diluted earnings per share calculation excluded 2.3 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, for both the three and nine months ended September 30, 2016 , and 4.2 million and 4.4 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, for the three and nine months ended September 30, 2015 , respectively. In accordance with ASC 260 "Earnings Per Share", the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ 128,470 $ 107,769 $ 329,530 $ 266,062 Less: earnings distributed to participating securities (269 ) (181 ) (836 ) (554 ) Less: undistributed earnings allocated to participating securities (870 ) (516 ) (1,764 ) (1,169 ) Numerator for basic earnings per share $ 127,331 $ 107,072 $ 326,930 $ 264,339 Add back: undistributed earnings allocated to participating securities 870 516 1,764 1,169 Less: undistributed earnings reallocated to participating securities (865 ) (512 ) (1,751 ) (1,158 ) Numerator for diluted earnings per share $ 127,336 $ 107,076 $ 326,943 $ 264,350 Denominator: Basic shares outstanding 340,171 350,147 344,383 359,236 Effect of dilutive securities 2,250 3,225 2,557 3,273 Diluted shares outstanding 342,421 353,372 346,940 362,509 Earnings per share: Basic $ 0.37 $ 0.31 $ 0.95 $ 0.74 Diluted $ 0.37 $ 0.30 $ 0.94 $ 0.73 Residential mortgage loans available-for-sale Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days . At September 30, 2016 and December 31, 2015 , residential mortgage loans available-for-sale had an aggregate fair value of $349.0 million and $442.7 million , respectively, and an aggregate outstanding principal balance of $335.4 million and $429.6 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $(1.0) million and $1.1 million for the three months ended September 30, 2016 and 2015 , respectively, and $0.3 million and $0.3 million for the nine months ended September 30, 2016 and 2015 , respectively. These changes in fair value were substantially offset by changes in fair value of corresponding hedging instruments. Net gains from the sale of mortgages were $30.1 million and $23.4 million for the three months ended September 30, 2016 and 2015 , respectively, and $77.4 million and $57.2 million for the nine months ended September 30, 2016 and 2015 , respectively, and have been included in Financial Services revenues. Derivative instruments and hedging activities We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At September 30, 2016 and December 31, 2015 , we had aggregate IRLCs of $319.4 million and $208.2 million , respectively, which were originated at interest rates prevailing at the date of commitment. We hedge our exposure to interest rate market risk relating to residential mortgage loans available-for-sale and IRLCs using forward contracts on mortgage-backed securities, which are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price, and whole loan commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we execute an interest rate lock until the time the loan is sold to an investor. At September 30, 2016 and December 31, 2015 , we had unexpired forward contracts of $539.0 million and $525.0 million , respectively, and whole loan investor commitments of $92.5 million and $77.6 million , respectively. Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments and residential mortgage loans available-for-sale are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days. The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): September 30, 2016 December 31, 2015 Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities Interest rate lock commitments $ 11,140 $ 262 $ 5,854 $ 280 Forward contracts 159 2,457 1,178 840 Whole loan commitments 117 713 358 345 $ 11,416 $ 3,432 $ 7,390 $ 1,465 New accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers". 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. The FASB has also issued a number of updates to this standard. 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 ASU 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 us for annual and interim reporting periods beginning January 1, 2017 and is not expected to have a material impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 is effective for us for annual and interim periods beginning January 1, 2019, and early adoption is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact that the standard will have on our financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting. ASU 2016-09 will be effective for us for annual and interim periods beginning after January 1, 2017, with early adoption permitted. Amendments to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, and forfeitures will be applied using a modified retrospective transition method through a cumulative-effect adjustment to equity as of the beginning of the period of adoption. Amendments to the presentation of employee taxes on the statement of cash flows will be applied retrospectively, and amendments requiring the recognition of excess tax benefits and tax deficiencies in the income statement are to be applied prospectively. We are currently evaluating the impact that the standard will have on our financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology and also requires that credit losses from available-for-sale debt securities be presented as an allowance instead of a write-down. ASU 2016-13 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and requires full retrospective application on adoption. We are currently evaluating the impact the standard will have on our financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which addresses several specific cash flow issues. ASU 2016-15 is effective for us for annual and interim periods beginning January 1, 2018, with early adoption permitted, and requires full retrospective application on adoption. We do not expect ASU 2016-15 to have a material impact on our financial statements. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Major components of inventory were as follows ($000’s omitted): September 30, December 31, Homes under construction $ 2,259,830 $ 1,408,260 Land under development 3,946,132 3,259,066 Raw land 744,280 782,732 $ 6,950,242 $ 5,450,058 We capitalize interest cost into inventory during the active development and construction of our communities. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Information related to interest capitalized into inventory is as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Interest in inventory, beginning of period $ 167,488 $ 164,384 $ 149,498 $ 167,638 Interest capitalized 42,030 28,006 115,545 90,105 Interest expensed (32,857 ) (36,609 ) (88,382 ) (101,962 ) Interest in inventory, end of period $ 176,661 $ 155,781 $ 176,661 $ 155,781 Land option agreements We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. No VIEs required consolidation at either September 30, 2016 or December 31, 2015 because we determined that we were not the VIE's primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements. The following provides a summary of our interests in land option agreements as of September 30, 2016 and December 31, 2015 ($000’s omitted): September 30, 2016 December 31, 2015 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 69,279 $ 922,624 $ 77,641 $ 1,064,506 Other land options 104,408 1,242,821 84,478 981,687 $ 173,687 $ 2,165,445 $ 162,119 $ 2,046,193 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, 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 and operate generally in the same markets as the Homebuilding segments. Operating Data by Segment ($000’s omitted) Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenues: Northeast $ 155,226 $ 182,547 $ 426,397 $ 430,881 Southeast (a) 375,148 282,051 1,057,249 713,090 Florida 307,588 247,528 860,869 659,330 Midwest 342,709 256,676 819,250 662,817 Texas 261,693 203,319 730,456 566,307 West 452,521 295,659 1,154,226 790,592 1,894,885 1,467,780 5,048,447 3,823,017 Financial Services 48,020 38,967 126,950 97,319 Consolidated revenues $ 1,942,905 $ 1,506,747 $ 5,175,397 $ 3,920,336 Income before income taxes: Northeast (b) $ 6,056 $ 13,208 $ 34,884 $ 38,065 Southeast (a) 36,370 45,708 96,898 110,203 Florida 45,891 49,046 130,546 121,585 Midwest 36,792 25,270 68,665 41,080 Texas 38,878 26,035 103,618 73,313 West 55,347 36,633 130,683 100,154 Other homebuilding (c) (28,271 ) (30,989 ) (93,252 ) (71,104 ) 191,063 164,911 472,042 413,296 Financial Services 21,272 14,365 48,086 29,409 Consolidated income before income taxes $ 212,335 $ 179,276 $ 520,128 $ 442,705 (a) Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see Note 1 ). (b) Northeast includes a charge of $15.0 million related to the settlement of a disputed land transaction for the three and nine months ended September 30, 2016 , and a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 8 ). (c) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. For the three and nine months ended September 30, 2015 , Other homebuilding also includes a reserve reversal of $5.7 million and $32.6 million , respectively, resulting from a favorable legal settlement. Operating Data by Segment ($000's omitted) September 30, 2016 Homes Under Land Under Raw Land Total Total Northeast $ 234,959 $ 376,845 $ 104,426 $ 716,230 $ 818,569 Southeast (a) 407,586 574,702 195,619 1,177,907 1,267,731 Florida 346,839 678,518 129,639 1,154,996 1,293,934 Midwest 321,833 461,584 47,895 831,312 892,039 Texas 246,786 391,793 85,307 723,886 805,458 West 672,170 1,227,980 158,374 2,058,524 2,275,186 Other homebuilding (b) 29,657 234,710 23,020 287,387 2,103,325 2,259,830 3,946,132 744,280 6,950,242 9,456,242 Financial Services — — — — 415,290 $ 2,259,830 $ 3,946,132 $ 744,280 $ 6,950,242 $ 9,871,532 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 (b) 18,351 198,566 25,204 242,121 2,628,687 1,408,260 3,259,066 782,732 5,450,058 8,447,907 Financial Services — — — — 508,989 $ 1,408,260 $ 3,259,066 $ 782,732 $ 5,450,058 $ 8,956,896 (a) Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see Note 1 ). (b) 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. