Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 24, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | PULTEGROUP INC/MI/ | ||
Entity Central Index Key | 822,416 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 277,142,007 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,132,221,388 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and equivalents | $ 1,110,088 | $ 272,683 |
Restricted cash | 23,612 | 33,485 |
Total cash, cash equivalents, and restricted cash | 1,133,700 | 306,168 |
House and land inventory | 7,253,353 | 7,147,130 |
Land held for sale | 36,849 | 68,384 |
Residential mortgage loans available-for-sale | 461,354 | 570,600 |
Investments in unconsolidated entities | 54,590 | 62,957 |
Other assets | 830,359 | 745,123 |
Intangible assets | 127,192 | 140,992 |
Deferred tax assets, net | 275,579 | 645,295 |
Total assets | 10,172,976 | 9,686,649 |
Liabilities: | ||
Accounts payable, including book overdrafts of $54,381 and $72,800 in 2018 and 2017, respectively | 352,029 | 393,815 |
Customer deposits | 254,624 | 250,779 |
Accrued and other liabilities | 1,360,483 | 1,356,333 |
Income tax liabilities | 11,580 | 86,925 |
Financial Services debt | 348,412 | 437,804 |
Notes payable | 3,028,066 | 3,006,967 |
Total liabilities | 5,355,194 | 5,532,623 |
Shareholders’ equity: | ||
Preferred shares, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common shares, $0.01 par value; 500,000,000 shares authorized, 277,109,507 and 286,752,436 shares issued and outstanding at December 31, 2018 and 2017, respectively | 2,771 | 2,868 |
Additional paid-in capital | 3,201,427 | 3,171,542 |
Accumulated other comprehensive loss | (345) | (445) |
Retained earnings | 1,613,929 | 980,061 |
Total shareholders’ equity | 4,817,782 | 4,154,026 |
Total liabilities and shareholders' equity | $ 10,172,976 | $ 9,686,649 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Book overdrafts | $ 54,381 | $ 72,780 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 277,109,507 | 286,752,436 |
Common stock, shares outstanding | 277,109,507 | 286,752,436 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Homebuilding | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,188,331 | $ 8,577,686 | $ 7,676,530 |
Homebuilding Cost of Revenues: | |||
Selling, general, and administrative expenses | (1,012,023) | (891,581) | (957,150) |
Other expense, net | (13,849) | (32,387) | (56,868) |
Income before income taxes | 1,347,540 | 938,828 | 933,850 |
Income tax expense | (325,517) | (491,607) | (331,147) |
Net income | $ 1,022,023 | $ 447,221 | $ 602,703 |
Net income per share: | |||
Basic (usd per share) | $ 3.56 | $ 1.45 | $ 1.76 |
Diluted (usd per share) | 3.55 | 1.44 | 1.75 |
Cash dividends declared (usd per share) | $ 0.38 | $ 0.36 | $ 0.36 |
Number of shares used in calculation: | |||
Basic shares outstanding (shares) | 283,578 | 305,089 | 339,747 |
Effect of dilutive securities (shares) | 1,287 | 1,725 | 2,376 |
Diluted shares outstanding (shares) | 284,865 | 306,814 | 342,123 |
Total Homebuilding [Member] | |||
Homebuilding | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,982,949 | $ 8,385,526 | $ 7,495,404 |
Homebuilding Cost of Revenues: | |||
Cost of Revenue | 7,667,497 | 6,595,601 | 5,620,089 |
Land [Member] | |||
Homebuilding | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 164,504 | 61,542 | 44,089 |
Homebuilding Cost of Revenues: | |||
Cost of Goods and Services Sold | 126,560 | 134,449 | 32,115 |
Home Building [Member] | |||
Homebuilding | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,818,445 | 8,323,984 | 7,451,315 |
Homebuilding Cost of Revenues: | |||
Cost of Goods and Services Sold | 7,540,937 | 6,461,152 | 5,587,974 |
Financial Service [Member] | |||
Homebuilding | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 205,382 | 192,160 | 181,126 |
Homebuilding Cost of Revenues: | |||
Cost of Revenue | $ 147,422 | $ 119,289 | $ 108,573 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 1,022,023 | $ 447,221 | $ 602,703 |
Other comprehensive income, net of tax: | |||
Change in value of derivatives | 100 | 81 | 83 |
Other comprehensive income | 100 | 81 | 83 |
Comprehensive income | $ 1,022,123 | $ 447,302 | $ 602,786 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Shareholders' Equity, shares at Dec. 31, 2015 | 349,149,000 | ||||
Shareholders' Equity at Dec. 31, 2015 | $ 4,759,325 | $ 3,491 | $ 3,093,802 | $ (609) | $ 1,662,641 |
Stock option exercises, shares | 498,000 | ||||
Stock option exercises | 5,845 | $ 5 | 5,840 | 0 | 0 |
Share issuances, net of cancellations, shares | 530,000 | ||||
Share issuances, net of cancellations | 8,856 | $ 5 | 8,851 | ||
Dividends declared | (122,240) | 0 | (122,240) | ||
Share repurchases, shares | (31,087,000) | ||||
Share repurchases | (603,206) | $ (310) | (602,896) | ||
Share-based compensation | 18,626 | $ 0 | 18,626 | 0 | 0 |
Excess tax benefits (deficiencies) from share-based compensation | (10,629) | (10,629) | |||
Net income | 602,703 | 602,703 | |||
Other comprehensive income | 83 | 83 | |||
Shareholders' Equity, shares at Dec. 31, 2016 | 319,090,000 | ||||
Shareholders' Equity at Dec. 31, 2016 | 4,659,363 | $ 3,191 | 3,116,490 | (526) | 1,540,208 |
Stock option exercises, shares | 2,352,000 | ||||
Stock option exercises | 27,720 | $ 24 | 27,696 | ||
Cumulative Effect on Retained Earnings, Net of Tax | 18,238 | $ 0 | (406) | 0 | 18,644 |
Share issuances, net of cancellations, shares | 730,000 | ||||
Share issuances, net of cancellations | 3,565 | $ 10 | 3,555 | ||
Dividends declared | (110,046) | 0 | (110,046) | ||
Share repurchases, shares | (35,420,000) | ||||
Share repurchases | (916,323) | $ (357) | (915,966) | ||
Share-based compensation | 24,207 | $ 0 | 24,207 | 0 | 0 |
Excess tax benefits (deficiencies) from share-based compensation | 0 | 0 | |||
Net income | 447,221 | 447,221 | |||
Other comprehensive income | $ 81 | 81 | |||
Shareholders' Equity, shares at Dec. 31, 2017 | 286,752,436 | 286,752,000 | |||
Shareholders' Equity at Dec. 31, 2017 | $ 4,154,026 | $ 2,868 | 3,171,542 | (445) | 980,061 |
Stock option exercises, shares | 605,000 | ||||
Stock option exercises | 6,555 | $ 6 | 6,549 | 0 | 0 |
Cumulative Effect on Retained Earnings, Net of Tax | 22,411 | $ 0 | 22,411 | ||
Share issuances, net of cancellations, shares | 935,000 | ||||
Share issuances, net of cancellations | 3,484 | $ 9 | 3,475 | ||
Dividends declared | (108,489) | 0 | (108,489) | ||
Share repurchases, shares | (11,182,000) | ||||
Share repurchases | (302,473) | $ (112) | (284) | (302,077) | |
Share-based compensation | 20,145 | $ 0 | 20,145 | 0 | 0 |
Net income | 1,022,023 | 1,022,023 | |||
Other comprehensive income | $ 100 | 100 | |||
Shareholders' Equity, shares at Dec. 31, 2018 | 277,109,507 | 277,110,000 | |||
Shareholders' Equity at Dec. 31, 2018 | $ 4,817,782 | $ 2,771 | $ 3,201,427 | $ (345) | $ 1,613,929 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 1,022,023 | $ 447,221 | $ 602,703 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Deferred income tax expense | 362,777 | 422,307 | 334,787 |
Land-related charges | 99,446 | 191,913 | 19,357 |
Depreciation and amortization | 49,429 | 50,998 | 54,007 |
Share-based compensation expense | 28,290 | 33,683 | 22,228 |
Loss on debt retirements | 0 | 0 | 657 |
Other, net | (3,612) | (1,789) | 1,614 |
Increase (decrease) in cash due to: | |||
Inventories | (50,362) | (569,030) | (897,092) |
Residential mortgage loans available-for-sale | 107,330 | (33,009) | (99,527) |
Other assets | (64,174) | 55,099 | (45,721) |
Accounts payable, accrued and other liabilities | (101,403) | 65,684 | 75,257 |
Net cash provided by operating activities | 1,449,744 | 663,077 | 68,270 |
Cash flows from investing activities: | |||
Capital expenditures | (59,039) | (32,051) | (39,295) |
Investment in unconsolidated subsidiaries | (1,000) | (23,037) | (14,539) |
Cash used for business acquisition | 0 | 0 | (430,458) |
Other investing activities, net | 18,097 | 4,846 | 13,100 |
Net cash used in investing activities | (41,942) | (50,242) | (471,192) |
Cash flows from financing activities: | |||
Payments of Debt Issuance Costs | (8,164) | ||
Proceeds from debt, net of issuance costs | 0 | 1,995,937 | |
Repayments of debt | (82,775) | (134,747) | (986,919) |
Borrowings under revolving credit facility | 1,566,000 | 2,720,000 | 619,000 |
Repayments under revolving credit facility | (1,566,000) | (2,720,000) | (619,000) |
Financial Services borrowings (repayments), net | (89,393) | 106,183 | 63,744 |
Stock option exercises | 6,555 | 27,720 | 5,845 |
Share repurchases | (302,473) | (916,323) | (603,206) |
Dividends paid | (104,020) | (112,748) | (124,666) |
Net cash provided by (used in) financing activities | (580,270) | (1,029,915) | 350,735 |
Net increase (decrease) | 827,532 | (417,080) | (52,187) |
Cash, cash equivalents, and restricted cash at beginning of period | 306,168 | 723,248 | 775,435 |
Cash, cash equivalents, and restricted cash at end of period | 1,133,700 | 306,168 | 723,248 |
Supplemental Cash Flow Information: | |||
Interest paid (capitalized), net | 557 | (942) | (26,538) |
Income taxes paid, net | $ 89,204 | $ 14,875 | $ 2,743 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation PulteGroup, Inc. is one of the largest homebuilders in the U.S., and our common 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 and insurance brokerage operations. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. Business acquisitions We acquired 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. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Effective with our first quarter 2018 reporting, we reclassified customer deposit income from other expense, net to land sale and other revenues. All prior period amounts have been reclassified to conform to the current presentation. Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). Cash and equivalents Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2018 and 2017 also included $40.9 million and $80.3 million , respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. Restricted cash We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. Total cash, cash equivalents, and restricted cash includes restricted cash balances of $23.6 million and $33.5 million at December 31, 2018 and 2017 , respectively. Investments in unconsolidated entities We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other expense, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 4 . Intangible assets Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, was recorded as the result of the Wieland acquisition and totaled $40.4 million at December 31, 2018 and 2017 . We assess goodwill for impairment annually in the fourth quarter and if events or changes in circumstances indicate the carrying amount may not be recoverable. Intangible assets also include tradenames acquired in connection with the 2016 acquisition of Wieland, the 2009 acquisition of Centex, and the 2001 acquisition of Del Webb, all of which are being amortized over 20 -year lives. The acquired cost and accumulated amortization of our tradenames were $277.0 million and $190.2 million , respectively, at December 31, 2018 , and $277.0 million and $176.4 million , respectively, at December 31, 2017 . Amortization expense totaled $13.8 million in 2018 , 2017 , and 2016 , respectively, and is expected to be $13.8 million in 2019, $13.8 million in 2020, $10.4 million in 2021, and $5.7 million in 2022. The ultimate realization of these assets is dependent upon the future cash flows and benefits that we expect to generate from their use. We assess tradenames for impairment if events or changes in circumstances indicate the carrying amount may not be recoverable. Property and equipment, net, and depreciation Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: office furniture and equipment - 3 to 10 years; leasehold improvements - life of the lease; software and hardware - 3 to 5 years; model park improvements and furnishings - 1 to 5 years. Property and equipment are included in other assets and totaled $92.9 million net of accumulated depreciation of $209.3 million at December 31, 2018 and $70.7 million net of accumulated depreciation of $206.5 million at December 31, 2017 . Depreciation expense totaled $35.6 million , $37.2 million , and $40.2 million in 2018 , 2017 , and 2016 , respectively. Advertising costs Advertising costs are expensed to selling, general, and administrative expense as incurred and totaled $51.0 million , $45.0 million , and $50.7 million , in 2018 , 2017 , and 2016 , respectively. Employee benefits We maintain a defined contribution retirement plan that covers substantially all of our employees. Company contributions to the plan totaled $17.9 million , $15.7 million , and $14.6 million in 2018 , 2017 , and 2016 , respectively. Other expense, net Other expense, net consists of the following ($000’s omitted): 2018 2017 2016 Write-offs of deposits and pre-acquisition costs (Note 2) $ (16,992 ) $ (11,367 ) $ (17,157 ) Lease exit and related costs (a) (240 ) (1,729 ) (11,643 ) Amortization of intangible assets (Note 1) (13,800 ) (13,800 ) (13,800 ) Interest expense (618 ) (503 ) (686 ) Interest income 7,593 2,537 3,236 Equity in earnings (loss) of unconsolidated entities ( Note 4 ) (b) 2,690 (1,985 ) 8,337 Miscellaneous, net (c) 7,518 (5,540 ) (25,155 ) Total other expense, net $ (13,849 ) $ (32,387 ) $ (56,868 ) (a) Lease exit and related costs 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) Includes an $8.0 million impairment of an investment in an unconsolidated entity in 2017 (see Note 2 ). (c) Miscellaneous, net includes a charge of $15.0 million in 2016 related to the settlement of a disputed land transaction (see Note 11 ). Earnings per share Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price of our common shares are considered anti-dilutive and excluded from the diluted earnings per share calculation. Our earnings per share excluded 1.8 million potentially dilutive instruments in 2016 . Anti-dilutive shares were immaterial in 2018 and 2017. In accordance with ASC 260 "Earnings Per Share" ("ASC 260"), the two-class method determines earnings per share for each class of common share and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. The following table presents the earnings per common share (000's omitted, except per share data): December 31, 2018 December 31, 2017 December 31, 2016 Numerator: Net income $ 1,022,023 $ 447,221 $ 602,703 Less: earnings distributed to participating securities (1,208 ) (1,192 ) (1,100 ) Less: undistributed earnings allocated to participating securities (9,984 ) (3,380 ) (3,622 ) Numerator for basic earnings per share $ 1,010,831 $ 442,649 $ 597,981 Add back: undistributed earnings allocated to participating securities 9,984 3,380 3,622 Less: undistributed earnings reallocated to participating securities (9,939 ) (3,361 ) (3,602 ) Numerator for diluted earnings per share $ 1,010,876 $ 442,668 $ 598,001 Denominator: Basic shares outstanding 283,578 305,089 339,747 Effect of dilutive securities 1,287 1,725 2,376 Diluted shares outstanding 284,865 306,814 342,123 Earnings per share: Basic $ 3.56 $ 1.45 $ 1.76 Diluted $ 3.55 $ 1.44 $ 1.75 Share-based compensation We measure compensation cost for restricted shares and restricted share units at fair value on the grant date. Fair value is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted shares and restricted share units, the majority of which cliff vest at the end of three years , ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 7 . Income taxes The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740 which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including relevant facts and circumstances, applicable tax law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 8 . Revenue recognition Home sale revenues - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities include customer deposit liabilities related to sold but undelivered homes, which totaled $254.6 million and $250.8 million at December 31, 2018 and 2017 , respectively. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. Land sale revenues - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied. During 2018 , we closed on a number of land sale transactions that generated gains totaling $31.4 million , as the proceeds from the sales exceeded the cost basis of the land. Substantially all performance obligations related to these transactions were satisfied at closing. Financial services revenues - Loan origination fees, commitment fees, and certain direct loan origination costs are recognized as incurred. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold. Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance brokerage commissions relate to commissions on home and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy, and related contract assets for estimated future renewal commissions are included in other assets and totaled $30.8 million at December 31, 2018 . Contract assets totaling $27.7 million were recognized on January 1, 2018, in conjunction with the adoption of Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606"). Refer to " New accounting pronouncements" within Note 1 for further discussion. Sales incentives When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. Inventory and cost of revenues Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. We test inventory for impairment when events and circumstances indicate that the undiscounted cash flows estimated to be generated by the community may be less than its carrying amount. Such indicators include gross margins or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development or strategy for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. See Note 2 . Land held for sale We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 2 . 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 may serve to reduce our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 2 . If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2018 or 2017 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2018 December 31, 2017 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 90,717 $ 1,079,507 $ 78,889 $ 977,480 Other land options 127,851 1,522,903 129,098 1,485,099 $ 218,568 $ 2,602,410 $ 207,987 $ 2,462,579 Allowance for warranties Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time revenue is recognized (see Note 11 ). Self-insured risks We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 11 . Residential mortgage loans available-for-sale Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 11 for discussion of the risks retained related to mortgage loan originations. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At December 31, 2018 and 2017 , residential mortgage loans available-for-sale had an aggregate fair value of $461.4 million and $570.6 million , respectively, and an aggregate outstanding principal balance of $444.2 million and $553.5 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $0.7 million and $(2.2) million for the years ended December 31, 2018 and 2017 , respectively. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages during 2018 , 2017 , and 2016 were $111.3 million , $110.9 million , and $109.6 million , respectively, and have been included in Financial Services revenues. Mortgage servicing rights We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this exposure at the time the sale is recorded. Such reserves were immaterial at December 31, 2018 and 2017 . Loans held for investment We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are reviewed annually for impairment, or when recoverability becomes doubtful. Loans held for investment are included in other assets and totaled $8.9 million and $11.2 million at December 31, 2018 and 2017 , respectively. Interest income on mortgage loans Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $11.3 million , $9.5 million , and $8.0 million in 2018 , 2017 , and 2016 , respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. Derivative instruments and hedging activities We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At December 31, 2018 and 2017 , we had aggregate IRLCs of $285.0 million and $210.9 million , respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. 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 investor commitments, which are obligations of an 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 extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. At December 31, 2018 and 2017 , we had unexpired forward contracts of $511.0 million and $522.0 million , respectively, and whole loan investor commitments of $187.8 million and $203.1 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 IRLCs are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days. The fair values of derivative instruments and their location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2018 December 31, 2017 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 9,196 $ 161 $ 5,990 $ 407 Forward contracts 315 7,229 432 817 Whole loan commitments 393 1,111 794 941 $ 9,904 $ 8,501 $ 7,216 $ 2,165 New accounting pronouncements On January 1, 2018, we adopted ASC 606, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. We applied the modified retrospective method to contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the previous accounting standards. We recorded a net increase to opening retained earnings of $22.4 million , net of tax, as of January 1, 2018, due to the cumulative impact of adopting ASC 606, with the impact primarily related to the recognition of contract assets for insurance brokerage commission renewals. There was not a material impact to revenues as a result of applying ASC 606 in 2018, and there have not been significant changes to our business processes, systems, or internal controls as a result of implementing the standard. On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), on a retrospective basis. ASU 2016-15 addresses several specific cash flow issues. The adoption of ASU 2016-15 had no effect on our financial statements. ASC 842, "Leases", becomes effective for us for interim and |
Inventory And Land Held For Sal
