Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-35873 | ||
Entity Registrant Name | TAYLOR MORRISON HOME CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2026677 | ||
Entity Address, Address Line One | 4900 N. Scottsdale Road | ||
Entity Address, Address Line Two | Suite 2000 | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85251 | ||
City Area Code | 480 | ||
Local Phone Number | 840-8100 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value | ||
Trading Symbol | TMHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,260,181,647 | ||
Entity Common Stock, Shares Outstanding | 106,428,964 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001562476 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Portions of Part III of this Form 10-K are incorporated by reference from the registrant’s definitive proxy statement for its 2024 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Tempe, Arizona |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 798,568 | $ 724,488 |
Restricted cash | 8,531 | 2,147 |
Total cash | 807,099 | 726,635 |
Real estate inventory: | ||
Owned inventory | 5,473,828 | 5,346,905 |
Consolidated real estate not owned | 71,618 | 23,971 |
Total real estate inventory | 5,545,446 | 5,370,876 |
Land deposits | 203,217 | 263,356 |
Mortgage loans held for sale | 193,344 | 346,364 |
Lease right of use assets | 75,203 | 90,446 |
Prepaid expenses and other assets, net | 290,925 | 265,392 |
Other receivables, net | 184,518 | 191,504 |
Investments in unconsolidated entities | 346,192 | 282,900 |
Deferred tax assets, net | 67,825 | 67,656 |
Property and equipment, net | 295,121 | 202,398 |
Goodwill | 663,197 | 663,197 |
Total assets | 8,672,087 | 8,470,724 |
Liabilities | ||
Accounts payable | 263,481 | 269,761 |
Accrued expenses and other liabilities | 549,074 | 490,253 |
Lease liabilities | 84,999 | 100,174 |
Customer deposits | 326,087 | 412,092 |
Estimated development liabilities | 27,440 | 43,753 |
Senior notes, net | 1,468,695 | 1,816,303 |
Loans payable and other borrowings | 394,943 | 361,486 |
Revolving credit facility borrowings | 0 | 0 |
Mortgage warehouse borrowings | 153,464 | 306,072 |
Liabilities attributable to consolidated real estate not owned | 71,618 | 23,971 |
Total liabilities | 3,339,801 | 3,823,865 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
Stockholders' equity | ||
Common stock, $0.00001 par value, 400,000,000 shares authorized, 161,129,515 and 159,392,185 shares issued, 106,917,636 and 107,995,262 shares outstanding as of December 31, 2023 and December 31, 2022, respectively | 1 | 1 |
Additional paid-in capital | 3,068,597 | 3,025,489 |
Treasury stock at cost, 54,211,879 and 51,396,923 shares as of December 31, 2023 and December 31, 2022, respectively | (1,265,097) | (1,137,138) |
Retained earnings | 3,510,544 | 2,741,615 |
Accumulated other comprehensive income | 896 | 359 |
Total stockholders' equity attributable to TMHC | 5,314,941 | 4,630,326 |
Non-controlling interests | 17,345 | 16,533 |
Total stockholders’ equity | 5,332,286 | 4,646,859 |
Total liabilities and stockholders’ equity | $ 8,672,087 | $ 8,470,724 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares, issued (in shares) | 161,129,515 | 159,392,185 |
Common stock, shares, outstanding (in shares) | 106,917,636 | 107,995,262 |
Treasury stock, shares (in shares) | 54,211,879 | 51,396,923 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total revenue | $ 7,417,831 | $ 8,224,917 | $ 7,501,265 |
Total cost of revenue | 5,634,758 | 6,132,551 | 5,953,384 |
Gross margin | 1,783,073 | 2,092,366 | 1,547,881 |
Sales, commissions and other marketing costs | 418,134 | 398,074 | 400,376 |
General and administrative expenses | 280,573 | 245,138 | 267,966 |
Net (income)/loss from unconsolidated entities | (8,757) | 14,184 | (11,130) |
Interest (income)/expense, net | (12,577) | 17,674 | 3,792 |
Other expense, net | 87,567 | 38,497 | 23,769 |
Loss/(gain) on extinguishment of debt, net | 295 | (13,876) | 0 |
Income before income taxes | 1,017,838 | 1,392,675 | 863,108 |
Income tax provision | 248,097 | 336,428 | 180,741 |
Net income before allocation to non-controlling interests | 769,741 | 1,056,247 | 682,367 |
Net income attributable to non-controlling interests | (812) | (3,447) | (19,341) |
Net income | $ 768,929 | $ 1,052,800 | $ 663,026 |
Earnings per common share | |||
Basic (in dollars per share) | $ 7.09 | $ 9.16 | $ 5.26 |
Diluted (in dollars per share) | $ 6.98 | $ 9.06 | $ 5.18 |
Weighted average number of shares of common stock: | |||
Basic (in shares) | 108,424 | 114,982 | 126,077 |
Diluted (in shares) | 110,145 | 116,221 | 128,019 |
Home closings | |||
Total revenue | $ 7,158,857 | $ 7,889,371 | $ 7,171,433 |
Total cost of revenue | 5,451,401 | 5,904,458 | 5,713,905 |
Land closings | |||
Total revenue | 60,971 | 81,070 | 99,444 |
Total cost of revenue | 55,218 | 63,644 | 83,853 |
Financial services | |||
Total revenue | 160,312 | 135,491 | 164,615 |
Total cost of revenue | 93,990 | 83,960 | 101,848 |
Amenity and other | |||
Total revenue | 37,691 | 118,985 | 65,773 |
Total cost of revenue | $ 34,149 | $ 80,489 | $ 53,778 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Income before non-controlling interests, net of tax | $ 769,741 | $ 1,056,247 | $ 682,367 |
Post-retirement benefits adjustments, net of tax | 537 | (330) | 1,855 |
Comprehensive income | 770,278 | 1,055,917 | 684,222 |
Comprehensive income attributable to non-controlling interests | (812) | (3,447) | (19,341) |
Comprehensive income available to Taylor Morrison Home Corporation | $ 769,466 | $ 1,052,470 | $ 664,881 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest | |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 129,476,914 | 25,884,756 | ||||||
Balance, beginning of period at Dec. 31, 2020 | $ 3,593,750 | $ 1 | $ 2,926,773 | $ (446,856) | $ 1,025,789 | $ (1,166) | $ 89,209 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 682,367 | 663,026 | 19,341 | |||||
Other comprehensive income (loss) | 1,855 | 1,855 | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax (shares) | [1] | 1,596,333 | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax | [1] | 17,911 | 17,911 | |||||
Warrant exercises (in shares) | 1,704,205 | |||||||
Warrant exercises | 32,584 | 32,584 | ||||||
Repurchase of common stock (shares) | (9,918,104) | 9,918,104 | ||||||
Repurchase of common stock | (281,420) | $ (281,420) | ||||||
Common stock surrendered in connection with warrant exercise (in shares) | (1,025,699) | 1,025,699 | ||||||
Common stock surrendered in connection with warrant exercise | (32,587) | $ (32,587) | ||||||
Stock compensation expense | 19,943 | 19,943 | ||||||
Distributions to non-controlling interests of consolidated joint ventures | (62,734) | (62,734) | ||||||
Changes in non-controlling interests of consolidated joint ventures | (687) | (687) | ||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 121,833,649 | 36,828,559 | ||||||
Balance, end of period at Dec. 31, 2021 | 3,970,982 | $ 1 | 2,997,211 | $ (760,863) | 1,688,815 | 689 | 45,129 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,056,247 | 1,052,800 | 3,447 | |||||