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior notes Our senior notes are summarized as follows ($000’s omitted): September 30, December 31, 6.500% unsecured senior notes due May 2016 (a) — 465,245 7.625% unsecured senior notes due October 2017 (b) 123,000 123,000 4.250% unsecured senior notes due March 2021 (a) 700,000 — 5.500% unsecured senior notes due March 2026 (a) 700,000 — 5.000% unsecured senior notes due January 2027 (a) 600,000 — 7.875% unsecured senior notes due June 2032 (a) 300,000 300,000 6.375% unsecured senior notes due May 2033 (a) 400,000 400,000 6.000% unsecured senior notes due February 2035 (a) 300,000 300,000 Net premiums, discounts, and issuance costs (c) (12,934 ) (12,163 ) Total senior notes $ 3,110,066 $ 1,576,082 Estimated fair value $ 3,270,878 $ 1,643,651 (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 carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. As discussed in Note 1 , we adopted ASU 2015-03 in January 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the 2016 presentation. As a result, $10.3 million of debt issuance costs at December 31, 2015 , were reclassified from other assets to a reduction in senior notes. In February 2016 , we issued $1.0 billion of senior unsecured notes, consisting of $300 million of 4.25% senior notes due March 1, 2021 , and $700 million of 5.50% senior notes due March 1, 2026 . The net proceeds from this senior notes issuance were used to fund the retirement of $465.2 million of our senior notes that matured in May 2016, with the remaining net proceeds used for general corporate purposes. In July 2016 , we issued an additional $1.0 billion of senior unsecured notes, consisting of an additional $400 million of the 4.25% senior notes due March 1, 2021 , and $600 million of 5.00% senior notes due January 15, 2027 . The net proceeds from the July senior notes issuance were used for general corporate purposes and to pay down approximately $500.0 million of outstanding debt, including the remainder of the previously existing term loan facility, which resulted in a write-off of $0.7 million of remaining debt issuance costs. The senior notes issued in 2016 are unsecured obligations, and rank equally in right of payment with the existing and future senior unsecured indebtedness of the Company and each of the guarantors, respectively. The notes are redeemable at our option at any time up to the date of maturity. Revolving credit facility In June 2016, we entered into an amended and restated senior unsecured revolving credit facility (the “Revolving Credit Facility”) that provided for an increase in our maximum borrowings from $500.0 million to $750.0 million and extended the maturity date from July 2017 to June 2019. The Revolving Credit Facility contains an uncommitted accordion feature that could increase the size of the Revolving Credit Facility to $1.25 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 the available borrowing capacity under the Revolving Credit Facility with a sublimit of $375.0 million at September 30, 2016 . The interest rate on borrowings under the Revolving Credit Facility may be based on either the London Interbank Offered Rate ("LIBOR") or a base rate plus an applicable margin, as defined. We had no borrowings outstanding and $245.7 million and $191.3 million of letters of credit issued under the Revolving Credit Facility at September 30, 2016 and December 31, 2015 , respectively. The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth, a minimum Interest Coverage Ratio, and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of September 30, 2016 , we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. Limited recourse notes payable Certain of our local homebuilding operations maintain limited recourse collateralized notes payable with third parties that totaled $20.5 million at September 30, 2016 and $35.3 million at December 31, 2015 . These notes have maturities ranging up to four years, are collateralized by the 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 August 2016 , Pulte Mortgage entered into an amended and restated Repurchase Agreement that extended the effective date to August 2017 , and adjusted the maximum aggregate commitment amount according to seasonal borrowing capacity needs. The maximum aggregate commitment is $175.0 million as of August 15, 2016, and increases to as high as $300.0 million during the seasonally high borrowing period from December 27, 2016 through January 12, 2017. At all other times, the maximum aggregate commitment ranges from $175.0 million to $200.0 million . The purpose of 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 $158.8 million and $267.9 million outstanding under the Repurchase Agreement at September 30, 2016 and December 31, 2015 , respectively, and was in compliance with all of its covenants and requirements as of such dates. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders’ equity | Shareholders’ equity During the nine months ended September 30, 2016 , we declared cash dividends totaling $93.1 million and repurchased 17.7 million shares under our repurchase authorization for a total of $347.7 million . During the nine months ended September 30, 2015 , we declared cash dividends totaling $86.3 million and repurchased 21.2 million shares under our repurchase authorization for a total of $433.7 million . In July 2016, our Board of Directors approved a $1.0 billion increase in our share repurchase authorization. At September 30, 2016 , we had remaining authorization to repurchase $1.3 billion of common shares. Under our share-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of shares, generally related to the payment of minimum tax obligations. During the nine months ended September 30, 2016 and 2015 , participants surrendered shares valued at $3.2 million and $9.0 million , respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Our effective tax rate for the three and nine months ended September 30, 2016 was 39.5% and 36.6% , respectively, compared to 39.9% for the same periods in 2015. Our effective tax rate for the current year differed from the federal statutory tax rate primarily due to state income taxes on current year earnings, the favorable resolution of certain state income tax matters, and adjustments to deferred tax assets due to changes in state tax laws. For the prior year, our effective tax rate differed from the federal statutory tax rate primarily due to state income taxes and adjustments to deferred taxes due to changes in state tax laws and business operations. At September 30, 2016 and December 31, 2015, we had deferred tax assets, net of deferred tax liabilities and valuation allowance, of $1.2 billion and $1.4 billion , respectively. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. At September 30, 2016 and December 31, 2015, we had $22.1 million and $39.0 million , respectively, of gross unrecognized tax benefits and $12.1 million and $17.2 million , respectively, of related accrued interest and penalties. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $18.0 million , excluding interest and penalties, primarily due to expirations of certain statutes of limitations and potential settlements. We are currently under examination by the IRS and various state taxing jurisdictions and anticipate finalizing certain examinations within the next twelve months. The final outcome of these examinations is not yet determinable. The statutes of limitation for our major tax jurisdictions generally remain open for examination for tax years 2005 to 2016 . |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Fair value disclosures ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy can be summarized as follows: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value September 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 349,012 $ 442,715 Interest rate lock commitments Level 2 10,878 5,574 Forward contracts Level 2 (2,298 ) 338 Whole loan commitments Level 2 (596 ) 13 Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ — $ 11,052 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 461,189 $ 775,435 Financial Services debt Level 2 158,794 267,877 Term loan Level 2 — 500,000 Senior notes Level 2 3,270,878 1,643,651 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 commitments are based on market prices for similar instruments from the specific whole loan investor. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. The carrying amounts of cash and equivalents, Financial Services debt, the Term Loan, and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. The carrying value of senior notes was $3.1 billion and $1.6 billion at September 30, 2016 and December 31, 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Loan origination liabilities Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. Determining the liabilities for anticipated losses requires a significant level of management judgment. Given the nature of these claims and the uncertainty regarding their ultimate resolution, actual costs could differ from our current estimates. Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Liabilities, beginning of period $ 35,945 $ 58,238 $ 46,381 $ 58,222 Reserves provided (released), net (138 ) 81 629 220 Payments (264 ) (23 ) (11,467 ) (146 ) Liabilities, end of period $ 35,543 $ 58,296 $ 35,543 $ 58,296 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 $245.7 million and $1.1 billion , respectively, at September 30, 2016 and $191.3 million and $1.0 billion , respectively, at December 31, 2015 . In the event any such letter of credit or surety bond is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be drawn. Our surety bonds generally do not have stated expiration dates; rather we are released from the surety bonds as the underlying contractual performance is completed. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed. Litigation and regulatory matters We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. During the three months ended September 30, 2016, we settled a contract dispute related to a land transaction that we terminated approximately ten years ago in response to a collapse in housing demand. As a result of the settlement, we recorded a charge of $15.0 million , which is reflected in other expense, net. 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 appealed the award. However, in light of the jury’s verdict, we recorded a reserve of $20.0 million in the three months ended September 30, 2015, which is reflected in other expense, net. Allowance for warranties Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to and in limited instances exceeding 10 years. We estimate the costs to be incurred under these warranties and record liabilities in the amount of such costs at the time product revenue is recognized. Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the cost per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Warranty liabilities, beginning of period $ 61,839 $ 54,502 $ 61,360 $ 65,389 Reserves provided 19,221 12,575 45,744 32,586 Payments (14,886 ) (14,316 ) (40,729 ) (45,793 ) Other adjustments (1,753 ) 1,773 (1,954 ) 2,352 Warranty liabilities, end of period $ 64,421 $ 54,534 $ 64,421 $ 54,534 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 generally requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omissions, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and 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 $702.5 million and $692.1 million at September 30, 2016 and December 31, 2015 , 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 64% and 65% of the total general liability reserves at September 30, 2016 and December 31, 2015 , 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 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 the three and nine months ended September 30, 2015 , we recorded a general liability reserve reversal of $5.7 million and $32.6 million , respectively, resulting from a legal settlement relating to plumbing claims initially reported to us in 2008 and for which our recorded liabilities were adjusted over time based on changes in facts and circumstances. These claims ultimately resulted in a class action lawsuit involving a national vendor and numerous other homebuilders, homebuyers, and insurance companies. In 2015 , a global settlement was reached, pursuant to which we funded our agreed upon share of settlement costs, which were significantly lower than our previously estimated exposure. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 707,306 $ 700,133 $ 692,053 $ 710,245 Reserves provided, net 20,234 14,021 65,302 20,467 Payments (24,993 ) (11,670 ) (54,808 ) (28,228 ) Balance, end of period $ 702,547 $ 702,484 $ 702,547 $ 702,484 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. Such receivables are recorded in other assets and totaled $136.9 million and $130.2 million at September 30, 2016 and December 31, 2015 , respectively. The insurance receivables relate to costs incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of construction defect claims that we believe are insured. 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. In addition, disputes between homebuilders and carriers over coverage positions relating to construction defect claims are common. Resolution of claims with carriers involves the exchange of significant amounts of information and frequently involves legal action. Currently, we are the plaintiff in litigation with certain of our insurance carriers in regard to $108.1 million of recorded insurance receivables relating to the applicability of coverage to such costs under their policies. We believe collection of these insurance receivables, including those in litigation, is probable based on the legal merits of our positions after review by legal counsel, favorable legal rulings received to date, the high credit ratings of our carriers, and our long history of collecting significant amounts of insurance reimbursements under similar insurance policies related to similar claims, including significant amounts funded by the above carriers under different policies. 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 | 9 Months Ended |
Sep. 30, 2016 | |
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. CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2016 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 373,539 $ 60,666 $ — $ 434,205 Restricted cash — 25,984 1,000 — 26,984 House and land inventory — 6,895,174 55,068 — 6,950,242 Land held for sale — 56,958 510 — 57,468 Residential mortgage loans available- — — 349,012 — 349,012 Investments in unconsolidated entities 103 46,679 4,986 — 51,768 Other assets 12,871 509,904 124,931 — 647,706 Intangible assets — 158,242 — — 158,242 Deferred tax assets, net 1,194,646 — 1,259 — 1,195,905 Investments in subsidiaries and 6,689,355 (565,940 ) 6,521,080 (12,644,495 ) — $ 7,896,975 $ 7,500,540 $ 7,118,512 $ (12,644,495 ) $ 9,871,532 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 81,315 $ 1,648,402 $ 167,361 $ — $ 1,897,078 Income tax liabilities 33,562 — — — 33,562 Financial Services debt — — 158,794 — 158,794 Term loan — — — — — Senior notes 3,110,066 — — — 3,110,066 Total liabilities 3,224,943 1,648,402 326,155 — 5,199,500 Total shareholders’ equity 4,672,032 5,852,138 6,792,357 (12,644,495 ) 4,672,032 $ 7,896,975 $ 7,500,540 $ 7,118,512 $ (12,644,495 ) $ 9,871,532 CONDENSED 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- — — 442,715 — 442,715 Investments in unconsolidated entities 93 36,499 4,675 — 41,267 Other assets 38,991 531,120 90,724 — 660,835 Intangible assets — 110,215 — — 110,215 Deferred tax assets, net 1,392,251 11 2,617 — 1,394,879 Investments in subsidiaries and 5,529,606 465,644 6,293,018 (12,288,268 ) — $ 6,960,941 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,956,896 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 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 498,423 — — — 498,423 Senior notes 1,576,082 — — — 1,576,082 Total liabilities 2,201,616 1,558,885 437,070 — 4,197,571 Total shareholders’ equity 4,759,325 5,773,996 6,514,272 (12,288,268 ) 4,759,325 $ 6,960,941 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,956,896 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,871,284 $ 10,434 $ — $ 1,881,718 Land sale revenues — 13,167 — — 13,167 — 1,884,451 10,434 — 1,894,885 Financial Services — — 48,020 — 48,020 — 1,884,451 58,454 — 1,942,905 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,474,377 11,234 — 1,485,611 Land sale cost of revenues — 11,428 — — 11,428 — 1,485,805 11,234 — 1,497,039 Financial Services expenses — 145 26,761 — 26,906 Selling, general, and administrative — 176,998 6,010 — 183,008 Other expense (income), net 823 26,166 (3,372 ) — 23,617 Intercompany interest 487 2,072 (2,559 ) — — Income (loss) before income taxes and (1,310 ) 193,265 20,380 — 212,335 Income tax expense (benefit) (498 ) 76,552 7,811 — 83,865 Income (loss) before equity in income (812 ) 116,713 12,569 — 128,470 Equity in income (loss) of subsidiaries 129,282 21,948 75,884 (227,114 ) — Net income (loss) 128,470 138,661 88,453 (227,114 ) 128,470 Other comprehensive income 20 — — — 20 Comprehensive income (loss) $ 128,490 $ 138,661 $ 88,453 $ (227,114 ) $ 128,490 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,464,131 $ — $ — $ 1,464,131 Land sale revenues — 3,649 — — 3,649 — 1,467,780 — — 1,467,780 Financial Services — — 38,967 — 38,967 — 1,467,780 38,967 — 1,506,747 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,118,874 — — 1,118,874 Land sale cost of revenues — 3,301 — — 3,301 — 1,122,175 — — 1,122,175 Financial Services expenses 13 (13 ) 24,602 — 24,602 Selling, general, and administrative — 158,975 386 — 159,361 Other expense (income), net 202 21,267 (136 ) — 21,333 Intercompany interest 594 2,039 (2,633 ) — — Income (loss) before income taxes and (809 ) 163,337 16,748 — 179,276 Income tax expense (benefit) (307 ) 65,347 6,467 — 71,507 Income (loss) before equity in income (502 ) 97,990 10,281 — 107,769 Equity in income (loss) of subsidiaries 108,271 9,913 82,484 (200,668 ) — Net income (loss) 107,769 107,903 92,765 (200,668 ) 107,769 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 107,790 $ 107,903 $ 92,765 $ (200,668 ) $ 107,790 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the nine months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,011,027 $ 16,816 $ — $ 5,027,843 Land sale revenues — 19,069 1,535 — 20,604 — 5,030,096 18,351 — 5,048,447 Financial Services — — 126,950 — 126,950 — 5,030,096 145,301 — 5,175,397 Homebuilding Cost of Revenues: Home sale cost of revenues — 3,930,546 18,903 — 3,949,449 Land sale cost of revenues — 16,577 1,282 — 17,859 — 3,947,123 20,185 — 3,967,308 Financial Services expenses — 405 78,799 — 79,204 Selling, general, and administrative — 549,094 17,261 — 566,355 Other expense (income), net 1,164 56,599 (15,361 ) — 42,402 Intercompany interest 1,487 6,290 (7,777 ) — — Income (loss) before income taxes and (2,651 ) 470,585 52,194 — 520,128 Income tax expense (benefit) (1,008 ) 171,535 20,071 — 190,598 Income (loss) before equity in income (1,643 ) 299,050 32,123 — 329,530 Equity in income (loss) of subsidiaries 331,173 31,827 261,777 (624,777 ) — Net income (loss) 329,530 330,877 293,900 (624,777 ) 329,530 Other comprehensive income 61 — — — 61 Comprehensive income (loss) $ 329,591 $ 330,877 $ 293,900 $ (624,777 ) $ 329,591 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,795,366 $ — $ — $ 3,795,366 Land sale revenues — 27,651 — — 27,651 — 3,823,017 — — 3,823,017 Financial Services — — 97,319 — 97,319 — 3,823,017 97,319 — 3,920,336 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,913,299 — — 2,913,299 Land sale cost of revenues — 21,992 — — 21,992 — 2,935,291 — — 2,935,291 Financial Services expenses 300 (274 ) 67,883 — 67,909 Selling, general, and administrative — 449,261 1,532 — 450,793 Other expense (income), net 572 23,702 (636 ) — 23,638 Intercompany interest 1,537 5,886 (7,423 ) — — Income (loss) before income taxes and (2,409 ) 409,151 35,963 — 442,705 Income tax expense (benefit) (917 ) 163,713 13,847 — 176,643 Income (loss) before equity in income (1,492 ) 245,438 22,116 — 266,062 Equity in income (loss) of subsidiaries 267,554 21,586 227,143 (516,283 ) — Net income (loss) 266,062 267,024 249,259 (516,283 ) 266,062 Other comprehensive income 63 — — — 63 Comprehensive income (loss) $ 266,125 $ 267,024 $ 249,259 $ (516,283 ) $ 266,125 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 159,366 $ (567,875 ) $ 96,293 $ — $ (312,216 ) Cash flows from investing activities: Capital expenditures — (28,243 ) (2,308 ) — (30,551 ) Cash used for business acquisitions — (430,458 ) — — (430,458 ) Other investing activities, net — (10,136 ) 1,560 — (8,576 ) Net cash provided by (used in) — (468,837 ) (748 ) — (469,585 ) Cash flows from financing activities: Proceeds from debt issuance 1,991,961 4,000 — — 1,995,961 Repayments of debt (965,245 ) (20,394 ) (95 ) — (985,734 ) Borrowings under revolving credit facility 619,000 — — — 619,000 Repayments under revolving credit facility (619,000 ) — — — (619,000 ) Financial Services borrowings (repayments) — — (109,083 ) — (109,083 ) Stock option exercises 5,845 — — — 5,845 Share repurchases (350,846 ) — — — (350,846 ) Dividends paid (94,298 ) — — — (94,298 ) Intercompany activities, net (746,783 ) 788,043 (41,260 ) — — Net cash provided by (used in) (159,366 ) 771,649 (150,438 ) — 461,845 Net increase (decrease) in cash and — (265,063 ) (54,893 ) — (319,956 ) Cash and equivalents at beginning of — 638,602 115,559 — 754,161 Cash and equivalents at end of period $ — $ 373,539 $ 60,666 $ — $ 434,205 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 164,558 $ (468,838 ) $ 59,381 $ — $ (244,899 ) Cash flows from investing activities: Capital expenditures — (31,197 ) (2,852 ) — (34,049 ) Other investing activities, net 3,710 785 9,174 — 13,669 Net cash provided by (used in) investing 3,710 (30,412 ) 6,322 — (20,380 ) Cash flows from financing activities: Proceeds from debt issuance 498,087 — — — 498,087 Repayments of debt (237,994 ) (526 ) — — (238,520 ) Financial Services borrowings (repayments) — — (32,733 ) — (32,733 ) Stock option exercises 10,371 — — — 10,371 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (87,897 ) — — — (87,897 ) Intercompany activities, net 84,449 30,693 (115,142 ) — — Net cash provided by (used in) (175,722 ) 30,167 (147,875 ) — (293,430 ) Net increase (decrease) in cash and (7,454 ) (469,083 ) (82,172 ) — (558,709 ) Cash and equivalents at beginning of 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of period $ — $ 688,224 $ 45,929 $ — $ 734,153 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation policy | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . |
Business acquisition | We acquired substantially all of the assets of JW Homes ("Wieland") in January 2016, for $ 430.5 million in cash and the assumption of certain payables related to such assets. The acquired net assets were located in Atlanta, Charleston, Charlotte, Nashville, and Raleigh, and included approximately 7,000 lots, including 375 homes in inventory, and control of approximately 1,300 lots through land option contracts. We also assumed a sales order backlog of 317 homes. The acquired net assets were recorded at their estimated fair values and resulted in goodwill of $40.4 million and separately identifiable intangible assets of $18.0 million comprised of the John Wieland Homes and Neighborhoods tradename, which is being amortized over a 20 -year life. The acquisition of these assets was not material to our results of operations or financial condition. |