Inventory And Land Held For Sale | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory and land held for sale | Inventory and land held for sale Major components of inventory at December 31, 2018 and 2017 were ($000’s omitted): 2018 2017 Homes under construction $ 2,630,158 $ 2,421,405 Land under development 4,129,225 4,135,814 Raw land 493,970 589,911 $ 7,253,353 $ 7,147,130 In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2018 2017 2016 Interest in inventory, beginning of period $ 226,611 $ 186,097 $ 149,498 Interest capitalized 172,809 181,719 160,506 Interest expensed (171,925 ) (141,205 ) (123,907 ) Interest in inventory, end of period $ 227,495 $ 226,611 $ 186,097 Land-related charges We recorded the following land-related charges ($000's omitted): Statement of Operations Classification 2018 2017 2016 Net realizable value adjustments ("NRV") - land held for sale Land sale cost of revenues $ 11,489 $ 83,576 $ 1,105 Land impairments Home sale cost of revenues 70,965 88,952 1,074 Impairments of unconsolidated entities Other expense, net — 8,017 — Write-offs of deposits and pre-acquisition costs Other expense, net 16,992 11,367 17,157 Total land-related charges $ 99,446 $ 191,912 $ 19,336 Land-related charges have not been a significant broad-based issue since the U.S. housing recovery began in 2012. However, we experienced changes to facts and circumstances related to specific individual communities in 2018 and 2017 that elevated such charges. As explained in Note 1, we periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. The NRVs in 2017 were primarily the result of a plan we announced in May 2017 to sell select non-core and underutilized land parcels following a strategic review of our land portfolio. As part of that review, we determined that we would sell certain inactive land parcels, representing approximately 17 communities and 4,600 lots. These land parcels were located in diverse geographic areas and no longer fit into our strategic plans. The land parcels identified for sale included: land requiring significant additional development spend that would not yield suitable returns; land in excess of near-term need; and land entitled for certain product types inconsistent with our primary offerings. As a consequence of the change in strategy with respect to the future use of these land parcels, we recorded NRVs totaling $81.0 million in the three months ended June 30, 2017, related to inventory with a pre-NRV carrying value of $151.0 million . An additional $2.6 million of NRVs were recorded throughout 2017 as the result of adjustments to the aforementioned valuations as the sale process progressed or related to other land parcels we chose to sell. The estimated fair values of these inactive land parcels that were held for sale were generally based on comparisons to market comparable transactions, letters of intent, active negotiations with market participants, or similar market-based information supplemented in certain instances by estimated future net cash flows discounted for inherent risk associated with each underlying asset. The majority of these parcels were sold to third parties in either 2017 or 2018; such transactions are classified as land sale revenues. Land impairments relate to communities that are either active or that we intend to eventually open and build out. On a quarterly basis, we review each of our land positions for potential indicators of impairment and perform detailed impairment calculations for communities that display indicators of potential impairment. • In 2018, we received an unfavorable determination related to one of our communities that had been idle while pursuing entitlements for over 10 years. This unfavorable determination caused a significant reduction in the number of lots and necessitated certain changes to the expected product offering and land development that, combined with rising costs and a softening in demand in the applicable local market, resulted in an impairment of $59.2 million . Impairments for all other communities in 2018 totaled $11.8 million . • In 2017, our impairments resulted from: – As part of the May 2017 strategic review, we decided to accelerate the monetization of two communities through a combination of changing the product offerings and lowering the sales prices within the communities. This decision resulted in land impairments of $31.5 million in the three months ended June 30, 2017. – Separately, we recorded an impairment charge of $53.0 million related to one large project. This impairment resulted from increases in our estimates for future land development and house construction costs combined with lower pricing and slower sales paces for this project, which is located in an area where competitive conditions limit our ability to offset our cost increases through higher sales prices. Impairments for all other communities in 2017 totaled $4.5 million . We determine the fair value of a community's inventory using a combination of discounted cash flow models and market comparable transactions, where available. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the cash flow models are specific to each community and typically do not assume improvements in market conditions in the near term. The discount rate used in determining each community's fair value depends on the stage of development of the community and other specific factors that increase or decrease the inherent risks associated with the community's cash flow streams. Accordingly, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impaired communities ($000's omitted): Communities Impaired Fair Value of Communities Impaired, Net of Impairment Charges Impairment Charges Average Selling Price Quarterly Sales Pace (homes) Discount Rate 2018 8 $ 24,062 $ 70,965 $287 to $586 2 to 11 12% to 22% 2017 9 19,252 88,952 $207 to $818 1 to 11 12% to 25% 2016 2 8,920 1,074 $109 to $563 3 to 5 12 % Our evaluations for impairments are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of certain of our communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. Land held for sale Land held for sale at December 31, 2018 and 2017 was as follows ($000’s omitted): 2018 2017 Land held for sale, gross $ 40,037 $ 142,070 Net realizable value reserves (3,188 ) (73,686 ) Land held for sale, net $ 36,849 $ 68,384 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. Home sale revenues for detached and attached homes were $8.2 billion and $1.6 billion in 2018 , $7.3 billion and $1.1 billion in 2017 , and $6.5 billion and $1.0 billion in 2016 , respectively. 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, 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, title, and insurance brokerage operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments. Evaluation of segment performance is generally based on income before income taxes. Each reportable segment generally follows the same accounting policies described in Note 1 . Operating Data by Segment ($000’s omitted) Years Ended December 31, 2018 2017 2016 Revenues: Northeast $ 839,700 $ 693,877 $ 699,718 Southeast 1,746,161 1,564,116 1,492,502 Florida 1,944,170 1,494,389 1,285,890 Midwest 1,497,389 1,450,192 1,235,198 Texas 1,301,004 1,168,755 1,035,428 West 2,654,525 2,014,197 1,746,668 9,982,949 8,385,526 7,495,404 Financial Services 205,382 192,160 181,126 Consolidated revenues $ 10,188,331 $ 8,577,686 $ 7,676,530 Income before income taxes (a) : Northeast (b) $ 29,629 $ 21,190 $ 81,991 Southeast 202,639 122,532 145,011 Florida (c) 289,418 208,825 205,049 Midwest 179,568 178,231 120,159 Texas 193,946 182,862 152,355 West (d) 511,828 229,504 225,771 Other homebuilding (e) (118,224 ) (77,812 ) (69,570 ) 1,288,804 865,332 860,766 Financial Services 58,736 73,496 73,084 Consolidated income before income taxes $ 1,347,540 $ 938,828 $ 933,850 (a) Includes certain land-related charges (see the following table and Note 2 ). (b) Northeast includes a charge of $15.0 million in 2016 related to the settlement of a disputed land transaction (see Note 11 ). (c) Florida includes a warranty charge of $12.4 million in 2017 related to a closed-out community (see Note 11 ). (d) West includes gains of $26.4 million in 2018 related to two land sale transactions in California. (e) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Also includes: write-off of $29.6 million of insurance receivables associated with the resolution of certain insurance matters in 2017 (see Note 11 ); general liability insurance reserve reversals of $35.9 million , $97.8 million , and $57.1 million in 2018 , 2017 and 2016 , respectively (see Note 11 ); and costs associated with the relocation of our corporate headquarters totaling $8.3 million in 2016 . Operating Data by Segment ($000's omitted) 2018 2017 2016 Land-related charges*: Northeast $ 74,488 $ 51,362 $ 2,079 Southeast 8,140 55,689 3,089 Florida 1,166 9,702 715 Midwest 7,361 8,917 3,383 Texas 1,204 2,521 515 West 5,159 56,995 8,960 Other homebuilding 1,928 6,726 595 $ 99,446 $ 191,912 $ 19,336 * Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 2 for additional discussion of these charges. Operating Data by Segment ($000's omitted) Years Ended December 31, 2018 2017 2016 Depreciation and amortization: Northeast $ 2,093 $ 2,392 $ 2,133 Southeast 5,231 5,117 5,350 Florida 4,893 4,883 4,955 Midwest 4,271 4,449 5,099 Texas 3,082 3,301 3,673 West 6,758 5,828 6,739 Other homebuilding (a) 18,908 21,326 22,467 45,236 47,296 50,416 Financial Services 4,193 3,702 3,591 $ 49,429 $ 50,998 $ 54,007 (a) Other homebuilding includes amortization of intangible assets. Operating Data by Segment ($000's omitted) December 31, 2018 Homes Under Land Under Raw Land Total Total Northeast $ 268,900 $ 291,467 $ 52,245 $ 612,612 $ 704,515 Southeast 443,140 676,087 90,332 1,209,559 1,347,427 Florida 467,625 892,669 85,321 1,445,615 1,601,906 Midwest 314,442 433,056 29,908 777,406 849,596 Texas 284,405 427,124 98,415 809,944 881,629 West 805,709 1,131,841 118,579 2,056,129 2,208,092 Other homebuilding (a) 45,937 276,981 19,170 342,088 2,006,825 2,630,158 4,129,225 493,970 7,253,353 9,599,990 Financial Services — 572,986 $ 2,630,158 $ 4,129,225 $ 493,970 $ 7,253,353 $ 10,172,976 December 31, 2017 Homes Under Land Under Raw Land Total Total Northeast $ 234,413 $ 327,599 $ 73,574 $ 635,586 $ 791,511 Southeast 433,411 613,626 121,238 1,168,275 1,287,992 Florida 359,651 876,856 109,069 1,345,576 1,481,837 Midwest 299,896 476,694 28,482 805,072 877,282 Texas 251,613 435,018 87,392 774,023 859,847 West 798,706 1,137,940 147,493 2,084,139 2,271,328 Other homebuilding (a) 43,715 268,081 22,663 334,459 1,469,234 2,421,405 4,135,814 589,911 7,147,130 9,039,031 Financial Services — — — — 647,618 $ 2,421,405 $ 4,135,814 $ 589,911 $ 7,147,130 $ 9,686,649 December 31, 2016 Homes Under Land Under Raw Land Total Total Northeast $ 175,253 $ 375,899 $ 135,447 $ 686,599 $ 798,369 Southeast (a) 354,047 650,805 148,793 1,153,645 1,243,188 Florida 309,525 683,376 183,168 1,176,069 1,330,847 Midwest 256,649 474,287 50,302 781,238 851,457 Texas 219,606 413,312 74,750 707,668 793,917 West 580,082 1,226,190 159,387 1,965,659 2,200,058 Other homebuilding (a) 26,097 248,240 25,440 299,777 2,351,082 1,921,259 4,072,109 777,287 6,770,655 9,568,918 Financial Services — — — — 609,282 $ 1,921,259 $ 4,072,109 $ 777,287 $ 6,770,655 $ 10,178,200 (a) |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In unconsolidated entities | Investments in unconsolidated entities We participate in a number of joint ventures with independent third parties. These joint ventures generally purchase, develop, and sell land, including selling land to us for use in our homebuilding operations. A summary of our joint ventures is presented below ($000’s omitted): December 31, 2018 2017 Investments in joint ventures with limited recourse debt $ 31,551 $ 37,063 Investments in joint ventures with debt non-recourse to PulteGroup 3,471 3,567 Investments in other active joint ventures 19,568 22,327 Total investments in unconsolidated entities $ 54,590 $ 62,957 Total joint venture debt $ 42,948 $ 59,544 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 21,059 $ 28,157 Joint venture debt non-recourse to PulteGroup 217 700 PulteGroup's total proportionate share of joint venture debt $ 21,276 $ 28,857 In 2018 , 2017 , and 2016 , we recognized earnings (losses) from unconsolidated joint ventures of $2.7 million , $(2.0) million , and $8.3 million , respectively. We received distributions from our unconsolidated joint ventures of $12.1 million , $9.4 million , and $10.9 million , in 2018 , 2017 , and 2016 , respectively. We made capital contributions of $1.0 million , $23.0 million and 14.5 million in 2018 , 2017 , and 2016 , respectively. At December 31, 2018 , aggregate outstanding debt of unconsolidated joint ventures was $42.9 million , of which $42.1 million was related to one joint venture in which we have a 50% interest. In connection with this loan, we and our joint venture partner provided customary limited recourse guaranties in which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding. The limited guaranties include, but are not limited to: (i) completion of certain aspects of the project; (ii) an environmental indemnity provided to the lender; and (iii) an indemnification of the lender from certain "bad boy acts" of the joint venture. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Our notes payable are summarized as follows ($000’s omitted): December 31, 2018 2017 4.250% unsecured senior notes due March 2021 (a) $ 700,000 $ 700,000 5.500% unsecured senior notes due March 2026 (a) 700,000 700,000 5.000% unsecured senior notes due January 2027 (a) 600,000 600,000 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 (b) (13,247 ) (13,057 ) Total senior notes $ 2,986,753 $ 2,986,943 Other notes payable 41,313 20,024 Notes payable $ 3,028,066 $ 3,006,967 Estimated fair value $ 2,899,143 $ 3,263,774 (a) Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. (b) 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. The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2018 , we were in compliance with all of the covenants and requirements under the senior notes. Refer to Note 12 for supplemental consolidating financial information of the Company. In February 2016 , we issued $1.0 billion of unsecured senior notes, consisting of $300.0 million of 4.25% senior notes due March 1, 2021 , and $700.0 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 unsecured senior notes, consisting of an additional $400.0 million of the 4.25% senior notes due March 1, 2021 , and $600.0 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 a then existing term loan facility. 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. We retired outstanding debt totaling $82.8 million , $134.7 million , and $986.9 million during 2018 , 2017 , and 2016 , respectively. Certain debt retirements occurred prior to the stated maturity dates and resulted in losses totaling $0.7 million in 2016 . Losses on debt repurchase transactions include the write-off of unamortized discounts, premiums, and transaction fees related to the repurchased debt and are reflected in other expense, net. Other notes payable include non-recourse and limited recourse collateralized notes with third parties that totaled $41.3 million and $20.0 million at December 31, 2018 and 2017 , respectively. These notes have maturities ranging up to three years , are secured by the applicable land positions to which they relate, and have no recourse to any other assets. The stated interest rates on these notes range up to 7.57% . Revolving credit facility In June 2018, we entered into the Second Amended and Restated Credit Agreement ("Revolving Credit Facility") which replaced the Company's previous credit agreement. The Revolving Credit Facility contains substantially similar terms to the previous credit agreement and extended the maturity date from June 2019 to June 2023 . The Revolving Credit Facility has a maximum borrowing capacity of $1.0 billion and contains an uncommitted accordion feature that could increase the capacity to $1.5 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 $500.0 million at December 31, 2018 . 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 therein. In the event that LIBOR is no longer widely available, the agreement contemplates transitioning to an alternative widely available market rate agreeable between the parties. We had no borrowings outstanding and $239.4 million and $235.5 million of letters of credit issued under the Revolving Credit Facility at December 31, 2018 and 2017 , 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 December 31, 2018 , we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. Our available and unused borrowings under the Revolving Credit Facility, net of outstanding letters of credit, amounted to $760.6 million and $764.5 million as of December 31, 2018 and 2017 , respectively. Pulte Mortgage Pulte Mortgage maintains a master repurchase agreement with third party lenders. In August 2018 , Pulte Mortgage entered into an amended and restated repurchase agreement (the “Repurchase Agreement”) that extended the maturity date to August 2019 . The maximum aggregate commitment was $520.0 million during the seasonally high borrowing period from December 26, 2018 through January 14, 2019 . Through maturity, the maximum aggregate commitment ranges from $240.0 million to $400.0 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 $348.4 million and $437.8 million outstanding under the Repurchase Agreement at December 31, 2018 , and 2017 , respectively, and was in compliance with its covenants and requirements as of such dates. The following is aggregate borrowing information for our mortgage operations ($000’s omitted): December 31, 2018 2017 Available credit lines $ 520,000 $ 475,000 Unused credit lines $ 171,588 $ 37,196 Weighted-average interest rate 4.27 % 3.55 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity Our declared quarterly cash dividends totaled $108.5 million , $110.0 million , and $122.2 million in 2018 , 2017 , and 2016 , respectively. Under a share repurchase program authorized by our Board of Directors, we repurchased 10.9 million , 35.4 million , and 30.9 million shares in 2018 , 2017 , and 2016 , respectively, for a total of $294.6 million , $910.3 million , and $600.0 million in 2018 , 2017 , and 2016 , respectively. At December 31, 2018 , we had remaining authorization to repurchase $299.9 million of common shares. Under our stock-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted shares and share units, generally related to the payment of tax obligations. During 2018 , 2017 , and 2016 , employees surrendered shares valued at $7.9 million , $6.0 million , and $3.2 million |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock compensation plans | Stock compensation plans We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted shares, restricted share units ("RSUs"), and performance shares to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not to exceed ten years . Non-employee directors are awarded an annual distribution of common shares. Options granted to employees generally vest incrementally over four years and are generally exercisable for ten years from the vest date. Shares issued upon the exercise of a stock option are from newly issued shares. RSUs represent the right to receive an equal number of common shares and are converted into common shares upon distribution. Restricted shares and RSUs generally cliff vest after three years . Both restricted share and RSU holders receive cash dividends during the vesting period. Performance shares vest upon attainment of the stated performance targets and minimum service requirements and are converted into common shares upon distribution. As of December 31, 2018 , there were 24.4 million shares that remained available for grant under the plan. Our stock compensation expense for the three years ended December 31, 2018 , is presented below ($000's omitted): 2018 2017 2016 Stock options $ — $ — $ — Restricted shares (including RSUs and performance shares) 20,145 24,207 18,626 Long-term incentive plans 8,145 9,476 3,602 $ 28,290 $ 33,683 $ 22,228 Stock options A summary of stock option activity for the three years ended December 31, 2018 , is presented below (000’s omitted, except per share data): 2018 2017 2016 Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Outstanding, beginning of year 1,168 $ 11 3,623 $ 12 6,040 $ 19 Granted — — — — — — Exercised (605 ) 11 (2,353 ) 12 (498 ) 12 Forfeited — — (102 ) 28 (1,919 ) 34 Outstanding, end of year 563 $ 12 1,168 $ 11 3,623 $ 12 Options exercisable at year end 563 $ 12 1,168 $ 11 3,623 $ 12 Weighted-average per share fair value of options granted during the year $ — $ — $ — The following table summarizes information about our options outstanding at December 31, 2018 : Options Outstanding Options Exercisable Number Outstanding (000's omitted) Weighted- Average Remaining Contract Life (in years) Weighted- Average Per Share Exercise Price Number Exercisable (000's omitted) Weighted- Average Per Share Exercise Price $0.01 to $10.00 71 2.1 $ 8 71 $ 8 $10.01 to $20.00 492 0.8 12 492 12 563 1.2 $ 12 563 $ 12 We did not issue any stock options during 2018 , 2017 , or 2016 . As a result, there is no unrecognized compensation cost related to stock option awards at December 31, 2018 . The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of stock options that were exercised during 2018 , 2017 , and 2016 was $11.7 million , $31.1 million , and $4.5 million , respectively. As of December 31, 2018 , options outstanding, all of which were exercisable, had an intrinsic value of $8.1 million . Restricted shares (including RSUs and performance shares) A summary of restricted share activity, including RSUs and performance shares, for the three years ended December 31, 2018 , is presented below (000’s omitted, except per share data): 2018 2017 2016 Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Outstanding, beginning of year 3,271 $ 19 2,974 $ 19 2,576 $ 18 Granted 833 31 1,251 21 1,853 17 Distributed (786 ) 22 (775 ) 19 (546 ) 20 Forfeited (244 ) 22 (179 ) 19 (909 ) 12 Outstanding, end of year 3,074 $ 23 3,271 $ 19 2,974 $ 19 Vested, end of year 129 $ 21 152 $ 17 123 $ 15 During 2018 , 2017 , and 2016 , the total fair value of shares vested during the year was $17.1 million , $15.0 million , and $11.0 million , respectively. Unamortized compensation cost related to restricted share awards was $19.0 million at December 31, 2018 . These costs will be expensed over a weighted-average period of approximately 2 years . Additionally, there were 129,115 RSUs outstanding at December 31, 2018 , that had vested but had not yet been paid out because the payout date had been deferred by the holders. Long-term incentive plans We maintain long-term incentive plans for senior management and other employees that provide awards based on the achievement of stated performance targets over three -year periods. Awards are stated in dollars but are settled in common shares based on the stock price at the end of the performance period. If the share price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We adjust the liabilities and recognize the expense associated with the awards based on the probability of achieving the stated performance targets at each reporting period. Liabilities for these awards totaled $17.0 million and $14.0 million at December 31, 2018 and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, the following that impact us: (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) eliminating the corporate alternative minimum tax; (3) creating a new limitation on deductible interest expense; (4) repealing the domestic production activities deduction; (5) limiting the deductibility of certain executive compensation; and (6) limiting certain other deductions. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides for a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting relating to the Tax Act under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. As the result of our initial analysis of the impact of the Tax Act, we recorded a provisional amount of net tax expense of $172.1 million in 2017 related to the remeasurement of our deferred tax balances and other effects. We completed our accounting for the income tax effects of the Tax Act in 2018, and no material adjustments were required to the provisional amounts initially recorded. Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2018 2017 2016 Current expense (benefit) Federal $ (44,462 ) $ 81,101 $ 9,464 State and other 7,202 (11,801 ) (13,104 ) $ (37,260 ) $ 69,300 $ (3,640 ) Deferred expense (benefit) Federal $ 271,544 $ 444,695 $ 312,288 State and other 91,233 (22,388 ) 22,499 $ 362,777 $ 422,307 $ 334,787 Income tax expense (benefit) $ 325,517 $ 491,607 $ 331,147 The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2018 2017 2016 Income taxes at federal statutory rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax 4.0 3.1 3.3 Tax accounting method change (2.5 ) — — Changes in tax laws, including the Tax Act 1.0 18.3 0.5 Deferred tax asset valuation allowance 0.9 (1.1 ) (2.2 ) Tax contingencies 0.1 (1.0 ) (1.3 ) Other (0.3 ) (1.9 ) 0.2 Effective rate 24.2 % 52.4 % 35.5 % The 2018 effective tax rate differs from the federal statutory rate primarily due to state income tax expense on current year earnings, tax benefits due to Internal Revenue Service (IRS) acceptance of a tax accounting method change applicable to the 2017 tax year, valuation allowances relating to projected utilization of certain state net operating loss carryforwards, and state tax law changes. The acceptance of the tax accounting method change provided a deferral of profit and acceleration of certain costs associated with home sales, which resulted in a favorable adjustment in 2018 due to the tax rate reduction in the Tax Act. The 2017 effective tax rate differs from the federal statutory rate primarily due to the impacts of the Tax Act, state income tax expense on current year earnings, the favorable resolution of certain state income tax matters, the domestic production activities deduction, and state tax law changes. The 2016 effective tax rate differs from the federal statutory rate primarily due to state income taxes, the reversal of a portion of our valuation allowance related to a legal entity restructuring, the favorable resolution of certain state income tax matters, the impact on our net deferred tax assets due to changes in business operations and state tax laws, and recognition of energy efficient home credits. As a result of the adoption of ASU No. 2016-09, excess tax benefits related to equity compensation are recorded as a component of income tax expense, pursuant to which we recorded a cumulative-effect adjustment to increase retained earnings and deferred tax assets as of January 1, 2017 by $18.6 million for previously unrecognized excess tax benefits. Deferred tax assets and liabilities reflect temporary differences arising from the different treatment of items for tax and accounting purposes. Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2018 2017 Deferred tax assets: Accrued insurance $ 117,682 $ 117,133 Inventory valuation reserves 132,495 202,791 Other reserves 60,585 78,271 NOL carryforwards: Federal 27,122 41,282 State 228,959 248,224 Alternative minimum tax credit carryforwards 2,546 54,965 Energy and other credit carryforwards 5,146 41,763 574,535 784,429 Deferred tax liabilities: Capitalized items, including real estate basis differences, deducted for tax, net (1,038 ) (17,895 ) Deferral of profit on home sales (188,628 ) (34,769 ) Intangibles (16,701 ) (17,860 ) (206,367 ) (70,524 ) Valuation allowance (92,589 ) (68,610 ) Net deferred tax asset $ 275,579 $ 645,295 Our federal NOL carryforward deferred tax asset of $27.1 million expires, if unused, between 2031 and 2032 . We also have state NOLs in various jurisdictions which may generally be carried forward up to 20 years, depending on the jurisdiction. Our NOL carryforward deferred tax assets will expire if unused at various dates as follows: $32.6 million from 2019 to 2023 and $196.4 million from 2024 and thereafter. We evaluate our deferred tax assets each period to determine if a valuation allowance is required based on whether it is "more likely than not" that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods. We conduct our evaluation by considering all available positive and negative evidence. This evaluation considers, among other factors, historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. housing industry and broader economy. Our ability to use certain of Centex’s federal losses and credits is limited by Section 382 of the Internal Revenue Code. We do not believe that this limitation will prevent us from utilizing these Centex losses and credits. We do believe that full utilization of certain state NOL carryforwards will be limited due to Section 382. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We had $30.6 million and $48.6 million of gross unrecognized tax benefits at December 31, 2018 and 2017 , respectively. If recognized, $19.7 million and $23.4 million , respectively, of these amounts would impact our effective tax rate. Additionally, we had accrued interest and penalties of $5.8 million and $4.9 million at December 31, 2018 and 2017 , respectively. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $16.6 million , excluding interest and penalties, primarily due to potential settlements. A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2018 2017 2016 Unrecognized tax benefits, beginning of period $ 48,604 $ 21,502 $ 38,992 Increases related to tax positions taken during a prior period 5,389 20,555 224 Decreases related to tax positions taken during a prior period (31,850 ) (9,665 ) (13,218 ) Increases related to tax positions taken during the current period 8,411 18,895 114 Decreases related to settlements with taxing authorities — — (707 ) Reductions as a result of a lapse of the applicable statute of limitations — (2,683 ) (3,903 ) Unrecognized tax benefits, end of period $ 30,554 $ 48,604 $ 21,502 We continue to participate in the Compliance Assurance Process (“CAP”) with the IRS as an alternative to the traditional IRS examination process. As a result of our participation in CAP, federal tax years 2016 and prior are closed. Tax year 2017 is expected to close by the second quarter of 2019. We are also currently under examination by various state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The outcome of these examinations is not yet determinable. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 2005 to 2018 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Fair value disclosures ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy can be summarized as follows: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 461,354 $ 570,600 Interest rate lock commitments Level 2 9,035 5,583 Forward contracts Level 2 (6,914 ) (385 ) Whole loan commitments Level 2 (718 ) (147 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 18,253 $ 11,045 Land held for sale Level 2 17,813 8,600 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 1,133,700 $ 306,168 Financial Services debt Level 2 348,412 437,804 Other notes payable Level 2 41,313 20,024 Senior notes payable Level 2 2,857,830 3,243,750 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, and 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 value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. The carrying amounts of cash and equivalents, Financial Services debt, Other notes payable and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of the Senior notes payable 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 the senior notes payable was $3.0 billion at both December 31, 2018 and 2017 |
Other Assets and Accrued and Ot
Other Assets and Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Other assets and accrued and other liabilities | Other assets and accrued and other liabilities Other assets are presented below ($000’s omitted): December 31, 2018 2017 Accounts and notes receivable: Insurance receivables (Note 11) $ 152,987 $ 213,407 Notes receivable 13,850 16,768 Other receivables 122,469 76,309 289,306 306,484 Prepaid expenses 131,523 116,912 Deposits and pre-acquisition costs (Note 1) 218,568 207,987 Property and equipment, net (Note 1) 92,935 70,706 Income taxes receivable 58,090 6,964 Other 39,937 36,070 $ 830,359 $ 745,123 We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 11 ) and municipalities. In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. Accrued and other liabilities are presented below ($000’s omitted): December 31, 2018 2017 Self-insurance liabilities (Note 11) $ 737,013 $ 758,812 Compensation-related liabilities 161,068 134,008 Warranty liabilities (Note 11) 79,154 72,709 Accrued interest 52,521 50,620 Loan origination liabilities (Note 11) 50,282 34,641 Other 280,445 305,543 $ 1,360,483 $ 1,356,333 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Leases We lease certain property and equipment under non-cancelable operating leases. The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2018 , are as follows ($000’s omitted): Years Ending December 31, 2019 $ 24,806 2020 19,407 2021 16,146 2022 14,469 2023 12,800 Thereafter 25,868 Total minimum lease payments $ 113,496 Net rental expense for 2018 , 2017 , and 2016 was $33.6 million , $30.8 million , and $33.0 million , respectively. Certain leases contain renewal or purchase options and generally provide that we pay for insurance, taxes, and maintenance. Loan origination liabilities Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. If a loan is determined to be faulty, we either indemnify the investor for potential future losses, repurchase the loan from the investor, or reimburse the investor's actual losses. CTX Mortgage Company, LLC ("CTX Mortgage") was the mortgage subsidiary of Centex and ceased originating loans in December 2009. In the matter Lehman Brothers Holdings, Inc. ("Lehman") in the U.S. Bankruptcy Court in the Southern District of New York, Lehman has initiated an adversary proceeding against CTX Mortgage seeking indemnity for loans sold to it by CTX Mortgage prior to 2009. This claim is part of a broader action by Lehman in U.S. Bankruptcy Court against more than 100 mortgage originators and brokers. On August 13, 2018, the court denied a motion to dismiss filed by CTX Mortgage and other defendants, and on December 17, 2018, Lehman filed an amended adversary complaint against CTX Mortgage. Lehman's complaint alleges claims for indemnifiable losses of up to $261 million due from CTX Mortgage. We believe that CTX Mortgage has meritorious defenses and CTX Mortgage will continue to vigorously defend itself in this matter. We have recorded a liability for an amount that we consider to be the best estimate within a range of potential losses. In addition, both CTX Mortgage and Pulte Mortgage sold certain loans originated prior to 2009 to financial institutions for inclusion in residential mortgage-backed securities or other securitizations issued by such financial institutions. In connection with such sales, CTX Mortgage and Pulte Mortgage have been put on notice of potential direct and / or third-party claims for indemnification arising out of litigation relating to certain of these residential mortgage-backed securities or other securitizations. Neither CTX Mortgage nor Pulte Mortgage is named as a defendant in these actions. We cannot yet quantify CTX Mortgage's or Pulte Mortgage's potential liability as a result of these indemnification obligations. We do not believe, however, that these matters will have a material adverse impact on the results of operations, financial position, or cash flows of the Company. Estimating the required liability for these potential losses requires a significant level of management judgment. During 2018 , we increased our loan origination liabilities by $16.1 million based on settlements or probable settlements of a number of claims related to loans originated by CTX Mortgage prior to 2009. Reserves provided (released) are reflected in Financial Services expenses. Changes in these liabilities were as follows ($000's omitted): 2018 2017 2016 Liabilities, beginning of period $ 34,641 $ 35,114 $ 46,381 Reserves provided (released), net 16,130 (50 ) 506 Payments (489 ) (423 ) (11,773 ) Liabilities, end of period $ 50,282 $ 34,641 $ 35,114 Given the unsettled litigation, changes in values of underlying collateral over time, unpredictable factors inherent in litigation, and other uncertainties regarding the ultimate resolution of these claims, actual costs could differ from our current estimates. Community development and other special district obligations A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period during which we are the landowner of the applicable parcels. 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 $239.4 million and $1.3 billion , respectively, at December 31, 2018 , and $235.5 million and $1.2 billion , respectively, at December 31, 2017 . In the event any such letter of credit or surety bonds is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be drawn. Our surety bonds generally do not have stated expiration dates; rather we are released from the surety bonds as the underlying contractual performance is completed. Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed. Litigation and regulatory matters We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. During 2016, we settled a contract dispute related to a land transaction that we terminated over 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 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 projected cost of claims. 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): 2018 2017 2016 Warranty liabilities, beginning of period $ 72,709 $ 66,134 $ 61,179 Reserves provided 65,567 50,014 67,169 Payments (64,525 ) (58,780 ) (55,892 ) Other adjustments (a) 5,403 15,341 (6,322 ) Warranty liabilities, end of period $ 79,154 $ 72,709 $ 66,134 (a) Includes a charge of $12.4 million in 2017 related to estimated costs to complete repairs in a closed-out community in Florida. 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, windows, roofing, and foundations. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require companies to maintain significant per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program provided by us. Policies issued by the captive insurance subsidiaries represent self-insurance of these risks by us. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. Our insurance coverage requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. Our recorded reserves for all such claims totaled $737.0 million and $758.8 million at December 31, 2018 and 2017 , respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 65% of the total general liability reserves at December 31, 2018 and 2017 . 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 fifteen 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 2018 , 2017 , and 2016 , we reduced reserves, primarily general liability reserves, by $35.9 million , $97.8 million , and $57.1 million respectively, as a result of changes in estimates resulting from actual claim experience observed being less than anticipated in previous actuarial projections. The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims. These changes in actuarial estimates did not involve any changes in actuarial methodology but did impact the development of estimates for future periods, which resulted in adjustments to the IBNR portion of our recorded liabilities. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): 2018 2017 2016 Balance, beginning of period $ 758,812 $ 831,058 $ 924,563 Reserves provided 93,156 98,176 97,916 Adjustments to previously recorded reserves (a) (35,873 ) (97,789 ) (57,132 ) Payments, net (a) (79,082 ) (72,633 ) (134,289 ) Balance, end of period $ 737,013 $ 758,812 $ 831,058 (a) Includes net changes in amounts expected to be recovered from our insurance carriers, which are recorded to other assets (see below). In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. As reflected in Note 10 , our receivables from insurance carriers totaled $153.0 million and $213.4 million at December 31, 2018 and 2017 , respectively. The insurance receivables relate to costs incurred or to be incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of both known and anticipated future construction defect claims that we believe to be insured related to previously closed homes. 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. The majority of the decrease in our insurance receivables during 2018 resulted from cash received from our insurance carriers. However, in 2017 , we recorded write-offs of $29.6 million associated with the resolution of various matters and are currently the plaintiff in an arbitration proceeding with one of our insurance carriers in regard to $25.0 million of recorded insurance receivables relating to the applicability of coverage to such costs under its policy. We believe collection of our recorded insurance receivables is probable based on the legal merits of our positions after review by legal counsel, 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. While the outcomes of these matters cannot be predicted with certainty, we do not |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor information | pplemental Guarantor information All of our senior notes are guaranteed jointly and severally on a senior basis by certain of our wholly-owned Homebuilding subsidiaries and certain other wholly-owned subsidiaries (collectively, the “Guarantors”). Such guaranties are full and unconditional. Our subsidiaries comprising the Financial Services segment along with certain other subsidiaries (collectively, the "Non-Guarantor Subsidiaries") do not guarantee the senior notes. In accordance with Rule 3-10 of Regulation S-X, supplemental consolidating financial information of the Company, including such information for the Guarantors, is presented below. Investments in subsidiaries are presented using the equity method of accounting. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 906,961 $ 203,127 $ — $ 1,110,088 Restricted cash — 22,406 1,206 — 23,612 Total cash, cash equivalents, and restricted cash — 929,367 204,333 — 1,133,700 House and land inventory — 7,157,665 95,688 — 7,253,353 Land held for sale — 36,849 — — 36,849 Residential mortgage loans available- for-sale — — 461,354 — 461,354 Investments in unconsolidated entities — 54,045 545 — 54,590 Other assets 66,154 579,452 184,753 — 830,359 Intangible assets — 127,192 — — 127,192 Deferred tax assets, net 282,874 — (7,295 ) — 275,579 Investments in subsidiaries and intercompany accounts, net 7,557,245 500,138 8,231,342 (16,288,725 ) — $ 7,906,273 $ 9,384,708 $ 9,170,720 $ (16,288,725 ) $ 10,172,976 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 90,158 $ 1,598,265 $ 278,713 $ — $ 1,967,136 Income tax liabilities 11,580 — — — 11,580 Financial Services debt — — 348,412 — 348,412 Notes payable 2,986,753 40,776 537 — 3,028,066 Total liabilities 3,088,491 1,639,041 627,662 — 5,355,194 Total shareholders’ equity 4,817,782 7,745,667 8,543,058 (16,288,725 ) 4,817,782 $ 7,906,273 $ 9,384,708 $ 9,170,720 $ (16,288,725 ) $ 10,172,976 CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 125,462 $ 147,221 $ — $ 272,683 Restricted cash — 32,339 1,146 — 33,485 Total cash, cash equivalents, and restricted cash — 157,801 148,367 — 306,168 House and land inventory — 7,053,087 94,043 — 7,147,130 Land held for sale — 68,384 — — 68,384 Residential mortgage loans available- for-sale — — 570,600 — 570,600 Investments in unconsolidated entities — 62,415 542 — 62,957 Other assets 9,417 592,045 143,661 — 745,123 Intangible assets — 140,992 — — 140,992 Deferred tax assets, net 646,227 — (932 ) — 645,295 Investments in subsidiaries and intercompany accounts, net 6,661,638 284,983 7,300,127 (14,246,748 ) — $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 89,388 $ 1,636,913 $ 274,626 $ — $ 2,000,927 Income tax liabilities 86,925 — — — 86,925 Financial Services debt — — 437,804 — 437,804 Notes payable 2,986,943 16,911 3,113 — 3,006,967 Total liabilities 3,163,256 1,653,824 715,543 — 5,532,623 Total shareholders’ equity 4,154,026 6,705,883 7,540,865 (14,246,748 ) 4,154,026 $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 9,694,703 $ 123,742 $ — $ 9,818,445 Land sale and other revenues — 162,012 2,492 — 164,504 — 9,856,715 126,234 — 9,982,949 Financial Services — — 205,382 — 205,382 — 9,856,715 331,616 — 10,188,331 Homebuilding Cost of Revenues: Home sale cost of revenues — (7,449,343 ) (91,594 ) — (7,540,937 ) Land sale cost of revenues — (125,016 ) (1,544 ) — (126,560 ) — (7,574,359 ) (93,138 ) — (7,667,497 ) Financial Services expenses — (563 ) (146,859 ) — (147,422 ) Selling, general, and administrative expenses — (974,858 ) (37,165 ) — (1,012,023 ) Other expense, net (580 ) (53,765 ) 40,496 — (13,849 ) Intercompany interest (7,835 ) — 7,835 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (8,415 ) 1,253,170 102,785 — 1,347,540 Income tax (expense) benefit 2,104 (304,218 ) (23,403 ) — (325,517 ) Income (loss) before equity in income (loss) of subsidiaries (6,311 ) 948,952 79,382 — 1,022,023 Equity in income (loss) of subsidiaries 1,028,334 73,097 782,948 (1,884,379 ) — Net income (loss) 1,022,023 1,022,049 862,330 (1,884,379 ) 1,022,023 Other comprehensive income (loss) 100 — — — 100 Comprehensive income (loss) $ 1,022,123 $ 1,022,049 $ 862,330 $ (1,884,379 ) $ 1,022,123 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 8,229,392 $ 94,592 $ — $ 8,323,984 Land sale and other revenues — 57,711 3,831 — 61,542 — 8,287,103 98,423 — 8,385,526 Financial Services — — 192,160 — 192,160 — 8,287,103 290,583 — 8,577,686 Homebuilding Cost of Revenues: Home sale cost of revenues — (6,385,167 ) (75,985 ) — (6,461,152 ) Land sale cost of revenues — (131,363 ) (3,086 ) — (134,449 ) — (6,516,530 ) (79,071 ) — (6,595,601 ) Financial Services expenses — (527 ) (118,762 ) — (119,289 ) Selling, general, and administrative expenses — (785,266 ) (106,315 ) — (891,581 ) Other expense, net (482 ) (63,050 ) 31,145 — (32,387 ) Intercompany interest (2,485 ) — 2,485 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (2,967 ) 921,730 20,065 — 938,828 Income tax (expense) benefit 1,127 (483,435 ) (9,299 ) — (491,607 ) Income (loss) before equity in income (loss) of subsidiaries (1,840 ) 438,295 10,766 — 447,221 Equity in income (loss) of subsidiaries 449,061 58,559 226,864 (734,484 ) — Net income (loss) 447,221 496,854 237,630 (734,484 ) 447,221 Other comprehensive income (loss) 81 — — — 81 Comprehensive income (loss) $ 447,302 $ 496,854 $ 237,630 $ (734,484 ) $ 447,302 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2016 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor Revenues: Homebuilding Home sale revenues $ — $ 7,427,757 $ 23,558 $ — $ 7,451,315 Land sale and other revenues — 41,642 2,447 — 44,089 — 7,469,399 26,005 — 7,495,404 Financial Services — — 181,126 — 181,126 — 7,469,399 207,131 — 7,676,530 Homebuilding Cost of Revenues: Home sale cost of revenues — (5,566,653 ) (21,321 ) — (5,587,974 ) Land sale cost of revenues — (30,156 ) (1,959 ) — (32,115 ) — (5,596,809 ) (23,280 ) — (5,620,089 ) Financial Services expenses — (533 ) (108,040 ) — (108,573 ) Selling, general, and administrative expenses — (907,748 ) (49,402 ) — (957,150 ) Other expense, net (1,321 ) (77,389 ) 21,842 — (56,868 ) Intercompany interest (1,980 ) — 1,980 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (3,301 ) 886,920 50,231 — 933,850 Income tax (expense) benefit 1,254 (312,486 ) (19,915 ) — (331,147 ) Income (loss) before equity in income (loss) of subsidiaries (2,047 ) 574,434 30,316 — 602,703 Equity in income (loss) of subsidiaries 604,750 58,078 457,716 (1,120,544 ) — Net income (loss) 602,703 632,512 