Other comprehensive income (loss) | (330) | (330) | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax (shares) | [1] | 729,977 | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax | [1] | $ 1,377 | 1,377 | |||||
Repurchase of common stock (shares) | (14,568,364) | (14,568,364) | 14,568,364 | |||||
Repurchase of common stock | $ (376,275) | $ (376,275) | ||||||
Common stock surrendered in connection with warrant exercise | 0 | |||||||
Stock compensation expense | 26,901 | 26,901 | ||||||
Distributions to non-controlling interests of consolidated joint ventures | (31,261) | (31,261) | ||||||
Changes in non-controlling interests of consolidated joint ventures | (782) | (782) | ||||||
Balance, end of period (in shares) at Dec. 31, 2022 | 107,995,262 | 51,396,923 | ||||||
Balance, end of period at Dec. 31, 2022 | 4,646,859 | $ 1 | 3,025,489 | $ (1,137,138) | 2,741,615 | 359 | 16,533 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 769,741 | 768,929 | 812 | |||||
Other comprehensive income (loss) | 537 | 537 | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax (shares) | [1] | 1,737,330 | ||||||
Exercise of stock options and issuance of restricted stock, net of shares withheld for tax | [1] | $ 17,013 | 17,013 | |||||
Repurchase of common stock (shares) | (2,814,956) | (2,814,956) | 2,814,956 | |||||
Repurchase of common stock | $ (127,959) | $ (127,959) | ||||||
Common stock surrendered in connection with warrant exercise | 0 | |||||||
Stock compensation expense | 26,095 | 26,095 | ||||||
Balance, end of period (in shares) at Dec. 31, 2023 | 106,917,636 | 54,211,879 | ||||||
Balance, end of period at Dec. 31, 2023 | $ 5,332,286 | $ 1 | $ 3,068,597 | $ (1,265,097) | $ 3,510,544 | $ 896 | $ 17,345 | |
[1] Dollar amount represents the value of shares withheld for taxes. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net income before allocation to non-controlling interests | $ 769,741,000 | $ 1,056,247,000 | $ 682,367,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net (income)/loss from unconsolidated entities | (8,757,000) | 14,184,000 | (11,130,000) |
Stock compensation expense | 26,095,000 | 26,901,000 | 19,943,000 |
Loss/(gain) on extinguishment of debt, net | 295,000 | (13,876,000) | 0 |
Gain on land transfers | 0 | (14,508,000) | 0 |
Distributions of earnings from unconsolidated entities | 9,230,000 | 5,270,000 | 10,740,000 |
Depreciation and amortization | 33,406,000 | 33,839,000 | 39,980,000 |
Lease expense | 24,808,000 | 27,420,000 | 17,885,000 |
Debt issuance costs amortization | 3,315,000 | 2,260,000 | 539,000 |
Estimated development liability change in estimate | (14,829,000) | 0 | 0 |
Deferred income taxes | (169,000) | 83,584,000 | 86,838,000 |
Inventory impairment charges | 11,791,000 | 24,870,000 | 0 |
Change in Urban Form assets due to sale | 0 | 42,046,000 | 20,440,000 |
Land held for sale impairments | 0 | 0 | 4,663,000 |
Changes in operating assets and liabilities: | |||
Real estate inventory and land deposits | (78,575,000) | (50,792,000) | (343,127,000) |
Mortgage loans held for sale, prepaid expenses and other assets | 31,012,000 | 5,789,000 | (511,220,000) |
Customer deposits | (86,005,000) | (73,613,000) | 174,448,000 |
Accounts payable, accrued expenses and other liabilities | 84,811,000 | (61,849,000) | 197,121,000 |
Income taxes payable | 0 | 0 | (12,841,000) |
Net cash provided by operating activities | 806,169,000 | 1,107,772,000 | 376,646,000 |
Cash Flows from Investing Activities: | |||
Purchase of property and equipment | (33,426,000) | (30,581,000) | (21,199,000) |
Distributions of capital from unconsolidated entities | 824,000 | 125,275,000 | 31,915,000 |
Investments of capital into unconsolidated entities | (64,589,000) | (109,574,000) | (74,976,000) |
Payments to acquire investments and securities | 0 | 0 | (10,000,000) |
Net cash used in investing activities | (97,191,000) | (14,880,000) | (74,260,000) |
Cash Flows from Financing Activities | |||
Increase in loans payable and other borrowings | 7,103,000 | 38,202,000 | 130,493,000 |
Repayments of loans payable and other borrowings | (20,747,000) | (71,172,000) | (124,786,000) |
Borrowings on revolving credit facility | 0 | 381,019,000 | 131,529,000 |
Repayments on revolving credit facilities | 0 | (412,548,000) | (100,000,000) |
Borrowings on mortgage warehouse facilities | 3,007,682,000 | 2,662,241,000 | 3,327,954,000 |
Repayments on mortgage warehouse facilities | (3,160,290,000) | (2,770,056,000) | (3,041,356,000) |
Repayments on senior notes | (350,000,000) | (622,780,000) | 0 |
Proceeds from stock option exercises and issuance of restricted stock, net | 17,013,000 | 1,377,000 | 17,911,000 |
Payment of principle portion of finance lease | (1,316,000) | (1,344,000) | (1,345,000) |
Repurchase of common stock, net | (127,959,000) | (376,275,000) | (281,420,000) |
Cash and distributions to non-controlling interests of consolidated joint ventures, net | 0 | (31,261,000) | (59,135,000) |
Net cash used in financing activities | (628,514,000) | (1,202,597,000) | (155,000) |
Net Increase/Decrease in Cash and Cash Equivalents and Restricted Cash | 80,464,000 | (109,705,000) | 302,231,000 |
Cash, Cash Equivalents, and Restricted Cash - Beginning of period | 726,635,000 | 836,340,000 | 534,109,000 |
Cash, Cash Equivalents, and Restricted Cash - End of period | 807,099,000 | 726,635,000 | 836,340,000 |
Supplemental Cash Flow Information | |||
Income tax payments | (204,274,000) | (270,034,000) | (146,171,000) |
Supplemental Non-Cash Investing and Financing Activities: | |||
Change in loans payable issued to sellers in connection with land purchase contracts | 235,554,000 | 231,027,000 | 279,646,000 |
Change in inventory not owned | 47,647,000 | (31,343,000) | (67,459,000) |
Investments of land in unconsolidated joint ventures, net | 0 | 146,649,000 | 0 |
Impairment in unconsolidated joint ventures | 0 | (14,714,000) | 0 |
Net non-cash (distributions)/contributions (to)/from unconsolidated entities | 0 | 0 | (3,599,000) |
Common stock surrendered in connection with warrant exercise | 0 | 0 | 32,587,000 |
Common stock issued in connection with warrant exercise | $ 0 | $ 0 | $ (32,584,000) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 768,929 | $ 1,052,800 | $ 663,026 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 15, 2023 , Sheryl D. Palmer , our Chairman of the Board of Directors, President and Chief Executive Officer , entered into a Rule 10b5-1 trading agreement intended to satisfy the affirmative defense of Rule 10b5‑1(c) of the Securities Exchange Act of 1934. Such agreement provides for an aggregate sale of up to 200,000 shares of common stock between March 15, 2024 and October 18, 2024 . During the three months ended December 31, 2023, none of the Company’s other directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted , terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K). |
Sheryl D. Palmer | |
Trading Arrangements, by Individual | |
Name | Sheryl D. Palmer |