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current year presentation, including the adoption in January 2016 of Accounting Standards Update ("ASU") 2015-03, “Interest - Imputation of Interest,” which changes the presentation of debt issuance costs in the balance sheet from an asset to a direct reduction of the carrying amount of the related debt. The adoption of this guidance resulted in the reclassification of applicable unamortized debt issuance costs from other assets to senior notes and term loan. See Note 4 . |
Subsequent events | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("the SEC"). |
Earnings per share | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares outstanding, adjusted for unvested shares (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. Our diluted earnings per share calculation excluded 2.3 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, for both the three and nine months ended September 30, 2016 , and 4.2 million and 4.4 million potentially dilutive instruments, including stock options, unvested restricted shares, and unvested restricted share units, for the three and nine months ended September 30, 2015 , respectively. In accordance with ASC 260 "Earnings Per Share", the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. |
Residential mortgage loans available-for-sale | Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days . At September 30, 2016 and December 31, 2015 , residential mortgage loans available-for-sale had an aggregate fair value of $349.0 million and $442.7 million , respectively, and an aggregate outstanding principal balance of $335.4 million and $429.6 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $(1.0) million and $1.1 million for the three months ended September 30, 2016 and 2015 , respectively, and $0.3 million and $0.3 million for the nine months ended September 30, 2016 and 2015 , respectively. These changes in fair value were substantially offset by changes in fair value of corresponding hedging instruments. Net gains from the sale of mortgages were $30.1 million and $23.4 million for the three months ended September 30, 2016 and 2015 , respectively, and $77.4 million and $57.2 million for the nine months ended September 30, 2016 and 2015 , respectively, and have been included in Financial Services revenues. |
Derivative instruments and hedging activities | We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At September 30, 2016 and December 31, 2015 , we had aggregate IRLCs of $319.4 million and $208.2 million , respectively, which were originated at interest rates prevailing at the date of commitment. We hedge our exposure to interest rate market risk relating to residential mortgage loans available-for-sale and IRLCs using forward contracts on mortgage-backed securities, which are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price, and whole loan commitments, which are obligations of the investor to buy loans at a specified price within a specified time period. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we execute an interest rate lock until the time the loan is sold to an investor. At September 30, 2016 and December 31, 2015 , we had unexpired forward contracts of $539.0 million and $525.0 million , respectively, and whole loan investor commitments of $92.5 million and $77.6 million , respectively. Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on interest rate lock commitments and residential mortgage loans available-for-sale are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days. |
New accounting pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers". 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. The FASB has also issued a number of updates to this standard. 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 ASU 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 us for annual and interim reporting periods beginning January 1, 2017 and is not expected to have a material impact on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 is effective for us for annual and interim periods beginning January 1, 2019, and early adoption is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact that the standard will have on our financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting. ASU 2016-09 will be effective for us for annual and interim periods beginning after January 1, 2017, with early adoption permitted. Amendments to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, and forfeitures will be applied using a modified retrospective transition method through a cumulative-effect adjustment to equity as of the beginning of the period of adoption. Amendments to the presentation of employee taxes on the statement of cash flows will be applied retrospectively, and amendments requiring the recognition of excess tax benefits and tax deficiencies in the income statement are to be applied prospectively. We are currently evaluating the impact that the standard will have on our financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology and also requires that credit losses from available-for-sale debt securities be presented as an allowance instead of a write-down. ASU 2016-13 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and requires full retrospective application on adoption. We are currently evaluating the impact the standard will have on our financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which addresses several specific cash flow issues. ASU 2016-15 is effective for us for annual and interim periods beginning January 1, 2018, with early adoption permitted, and requires full retrospective application on adoption. We do not expect ASU 2016-15 to have a material impact on our financial statements. |
Inventory interest capitalization | We capitalize interest cost into inventory during the active development and construction of our communities. 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 | 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 commitments are based on market prices for similar instruments from the specific whole loan investor. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. The carrying amounts of cash and equivalents, Financial Services debt, the Term Loan, and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. |
Legal reserves | We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. During the three months ended September 30, 2016, we settled a contract dispute related to a land transaction that we terminated approximately ten years ago in response to a collapse in housing demand. As a result of the settlement, we recorded a charge of $15.0 million , which is reflected in other expense, net. |
Allowance for warranties | 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 and in limited instances exceeding 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense (income), net consists of the following ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Write-off of deposits and pre-acquisition costs $ 2,541 $ 522 $ 12,996 $ 3,633 Lease exit and related costs (a) 4,644 275 10,589 497 Amortization of intangible assets 3,450 3,225 10,350 9,675 Interest income (887 ) (504 ) (2,659 ) (2,458 ) Interest expense 165 203 526 598 Equity in earnings of unconsolidated entities (485 ) (2,192 ) (4,489 ) (4,464 ) Miscellaneous, net (b) 14,189 19,804 15,089 16,157 $ 23,617 $ 21,333 $ 42,402 $ 23,638 (a) Lease exit and related costs for the three and nine months ended September 30, 2016, resulted from actions taken to reduce overheads and the substantial completion of our corporate headquarters relocation from Michigan to Georgia, which began in 2013. (b) Miscellaneous, net includes a charge of $15.0 million related to the settlement of a disputed land transaction for the three and nine months ended September 30, 2016 , and a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 8 ). |
Schedule of Earnings Per Share | The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ 128,470 $ 107,769 $ 329,530 $ 266,062 Less: earnings distributed to participating securities (269 ) (181 ) (836 ) (554 ) Less: undistributed earnings allocated to participating securities (870 ) (516 ) (1,764 ) (1,169 ) Numerator for basic earnings per share $ 127,331 $ 107,072 $ 326,930 $ 264,339 Add back: undistributed earnings allocated to participating securities 870 516 1,764 1,169 Less: undistributed earnings reallocated to participating securities (865 ) (512 ) (1,751 ) (1,158 ) Numerator for diluted earnings per share $ 127,336 $ 107,076 $ 326,943 $ 264,350 Denominator: Basic shares outstanding 340,171 350,147 344,383 359,236 Effect of dilutive securities 2,250 3,225 2,557 3,273 Diluted shares outstanding 342,421 353,372 346,940 362,509 Earnings per share: Basic $ 0.37 $ 0.31 $ 0.95 $ 0.74 Diluted $ 0.37 $ 0.30 $ 0.94 $ 0.73 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): September 30, 2016 December 31, 2015 Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities Interest rate lock commitments $ 11,140 $ 262 $ 5,854 $ 280 Forward contracts 159 2,457 1,178 840 Whole loan commitments 117 713 358 345 $ 11,416 $ 3,432 $ 7,390 $ 1,465 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory were as follows ($000’s omitted): September 30, December 31, Homes under construction $ 2,259,830 $ 1,408,260 Land under development 3,946,132 3,259,066 Raw land 744,280 782,732 $ 6,950,242 $ 5,450,058 |
Capitalized Interest Rollforward | Information related to interest capitalized into inventory is as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Interest in inventory, beginning of period $ 167,488 $ 164,384 $ 149,498 $ 167,638 Interest capitalized 42,030 28,006 115,545 90,105 Interest expensed (32,857 ) (36,609 ) (88,382 ) (101,962 ) Interest in inventory, end of period $ 176,661 $ 155,781 $ 176,661 $ 155,781 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements as of September 30, 2016 and December 31, 2015 ($000’s omitted): September 30, 2016 December 31, 2015 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 69,279 $ 922,624 $ 77,641 $ 1,064,506 Other land options 104,408 1,242,821 84,478 981,687 $ 173,687 $ 2,165,445 $ 162,119 $ 2,046,193 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Components of Reportable Segments | For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, 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 |
Operating Data By Reporting Segment | Operating Data by Segment ($000’s omitted) Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenues: Northeast $ 155,226 $ 182,547 $ 426,397 $ 430,881 Southeast (a) 375,148 282,051 1,057,249 713,090 Florida 307,588 247,528 860,869 659,330 Midwest 342,709 256,676 819,250 662,817 Texas 261,693 203,319 730,456 566,307 West 452,521 295,659 1,154,226 790,592 1,894,885 1,467,780 5,048,447 3,823,017 Financial Services 48,020 38,967 126,950 97,319 Consolidated revenues $ 1,942,905 $ 1,506,747 $ 5,175,397 $ 3,920,336 Income before income taxes: Northeast (b) $ 6,056 $ 13,208 $ 34,884 $ 38,065 Southeast (a) 36,370 45,708 96,898 110,203 Florida 45,891 49,046 130,546 121,585 Midwest 36,792 25,270 68,665 41,080 Texas 38,878 26,035 103,618 73,313 West 55,347 36,633 130,683 100,154 Other homebuilding (c) (28,271 ) (30,989 ) (93,252 ) (71,104 ) 191,063 164,911 472,042 413,296 Financial Services 21,272 14,365 48,086 29,409 Consolidated income before income taxes $ 212,335 $ 179,276 $ 520,128 $ 442,705 (a) Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see Note 1 ). (b) Northeast includes a charge of $15.0 million related to the settlement of a disputed land transaction for the three and nine months ended September 30, 2016 , and a charge of $20.0 million resulting from the Applecross matter for the three and nine months ended September 30, 2015 (see Note 8 ). (c) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. For the three and nine months ended September 30, 2015 , Other homebuilding also includes a reserve reversal of $5.7 million and $32.6 million , respectively, resulting from a favorable legal settlement. |