488,032 (1,120,544 ) 602,703 Other comprehensive income (loss) 83 — — — 83 Comprehensive income (loss) $ 602,786 $ 632,512 $ 488,032 $ (1,120,544 ) $ 602,786 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 494,518 $ 791,350 $ 163,876 $ — $ 1,449,744 Cash flows from investing activities: Capital expenditures — (51,147 ) (7,892 ) — (59,039 ) Investment in unconsolidated subsidiaries — (1,000 ) — — (1,000 ) Other investing activities, net — 11,300 6,797 — 18,097 Net cash provided by (used in) investing activities — (40,847 ) (1,095 ) — (41,942 ) Cash flows from financing activities: Proceeds from debt, net of issuance costs (8,164 ) — — — (8,164 ) Repayments of debt — (81,758 ) (1,017 ) — (82,775 ) Borrowings under revolving credit facility 1,566,000 — — — 1,566,000 Repayments under revolving credit facility (1,566,000 ) — — — (1,566,000 ) Financial Services borrowings (repayments), net — — (89,393 ) — (89,393 ) Stock option exercises 6,555 — — — 6,555 Share repurchases (302,473 ) — — — (302,473 ) Dividends paid (104,020 ) — — — (104,020 ) Intercompany activities, net (86,416 ) 102,821 (16,405 ) — — Net cash provided by (used in) financing activities (494,518 ) 21,063 (106,815 ) — (580,270 ) Net increase (decrease) — 771,566 55,966 — 827,532 Cash, cash equivalents, and restricted cash at beginning of year — 157,801 148,367 — 306,168 Cash, cash equivalents, and restricted cash at end of year $ — $ 929,367 $ 204,333 $ — $ 1,133,700 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 309,757 $ 328,163 $ 25,157 $ — $ 663,077 Cash flows from investing activities: Capital expenditures — (25,432 ) (6,619 ) — (32,051 ) Investment in unconsolidated subsidiaries — (23,037 ) — — (23,037 ) Other investing activities, net — 5,778 (932 ) — 4,846 Net cash provided by (used in) investing activities — (42,691 ) (7,551 ) — (50,242 ) Cash flows from financing activities: Proceeds from debt, net of issuance costs — — — — — Repayments of debt (123,000 ) (10,301 ) (1,446 ) — (134,747 ) Borrowings under revolving credit facility 2,720,000 — — — 2,720,000 Repayments under revolving credit facility (2,720,000 ) — — — (2,720,000 ) Financial Services borrowings (repayments), net — — 106,183 — 106,183 Stock option exercises 27,720 — — — 27,720 Share repurchases (916,323 ) — — — (916,323 ) Dividends paid (112,748 ) — — — (112,748 ) Intercompany activities, net 814,594 (728,555 ) (86,039 ) — — Net cash provided by (used in) financing activities (309,757 ) (738,856 ) 18,698 — (1,029,915 ) Net increase (decrease) — (453,384 ) 36,304 — (417,080 ) Cash, cash equivalents, and restricted cash at beginning of year — 611,185 112,063 — 723,248 Cash, cash equivalents, and restricted cash at end of year $ — $ 157,801 $ 148,367 $ — $ 306,168 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 256,722 $ (102,054 ) $ (86,398 ) $ — $ 68,270 Cash flows from investing activities: Capital expenditures — (36,297 ) (2,998 ) — (39,295 ) Investment in unconsolidated subsidiaries — (14,539 ) — — (14,539 ) Cash used for business acquisitions — (430,458 ) — — (430,458 ) Other investing activities, net — 11,189 1,911 — 13,100 Net cash provided by (used in) investing activities — (470,105 ) (1,087 ) — (471,192 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 63,744 — 63,744 Proceeds from debt, net of issuance costs 1,991,937 4,000 — — 1,995,937 Repayments of debt (965,245 ) (21,235 ) (439 ) — (986,919 ) Borrowings under revolving credit facility 619,000 — — — 619,000 Repayments under revolving credit facility (619,000 ) — — — (619,000 ) Stock option exercises 5,845 — — — 5,845 Share repurchases (603,206 ) — — — (603,206 ) Dividends paid (124,666 ) — — — (124,666 ) Intercompany activities, net (561,387 ) 541,703 19,684 — — Net cash provided by (used in) financing activities (256,722 ) 524,468 82,989 — 350,735 Net increase (decrease) — (47,691 ) (4,496 ) — (52,187 ) Cash, cash equivalents, and restricted cash at beginning of year — 658,876 116,559 — 775,435 Cash, cash equivalents, and restricted cash at end of year $ — $ 611,185 $ 112,063 $ — $ 723,248 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results (unaudited) | Quarterly results (unaudited) UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2018 Homebuilding: Revenues $ 1,924,155 $ 2,516,958 $ 2,597,746 $ 2,944,091 $ 9,982,949 Cost of revenues (b) (1,471,488 ) (1,900,316 ) (1,976,220 ) (2,319,473 ) (7,667,497 ) Income before income taxes (c) 210,358 388,453 365,055 324,938 1,288,804 Financial Services: Revenues $ 45,938 $ 52,764 $ 51,620 $ 55,059 $ 205,382 Income before income taxes (d) 13,833 20,717 19,633 4,553 58,736 Consolidated results: Revenues $ 1,970,093 $ 2,569,722 $ 2,649,366 $ 2,999,150 $ 10,188,331 Income before income taxes 224,191 409,170 384,688 329,491 1,347,540 Income tax expense (53,440 ) (85,081 ) (95,153 ) (91,842 ) (325,517 ) Net income $ 170,751 $ 324,089 $ 289,535 $ 237,649 $ 1,022,023 Net income per share: Basic $ 0.59 $ 1.12 $ 1.01 $ 0.84 $ 3.56 Diluted $ 0.59 $ 1.12 $ 1.01 $ 0.84 $ 3.55 Number of shares used in calculation: Basic 286,683 285,276 283,489 278,964 283,578 Effect of dilutive securities 1,343 1,378 1,183 1,248 1,287 Diluted 288,026 286,654 284,672 280,212 284,865 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Cost of revenues includes land inventory impairments of $66.9 million and net realizable value adjustments on land held for sale of $9.0 million in the 4th Quarter. See Note 2 for a more complete discussion of land-related charges for the full year. (c) Homebuilding income before income taxes includes an insurance reserve reversal of $37.9 million in the 2nd Quarter (see Note 11 ) and write-offs of pre-acquisition costs of $9.6 million in the 4th Quarter (See Note 2 ). (d) Financial Services income before income taxes includes a charge related to loan origination liabilities of $16.2 million in the 4th Quarter (see Note 11 ). UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2017 Homebuilding: Revenues $ 1,588,111 $ 1,974,584 $ 2,084,106 $ 2,738,724 $ 8,385,526 Cost of revenues (b) (1,220,906 ) (1,637,536 ) (1,589,728 ) (2,147,431 ) (6,595,601 ) Income before income taxes (c) 125,762 103,599 250,463 385,508 865,332 Financial Services: Revenues $ 41,767 $ 47,275 $ 46,952 $ 56,166 $ 192,160 Income before income taxes 13,503 18,948 17,786 23,259 73,496 Consolidated results: Revenues $ 1,629,878 $ 2,021,859 $ 2,131,058 $ 2,794,890 $ 8,577,686 Income before income taxes 139,265 122,547 268,249 408,767 938,828 Income tax expense (47,747 ) (21,798 ) (90,710 ) (331,352 ) (491,607 ) Net income $ 91,518 $ 100,749 $ 177,539 $ 77,415 $ 447,221 Net income per share: Basic $ 0.29 $ 0.32 $ 0.59 $ 0.26 $ 1.45 Diluted $ 0.28 $ 0.32 $ 0.58 $ 0.26 $ 1.44 Number of shares used in calculation: Basic 317,756 312,315 298,538 292,174 305,089 Effect of dilutive securities 2,329 1,565 1,690 1,318 1,725 Diluted 320,085 313,880 300,228 293,492 306,814 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Cost of revenues includes land inventory impairments of $31.5 million and $57.5 million in the 2nd and 4th Quarters, respectively (see Note 2 ); net realizable value adjustments on land held for sale of $81.0 million in the 2nd Quarter (see Note 2 ); and a warranty charge of $12.4 million related to a closed-out community in the 2nd Quarter (see Note 11 ). (c) Homebuilding income before income taxes includes an $8.0 million impairment of an investment in an unconsolidated entity in the 2nd Quarter (see Note 2 ); write-offs of insurance receivables of $15.0 million , $5.3 million , and $9.3 million for the 1st, 3rd, and 4th Quarters, respectively (see Note 11 ); and insurance reserve reversals of $19.8 million and $75.3 million in the 2nd and 4th Quarters, respectively (see Note 11 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Consolidation Policy | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. | |
Business Combinations Policy [Policy Text Block] | Business acquisitions 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 Policy | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassification, Policy [Policy Text Block] | ||
Subsequent Events Policy | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). | |
Cash and Equivalents Policy | Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2018 and 2017 also included $40.9 million and $80.3 million | |
Restricted Cash Policy | We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements until title transfers to the homebuyer. Total cash, cash equivalents, and restricted cash includes restricted cash balances of $23.6 million and $33.5 million at December 31, 2018 and 2017 , respectively. | |
Investments in Unconsolidated Entities Policy | We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with Accounting Standards Codification (“ASC”) 323, “Investments – Equity Method and Joint Ventures” (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other expense, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 4 | |
Intangible Assets Policy | Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, was recorded as the result of the Wieland acquisition and totaled $40.4 million at December 31, 2018 and 2017 . We assess goodwill for impairment annually in the fourth quarter and if events or changes in circumstances indicate the carrying amount may not be recoverable. Intangible assets also include tradenames acquired in connection with the 2016 acquisition of Wieland, the 2009 acquisition of Centex, and the 2001 acquisition of Del Webb, all of which are being amortized over 20 -year lives. The acquired cost and accumulated amortization of our tradenames were $277.0 million and $190.2 million , respectively, at December 31, 2018 , and $277.0 million and $176.4 million , respectively, at December 31, 2017 . Amortization expense totaled $13.8 million in 2018 , 2017 , and 2016 , respectively, and is expected to be $13.8 million in 2019, $13.8 million in 2020, $10.4 million in 2021, and $5.7 million | |
Property and Equipment, Net and Depreciation Policy | Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: office furniture and equipment - 3 to 10 years; leasehold improvements - life of the lease; software and hardware - 3 to 5 years; model park improvements and furnishings - 1 to 5 years. Property and equipment are included in other assets and totaled $92.9 million net of accumulated depreciation of $209.3 million at December 31, 2018 and $70.7 million net of accumulated depreciation of $206.5 million at December 31, 2017 . Depreciation expense totaled $35.6 million , $37.2 million , and $40.2 million in 2018 , 2017 , and 2016 , respectively. | |
Advertising Costs Policy | Advertising costs are expensed to selling, general, and administrative expense as incurred and totaled $51.0 million , $45.0 million , and $50.7 million , in 2018 , 2017 , and 2016 | |
Employee Benefits Policy | We maintain a defined contribution retirement plan that covers substantially all of our employees. Company contributions to the plan totaled $17.9 million , $15.7 million , and $14.6 million in 2018 , 2017 , and 2016 , respectively. | |
Earnings Per Share Policy | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, adjusted for unvested shares, (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price of our common shares are considered anti-dilutive and excluded from the diluted earnings per share calculation. Our earnings per share excluded 1.8 million potentially dilutive instruments in 2016 . Anti-dilutive shares were immaterial in 2018 and 2017. | |
Share-based Compensation Policy | We measure compensation cost for restricted shares and restricted share units at fair value on the grant date. Fair value is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted shares and restricted share units, the majority of which cliff vest at the end of three years , ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. See Note 7 | |
Income Taxes Policy | The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We follow the provisions of ASC 740 which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including relevant facts and circumstances, applicable tax law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 8 . | |
Homebuilding Revenue Recognition Policy | Revenue recognition Home sale revenues - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities include customer deposit liabilities related to sold but undelivered homes, which totaled $254.6 million and $250.8 million at December 31, 2018 and 2017 , respectively. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. Land sale revenues - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied. During 2018 , we closed on a number of land sale transactions that generated gains totaling $31.4 million , as the proceeds from the sales exceeded the cost basis of the land. Substantially all performance obligations related to these transactions were satisfied at closing. Financial services revenues - Loan origination fees, commitment fees, and certain direct loan origination costs are recognized as incurred. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold. Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance brokerage commissions relate to commissions on home and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy, and related contract assets for estimated future renewal commissions are included in other assets and totaled $30.8 million at December 31, 2018 . Contract assets totaling $27.7 million were recognized on January 1, 2018, in conjunction with the adoption of Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606"). Refer to " New accounting pronouncements" within Note 1 for further discussion. | |
Sales Incentives Policy | When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. | |
Inventory and Cost of Revenues Policy | Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. | |
Land Held for Sale Policy | We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 2 | |
Land Option Agreements Policy | We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which may serve to reduce our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. See Note 2 . If an entity holding the land under option is a variable interest entity (“VIE”), our deposit represents a variable interest in that entity. No VIEs required consolidation at either December 31, 2018 or 2017 | |
Allowance for Warranties Policy | Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to 10 years. We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time revenue is recognized | |
Self-insured Risks Policy | We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. We also maintain builders' risk, property, errors and omissions, workers compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 11 . | |
Residential Mortgage Loans Available for Sale Policy | Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments” (“ASC 825”), we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” See Note 11 for discussion of the risks retained related to mortgage loan originations. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. At December 31, 2018 and 2017 , residential mortgage loans available-for-sale had an aggregate fair value of $461.4 million and $570.6 million , respectively, and an aggregate outstanding principal balance of $444.2 million and $553.5 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $0.7 million and $(2.2) million for the years ended December 31, 2018 and 2017 , respectively. These changes in fair value were substantially offset by changes in fair value of the corresponding hedging instruments. Net gains from the sale of mortgages during 2018 , 2017 , and 2016 were $111.3 million , $110.9 million , and $109.6 million | |
Mortgage Servicing Rights Policy | Mortgage servicing rights We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this exposure at the time the sale is recorded. Such reserves were immaterial at December 31, 2018 and 2017 | |
Loans Held for Investment Policy | We maintain a portfolio of loans that either have been repurchased from investors or were not saleable upon closing. We have the intent and ability to hold these loans for the foreseeable future or until maturity or payoff. These loans are reviewed annually for impairment, or when recoverability becomes doubtful. Loans held for investment are included in other assets and totaled $8.9 million and $11.2 million at December 31, 2018 and 2017 , respectively. | |
Interest Income on Mortgage Loans Policy | Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $11.3 million , $9.5 million , and $8.0 million in 2018 , 2017 , and 2016 , respectively. Loans are placed on non-accrual status once they become greater than 90 | |
Derivative Instruments and Hedging Activities Policy | We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At December 31, 2018 and 2017 , we had aggregate IRLCs of $285.0 million and $210.9 million , respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. 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 investor commitments, which are obligations of an 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 extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. At December 31, 2018 and 2017 , we had unexpired forward contracts of $511.0 million and $522.0 million , respectively, and whole loan investor commitments of $187.8 million and $203.1 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 IRLCs are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 | |
New Accounting Pronouncements Policy | ASC 842, "Leases", becomes effective for us for interim and annual periods beginning January 1, 2019. The standard requires that lease assets and liabilities be recognized on the balance sheet and that key information about leasing arrangements be disclosed. Upon adoption, we expect to recognize additional lease assets and liabilities of approximately $80 million to reflect the present value of remaining lease payments under existing leasing arrangements. While the recognition of such lease assets and liabilities will impact our consolidated balance sheet, we do not expect a material impact on our consolidated statements of operations or cash flows. We also do not expect significant changes to our business processes, systems, or internal controls as a result of implementing the standard. We have elected to apply the modified retrospective transition approach, so financial information will not be updated for periods prior to January 1, 2019. In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", 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. The standard 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. | |
Inventory, Interest Capitalization Policy | We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings.In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels | |
Fair Value of Financial Instruments Policy | Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, and 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 value included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. | |
Financing Receivables Policy | We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 11 | |
Legal Reserves Policy | We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. During 2016, we settled a contract dispute related to a land transaction that we terminated over 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense, net consists of the following ($000’s omitted): 2018 2017 2016 Write-offs of deposits and pre-acquisition costs (Note 2) $ (16,992 ) $ (11,367 ) $ (17,157 ) Lease exit and related costs (a) (240 ) (1,729 ) (11,643 ) Amortization of intangible assets (Note 1) (13,800 ) (13,800 ) (13,800 ) Interest expense (618 ) (503 ) (686 ) Interest income 7,593 2,537 3,236 Equity in earnings (loss) of unconsolidated entities ( Note 4 ) (b) 2,690 (1,985 ) 8,337 Miscellaneous, net (c) 7,518 (5,540 ) (25,155 ) Total other expense, net $ (13,849 ) $ (32,387 ) $ (56,868 ) (a) Lease exit and related costs 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) Includes an $8.0 million impairment of an investment in an unconsolidated entity in 2017 (see Note 2 ). (c) Miscellaneous, net includes a charge of $15.0 million in 2016 related to the settlement of a disputed land transaction (see Note 11 |
Schedule of Earnings Per Share of Common Stock | The following table presents the earnings per common share (000's omitted, except per share data): December 31, 2018 December 31, 2017 December 31, 2016 Numerator: Net income $ 1,022,023 $ 447,221 $ 602,703 Less: earnings distributed to participating securities (1,208 ) (1,192 ) (1,100 ) Less: undistributed earnings allocated to participating securities (9,984 ) (3,380 ) (3,622 ) Numerator for basic earnings per share $ 1,010,831 $ 442,649 $ 597,981 Add back: undistributed earnings allocated to participating securities 9,984 3,380 3,622 Less: undistributed earnings reallocated to participating securities (9,939 ) (3,361 ) (3,602 ) Numerator for diluted earnings per share $ 1,010,876 $ 442,668 $ 598,001 Denominator: Basic shares outstanding 283,578 305,089 339,747 Effect of dilutive securities 1,287 1,725 2,376 Diluted shares outstanding 284,865 306,814 342,123 Earnings per share: Basic $ 3.56 $ 1.45 $ 1.76 Diluted $ 3.55 $ 1.44 $ 1.75 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2018 December 31, 2017 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 90,717 $ 1,079,507 $ 78,889 $ 977,480 Other land options 127,851 1,522,903 129,098 1,485,099 $ 218,568 $ 2,602,410 $ 207,987 $ 2,462,579 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2018 December 31, 2017 Other Assets Other Liabilities Other Assets Other Liabilities Interest rate lock commitments $ 9,196 $ 161 $ 5,990 $ 407 Forward contracts 315 7,229 432 817 Whole loan commitments 393 1,111 794 941 $ 9,904 $ 8,501 $ 7,216 $ 2,165 |
Inventory And Land Held For S_2
Inventory And Land Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory at December 31, 2018 and 2017 were ($000’s omitted): 2018 2017 Homes under construction $ 2,630,158 $ 2,421,405 Land under development 4,129,225 4,135,814 Raw land 493,970 589,911 $ 7,253,353 $ 7,147,130 |
Capitalized Interest Rollforward | Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2018 2017 2016 Interest in inventory, beginning of period $ 226,611 $ 186,097 $ 149,498 Interest capitalized 172,809 181,719 160,506 Interest expensed (171,925 ) (141,205 ) (123,907 ) Interest in inventory, end of period $ 227,495 $ 226,611 $ 186,097 |
Land-related Charges | recorded the following land-related charges ($000's omitted): Statement of Operations Classification 2018 2017 2016 Net realizable value adjustments ("NRV") - land held for sale Land sale cost of revenues $ 11,489 $ 83,576 $ 1,105 Land impairments Home sale cost of revenues 70,965 88,952 1,074 Impairments of unconsolidated entities Other expense, net — 8,017 — Write-offs of deposits and pre-acquisition costs Other expense, net 16,992 11,367 17,157 Total land-related charges $ 99,446 $ 191,912 $ 19,336 |