Title | Chairman of the Board of Directors, President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 15, 2023 |
Arrangement Duration | 218 days |
Aggregate Available | 200,000 |
Trd Arr Expiration Date | October 18, 2024 |
Other Directors or Officers | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b51 Arr Modified Flag | false |
Non Rule 10b51 Arr Modified Flag | false |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | 1. BUSINESS Description of the Business — Taylor Morrison Home Corporation (“TMHC”), through its subsidiaries (together with TMHC referred to herein as “we,” “our,” “the Company” and “us”), owns and operates a residential homebuilding business and is a land developer. We operate in the states of Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. We provide an assortment of homes across a wide range of price points to appeal to an array of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort- lifestyle buyers. We are the general contractors for all real estate projects and engage subcontractors for home construction and land development. Our homebuilding segments operate under various brand names including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. We also have a “Build-to-Rent” homebuilding business which operates under the Yardly brand name. In addition, we develop and construct multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand. We also have operations which provide financial services to customers through our wholly owned mortgage subsidiary, Taylor Morrison Home Funding, INC (“TMHF”), title services through our wholly owned title services subsidiary, Inspired Title Services, LLC (“Inspired Title”), and homeowner’s insurance policies through our insurance agency, Taylor Morrison Insurance Services, LLC (“TMIS”). Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West, and Financial Services. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation — The accompanying Consolidated financial statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries as well as certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the Consolidated statement of operations. The assets, liabilities and equity from the percentage of the joint venture not owned by us is presented as “Non-controlling interests” on the Consolidated balance sheets and Consolidated statement of stockholders’ equity. The balance of Non-controlling interests on the Consolidated balance sheets will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses and distributions or contributions associated with the partners within the joint venture. Investments in Consolidated and Unconsolidated Entities Consolidated Arrangements — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) is created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the Consolidated balance sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net (income)/loss from unconsolidated entities on the Consolidated statement of operations when earned and distributions are credited against our Investment in unconsolidated entities on the Consolidated balance sheets when received. We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment’s carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded $ 14.7 million of impairment charges related to investments in unconsolidated entities for the year ended December 31, 2022. No such charges were recorded for the years ended December 31, 2023 and 2021. Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of goodwill, valuation of estimated development liabilities, valuation of equity awards, valuation allowance on deferred tax assets and reserves for warranty and self-insured risks. Actual results could differ from those estimates. Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage loans held for sale. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage loans held for sale, there was no concentration of mortgage loans with any one borrower for the year ended December 31, 2023. No material losses have been experienced to date. In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the home sold with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination. Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2023 , the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. Restricted Cash — For the years ended December 31, 2023 and 2022 , restricted cash consisted of cash held in escrow deposits. Leases — We recognize leases in accordance with ASC Topic 842, Leases. Our operating leases primarily consist of office space, construction trailers, model home leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. Operating and finance leases are recorded in Lease right of use asset and Lease liabilities on the Consolidated balance sheets. A summary of our leases is shown below: Operating Leases Finance Leases (Dollars in millions) 2023 2022 2021 2023 2022 2021 Weighted average discount rate 5.9 % 5.9 % 5.9 % 7.3 % 7.3 % 7.3 % Weighted average remaining lease 3.8 4.1 4.1 85.1 86.0 86.9 Payments on lease liabilities $ 28.1 $ 29.2 $ 20.7 $ 1.3 $ 1.3 $ 1.3 Recorded lease expense $ 22.8 $ 25.4 $ 15.9 $ 2.0 $ 2.0 $ 2.0 The future minimum lease payments required under our leases as of December 31, 2023 are as follows (dollars in thousands): Years Ending December 31, Operating Finance Total 2024 $ 22,674 $ 1,309 $ 23,983 2025 16,741 1,300 18,041 2026 11,548 1,300 12,848 2027 8,285 1,300 9,585 2028 4,275 1,300 5,575 Thereafter 4,309 257,386 (1) 261,695 Total lease payments $ 67,832 $ 263,895 $ 331,727 Less: Interest $ 7,096 $ 239,632 $ 246,728 Present value of future lease payments $ 60,737 $ 24,262 $ 84,999 (1) Includes a 90-year land lease. Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. The life cycle of a typical community generally ranges from two to five years , commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the years ended December 31, 2023 and 2022, we recorded $ 11.8 million and $ 24.9 million of impairment charges, all of which related to our West reporting segment. For the year ended December 31, 2021, we recorded no impairment charges. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated statement of operations. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes and such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of December 31, 2023 and 2022, we had no long-term strategic assets. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once it meets all criteria in accordance with ASC 360 Property, Plant and Equipment. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the years ended December 31, 2023 and 2022 we had no material fair value adjustments for land held for sale. For the year ended December 31, 2021, we had $ 4.7 million of fair value adjustments for land held for sale which was recorded within Cost of land closings on the Consolidated statement of operations. Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. We incur interest expense on these arrangements. Interest is based on remaining lots to be purchased and is capitalized for the percentage of lots in each project actively under development, with the remainder expensed and included in Interest (income)/expense, net on the Consolidated statement of operations.The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-significant and non-refundable cash deposit. We are not legally obligated to purchase the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. As such, these entities are not consolidated. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the Consolidated balance sheets. Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated balance sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to Other expense, net if the land acquisition process is terminated or no longer determined probable. Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our wholly-owned mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for Mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for Mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing. Derivative Assets — We enter into interest rate lock commitments (“IRLCs”) when originating residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. We are exposed to interest rate risk as a result of these IRLCs and originated Mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and Mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and Mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and Mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and Mortgage loans held for sale are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and Mortgage loans held for sale to economically hedge. The IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value in Prepaid expenses and other assets, net or Accrued expenses and other liabilities, with changes in fair value recognized in Financial Services revenue on the Consolidated statements of operations. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and Mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. Refer to Note 15—Mortgage Hedging Activities for additional information. Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2023 2022 Prepaid expenses $ 41,311 $ 45,872 Other assets 104,210 154,279 Build-to-Rent assets 145,405 65,241 Total prepaid expenses and other assets, net $ 290,925 $ 265,392 Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the revolving credit facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the homes to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivables, Urban Form assets, and other deferred costs. Build-to-Rent assets consist primarily of land and development costs relating to projects under construction. Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in Other expense, net, when it becomes likely uncollectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. Allowances at December 31, 2023 and 2022 were immaterial. Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $ 9.0 million, $ 7.6 million, and $ 7.5 million, respectively, for the years ended December 31, 2023, 2022, and 2021. Depreciation expense is recorded in General and administrative expenses in the Consolidated statement of operations. Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth fiscal quarter or whenever impairment indicators are present. For the years ended December 31, 2023, 2022 and 2021, goodwill was no t impaired. Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), a wholly-owned captive insurance company, which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. Our loss reserves for structural defects are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated balance sheets. We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced separately from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated statements of operations. Stock Based Compensation — We have stock options, performance-based restricted stock units ("PRSUs") and non-performance-based restricted stock units ("RSUs" or "Restricted stock"), which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. PRSUs are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. RSUs are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period. Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code ("IRC") (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. At December 31, 2023, we match 100 % of employees’ voluntary contributions up to 4 % of eligible compensation, and 50 % for each dollar contributed between 4 % and 5 % of eligible compensation. We contributed $ 13.2 million, $ 13.6 million, and $ 11.3 million to the 401(k) Plan for the years ended December 31, 2023, 2022, and 2021, respectively. Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity—Treasury Stock. Repurchased shares are reflected as a reduction in stockholders’ equity and subsequent sale of repurchased shares are recognized as a change in equity. To date, we have not sold any treasury stock. Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard’s core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue: Revenue from closings of residential real estate is recognized when the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, club houses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. Generally, loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the statement of operations in the period in which they occur. See "Derivative Assets" above in this Note 2. Advertising Costs — We expense advertising costs as incurred. For the years ended December 31, 2023, 2022, and 2021, advertising costs were $ 28.7 million, $ 33.9 million, and $ 30.4 million, respectively. Such costs are included in General and administrative expenses on the Consolidated statement of operations. Recently Issued Accounting Pronouncements — In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures , which establishes new income tax disclosure requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation as well as further disaggregate income taxes paid. This ASU can be applied prospectively or retrospectively and is effective for the annual reporting period ending December 31, 2025. The adoption of ASU 2023-09 will not impact our Consolidated financial statements but |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 3. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of common stock were exercised or settled. The following is a summary of the components of basic and diluted earnings per share: Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 768,929 $ 1,052,800 $ 663,026 Denominator: Weighted average shares – basic 108,424 114,982 126,077 Restricted stock 925 707 920 Stock options 796 532 771 Warrants — — 251 Weighted average shares – diluted 110,145 116,221 128,019 Earnings per common share – basic $ 7.09 $ 9.16 $ 5.26 Earnings per common share – diluted $ 6.98 $ 9.06 $ 5.18 The above calculations of weighted average shares exclude 303,033 , 1,485,064 , and 1,030,282 outstanding anti-dilutive stock options and unvested performance and non-performance restricted stock for the years ended December 31, 2023, 2022, and 2021, respectively. |
REAL ESTATE INVENTORY
REAL ESTATE INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
