
		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
		(Unaudited)					(Unaudited)
ASSETS	ASSETS					ASSETS

Cash and equivalents	Cash and equivalents	$	1,568,324	$	2,582,205	Cash and equivalents	$	662,780	$	1,779,088
Restricted cash	Restricted cash	56,327		50,030		Restricted cash	69,324		54,477
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	1,624,651		2,632,235		Total cash, cash equivalents, and restricted cash	732,104		1,833,565
House and land inventory	House and land inventory	8,917,440		7,721,798		House and land inventory	10,729,444		9,047,569
Land held for sale	Land held for sale	18,585		27,962		Land held for sale	32,772		29,276
Residential mortgage loans available-for-sale	Residential mortgage loans available-for-sale	601,408		564,979		Residential mortgage loans available-for-sale	553,789		947,139
Investments in unconsolidated entities	Investments in unconsolidated entities	64,284		35,562		Investments in unconsolidated entities	150,496		98,155
Other assets	Other assets	1,053,871		923,270		Other assets	1,239,870		1,110,966
Intangible assets	Intangible assets	149,854		163,425		Intangible assets	141,337		146,923
Deferred tax assets	Deferred tax assets	141,758		136,267		Deferred tax assets	120,524		139,038
		$	12,571,851	$	12,205,498		$	13,700,336	$	13,352,631

LIABILITIES AND SHAREHOLDERS’ EQUITY	LIABILITIES AND SHAREHOLDERS’ EQUITY					LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:	Liabilities:					Liabilities:
Accounts payable	Accounts payable	$	490,717	$	511,321	Accounts payable	$	750,508	$	621,168
Customer deposits	Customer deposits	823,545		449,474		Customer deposits	1,027,938		844,785
Deferred tax liabilities	Deferred tax liabilities	121,905		103,548		Deferred tax liabilities	167,845		165,519
Accrued and other liabilities	Accrued and other liabilities	1,457,505		1,407,043		Accrued and other liabilities	1,535,901		1,576,478
Financial Services debt	Financial Services debt	476,504		411,821		Financial Services debt	442,816		626,123

Notes payable	Notes payable	2,059,923		2,752,302		Notes payable	2,030,112		2,029,043
		5,430,099		5,635,509			5,955,120		5,863,116
Shareholders' equity	Shareholders' equity	7,141,752		6,569,989		Shareholders' equity	7,745,216		7,489,515
		$	12,571,851	$	12,205,498		$	13,700,336	$	13,352,631

Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Revenues:
Homebuilding
Home sale revenues $ 3,324,483 $ 2,823,921 $ 9,156,371 $ 7,517,453
Land sale and other revenues 63,085 24,165 123,321 70,042
3,387,568 2,848,086 9,279,692 7,587,495
Financial Services 91,482 106,871 288,632 256,223
Total revenues 3,479,050 2,954,957 9,568,324 7,843,718
Homebuilding Cost of Revenues:
Home sale cost of revenues (2,443,074) (2,131,741) (6,754,204) (5,706,814)
Land sale and other cost of revenues (47,483) (20,502) (103,313) (55,558)
(2,490,557) (2,152,243) (6,857,517) (5,762,372)
Financial Services expenses (42,835) (42,807) (122,921) (112,135)
Selling, general, and administrative expenses (320,506) (271,257) (864,478) (731,785)
Loss on debt retirement — — (61,469) —
Goodwill impairment — — — (20,190)
Other expense, net (4,750) (4,483) (8,011) (12,292)
Income before income taxes 620,402 484,167 1,653,928 1,204,944
Income tax expense (144,853) (67,769) (370,873) (236,216)
Net income $ 475,549 $ 416,398 $ 1,283,055 $ 968,728
Per share:
Basic earnings $ 1.83 $ 1.54 $ 4.86 $ 3.57
Diluted earnings $ 1.82 $ 1.54 $ 4.85 $ 3.56
Cash dividends declared $ 0.14 $ 0.12 $ 0.42 $ 0.36
Number of shares used in calculation:
Basic 258,147 268,363 261,854 268,892
Effect of dilutive securities 752 598 668 839
Diluted 258,899 268,961 262,522 269,731


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenues:
Homebuilding
Home sale revenues	$	3,809,601	$	3,235,379	$	6,879,914	$	5,831,889
Land sale and other revenues	33,810		33,076		66,969		60,235
	3,843,411		3,268,455		6,946,883		5,892,124
Financial Services	82,775		91,029		166,918		197,150
Total revenues	3,926,186		3,359,484		7,113,801		6,089,274

Homebuilding Cost of Revenues:
Home sale cost of revenues	(2,631,356)		(2,375,495)		(4,812,430)		(4,311,130)
Land sale and other cost of revenues	(31,656)		(31,195)		(63,657)		(55,831)
	(2,663,012)		(2,406,690)		(4,876,087)		(4,366,961)

Financial Services expenses	(43,847)		(40,411)		(87,333)		(80,086)
Selling, general, and administrative expenses	(351,256)		(272,286)		(680,279)		(543,973)
Loss on debt retirement	—		—		—		(61,469)
Other expense, net	(3,498)		(624)		(5,636)		(3,259)
Income before income taxes	864,573		639,473		1,464,466		1,033,526
Income tax expense	(212,138)		(136,074)		(357,308)		(226,020)
Net income	$	652,435	$	503,399	$	1,107,158	$	807,506

Per share:
Basic earnings	$	2.74	$	1.91	$	4.56	$	3.04
Diluted earnings	$	2.73	$	1.90	$	4.54	$	3.03
Cash dividends declared	$	0.15	$	0.14	$	0.30	$	0.28

Number of shares used in calculation:
Basic	236,328		262,099		241,036		263,744
Effect of dilutive securities	1,318		648		1,193		627
Diluted	237,646		262,747		242,229		264,371


		Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total											Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
		Shares	$												Common Stock
Shareholders' equity, June 30, 2021		260,067	$	2,600	$	3,280,779	$	(95)	$	3,675,184	$	6,958,468
															Shares			$				Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total

	Shareholders' equity, March 31, 2022														Shareholders' equity, March 31, 2022		239,622			$	2,396													$	3,309,912	$	(20)	$	4,100,976	$	7,413,264
Share issuances	Share issuances	1	—		—		—		—		—				Share issuances		48			—														—		—		—		—
Dividends declared	Dividends declared	—	—		—		—		(36,166)		(36,166)			Dividends declared		—			—					—			—			(35,514)			(35,514)
Share repurchases	Share repurchases	(5,102)	(50)		—		—		(260,550)		(260,600)		Share repurchases		(7,100)			(70)						—			—			(294,157)			(294,227)
Cash paid for shares withheld for taxes	Cash paid for shares withheld for taxes	—	—		—		—		(35)		(35)		Cash paid for shares withheld for taxes		—			—					—			—			—			—
Share-based compensation	Share-based compensation	—	—		4,511		—		—		4,511		Share-based compensation		—			—				9,238			—			—			9,238
Net income	Net income	—	—		—		—		475,549		475,549		Net income		—			—				—			—			652,435			652,435
Other comprehensive income	Other comprehensive income	—	—		—		25		—		25		Other comprehensive income		—			—				—			20			—			20
Shareholders' equity, September 30, 2021		254,966	$	2,550	$	3,285,290	$	(70)	$	3,853,982	$	7,141,752
Shareholders' equity, June 30, 2022													Shareholders' equity, June 30, 2022		232,570			$	2,326			$	3,319,150		$	—		$	4,423,740		$	7,745,216

Shareholders' equity, December 31, 2020		266,464	$	2,665	$	3,261,412	$	(145)	$	3,306,057	$	6,569,989

Stock option exercises		1	—		11		—		—		11

Shareholders' equity, December 31, 2021													Shareholders' equity, December 31, 2021		249,326			$	2,493			$	3,290,791		$	(45)		$	4,196,276		$	7,489,515
Share issuances	Share issuances	518	5		4,176		—		—		4,181		Share issuances		634			6				6,024			—			—			6,030
Dividends declared	Dividends declared	—	—		—		—		(110,305)		(110,305)		Dividends declared		—			—				—			—			(72,026)			(72,026)
Share repurchases	Share repurchases	(12,017)	(120)		—		—		(614,183)		(614,303)		Share repurchases		(17,390)			(173)				—			—			(794,054)			(794,227)
Cash paid for shares withheld for taxes	Cash paid for shares withheld for taxes	—	—		—		—		(10,642)		(10,642)		Cash paid for shares withheld for taxes		—			—				—			—			(13,614)			(13,614)
Share-based compensation	Share-based compensation	—	—		19,691		—		—		19,691		Share-based compensation		—			—				22,335			—			—			22,335
Net income	Net income	—	—		—		—		1,283,055		1,283,055		Net income		—			—				—			—			1,107,158			1,107,158
Other comprehensive income	Other comprehensive income	—	—		—		75		—		75		Other comprehensive income		—			—				—			45			—			45
Shareholders' equity, September 30, 2021		254,966	$	2,550	$	3,285,290	$	(70)	$	3,853,982	$	7,141,752

Shareholders' equity, June 30, 2022													Shareholders' equity, June 30, 2022		232,570			$	2,326			$	3,319,150		$	—		$	4,423,740		$	7,745,216


		Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total									Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
		Shares	$											Common Stock
Shareholders' equity, June 30, 2020		268,178	$	2,682	$	3,252,568	$	(195)	$	2,596,613	$	5,851,668
Stock option exercises		1	—		12		—		—		12

Dividends declared		—	—		—		—		(32,446)		(32,446)
														Shares		$				Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total

Shareholders' equity, March 31, 2021														Shareholders' equity, March 31, 2021	263,637			$	2,636													$	3,274,154		$	(120)		$	3,408,604	$	6,685,274

Share issuances														Share issuances	12			—										—			—			—			—
Dividends declared													Dividends declared	—		—						—			—			(36,814)			(36,814)
Share repurchases													Share repurchases	(3,582)		(36)						—			—			(199,964)			(200,000)
Cash paid for shares withheld for taxes													Cash paid for shares withheld for taxes	—		—				—			—			(41)			(41)
Share-based compensation	Share-based compensation	—	—		4,358		—		—		4,358		Share-based compensation	—		—				6,625			—			—			6,625
Net income	Net income	—	—		—		—		416,398		416,398		Net income	—		—				—			—			503,399			503,399
Other comprehensive income	Other comprehensive income	—	—		—		25		—		25		Other comprehensive income	—		—				—			25			—			25
Shareholders' equity, September 30, 2020		268,179	$	2,682	$	3,256,938	$	(170)	$	2,980,565	$	6,240,015
Shareholders' equity, June 30, 2021													Shareholders' equity, June 30, 2021	260,067		$	2,600			$	3,280,779		$	(95)		$	3,675,184		$	6,958,468

Shareholders' equity, December 31, 2019		270,235	$	2,702	$	3,235,149	$	(245)	$	2,220,574	$	5,458,180
Cumulative effect of accounting change (see Note 1)		—	—		—		—		(735)		(735)

Shareholders' equity, December 31, 2020													Shareholders' equity, December 31, 2020	266,464		$	2,665			$	3,261,412		$	(145)		$	3,306,057		$	6,569,989
Stock option exercises	Stock option exercises	14	—		111		—		—		111		Stock option exercises	1		—				11			—			—			11
Share issuances	Share issuances	755	8		4,088		—		—		4,096		Share issuances	517		5				4,176			—			—			4,181
Dividends declared	Dividends declared	—	—		—		—		(97,501)		(97,501)		Dividends declared	—		—				—			—			(74,139)			(74,139)
Share repurchases	Share repurchases	(2,825)	(28)		—		—		(95,648)		(95,676)		Share repurchases	(6,915)		(70)				—			—			(353,633)			(353,703)
Cash paid for shares withheld for taxes	Cash paid for shares withheld for taxes	—	—		—		—		(14,853)		(14,853)		Cash paid for shares withheld for taxes	—		—				—			—			(10,607)			(10,607)
Share-based compensation	Share-based compensation	—	—		17,590		—		—		17,590		Share-based compensation	—		—				15,180			—			—			15,180
Net income	Net income	—	—		—		—		968,728		968,728		Net income	—		—				—			—			807,506			807,506
Other comprehensive income	Other comprehensive income	—	—		—		75		—		75		Other comprehensive income	—		—				—			50			—			50
Shareholders' equity, September 30, 2020		268,179	$	2,682	$	3,256,938	$	(170)	$	2,980,565	$	6,240,015
Shareholders' equity, June 30, 2021													Shareholders' equity, June 30, 2021	260,067		$	2,600			$	3,280,779		$	(95)		$	3,675,184		$	6,958,468


		Nine Months Ended					Six Months Ended
		September 30,					June 30,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	1,283,055	$	968,728	Net income	$	1,107,158	$	807,506
Adjustments to reconcile net income to net cash from operating activities:	Adjustments to reconcile net income to net cash from operating activities:					Adjustments to reconcile net income to net cash from operating activities:
Deferred income tax expense	Deferred income tax expense	12,842		89,492		Deferred income tax expense	20,823		4,781
Land-related charges	Land-related charges	6,820		13,930		Land-related charges	8,013		3,254
Loss on debt retirement	Loss on debt retirement	61,469		—		Loss on debt retirement	—		61,469
Goodwill impairment		—		20,190
Depreciation and amortization	Depreciation and amortization	53,023		48,536		Depreciation and amortization	33,393		35,407
Share-based compensation expense	Share-based compensation expense	28,439		25,010		Share-based compensation expense	29,640		21,603
Other, net	Other, net	(3,274)		(1,136)		Other, net	(58)		(2,922)
Increase (decrease) in cash due to:	Increase (decrease) in cash due to:					Increase (decrease) in cash due to:
Inventories	Inventories	(1,137,351)		84,253		Inventories	(1,683,129)		(632,647)
Residential mortgage loans available-for-sale	Residential mortgage loans available-for-sale	(36,816)		108,178		Residential mortgage loans available-for-sale	393,350		(16,384)
Other assets	Other assets	(114,879)		(17,627)		Other assets	(87,569)		(85,049)
Accounts payable, accrued and other liabilities	Accounts payable, accrued and other liabilities	394,897		(72,929)		Accounts payable, accrued and other liabilities	280,722		235,050
Net cash provided by (used in) operating activities		548,225		1,266,625
Net cash provided by operating activities						Net cash provided by operating activities	102,343		432,068
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Capital expenditures	Capital expenditures	(52,134)		(46,925)		Capital expenditures	(62,557)		(31,547)
Investments in unconsolidated entities	Investments in unconsolidated entities	(35,812)		(663)		Investments in unconsolidated entities	(50,480)		(15,920)
Distributions of capital from unconsolidated entities	Distributions of capital from unconsolidated entities	11,500		19,939		Distributions of capital from unconsolidated entities	3,010		10,500
Business acquisition	Business acquisition	(10,400)		(83,251)		Business acquisition	(10,400)		(10,400)
Other investing activities, net	Other investing activities, net	378		3,721		Other investing activities, net	(2,713)		(17)
Net cash provided by (used in) investing activities		(86,468)		(107,179)
Net cash used in investing activities						Net cash used in investing activities	(123,140)		(47,384)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:

Repayments of notes payable	Repayments of notes payable	(797,395)		(10,993)		Repayments of notes payable	(4,152)		(797,395)
Borrowings under revolving credit facility	Borrowings under revolving credit facility	—		700,000		Borrowings under revolving credit facility	110,000		—
Repayments under revolving credit facility	Repayments under revolving credit facility	—		(700,000)		Repayments under revolving credit facility	(110,000)		—
Financial Services borrowings (repayments), net		64,684		(77,527)

Financial Services repayments, net						Financial Services repayments, net	(183,307)		(59,193)
Debt issuance costs						Debt issuance costs	(11,167)		—
Stock option exercises	Stock option exercises	11		111		Stock option exercises	—		11
Share repurchases	Share repurchases	(614,303)		(95,676)		Share repurchases	(794,227)		(353,703)
Cash paid for shares withheld for taxes	Cash paid for shares withheld for taxes	(10,642)		(14,853)		Cash paid for shares withheld for taxes	(13,614)		(10,607)
Dividends paid	Dividends paid	(111,696)		(97,756)		Dividends paid	(74,197)		(74,910)
Net cash provided by (used in) financing activities		(1,469,341)		(296,694)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(1,007,584)		862,752
Net cash used in financing activities						Net cash used in financing activities	(1,080,664)		(1,295,797)
Net decrease in cash, cash equivalents, and restricted cash						Net decrease in cash, cash equivalents, and restricted cash	(1,101,461)		(911,113)
Cash, cash equivalents, and restricted cash at beginning of period	Cash, cash equivalents, and restricted cash at beginning of period	2,632,235		1,251,456		Cash, cash equivalents, and restricted cash at beginning of period	1,833,565		2,632,235
Cash, cash equivalents, and restricted cash at end of period	Cash, cash equivalents, and restricted cash at end of period	$	1,624,651	$	2,114,208	Cash, cash equivalents, and restricted cash at end of period	$	732,104	$	1,721,122

Supplemental Cash Flow Information:	Supplemental Cash Flow Information:					Supplemental Cash Flow Information:
Interest paid (capitalized), net	Interest paid (capitalized), net	$	16,483	$	16,297	Interest paid (capitalized), net	$	230	$	11,606
Income taxes paid (refunded), net	Income taxes paid (refunded), net	$	335,487	$	195,494	Income taxes paid (refunded), net	$	290,571	$	154,658

PulteGroup, Inc. is one of the largest homebuilders in the United States ("U.S."), and our common shares trade on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also engage in mortgage banking operations, conducted through Pulte Mortgage LLC (“Pulte Mortgage”), and title and insurance brokerage operations.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

On January 24, 2020, we acquired the operations of Innovative Construction Group ("ICG"), an offsite construction framing company located in Jacksonville, Florida, for $104.0 million, of which $83.3 million and $10.4 million was paid in January 2020 and 2021, respectively, while an additional payment of $10.4 million will be settled in 2022. The acquired net assets were recorded at their estimated fair values, including intangible assets of $27.8 million associated with customer relationships and $1.8 million associated with the ICG tradename, which are being amortized over ~~seven- and five-year useful lives, respectively, and $48.7 million of goodwill. The acquisition of these assets was not material to our results of operations or financial condition.~~

In accordance with Accounting Standards Codification ("ASC") 350, "Intangibles - Goodwill and Other", management evaluates the recoverability of goodwill by comparing the carrying value of the Company’s reporting units to their fair value. Fair value is determined using accepted valuation methods, including the use of discounted cash flows supplemented by market-based assessments of fair value. As a result of the significant decline in equity market valuations that occurred during the period between our acquisition of ICG in January 2020 and March 31, 2020, we determined that an event-driven goodwill impairment test was appropriate for the ICG goodwill, which resulted in an impairment totaling $20.2 million in the first quarter of 2020. This impairment was not the result of any unique factors specific to ICG's operations but, rather, reflected the broad-based declines in the market capitalizations of publicly-traded construction companies in the period of time between the acquisition and the March 31, 2020 valuation date.


		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Write-offs of deposits and pre-acquisition costs	Write-offs of deposits and pre-acquisition costs	$	(3,567)	$	(1,692)	$	(6,801)	$	(8,335)	Write-offs of deposits and pre-acquisition costs	$	(4,503)	$	(1,866)	$	(8,013)	$	(3,235)
Amortization of intangible assets	Amortization of intangible assets	(3,612)		(5,041)		(13,571)		(14,643)		Amortization of intangible assets	(2,766)		(4,968)		(5,587)		(9,961)

Interest income	Interest income	436		891		1,541		6,024		Interest income	290		473		678		1,105
Interest expense	Interest expense	(115)		(225)		(387)		(4,022)		Interest expense	(65)		(138)		(150)		(272)
Equity in earnings of unconsolidated entities	Equity in earnings of unconsolidated entities	604		336		5,620		1,238		Equity in earnings of unconsolidated entities	723		4,190		1,944		5,017
Miscellaneous, net	Miscellaneous, net	1,504		1,248		5,587		7,446		Miscellaneous, net	2,823		1,685		5,492		4,087
Total other expense, net	Total other expense, net	$	(4,750)	$	(4,483)	$	(8,011)	$	(12,292)	Total other expense, net	$	(3,498)	$	(624)	$	(5,636)	$	(3,259)

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, and our performance obligation to deliver the agreed-upon home is generally satisfied at the home closing 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 deposits related to sold but undelivered homes, which totaled ~~$823.5 million~~$1.0 billion and ~~$449.5~~$844.8 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, 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. See Note 8 for information on warranties and related obligations.

Land sale and other 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. Revenues related to our construction services operations are generally recognized as materials are delivered and installation services are provided.

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. Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received.

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 homeowner and other insurance policies placed with ~~third party~~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 ~~$41.6~~$49.5 million and ~~$38.5~~$44.3 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares outstanding, adjusted for unvested shares (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of unvested restricted share units and other potentially dilutive instruments.

In accordance with ~~ASC~~Accounting Standards Codification ("ASC") 260, "Earnings Per Share", the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. ~~Our~~Certain of our outstanding restricted share units and deferred shares are considered participating securities. The following table presents the earnings per common share (000's omitted, except per share data):

Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Numerator:
Net income $ 475,549 $ 416,398 $ 1,283,055 $ 968,728
Less: earnings distributed to participating securities (296) (264) (887) (799)
Less: undistributed earnings allocated to participating securities (3,546) (3,123) (9,559) (7,778)
Numerator for basic earnings per share $ 471,707 $ 413,011 $ 1,272,609 $ 960,151
Add back: undistributed earnings allocated to participating securities 3,546 3,123 9,559 7,778
Less: undistributed earnings reallocated to participating securities (3,536) (3,116) (9,535) (7,754)
Numerator for diluted earnings per share $ 471,717 $ 413,018 $ 1,272,633 $ 960,175
Denominator:
Basic shares outstanding 258,147 268,363 261,854 268,892
Effect of dilutive securities 752 598 668 839
Diluted shares outstanding 258,899 268,961 262,522 269,731
Earnings per share:
Basic $ 1.83 $ 1.54 $ 4.86 $ 3.57
Diluted $ 1.82 $ 1.54 $ 4.85 $ 3.56


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Numerator:
Net income	$	652,435	$	503,399	$	1,107,158	$	807,506
Less: earnings distributed to participating securities	(217)		(294)		(434)		(592)
Less: undistributed earnings allocated to participating securities	(3,672)		(3,731)		(6,721)		(5,908)
Numerator for basic earnings per share	$	648,546	$	499,374	$	1,100,003	$	801,006
Add back: undistributed earnings allocated to participating securities	3,672		3,731		6,721		5,908
Less: undistributed earnings reallocated to participating securities	(3,644)		(3,722)		(6,677)		(5,895)
Numerator for diluted earnings per share	$	648,574	$	499,383	$	1,100,047	$	801,019

Denominator:
Basic shares outstanding	236,328		262,099		241,036		263,744
Effect of dilutive securities	1,318		648		1,193		627
Diluted shares outstanding	237,646		262,747		242,229		264,371

Earnings per share:
Basic	$	2.74	$	1.91	$	4.56	$	3.04
Diluted	$	2.73	$	1.90	$	4.54	$	3.03

Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, residential mortgage loans available-for-sale had an aggregate fair value of ~~$601.4~~$553.8 million and ~~$565.0~~$947.1 million, respectively, and an aggregate outstanding principal balance of ~~$586.4~~$553.9 million and ~~$539.1~~$924.5 million, respectively. Net gains from the sale of mortgages were ~~$58.4~~$45.1 million and ~~$76.6~~$56.7 million for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, and ~~$192.6~~$97.5 million and ~~$173.8~~$134.2 million for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, and have been included in Financial Services revenues.

We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, we had aggregate IRLCs of ~~$521.5 million~~$1.5 billion and ~~$367.2~~$337.9 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 ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, we had unexpired forward contracts of ~~$843.0 million~~$1.7 billion and ~~$686.4~~$903.0 million, respectively, and whole loan investor commitments of ~~$235.5~~$316.2 million and ~~$169.6~~$310.0 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 and residential mortgage loans available-for-sale are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days. The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted):


		September 30, 2021				December 31, 2020					June 30, 2022				December 31, 2021
		Other Assets		Accrued and Other Liabilities		Other Assets		Accrued and Other Liabilities			Other Assets		Accrued and Other Liabilities		Other Assets		Accrued and Other Liabilities
Interest rate lock commitments	Interest rate lock commitments	$	11,857	$	187	$	16,179	$	18	Interest rate lock commitments	$	23,024	$	3,185	$	8,582	$	33
Forward contracts	Forward contracts	5,133		569		501		5,937		Forward contracts	10,418		3,651		757		1,336
Whole loan commitments	Whole loan commitments	1,490		313		168		666		Whole loan commitments	997		548		384		4
		$	18,480	$	1,069	$	16,848	$	6,621		$	34,439	$	7,384	$	9,723	$	1,373

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, we reported ~~$194.5~~$199.9 million and ~~$176.2~~$208.4 million, respectively, of assets in-scope under ASC 326, "Financial Instruments - Credit Losses" ~~("ASC 326")~~. These assets consist primarily of insurance receivables, contract assets related to insurance brokerage commissions, and vendor rebate receivables. Counterparties associated with these assets are generally highly rated. Allowances on the aforementioned in-scope assets were not material as of ~~September~~June 30, ~~2021.~~2022.

OnIn March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, as amended by ASU 2021-01 in January 1, 2021, ~~we adopted Accounting Standards Update~~which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the cessation of the London Interbank Offered Rate ("~~ASU"~~LIBOR") ~~No. 2019-12, "Income Taxes (Topic 740): Simplifying~~or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. We are currently evaluating the ~~Accounting for Income Taxes" ("ASU 2019-12"), which is intended to simplify various aspects~~effect that such new guidance will have on our consolidated financial statements and related ~~to accounting for income taxes. ASU 2019-12 removes certain exceptions to~~disclosures, but do not expect that the ~~general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. Our~~ adoption ~~of ASU 2019-12 did not~~will have a material impact on our consolidated financial ~~statements.~~statements or related disclosures.

On January 1, 2020, we adopted ASC 326, which changed the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to an "expected credit loss" methodology. We adopted ASC 326 using the modified retrospective transition method. ASC 326 requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. Our adoption of ASC 326 resulted in a $0.7 million decrease to retained earnings as of January 1, 2020.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment", which removed the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under the new standard, goodwill impairment is determined by evaluating the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. We adopted the standard for annual and interim periods beginning January 1, 2020, and the standard was followed in the previously mentioned assessment of the ICG goodwill.


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Homes under construction	Homes under construction	$	4,469,295	$	3,086,740	Homes under construction	$	5,916,047	$	4,225,309
Land under development	Land under development	3,849,816		4,137,318		Land under development	4,028,971		4,091,015
Raw land	Raw land	598,329		497,740		Raw land	784,426		731,245
		$	8,917,440	$	7,721,798		$	10,729,444	$	9,047,569

We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. We recorded $4.5 million and $1.9 million of such charges during the three months ended June 30, 2022 and 2021, respectively, and $8.0 million and $3.2 million during the six months ended June 30, 2022 and 2021, respectively.

If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. No VIEs required consolidation at either ~~September~~June 30, ~~2021~~2022 or December 31, ~~2020~~2021 because we determined that we were not ~~the VIEs'~~any VIE's primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements. The following provides a summary of our interests in land option agreements as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 ($000’s omitted):


		September 30, 2021				December 31, 2020				June 30, 2022						December 31, 2021
		Deposits and Pre-acquisition Costs		Remaining Purchase Price		Deposits and Pre-acquisition Costs		Remaining Purchase Price				Deposits and Pre-acquisition Costs		Remaining Purchase Price			Deposits and Pre-acquisition Costs		Remaining Purchase Price
Land options with VIEs	Land options with VIEs	$	141,168	$	2,163,429	$	126,900	$	1,586,551		Land options with VIEs	$	209,767	$	2,824,818		$	179,604	$	2,329,187
Other land options	Other land options	213,120		3,125,454		164,964		2,187,017			Other land options	259,461		3,674,049			225,318		3,128,691
		$	354,288	$	5,288,883	$	291,864	$	3,773,568			$	469,228	$	6,498,867		$	404,922	$	5,457,878

Our evaluations for land impairments, ~~NRV~~net realizable value adjustments, and write-offs of deposits and pre-acquisition costs are based on our best estimates of the future cash flows of 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.


		Operating Data by Segment ($000’s omitted)									Operating Data by Segment ($000’s omitted)
		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Revenues:	Revenues:									Revenues:
Northeast	Northeast	$	273,261	$	242,829	$	735,602	$	546,741	Northeast	$	248,454	$	285,874	$	412,785	$	462,342
Southeast	Southeast	587,875		434,782		1,541,910		1,275,039		Southeast	587,743		517,256		1,115,941		954,034
Florida	Florida	740,569		623,971		2,157,374		1,712,180		Florida	992,737		791,564		1,760,707		1,416,805
Midwest	Midwest	505,012		411,797		1,337,416		1,043,646		Midwest	553,767		465,590		1,006,441		832,403
Texas	Texas	412,568		359,358		1,256,983		1,069,444		Texas	573,763		470,294		1,020,036		844,416
West	West	868,283		775,349		2,250,407		1,940,445		West	886,947		737,877		1,630,973		1,382,124
		3,387,568		2,848,086		9,279,692		7,587,495			3,843,411		3,268,455		6,946,883		5,892,124
Financial Services	Financial Services	91,482		106,871		288,632		256,223		Financial Services	82,775		91,029		166,918		197,150
Consolidated revenues	Consolidated revenues	$	3,479,050	$	2,954,957	$	9,568,324	$	7,843,718	Consolidated revenues	$	3,926,186	$	3,359,484	$	7,113,801	$	6,089,274

Income (loss) before income taxes:	Income (loss) before income taxes:									Income (loss) before income taxes:
Northeast	Northeast	$	53,410	$	39,442	$	132,604	$	76,995	Northeast	$	59,971	$	53,300	$	87,370	$	79,194
Southeast	Southeast	109,407		69,275		274,174		196,798		Southeast	152,257		93,444		278,389		164,766
Florida (a)		133,642		106,394		382,682		258,991
Florida										Florida	247,435		147,833		408,129		249,040
Midwest	Midwest	72,537		62,638		196,205		137,707		Midwest	86,550		70,804		151,251		123,668
Texas	Texas	71,062		64,646		221,099		178,150		Texas	134,133		84,388		217,849		150,037
West	West	173,137		121,974		403,039		279,393		West	186,561		131,070		319,872		229,902
Other homebuilding ~~(b)~~(a)	Other homebuilding ~~(b)~~(a)	(41,432)		(44,266)		(122,317)		(67,128)		Other homebuilding ~~(b)~~(a)	(42,409)		7,180		(79,062)		(80,884)
		571,763		420,103		1,487,486		1,060,906			824,498		588,019		1,383,798		915,723
Financial Services	Financial Services	48,639		64,064		166,442		144,038		Financial Services	40,075		51,454		80,668		117,803
Consolidated income before income taxes	Consolidated income before income taxes	$	620,402	$	484,167	$	1,653,928	$	1,204,944	Consolidated income before income taxes	$	864,573	$	639,473	$	1,464,466	$	1,033,526

~~(b)~~Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the ~~operating~~other segments. Other homebuilding also includes insurance ~~adjustments~~reserve reversals of ~~$53.7~~$49.1 million and ~~$59.4~~$55.2 million infor the ~~nine~~three and six months ended ~~September~~June 30, 2021, ~~and 2020,~~ respectively (see Note 8)~~. Other homebuilding also includes~~, and a loss on debt retirement of $61.5 million in the ~~nine~~six months ended ~~September~~June 30, 2021 (see Note 4).