Land Held for Sale | Land held for sale at December 31, 2018 and 2017 was as follows ($000’s omitted): 2018 2017 Land held for sale, gross $ 40,037 $ 142,070 Net realizable value reserves (3,188 ) (73,686 ) Land held for sale, net $ 36,849 $ 68,384 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Data By Reporting Segment | Operating Data by Segment ($000’s omitted) Years Ended December 31, 2018 2017 2016 Revenues: Northeast $ 839,700 $ 693,877 $ 699,718 Southeast 1,746,161 1,564,116 1,492,502 Florida 1,944,170 1,494,389 1,285,890 Midwest 1,497,389 1,450,192 1,235,198 Texas 1,301,004 1,168,755 1,035,428 West 2,654,525 2,014,197 1,746,668 9,982,949 8,385,526 7,495,404 Financial Services 205,382 192,160 181,126 Consolidated revenues $ 10,188,331 $ 8,577,686 $ 7,676,530 Income before income taxes (a) : Northeast (b) $ 29,629 $ 21,190 $ 81,991 Southeast 202,639 122,532 145,011 Florida (c) 289,418 208,825 205,049 Midwest 179,568 178,231 120,159 Texas 193,946 182,862 152,355 West (d) 511,828 229,504 225,771 Other homebuilding (e) (118,224 ) (77,812 ) (69,570 ) 1,288,804 865,332 860,766 Financial Services 58,736 73,496 73,084 Consolidated income before income taxes $ 1,347,540 $ 938,828 $ 933,850 (a) Includes certain land-related charges (see the following table and Note 2 ). (b) Northeast includes a charge of $15.0 million in 2016 related to the settlement of a disputed land transaction (see Note 11 ). (c) Florida includes a warranty charge of $12.4 million in 2017 related to a closed-out community (see Note 11 ). (d) West includes gains of $26.4 million in 2018 related to two land sale transactions in California. (e) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Also includes: write-off of $29.6 million of insurance receivables associated with the resolution of certain insurance matters in 2017 (see Note 11 ); general liability insurance reserve reversals of $35.9 million , $97.8 million , and $57.1 million in 2018 , 2017 and 2016 , respectively (see Note 11 ); and costs associated with the relocation of our corporate headquarters totaling $8.3 million in 2016 . Operating Data by Segment ($000's omitted) 2018 2017 2016 Land-related charges*: Northeast $ 74,488 $ 51,362 $ 2,079 Southeast 8,140 55,689 3,089 Florida 1,166 9,702 715 Midwest 7,361 8,917 3,383 Texas 1,204 2,521 515 West 5,159 56,995 8,960 Other homebuilding 1,928 6,726 595 $ 99,446 $ 191,912 $ 19,336 |
Land-Related Charges By Reporting Segment | Operating Data by Segment ($000's omitted) 2018 2017 2016 Land-related charges*: Northeast $ 74,488 $ 51,362 $ 2,079 Southeast 8,140 55,689 3,089 Florida 1,166 9,702 715 Midwest 7,361 8,917 3,383 Texas 1,204 2,521 515 West 5,159 56,995 8,960 Other homebuilding 1,928 6,726 595 $ 99,446 $ 191,912 $ 19,336 * Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. See Note 2 |
Depreciation and Amortization Expense by Reporting Segment | Operating Data by Segment ($000's omitted) Years Ended December 31, 2018 2017 2016 Depreciation and amortization: Northeast $ 2,093 $ 2,392 $ 2,133 Southeast 5,231 5,117 5,350 Florida 4,893 4,883 4,955 Midwest 4,271 4,449 5,099 Texas 3,082 3,301 3,673 West 6,758 5,828 6,739 Other homebuilding (a) 18,908 21,326 22,467 45,236 47,296 50,416 Financial Services 4,193 3,702 3,591 $ 49,429 $ 50,998 $ 54,007 (a) |
Equity in (Earnings) Loss of Unconsolidated Entities by Reporting Segment | Operating Data by Segment ($000's omitted) December 31, 2018 Homes Under Land Under Raw Land Total Total Northeast $ 268,900 $ 291,467 $ 52,245 $ 612,612 $ 704,515 Southeast 443,140 676,087 90,332 1,209,559 1,347,427 Florida 467,625 892,669 85,321 1,445,615 1,601,906 Midwest 314,442 433,056 29,908 777,406 849,596 Texas 284,405 427,124 98,415 809,944 881,629 West 805,709 1,131,841 118,579 2,056,129 2,208,092 Other homebuilding (a) 45,937 276,981 19,170 342,088 2,006,825 2,630,158 4,129,225 493,970 7,253,353 9,599,990 Financial Services — 572,986 $ 2,630,158 $ 4,129,225 $ 493,970 $ 7,253,353 $ 10,172,976 December 31, 2017 Homes Under Land Under Raw Land Total Total Northeast $ 234,413 $ 327,599 $ 73,574 $ 635,586 $ 791,511 Southeast 433,411 613,626 121,238 1,168,275 1,287,992 Florida 359,651 876,856 109,069 1,345,576 1,481,837 Midwest 299,896 476,694 28,482 805,072 877,282 Texas 251,613 435,018 87,392 774,023 859,847 West 798,706 1,137,940 147,493 2,084,139 2,271,328 Other homebuilding (a) 43,715 268,081 22,663 334,459 1,469,234 2,421,405 4,135,814 589,911 7,147,130 9,039,031 Financial Services — — — — 647,618 $ 2,421,405 $ 4,135,814 $ 589,911 $ 7,147,130 $ 9,686,649 December 31, 2016 Homes Under Land Under Raw Land Total Total Northeast $ 175,253 $ 375,899 $ 135,447 $ 686,599 $ 798,369 Southeast (a) 354,047 650,805 148,793 1,153,645 1,243,188 Florida 309,525 683,376 183,168 1,176,069 1,330,847 Midwest 256,649 474,287 50,302 781,238 851,457 Texas 219,606 413,312 74,750 707,668 793,917 West 580,082 1,226,190 159,387 1,965,659 2,200,058 Other homebuilding (a) 26,097 248,240 25,440 299,777 2,351,082 1,921,259 4,072,109 777,287 6,770,655 9,568,918 Financial Services — — — — 609,282 $ 1,921,259 $ 4,072,109 $ 777,287 $ 6,770,655 $ 10,178,200 |
Total Assets And Inventory By Reporting Segment | Operating Data by Segment ($000's omitted) December 31, 2018 Homes Under Land Under Raw Land Total Total Northeast $ 268,900 $ 291,467 $ 52,245 $ 612,612 $ 704,515 Southeast 443,140 676,087 90,332 1,209,559 1,347,427 Florida 467,625 892,669 85,321 1,445,615 1,601,906 Midwest 314,442 433,056 29,908 777,406 849,596 Texas 284,405 427,124 98,415 809,944 881,629 West 805,709 1,131,841 118,579 2,056,129 2,208,092 Other homebuilding (a) 45,937 276,981 19,170 342,088 2,006,825 2,630,158 4,129,225 493,970 7,253,353 9,599,990 Financial Services — 572,986 $ 2,630,158 $ 4,129,225 $ 493,970 $ 7,253,353 $ 10,172,976 December 31, 2017 Homes Under Land Under Raw Land Total Total Northeast $ 234,413 $ 327,599 $ 73,574 $ 635,586 $ 791,511 Southeast 433,411 613,626 121,238 1,168,275 1,287,992 Florida 359,651 876,856 109,069 1,345,576 1,481,837 Midwest 299,896 476,694 28,482 805,072 877,282 Texas 251,613 435,018 87,392 774,023 859,847 West 798,706 1,137,940 147,493 2,084,139 2,271,328 Other homebuilding (a) 43,715 268,081 22,663 334,459 1,469,234 2,421,405 4,135,814 589,911 7,147,130 9,039,031 Financial Services — — — — 647,618 $ 2,421,405 $ 4,135,814 $ 589,911 $ 7,147,130 $ 9,686,649 December 31, 2016 Homes Under Land Under Raw Land Total Total Northeast $ 175,253 $ 375,899 $ 135,447 $ 686,599 $ 798,369 Southeast (a) 354,047 650,805 148,793 1,153,645 1,243,188 Florida 309,525 683,376 183,168 1,176,069 1,330,847 Midwest 256,649 474,287 50,302 781,238 851,457 Texas 219,606 413,312 74,750 707,668 793,917 West 580,082 1,226,190 159,387 1,965,659 2,200,058 Other homebuilding (a) 26,097 248,240 25,440 299,777 2,351,082 1,921,259 4,072,109 777,287 6,770,655 9,568,918 Financial Services — — — — 609,282 $ 1,921,259 $ 4,072,109 $ 777,287 $ 6,770,655 $ 10,178,200 (a) |
Investments In Unconsolidated_2
Investments In Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Joint Ventures | A summary of our joint ventures is presented below ($000’s omitted): December 31, 2018 2017 Investments in joint ventures with limited recourse debt $ 31,551 $ 37,063 Investments in joint ventures with debt non-recourse to PulteGroup 3,471 3,567 Investments in other active joint ventures 19,568 22,327 Total investments in unconsolidated entities $ 54,590 $ 62,957 Total joint venture debt $ 42,948 $ 59,544 PulteGroup proportionate share of joint venture debt: Joint venture debt with limited recourse guaranties $ 21,059 $ 28,157 Joint venture debt non-recourse to PulteGroup 217 700 PulteGroup's total proportionate share of joint venture debt $ 21,276 $ 28,857 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our notes payable are summarized as follows ($000’s omitted): December 31, 2018 2017 4.250% unsecured senior notes due March 2021 (a) $ 700,000 $ 700,000 5.500% unsecured senior notes due March 2026 (a) 700,000 700,000 5.000% unsecured senior notes due January 2027 (a) 600,000 600,000 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 (b) (13,247 ) (13,057 ) Total senior notes $ 2,986,753 $ 2,986,943 Other notes payable 41,313 20,024 Notes payable $ 3,028,066 $ 3,006,967 Estimated fair value $ 2,899,143 $ 3,263,774 (a) Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. (b) |
Schedule of Financial Services available credit lines | The following is aggregate borrowing information for our mortgage operations ($000’s omitted): December 31, 2018 2017 Available credit lines $ 520,000 $ 475,000 Unused credit lines $ 171,588 $ 37,196 Weighted-average interest rate 4.27 % 3.55 % |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock Compensation Expense by Plan Type | Our stock compensation expense for the three years ended December 31, 2018 , is presented below ($000's omitted): 2018 2017 2016 Stock options $ — $ — $ — Restricted shares (including RSUs and performance shares) 20,145 24,207 18,626 Long-term incentive plans 8,145 9,476 3,602 $ 28,290 $ 33,683 $ 22,228 |
Stock Option Activity Rollforward | A summary of stock option activity for the three years ended December 31, 2018 , is presented below (000’s omitted, except per share data): 2018 2017 2016 Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Shares Weighted- Average Per Share Exercise Price Outstanding, beginning of year 1,168 $ 11 3,623 $ 12 6,040 $ 19 Granted — — — — — — Exercised (605 ) 11 (2,353 ) 12 (498 ) 12 Forfeited — — (102 ) 28 (1,919 ) 34 Outstanding, end of year 563 $ 12 1,168 $ 11 3,623 $ 12 Options exercisable at year end 563 $ 12 1,168 $ 11 3,623 $ 12 Weighted-average per share fair value of options granted during the year $ — $ — $ — |
Stock Options Weighted-average Remaining Contractual Lives | The following table summarizes information about our options outstanding at December 31, 2018 : Options Outstanding Options Exercisable Number Outstanding (000's omitted) Weighted- Average Remaining Contract Life (in years) Weighted- Average Per Share Exercise Price Number Exercisable (000's omitted) Weighted- Average Per Share Exercise Price $0.01 to $10.00 71 2.1 $ 8 71 $ 8 $10.01 to $20.00 492 0.8 12 492 12 563 1.2 $ 12 563 $ 12 |
Restricted Stock, RSUs, and Performance Shares Activity Rollforward | A summary of restricted share activity, including RSUs and performance shares, for the three years ended December 31, 2018 , is presented below (000’s omitted, except per share data): 2018 2017 2016 Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Shares Weighted- Average Per Share Grant Date Fair Value Outstanding, beginning of year 3,271 $ 19 2,974 $ 19 2,576 $ 18 Granted 833 31 1,251 21 1,853 17 Distributed (786 ) 22 (775 ) 19 (546 ) 20 Forfeited (244 ) 22 (179 ) 19 (909 ) 12 Outstanding, end of year 3,074 $ 23 3,271 $ 19 2,974 $ 19 Vested, end of year 129 $ 21 152 $ 17 123 $ 15 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2018 2017 2016 Current expense (benefit) Federal $ (44,462 ) $ 81,101 $ 9,464 State and other 7,202 (11,801 ) (13,104 ) $ (37,260 ) $ 69,300 $ (3,640 ) Deferred expense (benefit) Federal $ 271,544 $ 444,695 $ 312,288 State and other 91,233 (22,388 ) 22,499 $ 362,777 $ 422,307 $ 334,787 Income tax expense (benefit) $ 325,517 $ 491,607 $ 331,147 |
Effective Income Tax Rate Reconciliation | The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2018 2017 2016 Income taxes at federal statutory rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax 4.0 3.1 3.3 Tax accounting method change (2.5 ) — — Changes in tax laws, including the Tax Act 1.0 18.3 0.5 Deferred tax asset valuation allowance 0.9 (1.1 ) (2.2 ) Tax contingencies 0.1 (1.0 ) (1.3 ) Other (0.3 ) (1.9 ) 0.2 Effective rate 24.2 % 52.4 % 35.5 % |
Deferred Tax Assets and Liabilities | Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2018 2017 Deferred tax assets: Accrued insurance $ 117,682 $ 117,133 Inventory valuation reserves 132,495 202,791 Other reserves 60,585 78,271 NOL carryforwards: Federal 27,122 41,282 State 228,959 248,224 Alternative minimum tax credit carryforwards 2,546 54,965 Energy and other credit carryforwards 5,146 41,763 574,535 784,429 Deferred tax liabilities: Capitalized items, including real estate basis differences, deducted for tax, net (1,038 ) (17,895 ) Deferral of profit on home sales (188,628 ) (34,769 ) Intangibles (16,701 ) (17,860 ) (206,367 ) (70,524 ) Valuation allowance (92,589 ) (68,610 ) Net deferred tax asset $ 275,579 $ 645,295 |
Summary of Income Tax Contingencies | A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2018 2017 2016 Unrecognized tax benefits, beginning of period $ 48,604 $ 21,502 $ 38,992 Increases related to tax positions taken during a prior period 5,389 20,555 224 Decreases related to tax positions taken during a prior period (31,850 ) (9,665 ) (13,218 ) Increases related to tax positions taken during the current period 8,411 18,895 114 Decreases related to settlements with taxing authorities — — (707 ) Reductions as a result of a lapse of the applicable statute of limitations — (2,683 ) (3,903 ) Unrecognized tax benefits, end of period $ 30,554 $ 48,604 $ 21,502 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 461,354 $ 570,600 Interest rate lock commitments Level 2 9,035 5,583 Forward contracts Level 2 (6,914 ) (385 ) Whole loan commitments Level 2 (718 ) (147 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 18,253 $ 11,045 Land held for sale Level 2 17,813 8,600 Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 $ 1,133,700 $ 306,168 Financial Services debt Level 2 348,412 437,804 Other notes payable Level 2 41,313 20,024 Senior notes payable Level 2 2,857,830 3,243,750 |
Other Assets and Accrued and _2
Other Assets and Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Schedule of Other Assets | Other assets are presented below ($000’s omitted): December 31, 2018 2017 Accounts and notes receivable: Insurance receivables (Note 11) $ 152,987 $ 213,407 Notes receivable 13,850 16,768 Other receivables 122,469 76,309 289,306 306,484 Prepaid expenses 131,523 116,912 Deposits and pre-acquisition costs (Note 1) 218,568 207,987 Property and equipment, net (Note 1) 92,935 70,706 Income taxes receivable 58,090 6,964 Other 39,937 36,070 $ 830,359 $ 745,123 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities are presented below ($000’s omitted): December 31, 2018 2017 Self-insurance liabilities (Note 11) $ 737,013 $ 758,812 Compensation-related liabilities 161,068 134,008 Warranty liabilities (Note 11) 79,154 72,709 Accrued interest 52,521 50,620 Loan origination liabilities (Note 11) 50,282 34,641 Other 280,445 305,543 $ 1,360,483 $ 1,356,333 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of one year as of December 31, 2018 , are as follows ($000’s omitted): Years Ending December 31, 2019 $ 24,806 2020 19,407 2021 16,146 2022 14,469 2023 12,800 Thereafter 25,868 Total minimum lease payments $ 113,496 |
Summary of Changes in Loan Origination Liability | Changes in these liabilities were as follows ($000's omitted): 2018 2017 2016 Liabilities, beginning of period $ 34,641 $ 35,114 $ 46,381 Reserves provided (released), net 16,130 (50 ) 506 Payments (489 ) (423 ) (11,773 ) Liabilities, end of period $ 50,282 $ 34,641 $ 35,114 |
Summary of Changes in Warranty Liability | Changes to warranty liabilities were as follows ($000’s omitted): 2018 2017 2016 Warranty liabilities, beginning of period $ 72,709 $ 66,134 $ 61,179 Reserves provided 65,567 50,014 67,169 Payments (64,525 ) (58,780 ) (55,892 ) Other adjustments (a) 5,403 15,341 (6,322 ) Warranty liabilities, end of period $ 79,154 $ 72,709 $ 66,134 |
Summary of Changes in Self-insurance Liability | Changes in these liabilities were as follows ($000's omitted): 2018 2017 2016 Balance, beginning of period $ 758,812 $ 831,058 $ 924,563 Reserves provided 93,156 98,176 97,916 Adjustments to previously recorded reserves (a) (35,873 ) (97,789 ) (57,132 ) Payments, net (a) (79,082 ) (72,633 ) (134,289 ) Balance, end of period $ 737,013 $ 758,812 $ 831,058 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 906,961 $ 203,127 $ — $ 1,110,088 Restricted cash — 22,406 1,206 — 23,612 Total cash, cash equivalents, and restricted cash — 929,367 204,333 — 1,133,700 House and land inventory — 7,157,665 95,688 — 7,253,353 Land held for sale — 36,849 — — 36,849 Residential mortgage loans available- for-sale — — 461,354 — 461,354 Investments in unconsolidated entities — 54,045 545 — 54,590 Other assets 66,154 579,452 184,753 — 830,359 Intangible assets — 127,192 — — 127,192 Deferred tax assets, net 282,874 — (7,295 ) — 275,579 Investments in subsidiaries and intercompany accounts, net 7,557,245 500,138 8,231,342 (16,288,725 ) — $ 7,906,273 $ 9,384,708 $ 9,170,720 $ (16,288,725 ) $ 10,172,976 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 90,158 $ 1,598,265 $ 278,713 $ — $ 1,967,136 Income tax liabilities 11,580 — — — 11,580 Financial Services debt — — 348,412 — 348,412 Notes payable 2,986,753 40,776 537 — 3,028,066 Total liabilities 3,088,491 1,639,041 627,662 — 5,355,194 Total shareholders’ equity 4,817,782 7,745,667 8,543,058 (16,288,725 ) 4,817,782 $ 7,906,273 $ 9,384,708 $ 9,170,720 $ (16,288,725 ) $ 10,172,976 CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 125,462 $ 147,221 $ — $ 272,683 Restricted cash — 32,339 1,146 — 33,485 Total cash, cash equivalents, and restricted cash — 157,801 148,367 — 306,168 House and land inventory — 7,053,087 94,043 — 7,147,130 Land held for sale — 68,384 — — 68,384 Residential mortgage loans available- for-sale — — 570,600 — 570,600 Investments in unconsolidated entities — 62,415 542 — 62,957 Other assets 9,417 592,045 143,661 — 745,123 Intangible assets — 140,992 — — 140,992 Deferred tax assets, net 646,227 — (932 ) — 645,295 Investments in subsidiaries and intercompany accounts, net 6,661,638 284,983 7,300,127 (14,246,748 ) — $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, accrued and other liabilities $ 89,388 $ 1,636,913 $ 274,626 $ — $ 2,000,927 Income tax liabilities 86,925 — — — 86,925 Financial Services debt — — 437,804 — 437,804 Notes payable 2,986,943 16,911 3,113 — 3,006,967 Total liabilities 3,163,256 1,653,824 715,543 — 5,532,623 Total shareholders’ equity 4,154,026 6,705,883 7,540,865 (14,246,748 ) 4,154,026 $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 |
Consolidating Statement Of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 9,694,703 $ 123,742 $ — $ 9,818,445 Land sale and other revenues — 162,012 2,492 — 164,504 — 9,856,715 126,234 — 9,982,949 Financial Services — — 205,382 — 205,382 — 9,856,715 331,616 — 10,188,331 Homebuilding Cost of Revenues: Home sale cost of revenues — (7,449,343 ) (91,594 ) — (7,540,937 ) Land sale cost of revenues — (125,016 ) (1,544 ) — (126,560 ) — (7,574,359 ) (93,138 ) — (7,667,497 ) Financial Services expenses — (563 ) (146,859 ) — (147,422 ) Selling, general, and administrative expenses — (974,858 ) (37,165 ) — (1,012,023 ) Other expense, net (580 ) (53,765 ) 40,496 — (13,849 ) Intercompany interest (7,835 ) — 7,835 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (8,415 ) 1,253,170 102,785 — 1,347,540 Income tax (expense) benefit 2,104 (304,218 ) (23,403 ) — (325,517 ) Income (loss) before equity in income (loss) of subsidiaries (6,311 ) 948,952 79,382 — 1,022,023 Equity in income (loss) of subsidiaries 1,028,334 73,097 782,948 (1,884,379 ) — Net income (loss) 1,022,023 1,022,049 862,330 (1,884,379 ) 1,022,023 Other comprehensive income (loss) 100 — — — 100 Comprehensive income (loss) $ 1,022,123 $ 1,022,049 $ 862,330 $ (1,884,379 ) $ 1,022,123 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 8,229,392 $ 94,592 $ — $ 8,323,984 Land sale and other revenues — 57,711 3,831 — 61,542 — 8,287,103 98,423 — 8,385,526 Financial Services — — 192,160 — 192,160 — 8,287,103 290,583 — 8,577,686 Homebuilding Cost of Revenues: Home sale cost of revenues — (6,385,167 ) (75,985 ) — (6,461,152 ) Land sale cost of revenues — (131,363 ) (3,086 ) — (134,449 ) — (6,516,530 ) (79,071 ) — (6,595,601 ) Financial Services expenses — (527 ) (118,762 ) — (119,289 ) Selling, general, and administrative expenses — (785,266 ) (106,315 ) — (891,581 ) Other expense, net (482 ) (63,050 ) 31,145 — (32,387 ) Intercompany interest (2,485 ) — 2,485 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (2,967 ) 921,730 20,065 — 938,828 Income tax (expense) benefit 1,127 (483,435 ) (9,299 ) — (491,607 ) Income (loss) before equity in income (loss) of subsidiaries (1,840 ) 438,295 10,766 — 447,221 Equity in income (loss) of subsidiaries 449,061 58,559 226,864 (734,484 ) — Net income (loss) 447,221 496,854 237,630 (734,484 ) 447,221 Other comprehensive income (loss) 81 — — — 81 Comprehensive income (loss) $ 447,302 $ 496,854 $ 237,630 $ (734,484 ) $ 447,302 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the year ended December 31, 2016 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor Revenues: Homebuilding Home sale revenues $ — $ 7,427,757 $ 23,558 $ — $ 7,451,315 Land sale and other revenues — 41,642 2,447 — 44,089 — 7,469,399 26,005 — 7,495,404 Financial Services — — 181,126 — 181,126 — 7,469,399 207,131 — 7,676,530 Homebuilding Cost of Revenues: Home sale cost of revenues — (5,566,653 ) (21,321 ) — (5,587,974 ) Land sale cost of revenues — (30,156 ) (1,959 ) — (32,115 ) — (5,596,809 ) (23,280 ) — (5,620,089 ) Financial Services expenses — (533 ) (108,040 ) — (108,573 ) Selling, general, and administrative expenses — (907,748 ) (49,402 ) — (957,150 ) Other expense, net (1,321 ) (77,389 ) 21,842 — (56,868 ) Intercompany interest (1,980 ) — 1,980 — — Income (loss) before income taxes and equity in income (loss) of subsidiaries (3,301 ) 886,920 50,231 — 933,850 Income tax (expense) benefit 1,254 (312,486 ) (19,915 ) — (331,147 ) Income (loss) before equity in income (loss) of subsidiaries (2,047 ) 574,434 30,316 — 602,703 Equity in income (loss) of subsidiaries 604,750 58,078 457,716 (1,120,544 ) — Net income (loss) 602,703 632,512 488,032 (1,120,544 ) 602,703 Other comprehensive income (loss) 83 — — — 83 Comprehensive income (loss) $ 602,786 $ 632,512 $ 488,032 $ (1,120,544 ) $ 602,786 |