REAL ESTATE INVENTORY | 4. REAL ESTATE INVENTORY Inventory consists of the following: As of December 31, (Dollars in thousands) 2023 2022 Real estate developed and under development $ 3,855,534 $ 3,607,227 Real estate held for development or held for sale (1) 29,317 43,314 Total land inventory 3,884,851 3,650,541 Operating communities (2) 1,414,528 1,506,241 Capitalized interest 174,449 190,123 Total owned inventory 5,473,828 5,346,905 Consolidated real estate not owned 71,618 23,971 Total real estate inventory $ 5,545,446 $ 5,370,876 (1) Real estate held for development or held for sale includes properties which are not in active production. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes. We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the property owner and its creditors generally only have recourse against us in the form of retaining non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased. A summary of owned and controlled lots is as follows: As of December 31, (Dollars in thousands) 2023 2022 Owned lots: Undeveloped 13,418 14,985 Under development 8,848 10,716 Finished 11,811 10,713 Total owned lots 34,077 36,414 Controlled lots: Land option purchase contracts 8,621 6,582 Land banking arrangements 5,818 7,369 Other controlled lots (1) 23,846 24,422 Total controlled lots 38,285 38,373 Total owned and controlled lots 72,362 74,787 Homes in inventory 7,867 7,653 (1) Other controlled lots include agreements whereby the purchase of the lots must occur as a single transaction, as opposed to multiple take-downs. In addition, controlled lots from our unconsolidated JVs are also included. As of December 31, 2022, the owned lots and controlled lots presented above have been recast as a result of an operational change in classification in the current period. Lots which have started vertical construction have been excluded from total owned lots and controlled lots represent lots in which we have a contractual right, generally through an option contract or land banking arrangement as well as paid a land deposit to a seller for an underlying real estate asset. Homes in inventory include any lots with vertical construction. We believe these operational changes provide better transparency into the status of our lots. Capitalized Interest — Interest capitalized, incurred and amortized is as follows: Year ended December 31, (Dollars in thousands) 2023 2022 2021 Interest capitalized - beginning of period $ 190,123 $ 168,670 $ 163,780 Interest capitalized 119,196 159,913 154,623 Interest amortized to cost of home closings ( 134,870 ) ( 138,460 ) ( 149,733 ) Interest capitalized - end of period $ 174,449 $ 190,123 $ 168,670 |
INVESTMENTS IN CONSOLIDATED AND
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 5. INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES Unconsolidated Entities — We have investments in a number of joint ventures with third parties. These entities are generally involved in real estate development, homebuilding, Build-to-Rent, and/or mortgage lending activities. The primary activity of our real estate development joint ventures is the development and sale of lots to joint venture partners and/or unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer. During the year ended December 31, 2022, we contributed land as part of two initial investments in existing unconsolidated joint ventures. In accordance with ASC 606, when the transferee obtains title, physical possession and maintains the risks and rewards of ownership of the property and the transferor has no continuing involvement, the contribution is considered a transfer. To recognize the transfer, the difference between the fair value of the land and carrying value at the time of the contribution is recorded as a gain/loss on transfer. For the year ended December 31, 2022, we recognized gains of $ 14.5 million in Other expense, net on the Consolidated statement of operations, related to land transferred to unconsolidated joint ventures. Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands): As of December 31, 2023 2022 Assets: Real estate inventory 952,223 $ 749,942 Other assets 182,517 146,770 Total assets $ 1,134,740 $ 896,712 Liabilities: Debt $ 317,224 $ 238,263 Other liabilities 50,739 31,824 Total liabilities $ 367,963 $ 270,087 Owners’ equity: TMHC $ 346,192 $ 282,900 Others 420,585 343,725 Total owners’ equity $ 766,777 $ 626,625 Total liabilities and owners’ equity $ 1,134,740 $ 896,712 Year ended December 31, 2023 2022 2021 Revenues $ 158,174 $ 168,695 $ 130,640 Costs and expenses ( 135,007 ) ( 163,488 ) ( 97,596 ) Net income from unconsolidated entities $ 23,166 $ 5,207 $ 33,044 TMHC’s share in net income/(loss) of unconsolidated entities $ 8,757 $( 14,184 ) (1) $ 11,130 Distributions to TMHC from unconsolidated entities $ 10,054 $ 130,545 $ 42,655 (1) TMHC’s share in net loss from unconsolidated entities relates to a $ 14.7 million impairment charge to our investment in one of our unconsolidated joint ventures. Consolidated Entities — We have several joint ventures for the purpose of real estate development and homebuilding activities, which we have determined to be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities of the joint ventures. For this specific subset of joint ventures, based upon the allocation of income and loss per the applicable joint venture agreements and certain performance guarantees, we have potentially significant exposure to the risks and rewards of the joint ventures. Therefore, we are the primary beneficiary of these joint venture VIEs, and the entities are consolidated. As of December 31, 2023, the assets of the consolidated joint ventures totaled $ 265.2 million, of which $ 29.8 million was cash and cash equivalents, $ 70.2 million was owned real estate inventory, and $ 121.3 million was property and equipment, net (primarily related to Urban Form). The majority of the property and equipment, net balance which was classified as held for sale as of December 31, 2022, was reclassified as held for investment during the second quarter of 2023 and remained held for investment at December 31, 2023. As of December 31, 2022, the assets of the consolidated joint ventures totaled $ 277.6 million, of which $ 38.9 million was cash and cash equivalents, $ 72.0 million was owned real estate inventory, and $ 123.2 million was property and equipment, net. The liabilities of the consolidated joint ventures totaled $ 133.8 million and $ 155.5 million as of December 31, 2023 and December 31, 2022, respectively, and were primarily comprised of loans payable and other borrowings, accounts payable and accrued expenses and other liabilities. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 6. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): As of December 31, 2023 2022 Real estate development costs to complete $ 46,114 $ 53,155 Compensation and employee benefits 149,095 112,294 Self-insurance and warranty reserves 184,448 161,675 Interest payable 31,042 37,434 Property and sales taxes payable (1) 30,887 30,046 Other accruals 107,488 95,649 Total accrued expenses and other liabilities $ 549,074 $ 490,253 (1) Property and sales tax payable as of December 31, 2023 includes a $ 7.8 million reserve related to an ongoing state sales tax audit in the state of Washington covering tax years 2017 through 2021. The reserve was based in part on the unfavorable outcome of a prior Washington sales tax audit cycle which concluded in December 2023. Self-Insurance and Warranty Reserves — We accrue for the expected costs associated with our limited warranty, deductibles and self-insured exposure under our various insurance policies within Beneva. A summary of the changes in reserves are as follows (in thousands): Year Ended 2023 2022 2021 Reserve - beginning of period $ 161,675 $ 141,839 $ 118,116 Additions to reserves 83,226 76,643 77,827 Cost of claims incurred ( 80,646 ) ( 76,994 ) ( 67,704 ) Changes in estimates to pre-existing reserves 20,193 20,187 13,600 Reserve - end of period (1) $ 184,448 $ 161,675 $ 141,839 (1) The increase in the end of period reserves is a result of year-to-date net losses generated in Beneva. The reserve estimates utilize actuarial assumptions which are based on historical and recent claims data. Both the frequency of the claims and the cost to remediate the claims have increased in recent years, causing increases in reserves. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those reserved and such differences could be material, resulting in a change in future estimated reserves. |
ESTIMATED DEVELOPMENT LIABILITI
ESTIMATED DEVELOPMENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract] | |
ESTIMATED DEVELOPMENT LIABILITIES | 7. ESTIMATED DEVELOPMENT LIABILITIES Estimated development liabilities consists primarily of estimated future utilities improvements in Poinciana, Florida and Rio Rico, Arizona for home sites previously sold, in most cases prior to 1980. Such development liabilities were assumed through our acquisition of AV Homes and initially incurred by affiliates of AV Homes in connection with class action settlement agreements entered into by such affiliates in 1974 (the “1974 Judgment”), which required such entities to install certain water and electric infrastructure at such home sites upon satisfaction of certain conditions. Estimated development liabilities are reduced by actual expenditures and are evaluated and adjusted, as appropriate, to reflect management’s estimate of potential completion costs. Prior to December 31, 2023, these liabilities were based on third-party engineer cost estimates which reflected the estimated completion costs. During 2023, we changed our estimate as a result of management's analysis which included identifying the number of home sites eligible for the future utility improvements and bifurcating into groups based on the home site status to better estimate the future costs and our liability. This change in estimate was a result of a change in policy, consistent with the terms of the 1974 Judgment, to perform infrastructure work for only lot owners that meet specific criteria, such as having privity of contract with the original sale documents. Management considered many factors in connection with this policy change, including the number of lots estimated to be owned by the original owners after bulk sales and foreclosures. Cost increases as a result of inflation or other economic factors were also taken into consideration. The change in estimates resulted in a reduction of the estimated development liabilities of $ 14.8 million at December 31, 2023 from December 31, 2022. This reduction equates to an increase of approximately $ 0.10 per diluted share for the year ended December 31, 2023. Unforeseen changes in claim activity, future increases or decreases of costs for construction, material and labor, as well as other land development and utilities infrastructure costs, may have a significant effect on the estimated development liabilities. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | 8. DEBT Total debt consists of the following (in thousands): As of December 31, 2023 2022 Principal Unamortized Carrying Principal Unamortized Carrying 5.625 % Senior Notes due 2024 (1) — — — 350,000 ( 628 ) 349,372 5.875 % Senior Notes due 2027 500,000 ( 2,672 ) 497,328 500,000 ( 3,459 ) 496,541 6.625 % Senior Notes due 2027 (2) 27,070 1,022 28,092 27,070 1,310 28,380 5.75 % Senior Notes due 2028 450,000 ( 2,551 ) 447,449 450,000 ( 3,183 ) 446,817 5.125 % Senior Notes due 2030 500,000 ( 4,174 ) 495,826 500,000 ( 4,807 ) 495,193 Senior Notes subtotal $ 1,477,070 $ ( 8,375 ) $ 1,468,695 $ 1,827,070 $ ( 10,767 ) $ 1,816,303 Loans payable and other borrowings 394,943 — 394,943 361,486 — 361,486 $ 1 Billion Revolving Credit Facility (3)(4) — — — — — — $ 100 Million Revolving Credit Facility (3)(4) — — — — — — Mortgage warehouse borrowings 153,464 — 153,464 306,072 — 306,072 Total debt $ 2,025,477 $ ( 8,375 ) $ 2,017,102 $ 2,494,628 $ ( 10,767 ) $ 2,483,861 (1) On September 1, 2023, the 5.625 % Senior Notes due 2024 were redeemed in full. (2) Unamortized debt issuance premium is reflective of fair value adjustments as a result of purchase accounting. (3) Unamortized debt issuance costs are included in Prepaid expenses and other assets, net on the Consolidated balance sheets. (4) The $ 1 Billion Revolving Credit Facility Agreement together with the $ 100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”. Senior Notes All of our senior notes (the “Senior Notes”) described below and the related guarantees are senior unsecured obligations and are not subject to registration rights. The majority of indentures governing our senior notes contain covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions and contain customary events of default. None of the indentures for the senior notes have financial maintenance covenants. As of December 31, 2023, we were in compliance with all of the covenants under the Senior Notes. 5.625 % Senior Notes due 2024 Our 5.625 % Senior Notes due 2024 (the “2024 Senior Notes”) were redeemed in full on September 1, 2023 using cash on hand at a price equal to 100 % of par, plus the accrued and unpaid interest up to, but excluding, the redemption date. As a result of the redemption, we recorded a net loss on extinguishment of debt of $ 0.3 million for the year ended December 31, 2023 to Loss/(gain) on extinguishment of debt, net, on the Consolidated statement of operations, which included the write-off of net unamortized deferred financing fees. 5.875 % Senior Notes due 2027 On June 5, 2019, Taylor Morrison Communities, Inc. ("TM Communities") issued $ 500.0 million aggregate principal amount of 5.875 % Senior Notes due 2027 (the “2027 5.875 % Senior Notes”), which mature on June 15, 2027. The 2027 5.875 % Senior Notes are guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the "Guarantors"). We are required to offer to repurchase the 2027 5.875% Senior Notes at a price equal to 101 % of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events where there is a credit rating downgrade that occurs in connection with the change in control. Prior to March 15, 2027, the 2027 5.875 % Senior Notes are redeemable at a price equal to 100 % plus a “make-whole” premium for payments through March 15, 2027 (plus accrued and unpaid interest). Beginning on March 15, 2027, the 2027 5.875 % Senior Notes are redeemable at par (plus accrued and unpaid interest). 