		Operating Data by Segment ($000’s omitted)									Operating Data by Segment ($000’s omitted)
		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Land-related charges (a):	Land-related charges (a):									Land-related charges (a):
Northeast	Northeast	$	223	$	419	$	357	$	5,264	Northeast	$	100	$	18	$	202	$	134
Southeast	Southeast	1,915		725		3,253		2,401		Southeast	1,933		883		3,835		1,339
Florida	Florida	209		108		642		1,089		Florida	641		302		1,612		433
Midwest	Midwest	477		190		969		1,466		Midwest	944		438		1,102		492
Texas	Texas	141		82		932		1,068		Texas	294		263		534		791
West	West	602		170		667		1,844		West	591		(19)		728		65
Other homebuilding	Other homebuilding	—		54		—		798		Other homebuilding	—		—		—		—
		$	3,567	$	1,748	$	6,820	$	13,930		$	4,503	$	1,885	$	8,013	$	3,254


		Operating Data by Segment											Operating Data by Segment
		($000's omitted)											($000's omitted)
		September 30, 2021											June 30, 2022
		Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets			Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	Northeast	$	388,349	$	219,528	$	19,342	$	627,219	$	720,459	Northeast	$	385,827	$	226,922	$	49,687	$	662,436	$	762,972
Southeast	Southeast	661,217		546,377		63,626		1,271,220		1,418,078		Southeast	928,441		469,621		85,948		1,484,010		1,651,072
Florida	Florida	921,505		801,772		150,170		1,873,447		2,263,896		Florida	1,352,877		902,309		228,910		2,484,096		3,002,618
Midwest	Midwest	590,282		426,622		22,623		1,039,527		1,158,792		Midwest	678,149		448,266		29,607		1,156,022		1,297,723
Texas	Texas	575,372		454,218		81,310		1,110,900		1,226,423		Texas	802,580		567,713		139,742		1,510,035		1,671,542
West	West	1,275,338		1,120,100		245,503		2,640,941		2,899,079		West	1,715,411		1,134,767		234,789		3,084,967		3,404,950
Other homebuilding (a)	Other homebuilding (a)	57,232		281,199		15,755		354,186		2,124,281		Other homebuilding (a)	52,762		279,373		15,743		347,878		1,173,333
		4,469,295		3,849,816		598,329		8,917,440		11,811,008			5,916,047		4,028,971		784,426		10,729,444		12,964,210
Financial Services	Financial Services	—		—		—		—		760,843		Financial Services	—		—		—		—		736,126
		$	4,469,295	$	3,849,816	$	598,329	$	8,917,440	$	12,571,851		$	5,916,047	$	4,028,971	$	784,426	$	10,729,444	$	13,700,336


		Operating Data by Segment											Operating Data by Segment
		($000's omitted)											($000's omitted)
		December 31, 2020											December 31, 2021
		Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets			Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	Northeast	$	342,737	$	203,561	$	68,865	$	615,163	$	712,205	Northeast	$	285,975	$	246,128	$	17,554	$	549,657	$	644,019
Southeast	Southeast	465,950		645,408		69,937		1,181,295		1,296,382		Southeast	604,310		537,072		67,815		1,209,197		1,362,852
Florida	Florida	638,394		921,962		116,709		1,677,065		1,967,788		Florida	943,110		866,266		289,388		2,098,764		2,545,457
Midwest	Midwest	364,839		424,169		18,173		807,181		911,984		Midwest	527,001		460,279		15,869		1,003,149		1,132,081
Texas	Texas	354,256		458,893		66,024		879,173		955,436		Texas	581,417		512,925		95,833		1,190,175		1,315,943
West	West	874,673		1,212,730		142,380		2,229,783		2,519,724		West	1,235,457		1,191,834		227,850		2,655,141		2,955,283
Other homebuilding (a)	Other homebuilding (a)	45,891		270,595		15,652		332,138		3,149,871		Other homebuilding (a)	48,039		276,511		16,936		341,486		2,314,839
		3,086,740		4,137,318		497,740		7,721,798		11,513,390			4,225,309		4,091,015		731,245		9,047,569		12,270,474
Financial Services	Financial Services	—		—		—		—		692,108		Financial Services	—		—		—		—		1,082,157
		$	3,086,740	$	4,137,318	$	497,740	$	7,721,798	$	12,205,498		$	4,225,309	$	4,091,015	$	731,245	$	9,047,569	$	13,352,631


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
4.250% unsecured senior notes due March 2021 (a)		$	—	$	425,954
5.500% unsecured senior notes due March 2026 (a)	5.500% unsecured senior notes due March 2026 (a)	500,000		700,000		5.500% unsecured senior notes due March 2026 (a)	$	500,000	$	500,000
5.000% unsecured senior notes due January 2027 (a)	5.000% unsecured senior notes due January 2027 (a)	500,000		600,000		5.000% unsecured senior notes due January 2027 (a)	500,000		500,000
7.875% unsecured senior notes due June 2032 (a)	7.875% unsecured senior notes due June 2032 (a)	300,000		300,000		7.875% unsecured senior notes due June 2032 (a)	300,000		300,000
6.375% unsecured senior notes due May 2033 (a)	6.375% unsecured senior notes due May 2033 (a)	400,000		400,000		6.375% unsecured senior notes due May 2033 (a)	400,000		400,000
6.000% unsecured senior notes due February 2035 (a)	6.000% unsecured senior notes due February 2035 (a)	300,000		300,000		6.000% unsecured senior notes due February 2035 (a)	300,000		300,000
Net premiums, discounts, and issuance costs (b)	Net premiums, discounts, and issuance costs (b)	(11,502)		(13,750)		Net premiums, discounts, and issuance costs (b)	(10,421)		(11,142)
Total senior notes	Total senior notes	1,988,498		2,712,204		Total senior notes	$	1,989,579	$	1,988,858
Other notes payable	Other notes payable	71,425		40,098		Other notes payable	40,533		40,185
Notes payable	Notes payable	$	2,059,923	$	2,752,302	Notes payable	$	2,030,112	$	2,029,043
Estimated fair value	Estimated fair value	$	2,582,625	$	3,415,662	Estimated fair value	$	2,101,783	$	2,496,875

In the ~~nine~~six months ended ~~September~~June 30, 2021, we retired $426.0 million of senior notes at their scheduled maturity date and also accelerated the retirement of $200.0 million and $100.0 million of our unsecured notes scheduled to mature in 2026 and 2027, respectively, through a cash tender offer. The retirement resulted in a loss of $61.5 million, which includes the write-off of debt issuance costs, unamortized discounts and premiums, and transaction fees.

Other notes payable include non-recourse and limited recourse notes with third parties that totaled ~~$71.4~~$40.5 million and ~~$40.1~~$40.2 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. These notes have maturities ranging up to ~~four~~three years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 6%. Such notes payable issued to acquire land inventory totaled $4.5 million and $29.4 million in the six months ended June 30, 2022 and 2021, respectively.

~~We maintain a revolving credit facility~~In June 2022, we entered into the Third Amended and Restated Credit Agreement (the "Revolving Credit Facility") ~~maturing in~~, which replaced our previous credit agreement. The Revolving Credit Facility contains substantially similar terms to the previous credit agreement, increased our borrowing capacity, and extended the maturity date from June 2023 ~~that~~to June 2027. The Revolving Credit Facility has a maximum borrowing capacity of ~~$1.0~~$1.3 billion and contains an uncommitted accordion feature that could increase the capacity to ~~$1.5~~$1.8 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 September 30, 2021.~~up to the maximum borrowing capacity. The interest rate on borrowings under the Revolving Credit Facility may be based on either the ~~London Interbank Offered~~Secured Overnight Financing Rate ("~~LIBOR"~~SOFR") or a base rate plus an applicable margin, as defined therein. As a precautionary measure during the initial phase of the COVID-19 pandemic, we made the decision in March 2020 to draw $700.0 million under the Revolving Credit Facility. In June 2020, we repaid the full outstanding balance of $700.0 million. We had no borrowings outstanding at either ~~September~~June 30, ~~2021~~2022 or December 31, ~~2020,~~2021, and ~~$282.3~~$347.0 million and ~~$249.7~~$298.8 million of letters of credit issued under the Revolving Credit Facility at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth ~~a minimum Interest Coverage Ratio,~~ and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of ~~September~~June 30, ~~2021,~~2022, we were in compliance with all covenants. Our available and unused borrowings under the Revolving Credit Facility, net of outstanding letters of credit, amounted to ~~$717.7~~$903.0 million and ~~$750.3~~$701.2 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

Pulte Mortgage maintains a master repurchase agreement with ~~third party~~third-party lenders (as amended, the "Repurchase Agreement") that matures on July 28, 2022. The maximum aggregate commitment was ~~$580.0~~$550.0 million at ~~September~~June 30, ~~2021,~~2022, which ~~will increase to $650.0 million during the seasonally high borrowing period from December 27, 2021~~continues through ~~January 13, 2022. At all other times, the maximum aggregate commitment ranges from $460.0 million to $550.0 million.~~maturity. 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 ~~$476.5~~$442.8 million and ~~$411.8~~$626.1 million outstanding under the Repurchase Agreement at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, and was in compliance with all of its covenants and requirements as of such dates.

In the ~~nine~~six months ended ~~September~~June 30, 2022, we declared cash dividends totaling $72.0 million and repurchased 17.4 million shares under our repurchase authorization for $794.2 million. In the six months ended June 30, 2021, we declared cash dividends totaling ~~$110.3~~$74.1 million and repurchased ~~12.0~~6.9 million shares under our repurchase authorization for ~~$614.3 million. In the nine months ended September 30, 2020, we declared cash dividends totaling $97.5 million and repurchased 2.8 million shares under our repurchase authorization for $95.7~~$353.7 million. On ~~April 26, 2021,~~January 31, 2022, the Board of Directors ~~approved an additional~~increased our share repurchase authorization ofby $1.0 billion. At ~~September~~June 30, ~~2021,~~2022, we had remaining authorization to repurchase ~~$740.6~~$663.3 million of common shares.

Under our share-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of shares, generally related to the payment of minimum tax obligations. In the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, participants surrendered shares valued at ~~$10.6~~$13.6 million and ~~$14.9~~$10.6 million, respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization.

Our effective tax rate ~~for~~in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~23.3%~~24.5% and ~~22.4%~~24.4%, respectively, compared to ~~14.0%~~21.3% and ~~19.6%~~21.9%, respectively, for the same periods in ~~2020.~~2021. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax ~~expense and benefits associated with~~expense. The 2021 tax rate also included a benefit for federal energy efficient home ~~credits. Income tax expense for the three~~credits, which expired at December 31, 2021, and nine months ended September 30, 2020 includes benefits of $53.2 million and $58.0 million, respectively, associated with the extension of federal energy efficient homes tax credits, including to homes closed in prior open tax years. The effective tax rate for the nine months ended September 30, 2021 also reflects a reduction in valuation allowances relating to projected utilization of certain state net operating loss carryforwards.

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, we had net deferred tax ~~assets~~liabilities of ~~$19.9~~$47.3 million and ~~$32.7~~$26.5 million, respectively. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time.

Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. We had ~~$23.9~~$23.7 million and ~~$30.9~~$22.5 million of gross unrecognized tax benefits at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. Additionally, we had accrued interest and penalties of ~~$4.0~~$3.4 million and ~~$2.8~~$2.9 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.


Financial Instrument	Financial Instrument	Fair Value Hierarchy	Fair Value				Financial Instrument	Fair Value Hierarchy	Fair Value
			September 30, 2021		December 31, 2020				June 30, 2022		December 31, 2021

Measured at fair value on a recurring basis:	Measured at fair value on a recurring basis:						Measured at fair value on a recurring basis:
Residential mortgage loans available-for-sale	Residential mortgage loans available-for-sale	Level 2	$	601,408	$	564,979	Residential mortgage loans available-for-sale	Level 2	$	553,789	$	947,139
IRLCs	IRLCs	Level 2	11,670		16,161		IRLCs	Level 2	19,839		8,549
Forward contracts	Forward contracts	Level 2	4,564		(5,436)		Forward contracts	Level 2	6,767		(579)
Whole loan commitments	Whole loan commitments	Level 2	1,177		(498)		Whole loan commitments	Level 2	449		380

Measured at fair value on a non-recurring basis:
House and land inventory		Level 3	$	—	$	582

Disclosed at fair value:	Disclosed at fair value:						Disclosed at fair value:
Cash, cash equivalents, and restricted cash	Cash, cash equivalents, and restricted cash	Level 1	$	1,624,651	$	2,632,235	Cash, cash equivalents, and restricted cash	Level 1	$	732,104	$	1,833,565
Financial Services debt	Financial Services debt	Level 2	476,504		411,821		Financial Services debt	Level 2	442,816		626,123

Senior notes payable	Senior notes payable	Level 2	2,511,200		3,375,564		Senior notes payable	Level 2	2,061,250		2,456,690
Other notes payable	Other notes payable	Level 2	71,425		40,098		Other notes payable	Level 2	40,533		40,185

The carrying amounts of cash and equivalents, Financial Services debt and other notes payable approximate their fair values due to their short-term nature and/or floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. The carrying value of senior notes was $2.0 billion ~~and $2.7 billion~~ at ~~September~~both June 30, ~~2021~~2022 and December 31, ~~2020, respectively.~~2021.

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 ~~$282.3~~$347.0 million and $2.1 billion, respectively, at June 30, 2022 and $298.8 million and $1.8 billion, respectively, at ~~September 30, 2021 and $249.7 million and $1.5 billion, respectively, at~~ December 31, ~~2020.~~2021. In the event any such letter of credit or surety bond is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond. Our surety bonds generally do not have stated expiration dates; rather we are released from the surety bonds as the underlying contractual performance is completed. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be drawn.