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 494,518 $ 791,350 $ 163,876 $ — $ 1,449,744 Cash flows from investing activities: Capital expenditures — (51,147 ) (7,892 ) — (59,039 ) Investment in unconsolidated subsidiaries — (1,000 ) — — (1,000 ) Other investing activities, net — 11,300 6,797 — 18,097 Net cash provided by (used in) investing activities — (40,847 ) (1,095 ) — (41,942 ) Cash flows from financing activities: Proceeds from debt, net of issuance costs (8,164 ) — — — (8,164 ) Repayments of debt — (81,758 ) (1,017 ) — (82,775 ) Borrowings under revolving credit facility 1,566,000 — — — 1,566,000 Repayments under revolving credit facility (1,566,000 ) — — — (1,566,000 ) Financial Services borrowings (repayments), net — — (89,393 ) — (89,393 ) Stock option exercises 6,555 — — — 6,555 Share repurchases (302,473 ) — — — (302,473 ) Dividends paid (104,020 ) — — — (104,020 ) Intercompany activities, net (86,416 ) 102,821 (16,405 ) — — Net cash provided by (used in) financing activities (494,518 ) 21,063 (106,815 ) — (580,270 ) Net increase (decrease) — 771,566 55,966 — 827,532 Cash, cash equivalents, and restricted cash at beginning of year — 157,801 148,367 — 306,168 Cash, cash equivalents, and restricted cash at end of year $ — $ 929,367 $ 204,333 $ — $ 1,133,700 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 309,757 $ 328,163 $ 25,157 $ — $ 663,077 Cash flows from investing activities: Capital expenditures — (25,432 ) (6,619 ) — (32,051 ) Investment in unconsolidated subsidiaries — (23,037 ) — — (23,037 ) Other investing activities, net — 5,778 (932 ) — 4,846 Net cash provided by (used in) investing activities — (42,691 ) (7,551 ) — (50,242 ) Cash flows from financing activities: Proceeds from debt, net of issuance costs — — — — — Repayments of debt (123,000 ) (10,301 ) (1,446 ) — (134,747 ) Borrowings under revolving credit facility 2,720,000 — — — 2,720,000 Repayments under revolving credit facility (2,720,000 ) — — — (2,720,000 ) Financial Services borrowings (repayments), net — — 106,183 — 106,183 Stock option exercises 27,720 — — — 27,720 Share repurchases (916,323 ) — — — (916,323 ) Dividends paid (112,748 ) — — — (112,748 ) Intercompany activities, net 814,594 (728,555 ) (86,039 ) — — Net cash provided by (used in) financing activities (309,757 ) (738,856 ) 18,698 — (1,029,915 ) Net increase (decrease) — (453,384 ) 36,304 — (417,080 ) Cash, cash equivalents, and restricted cash at beginning of year — 611,185 112,063 — 723,248 Cash, cash equivalents, and restricted cash at end of year $ — $ 157,801 $ 148,367 $ — $ 306,168 CONSOLIDATING STATEMENT OF CASH FLOWS For the year ended December 31, 2016 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) operating activities $ 256,722 $ (102,054 ) $ (86,398 ) $ — $ 68,270 Cash flows from investing activities: Capital expenditures — (36,297 ) (2,998 ) — (39,295 ) Investment in unconsolidated subsidiaries — (14,539 ) — — (14,539 ) Cash used for business acquisitions — (430,458 ) — — (430,458 ) Other investing activities, net — 11,189 1,911 — 13,100 Net cash provided by (used in) investing activities — (470,105 ) (1,087 ) — (471,192 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — 63,744 — 63,744 Proceeds from debt, net of issuance costs 1,991,937 4,000 — — 1,995,937 Repayments of debt (965,245 ) (21,235 ) (439 ) — (986,919 ) Borrowings under revolving credit facility 619,000 — — — 619,000 Repayments under revolving credit facility (619,000 ) — — — (619,000 ) Stock option exercises 5,845 — — — 5,845 Share repurchases (603,206 ) — — — (603,206 ) Dividends paid (124,666 ) — — — (124,666 ) Intercompany activities, net (561,387 ) 541,703 19,684 — — Net cash provided by (used in) financing activities (256,722 ) 524,468 82,989 — 350,735 Net increase (decrease) — (47,691 ) (4,496 ) — (52,187 ) Cash, cash equivalents, and restricted cash at beginning of year — 658,876 116,559 — 775,435 Cash, cash equivalents, and restricted cash at end of year $ — $ 611,185 $ 112,063 $ — $ 723,248 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2018 Homebuilding: Revenues $ 1,924,155 $ 2,516,958 $ 2,597,746 $ 2,944,091 $ 9,982,949 Cost of revenues (b) (1,471,488 ) (1,900,316 ) (1,976,220 ) (2,319,473 ) (7,667,497 ) Income before income taxes (c) 210,358 388,453 365,055 324,938 1,288,804 Financial Services: Revenues $ 45,938 $ 52,764 $ 51,620 $ 55,059 $ 205,382 Income before income taxes (d) 13,833 20,717 19,633 4,553 58,736 Consolidated results: Revenues $ 1,970,093 $ 2,569,722 $ 2,649,366 $ 2,999,150 $ 10,188,331 Income before income taxes 224,191 409,170 384,688 329,491 1,347,540 Income tax expense (53,440 ) (85,081 ) (95,153 ) (91,842 ) (325,517 ) Net income $ 170,751 $ 324,089 $ 289,535 $ 237,649 $ 1,022,023 Net income per share: Basic $ 0.59 $ 1.12 $ 1.01 $ 0.84 $ 3.56 Diluted $ 0.59 $ 1.12 $ 1.01 $ 0.84 $ 3.55 Number of shares used in calculation: Basic 286,683 285,276 283,489 278,964 283,578 Effect of dilutive securities 1,343 1,378 1,183 1,248 1,287 Diluted 288,026 286,654 284,672 280,212 284,865 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Cost of revenues includes land inventory impairments of $66.9 million and net realizable value adjustments on land held for sale of $9.0 million in the 4th Quarter. See Note 2 for a more complete discussion of land-related charges for the full year. (c) Homebuilding income before income taxes includes an insurance reserve reversal of $37.9 million in the 2nd Quarter (see Note 11 ) and write-offs of pre-acquisition costs of $9.6 million in the 4th Quarter (See Note 2 ). (d) Financial Services income before income taxes includes a charge related to loan origination liabilities of $16.2 million in the 4th Quarter (see Note 11 ). UNAUDITED QUARTERLY INFORMATION (000’s omitted, except per share data) 1st 2nd 3rd 4th Total (a) 2017 Homebuilding: Revenues $ 1,588,111 $ 1,974,584 $ 2,084,106 $ 2,738,724 $ 8,385,526 Cost of revenues (b) (1,220,906 ) (1,637,536 ) (1,589,728 ) (2,147,431 ) (6,595,601 ) Income before income taxes (c) 125,762 103,599 250,463 385,508 865,332 Financial Services: Revenues $ 41,767 $ 47,275 $ 46,952 $ 56,166 $ 192,160 Income before income taxes 13,503 18,948 17,786 23,259 73,496 Consolidated results: Revenues $ 1,629,878 $ 2,021,859 $ 2,131,058 $ 2,794,890 $ 8,577,686 Income before income taxes 139,265 122,547 268,249 408,767 938,828 Income tax expense (47,747 ) (21,798 ) (90,710 ) (331,352 ) (491,607 ) Net income $ 91,518 $ 100,749 $ 177,539 $ 77,415 $ 447,221 Net income per share: Basic $ 0.29 $ 0.32 $ 0.59 $ 0.26 $ 1.45 Diluted $ 0.28 $ 0.32 $ 0.58 $ 0.26 $ 1.44 Number of shares used in calculation: Basic 317,756 312,315 298,538 292,174 305,089 Effect of dilutive securities 2,329 1,565 1,690 1,318 1,725 Diluted 320,085 313,880 300,228 293,492 306,814 (a) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. (b) Cost of revenues includes land inventory impairments of $31.5 million and $57.5 million in the 2nd and 4th Quarters, respectively (see Note 2 ); net realizable value adjustments on land held for sale of $81.0 million in the 2nd Quarter (see Note 2 ); and a warranty charge of $12.4 million related to a closed-out community in the 2nd Quarter (see Note 11 ). (c) Homebuilding income before income taxes includes an $8.0 million impairment of an investment in an unconsolidated entity in the 2nd Quarter (see Note 2 ); write-offs of insurance receivables of $15.0 million , $5.3 million , and $9.3 million for the 1st, 3rd, and 4th Quarters, respectively (see Note 11 ); and insurance reserve reversals of $19.8 million and $75.3 million in the 2nd and 4th Quarters, respectively (see Note 11 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | Mar. 31, 2016USD ($)homelot | |
Intangible asset useful life | 20 years | ||||||
Unfunded settlements | $ 40,900 | $ 80,300 | |||||
Restricted Cash and Cash Equivalents | 23,612 | 33,485 | |||||
Intangible assets, acquired cost (gross) | 277,000 | 277,000 | |||||
Intangible assets, accumulated amortization | 190,200 | 176,400 | |||||
Intangible assets amortization expense | 13,800 | 13,800 | $ 13,800 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 13,800 | ||||||
Future Amortization Expense, Year Two | 13,800 | ||||||
Future Amortization Expense, Year Three | 10,400 | ||||||
Future Amortization Expense, Year Four | 5,700 | ||||||
Property and equipment, net | 92,935 | 70,706 | |||||
Property and equipment, accumulated depreciation | 209,300 | 206,500 | |||||
Depreciation Expense | 35,600 | 37,200 | 40,200 | ||||
Advertising Expense | 51,000 | 45,000 | 50,700 | ||||
Employee benefit plan company contributions | $ 17,900 | 15,700 | $ 14,600 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 1.8 | ||||||
Number of VIEs requiring consolidation | 0 | ||||||
Residential mortgage loans available-for-sale | $ 461,354 | 570,600 | |||||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 444,200 | 553,500 | |||||
Net gain (loss) from change in fair value | 700 | (2,200) | |||||
Net gains from the sale of mortgages | 111,300 | 110,900 | $ 109,600 | ||||
Loans held for investment, net | $ 8,900 | 11,200 | |||||
Days past contractual term once loans no longer accrue interest income | 90 days | ||||||
Variability in future cash flows of derivative instruments in days | 60 days | ||||||
Contract liabilities | $ 254,600 | 250,800 | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,188,331 | 8,577,686 | 7,676,530 | ||||
Capitalized contract costs | $ 30,800 | ||||||
Contract assets | $ 27,700 | ||||||
Minimum | Office Furniture and Equipment [Member] | |||||||
Property and equipment, useful life | 3 years | ||||||
Minimum | Software and Hardware [Member] | |||||||
Property and equipment, useful life | 3 years | ||||||
Minimum | Model Park Improvements and Furnishings [Member] | |||||||
Property and equipment, useful life | 1 year | ||||||
Maximum | Office Furniture and Equipment [Member] | |||||||
Property and equipment, useful life | 10 years | ||||||
Maximum | Software and Hardware [Member] | |||||||
Property and equipment, useful life | 5 years | ||||||
Maximum | Model Park Improvements and Furnishings [Member] | |||||||
Property and equipment, useful life | 5 years | ||||||
Financial Services [Member] | |||||||
Interest income on mortgage loans | $ 11,300 | 9,500 | $ 8,000 | ||||
Interest Rate Lock Commitments [Member] | |||||||
Derivative, notional amount | 285,000 | 210,900 | |||||
Forward Contracts [Member] | |||||||
Derivative, notional amount | 511,000 | 522,000 | |||||
Whole Loan Commitments [Member] | |||||||
Derivative, notional amount | $ 187,800 | $ 203,100 | |||||
JW Homes (Wieland) [Member] | JW Homes (Wieland) [Member] | |||||||
Number of Units in Real Estate Property | lot | 317 | ||||||
JW Homes (Wieland) [Member] | |||||||
Business Combination, Consideration Transferred | $ 430,500 | ||||||
Number of Units in Real Estate Property | lot | 7,000 | ||||||
Goodwill | $ 40,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 18,000 | ||||||
JW Homes (Wieland) [Member] | JW Homes (Wieland) [Member] | |||||||
Number of Units in Real Estate Property | home | 375 | ||||||
JW Homes (Wieland) [Member] | Land Option Contracts [Member] | |||||||
Number of Units in Real Estate Property | lot | 1,300 | ||||||
Restricted stock [Member] | |||||||
Share-based compensation vesting period | 3 years | ||||||
Land Sales [Member] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 31,400 | ||||||
Pro Forma [Member] | Accounting Standards Update 2016-02 [Member] | |||||||
Operating Lease, Liability | $ 80,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Other Expense (Income), Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other expense (income), net [Line Items] | |||||
Impairment Losses Related to Real Estate Partnerships | $ 8,000 | $ 0 | $ 8,017 | $ 0 | |
Write-off of deposits and pre-acquisition costs | $ (9,600) | (16,992) | (11,367) | (17,157) | |
Interest Expense | (618) | (503) | (686) | ||
Amortization of intangible assets | (13,800) | (13,800) | (13,800) | ||
Equity in (earnings) loss of unconsolidated entities | 2,690 | (1,985) | 8,337 | ||
Interest expense | (7,593) | (2,537) | (3,236) | ||
Miscellaneous, net | (7,518) | (5,540) | (25,155) | ||
Other expense, net | 13,849 | 32,387 | 56,868 | ||
Charges related to contractual dispute | 15,000 | ||||
Home Building [Member] | |||||
Other expense (income), net [Line Items] | |||||
Lease exit and related costs | $ (240) | $ (1,729) | $ (11,643) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 237,649 | $ 289,535 | $ 324,089 | $ 170,751 | $ 77,415 | $ 177,539 | $ 100,749 | $ 91,518 | $ 1,022,023 | $ 447,221 | $ 602,703 |
Less: earnings distributed to participating securities | (1,208) | (1,192) | (1,100) | ||||||||
Less: undistributed earnings allocated to participating securities | (9,984) | (3,380) | (3,622) | ||||||||
Numerator for basic earnings per share | 1,010,831 | 442,649 | 597,981 | ||||||||
Add back: undistributed earnings allocated to participating securities | 9,984 | 3,380 | 3,622 | ||||||||
Less: undistributed earnings reallocated to participating securities | (9,939) | (3,361) | (3,602) | ||||||||
Numerator for diluted earnings per share | $ 1,010,876 | $ 442,668 | $ 598,001 | ||||||||
Denominator: | |||||||||||
Basic shares outstanding (shares) | 278,964 | 283,489 | 285,276 | 286,683 | 292,174 | 298,538 | 312,315 | 317,756 | 283,578 | 305,089 | 339,747 |
Effect of dilutive securities (shares) | 1,248 | 1,183 | 1,378 | 1,343 | 1,318 | 1,690 | 1,565 | 2,329 | 1,287 | 1,725 | 2,376 |
Diluted shares outstanding (shares) | 280,212 | 284,672 | 286,654 | 288,026 | 293,492 | 300,228 | 313,880 | 320,085 | 284,865 | 306,814 | 342,123 |
Earnings per share: | |||||||||||
Basic (usd per share) | $ 0.84 | $ 1.01 | $ 1.12 | $ 0.59 | $ 0.26 | $ 0.59 | $ 0.32 | $ 0.29 | $ 3.56 | $ 1.45 | $ 1.76 |
Diluted (usd per share) | $ 0.84 | $ 1.01 | $ 1.12 | $ 0.59 | $ 0.26 | $ 0.58 | $ 0.32 | $ 0.28 | $ 3.55 | $ 1.44 | $ 1.75 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 218,568 | $ 207,987 |
Remaining Purchase Price | 2,602,410 | 2,462,579 |
Other Land Option Agreements Member | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 127,851 | 129,098 |
Remaining Purchase Price | 1,522,903 | 1,485,099 |
Consolidated and Unconsolidated VIEs [Member] | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 90,717 | 78,889 |
Remaining Purchase Price | $ 1,079,507 | $ 977,480 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 9,904 | $ 7,216 |
Other Liabilities | 8,501 | 2,165 |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 9,196 | 5,990 |
Other Liabilities | 161 | 407 |
Forward Contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 315 | 432 |
Other Liabilities | 7,229 | 817 |
Whole Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 393 | 794 |
Other Liabilities | $ 1,111 | $ 941 |
Inventory And Land Held For S_3
Inventory And Land Held For Sale (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | |||
Homes under construction | $ 2,630,158 | $ 2,421,405 | $ 1,921,259 |
Land under development | 4,129,225 | 4,135,814 | 4,072,109 |
Raw land | 493,970 | 589,911 | 777,287 |
House and land inventory | $ 7,253,353 | $ 7,147,130 | $ 6,770,655 |
Inventory And Land Held For S_4
Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest in inventory, beginning of period | $ 226,611 | $ 186,097 | $ 149,498 |
Interest capitalized | 172,809 | 181,719 | 160,506 |
Interest expensed | (171,925) | (141,205) | (123,907) |
Interest in inventory, end of period | $ 227,495 | $ 226,611 | $ 186,097 |
Inventory And Land Held For S_5
Inventory And Land Held For Sale Inventory and Land Held for Sale (Land-related Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Land impairments | $ 70,965 | $ 88,952 | $ 1,074 | ||
Net realizable value adjustments (NRV) - land held for sale | $ 81,000 | 11,489 | 83,576 | 1,105 | |
Impairment Losses Related to Real Estate Partnerships | $ 8,000 | 0 | 8,017 | 0 | |
Write-off of deposits and pre-acquisition costs | $ 9,600 | 16,992 | 11,367 | 17,157 | |
Total land-related charges | $ 99,446 | $ 191,912 | $ 19,336 |
Inventory And Land Held For S_6
Inventory And Land Held For Sale (Land Held For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Land held for sale, gross | $ 40,037 | $ 142,070 |
Net realizable value reserves | (3,188) | (73,686) |
Land held for sale, net | $ 36,849 | $ 68,384 |
Inventory And Land Held For S_7
Inventory And Land Held For Sale (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)inactive_communityinacitve_lot | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Inventory Disclosure [Abstract] | ||||
Number of communities | inactive_community | 17 | |||
Number of lots | inacitve_lot | 4,600 | |||
Net Realizable Value Adjustments Land Held For Sale Total - land held for sale | $ (81,000) | $ (11,489) | $ (83,576) | $ (1,105) |
Carrying value of land parcels | 151,000 | |||
Inventory adjustments NRV | 2,600 | |||
Inventory [Line Items] | ||||
Land impairments | $ 70,965 | 88,952 | $ 1,074 | |
Impaired Community | ||||
Inventory [Line Items] | ||||
Entitlement period sought | 10 years | |||
Land impairments | $ 59,200 | |||
All Other Communities | ||||
Inventory [Line Items] | ||||
Land impairments | $ 11,800 | 4,500 | ||
May 2017 Strategic Review Communities [Member] | ||||
Inventory [Line Items] | ||||
Land impairments | $ 31,500 | |||
Large Project Impairment [Member] | ||||
Inventory [Line Items] | ||||
Land impairments | $ 53,000 |
Inventory And Land Held For S_8
Inventory And Land Held For Sale (Quantitative Information for Fair Value of Impairment Charges) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)impaired_community | Dec. 31, 2017USD ($)impaired_community | Dec. 31, 2016USD ($)impaired_community | Jun. 30, 2017USD ($)inactive_community | |
Inventory [Line Items] | ||||
Number of communities | inactive_community | 17 | |||
Fair Value of Communities Impaired, Net of Impairment Charges | $ 151,000 | |||
Impairment charges | $ 70,965 | $ 88,952 | $ 1,074 | |
Impaired Inventory | ||||
Inventory [Line Items] | ||||
Number of communities | impaired_community | 8 | 9 | 2 | |
Fair Value of Communities Impaired, Net of Impairment Charges | $ 24,062 | $ 19,252 | $ 8,920 | |
Impairment charges | 70,965 | 88,952 | $ 1,074 | |
Discount Rate | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Measurement input | 0.12 | |||
Maximum | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Average selling price | $ 586 | $ 818 | $ 563 | |
Maximum | Quarterly Sales Pace (Homes) | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Measurement input | 11 | 11 | 5 | |
Maximum | Discount Rate | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Measurement input | 0.22 | 0.25 | ||
Minimum | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Average selling price | $ 287 | $ 207 | $ 109 | |
Minimum | Quarterly Sales Pace (Homes) | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Measurement input | 2 | 1 | 3 | |
Minimum | Discount Rate | Impaired Inventory | ||||
Inventory [Line Items] | ||||
Measurement input | 0.12 | 0.12 |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,188,331 | $ 8,577,686 | $ 7,676,530 |
Number of reportable segments | segment | 6 | ||
Detached single-family homes [Member] | |||
Segment Reporting Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,200,000 | 7,300,000 | 6,500,000 |
Attached homes [Member] | |||
Segment Reporting Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,600,000 | $ 1,100,000 | $ 1,000,000 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,188,331 | $ 8,577,686 | $ 7,676,530 | ||||||||
Total land-related charges | 99,446 | 191,912 | 19,336 | ||||||||
Impairment Losses Related to Real Estate Partnerships | $ 8,000 | 0 | 8,017 | 0 | |||||||
Revenues: | |||||||||||
Consolidated revenues | $ 2,999,150 | $ 2,649,366 | $ 2,569,722 | $ 1,970,093 | $ 2,794,890 | $ 2,131,058 | 2,021,859 | $ 1,629,878 | |||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 329,491 | 384,688 | 409,170 | 224,191 | 408,767 | 268,249 | 122,547 | 139,265 | 1,347,540 | 938,828 | 933,850 |
Homebuilding | 324,938 | 365,055 | 388,453 | 210,358 | 385,508 | 250,463 | 103,599 | 125,762 | 1,288,804 | 865,332 | 860,766 |
Charges related to contractual dispute | 15,000 | ||||||||||
Write-off of insurance receivables | 9,300 | 5,300 | 15,000 | ||||||||
Loss on debt retirements | 0 | 0 | 657 | ||||||||
Adjustment to self insurance reserves | 37,900 | (75,300) | (19,800) | (35,873) | (97,789) | (57,132) | |||||
Reserves provided | 16,200 | 16,130 | (50) | 506 | |||||||
Northeast [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 74,488 | 51,362 | 2,079 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 29,629 | 21,190 | 81,991 | ||||||||
Southeast [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 8,140 | 55,689 | 3,089 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 202,639 | 122,532 | 145,011 | ||||||||
Florida [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 1,166 | 9,702 | 715 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 289,418 | 208,825 | 205,049 | ||||||||
Product Warranty Expense | 12,400 | ||||||||||
Texas [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 1,204 | 2,521 | 515 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 193,946 | 182,862 | 152,355 | ||||||||
Midwest [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 7,361 | 8,917 | 3,383 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 179,568 | 178,231 | 120,159 | ||||||||
West [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 5,159 | 56,995 | 8,960 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 511,828 | 229,504 | 225,771 | ||||||||
Other Homebuilding [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total land-related charges | 1,928 | 6,726 | 595 | ||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | (118,224) | (77,812) | (69,570) | ||||||||
Write-off of insurance receivables | 29,600 | ||||||||||
Financial Services [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Consolidated income (loss) before income taxes | 58,736 | 73,496 | 73,084 | ||||||||
Home Office Relocation [Member] | |||||||||||
Income (loss) before income taxes: | |||||||||||
Costs associated with the relocation of corporate headquarters | 8,300 | ||||||||||
Land Sales [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 31,400 | ||||||||||
Financial Service [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 55,059 | 51,620 | 52,764 | 45,938 | 56,166 | 46,952 | 47,275 | 41,767 | 205,382 | 192,160 | 181,126 |
Total Homebuilding [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,944,091 | $ 2,597,746 | $ 2,516,958 | $ 1,924,155 | $ 2,738,724 | $ 2,084,106 | $ 1,974,584 | $ 1,588,111 | 9,982,949 | 8,385,526 | 7,495,404 |
Total Homebuilding [Member] | Northeast [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 839,700 | 693,877 | 699,718 | ||||||||
Total Homebuilding [Member] | Southeast [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,746,161 | 1,564,116 | 1,492,502 | ||||||||
Total Homebuilding [Member] | Florida [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,944,170 | 1,494,389 | 1,285,890 | ||||||||
Total Homebuilding [Member] | Texas [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,301,004 | 1,168,755 | 1,035,428 | ||||||||
Total Homebuilding [Member] | Midwest [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,497,389 | 1,450,192 | 1,235,198 | ||||||||
Total Homebuilding [Member] | West [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,654,525 | $ 2,014,197 | $ 1,746,668 | ||||||||
California | Land Sales [Member] | West [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 26,400 |
Segment Information (Land-Relat
Segment Information (Land-Related Charges By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information | |||
Total land-related charges | $ 99,446 | $ 191,912 | $ 19,336 |
Northeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 74,488 | 51,362 | 2,079 |
Southeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 8,140 | 55,689 | 3,089 |
Florida [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 1,166 | 9,702 | 715 |
Texas [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 1,204 | 2,521 | 515 |
Midwest [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 7,361 | 8,917 | 3,383 |
West [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 5,159 | 56,995 | 8,960 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Total land-related charges | $ 1,928 | $ 6,726 | $ 595 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation and amortization: | |||
Depreciation and amortization | $ 49,429 | $ 50,998 | $ 54,007 |
Northeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 2,093 | 2,392 | 2,133 |
Southeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 5,231 | 5,117 | 5,350 |
Florida [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 4,893 | 4,883 | 4,955 |
Texas [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 3,082 | 3,301 | 3,673 |
Midwest [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 4,271 | 4,449 | 5,099 |
West [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 6,758 | 5,828 | 6,739 |
Other Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 18,908 | 21,326 | 22,467 |