Total Assets And Inventory By Reporting Segment | Operating Data by Segment ($000's omitted) September 30, 2016 Homes Under Land Under Raw Land Total Total Northeast $ 234,959 $ 376,845 $ 104,426 $ 716,230 $ 818,569 Southeast (a) 407,586 574,702 195,619 1,177,907 1,267,731 Florida 346,839 678,518 129,639 1,154,996 1,293,934 Midwest 321,833 461,584 47,895 831,312 892,039 Texas 246,786 391,793 85,307 723,886 805,458 West 672,170 1,227,980 158,374 2,058,524 2,275,186 Other homebuilding (b) 29,657 234,710 23,020 287,387 2,103,325 2,259,830 3,946,132 744,280 6,950,242 9,456,242 Financial Services — — — — 415,290 $ 2,259,830 $ 3,946,132 $ 744,280 $ 6,950,242 $ 9,871,532 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 (b) 18,351 198,566 25,204 242,121 2,628,687 1,408,260 3,259,066 782,732 5,450,058 8,447,907 Financial Services — — — — 508,989 $ 1,408,260 $ 3,259,066 $ 782,732 $ 5,450,058 $ 8,956,896 (a) Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see Note 1 ). (b) 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. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our senior notes are summarized as follows ($000’s omitted): September 30, December 31, 6.500% unsecured senior notes due May 2016 (a) — 465,245 7.625% unsecured senior notes due October 2017 (b) 123,000 123,000 4.250% unsecured senior notes due March 2021 (a) 700,000 — 5.500% unsecured senior notes due March 2026 (a) 700,000 — 5.000% unsecured senior notes due January 2027 (a) 600,000 — 7.875% unsecured senior notes due June 2032 (a) 300,000 300,000 6.375% unsecured senior notes due May 2033 (a) 400,000 400,000 6.000% unsecured senior notes due February 2035 (a) 300,000 300,000 Net premiums, discounts, and issuance costs (c) (12,934 ) (12,163 ) Total senior notes $ 3,110,066 $ 1,576,082 Estimated fair value $ 3,270,878 $ 1,643,651 (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 carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. As discussed in Note 1 , we adopted ASU 2015-03 in January 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the 2016 presentation. As a result, $10.3 million of debt issuance costs at December 31, 2015 , were reclassified from other assets to a reduction in senior notes. |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value September 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 349,012 $ 442,715 Interest rate lock commitments Level 2 10,878 5,574 Forward contracts Level 2 (2,298 ) 338 Whole loan commitments Level 2 (596 ) 13 Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ — $ 11,052 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 461,189 $ 775,435 Financial Services debt Level 2 158,794 267,877 Term loan Level 2 — 500,000 Senior notes Level 2 3,270,878 1,643,651 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Loan Origination Liability | Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Liabilities, beginning of period $ 35,945 $ 58,238 $ 46,381 $ 58,222 Reserves provided (released), net (138 ) 81 629 220 Payments (264 ) (23 ) (11,467 ) (146 ) Liabilities, end of period $ 35,543 $ 58,296 $ 35,543 $ 58,296 |
Summary of Changes in Warranty Liability | Changes to warranty liabilities were as follows ($000’s omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Warranty liabilities, beginning of period $ 61,839 $ 54,502 $ 61,360 $ 65,389 Reserves provided 19,221 12,575 45,744 32,586 Payments (14,886 ) (14,316 ) (40,729 ) (45,793 ) Other adjustments (1,753 ) 1,773 (1,954 ) 2,352 Warranty liabilities, end of period $ 64,421 $ 54,534 $ 64,421 $ 54,534 |
Summary of Changes in Self-Insurance Liability | Changes in these liabilities were as follows ($000's omitted): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance, beginning of period $ 707,306 $ 700,133 $ 692,053 $ 710,245 Reserves provided, net 20,234 14,021 65,302 20,467 Payments (24,993 ) (11,670 ) (54,808 ) (28,228 ) Balance, end of period $ 702,547 $ 702,484 $ 702,547 $ 702,484 |
Supplemental Guarantor Inform23
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2016 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 373,539 $ 60,666 $ — $ 434,205 Restricted cash — 25,984 1,000 — 26,984 House and land inventory — 6,895,174 55,068 — 6,950,242 Land held for sale — 56,958 510 — 57,468 Residential mortgage loans available- — — 349,012 — 349,012 Investments in unconsolidated entities 103 46,679 4,986 — 51,768 Other assets 12,871 509,904 124,931 — 647,706 Intangible assets — 158,242 — — 158,242 Deferred tax assets, net 1,194,646 — 1,259 — 1,195,905 Investments in subsidiaries and 6,689,355 (565,940 ) 6,521,080 (12,644,495 ) — $ 7,896,975 $ 7,500,540 $ 7,118,512 $ (12,644,495 ) $ 9,871,532 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 81,315 $ 1,648,402 $ 167,361 $ — $ 1,897,078 Income tax liabilities 33,562 — — — 33,562 Financial Services debt — — 158,794 — 158,794 Term loan — — — — — Senior notes 3,110,066 — — — 3,110,066 Total liabilities 3,224,943 1,648,402 326,155 — 5,199,500 Total shareholders’ equity 4,672,032 5,852,138 6,792,357 (12,644,495 ) 4,672,032 $ 7,896,975 $ 7,500,540 $ 7,118,512 $ (12,644,495 ) $ 9,871,532 CONDENSED 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- — — 442,715 — 442,715 Investments in unconsolidated entities 93 36,499 4,675 — 41,267 Other assets 38,991 531,120 90,724 — 660,835 Intangible assets — 110,215 — — 110,215 Deferred tax assets, net 1,392,251 11 2,617 — 1,394,879 Investments in subsidiaries and 5,529,606 465,644 6,293,018 (12,288,268 ) — $ 6,960,941 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,956,896 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 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 498,423 — — — 498,423 Senior notes 1,576,082 — — — 1,576,082 Total liabilities 2,201,616 1,558,885 437,070 — 4,197,571 Total shareholders’ equity 4,759,325 5,773,996 6,514,272 (12,288,268 ) 4,759,325 $ 6,960,941 $ 7,332,881 $ 6,951,342 $ (12,288,268 ) $ 8,956,896 |
Consolidating Statement of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,871,284 $ 10,434 $ — $ 1,881,718 Land sale revenues — 13,167 — — 13,167 — 1,884,451 10,434 — 1,894,885 Financial Services — — 48,020 — 48,020 — 1,884,451 58,454 — 1,942,905 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,474,377 11,234 — 1,485,611 Land sale cost of revenues — 11,428 — — 11,428 — 1,485,805 11,234 — 1,497,039 Financial Services expenses — 145 26,761 — 26,906 Selling, general, and administrative — 176,998 6,010 — 183,008 Other expense (income), net 823 26,166 (3,372 ) — 23,617 Intercompany interest 487 2,072 (2,559 ) — — Income (loss) before income taxes and (1,310 ) 193,265 20,380 — 212,335 Income tax expense (benefit) (498 ) 76,552 7,811 — 83,865 Income (loss) before equity in income (812 ) 116,713 12,569 — 128,470 Equity in income (loss) of subsidiaries 129,282 21,948 75,884 (227,114 ) — Net income (loss) 128,470 138,661 88,453 (227,114 ) 128,470 Other comprehensive income 20 — — — 20 Comprehensive income (loss) $ 128,490 $ 138,661 $ 88,453 $ (227,114 ) $ 128,490 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,464,131 $ — $ — $ 1,464,131 Land sale revenues — 3,649 — — 3,649 — 1,467,780 — — 1,467,780 Financial Services — — 38,967 — 38,967 — 1,467,780 38,967 — 1,506,747 Homebuilding Cost of Revenues: Home sale cost of revenues — 1,118,874 — — 1,118,874 Land sale cost of revenues — 3,301 — — 3,301 — 1,122,175 — — 1,122,175 Financial Services expenses 13 (13 ) 24,602 — 24,602 Selling, general, and administrative — 158,975 386 — 159,361 Other expense (income), net 202 21,267 (136 ) — 21,333 Intercompany interest 594 2,039 (2,633 ) — — Income (loss) before income taxes and (809 ) 163,337 16,748 — 179,276 Income tax expense (benefit) (307 ) 65,347 6,467 — 71,507 Income (loss) before equity in income (502 ) 97,990 10,281 — 107,769 Equity in income (loss) of subsidiaries 108,271 9,913 82,484 (200,668 ) — Net income (loss) 107,769 107,903 92,765 (200,668 ) 107,769 Other comprehensive income 21 — — — 21 Comprehensive income (loss) $ 107,790 $ 107,903 $ 92,765 $ (200,668 ) $ 107,790 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the nine months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 5,011,027 $ 16,816 $ — $ 5,027,843 Land sale revenues — 19,069 1,535 — 20,604 — 5,030,096 18,351 — 5,048,447 Financial Services — — 126,950 — 126,950 — 5,030,096 145,301 — 5,175,397 Homebuilding Cost of Revenues: Home sale cost of revenues — 3,930,546 18,903 — 3,949,449 Land sale cost of revenues — 16,577 1,282 — 17,859 — 3,947,123 20,185 — 3,967,308 Financial Services expenses — 405 78,799 — 79,204 Selling, general, and administrative — 549,094 17,261 — 566,355 Other expense (income), net 1,164 56,599 (15,361 ) — 42,402 Intercompany interest 1,487 6,290 (7,777 ) — — Income (loss) before income taxes and (2,651 ) 470,585 52,194 — 520,128 Income tax expense (benefit) (1,008 ) 171,535 20,071 — 190,598 Income (loss) before equity in income (1,643 ) 299,050 32,123 — 329,530 Equity in income (loss) of subsidiaries 331,173 31,827 261,777 (624,777 ) — Net income (loss) 329,530 330,877 293,900 (624,777 ) 329,530 Other comprehensive income 61 — — — 61 Comprehensive income (loss) $ 329,591 $ 330,877 $ 293,900 $ (624,777 ) $ 329,591 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,795,366 $ — $ — $ 3,795,366 Land sale revenues — 27,651 — — 27,651 — 3,823,017 — — 3,823,017 Financial Services — — 97,319 — 97,319 — 3,823,017 97,319 — 3,920,336 Homebuilding Cost of Revenues: Home sale cost of revenues — 2,913,299 — — 2,913,299 Land sale cost of revenues — 21,992 — — 21,992 — 2,935,291 — — 2,935,291 Financial Services expenses 300 (274 ) 67,883 — 67,909 Selling, general, and administrative — 449,261 1,532 — 450,793 Other expense (income), net 572 23,702 (636 ) — 23,638 Intercompany interest 1,537 5,886 (7,423 ) — — Income (loss) before income taxes and (2,409 ) 409,151 35,963 — 442,705 Income tax expense (benefit) (917 ) 163,713 13,847 — 176,643 Income (loss) before equity in income (1,492 ) 245,438 22,116 — 266,062 Equity in income (loss) of subsidiaries 267,554 21,586 227,143 (516,283 ) — Net income (loss) 266,062 267,024 249,259 (516,283 ) 266,062 Other comprehensive income 63 — — — 63 Comprehensive income (loss) $ 266,125 $ 267,024 $ 249,259 $ (516,283 ) $ 266,125 |