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 litigation, 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.

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 per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted):

We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers' compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits.

Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation, and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require us 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 our captive insurance subsidiaries represent self-insurance of these risks by us. A portion of 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 generally 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 approximately 1,000 individual claims related to general liability, property, errors and omissions, workers' compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and periodically evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims.

Our recorded reserves for all such claims totaled ~~$624.7~~$652.7 million and ~~$641.8~~$627.1 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. 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 ~~70%~~74% and ~~68%~~70% of the total general liability reserves at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses.

Housing market conditions can be volatile, 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~~third-party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are typically 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

Adjustments to reserves are recorded in the period in which the change in estimate occurs. We reduced general liability reserves by ~~$56.6~~$49.1 million and ~~$59.4~~$55.2 million induring the ~~nine~~three and six months ended ~~September~~June 30, 2021, ~~and 2020,~~ respectively, as a result of changes in estimates resulting from actual claim experience 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):


		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Balance, beginning of period	Balance, beginning of period	$	620,617	$	640,014	$	641,779	$	709,798	Balance, beginning of period	$	644,278	$	653,068	$	627,067	$	641,779
Reserves provided	Reserves provided	21,569		21,992		64,018		60,618		Reserves provided	23,705		22,907		43,542		42,449
Adjustments to previously recorded reserves	Adjustments to previously recorded reserves	(1,349)		—		(56,567)		(59,362)		Adjustments to previously recorded reserves	1,919		(49,136)		4,058		(55,218)
Payments, net (a)	Payments, net (a)	(16,175)		(9,460)		(24,568)		(58,508)		Payments, net (a)	(17,216)		(6,222)		(21,981)		(8,393)
Balance, end of period	Balance, end of period	$	624,662	$	652,546	$	624,662	$	652,546	Balance, end of period	$	652,686	$	620,617	$	652,686	$	620,617

~~$69.5~~ $57.5 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. Those receivables relate to costs incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of construction defect claims that we believe are insured. Given the complexity inherent with resolving construction defect claims in the homebuilding industry described above, there generally exists a significant lag between our payment of claims and our reimbursements from applicable insurance carriers or third parties. In addition, disputes between homebuilders and insurance carriers or third parties over coverage positions relating to construction defect claims are common. Resolution of claims involves the exchange of significant amounts of information and frequently involves legal action.

We lease certain office space and equipment for use in our operations. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Right-of-use ("ROU") assets and lease liabilities are recorded on the balance sheet for all leases with an expected term of at least one year. Some leases include one or more options to renew. The exercise of lease renewal options is generally at our discretion. The depreciable lives of ROU assets and leasehold improvements are limited to the expected lease term. Certain of our lease agreements include rental payments based on a pro-rata share of the lessor’s operating costs which are variable in nature. Our lease agreements do not contain any residual value guarantees or material restrictive covenants.

ROU assets are classified within other assets on the balance sheet, while lease liabilities are classified within accrued and other liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ROU assets and lease liabilities were ~~$78.0~~$70.8 million and ~~$96.9~~$87.2 million at ~~September~~June 30, ~~2021,~~2022, respectively, and ~~$71.3~~$74.3 million and ~~$91.4~~$92.7 million at December 31, ~~2020,~~2021, respectively. In the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, we recorded an additional ~~$2.1~~$3.7 million and ~~$15.2~~$4.2 million, respectively, of lease liabilities under operating leases, ~~respectively,~~ and ~~$13.0~~$12.0 million and $13.1 million in the ~~nine months ended September 30, 2020.~~comparable prior year periods. Payments on lease liabilities in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 totaled ~~$5.1~~$5.6 million and ~~$15.6~~$11.1 million, respectively, and ~~$4.8~~$5.2 million and ~~$14.8~~$10.5 million in the comparable prior year periods.

Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of less than one year. ~~For~~In the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022 our total lease expense was ~~$10.6~~$13.4 million and ~~$31.2~~$26.2 million, respectively, and ~~$9.6~~$10.3 million and ~~$28.2~~$20.6 million in the comparable prior year periods. Our total lease expense is inclusive of variable lease

costs of ~~$1.6~~$2.2 million and ~~$5.6~~$4.4 million ~~for~~in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively, and ~~$1.5~~$2.2 million and ~~$4.9~~$4.0 million in the comparable prior year periods, as well as short-term lease costs of ~~$3.7~~$5.5 million and ~~$9.7~~$10.5 million ~~for~~in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively and ~~$2.6~~$3.1 million and ~~$6.6~~$6.0 million in the comparable prior year periods. Sublease income was de minimis.


Years Ending December 31,	Years Ending December 31,			Years Ending December 31,
2021 (a)		$	5,571
2022		24,395
2022 (a)				2022 (a)	$	11,513
2023	2023	22,433		2023	24,413
2024	2024	16,270		2024	17,513
2025	2025	11,463		2025	12,084
2026				2026	8,934
Thereafter	Thereafter	26,092		Thereafter	20,369
Total lease payments (b)	Total lease payments (b)	106,224		Total lease payments (b)	94,826
Less: Interest (c)	Less: Interest (c)	9,292		Less: Interest (c)	(7,641)
Present value of lease liabilities (d)	Present value of lease liabilities (d)	$	96,932	Present value of lease liabilities (d)	$	87,185

~~We continue~~The following discussion and analysis of our financial condition and results of operations is provided as a supplement to ~~experience strong demand~~and should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q as well as our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for ~~our products as new orders~~the year ended December 31, 2021.

Our home sales revenues increased ~~12%~~18% for both the three and six months ended June 30, 2022 over the comparable prior year ~~for~~periods while our gross margins increased 430 bps and 400 bps, respectively, over the ~~nine~~same periods. These results were driven by increases in selling prices in response to robust consumer demand in 2021 and early 2022 when the majority of the homes closed in the three and six months ended ~~September~~June 30, ~~2021. While~~2022 were placed under contract with the customers. The strength in new orders were 17% lower than the prior year for the three months ended September 30, 2021, the decrease was driven primarily by a 14% reduction in community count in combination with Company actions to strategically manage the pace of sales to better align with current production levels. The favorablehome demand ~~for new housing has been driven by mortgage interest rates near historical lows, a~~and pricing during that period resulted from an extremely limited supply of new and existing home inventory, an increased appeal for homeownership and single-family living, and positive demographic trends, along with low unemployment levels and resulting wage growth. While many of these economic conditions continue, a ~~desire among some~~historic increase in mortgage interest rates during the first half of 2022 has tempered demand for new homes. The rising cost of housing due to increases in average sales prices in recent years and the recent increases in mortgage interest rates, coupled with general inflation in the U.S. economy, have placed additional pressure on overall housing affordability and have caused many potential home buyers to ~~exit more densely populated urban centers or to relocate from higher cost geographical regions.~~pause and reconsider their housing choices. As a result, ~~our order backlog increased 33% in units~~new orders were 23% and ~~56% in dollars as of September 30, 2021 over the prior year.~~

Due to the increased level of new homebuilding activity in the ~~homebuilding~~US, coupled with impacts on the US supply chain ~~including~~and construction and municipal workforces due to the COVID-19 pandemic, the availability of certain materials and construction labor, combined with delays in municipal approvals and inspections, ~~which has~~have elongated the production cycle of the homes we are constructing. While we are working with our supply partners, have significantly increased our speculative housing starts, and have hired additional construction and customer service employees, our production cycle times have extended in ~~the majority~~substantially all of our ~~markets due~~markets. The time required to construct a home was approximately eight weeks longer in the ~~challenges referenced above.~~second quarter of 2022 as compared with the prior year period and approximately two weeks longer than the first quarter of 2022. Due to these supply chain and labor challenges, we ~~are moderating~~moderated lot releases and the pace of new orders in the majority of our communities in 2021 and early 2022 in order to balance sales volume and production capacity to reduce backlog durations. Given the affordability challenges described above and the resulting impact on demand, we have reduced the number of communities where we are moderating lot releases and have increased sales incentives moderately in certain communities. We believe these conditions will continue to impact our industry for ~~at least~~ the ~~next few quarters.~~remainder of 2022.

WeThe noted supply chain and labor issues are also ~~facing~~leading to significant cost pressures in almost all areas of our business, but especially related to construction labor and ~~materials, due in large part to a shortage of workers and supply chain challenges resulting from ongoing effects of the COVID-19 pandemic and other macroeconomic factors.~~materials. Specifically, the cost of lumber ~~more than quadrupled from mid-2020~~continues to ~~mid-2021. While the cost of lumber has declined significantly since peaking in May 2021, it~~be extremely volatile and remains elevated compared to historical ~~norms, and~~norms. Additionally, the availability of certain wood products, including roof and floor trusses and oriented strand boards, remains challenged. We also continue to experience significant challenges with the cost and availability of windows, siding, cabinets, and appliances, among other supply categories. To date, we have been ~~and believe we will continue to be,~~ able to increase pricing to offset the majority of such cost increases, ~~due~~but there can be no assurances that we will continue to ~~ongoing high consumer demand.~~be able to do so in the future.

Despite the development of vaccines and more effective treatments for the physical impacts of COVID-19, there are no reliable estimates of how long the COVID-19 pandemic, or its related impacts on overall economic conditions or the global supply chain, will last. As a result, the unpredictability of the current economic and public health conditions will continue to evolve. The unpredictability of current economic conditions will also continue to evolve due to disruptions occurring as a result of the military conflict in Ukraine and related sanctions or other actions against Russia imposed by the U.S. and other countries. However, all of our operations continue to function at effectively full capacity subject to health and safety protocols, and we remain optimistic about future housing demand and our ability to continue expanding our business. Due to the ~~higher~~strength of consumer demand and ~~long~~extended municipal entitlement timelines, the number of our active communities ~~continues to decrease~~decreased in 2021 as we ~~close~~sold out communities at a pace faster than we ~~are opening~~opened new ones. ~~While we~~We have increased our investments in land acquisition and development weand expect that the number of our active communities will ~~not begin to~~ increase ~~meaningfully until~~as we proceed through 2022.


		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Income before income taxes:	Income before income taxes:									Income before income taxes:
Homebuilding	Homebuilding	$	571,763	$	420,103	$	1,487,486	$	1,060,906	Homebuilding	$	824,498	$	588,019	$	1,383,798	$	915,723
Financial Services	Financial Services	48,639		64,064		166,442		144,038		Financial Services	40,075		51,454		80,668		117,803
Income before income taxes	Income before income taxes	620,402		484,167		1,653,928		1,204,944		Income before income taxes	864,573		639,473		1,464,466		1,033,526
Income tax expense	Income tax expense	(144,853)		(67,769)		(370,873)		(236,216)		Income tax expense	(212,138)		(136,074)		(357,308)		(226,020)
Net income	Net income	$	475,549	$	416,398	$	1,283,055	$	968,728	Net income	$	652,435	$	503,399	$	1,107,158	$	807,506
Per share data - assuming dilution:	Per share data - assuming dilution:									Per share data - assuming dilution:
Net income	Net income	$	1.82	$	1.54	$	4.85	$	3.56	Net income	$	2.73	$	1.90	$	4.54	$	3.03

insurance ~~adjustments~~ reserve reversalsof ~~$53.7~~$49.1 million and $55.2 million for the ~~nine~~three and six months ended ~~September~~June 30, 2021, ~~compared to $59.4 million for the nine months ended September 30, 2020~~respectively (see Note 8). ~~This benefit in 2020 was partially offset by severance expense of $10.4 million for the nine months ended September 30, 2020, and a goodwill impairment charge totaling $20.2 million~~ (~~see~~ ~~Note 1) in the nine months ended September 30, 2020.~~ Results for the ~~nine~~six months ended ~~September~~June 30, 2021 also include a loss on debt retirement of $61.5 million (see Note 4).

•Financial Services income before income taxes ~~for~~in the three and six months ended ~~September~~June 30, ~~2021~~2022 decreased ~~24%~~22% and 32% compared to the same ~~period~~periods in ~~2020,~~2021, respectively, primarily as athe result of ~~increased competition in 2021 resulting in~~a lower capture rate and revenue per ~~loan. For~~loan due to increased competitiveness in the ~~nine months ended September 30, 2021, Financial Services income before income taxes increased 16% compared with the same period~~mortgage industry in ~~2020 as a result of higher volumes, which largely resulted from increased homebuilding volumes, partially offset by the lower revenue per loan.~~2022.

•Our effective tax rate ~~for~~in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~23.3%~~24.5% and ~~22.4%~~24.4%, respectively, compared to ~~14.0%~~21.3% and ~~19.6%~~21.9%, respectively, for the same periods in ~~2020.~~2021. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense, ~~and~~while the 2021 tax rate also included benefits associated with federal energy efficient home ~~credits. Income tax expense in the three~~credits, which expired at December 31, 2021, and nine months ended September 30, 2020 includes benefits of $53.2 million and $58.0 million, respectively, associated with the extension of federal energy efficient homes tax credits, including to homes closed in prior open tax years. The effective tax rate for the nine months ended September 30, 2021 also reflects a reduction in valuation allowances relating to projected utilization of certain state net operating loss carryforwards.