6.625 % Senior Notes due 2027 Following our exchange offer in the first quarter of 2020 (the “Exchange Offer”), whereby TM Communities offered to exchange any and all outstanding senior notes issued by William Lyon Homes (“WLH”), we had $ 290.4 million aggregate principal amount of 6.625 % Senior Notes due 2027 issued by TM Communities (the “2027 6.625 % TM Communities Notes”) and $ 9.6 million aggregate principal amount of 6.625 % Senior Notes due 2027 issued by WLH (the “2027 6.625 % WLH Notes” and together with the 2027 6.625 % TM Communities Notes, the “2027 6.625 % Senior Notes”). The 2027 6.625 % TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors. On June 13, 2022, TM Communities announced a cash tender offer to purchase any and all of the $ 290.4 million outstanding aggregate principal amount of the 2027 6.625 % TM Communities Notes (the “Tender Offer”), which expired July 12, 2022. TM Communities purchased $ 264.1 million and an additional approximately $ 0.9 million of the 2027 6.625 % TM Communities Notes pursuant to the Tender Offer using cash on hand and borrowings on our $ 1 Billion Revolving Credit Facility at a price equal to 100 % and 97 %, respectively, of the principal amounts, plus accrued and unpaid interest up to, but excluding, the settlement date. As a result of the Tender Offer, TM Communities repurchased a total of $ 265.0 million in aggregate principal amount of outstanding 2027 6.625 % TM Communities Notes and we recorded a net gain on extinguishment of debt of approximately $ 13.6 million for the year ended December 31, 2022 to Loss/(gain) on extinguishment of debt, net, on the Consolidated statement of operations. On November 3, 2022, we purchased $ 8.0 million of the 2027 6.625 % WLH Notes using cash on hand and borrowings on our $ 1 Billion Revolving Credit Facility at a price equal to 91.25 % of the principal amount, plus accrued and unpaid interest up to, but excluding, the settlement date. As a result of the redemption of the 2027 6.625 % WLH Notes, we recorded a net gain on extinguishment of debt of approximately $ 1.1 million for the year ended December 31, 2022 to Loss/(gain) on extinguishment of debt, net, on the Consolidated statement of operations. The remaining 2027 6.625 % Senior Notes mature on July 15, 2027. As of December 31, 2023, the remaining 2027 6.625 % Senior Notes are redeemable at a price equal to 102.208 % of principal (plus accrued and unpaid interest). On or after July 31, 2024, the 2027 6.625 % Senior Notes are redeemable at a price equal to a 101.104 % of principal (plus accrued and unpaid interest). On or after July 15, 2025, the remaining 2027 6.625 % Senior Notes are redeemable at a price equal to 100 % of principal (plus accrued and unpaid interest). 5.75 % Senior Notes due 2028 On August 1, 2019, TM Communities issued $ 450.0 million aggregate principal amount of 5.75 % Senior Notes due 2028 (the “2028 Senior Notes”), which mature on January 15, 2028. The 2028 Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2028 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to October 15, 2027, the 2028 Senior Notes are redeemable at a price equal to 100 % plus a “make-whole” premium for payments through October 15, 2027 (plus accrued and unpaid interest). Beginning on October 15, 2027, the 2028 Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.125 % Senior Notes due 2030 On July 22, 2020, TM Communities issued $ 500.0 million aggregate principal amount of 5.125 % Senior Notes due 2030 (the “2030 Senior Notes), which mature on August 1, 2030. The 2030 Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2030 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. The 2030 Senior Notes mature on August 1, 2030. The Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2030 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to February 1, 2030, the 2030 Senior Notes are redeemable at a price equal to 100.0 % plus a “make-whole” premium for payments through February 1, 2030 (plus accrued and unpaid interest). Beginning on February 1, 2030, the 2030 Senior Notes are redeemable at par (plus accrued and unpaid interest). $ 1 Billion Revolving Credit Facility On September 9, 2022, we entered into an agreement to exercise the accordion feature under our existing Amended and Restated Credit Agreement increasing the aggregate commitments from $ 800 million to $ 1.0 billion. Our $ 1 Billion Revolving Credit Facility ("$ 1 Billion Facility") has a maturity date of March 11, 2027 . We had no outstanding borrowings under $ 1 Billion Facility as of December 31, 2023 and December 31, 2022. As of December 31, 2023 and December 31, 2022, we had $ 2.9 million and $ 3.8 million, respectively, of unamortized debt issuance costs, which are included in Prepaid expenses and other assets, net, on the Consolidated balance sheets. As of December 31, 2023 and December 31, 2022, we had $ 61.2 million and $ 69.2 million, respectively, of utilized letters of credit, resulting in $ 938.8 million and $ 930.8 million, respectively, of availability. The $ 1 Billion Facility contains certain “springing” financial covenants, requiring us and our subsidiaries to comply with a maximum debt to capitalization ratio of not more than 0.60 to 1.00 and a minimum consolidated tangible net worth level, currently of at least $ 3.3 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $ 1 Billion Facility are outstanding during the last day of such fiscal quarter or on more than five separate days during such fiscal quarter or (b) undrawn letters of credit (except to the extent cash collateralized) issued under the $ 1 Billion Facility in an aggregate amount greater than $ 40.0 million or unreimbursed letters of credit issued under the $ 1 Billion Facility are outstanding on the last day of such fiscal quarter or for more than five consecutive days during such fiscal quarter. For purposes of determining compliance with the financial covenants for any fiscal quarter, the $ 1 Billion Facility provides that we may exercise an equity cure by issuing certain permitted securities for cash or otherwise recording cash contributions to our capital that will, upon the contribution of such cash to the borrower, be included in the calculation of consolidated tangible net worth and consolidated total capitalization. The equity cure right is exercisable up to twice in any period of four consecutive fiscal quarters and up to five times overall. The $ 1 Billion Facility contains certain restrictive covenants including limitations on incurrence of liens, the payment of dividends and other distributions, asset dispositions and investments in entities that are not guarantors, limitations on prepayment of subordinated indebtedness and limitations on fundamental