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 159,366 $ (567,875 ) $ 96,293 $ — $ (312,216 ) Cash flows from investing activities: Capital expenditures — (28,243 ) (2,308 ) — (30,551 ) Cash used for business acquisitions — (430,458 ) — — (430,458 ) Other investing activities, net — (10,136 ) 1,560 — (8,576 ) Net cash provided by (used in) — (468,837 ) (748 ) — (469,585 ) Cash flows from financing activities: Proceeds from debt issuance 1,991,961 4,000 — — 1,995,961 Repayments of debt (965,245 ) (20,394 ) (95 ) — (985,734 ) Borrowings under revolving credit facility 619,000 — — — 619,000 Repayments under revolving credit facility (619,000 ) — — — (619,000 ) Financial Services borrowings (repayments) — — (109,083 ) — (109,083 ) Stock option exercises 5,845 — — — 5,845 Share repurchases (350,846 ) — — — (350,846 ) Dividends paid (94,298 ) — — — (94,298 ) Intercompany activities, net (746,783 ) 788,043 (41,260 ) — — Net cash provided by (used in) (159,366 ) 771,649 (150,438 ) — 461,845 Net increase (decrease) in cash and — (265,063 ) (54,893 ) — (319,956 ) Cash and equivalents at beginning of — 638,602 115,559 — 754,161 Cash and equivalents at end of period $ — $ 373,539 $ 60,666 $ — $ 434,205 CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2015 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 164,558 $ (468,838 ) $ 59,381 $ — $ (244,899 ) Cash flows from investing activities: Capital expenditures — (31,197 ) (2,852 ) — (34,049 ) Other investing activities, net 3,710 785 9,174 — 13,669 Net cash provided by (used in) investing 3,710 (30,412 ) 6,322 — (20,380 ) Cash flows from financing activities: Proceeds from debt issuance 498,087 — — — 498,087 Repayments of debt (237,994 ) (526 ) — — (238,520 ) Financial Services borrowings (repayments) — — (32,733 ) — (32,733 ) Stock option exercises 10,371 — — — 10,371 Share repurchases (442,738 ) — — — (442,738 ) Dividends paid (87,897 ) — — — (87,897 ) Intercompany activities, net 84,449 30,693 (115,142 ) — — Net cash provided by (used in) (175,722 ) 30,167 (147,875 ) — (293,430 ) Net increase (decrease) in cash and (7,454 ) (469,083 ) (82,172 ) — (558,709 ) Cash and equivalents at beginning of 7,454 1,157,307 128,101 — 1,292,862 Cash and equivalents at end of period $ — $ 688,224 $ 45,929 $ — $ 734,153 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2016USD ($)homelot | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Cash paid to acquire business | $ 430,458 | $ 0 | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | shares | 2.3 | 4.2 | 2.3 | 4.4 | ||
Residential mortgage loans available-for-sale fair value | $ 349,012 | $ 349,012 | $ 442,715 | |||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 335,400 | 335,400 | 429,600 | |||
Net gain (loss) from change in fair value | (1,000) | $ 1,100 | 300 | $ 300 | ||
Net gains from the sale of mortgages | 30,100 | $ 23,400 | $ 77,400 | $ 57,200 | ||
Variability in future cash flows of derivative instruments in days | 60 days | |||||
Interest rate lock commitments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | 319,400 | $ 319,400 | 208,200 | |||
Forward contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | 539,000 | 539,000 | 525,000 | |||
Whole loan commitments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | $ 92,500 | $ 92,500 | $ 77,600 | |||
JW Homes (Wieland) | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cash paid to acquire business | $ 430,500 | |||||
Number of units in real estate property | lot | 7,000 | |||||
Goodwill | $ 40,400 | |||||
In Inventory | JW Homes (Wieland) | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of units in real estate property | home | 375 | |||||
Land Option Contracts | JW Homes (Wieland) | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of units in real estate property | lot | 1,300 | |||||
Sales Order Backlog | JW Homes (Wieland) | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of units in real estate property | home | 317 | |||||
Trade Names | JW Homes (Wieland) | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 18,000 | |||||
Remaining amortization period | 20 years |
Basis of Presentation (Other Ex
Basis of Presentation (Other Expense (Income), Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Write-off of deposits and pre-acquisition costs | $ 2,541 | $ 522 | $ 12,996 | $ 3,633 |
Lease exit and related costs | 4,644 | 275 | 10,589 | 497 |
Amortization of intangible assets | 3,450 | 3,225 | 10,350 | 9,675 |
Interest income | (887) | (504) | (2,659) | (2,458) |
Interest expense | 165 | 203 | 526 | 598 |
Equity in earnings of unconsolidated entities | (485) | (2,192) | (4,489) | (4,464) |
Miscellaneous, net | 14,189 | 19,804 | 15,089 | 16,157 |
Other expense (income), net | (23,617) | (21,333) | (42,402) | (23,638) |
Litigation settlement expense | $ 15,000 | $ 20,000 | $ 15,000 | $ 20,000 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Earnings per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income | $ 128,470 | $ 107,769 | $ 329,530 | $ 266,062 |
Less: earnings distributed to participating securities | (269) | (181) | (836) | (554) |
Less: undistributed earnings allocated to participating securities | (870) | (516) | (1,764) | (1,169) |
Numerator for basic earnings per share | 127,331 | 107,072 | 326,930 | 264,339 |
Add back: undistributed earnings allocated to participating securities | 870 | 516 | 1,764 | 1,169 |
Less: undistributed earnings reallocated to participating securities | (865) | (512) | (1,751) | (1,158) |
Numerator for diluted earnings per share | $ 127,336 | $ 107,076 | $ 326,943 | $ 264,350 |
Denominator: | ||||
Basic shares outstanding (shares) | 340,171 | 350,147 | 344,383 | 359,236 |
Effect of dilutive securities (shares) | 2,250 | 3,225 | 2,557 | 3,273 |
Diluted shares outstanding (shares) | 342,421 | 353,372 | 346,940 | 362,509 |
Earnings per share: | ||||
Basic earnings (usd per share) | $ 0.37 | $ 0.31 | $ 0.95 | $ 0.74 |
Diluted earnings (usd per share) | $ 0.37 | $ 0.30 | $ 0.94 | $ 0.73 |
Basis of Presentation (Fair Val
Basis of Presentation (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 11,416 | $ 7,390 |
Accrued and Other Liabilities | 3,432 | 1,465 |
Interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 11,140 | 5,854 |
Accrued and Other Liabilities | 262 | 280 |
Forward contracts | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 159 | 1,178 |
Accrued and Other Liabilities | 2,457 | 840 |
Whole loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 117 | 358 |
Accrued and Other Liabilities | $ 713 | $ 345 |
Inventory (Major Components Of
Inventory (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Homes under construction | $ 2,259,830 | $ 1,408,260 |
Land under development | 3,946,132 | 3,259,066 |
Raw land | 744,280 | 782,732 |
Total Inventory | $ 6,950,242 | $ 5,450,058 |
Inventory (Information Related
Inventory (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest in inventory, beginning of period | $ 167,488 | $ 164,384 | $ 149,498 | $ 167,638 |
Interest capitalized | 42,030 | 28,006 | 115,545 | 90,105 |
Interest expensed | (32,857) | (36,609) | (88,382) | (101,962) |
Interest in inventory, end of period | $ 176,661 | $ 155,781 | $ 176,661 | $ 155,781 |
Inventory (Summary of Interests
Inventory (Summary of Interests in Land Option Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 173,687 | $ 162,119 |
Remaining Purchase Price | 2,165,445 | 2,046,193 |
Land options with VIEs | ||
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | 69,279 | 77,641 |
Remaining Purchase Price | 922,624 | 1,064,506 |
Other Land Option Agreements Member | ||
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | 104,408 | 84,478 |
Remaining Purchase Price | $ 1,242,821 | $ 981,687 |
Segment Information Narrative (
Segment Information Narrative (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Homebuilding | $ 1,894,885 | $ 1,467,780 | $ 5,048,447 | $ 3,823,017 |
Financial Services | 48,020 | 38,967 | 126,950 | 97,319 |
Consolidated revenues | 1,942,905 | 1,506,747 | 5,175,397 | 3,920,336 |
Income before Income Taxes: | ||||
Income before income taxes | 212,335 | 179,276 | 520,128 | 442,705 |
Litigation settlement expense | 15,000 | 20,000 | 15,000 | 20,000 |
Gain (loss) related to litigation settlement | 5,700 | 32,600 | ||
Northeast | ||||
Revenues: | ||||
Homebuilding | 155,226 | 182,547 | 426,397 | 430,881 |
Income before Income Taxes: | ||||
Income before income taxes | 6,056 | 13,208 | 34,884 | 38,065 |
Southeast | ||||
Revenues: | ||||
Homebuilding | 375,148 | 282,051 | 1,057,249 | 713,090 |
Income before Income Taxes: | ||||
Income before income taxes | 36,370 | 45,708 | 96,898 | 110,203 |
Florida | ||||
Revenues: | ||||
Homebuilding | 307,588 | 247,528 | 860,869 | 659,330 |
Income before Income Taxes: | ||||
Income before income taxes | 45,891 | 49,046 | 130,546 | 121,585 |
Midwest | ||||
Revenues: | ||||
Homebuilding | 342,709 | 256,676 | 819,250 | 662,817 |
Income before Income Taxes: | ||||
Income before income taxes | 36,792 | 25,270 | 68,665 | 41,080 |
Texas | ||||
Revenues: | ||||
Homebuilding | 261,693 | 203,319 | 730,456 | 566,307 |
Income before Income Taxes: | ||||
Income before income taxes | 38,878 | 26,035 | 103,618 | 73,313 |
West | ||||
Revenues: | ||||
Homebuilding | 452,521 | 295,659 | 1,154,226 | 790,592 |
Income before Income Taxes: | ||||
Income before income taxes | 55,347 | 36,633 | 130,683 | 100,154 |
Other homebuilding | ||||
Income before Income Taxes: | ||||
Income before income taxes | (28,271) | (30,989) | (93,252) | (71,104) |
Homebuilding | ||||
Income before Income Taxes: | ||||
Income before income taxes | 191,063 | 164,911 | 472,042 | 413,296 |
Financial Services | ||||
Income before Income Taxes: | ||||
Income before income taxes | $ 21,272 | $ 14,365 | $ 48,086 | $ 29,409 |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information | ||
Homes under construction | $ 2,259,830 | $ 1,408,260 |
Land under development | 3,946,132 | 3,259,066 |
Raw land | 744,280 | 782,732 |
Total Inventory | 6,950,242 | 5,450,058 |
Total Assets | 9,871,532 | 8,956,896 |
Northeast | ||
Segment Reporting Information | ||
Homes under construction | 234,959 | 163,173 |
Land under development | 376,845 | 292,631 |
Raw land | 104,426 | 121,522 |
Total Inventory | 716,230 | 577,326 |
Total Assets | 818,569 | 688,610 |
Southeast | ||
Segment Reporting Information | ||
Homes under construction | 407,586 | 196,456 |
Land under development | 574,702 | 367,577 |
Raw land | 195,619 | 139,246 |
Total Inventory | 1,177,907 | 703,279 |
Total Assets | 1,267,731 | 765,933 |
Florida | ||
Segment Reporting Information | ||
Homes under construction | 346,839 | 227,910 |
Land under development | 678,518 | 574,092 |
Raw land | 129,639 | 97,185 |
Total Inventory | 1,154,996 | 899,187 |
Total Assets | 1,293,934 | 1,013,543 |
Midwest | ||
Segment Reporting Information | ||
Homes under construction | 321,833 | 197,738 |
Land under development | 461,584 | 414,386 |
Raw land | 47,895 | 68,918 |
Total Inventory | 831,312 | 681,042 |
Total Assets | 892,039 | 734,834 |
Texas | ||
Segment Reporting Information | ||
Homes under construction | 246,786 | 191,424 |
Land under development | 391,793 | 317,702 |
Raw land | 85,307 | 107,737 |
Total Inventory | 723,886 | 616,863 |
Total Assets | 805,458 | 691,342 |
West | ||
Segment Reporting Information | ||
Homes under construction | 672,170 | 413,208 |
Land under development | 1,227,980 | 1,094,112 |
Raw land | 158,374 | 222,920 |
Total Inventory | 2,058,524 | 1,730,240 |
Total Assets | 2,275,186 | 1,924,958 |
Other homebuilding | ||
Segment Reporting Information | ||
Homes under construction | 29,657 | 18,351 |