		Three Months Ended								Nine Months Ended									Three Months Ended								Six Months Ended
		September 30,								September 30,									June 30,								June 30,
		2021			2021 vs. 2020		2020			2021			2021 vs. 2020		2020				2022			2022 vs. 2021		2021			2022			2022 vs. 2021		2021
Home sale revenues	Home sale revenues	$	3,324,483		18	%	$	2,823,921		$	9,156,371		22	%	$	7,517,453		Home sale revenues	$	3,809,601		18	%	$	3,235,379		$	6,879,914		18	%	$	5,831,889
Land sale and other revenues	Land sale and other revenues	63,085			161	%	24,165			123,321			76	%	70,042			Land sale and other revenues	33,810			2	%	33,076			66,969			11	%	60,235
Total Homebuilding revenues	Total Homebuilding revenues	3,387,568			19	%	2,848,086			9,279,692			22	%	7,587,495			Total Homebuilding revenues	3,843,411			18	%	3,268,455			6,946,883			18	%	5,892,124
Home sale cost of revenues (a)	Home sale cost of revenues (a)	(2,443,074)			15	%	(2,131,741)			(6,754,204)			18	%	(5,706,814)			Home sale cost of revenues (a)	(2,631,356)			11	%	(2,375,495)			(4,812,430)			12	%	(4,311,130)
Land sale and other cost of revenues	Land sale and other cost of revenues	(47,483)			132	%	(20,502)			(103,313)			86	%	(55,558)			Land sale and other cost of revenues	(31,656)			1	%	(31,195)			(63,657)			14	%	(55,831)
Selling, general, and administrative expenses ("SG&A") (b)	Selling, general, and administrative expenses ("SG&A") (b)	(320,506)			18	%	(271,257)			(864,478)			18	%	(731,785)			Selling, general, and administrative expenses ("SG&A") (b)	(351,256)			29	%	(272,286)			(680,279)			25	%	(543,973)
Loss on debt retirement	Loss on debt retirement	—			(c)		—			(61,469)			(c)		—			Loss on debt retirement	—			(c)		—			—			(c)		(61,469)
Goodwill impairment		—			(c)		—			—			(c)		(20,190)
Other expense, net	Other expense, net	(4,742)			6	%	(4,483)			(8,742)			(29)	%	(12,242)			Other expense, net	(4,645)			218	%	(1,460)			(6,719)			68	%	(3,998)
Income before income taxes	Income before income taxes	$	571,763		36	%	$	420,103		$	1,487,486		40	%	$	1,060,906		Income before income taxes	$	824,498		40	%	$	588,019		$	1,383,798		51	%	$	915,723

Supplemental data:	Supplemental data:																	Supplemental data:
Gross margin from home sales	Gross margin from home sales	26.5		%	200 bps		24.5		%	26.2		%	210 bps		24.1		%	Gross margin from home sales	30.9		%	430 bps		26.6		%	30.1		%	400 bps		26.1		%
SG&A as a percentage of home sale revenues	SG&A as a percentage of home sale revenues	9.6		%	—		9.6		%	9.4		%	(30) bps		9.7		%	SG&A as a percentage of home sale revenues	9.2		%	80 bps		8.4		%	9.9		%	60 bps		9.3		%
Closings (units)	Closings (units)	7,007			9	%	6,454			20,283			14	%	17,764			Closings (units)	7,177			(1)	%	7,232			13,216			—	%	13,276
Average selling price	Average selling price	$	474		8	%	$	438		$	451		7	%	$	423		Average selling price	$	531		19	%	$	447		$	521		19	%	$	439
Net new orders (d):	Net new orders (d):																	Net new orders (d):
Units	Units	6,796			(17)	%	8,202			24,970			12	%	22,219			Units	6,418			(23)	%	8,322			14,389			(21)	%	18,174
Dollars	Dollars	$	3,780,354		4	%	$	3,634,158		$	12,668,805		32	%	$	9,579,982		Dollars	$	3,903,999		(8)	%	$	4,258,133		$	8,635,271		(3)	%	$	8,888,450
Cancellation rate	Cancellation rate	10		%			12		%	8		%			15		%	Cancellation rate	15		%			7		%	12		%			8		%
Average active communities	Average active communities	768			(14)	%	892			804			(9)	%	884			Average active communities	791			(2)	%	808			784			(5)	%	822
Backlog at September:
Backlog at June 30:																		Backlog at June 30:
Units	Units									19,845			33	%	14,962			Units									19,176			(4)	%	20,056
Dollars	Dollars									$	10,305,614		56	%	$	6,598,334		Dollars									$	11,614,167		18	%	$	9,849,743

Home sale revenues ~~for~~in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were higher than the prior year periods by ~~$500.6~~$574.2 million and ~~$1.6~~$1.0 billion, respectively. ~~For~~In the three months ended ~~September~~June 30, ~~2021,~~2022, the 18% increase ~~was attributable to~~resulted from a ~~9% increase in closings combined with an 8%~~19% increase in average selling ~~price. For~~price partially offset by a 1% decrease in closings. In the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the ~~22%~~18% increase ~~was attributable to~~resulted from a ~~14% increase in closings combined with a 7%~~19% increase in average selling price. The ~~increase~~increases in closings was primarily the result of favorable demand conditions, including a large backlog of orders. Beginning in March 2020, the COVID-19 pandemic began to unfavorably impact the demand environment. However, demand improved significantly beginning in June 2020 and has remained favorable. The higher average selling price ~~reflects~~reflected the impact

Home sale gross margins were ~~26.5%~~30.9% and ~~26.2% for~~30.1% in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively, compared to ~~24.5%~~26.6% and ~~24.1% for~~26.1% in the three and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively. Gross margins ~~for~~reflect the ~~three and nine months ended September 30, 2021 remained higher than prior year levels and reflect a combination of factors, including: strong~~robust consumer demand that existed in 2021 and early 2022 when the ~~low mortgage interest rate environment, and~~majority of the homes were placed under contract with the customers combined with limited supplies of new and existing housing inventory. AsThis resulted in a ~~result, the~~strong pricing environment, ~~remains strong,~~ which ~~has~~ allowed us to ~~effectively manage~~offset pressure in house and land costs through pricing actions. While costs remain elevated, we have been able to more than offset these cost increases through price increases. Additionally, while speculative home sales (homes started prior to receipt of a customer order) remain the minority of our operations, the current environment is providing opportunities for additional pricing and relative margin gains related to such homes.

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 sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sales and other revenues contributed income of ~~$15.6~~$2.2 million and ~~$20.0~~$3.3 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively, compared to ~~$3.7~~$1.9 million and ~~$14.5~~$4.4 million for the three and ~~nine~~six months ended ~~September 30, 2020, respectively. Income in the three and nine months ended September~~June 30, 2021, ~~included a gain of $12.9 million related to a land sale transaction in California that had been in the entitlement process for a number of years.~~respectively.

SG&A as a percentage of home sale revenues was ~~9.6%~~9.2% and ~~9.4%~~9.9% in the three and six months ended June 30, 2022, respectively, compared with 8.4% and 9.3% for the three and ~~nine~~six months ended ~~September~~June 30, 2021, ~~respectively, compared with 9.6% and 9.7% for the three and nine months ended September 30, 2020,~~ respectively. The gross dollar amount of our SG&A increased ~~$49.2~~$79.0 million, or ~~18%~~29%, for the three months ended ~~September~~June 30, ~~2021~~2022 compared to ~~September 30, 2020,~~the prior year period, and increased ~~$132.7~~$136.3 million, or ~~18%~~25%, for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 compared to ~~September 30, 2020.~~the prior year period. The ~~change~~increases in gross dollars in ~~2021~~2022 resulted ~~from the higher production volume~~ primarily ~~as the result of higher sales commissions expense. The improvement in year-to-date SG&A as a percentage of home sale revenues is primarily attributable to leverage gained~~ from ~~the higher revenues. This overhead leverage was partially offset in 2021 by~~ higher headcount and other overhead costs to support growth expectations and the increased number of homes in production, ~~volume as well as higher incentive compensation accruals due to~~combined with insurance reserve reversalsof $49.1 million and $55.2 million recorded in the ~~Company's strong operating performance. The nine~~three and six months ended ~~September~~June 30, 2020 also included severance expense of $10.3 million as we took actions in the second quarter of 2020 to reduce overhead expenses due to the disruption caused by the early stages of the COVID-19 pandemic.2021, respectively (see Note 8).


		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Write-offs of deposits and pre-acquisition costs	Write-offs of deposits and pre-acquisition costs	$	(3,567)	$	(1,692)	$	(6,801)	$	(8,335)	Write-offs of deposits and pre-acquisition costs	$	(4,503)	$	(1,866)	$	(8,013)	$	(3,235)
Amortization of intangible assets	Amortization of intangible assets	(3,612)		(5,041)		(13,571)		(14,643)		Amortization of intangible assets	(2,766)		(4,968)		(5,587)		(9,961)

Interest income	Interest income	436		891		1,541		6,024		Interest income	290		473		678		1,105
Interest expense	Interest expense	(115)		(225)		(387)		(4,022)		Interest expense	(65)		(138)		(150)		(272)
Equity in earnings of unconsolidated entities	Equity in earnings of unconsolidated entities	604		336		5,620		1,238		Equity in earnings of unconsolidated entities	723		4,190		1,944		5,017
Miscellaneous, net	Miscellaneous, net	1,512		1,248		4,856		7,496		Miscellaneous, net	1,676		849		4,409		3,348
Total other expense, net	Total other expense, net	$	(4,742)	$	(4,483)	$	(8,742)	$	(12,242)	Total other expense, net	$	(4,645)	$	(1,460)	$	(6,719)	$	(3,998)

Net new orders in units decreased ~~17%~~23% while net new orders in dollars ~~increased 4% for~~decreased 8% in the three months ended ~~September~~June 30, ~~2021 as~~2022 compared ~~with~~to the prior year period. Net new orders in units ~~increased 12%~~decreased 21% while net new orders in dollars ~~increased 32%~~decreased 3% for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared with the prior year period. The decreases in net new order volume in ~~2021 reflects favorable~~2022 are due primarily to reduced buyer demand ~~conditions partially offset by a~~in the second quarter of 2022, particularly for homes that are estimated to close further out in time, as the market responded to increased affordability challenges resulting from an historic increase in mortgage interest rates, increases in the price of homes, and the impact of inflationary pressures in the broader economy. Contributing factors also include our lower average community count ~~as more fully discussed above.~~and Company actions to intentionally moderate sales pace earlier in 2022 in order to manage our large backlog of orders and supply chain challenges. The cancellation rate (canceled orders for the period divided by gross new orders for the period) was ~~10%~~15% and 12% for the three and six months ended June 30, 2022, respectively, and 7% and 8% for the ~~three and nine months ended September 30, 2021, respectively, and 12% and 15% for the same~~comparable periods in ~~2020.~~2021, respectively. The increase in cancellation rates occurred primarily in the second quarter of 2022 due to a decrease in consumer confidence coupled with the increase in mortgage interest rates. Ending backlog dollars, which represents orders for homes that have not yet closed, increased ~~56%~~18% at ~~September~~June 30, 2022 compared with June 30, 2021, ~~compared~~as the result of higher average selling prices coupled with ~~September 30, 2020.~~elongated production cycle times.


		September 30, 2021	September 30, 2020		June 30, 2022	June 30, 2021
Sold	Sold	15,676	9,696	Sold	16,560	15,111
Unsold	Unsold			Unsold
Under construction	Under construction	3,017	1,405	Under construction	6,598	2,145
Completed	Completed	109	350	Completed	191	88
		3,126	1,755		6,789	2,233
Models	Models	1,212	1,277	Models	1,286	1,198
Total	Total	20,014	12,728	Total	24,635	18,542

The number of homes in production at ~~September~~June 30, ~~2021~~2022 was ~~57%~~33% higher than at ~~September~~June 30, ~~2020.~~2021. The increase in sold homes under production isreflects the ~~result~~size of ~~the significant increase in demand, coupled~~our backlog combined with elongated cycle times, as more fully discussed above, due to supply chain delays for certain materials and labor and obtaining necessary approvals, permits, and inspections from local municipalities. The significantly higher level of unsold homes, or speculative homes, under construction reflects ~~a conscious~~our strategic decision to increase ~~our~~ housing starts of speculative units in response to the noted supply chain challenges and to ~~meet demand. The lower unsold completed inventory reflects our ability to sell these speculative units given the strong demand environment.~~have product available that can close quickly for customers that are concerned about potentially higher mortgage interest rates.


		September 30, 2021						December 31, 2020							June 30, 2022						December 31, 2021
		Owned		Optioned		Controlled		Owned		Optioned		Controlled			Owned		Optioned		Controlled		Owned		Optioned		Controlled
Northeast	Northeast	4,739		7,305		12,044		4,956		4,001		8,957		Northeast	4,781		6,726		11,507		4,422		7,637		12,059
Southeast	Southeast	15,621		25,803		41,424		15,051		18,248		33,299		Southeast	16,761		30,225		46,986		15,604		28,887		44,491
Florida	Florida	23,135		34,813		57,948		20,737		24,396		45,133		Florida	28,435		34,319		62,754		27,654		32,240		59,894
Midwest	Midwest	12,186		17,294		29,480		9,728		14,734		24,462		Midwest	12,704		16,909		29,613		11,723		17,118		28,841
Texas	Texas	19,267		20,606		39,873		15,923		17,841		33,764		Texas	20,751		26,399		47,150		20,538		21,235		41,773
West	West	27,882		13,973		41,855		24,968		9,769		34,737		West	29,524		15,724		45,248		29,137		12,101		41,238
Total	Total	102,830		119,794		222,624		91,363		88,989		180,352		Total	112,956		130,302		243,258		109,078		119,218		228,296
															46	%	54	%	100	%	48	%	52	%	100	%

Developed (%)	Developed (%)	38	%	14	%	25	%	43	%	16	%	30	%	Developed (%)	40	%	15	%	27	%	38	%	13	%	25	%

While competition for well-positioned land is robust, we continue to pursue land investments that we believe can achieve appropriate risk-adjusted returns on invested capital and have increased our controlled lot count asin response to the ~~result of the strong~~ demand environment. Additionally, we continue to seek to increase the percentage of our lots that are controlled via land option ~~agreement.~~agreements. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. The remaining purchase price under our land option agreements totaled ~~$5.3~~$6.5 billion at ~~September~~June 30, ~~2021.~~


		Operating Data by Segment ($000's omitted)													Operating Data by Segment ($000's omitted)
		Three Months Ended						Nine Months Ended							Three Months Ended						Six Months Ended
		September 30,						September 30,							June 30,						June 30,
		2021		2021 vs. 2020		2020		2021		2021 vs. 2020		2020			2022		2022 vs. 2021		2021		2022		2022 vs. 2021		2021
Home sale revenues:	Home sale revenues:													Home sale revenues:
Northeast	Northeast	$	273,206	13	%	$	242,758	$	735,418	35	%	$	546,437	Northeast	$	248,399	(13)	%	$	285,794	$	412,729	(11)	%	$	462,211
Southeast	Southeast	587,292		36	%	432,072		1,539,928		21	%	1,271,001		Southeast	587,184		14	%	516,369		1,114,995		17	%	952,636
Florida	Florida	707,990		17	%	605,731		2,072,344		25	%	1,655,034		Florida	967,600		27	%	763,412		1,706,549		25	%	1,364,354
Midwest	Midwest	504,273		23	%	410,384		1,332,407		28	%	1,039,114		Midwest	552,803		20	%	462,357		1,004,006		21	%	828,135
Texas	Texas	412,201		15	%	358,177		1,255,377		18	%	1,067,681		Texas	569,842		21	%	469,916		1,014,048		20	%	843,177
West	West	839,521		8	%	774,799		2,220,897		15	%	1,938,186		West	883,773		20	%	737,531		1,627,587		18	%	1,381,376
		$	3,324,483	18	%	$	2,823,921	$	9,156,371	22	%	$	7,517,453		$	3,809,601	18	%	$	3,235,379	$	6,879,914	18	%	$	5,831,889
Income (loss) before income taxes (a):	Income (loss) before income taxes (a):													Income (loss) before income taxes (a):
Northeast	Northeast	$	53,410	35	%	$	39,442	$	132,604	72	%	$	76,995	Northeast	$	59,971	13	%	$	53,300	$	87,370	10	%	$	79,194
Southeast	Southeast	109,407		58	%	69,275		274,174		39	%	196,798		Southeast	152,257		63	%	93,444		278,389		69	%	164,766
Florida (b)		133,642		26	%	106,394		382,682		48	%	258,991
Florida														Florida	247,435		67	%	147,833		408,129		64	%	249,040
Midwest	Midwest	72,537		16	%	62,638		196,205		42	%	137,707		Midwest	86,550		22	%	70,804		151,251		22	%	123,668
Texas	Texas	71,062		10	%	64,646		221,099		24	%	178,150		Texas	134,133		59	%	84,388		217,849		45	%	150,037
West	West	173,137		42	%	121,974		403,039		44	%	279,393		West	186,561		42	%	131,070		319,872		39	%	229,902
Other homebuilding ~~(c)~~(b)	Other homebuilding ~~(c)~~(b)	(41,432)		(6)	%	(44,266)		(122,317)		(82)	%	(67,128)		Other homebuilding ~~(c)~~(b)	(42,409)		(c)		7,180		(79,062)		2	%	(80,884)
		$	571,763	36	%	$	420,103	$	1,487,486	40	%	$	1,060,906		$	824,498	40	%	$	588,019	$	1,383,798	51	%	$	915,723

~~(c)~~ Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the operating segments. Other homebuilding also includes insurance ~~adjustments~~reserve reversals of ~~$53.7~~$49.1 million and ~~$59.4~~$55.2 million infor the ~~nine~~three and six months ended ~~September~~June 30, 2021, ~~and 2020,~~ respectively (see Note 8)~~. Other homebuilding also includes~~ and a loss on debt retirement of $61.5 million in the ~~nine~~six months ended ~~September~~June 30, 2021 (see Note 4).