Home Building [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 45,236 | 47,296 | 50,416 |
Financial Services [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | $ 4,193 | $ 3,702 | $ 3,591 |
Segment Information (Equity in
Segment Information (Equity in (earnings) loss of unconsolidated entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity in (earnings) loss of unconsolidated entities: | |||
Equity in earnings of unconsolidated entities | $ (2,690) | $ 1,985 | $ (8,337) |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information | |||
Homes under construction | $ 2,630,158 | $ 2,421,405 | $ 1,921,259 |
Land under development | 4,129,225 | 4,135,814 | 4,072,109 |
Raw land | 493,970 | 589,911 | 777,287 |
House and land inventory | 7,253,353 | 7,147,130 | 6,770,655 |
Total assets | 10,172,976 | 9,686,649 | 10,178,200 |
Northeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 268,900 | 234,413 | 175,253 |
Land under development | 291,467 | 327,599 | 375,899 |
Raw land | 52,245 | 73,574 | 135,447 |
House and land inventory | 612,612 | 635,586 | 686,599 |
Total assets | 704,515 | 791,511 | 798,369 |
Southeast [Member] | |||
Segment Reporting Information | |||
Homes under construction | 443,140 | 433,411 | 354,047 |
Land under development | 676,087 | 613,626 | 650,805 |
Raw land | 90,332 | 121,238 | 148,793 |
House and land inventory | 1,209,559 | 1,168,275 | 1,153,645 |
Total assets | 1,347,427 | 1,287,992 | 1,243,188 |
Florida [Member] | |||
Segment Reporting Information | |||
Homes under construction | 467,625 | 359,651 | 309,525 |
Land under development | 892,669 | 876,856 | 683,376 |
Raw land | 85,321 | 109,069 | 183,168 |
House and land inventory | 1,445,615 | 1,345,576 | 1,176,069 |
Total assets | 1,601,906 | 1,481,837 | 1,330,847 |
Texas [Member] | |||
Segment Reporting Information | |||
Homes under construction | 284,405 | 251,613 | 219,606 |
Land under development | 427,124 | 435,018 | 413,312 |
Raw land | 98,415 | 87,392 | 74,750 |
House and land inventory | 809,944 | 774,023 | 707,668 |
Total assets | 881,629 | 859,847 | 793,917 |
Midwest [Member] | |||
Segment Reporting Information | |||
Homes under construction | 314,442 | 299,896 | 256,649 |
Land under development | 433,056 | 476,694 | 474,287 |
Raw land | 29,908 | 28,482 | 50,302 |
House and land inventory | 777,406 | 805,072 | 781,238 |
Total assets | 849,596 | 877,282 | 851,457 |
West [Member] | |||
Segment Reporting Information | |||
Homes under construction | 805,709 | 798,706 | 580,082 |
Land under development | 1,131,841 | 1,137,940 | 1,226,190 |
Raw land | 118,579 | 147,493 | 159,387 |
House and land inventory | 2,056,129 | 2,084,139 | 1,965,659 |
Total assets | 2,208,092 | 2,271,328 | 2,200,058 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Homes under construction | 45,937 | 43,715 | 26,097 |
Land under development | 276,981 | 268,081 | 248,240 |
Raw land | 19,170 | 22,663 | 25,440 |
House and land inventory | 342,088 | 334,459 | 299,777 |
Total assets | 2,006,825 | 1,469,234 | 2,351,082 |
Home Building [Member] | |||
Segment Reporting Information | |||
Homes under construction | 2,630,158 | 2,421,405 | 1,921,259 |
Land under development | 4,129,225 | 4,135,814 | 4,072,109 |
Raw land | 493,970 | 589,911 | 777,287 |
House and land inventory | 7,253,353 | 7,147,130 | 6,770,655 |
Total assets | 9,599,990 | 9,039,031 | 9,568,918 |
Financial Services [Member] | |||
Segment Reporting Information | |||
Total assets | $ 572,986 | $ 647,618 | $ 609,282 |
Investments In Unconsolidated_3
Investments In Unconsolidated Entities (Summary Schedule Of Joint Ventures) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investment in Joint Ventures with Limited recourse debt to Company | $ 31,551 | $ 37,063 |
Investments in joint ventures with debt non-recourse to Company | 3,471 | 3,567 |
Investments in other active joint ventures | 19,568 | 22,327 |
Total investments in unconsolidated entities | 54,590 | 62,957 |
Joint Venture Debt Total | 42,948 | 59,544 |
Company proportionate share of joint venture debt: | ||
Joint venture debt with limited recourse guaranties | 21,059 | 28,157 |
Joint venture debt non-recourse to Company | 217 | 700 |
Company's total proportionate share of joint venture debt | $ 21,276 | $ 28,857 |
Investments In Unconsolidated_4
Investments In Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of unconsolidated entities | $ (2,690) | $ 1,985 | $ (8,337) |
Capital and earnings distributions received from unconsolidated entities | 12,100 | 9,400 | 10,900 |
Payments to Acquire Interest in Subsidiaries and Affiliates | (1,000) | (23,000) | $ (14,500) |
Joint Venture Debt Total | 42,948 | $ 59,544 | |
Joint Venture Debt Company Proportionate Share Total | $ 42,100 | ||
Unconsolidated Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% |
Debt (Summary Of Company's Seni
Debt (Summary Of Company's Senior Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 29, 2016 | Jun. 01, 2016 | |
Debt Instrument | ||||
Senior note carrying value | $ 2,986,753 | $ 2,986,943 | ||
Debt Issuance Costs, Net | (13,247) | (13,057) | ||
Other Notes Payable | 41,313 | 20,024 | ||
Notes payable | 3,028,066 | 3,006,967 | ||
Notes Payable, Fair Value Disclosure | 2,899,143 | 3,263,774 | ||
5.500% unsecured senior notes due March 2026 [Member] | Senior Notes [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | 700,000 | 700,000 | ||
Senior Unsecured Term Loan Maturing January 3, 2027 [Member] [Domain] | Senior Notes [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | 600,000 | 600,000 | ||
Debt instrument, interest rate, stated percentage | 5.00% | |||
Unsecured Senior Notes 6.50% due May 2016 [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | $ 465,200 | |||
Senior Notes [Member] | 5.500% unsecured senior notes due March 2026 [Member] | ||||
Debt Instrument | ||||
Debt instrument, interest rate, stated percentage | 5.50% | |||
Senior Notes [Member] | 4.250% unsecured senior notes due March 2021 [Member] | ||||
Debt Instrument | ||||
Debt instrument, interest rate, stated percentage | 4.25% | |||
4.250% unsecured senior notes due March 2021 [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | 700,000 | 700,000 | ||
Unsecured Senior Notes 7.875% Due June 2032 [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | $ 300,000 | $ 300,000 | ||
Debt instrument, interest rate, stated percentage | 7.875% | 7.875% | ||
Debt instrument, maturity date, description | June 2,032 | June 2,032 | ||
Unsecured Senior Notes 6.375% Due May 2033 [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | $ 400,000 | $ 400,000 | ||
Debt instrument, interest rate, stated percentage | 6.375% | 6.375% | ||
Debt instrument, maturity date, description | May 2,033 | May 2,033 | ||
Unsecured Senior Notes 6.00% Due February 2035 [Member] | ||||
Debt Instrument | ||||
Senior note carrying value | $ 300,000 | $ 300,000 | ||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | ||
Debt instrument, maturity date, description | February 2,035 | February 2,035 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2018 | Aug. 15, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 22, 2018 | Jul. 29, 2016 | Jun. 01, 2016 | Feb. 01, 2016 | |
Debt Instrument | ||||||||
Notes payable | $ 2,986,753,000 | $ 2,986,943,000 | ||||||
Term loan | 500,000,000 | |||||||
Loss on debt retirements | 0 | 0 | $ 657,000 | |||||
Repayments of Long-term Debt | 82,775,000 | 134,747,000 | $ 986,919,000 | |||||
Other Notes Payable | $ 41,313,000 | 20,024,000 | ||||||
Debt Instrument, Term | 3 years | |||||||
Letters of credit outstanding, amount | $ 239,400,000 | 235,500,000 | ||||||
Unused credit lines | 760,600,000 | 764,500,000 | ||||||
Financial Services debt | $ 348,412,000 | 437,804,000 | ||||||
Maximum | ||||||||
Debt Instrument | ||||||||
Debt instrument, interest rate, stated percentage | 7.57% | |||||||
Unsecured Senior Notes 6.50% due May 2016 [Member] | ||||||||
Debt Instrument | ||||||||
Notes payable | $ 465,200,000 | |||||||
Unsecured Letter Of Credit Facility [Member] | ||||||||
Debt Instrument | ||||||||
Letters of credit outstanding, amount | $ 239,400,000 | 235,500,000 | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument | ||||||||
Short-term debt covenant description | 500,000,000 | |||||||
Line of Credit, Current | $ 0 | |||||||
Line of Credit Facility, Initiation Date | Jun. 22, 2018 | |||||||
Line of Credit Facility, Expiration Date | Jun. 22, 2023 | |||||||
Revolving Credit Facility Accordion Feature [Member] | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||
Financial Services [Member] | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 520,000,000 | 475,000,000 | ||||||
Unused credit lines | 171,588,000 | 37,196,000 | ||||||
Financial Services [Member] | Unsecured Letter Of Credit Facility [Member] | ||||||||
Debt Instrument | ||||||||
Line of Credit Facility, Expiration Date | Aug. 2, 2019 | |||||||
Financial Services [Member] | Repurchase Agreement [Member] | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 520,000,000 | $ 1,000,000,000 | ||||||
Financial Services debt | 348,400,000 | 437,800,000 | ||||||
Financial Services [Member] | Repurchase Agreement [Member] | Minimum | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 240,000,000 | |||||||
Financial Services [Member] | Repurchase Agreement [Member] | Maximum | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 400,000,000 | |||||||
Senior Unsecured Notes February 2016 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument | ||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||||
4.250% unsecured senior notes due March 2021 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument | ||||||||
Debt Instrument, Face Amount | $ 400,000,000 | 300,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.25% | |||||||
5.500% unsecured senior notes due March 2026 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument | ||||||||
Debt Instrument, Face Amount | $ 700,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||
Senior Unsecured Notes, Issued July 2016 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument | ||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||||
Senior Notes [Member] | 5.500% unsecured senior notes due March 2026 [Member] | ||||||||
Debt Instrument | ||||||||
Notes payable | 700,000,000 | 700,000,000 | ||||||
Senior Notes [Member] | Senior Unsecured Term Loan Maturing January 3, 2027 [Member] [Domain] | ||||||||
Debt Instrument | ||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||
Notes payable | $ 600,000,000 | $ 600,000,000 |
Debt (Aggregate Borrowing Infor
Debt (Aggregate Borrowing Information) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Unused credit lines | $ 760,600,000 | $ 764,500,000 |
Financial Services [Member] | ||
Line of Credit Facility [Line Items] | ||
Available credit lines | 520,000,000 | 475,000,000 |
Unused credit lines | $ 171,588,000 | $ 37,196,000 |
Weighted-average interest rate | 4.27% | 3.55% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Dividends declared | $ (108,489,000) | $ (110,046,000) | $ (122,240,000) |
Stock repurchases | $ 302,473,000 | $ 916,323,000 | $ 603,206,000 |
Share repurchase plan [Member] | |||
Class of Stock [Line Items] | |||
Shares repurchased under authorized repurchase programs | 10.9 | 35.4 | 30.9 |
Stock repurchases | $ 294,559,000 | $ 910,300,000 | $ 600,000,000 |
Remaining value of stock repurchase programs authorization | 299,900,000 | ||
Shares withheld to pay taxes [Member] | |||
Class of Stock [Line Items] | |||
Stock repurchases | $ 7,900,000 | $ 6,000,000 | $ 3,200,000 |
Stock Compensation Plans Narrat
Stock Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum period stock options, appreciation rights, restricted stock, and restricted stock units can be granted | 10 years | ||
Number of Years Stock Options are Exercisable After Grant Date | 10 years | ||
Number of shares available for grant | 24,400,000 | ||
Long-term incentive plan liability | $ 17 | $ 14 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 4 years | ||
Unrecognized stock compensation expense | $ 0 | ||
Aggregate instrinsic value of stock options exercised | 11.7 | 31.1 | $ 4.5 |
Intrinsic value of outstanding stock options | $ 8.1 | ||
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units outstanding vested but not yet paid | 129,115 | ||
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | $ 19 | ||
Restricted stock shares vested during period, total fair value | $ 17.1 | $ 15 | $ 11 |
Weighted average period in which stock based compensation costs are expensed | 2 years | ||
Field long-term compensation plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | ||
Senior management long-term compensation plan [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation plan price floor | $ 5 |
Stock Compensation Plans (Expen
Stock Compensation Plans (Expense by plan type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 28,290 | $ 33,683 | $ 22,228 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 0 | 0 |
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 20,145 | 24,207 | 18,626 |
Long-term incentive plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8,145 | $ 9,476 | $ 3,602 |
Stock Compensation Plans (Stock
Stock Compensation Plans (Stock Option Activity Rollforward) (Details) - Stock options [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Option Activity [Roll Forward] | |||
Outstanding, beginning of year | 1,168 | 3,623 | 6,040 |
Granted | 0 | 0 | 0 |
Exercised | (605) | (2,353) | (498) |
Forfeited | 0 | (102) | (1,919) |
Outstanding, end of year | 563 | 1,168 | 3,623 |
Options exercisable at year end | 563 | 1,168 | 3,623 |
Weighted-average per share fair value of options granted during the year | $ 0 | $ 0 | $ 0 |
Outstanding, weighted-average per share exercise price, beginning of year | 11 | 12 | 19 |
Granted, weighted-average per share exercise price | 0 | 0 | 0 |
Exercised, weighted-average per share exercise price | 11 | 12 | 12 |
Forfeited, weighted-average per share exercise price | 0 | 28 | 34 |
Options outstanding, weighted-average per share exercise price, end of year | 12 | 11 | 12 |
Options exercisable at year end, weighted-average per share exercise price | $ 12 | $ 11 | $ 12 |
Stock Compensation Plans (Weigh
Stock Compensation Plans (Weighted-average remaining contractual lives of stock options outstanding) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 563 |
Weighted average remaining contractual term | 1 year 2 months 12 days |
Options outstanding - weighted average per share exercise price | $ 12 |
Options exercisable - number exercisable | shares | 563 |
Options exercisable - weighted average per share exercise price | $ 12 |
$0.01 to $10.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 71 |
Weighted average remaining contractual term | 2 years 1 month 6 days |
Options outstanding - weighted average per share exercise price | $ 8 |
Options exercisable - number exercisable | shares | 71 |
Options exercisable - weighted average per share exercise price | $ 8 |
Exercise price range, lower range limit | 0.01 |
Exercise price range, upper range limit | $ 10 |
$10.01 to $20.00 [Member] | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding - number outstanding | shares | 492 |
Weighted average remaining contractual term | 9 months 18 days |
Options outstanding - weighted average per share exercise price | $ 12 |
Options exercisable - number exercisable | shares | 492 |
Options exercisable - weighted average per share exercise price | $ 12 |
Exercise price range, lower range limit | 10.01 |
Exercise price range, upper range limit | $ 20 |
Stock Compensation Plans (Restr
Stock Compensation Plans (Restricted Stock, RSUs and Performance Shares Activity Rollforward) (Details) - Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock, RSUs and Performance Shares Activity [Roll Forward] | |||
Outstanding, beginning of year | 3,271 | 2,974 | 2,576 |
Granted | 833 | 1,251 | 1,853 |
Vested | (786) | (775) | (546) |
Forfeited | (244) | (179) | (909) |
Outstanding, end of year | 3,074 | 3,271 | 2,974 |
Vested, end of year | 129 | 152 | 123 |
Outstanding, beginning of year, weighted-average per share grant date fair value | $ 19 | $ 19 | $ 18 |
Granted, weighted-average per share grant date fair value | 31 | 21 | 17 |
Vested, weighted-average per share grant date fair value | 22 | 19 | 20 |
Forfeited, weighted-average per share grant date fair value | 22 | 19 | 12 |
Outstanding, end of year, weighted-average per share grant date fair value | 23 | 19 | 19 |
Vested, end of year, weighted-average per share grant date fair value | $ 21 | $ 17 | $ 15 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Provisional tax expense | $ 172,100 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 27,122 | 41,282 | ||
Gross unrecognized tax benefits | 30,554 | 48,604 | $ 21,502 | $ 38,992 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 19,700 | 23,400 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 5,800 | $ 4,900 | ||
Possible decrease in unrecognized tax benefits | $ 16,600 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 20 years | |||
2019 - 2023 [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 32,600 | |||
2024 - Thereafter [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 196,400 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 18,600 |
Income Taxes Components of curr
Income Taxes Components of current and deferred income tax expense (benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision (benefit) | |||||||||||
Federal | $ (44,462) | $ 81,101 | $ 9,464 | ||||||||
State and other | 7,202 | (11,801) | (13,104) | ||||||||
Current Income Tax Expense (Benefit) | (37,260) | 69,300 | (3,640) | ||||||||
Deferred provision (benefit) | |||||||||||
Federal | 271,544 | 444,695 | 312,288 | ||||||||
State and other | 91,233 | (22,388) | 22,499 | ||||||||
Deferred Income Tax Expense (Benefit) | 362,777 | 422,307 | 334,787 | ||||||||
Income tax expense (benefit) | $ 91,842 | $ 95,153 | $ 85,081 | $ 53,440 | $ 331,352 | $ 90,710 | $ 21,798 | $ 47,747 | $ 325,517 | $ 491,607 | $ 331,147 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of statutory federal income tax rate to effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate | 21.00% | 35.00% | 35.00% |
Effect of state and local income taxes, net of federal tax | 4.00% | 3.10% | 3.30% |
Tax accounting method change | (2.50%) | 0.00% | 0.00% |
Changes in tax laws, including the Tax Act | 1.00% | 18.30% | 0.50% |
Deferred tax asset valuation allowance | 0.90% | (1.10%) | (2.20%) |
Tax contingencies | 0.10% | (1.00%) | (1.30%) |
Other | (0.30%) | (1.90%) | 0.20% |
Effective rate | 24.20% | 52.40% | 35.50% |
Income Taxes Net deferred tax a
Income Taxes Net deferred tax asset (liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Other | $ 117,682 | $ 117,133 |
Non-deductible reserves and other | 60,585 | 78,271 |
Inventory valuation reserves | 132,495 | 202,791 |
NOL carryforwards: | ||
Federal | 27,122 | 41,282 |
State | 228,959 | 248,224 |
Alternative minimum tax credits | 2,546 | 54,965 |
Energy credit and charitable contribution carryforward | 5,146 | 41,763 |
Deferred Tax Assets, Gross | 574,535 | 784,429 |
Deferred Tax Liabilities [Abstract] | ||
Capitalized items, including real estate basis differences, deducted for tax, net | (1,038) | (17,895) |
Deferred Tax Liability, deferral of profit on home sales | (188,628) | (34,769) |
Trademarks and tradenames | (16,701) | (17,860) |
Deferred Tax Liabilities, Gross | (206,367) | (70,524) |
Valuation allowance | (92,589) | (68,610) |
Net deferred tax asset (liability) | $ 275,579 | $ 645,295 |
Income Taxes Reconciliation o_2
Income Taxes Reconciliation of the change in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of the change in unrecognized tax benefits [Roll Forward] | |||
Unrecognized Tax Benefits, beginning of period | $ 48,604 | $ 21,502 | $ 38,992 |
Increases related to tax positions taken during a prior period | 5,389 | 20,555 | 224 |
Decreases related to tax positions taken during a prior period | (31,850) | (9,665) | (13,218) |
Increases related to tax positions taken during the current period | 8,411 | 18,895 | 114 |
Decreases related to settlements with taxing authorities | 0 | 0 | (707) |
Reductions as a result of a lapse of the statute of limitations | 0 | (2,683) | (3,903) |
Unrecognized Tax Benefits, end of period | $ 30,554 | $ 48,604 | $ 21,502 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosed at fair value: | ||
Other Notes Payable | $ 41,313 | $ 20,024 |
Debt Instrument, Fair Value Disclosure | 2,857,830 | 3,243,750 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash), fair value | 1,133,700 | 306,168 |
Fair Value, Inputs, Level 2 [Member] | ||
Disclosed at fair value: | ||
Financial Services debt, fair value | 348,412 | 437,804 |
Land [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 18,253 | 11,045 |
Residential Mortgage [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 461,354 | 570,600 |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 9,035 | 5,583 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 6,914 | (385) |
Whole Loan Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 718 | (147) |
Land Held For Sale [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | $ 17,813 | $ 8,600 |
Fair Value Disclosures Fair V_2
Fair Value Disclosures Fair Value Disclosures (Narrative) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Notes payable | $ 3,028,066 | $ 3,006,967 |
Other Assets and Accrued and _3
Other Assets and Accrued and Other Liabilities (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||
Insurance Settlements Receivable | $ 152,987 | $ 213,407 |
Notes receivable | 13,850 | 16,768 |
Other receivables | 122,469 | 76,309 |
Accounts and notes receivable | 289,306 | 306,484 |
Prepaid expenses | 131,523 | 116,912 |
Deposits and pre-acquisition Costs | 218,568 | 207,987 |
Property and equipment, net | 92,935 | 70,706 |
Income taxes receivable | 58,090 | 6,964 |
Other | 39,937 | 36,070 |
Other Assets | $ 830,359 | $ 745,123 |
Other Assets and Accrued and _4
Other Assets and Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||||
Self-insurance liabilities | $ 737,013 | $ 758,812 | $ 831,058 | $ 924,563 |
Compensation-related | 161,068 | 134,008 | ||
Warranty | 79,154 | 72,709 | 66,134 | 61,179 |
Accrued interest | 52,521 | 50,620 | ||
Loan origination liabilities | 50,282 | 34,641 | $ 35,114 | $ 46,381 |
Other | 280,445 | 305,543 | ||
Accrued and other liabilities | $ 1,360,483 | $ 1,356,333 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Thousands | Dec. 17, 2018USD ($)transaction | Dec. 31, 2018USD ($)claim | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Insurance Settlements Receivable | $ 152,987 | $ 213,407 | $ 152,987 | $ 213,407 | |||||||
Write-off of insurance receivables | 9,300 | $ 5,300 | $ 15,000 | ||||||||
Operating lease rent expense | 33,600 | 30,800 | $ 33,000 | ||||||||
Letters of credit outstanding, amount | 239,400 | 235,500 | 239,400 | 235,500 | |||||||
Surety Bonds Outstanding | $ 1,300,000 | 1,200,000 | $ 1,300,000 | 1,200,000 | |||||||
Charges related to contractual dispute | 15,000 | ||||||||||
Maximum product warranty in years | 10 years | ||||||||||
Loss Contingency, Pending Claims, Number | claim | 1,000 | 1,000 | |||||||||
Self-insurance liabilities | $ 737,013 | 758,812 | $ 737,013 | 758,812 | 831,058 | $ 924,563 | |||||
Incurred but not reported percentage of liability reserves | 65.00% | 65.00% | |||||||||