Land under development | 234,710 | 198,566 |
Raw land | 23,020 | 25,204 |
Total Inventory | 287,387 | 242,121 |
Total Assets | 2,103,325 | 2,628,687 |
Homebuilding | ||
Segment Reporting Information | ||
Homes under construction | 2,259,830 | 1,408,260 |
Land under development | 3,946,132 | 3,259,066 |
Raw land | 744,280 | 782,732 |
Total Inventory | 6,950,242 | 5,450,058 |
Total Assets | 9,456,242 | 8,447,907 |
Financial Services | ||
Segment Reporting Information | ||
Homes under construction | 0 | 0 |
Land under development | 0 | 0 |
Raw land | 0 | 0 |
Total Inventory | 0 | 0 |
Total Assets | $ 415,290 | $ 508,989 |
Debt (Summary of Senior Notes)
Debt (Summary of Senior Notes) (Details) - USD ($) | Sep. 30, 2016 | Jul. 01, 2016 | Feb. 29, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Net premiums, discounts, and issuance costs | $ (12,934,000) | $ (12,163,000) | ||
Senior notes | 3,110,066,000 | 1,576,082,000 | ||
Estimated fair value | $ 3,270,878,000 | 1,643,651,000 | ||
Other Assets | Accounting Standards Update 2015-03 | ||||
Debt Instrument [Line Items] | ||||
Net premiums, discounts, and issuance costs | $ (10,300,000) | |||
6.500% unsecured senior notes due May 2016 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.50% | 6.50% | ||
Face amount | $ 0 | $ 465,245,000 | ||
7.625% unsecured senior notes due October 2017 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.625% | 7.625% | ||
Face amount | $ 123,000,000 | $ 123,000,000 | ||
4.250% unsecured senior notes due March 2021 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% |
Face amount | $ 700,000,000 | $ 400,000,000 | $ 300,000,000 | $ 0 |
5.500% unsecured senior notes due March 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.50% | 5.50% | ||
Face amount | $ 700,000,000 | $ 0 | ||
5.000% unsecured senior notes due January 2027 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.00% | 5.00% | ||
Face amount | $ 600,000,000 | $ 0 | ||
7.875% unsecured senior notes due June 2032 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.875% | 7.875% | ||
Face amount | $ 300,000,000 | $ 300,000,000 | ||
6.375% unsecured senior notes due May 2033 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.375% | 6.375% | ||
Face amount | $ 400,000,000 | $ 400,000,000 | ||
6.000% unsecured senior notes due February 2035 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.00% | 6.00% | ||
Face amount | $ 300,000,000 | $ 300,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2016 | Aug. 15, 2016 | Jul. 01, 2016 | Feb. 29, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 500,000,000 | ||||
Write off of debt issuance cost | 700,000 | ||||
Letters of credit outstanding | 245,700,000 | $ 191,300,000 | |||
Notes payable | $ 20,500,000 | 35,300,000 | |||
Debt instrument term | 4 years | ||||
Amount outstanding | $ 158,794,000 | 267,877,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Current borrowing capacity | 500,000,000 | ||||
Maximum borrowing capacity | 750,000,000 | ||||
Maximum additional issuance | 375,000,000 | ||||
Fair value of amount outstanding | 0 | 0 | |||
Revolving Credit Facility Accordion Feature | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,250,000,000 | ||||
Repurchase Agreement | Financial Services | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 300,000,000 | $ 175,000,000 | |||
Amount outstanding | $ 158,800,000 | 267,900,000 | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.00% | ||||
Maximum | Repurchase Agreement | Financial Services | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Minimum | Repurchase Agreement | Financial Services | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 175,000,000 | ||||
Senior Notes | Senior Unsecured Notes February 2016 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | ||||
Senior Notes | 4.250% unsecured senior notes due March 2021 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 700,000,000 | $ 400,000,000 | $ 300,000,000 | $ 0 | |
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |
Senior Notes | 5.500% unsecured senior notes due March 2026 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 700,000,000 | $ 0 | |||
Stated interest rate | 5.50% | 5.50% | |||
Senior Notes | 6.500% unsecured senior notes due May 2016 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 0 | $ 465,245,000 | |||
Stated interest rate | 6.50% | 6.50% | |||
Senior Notes | Senior Unsecured Notes, Issued July 2016 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | ||||
Senior Notes | 5.000% unsecured senior notes due January 2027 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 600,000,000 | $ 0 | |||
Stated interest rate | 5.00% | 5.00% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class of Stock [Line Items] | |||
Dividends | $ 93,127 | $ 86,296 | |
Payments for repurchase of common stock | $ 350,846 | $ 442,738 | |
Share repurchase plan | |||
Class of Stock [Line Items] | |||
Share repurchases (shares) | 17.7 | 21.2 | |
Payments for repurchase of common stock | $ 347,700 | $ 433,700 | |
Increase in share repurchase authorization | $ 1,000,000 | ||
Remaining value of stock repurchase programs authorization | 1,300,000 | ||
Shares withheld to pay taxes | |||
Class of Stock [Line Items] | |||
Payments for repurchase of common stock | $ 3,200 | $ 9,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax | 39.50% | 39.90% | 36.60% | 39.90% | |
Deferred tax assets, net | $ 1,195,905 | $ 1,195,905 | $ 1,394,879 | ||
Gross unrecognized tax benefits | 22,100 | 22,100 | 39,000 | ||
Accrued interest and penalties on unrecognized tax benefits | 12,100 | 12,100 | $ 17,200 | ||
Possible decrease in unrecognized tax benefits | $ 18,000 | $ 18,000 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Disclosed at fair value: | ||
Senior notes | $ 3,270,878 | $ 1,643,651 |
Level 2 | ||
Disclosed at fair value: | ||
Financial Services debt | 158,794 | 267,877 |
Term loan | 0 | 500,000 |
Level 1 | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash) | 461,189 | 775,435 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 11,052 |
Interest rate lock commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 10,878 | 5,574 |
Forward contracts | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 338 | |
Liabilities, Fair Value Disclosure, Recurring | (2,298) | |
Whole loan commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | 13 | |
Liabilities, Fair Value Disclosure, Recurring | (596) | |
Residential Mortgage | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure, Recurring | $ 349,012 | $ 442,715 |
Fair Value Disclosures Narrativ
Fair Value Disclosures Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Senior notes | $ 3,110,066 | $ 1,576,082 |
Commitments and Contingencies40
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||||||
Letters of credit outstanding | $ 245,700 | $ 245,700 | $ 191,300 | |||||
Surety bonds outstanding | 1,100,000 | 1,100,000 | 1,000,000 | |||||
Litigation settlement expense | 15,000 | $ 20,000 | $ 15,000 | $ 20,000 | ||||
Maximum product warranty in years | 10 years | |||||||
Self-insurance liabilities | $ 702,547 | 702,484 | $ 702,547 | 702,484 | $ 707,306 | $ 692,053 | $ 700,133 | $ 710,245 |
Incurred but not reported percentage of liability reserves | 64.00% | 64.00% | 65.00% | |||||
Gain (loss) related to litigation settlement | $ 5,700 | $ 32,600 | ||||||
litigation of recorded insurance receivable | $ 108,100 | |||||||
Other Assets | ||||||||
Loss Contingencies [Line Items] | ||||||||
Recorded insurance receivables | $ 136,900 | $ 136,900 | $ 130,200 |
Commitments and Contingencies41
Commitments and Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loss Contingency Accrual [Roll Forward] | ||||
Liabilities, beginning of period | $ 35,945 | $ 58,238 | $ 46,381 | $ 58,222 |
Reserves provided (released), net | (138) | 81 | 629 | 220 |
Payments | (264) | (23) | (11,467) | (146) |
Liabilities, end of period | $ 35,543 | $ 58,296 | $ 35,543 | $ 58,296 |
Commitments and Contingencies42
Commitments and Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liabilities, beginning of period | $ 61,839 | $ 54,502 | $ 61,360 | $ 65,389 |
Reserves provided | 19,221 | 12,575 | 45,744 | 32,586 |
Payments | (14,886) | (14,316) | (40,729) | (45,793) |
Other adjustments | (1,753) | 1,773 | (1,954) | 2,352 |
Warranty liabilities, end of period | $ 64,421 | $ 54,534 | $ 64,421 | $ 54,534 |
Commitments and Contingencies43
Commitments and Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in Self-insurance Liability [Roll Forward] | ||||
Balance, beginning of period | $ 707,306 | $ 700,133 | $ 692,053 | $ 710,245 |
Reserves provided, net | 20,234 | 14,021 | 65,302 | 20,467 |
Payments | (24,993) | (11,670) | (54,808) | (28,228) |
Balance, end of period | $ 702,547 | $ 702,484 | $ 702,547 | $ 702,484 |
Supplemental Guarantor Inform44
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and equivalents | $ 434,205 | $ 754,161 | $ 734,153 | $ 1,292,862 |
Restricted cash | 26,984 | 21,274 | ||
House and land inventory | 6,950,242 | 5,450,058 | ||
Land held for sale | 57,468 | 81,492 | ||
Residential mortgage loans available-for-sale | 349,012 | 442,715 | ||
Investments in unconsolidated entities | 51,768 | 41,267 | ||
Other assets | 647,706 | 660,835 | ||
Intangible assets | 158,242 | 110,215 | ||
Deferred tax assets, net | 1,195,905 | 1,394,879 | ||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | ||
Total assets | 9,871,532 | 8,956,896 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,897,078 | 1,798,139 | ||
Income tax liabilities | 33,562 | 57,050 | ||
Financial Services debt | 158,794 | 267,877 | ||
Term loan | 0 | 498,423 | ||
Senior notes | 3,110,066 | 1,576,082 | ||
Total liabilities | 5,199,500 | 4,197,571 | ||
Total shareholders' equity | 4,672,032 | 4,759,325 | 4,571,605 | 4,804,954 |
Total liabilities and shareholders' equity | 9,871,532 | 8,956,896 | ||
PulteGroup, Inc. | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | 0 | 7,454 |
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 | 103 | 93 | ||
Other assets | 12,871 | 38,991 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 1,194,646 | 1,392,251 | ||
Investments in subsidiaries and intercompany accounts, net | 6,689,355 | 5,529,606 | ||
Total assets | 7,896,975 | 6,960,941 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 81,315 | 70,061 | ||
Income tax liabilities | 33,562 | 57,050 | ||
Financial Services debt | 0 | 0 | ||
Term loan | 0 | 498,423 | ||
Senior notes | 3,110,066 | 1,576,082 | ||
Total liabilities | 3,224,943 | 2,201,616 | ||
Total shareholders' equity | 4,672,032 | 4,759,325 | ||
Total liabilities and shareholders' equity | 7,896,975 | 6,960,941 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and equivalents | 373,539 | 638,602 | 688,224 | 1,157,307 |
Restricted cash | 25,984 | 20,274 | ||
House and land inventory | 6,895,174 | 5,450,058 | ||
Land held for sale | 56,958 | 80,458 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 46,679 | 36,499 | ||
Other assets | 509,904 | 531,120 | ||
Intangible assets | 158,242 | 110,215 | ||
Deferred tax assets, net | 0 | 11 | ||
Investments in subsidiaries and intercompany accounts, net | (565,940) | 465,644 | ||