		Operating Data by Segment ($000's omitted)													Operating Data by Segment ($000's omitted)
		Three Months Ended						Nine Months Ended							Three Months Ended						Six Months Ended
		September 30,						September 30,							June 30,						June 30,
		2021		2021 vs. 2020		2020		2021		2021 vs. 2020		2020			2022		2022 vs. 2021		2021		2022		2022 vs. 2021		2021
Closings (units):	Closings (units):													Closings (units):
Northeast	Northeast	472		10	%	428		1,286		29	%	998		Northeast	386		(22)	%	497		648		(20)	%	814
Southeast	Southeast	1,278		21	%	1,057		3,507		14	%	3,089		Southeast	1,085		(8)	%	1,175		2,111		(5)	%	2,229
Florida	Florida	1,502		5	%	1,427		4,614		15	%	4,017		Florida	1,779		5	%	1,692		3,212		3	%	3,112
Midwest	Midwest	1,123		18	%	950		3,004		22	%	2,466		Midwest	1,131		9	%	1,042		2,075		10	%	1,881
Texas	Texas	1,276		10	%	1,162		4,020		15	%	3,484		Texas	1,483		(2)	%	1,519		2,693		(2)	%	2,744
West	West	1,356		(5)	%	1,430		3,852		4	%	3,710		West	1,313		—	%	1,307		2,477		(1)	%	2,496
		7,007		9	%	6,454		20,283		14	%	17,764			7,177		(1)	%	7,232		13,216		—	%	13,276

Average selling price:	Average selling price:													Average selling price:
Northeast	Northeast	$	579	2	%	$	567	$	572	4	%	$	548	Northeast	$	644	12	%	$	575	$	637	12	%	$	568
Southeast	Southeast	460		12	%	409		439		7	%	411		Southeast	541		23	%	439		528		24	%	427
Florida	Florida	471		11	%	424		449		9	%	412		Florida	544		21	%	451		531		21	%	438
Midwest	Midwest	449		4	%	432		444		5	%	421		Midwest	489		10	%	444		484		10	%	440
Texas	Texas	323		5	%	308		312		2	%	306		Texas	384		24	%	309		377		23	%	307
West	West	619		14	%	542		577		10	%	522		West	673		19	%	564		657		19	%	553
		$	474	8	%	$	438	$	451	7	%	$	423		$	531	19	%	$	447	$	521	19	%	$	439

Net new orders - units:	Net new orders - units:													Net new orders - units:
Northeast	Northeast	368		(38)	%	591		1,451		2	%	1,422		Northeast	384		(19)	%	475		809		(25)	%	1,083
Southeast	Southeast	1,085		(14)	%	1,255		4,010		15	%	3,491		Southeast	1,304		(4)	%	1,364		2,635		(10)	%	2,925
Florida	Florida	1,844		(1)	%	1,868		6,451		28	%	5,041		Florida	1,554		(29)	%	2,203		3,427		(26)	%	4,607
Midwest	Midwest	1,075		(14)	%	1,243		3,936		25	%	3,158		Midwest	842		(35)	%	1,300		2,005		(30)	%	2,861
Texas	Texas	1,117		(33)	%	1,673		4,468		(3)	%	4,613		Texas	1,225		(16)	%	1,459		2,739		(18)	%	3,351
West	West	1,307		(17)	%	1,572		4,654		4	%	4,494		West	1,109		(27)	%	1,521		2,774		(17)	%	3,347
		6,796		(17)	%	8,202		24,970		12	%	22,219			6,418		(23)	%	8,322		14,389		(21)	%	18,174

Net new orders - dollars:	Net new orders - dollars:													Net new orders - dollars:
Northeast	Northeast	$	221,016	(34)	%	$	336,514	$	864,079	9	%	$	796,058	Northeast	$	276,044	(5)	%	$	291,824	$	571,415	(11)	%	$	643,064
Southeast	Southeast	588,400		11	%	529,037		1,966,434		35	%	1,452,429		Southeast	767,628		15	%	669,740		1,531,349		11	%	1,378,034
Florida	Florida	1,043,871		30	%	803,858		3,308,173		58	%	2,093,957		Florida	1,062,458		(6)	%	1,130,005		2,277,708		1	%	2,264,301
Midwest	Midwest	538,621		(2)	%	550,500		1,856,704		36	%	1,370,247		Midwest	465,728		(24)	%	611,652		1,077,358		(18)	%	1,318,082
Texas	Texas	463,727		(10)	%	515,721		1,655,023		19	%	1,389,186		Texas	522,691		(7)	%	561,005		1,165,900		(2)	%	1,191,296
West	West	924,719		3	%	898,528		3,018,392		22	%	2,478,105		West	809,450		(19)	%	993,907		2,011,541		(4)	%	2,093,673
		$	3,780,354	4	%	$	3,634,158	$	12,668,805	32	%	$	9,579,982		$	3,903,999	(8)	%	$	4,258,133	$	8,635,271	(3)	%	$	8,888,450


		Operating Data by Segment ($000's omitted)														Operating Data by Segment ($000's omitted)
		Three Months Ended					Nine Months Ended									Three Months Ended				Six Months Ended
		September 30,					September 30,									June 30,				June 30,
		2021		2021 vs. 2020	2020		2021			2021 vs. 2020		2020				2022		2021		2022			2022 vs. 2021		2021
Cancellation rates:	Cancellation rates:														Cancellation rates:
Northeast	Northeast	9	%		7	%	7		%			10		%	Northeast	9	%	8	%	7		%			6		%
Southeast	Southeast	6	%		7	%	6		%			11		%	Southeast	7	%	6	%	6		%			6		%
Florida	Florida	8	%		12	%	7		%			14		%	Florida	13	%	5	%	10		%			7		%
Midwest	Midwest	7	%		8	%	6		%			11		%	Midwest	12	%	7	%	10		%			6		%
Texas	Texas	16	%		15	%	12		%			18		%	Texas	21	%	10	%	17		%			10		%
West	West	13	%		18	%	11		%			19		%	West	23	%	10	%	16		%			10		%
		10	%		12	%	8		%			15		%		15	%	7	%	12		%			8		%

Unit backlog:	Unit backlog:														Unit backlog:
Northeast	Northeast						1,118			10	%	1,013			Northeast					949			(22)	%	1,222
Southeast	Southeast						2,843			25	%	2,267			Southeast					3,000			(1)	%	3,036
Florida	Florida						5,491			65	%	3,330			Florida					5,645			10	%	5,149
Midwest	Midwest						3,131			40	%	2,232			Midwest					2,618			(18)	%	3,179
Texas	Texas						3,501			18	%	2,979			Texas					3,145			(14)	%	3,660
West	West						3,761			20	%	3,141			West					3,819			—	%	3,810
							19,845			33	%	14,962								19,176			(4)	%	20,056

Backlog dollars:	Backlog dollars:														Backlog dollars:
Northeast	Northeast						$	689,984		16	%	$	597,318		Northeast					$	669,919		(10)	%	$	742,175
Southeast	Southeast						1,457,415			51	%	964,896			Southeast					1,779,216			22	%	1,456,308
Florida	Florida						2,863,695			102	%	1,417,185			Florida					3,628,990			44	%	2,527,814
Midwest	Midwest						1,514,932			54	%	983,110			Midwest					1,421,507			(4)	%	1,480,583
Texas	Texas						1,380,737			51	%	912,372			Texas					1,453,453			9	%	1,329,210
West	West						2,398,851			39	%	1,723,453			West					2,661,082			15	%	2,313,653
							$	10,305,614		56	%	$	6,598,334							$	11,614,167		18	%	$	9,849,743


		Operating Data by Segment ($000’s omitted)									Operating Data by Segment ($000’s omitted)
		Three Months Ended				Nine Months Ended					Three Months Ended				Six Months Ended
		September 30,				September 30,					June 30,				June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Land-related charges (a):	Land-related charges (a):									Land-related charges (a):
Northeast	Northeast	$	223	$	419	$	357	$	5,264	Northeast	$	100	$	18	$	202	$	134
Southeast	Southeast	1,915		725		3,253		2,401		Southeast	1,933		883		3,835		1,339
Florida	Florida	209		108		642		1,089		Florida	641		302		1,612		433
Midwest	Midwest	477		190		969		1,466		Midwest	944		438		1,102		492
Texas	Texas	141		82		932		1,068		Texas	294		263		534		791
West	West	602		170		667		1,844		West	591		(19)		728		65
Other homebuilding	Other homebuilding	—		54		—		798		Other homebuilding	—		—		—		—
		$	3,567	$	1,748	$	6,820	$	13,930		$	4,503	$	1,885	$	8,013	$	3,254

For the ~~third~~second quarter of ~~2021,~~2022, Northeast home sale revenues ~~increased~~decreased by 13% when compared with the prior year period due to a ~~10% increase~~22% decrease in closings ~~combined with~~partially offset by a 2%12% increase in average selling price. The ~~increase~~decrease in closings ~~occurred across all markets,~~was primarily due to the timing of projects in our Mid-Atlantic operations, while the increase in average selling price ~~was mixed among~~occurred across all markets. Income before income taxes increased ~~35%~~13% primarily due to higher gross margins. Net new orders decreased across all markets.

For the six months ended June 30, 2022, Northeast home sale revenues decreased by 11% when compared with the prior year period due to a 20% decrease in closings partially offset by a 12% increase in average selling price. The decrease in closings was primarily due to the timing of projects in our Mid-Atlantic operations, while the increase in average selling price occurred across all markets. Income before income taxes increased 10% primarily due to higher gross margins. Net new orders decreased across all markets.

For the second quarter of 2022, Southeast home sale revenues increased 14% when compared with the prior year period due to a 23% increase in average selling price partially offset by a 8% decrease in closings. The increase in average selling price and the decrease in closings occurred across all markets. Income before income taxes increased 63% primarily due to increased revenues, as well as improved gross margins ~~and overhead management which occurred~~ across ~~the majority of~~all markets. ~~Net~~The decrease in net new orders ~~decreased across the majority of~~was mixed among markets.

For the ~~nine~~six months ended ~~September~~June 30, ~~2021, Northeast~~2022, Southeast home sale revenues increased ~~by 35%~~17% when compared with the prior year period due to a ~~29% increase in closings combined with a 4%~~24% increase in average selling ~~price.~~price partially offset by a 5% decrease in closings. The increase in ~~closings and~~ average selling price occurred across all markets while the decrease in closings occurred across the majority of markets. Income before income taxes increased ~~72%~~69% primarily due to increased revenues, as well as improved gross margins ~~which occurred~~ across all ~~markets and improved overhead management which occurred across the majority of~~ markets. ~~Net~~The decrease in net new orders ~~increased across the majority of~~was mixed among markets.

For the ~~third~~second quarter of ~~2021, Southeast~~2022, Florida home sale revenues increased ~~36%~~27% when compared with the prior year period ~~as the result of~~due to a ~~21%~~5% increase in closings combined with a ~~12%~~21% increase in average selling price. The increase in closings occurred across the majority of markets, while the increase in average selling price occurred across all markets. Income before income taxes increased ~~58%~~67% primarily due to increased revenues, as well as improved gross margins ~~and improved overhead management which occurred~~ across ~~the majority of~~all markets. Net new orders decreased across ~~all~~the majority of markets.

For the ~~nine~~six months ended ~~September~~June 30, ~~2021, Southeast~~2022, Florida home sale revenues increased ~~21%~~25% when compared with the prior year period ~~as the result of~~due to a ~~14%~~3% increase in closings combined with a 7%21% increase in the average selling price. The increase in closings ~~and~~occurred across the majority of markets. The increase in average selling price occurred across all markets. Income before income taxes increased ~~39%~~64% primarily due to increased revenues, as well as improved gross margins ~~which occurred~~across all markets. Net new orders decreased across the majority of markets. ~~Net new orders increased across all markets.~~

For the ~~third~~second quarter of ~~2021, Florida~~2022, Midwest home sale revenues increased ~~17%~~20% when compared with the prior year period due to a 5%9% increase in closings combined with ~~an 11%~~a 10% increase in ~~the~~ average selling price. The increase in closings occurred across the majority of markets while the increase in average selling price occurred across all markets. Income before income taxes increased ~~26%~~22% primarily due to ~~increased~~higher revenues ~~as well as improved~~and gross ~~margins and improved overhead management which occurred~~margins. Net new orders decreased across the majority of markets. ~~Net new orders decreased across all markets except North Florida.~~

For the ~~nine~~six months ended ~~September~~June 30, ~~2021, Florida~~2022, Midwest home sale revenues increased ~~25%~~21% when compared with the prior year period due to a 15% increase in closings combined with an 9% increase in the average selling price. The increase in closings and average selling price occurred across all markets. Income before income taxes increased 48% primarily due to increased revenues, as well as improved gross margins and improved overhead management which occurred across all markets, combined with the impact of a goodwill impairment charge of $20.2 million in the nine months ended September 30, 2020 (see ~~Note 1). Net new orders increased across all markets.~~

~~For the third quarter of 2021, Midwest home sale revenues increased 23% compared with the prior year period due to a 18%~~10% increase in closings combined with a 4%10% increase in average selling price. The increase in closings ~~occurred across all markets, while~~and the increase in average selling price occurred across the majority of markets. Income before income taxes increased ~~16%~~22% primarily due to higher revenues and gross margins. Net new orders decreased across the majority of markets.

For the second quarter of 2022, Texas home sale revenues increased 21% when compared with the prior year period due to a 24% increase in average selling price partially offset by a 2% decrease in closings. The increase in average selling price occurred across all markets while the decrease in closings was mixed among markets. Income before income taxes increased 59% primarily due to higher revenues ~~as well as improved~~and gross margins ~~and improved overhead management which occurred~~ across the majority of markets. Net new orders decreased across the majority of markets.

For the ~~nine~~six months ended ~~September~~June 30, ~~2021, Midwest~~2022, Texas home sale revenues increased ~~28%~~20% when compared with the prior year period due to a ~~22%~~23% increase in average selling price partially offset by a 2% decrease in closings. The increase in average selling price occurred across all markets while the decrease in closings ~~combined~~was mixed among markets. Income before income taxes increased 45% primarily due to higher revenues and gross margins across the majority of markets. Net new orders decreased across the majority of markets.