Adjustment to self insurance reserves | $ 37,900 | $ (75,300) | $ (19,800) | $ (35,873) | (97,789) | (57,132) | |||||
Reserves provided | $ 16,200 | $ 16,130 | (50) | $ 506 | |||||||
Florida [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Product Warranty Expense | $ 12,400 | ||||||||||
CTX Mortgage Company LLC [Member] | Lehman Complaint [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | $ 261,000 | ||||||||||
RMBS Transactions - Alleged Violations [Member] | CTX Mortgage Company LLC [Member] | Lehman Complaint [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Number Of Transactions | transaction | 2 | ||||||||||
RMBS Transactions - Similar Indemnity Provisions [Member] | CTX Mortgage Company LLC [Member] | Lehman Complaint [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Number Of Transactions | transaction | 6 |
Commitments and Contingencies C
Commitments and Contingencies Commitments And Contingencies (Future minimum operating lease payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Years Ending December 31, | |
Future minimum lease payments - 2019 | $ 24,806 |
Future minimum lease payments - 2020 | 19,407 |
Future minimum lease payments - 2021 | 16,146 |
Future minimum lease payments - 2022 | 14,469 |
Future minimum lease payments - 2023 | 12,800 |
Future minimum lease payments - Thereafter | 25,868 |
Future minimum lease payments - Total | $ 113,496 |
Commitments And Contingencies_3
Commitments And Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in loan origination liability [Roll Forward] | ||||
Liabilities, beginning of period | $ 34,641 | $ 35,114 | $ 46,381 | |
Reserves provided (released), net | $ (16,200) | (16,130) | 50 | (506) |
Payments | (489) | (423) | (11,773) | |
Liabilities, end of period | $ 50,282 | $ 50,282 | $ 34,641 | $ 35,114 |
Commitments And Contingencies_4
Commitments And Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes to warranty liabilities [Roll Forward] | |||
Warranty liabilities, beginning of period | $ 72,709 | $ 66,134 | $ 61,179 |
Warranty reserves provided | 65,567 | 50,014 | 67,169 |
Payments | (64,525) | (58,780) | (55,892) |
Other adjustments | 5,403 | 15,341 | (6,322) |
Warranty liabilities, end of period | $ 79,154 | $ 72,709 | $ 66,134 |
Commitments And Contingencies_5
Commitments And Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Write-off of insurance receivables | $ 9,300 | $ 5,300 | $ 15,000 | |||||
Litigation of Recorded Insurance Receivable | $ 25,000 | |||||||
Insurance Settlements Receivable | 213,407 | 152,987 | $ 213,407 | |||||
Insurance Related Expenses [Roll Forward] | ||||||||
Balance, beginning of period | $ 831,058 | 758,812 | 831,058 | $ 924,563 | ||||
Reserves provided | 93,156 | 98,176 | 97,916 | |||||
Adjustment to self insurance reserves | $ 37,900 | (75,300) | $ (19,800) | (35,873) | (97,789) | (57,132) | ||
Payments | (79,082) | (72,633) | (134,289) | |||||
Balance, end of period | $ 758,812 | $ 737,013 | $ 758,812 | $ 831,058 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and equivalents | $ 1,110,088 | $ 272,683 | ||
Restricted cash | 23,612 | 33,485 | ||
Total cash, cash equivalents, and restricted cash | 1,133,700 | 306,168 | $ 723,248 | $ 775,435 |
House and land inventory | 7,253,353 | 7,147,130 | 6,770,655 | |
Land held for sale | 36,849 | 68,384 | ||
Residential mortgage loans available-for-sale | 461,354 | 570,600 | ||
Investments in unconsolidated entities | 54,590 | 62,957 | ||
Other assets | 830,359 | 745,123 | ||
Intangible assets | 127,192 | 140,992 | ||
Deferred tax assets, net | 275,579 | 645,295 | ||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | ||
Total assets | 10,172,976 | 9,686,649 | 10,178,200 | |
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,967,136 | 2,000,927 | ||
Income tax liabilities | 11,580 | 86,925 | ||
Financial Services debt | 348,412 | 437,804 | ||
Notes payable | 3,028,066 | 3,006,967 | ||
Total liabilities | 5,355,194 | 5,532,623 | ||
Total shareholders’ equity | 4,817,782 | 4,154,026 | 4,659,363 | 4,759,325 |
Total liabilities and shareholders' equity | 10,172,976 | 9,686,649 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents, and restricted cash | 0 | 0 | 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 | 66,154 | 9,417 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 282,874 | 646,227 | ||
Investments in subsidiaries and intercompany accounts, net | 7,557,245 | 6,661,638 | ||
Total assets | 7,906,273 | 7,317,282 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 90,158 | 89,388 | ||
Income tax liabilities | 11,580 | 86,925 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 2,986,753 | 2,986,943 | ||
Total liabilities | 3,088,491 | 3,163,256 | ||
Total shareholders’ equity | 4,817,782 | 4,154,026 | ||
Total liabilities and shareholders' equity | 7,906,273 | 7,317,282 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 906,961 | 125,462 | ||
Restricted cash | 22,406 | 32,339 | ||
Total cash, cash equivalents, and restricted cash | 929,367 | 157,801 | 611,185 | 658,876 |
House and land inventory | 7,157,665 | 7,053,087 | ||
Land held for sale | 36,849 | 68,384 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 54,045 | 62,415 | ||
Other assets | 579,452 | 592,045 | ||
Intangible assets | 127,192 | 140,992 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | 500,138 | 284,983 | ||
Total assets | 9,384,708 | 8,359,707 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,598,265 | 1,636,913 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 40,776 | 16,911 | ||
Total liabilities | 1,639,041 | 1,653,824 | ||
Total shareholders’ equity | 7,745,667 | 6,705,883 | ||
Total liabilities and shareholders' equity | 9,384,708 | 8,359,707 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 203,127 | 147,221 | ||
Restricted cash | 1,206 | 1,146 | ||
Total cash, cash equivalents, and restricted cash | 204,333 | 148,367 | 112,063 | 116,559 |
House and land inventory | 95,688 | 94,043 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 461,354 | 570,600 | ||
Investments in unconsolidated entities | 545 | 542 | ||
Other assets | 184,753 | 143,661 | ||
Intangible assets | 0 | 0 | ||
Deferred tax liability, net | (7,295) | (932) | ||
Investments in subsidiaries and intercompany accounts, net | 8,231,342 | 7,300,127 | ||
Total assets | 9,170,720 | 8,256,408 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 278,713 | 274,626 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 348,412 | 437,804 | ||
Notes payable | 537 | 3,113 | ||
Total liabilities | 627,662 | 715,543 | ||
Total shareholders’ equity | 8,543,058 | 7,540,865 | ||
Total liabilities and shareholders' equity | 9,170,720 | 8,256,408 | ||
Eliminating Entries [Member] | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents, and restricted cash | 0 | 0 | $ 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 | (16,288,725) | (14,246,748) | ||
Total assets | (16,288,725) | (14,246,748) | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 0 | 0 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total shareholders’ equity | (16,288,725) | (14,246,748) | ||
Total liabilities and shareholders' equity | $ (16,288,725) | $ (14,246,748) |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Statement Of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,188,331 | $ 8,577,686 | $ 7,676,530 | ||||||||
Selling, general, and administrative expenses | (1,012,023) | (891,581) | (957,150) | ||||||||
Other expense, net | (13,849) | (32,387) | (56,868) | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 1,347,540 | 938,828 | 933,850 | ||||||||
Income tax expense | $ (91,842) | $ (95,153) | $ (85,081) | $ (53,440) | $ (331,352) | $ (90,710) | $ (21,798) | $ (47,747) | (325,517) | (491,607) | (331,147) |
Income (loss) before equity in income (loss) of subsidiaries | 1,022,023 | 447,221 | 602,703 | ||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 237,649 | 289,535 | 324,089 | 170,751 | 77,415 | 177,539 | 100,749 | 91,518 | 1,022,023 | 447,221 | 602,703 |
Other comprehensive income (loss) | 100 | 81 | 83 | ||||||||
Comprehensive income | 1,022,123 | 447,302 | 602,786 | ||||||||
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | ||||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense, net | (580) | (482) | (1,321) | ||||||||
Intercompany interest | (7,835) | (2,485) | (1,980) | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (8,415) | (2,967) | (3,301) | ||||||||
Income tax expense | 2,104 | 1,127 | 1,254 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | (6,311) | (1,840) | (2,047) | ||||||||
Equity in income (loss) of subsidiaries | 1,028,334 | 449,061 | 604,750 | ||||||||
Net income | 1,022,023 | 447,221 | 602,703 | ||||||||
Other comprehensive income (loss) | 100 | 81 | 83 | ||||||||
Comprehensive income | 1,022,123 | 447,302 | 602,786 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,856,715 | 8,287,103 | 7,469,399 | ||||||||
Cost of Goods and Services Sold | 5,566,653 | ||||||||||
Selling, general, and administrative expenses | (974,858) | (785,266) | (907,748) | ||||||||
Other expense, net | (53,765) | (63,050) | (77,389) | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 1,253,170 | 921,730 | 886,920 | ||||||||
Income tax expense | (304,218) | (483,435) | (312,486) | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 948,952 | 438,295 | 574,434 | ||||||||
Equity in income (loss) of subsidiaries | 73,097 | 58,559 | 58,078 | ||||||||
Net income | 1,022,049 | 496,854 | 632,512 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 1,022,049 | 496,854 | 632,512 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 331,616 | 290,583 | 207,131 | ||||||||
Cost of Goods and Services Sold | 21,321 | ||||||||||
Selling, general, and administrative expenses | (37,165) | (106,315) | (49,402) | ||||||||
Other expense, net | 40,496 | 31,145 | 21,842 | ||||||||
Intercompany interest | 7,835 | 2,485 | 1,980 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 102,785 | 20,065 | 50,231 | ||||||||
Income tax expense | (23,403) | (9,299) | (19,915) | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 79,382 | 10,766 | 30,316 | ||||||||
Equity in income (loss) of subsidiaries | 782,948 | 226,864 | 457,716 | ||||||||
Net income | 862,330 | 237,630 | 488,032 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 862,330 | 237,630 | 488,032 | ||||||||
Total Homebuilding [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,944,091 | 2,597,746 | 2,516,958 | 1,924,155 | 2,738,724 | 2,084,106 | 1,974,584 | 1,588,111 | 9,982,949 | 8,385,526 | 7,495,404 |
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 2,319,473 | 1,976,220 | 1,900,316 | 1,471,488 | 2,147,431 | 1,589,728 | 1,637,536 | 1,220,906 | 7,667,497 | 6,595,601 | 5,620,089 |
Total Homebuilding [Member] | Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 0 | 0 | 0 | ||||||||
Total Homebuilding [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,856,715 | 8,287,103 | 7,469,399 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 7,574,359 | 6,516,530 | 5,596,809 | ||||||||
Total Homebuilding [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 126,234 | 98,423 | 26,005 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 93,138 | 79,071 | 23,280 | ||||||||
Home Building [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,818,445 | 8,323,984 | 7,451,315 | ||||||||
Cost of Goods and Services Sold | 7,540,937 | 6,461,152 | 5,587,974 | ||||||||
Home Building [Member] | Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | 0 | |||||||||
Home Building [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,694,703 | 8,229,392 | 7,427,757 | ||||||||
Cost of Goods and Services Sold | 7,449,343 | 6,385,167 | |||||||||
Home Building [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 123,742 | 94,592 | 23,558 | ||||||||
Cost of Goods and Services Sold | 91,594 | 75,985 | |||||||||
Land [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 164,504 | 61,542 | 44,089 | ||||||||
Cost of Goods and Services Sold | 126,560 | 134,449 | 32,115 | ||||||||
Land [Member] | Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | ||||||||
Land [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 162,012 | 57,711 | 41,642 | ||||||||
Cost of Goods and Services Sold | 125,016 | 131,363 | 30,156 | ||||||||
Land [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,492 | 3,831 | 2,447 | ||||||||
Cost of Goods and Services Sold | 1,544 | 3,086 | 1,959 | ||||||||
Financial Service [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 55,059 | $ 51,620 | $ 52,764 | $ 45,938 | $ 56,166 | $ 46,952 | $ 47,275 | $ 41,767 | 205,382 | 192,160 | 181,126 |
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 147,422 | 119,289 | 108,573 | ||||||||
Financial Service [Member] | Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 0 | 0 | 0 | ||||||||
Financial Service [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 563 | 527 | 533 | ||||||||
Financial Service [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 205,382 | 192,160 | 181,126 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 146,859 | 118,762 | 108,040 | ||||||||
Eliminating Entries [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | ||||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in income (loss) of subsidiaries | (1,884,379) | (734,484) | (1,120,544) | ||||||||
Net income | (1,884,379) | (734,484) | (1,120,544) | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | (1,884,379) | (734,484) | (1,120,544) | ||||||||
Eliminating Entries [Member] | Total Homebuilding [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | 0 | 0 | 0 | ||||||||
Eliminating Entries [Member] | Home Building [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | 0 | |||||||||
Eliminating Entries [Member] | Land [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | ||||||||
Eliminating Entries [Member] | Financial Service [Member] | |||||||||||
Revenues: | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | ||||||||
Homebuilding Cost of Revenues: | |||||||||||
Cost of Revenue | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net cash provided by (used in) operating activities | $ 1,449,744 | $ 663,077 | $ 68,270 |
Cash flows from investing activities: | |||
Capital expenditures | (59,039) | (32,051) | (39,295) |
Investment in unconsolidated subsidiaries | (1,000) | (23,037) | (14,539) |
Cash used for business acquisition | 0 | 0 | (430,458) |
Other investing activities, net | 18,097 | 4,846 | 13,100 |
Net cash used in investing activities | (41,942) | (50,242) | (471,192) |
Cash flows from financing activities: | |||
Proceeds from debt, net of issuance costs | 0 | 1,995,937 | |
Payments of Debt Issuance Costs | (8,164) | ||
Financial Services borrowings (repayments), net | (89,393) | 106,183 | 63,744 |
Repayments of debt | (82,775) | (134,747) | (986,919) |
Borrowings under revolving credit facility | 1,566,000 | 2,720,000 | 619,000 |
Repayments under revolving credit facility | (1,566,000) | (2,720,000) | (619,000) |
Stock option exercises | 6,555 | 27,720 | 5,845 |
Share repurchases | (302,473) | (916,323) | (603,206) |
Dividends paid | (104,020) | (112,748) | (124,666) |
Intercompany activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (580,270) | (1,029,915) | 350,735 |
Net increase (decrease) | 827,532 | (417,080) | (52,187) |
Cash, cash equivalents, and restricted cash at beginning of period | 306,168 | 723,248 | 775,435 |
Cash, cash equivalents, and restricted cash at end of period | 1,133,700 | 306,168 | 723,248 |
Parent Company [Member] | |||
Net cash provided by (used in) operating activities | 494,518 | 309,757 | 256,722 |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Investment in unconsolidated subsidiaries | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Other investing activities, net | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from debt, net of issuance costs | 0 | 1,991,937 | |
Payments of Debt Issuance Costs | (8,164) | ||
Financial Services borrowings (repayments), net | 0 | 0 | 0 |
Repayments of debt | 0 | (123,000) | (965,245) |
Borrowings under revolving credit facility | 1,566,000 | 2,720,000 | 619,000 |
Repayments under revolving credit facility | (1,566,000) | (2,720,000) | (619,000) |
Stock option exercises | 6,555 | 27,720 | 5,845 |
Share repurchases | (302,473) | (916,323) | (603,206) |
Dividends paid | (104,020) | (112,748) | (124,666) |
Intercompany activities, net | (86,416) | 814,594 | (561,387) |
Net cash provided by (used in) financing activities | (494,518) | (309,757) | (256,722) |
Net increase (decrease) | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | 791,350 | 328,163 | (102,054) |
Cash flows from investing activities: | |||
Capital expenditures | (51,147) | (25,432) | (36,297) |
Investment in unconsolidated subsidiaries | (1,000) | (23,037) | (14,539) |
Cash used for business acquisition | (430,458) | ||
Other investing activities, net | 11,300 | 5,778 | 11,189 |
Net cash used in investing activities | (40,847) | (42,691) | (470,105) |
Cash flows from financing activities: | |||
Proceeds from debt, net of issuance costs | 0 | 4,000 | |
Payments of Debt Issuance Costs | 0 | ||
Financial Services borrowings (repayments), net | 0 | 0 | 0 |
Repayments of debt | (81,758) | (10,301) | (21,235) |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 | 0 |
Stock option exercises | 0 | 0 | 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | 102,821 | (728,555) | 541,703 |
Net cash provided by (used in) financing activities | 21,063 | (738,856) | 524,468 |
Net increase (decrease) | 771,566 | (453,384) | (47,691) |
Cash, cash equivalents, and restricted cash at beginning of period | 157,801 | 611,185 | 658,876 |
Cash, cash equivalents, and restricted cash at end of period | 929,367 | 157,801 | 611,185 |
Non-Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operating activities | 163,876 | 25,157 | (86,398) |
Cash flows from investing activities: | |||
Capital expenditures | (7,892) | (6,619) | (2,998) |
Investment in unconsolidated subsidiaries | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Other investing activities, net | 6,797 | (932) | 1,911 |
Net cash used in investing activities | (1,095) | (7,551) | (1,087) |
Cash flows from financing activities: | |||
Proceeds from debt, net of issuance costs | 0 | 0 | |
Payments of Debt Issuance Costs | 0 | ||
Financial Services borrowings (repayments), net | (89,393) | 106,183 | 63,744 |
Repayments of debt | (1,017) | (1,446) | (439) |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 | 0 |
Stock option exercises | 0 | 0 | 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | (16,405) | (86,039) | 19,684 |
Net cash provided by (used in) financing activities | (106,815) | 18,698 | 82,989 |
Net increase (decrease) | 55,966 | 36,304 | (4,496) |
Cash, cash equivalents, and restricted cash at beginning of period | 148,367 | 112,063 | 116,559 |
Cash, cash equivalents, and restricted cash at end of period | 204,333 | 148,367 | 112,063 |
Eliminating Entries [Member] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Investment in unconsolidated subsidiaries | 0 | 0 | 0 |
Cash used for business acquisition | 0 | ||
Other investing activities, net | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from debt, net of issuance costs | 0 | 0 | |
Payments of Debt Issuance Costs | 0 | ||
Financial Services borrowings (repayments), net | 0 | 0 | 0 |
Repayments of debt | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 | 0 |
Stock option exercises | 0 | 0 | 0 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Net increase (decrease) | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | $ 0 | $ 0 | $ 0 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory adjustments NRV | $ 2,600 | $ 2,600 | |||||||
Net realizable value adjustments (NRV) - land held for sale | $ 81,000 | $ 11,489 | 83,576 | $ 1,105 | |||||
Litigation Settlement, Expense | 15,000 | ||||||||
Impairment Losses Related to Real Estate Partnerships | 8,000 | 0 | 8,017 | 0 | |||||
Write-off of insurance receivables | (9,300) | $ (5,300) | $ (15,000) | ||||||
Loss on debt retirements | 0 | 0 | 657 | ||||||
Adjustment to self insurance reserves | $ 37,900 | (75,300) | (19,800) | (35,873) | (97,789) | (57,132) | |||
Write-off of deposits and pre-acquisition costs | $ 9,600 | 16,992 | 11,367 | 17,157 | |||||
Reserves provided | 16,200 | $ 16,130 | (50) | 506 | |||||
Home Office Relocation [Member] | |||||||||
Costs associated with the relocation of corporate headquarters | $ 8,300 | ||||||||
Florida [Member] | |||||||||
Product Warranty Expense | $ 12,400 | ||||||||
Land inventory impairments | |||||||||
Cost of Goods and Services Sold | 66,900 | $ 57,500 | 31,500 | ||||||
NRV adjustments on land held for sale | |||||||||
Cost of Goods and Services Sold | $ 9,000 | $ 81,000 |
Quarterly Results (Unaudited)_3
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Homebuilding | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,188,331 | $ 8,577,686 | $ 7,676,530 | ||||||||
Income before income taxes | $ 324,938 | $ 365,055 | $ 388,453 | $ 210,358 | $ 385,508 | $ 250,463 | $ 103,599 | $ 125,762 | 1,288,804 | 865,332 | 860,766 |
Financial Services: | |||||||||||
Income before income taxes | 4,553 | 19,633 | 20,717 | 13,833 | 23,259 | 17,786 | 18,948 | 13,503 | 58,736 | 73,496 | |
Consolidated results: | |||||||||||
Total revenues | 2,999,150 | 2,649,366 | 2,569,722 | 1,970,093 | 2,794,890 | 2,131,058 | 2,021,859 | 1,629,878 | |||
Income before income taxes | 329,491 | 384,688 | 409,170 | 224,191 | 408,767 | 268,249 | 122,547 | 139,265 | 1,347,540 | 938,828 | 933,850 |
Income tax expense | (91,842) | (95,153) | (85,081) | (53,440) | (331,352) | (90,710) | (21,798) | (47,747) | (325,517) | (491,607) | (331,147) |
Net income | $ 237,649 | $ 289,535 | $ 324,089 | $ 170,751 | $ 77,415 | $ 177,539 | $ 100,749 | $ 91,518 | $ 1,022,023 | $ 447,221 | $ 602,703 |
Net income per share: | |||||||||||
Basic (usd per share) | $ 0.84 | $ 1.01 | $ 1.12 | $ 0.59 | $ 0.26 | $ 0.59 | $ 0.32 | $ 0.29 | $ 3.56 | $ 1.45 | $ 1.76 |
Diluted (usd per share) | $ 0.84 | $ 1.01 | $ 1.12 | $ 0.59 | $ 0.26 | $ 0.58 | $ 0.32 | $ 0.28 | $ 3.55 | $ 1.44 | $ 1.75 |
Number of shares used in calculation: | |||||||||||
Basic shares outstanding (shares) | 278,964 | 283,489 | 285,276 | 286,683 | 292,174 | 298,538 | 312,315 | 317,756 | 283,578 | 305,089 | 339,747 |
Effect of dilutive securities (shares) | 1,248 | 1,183 | 1,378 | 1,343 | 1,318 | 1,690 | 1,565 | 2,329 | 1,287 | 1,725 | 2,376 |
Diluted shares outstanding (shares) | 280,212 | 284,672 | 286,654 | 288,026 | 293,492 | 300,228 | 313,880 | 320,085 | 284,865 | 306,814 | 342,123 |
Write-off of insurance receivables | $ 9,300 | $ 5,300 | $ 15,000 | ||||||||
Financial Service [Member] | |||||||||||
Homebuilding | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 55,059 | $ 51,620 | $ 52,764 | $ 45,938 | 56,166 | 46,952 | $ 47,275 | 41,767 | $ 205,382 | $ 192,160 | $ 181,126 |
Cost of Revenue | 147,422 | 119,289 | 108,573 | ||||||||
Total Homebuilding [Member] | |||||||||||
Homebuilding | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,944,091 | 2,597,746 | 2,516,958 | 1,924,155 | 2,738,724 | 2,084,106 | 1,974,584 | 1,588,111 | 9,982,949 | 8,385,526 | 7,495,404 |
Cost of Revenue | $ 2,319,473 | $ 1,976,220 | $ 1,900,316 | $ 1,471,488 | $ 2,147,431 | $ 1,589,728 | $ 1,637,536 | $ 1,220,906 | $ 7,667,497 | $ 6,595,601 | $ 5,620,089 |