Total assets | 7,500,540 | 7,332,881 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,648,402 | 1,558,885 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Term loan | 0 | 0 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 1,648,402 | 1,558,885 | ||
Total shareholders' equity | 5,852,138 | 5,773,996 | ||
Total liabilities and shareholders' equity | 7,500,540 | 7,332,881 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and equivalents | 60,666 | 115,559 | 45,929 | 128,101 |
Restricted cash | 1,000 | 1,000 | ||
House and land inventory | 55,068 | 0 | ||
Land held for sale | 510 | 1,034 | ||
Residential mortgage loans available-for-sale | 349,012 | 442,715 | ||
Investments in unconsolidated entities | 4,986 | 4,675 | ||
Other assets | 124,931 | 90,724 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 1,259 | 2,617 | ||
Investments in subsidiaries and intercompany accounts, net | 6,521,080 | 6,293,018 | ||
Total assets | 7,118,512 | 6,951,342 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 167,361 | 169,193 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 158,794 | 267,877 | ||
Term loan | 0 | 0 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 326,155 | 437,070 | ||
Total shareholders' equity | 6,792,357 | 6,514,272 | ||
Total liabilities and shareholders' equity | 7,118,512 | 6,951,342 | ||
Eliminating Entries | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Other assets | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | (12,644,495) | (12,288,268) | ||
Total assets | (12,644,495) | (12,288,268) | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 0 | 0 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Term loan | 0 | 0 | ||
Senior notes | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total shareholders' equity | (12,644,495) | (12,288,268) | ||
Total liabilities and shareholders' equity | $ (12,644,495) | $ (12,288,268) |
Supplemental Guarantor Inform45
Supplemental Guarantor Information (Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Homebuilding | ||||
Home sale revenues | $ 1,881,718 | $ 1,464,131 | $ 5,027,843 | $ 3,795,366 |
Land sale revenues | 13,167 | 3,649 | 20,604 | 27,651 |
Total homebuilding revenues | 1,894,885 | 1,467,780 | 5,048,447 | 3,823,017 |
Financial Services | 48,020 | 38,967 | 126,950 | 97,319 |
Consolidated revenues | 1,942,905 | 1,506,747 | 5,175,397 | 3,920,336 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,485,611 | 1,118,874 | 3,949,449 | 2,913,299 |
Land sale cost of revenues | 11,428 | 3,301 | 17,859 | 21,992 |
Total cost of revenues | 1,497,039 | 1,122,175 | 3,967,308 | 2,935,291 |
Financial Services expenses | 26,906 | 24,602 | 79,204 | 67,909 |
Selling, general, and administrative expenses | 183,008 | 159,361 | 566,355 | 450,793 |
Other expense (income), net | 23,617 | 21,333 | 42,402 | 23,638 |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 212,335 | 179,276 | 520,128 | 442,705 |
Income tax expense (benefit) | 83,865 | 71,507 | 190,598 | 176,643 |
Income (loss) before equity in income (loss) of subsidiaries | 128,470 | 107,769 | 329,530 | 266,062 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 128,470 | 107,769 | 329,530 | 266,062 |
Other comprehensive income | 20 | 21 | 61 | 63 |
Comprehensive income (loss) | 128,490 | 107,790 | 329,591 | 266,125 |
PulteGroup, Inc. | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 0 | 13 | 0 | 300 |
Selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Other expense (income), net | 823 | 202 | 1,164 | 572 |
Intercompany interest | 487 | 594 | 1,487 | 1,537 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (1,310) | (809) | (2,651) | (2,409) |
Income tax expense (benefit) | (498) | (307) | (1,008) | (917) |
Income (loss) before equity in income (loss) of subsidiaries | (812) | (502) | (1,643) | (1,492) |
Equity in income (loss) of subsidiaries | 129,282 | 108,271 | 331,173 | 267,554 |
Net income | 128,470 | 107,769 | 329,530 | 266,062 |
Other comprehensive income | 20 | 21 | 61 | 63 |
Comprehensive income (loss) | 128,490 | 107,790 | 329,591 | 266,125 |
Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 1,871,284 | 1,464,131 | 5,011,027 | 3,795,366 |
Land sale revenues | 13,167 | 3,649 | 19,069 | 27,651 |
Total homebuilding revenues | 1,884,451 | 1,467,780 | 5,030,096 | 3,823,017 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 1,884,451 | 1,467,780 | 5,030,096 | 3,823,017 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 1,474,377 | 1,118,874 | 3,930,546 | 2,913,299 |
Land sale cost of revenues | 11,428 | 3,301 | 16,577 | 21,992 |
Total cost of revenues | 1,485,805 | 1,122,175 | 3,947,123 | 2,935,291 |
Financial Services expenses | 145 | (13) | 405 | (274) |
Selling, general, and administrative expenses | 176,998 | 158,975 | 549,094 | 449,261 |
Other expense (income), net | 26,166 | 21,267 | 56,599 | 23,702 |
Intercompany interest | 2,072 | 2,039 | 6,290 | 5,886 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 193,265 | 163,337 | 470,585 | 409,151 |
Income tax expense (benefit) | 76,552 | 65,347 | 171,535 | 163,713 |
Income (loss) before equity in income (loss) of subsidiaries | 116,713 | 97,990 | 299,050 | 245,438 |
Equity in income (loss) of subsidiaries | 21,948 | 9,913 | 31,827 | 21,586 |
Net income | 138,661 | 107,903 | 330,877 | 267,024 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 138,661 | 107,903 | 330,877 | 267,024 |
Non-Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 10,434 | 0 | 16,816 | 0 |
Land sale revenues | 0 | 0 | 1,535 | 0 |
Total homebuilding revenues | 10,434 | 0 | 18,351 | 0 |
Financial Services | 48,020 | 38,967 | 126,950 | 97,319 |
Consolidated revenues | 58,454 | 38,967 | 145,301 | 97,319 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 11,234 | 0 | 18,903 | 0 |
Land sale cost of revenues | 0 | 0 | 1,282 | 0 |
Total cost of revenues | 11,234 | 0 | 20,185 | 0 |
Financial Services expenses | 26,761 | 24,602 | 78,799 | 67,883 |
Selling, general, and administrative expenses | 6,010 | 386 | 17,261 | 1,532 |
Other expense (income), net | (3,372) | (136) | (15,361) | (636) |
Intercompany interest | (2,559) | (2,633) | (7,777) | (7,423) |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 20,380 | 16,748 | 52,194 | 35,963 |
Income tax expense (benefit) | 7,811 | 6,467 | 20,071 | 13,847 |
Income (loss) before equity in income (loss) of subsidiaries | 12,569 | 10,281 | 32,123 | 22,116 |
Equity in income (loss) of subsidiaries | 75,884 | 82,484 | 261,777 | 227,143 |
Net income | 88,453 | 92,765 | 293,900 | 249,259 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 88,453 | 92,765 | 293,900 | 249,259 |
Eliminating Entries | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (227,114) | (200,668) | (624,777) | (516,283) |
Net income | (227,114) | (200,668) | (624,777) | (516,283) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (227,114) | $ (200,668) | $ (624,777) | $ (516,283) |
Supplemental Guarantor Inform46
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net cash provided by (used in) operating activities | $ (312,216) | $ (244,899) |
Cash flows from investing activities: | ||
Capital expenditures | (30,551) | (34,049) |
Cash used for business acquisition | (430,458) | 0 |
Other investing activities, net | (8,576) | 13,669 |
Net cash used in investing activities | (469,585) | (20,380) |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 1,995,961 | 498,087 |
Repayments of debt | (985,734) | (238,520) |
Borrowings under revolving credit facility | 619,000 | 125,000 |
Repayments under revolving credit facility | (619,000) | (125,000) |
Financial Services borrowings (repayments) | (109,083) | (32,733) |
Stock option exercises | 5,845 | 10,371 |
Share repurchases | (350,846) | (442,738) |
Dividends paid | (94,298) | (87,897) |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 461,845 | (293,430) |
Net increase (decrease) in cash and equivalents | (319,956) | (558,709) |
Cash and equivalents at beginning of period | 754,161 | 1,292,862 |
Cash and equivalents at end of period | 434,205 | 734,153 |
PulteGroup, Inc. | ||
Net cash provided by (used in) operating activities | 159,366 | 164,558 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Cash used for business acquisition | 0 | |
Other investing activities, net | 0 | 3,710 |
Net cash used in investing activities | 0 | 3,710 |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 1,991,961 | 500,000 |
Repayments of debt | (965,245) | (237,994) |
Borrowings under revolving credit facility | 619,000 | |
Repayments under revolving credit facility | (619,000) | |
Financial Services borrowings (repayments) | 0 | 0 |
Stock option exercises | 5,845 | 10,371 |
Share repurchases | (350,846) | (442,738) |
Dividends paid | (94,298) | (87,897) |
Intercompany activities, net | (746,783) | 84,449 |
Net cash provided by (used in) financing activities | (159,366) | (175,722) |
Net increase (decrease) in cash and equivalents | 0 | (7,454) |
Cash and equivalents at beginning of period | 0 | 7,454 |
Cash and equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | (567,875) | (468,838) |
Cash flows from investing activities: | ||
Capital expenditures | (28,243) | (31,197) |
Cash used for business acquisition | (430,458) | |
Other investing activities, net | (10,136) | 785 |
Net cash used in investing activities | (468,837) | (30,412) |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 4,000 | 0 |
Repayments of debt | (20,394) | (526) |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Financial Services borrowings (repayments) | 0 | 0 |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 788,043 | 30,693 |
Net cash provided by (used in) financing activities | 771,649 | 30,167 |
Net increase (decrease) in cash and equivalents | (265,063) | (469,083) |
Cash and equivalents at beginning of period | 638,602 | 1,157,307 |
Cash and equivalents at end of period | 373,539 | 688,224 |
Non-Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | 96,293 | 59,381 |
Cash flows from investing activities: | ||
Capital expenditures | (2,308) | (2,852) |
Cash used for business acquisition | 0 | |
Other investing activities, net | 1,560 | 9,174 |
Net cash used in investing activities | (748) | 6,322 |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 0 | 0 |
Repayments of debt | (95) | 0 |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Financial Services borrowings (repayments) | (109,083) | (32,733) |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | (41,260) | (115,142) |
Net cash provided by (used in) financing activities | (150,438) | (147,875) |
Net increase (decrease) in cash and equivalents | (54,893) | (82,172) |
Cash and equivalents at beginning of period | 115,559 | 128,101 |
Cash and equivalents at end of period | 60,666 | 45,929 |
Eliminating Entries | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Cash used for business acquisition | 0 | |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from debt issuance | 0 | 0 |
Repayments of debt | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Repayments under revolving credit facility | 0 | |
Financial Services borrowings (repayments) | 0 | 0 |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Net increase (decrease) in cash and equivalents | 0 | 0 |
Cash and equivalents at beginning of period | 0 | 0 |
Cash and equivalents at end of period | $ 0 | $ 0 |