For the second quarter of 2022, West home sale revenues increased 20% when compared with the prior year period due to a 5%19% increase in average selling price. The increase in ~~closings occurred across all markets, while the increase in~~ average selling price occurred across ~~the majority of~~all markets. Income before income taxes increased 42% primarily due to increased revenues ~~as well as improved~~and gross margins ~~which occurred the majority of markets. Net new orders increased across all markets.~~

For the third quarter of 2021, Texas home sale revenues increased 15% compared with the prior year period due to a 10% increase in closings combined with a 5% increase in average selling price. The increase in closings and average selling price occurred across the majority of markets. Income before income taxes increased 10% primarily due to increased revenues, as well as improved gross margins and improved overhead management which occurred across the majority of markets. Net new orders decreased across all markets.

For the ~~nine~~six months ended ~~September~~June 30, ~~2021, Texas~~2022, West home sale revenues increased 18% when compared with the prior year period due to a ~~15%~~19% increase in ~~closings combined with~~average selling price partially offset by a 2%1% decrease in closings. The increase in ~~the~~ average selling ~~price. The increase~~price occurred across all markets while the decrease in closings occurred across the majority of ~~markets, while the increase in average selling price occurred in all~~ markets. Income before income taxes increased ~~24%~~39% primarily due to increased revenues ~~as well as improved~~and gross margins ~~and improved overhead management, which occurred~~ across the majority of markets. Net new orders decreased across all ~~markets except Dallas and Austin.~~

For the third quarter of 2021, West home sale revenues increased 8% compared with the prior year period due to a 14% increase in average selling price partially offset by a 5% decrease in closings. The decrease in closings occurred across the majority of markets, while the increase in average selling price occurred across the majority of markets. ~~Income before income taxes increased 42% primarily due to increased revenues, improved overhead management and gross margins across the majority of markets, andgains of $12.9 million related to a land sale transaction in California~~. ~~Net new orders decreased across the majority of markets.~~

For the nine months ended September 30, 2021, West home sale revenues increased 15% compared with the prior year period due to a 4% increase in closings combined with an 10% increase in average selling price. The increase in closings and average selling price occurred across the majority of markets. Income before income taxes increased 44% primarily due to increased revenues, improved overhead management and gross margins across all markets, and~~gains of $12.9 million related to a land sale transaction in California. Net new orders increased across the majority of markets.~~

We conduct our Financial Services operations, which include mortgage banking, title, and insurance brokerage operations, through Pulte Mortgage LLC ("Pulte Mortgage") and other subsidiaries. In originating mortgage loans, we initially use our own funds, including funds available pursuant to a credit ~~agreements~~agreement with third parties. Substantially all of the loans we originate are sold in the secondary market within a short period of time after origination, generally within 30 days. We also 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 loans and related servicing rights for only a short period of time. Operating as a captive business model primarily targeted to support our Homebuilding operations, the business levels of our Financial Services operations are highly correlated to Homebuilding, as Homebuilding customers continue to account for substantially all of its business. We believe that our mortgage capture rate, which represents loan originations from our Homebuilding operations as a percentage of total loan opportunities ~~excluding cash closings,~~ from our Homebuilding operations, excluding cash closings, is an important metric in evaluating the effectiveness of our captive mortgage business model. The following tables present selected financial information for our Financial Services operations ($000's omitted):

Three Months Ended Nine Months Ended
September 30, September 30,
2021 2021 vs. 2020 2020 2021 2021 vs. 2020 2020
Mortgage revenues $ 71,238 (20) % $ 88,819 $ 230,505 11 % $ 206,964
Title services revenues 16,818 13 % 14,940 48,565 17 % 41,465
Insurance brokerage commissions 3,426 10 % 3,112 9,562 23 % 7,794
Total Financial Services revenues 91,482 (14) % 106,871 288,632 13 % 256,223
Expenses (42,835) — % (42,807) (122,921) 10 % (112,135)
Other income (expense), net (8) (a) — 731 (a) (50)
Income before income taxes $ 48,639 (24) % $ 64,064 $ 166,442 16 % $ 144,038
Total originations:
Loans 5,078 5 % 4,858 15,082 14 % 13,202
Principal $ 1,810,722 11 % $ 1,625,250 $ 5,186,913 21 % $ 4,274,619


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022		2022 vs. 2021		2021		2022		2022 vs. 2021		2021
Mortgage revenues	$	58,082	(17)	%	$	70,227	$	121,237	(24)	%	$	159,267
Title services revenues	19,762		13	%	17,414		35,724		13	%	31,747
Insurance brokerage commissions	4,931		46	%	3,388		9,957		62	%	6,136
Total Financial Services revenues	82,775		(9)	%	91,029		166,918		(15)	%	197,150
Expenses	(43,847)		9	%	(40,411)		(87,333)		9	%	(80,086)
Other income (expense), net	1,147		(a)		836		1,083		(a)		739
Income before income taxes	$	40,075	(22)	%	$	51,454	$	80,668	(32)	%	$	117,803
Total originations:
Loans	4,568		(14)	%	5,296		8,625		(14)	%	10,004
Principal	$	1,754,715	(3)	%	$	1,811,523	$	3,294,613	(2)	%	$	3,376,191


		Nine Months Ended					Six Months Ended
		September 30,					June 30,
		2021		2020			2022		2021
Supplemental data:	Supplemental data:					Supplemental data:
Capture rate	Capture rate	86.1	%	86.5	%	Capture rate	79.5	%	86.9	%
Average FICO score	Average FICO score	751		751		Average FICO score	748		751

Funded origination breakdown:	Funded origination breakdown:					Funded origination breakdown:
Government (FHA, VA, USDA)	Government (FHA, VA, USDA)	20	%	21	%	Government (FHA, VA, USDA)	20	%	21	%
Other agency	Other agency	73	%	71	%	Other agency	73	%	73	%
Total agency	Total agency	93	%	92	%	Total agency	93	%	94	%
Non-agency	Non-agency	7	%	8	%	Non-agency	7	%	6	%
Total funded originations	Total funded originations	100	%	100	%	Total funded originations	100	%	100	%

~~Mortgage interest rates have been at or near historically low levels through 2020 and~~periods in 2021. The decreases occurred as the ~~first nine months~~result of ~~2021. In~~a decrease in the ~~three and nine months ended September 30, 2021, loan margins are lower than the prior year periods~~number of loans originated due to ~~competition driven by a reduction in refinance volume within~~ the ~~mortgage industry, which has lowered gains from the sale of mortgages in the secondary market. Total Financial Services revenues for the three months ended September 30, 2021 decreased 14% compared~~lower capture rate combined with ~~the same period in 2020 primarily as a result of~~ lower revenue per loan ~~due to this increased competition,~~resulting from the competitive lending environment. These factors were partially offset by a higher average loan ~~origination volume resulting from Homebuilder volume growth. Financial Services revenues for~~amount as the ~~nine months ended September 30, 2021 increased 13% compared with the same period in 2020 primarily as a~~ result of the higher ~~loan origination volume due to Homebuilder volume growth, partially offset by lower revenue per loan.~~average selling price within Homebuilding.

Income before income taxes ~~for~~in the three and six months ended ~~September~~June 30, ~~2021~~2022 decreased ~~24%~~22% and 32% compared to the same ~~period~~periods in ~~2020,~~2021, respectively, primarily ~~as a result of lower revenue per loan, partially offset by higher volume. For the nine months ended September 30, 2021, income before income taxes increased 16% compared with the same period in 2020~~ as the result of ~~higher volume, partially offset by~~a lower capture rate and revenue per ~~loan.~~loan due to increased competitiveness in the mortgage industry in 2022.

Our effective income tax rate for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~23.3%~~24.5% and ~~22.4%~~24.4%, respectively, compared to ~~14.0%~~21.3% and ~~19.6%~~21.9%, respectively, for the same periods in ~~2020.~~2021. The ~~2020~~2022 effective tax rates are ~~lower~~higher than the 2021 effective tax rates for the same periods primarily due to the benefit of federal energy efficient home ~~credits.~~credits in 2021, which expired at December 31, 2021, and a reduction in valuation allowances relating to projected utilization of certain state net operating loss carryforwards.

At ~~September~~June 30, ~~2021,~~2022, we had unrestricted cash and equivalents of ~~$1.6 billion,~~$662.8 million, restricted cash balances of ~~$56.3~~$69.3 million, and ~~$717.7~~$903.0 million available under our Revolving Credit Facility. We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a broad portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term deposits and investments. ~~Given the financial resources available to us, we believe that we have adequate liquidity to continue funding our operations for the foreseeable future.~~

For the next twelve months, we expect our principal demand for funds will be for the acquisition and development of land inventory, construction of house inventory, and operating expenses, including our general and administrative expenses. The elongation of our production cycle has required a greater investment of cash in our homes under production. Additionally, we plan to continue our dividend payments and repurchases of common stock. Within the next twelve months, we need to repay or refinance Pulte Mortgage's master repurchase agreement with third-party lenders (the "Repurchase Agreement"). While we intend to refinance the Repurchase Agreement prior to its maturity, there can be no assurances that the Repurchase Agreement can be renewed or replaced on commercially reasonable terms upon its expiration. However, we believe we have adequate liquidity to meet Pulte Mortgage's anticipated financing needs. Beyond the next twelve months, we will need to repay or refinance our Revolving Credit Facility, which matures in June 2027, and our unsecured senior notes, the next tranche of which becomes due in 2026.

We believe that our current cash position and other available financing resources, coupled with our ongoing operating activities, will provide sufficient liquidity to fund our business needs over the next twelve months and beyond. To the extent the sources of capital described above are insufficient to meet our needs, we may also conduct additional public offerings of our securities, refinance debt, dispose of certain assets to fund our operating activities, or draw on existing or new debt facilities.

Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled ~~$71.4~~$40.5 million and ~~$40.1~~$40.2 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. These notes have maturities ranging up to ~~four~~three years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 6%.

~~We maintain a revolving credit facility (the "Revolving~~In June 2022, we entered into the Third Amended and Restated Credit Agreement ("Revolving Credit Facility") ~~maturing in~~, which replaced our previous credit agreement. The Revolving Credit Facility contains substantially similar terms to the previous credit agreement, increased our borrowing capacity, and extended the maturity date from June 2023 ~~that~~to June 2027. The Revolving Credit Facility has a maximum borrowing capacity of ~~$1.0~~$1.3 billion and contains an uncommitted accordion feature that could increase the capacity to ~~$1.5~~$1.8 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 September 30, 2021.~~up to the maximum borrowing capacity. The interest rate on borrowings under the Revolving Credit Facility may be based on either the ~~London Interbank Offered~~Secured Overnight Financing Rate ("~~LIBOR"~~SOFR") or a base rate plus an applicable margin, as defined therein. As a precautionary measure during the initial phase of the COVID-19 pandemic, we made the decision in March 2020 to draw $700.0 million under the Revolving Credit Facility. In June 2020, we repaid the full outstanding balance of $700.0 million. We had no borrowings outstanding at either ~~September~~June 30, ~~2021~~2022 or December 31, ~~2020,~~2021, and ~~$282.3~~$347.0 million and ~~$249.7~~$298.8 million of letters of credit issued under the Revolving Credit Facility at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

~~Pulte Mortgage maintains a master repurchase agreement with third party lenders (as amended, the "Repurchase Agreement") that~~The Repurchase Agreement matures on July 28, 2022. The maximum aggregate commitment was ~~$580.0~~$550.0 million at ~~September~~June 30, ~~2021,~~2022, which ~~will increase to $650.0 million during the seasonally high borrowing period from December 27, 2021~~continues through ~~January 13, 2022. At all other times, the maximum aggregate commitment ranges from $460.0 million to $550.0 million.~~maturity. 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 ~~$476.5~~$442.8 million and ~~$411.8~~$626.1 million outstanding under the Repurchase Agreement at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, and was in compliance with all of its covenants and requirements as of such dates.

In the ~~nine~~six months ended ~~September~~June 30, 2022, we declared cash dividends totaling $72.0 million and repurchased 17.4 million shares under our repurchase authorization for $794.2 million. In the six months ended June 30, 2021, we declared cash dividends totaling ~~$110.3~~$74.1 million and repurchased ~~12.0~~6.9 million shares under our repurchase authorization for ~~$614.3~~$353.7 million. On ~~April 26, 2021,~~January 31, 2022, the Board of Directors approved an additional share repurchase authorization of $1.0 billion. At ~~September~~June 30, ~~2021,~~2022, we had remaining authorization to repurchase ~~$740.6~~$663.3 million of common shares.

We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of June 30, 2022, while others are considered future commitments. Our contractual obligations primarily consist of long-term debt and related interest payments, purchase obligations related to expected acquisitions and development of land, operating leases, and obligations under our various compensation and benefit plans.

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects. If the obligations related to a project are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At June 30, 2022, we had outstanding letters of credit totaling $347.0 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $2.1 billion at June 30, 2022, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At June 30, 2022, these agreements had an aggregate remaining purchase price of $6.5 billion. 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. At June 30, 2022, outstanding deposits totaled $291.9 million, of which $22.7 million is refundable.

Net cash provided by operating activities ~~for~~in the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$548.2~~$102.3 million. Generally, the primary drivers of our cash flow from operations are profitability and changes in the levels of inventory and residential mortgage loans available-for-sale, each of which experiences seasonal fluctuations. The positive cash flow from operations for the ~~nine~~six months ended ~~September~~June 30, 2022 was primarily due to net income of $1.1 billion along with a seasonal $393.4 million decrease in residential mortgage loans available for sale, offset by a net increase in inventories of $1.7 billion, which was primarily attributable to higher house inventory in production combined with investment in land inventory to support future growth. Reflecting the higher house inventory levels, we also experienced an increase in accounts payable.

Net cash provided by operating activities in the six months ended June 30, 2021 was $432.1 million. The positive cash flow from operations in six months ended June 30, 2021 was primarily due to our net income of ~~$1.3 billion,~~$807.5 million, which included various non-cash items including a loss on debt retirement of $61.5 million, partially offset by a net increase in inventories of ~~$1.1 billion,~~$632.6 million, which was primarily attributable to higher house inventory in ~~production resulting from~~production. Reflecting the higher ~~sales activity and extended production cycle times combined with higher investment in land~~house inventory ~~to support future growth.~~

Net cash provided by operating activities for the nine months ended September 30, 2020 was $1.3 billion. The positive cash flow from operations for the nine months ended September 30, 2020 was primarily due to our net income of $968.7 million, which included various non-cash items, a seasonal $108.2 million decrease in residential mortgage loans available-for-sale, and a net decrease in inventories of $84.3 million. The decrease in inventories resulted from our deliberate efforts to reduce inventory spend, especially land acquisition and development spend, during the second quarter of 2020 in response to the COVID-19 pandemic. While a seasonallevels, we also experienced an increase in ~~house inventory partially offset the reduced land expenditures, the size of the seasonal increase was lower as we tightly managed production levels during the second quarter of 2020.~~

Net cash used in investing activities ~~for~~in the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$86.5~~$123.1 million. These cash outflows primarily reflected a $10.4 million deferred payment related to the 2020 acquisition of Innovative Construction Group ("ICG"), ~~$35.8~~$50.5 million of investments in unconsolidated entities as well as capital expenditures of ~~$52.1~~$62.6 million related to our ongoing investments in new communities, facilities, and certain information technology applications.

Net cash used in investing activities in the six months ended June 30, 2021 was $47.4 million. These cash outflows in 2021 primarily reflected a $10.4 million deferred payment related to the 2020 acquisition of ICG, as well as capital expenditures of $31.5 million related to our ongoing investments in new communities and ~~certain~~ information technology applications. ~~These outflows were partially offset by distributions from unconsolidated entities of $11.5 million.~~

Net cash used in investing activities for the nine months ended September 30, 2020 was $107.2 million. These cash outflows primarily reflected our acquisition of ICG in January 2020 for $83.3 million, as well as capital expenditures of $46.9 million related to our ongoing investments in new communities and certain information technology applications. These outflows were partially offset by distributions from unconsolidated entities of $19.9 million.

Net cash used in financing activities ~~for~~in the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 totaled ~~$1.5~~$1.1 billion. These cash outflows resulted primarily from the repurchase of ~~12.0~~17.4 million common shares for ~~$614.3~~$794.2 million under our share repurchase authorization, payments of $74.2 million in cash dividends, and net repayments of $183.3 million under the Repurchase Agreement related to a seasonal reduction in residential mortgage loans available-for-sale.

Net cash used in financing activities in the six months ended June 30, 2021 totaled $1.3 billion. These cash outflows in 2021 resulted primarily from the repurchase of 6.9 million common shares for $353.7 million under our share repurchase authorization, repayments of debt totaling $797.4 million, ~~and~~ payments of $111.7 million in cash dividends. These outflows were partially offset by net borrowings of $64.7 million under the Repurchase Agreement to support higher loan originations resulting from growth in home closing volume.

We, and the homebuilding industry in general, may be adversely affected during periods of inflation because of higher land and construction costs. Inflation may also increase our financing costs. In addition, higher mortgage interest rates affect the affordability of our products to prospective homebuyers. While we attempt to pass on increases in our costs through increased sales prices, market forces may limit our ability to do so. If we are unable to raise sales prices enough to compensate for higher costs, or if mortgage interest rates increase significantly, our revenues, gross margins, and net income could be adversely affected.

Although significant changes in market conditions have impacted our seasonal patterns in the past and could do so again, we historically experience variability in our quarterly results from operations due to the seasonal nature of the homebuilding industry. We generally experience increases in revenues and cash flow from operations in the fourth quarter based on the timing of home closings. This seasonal activity increases our working capital requirements in our third and fourth quarters to support our home production and loan origination volumes. As a result of the seasonality of our operations, our quarterly results of operations are not necessarily indicative of the results that may be expected for the full year. Additionally, given the disruption in economic activity caused by the COVID-19 pandemic, supply chain challenges, increase in mortgage interest rates, and other macroeconomic factors, our quarterly results for ~~2021~~2022 and ~~2020~~2021 are not necessarily indicative of results that may be achieved in the future.

~~There have been no material changes to our contractual obligations from those disclosed in our "Contractual Obligations and Commercial Commitments" contained in Item 7,~~ ~~Management's Discussion and Analysis of Financial Condition and Results of Operation~~s, included in our Annual Report on Form 10-K for the year ended December 31, 2020, with the exception of the retirement of $426 million, $200 million, and $100 million of unsecured senior notes previously scheduled to mature in March 2021, March 2026, and January 2027, respectively.

All of our unsecured senior notes and the Revolving Credit Facility are fully and unconditionally guaranteed, on a joint and several basis, by certain subsidiaries of PulteGroup, Inc. ("Guarantors" or "Guarantor Subsidiaries"). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by PulteGroup, Inc. Our subsidiaries associated with our financial services operations and certain other subsidiaries do not guarantee the unsecured senior notes or the Revolving Credit Facility (collectively, "Non-Guarantor Subsidiaries"). The guarantees are senior unsecured obligations of each Guarantor and rank equal with all existing and future senior debt of such Guarantor and senior to all subordinated debt of such Guarantor. The guarantees are effectively subordinated to any secured debt of such Guarantor to the extent of the value of the assets securing such debt.

The guarantees of the senior notes contain a provision to limit each Guarantor’s liability to the maximum amount that it could incur without causing the incurrence of obligations under its guarantee to be a fraudulent transfer. However, under recent case law, this provision may not be effective to protect such guarantee from being voided under fraudulent transfer law or otherwise determined to be unenforceable. If a court were to find that the incurrence of a guarantee was a fraudulent transfer or conveyance, the court could void the payment obligations under that guarantee, could subordinate that guarantee to presently

Finally, as a court of equity, a bankruptcy court may subordinate the claims in respect of the guarantees to other claims against us under the principle of equitable subordination if the court determines that (1) the holder of senior notes engaged in some type of inequitable conduct, (2) the inequitable conduct resulted in injury to our other creditors or conferred an unfair advantage upon the holders of senior notes, and (3) equitable subordination is not inconsistent with the provisions of the bankruptcy code.

On the basis of historical financial information, operating history and other factors, we believe that each of the Guarantors, after giving effect to the issuance of the guarantees when such guarantees were issued, was not insolvent, did not have unreasonably small capital for the business in which it engaged and did not and has not incurred debts beyond its ability to pay such debts as they mature. There can be no assurance, however, as to what standard a court would apply in making these determinations or that a court would agree with our conclusions in this regard.


PulteGroup, Inc. and Guarantor Subsidiaries	PulteGroup, Inc. and Guarantor Subsidiaries			PulteGroup, Inc. and Guarantor Subsidiaries
Summarized Balance Sheet Data	Summarized Balance Sheet Data			Summarized Balance Sheet Data
ASSETS	ASSETS	September 30, 2021	December 31, 2020	ASSETS	June 30, 2022	December 31, 2021
Cash, cash equivalents, and restricted cash	Cash, cash equivalents, and restricted cash	$1,539,275	$2,429,639	Cash, cash equivalents, and restricted cash	$608,113	$1,598,328
House and land inventory	House and land inventory	8,748,663	7,600,542	House and land inventory	10,518,299	8,859,163
Amount due from Non-Guarantor Subsidiaries				Amount due from Non-Guarantor Subsidiaries	—	278,531
Total assets	Total assets	11,369,170	11,028,911	Total assets	12,431,145	11,658,352

LIABILITIES	LIABILITIES			LIABILITIES
Accounts payable, customer deposits, accrued and other liabilities	Accounts payable, customer deposits, accrued and other liabilities	$2,528,501	$2,101,427	Accounts payable, customer deposits, accrued and other liabilities	$3,050,111	$2,788,465
Notes payable	Notes payable	2,059,923	2,752,302	Notes payable	2,030,112	2,029,044
Amount due to Non-Guarantor Subsidiaries	Amount due to Non-Guarantor Subsidiaries	55,142	12,208	Amount due to Non-Guarantor Subsidiaries	50,055	—
Total liabilities	Total liabilities	4,713,444	4,948,275	Total liabilities	5,251,531	4,986,491

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects. If the obligations related to a project are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At September 30, 2021, we had outstanding letters of credit totaling $282.3 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $1.8 billion at September 30, 2021, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At September 30, 2021, these agreements had an aggregate remaining purchase price of $5.3 billion. 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.


	Six Months Ended
	June 30,
Summarized Statement of Operations Data	2022	2021
Revenues	$6,778,198	$5,726,823
Cost of revenues	4,747,604	4,231,460
Selling, general, and administrative expenses	641,500	539,275
Income before income taxes	1,356,409	875,942

We are subject to market risk on our debt instruments primarily due to fluctuations in interest rates. We utilize both fixed-rate and variable-rate debt. For fixed-rate debt, changes in interest rates generally affect the fair value of the debt instrument but not our earnings or cash flows. Conversely, for variable-rate debt, changes in interest rates generally do not affect the fair value of the debt instrument but could affect our earnings and cash flows. Except in very limited circumstances, we do not have an obligation to prepay fixed-rate debt prior to maturity. As a result, interest rate risk and changes in fair value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance or repurchase such debt.

The following table sets forth the principal cash flows by scheduled maturity, weighted-average interest rates, and estimated fair value of our debt obligations as of ~~September~~June 30, ~~2021~~2022 ($000’s omitted):
As of September 30, 2021 for the
Years ending December 31,
2021 2022 2023 2024 2025 Thereafter Total Fair
Value
Rate-sensitive liabilities:
Fixed rate debt $ 26,194 $ 20,156 $ 10,639 $ 14,436 $ — $ 2,000,000 $ 2,071,425 $ 2,582,625
Average interest rate 0.62 % 0.50 % 4.18 % 6.00 % — % 5.98 % 5.85 %
Variable rate debt (a) $ 476,504 $ — $ — $ — $ — $ — $ 476,504 $ 476,504
Average interest rate 2.29 % — % — % — % — % — % 2.29 %

As a cautionary note, except for the historical information contained herein, certain matters discussed in Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Item 3, Quantitative and Qualitative Disclosures About Market Risk, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “project,” “may,” “can,” “could,” “might,” ~~“should,” “will,” “seek,”~~"should", “will” and similar expressions identify forward-looking statements, including statements related to any potential impairment charges and the impacts or effects thereof, expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; competition within the industries in which we operate; including as it relates to our ability to take pricing actions to offset rising expenses; the availability and cost of land and other raw materials used by us in our ~~Homebuilding~~homebuilding operations; the impact of any changes to our strategy in responding to the cyclical nature of the industry, including any changes regarding our land positions and the levels of our land spend; the availability and cost of insurance covering risks associated with our businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws which could have a greater impact on our effective tax rate or the value of our deferred tax assets than we anticipate; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or

order to successfully implement our capital allocation priorities; required accounting changes; terrorist acts and other acts of war; the negative impact of the COVID-19 pandemic on our financial position and ability to continue our Homebuilding or Financial Services activities at normal levels or at all in impacted areas; the duration, effect and severity of the COVID-19 pandemic; the measures that governmental authorities take to address the COVID-19 pandemic which may precipitate or exacerbate one or more of the above-mentioned and/or other risks and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period of time; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See PulteGroup's Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020,~~2021, and other public filings with the Securities and Exchange Commission (the "SEC") for a further discussion of these and other risks and uncertainties applicable to our businesses. PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.

Management, including our President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of ~~September~~June 30, ~~2021.~~2022. Based upon, and as of the date of that evaluation, our President and Chief Executive Officer and Executive Vice President and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of ~~September~~June 30, ~~2021.~~2022.

Total number
of shares
purchased (1)
Average
price paid
per share
Total number of
shares purchased
as part of publicly
announced plans
or programs
Approximate dollar
value of shares
that may yet be
purchased under
the plans or
programs
($000’s omitted) (2)
July 1, 2021 to July 31, 2021 1,274,926 $ 53.23 1,274,926 $ 933,308.45
August 1, 2021 to August 31, 2021 1,371,830 $ 53.68 1,371,830 $ 859,627.47
September 1, 2021 to September 30, 2021 2,455,590 $ 48.50 2,455,590 $ 740,569.08
Total 5,102,346 $ 51.07 5,102,346


	Total number of shares purchased (1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs ($000’s omitted) (2)
April 1, 2022 to April 30, 2022	2,616,453	$	42.04	2,616,453	$	847,573
May 1, 2022 to May 31, 2022	1,645,373	$	42.55	1,645,373	$	777,567
June 1, 2022 to June 30, 2022	2,838,253	$	40.24	2,838,253	$	663,343
Total	7,100,079	$	41.44	7,100,079

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

The cover page from this Quarterly Report on Form 10-Q for the quarter ended ~~September~~June 30, ~~2021,~~2022, formatted in Inline XBRL


Michigan			38-2766606
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


3350 Peachtree Road NE, Suite 1500
Atlanta,	Georgia	30326
(Address of principal executive offices) (Zip Code)


		Page No.
PART I	FINANCIAL INFORMATION

Item 1	Financial Statements

	Condensed Consolidated Balance Sheets at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021	3

	Consolidated Statements of Operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	4

	Consolidated Statements of Comprehensive Income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	5

	Consolidated Statements of Shareholders' Equity for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	6

	Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	8

	Notes to Condensed Consolidated Financial Statements	9

Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	2523

Item 3	Quantitative and Qualitative Disclosures About Market Risk	4138

Item 4	Controls and Procedures	4340

PART II	OTHER INFORMATION	4341

Item 1	Legal Proceedings	4341

Item 1A	Risk Factors	4341

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	4341

Item 6	Exhibits	4542

	Signatures	4744


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Interest in inventory, beginning of period	$	185,433	$	207,942	$	193,409	$	210,383
Interest capitalized	31,707		40,044		97,809		119,643
Interest expensed	(41,897)		(46,841)		(115,975)		(128,881)
Interest in inventory, end of period	$	175,243	$	201,145	$	175,243	$	201,145


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Interest in inventory, beginning of period	$	158,670	$	193,352	$	160,756	$	193,409
Interest capitalized	31,338		31,476		62,921		66,103
Interest expensed	(38,454)		(39,395)		(72,123)		(74,079)
Interest in inventory, end of period	$	151,554	$	185,433	$	151,554	$	185,433


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
			OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
			OF THE SECURITIES EXCHANGE ACT OF 1934


Registrant’s telephone number, including area code:			404			978-6400


Northeast:						Connecticut, Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia
Southeast:						Georgia, North Carolina, South Carolina, Tennessee
Florida:						Florida
Midwest:						Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio
Texas:						Texas
West:						Arizona, California, Colorado, Nevada, New Mexico, Washington


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.


	As of September 30, 2021 for the Years ending December 31,
	2021			2022			2023			2024			2025			Thereafter			Total			Fair Value
Rate-sensitive liabilities:
Fixed rate debt	$	26,194		$	20,156		$	10,639		$	14,436		$	—		$	2,000,000		$	2,071,425		$	2,582,625
Average interest rate	0.62		%	0.50		%	4.18		%	6.00		%	—		%	5.98		%	5.85		%

Variable rate debt (a)	$	476,504		$	—		$	—		$	—		$	—		$	—		$	476,504		$	476,504
Average interest rate	2.29		%	—		%	—		%	—		%	—		%	—		%	2.29		%


	As of June 30, 2022 for the Years ending December 31,
	2022			2023			2024			2025			2026			Thereafter			Total			Fair Value
Rate-sensitive liabilities:
Fixed rate debt	$	5,204		$	13,055		$	22,274		$	—		$	500,000		$	1,500,000		$	2,040,533		$	2,101,783
Average interest rate	—		%	3.41		%	5.09		%	—		%	5.50		%	6.14		%	5.94		%

Variable rate debt (a)	$	442,816		$	—		$	—		$	—		$	—		$	—		$	442,816		$	442,816
Average interest rate	2.69		%	—		%	—		%	—		%	—		%	—		%	2.69		%


PULTEGROUP, INC.



/s/ Robert T. O'Shaughnessy
Robert T. O'Shaughnessy
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and duly authorized officer)
Date:			~~October~~July 26, ~~2021~~2022