changes. The $ 1 Billion Facility contains customary events of default, subject to applicable grace periods, including for nonpayment of principal, interest or other amounts, violation of covenants (including financial covenants, subject to the exercise of an equity cure), incorrectness of representations and warranties in any material respect, cross default and cross acceleration, bankruptcy, material monetary judgments, ERISA events with material adverse effect, actual or asserted invalidity of material guarantees and change of control. As of December 31, 2023, we were in compliance with all of the covenants under the $ 1 Billion Facility. $ 100 Million Revolving Credit Facility Our $ 100 Million Revolving Credit Facility ($ 100 Million Facility) matures on September 17, 2024 and is guaranteed by the Guarantors. As of December 31, 2023 and December 31, 2022, we had $ 0.2 million and $ 0.5 million, respectively, of unamortized debt issuance costs relating to our $ 100 Million Facility, which are included in Prepaid expenses and other assets, net, on the Consolidated balance sheets. We had no utilized letters of credit as of December 31, 2023 and December 31, 2022, resulting in $ 100.0 million of availability. The $ 100 Million Facility contains substantially the same “springing” financial covenants and equity cure rights as the $ 1 Billion Facility. The $ 100 Million Facility includes the same restrictive covenants as are included in the $ 1 Billion Facility, described above. As of December 31, 2023, we were in compliance with all of the covenants under the $ 100 Million Facility. Mortgage Warehouse Borrowings The following is a summary of our TMHF mortgage warehouse borrowings: As of December 31, 2023 Facility Amount Facility Interest Expiration Collateral (1) Warehouse A $ 13,477 $ 60,000 Term SOFR + 1.70 % on Demand Mortgage Loans Warehouse B (2) — — N/A N/A N/A Warehouse C 25,567 100,000 Term SOFR + 1.65 % on Demand Mortgage Loans Warehouse D 56,745 100,000 Daily SOFR + 1.50 % September 4, 2024 Mortgage Loans Warehouse E 57,675 100,000 Term SOFR + 1.60 % on Demand Mortgage Loans Total $ 153,464 $ 360,000 As of December 31, 2022 Facility Amount Facility Interest Expiration Collateral (1) Warehouse A $ 29,066 $ 60,000 Daily SOFR + 1.70 % on Demand Mortgage Loans Warehouse B 94,258 150,000 BSBY 1M + 1.65 % on Demand Mortgage Loans Warehouse C 53,607 75,000 Term SOFR + 1.65 % on Demand Mortgage Loans & Pledged Cash Warehouse D 83,259 140,000 Daily SOFR + 1.50 % September 6, 2023 Mortgage Loans Warehouse E 45,882 70,000 Term SOFR + 1.60 % on Demand Mortgage Loans Total $ 306,072 $ 495,000 (1) The mortgage warehouse borrowings outstanding as of December 31, 2023 and 2022, are collateralized by $ 193.3 million and $ 346.4 million, respectively, of mortgage loans held for sale. (2) Beginning October 1, 2023, the lender for Warehouse B discontinued providing mortgage warehouse facility financings to the industry in general. The facility amounts for Warehouses D and E were expanded to offset the loss of liquidity from Warehouse B. Loans Payable and Other Borrowings Loans payable and other borrowings as of December 31, 2023 and 2022 consist of project-level debt to various land sellers and financial institutions for specific communities. Project-level debt is generally secured by the land that was acquired and the principal payments generally coincide with corresponding project lot closings or a principal reduction schedule. These borrowings bear interest at rates that ranged from 0 % to 9 % and 0 % to 8 % at each of December 31, 2023 and December 31, 2022, respectively. We impute interest for loans with no stated interest rates. Future Minimum Principal Payments on Total Debt Principal maturities of total debt for the year ended December 31, 2023 are as follows (in thousands): (Dollars in thousands) Year Ended 2024 $ 357,962 2025 103,790 2026 64,904 2027 547,456 2028 451,263 Thereafter 500,102 Total debt $ 2,025,477 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 9. FAIR VALUE DISCLOSURES ASC Topic 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 — Fair value is based on quoted prices for identical assets or liabilities in active markets. Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable. Level 3 — Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique. The fair value of our Mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our Mortgage warehouse borrowings, Loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. The fair value of our Equity security investment in a public company is based upon quoted prices for identical assets in an active market. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2023, when compared to December 31, 2022. The carrying value and fair value of our financial instruments are as follows: As of December 31,2023 As Of December 31,2022 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 193,344 $ 193,344 $ 346,364 $ 346,364 IRLCs 3 1,489 1,489 2,386 2,386 MBSs 2 ( 5,055 ) ( 5,055 ) 1,090 1,090 Mortgage warehouse borrowings 2 153,464 153,464 306,072 306,072 Loans payable and other borrowings 2 394,943 394,943 361,486 361,486 5.625 % Senior Notes due 2024 (1) 2 — — 349,372 347,375 5.875 % Senior Notes due 2027 (1) 2 497,328 502,500 496,541 480,060 6.625 % Senior Notes due 2027 (1) 2 28,092 26,529 28,380 26,123 5.75 % Senior Notes due 2028 (1) 2 447,449 451,571 446,817 421,358 5.125 % Senior Notes due 2030 (1) 2 495,826 483,690 495,193 434,330 Equity security 1 460 460 460 460 (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) Level in Fair As of (1) As of Description: Real estate inventories 3 19,263 48,360 (1) As of December 31, 2023 there was no additional impairment; therefore, the fair value information presented is as of September 30, 2023. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Current: Federal $ 196,464 $ 203,119 $ 73,087 State 51,009 48,134 23,493 Current tax provision $ 247,473 $ 251,253 $ 96,580 Deferred: Federal $ ( 1,003 ) $ 66,667 $ 75,044 State 1,627 18,508 9,117 Deferred tax provision $ 624 $ 85,175 $ 84,161 Total income tax provision $ 248,097 $ 336,428 $ 180,741 A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21 % to income before provision for income taxes is as follows: Year Ended December 31, 2023 2022 2021 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 4.1 3.9 3.8 Non-controlling interest ( 0.3 ) ( 0.1 ) ( 0.6 ) Uncertain tax positions — — ( 0.2 ) Energy tax credits ( 0.4 ) ( 1.3 ) ( 1.4 ) Disallowed compensation expense 0.6 0.4 0.2 Excess stock compensation benefit ( 0.5 ) — — Impact of CARES Act — — ( 1.3 ) Other ( 0.1 ) 0.3 ( 0.6 ) Effective Rate 24.4 % 24.2 % 20.9 % Our effective tax rate for 2023 and 2022 was affected by a number of factors including state income taxes and nondeductible executive compensation, partially offset by excess tax benefits from stock-based compensation and energy tax credits relating to homebuilding activities. We have certain tax attributes available to offset the impact of future income taxes. The components of net deferred tax assets and liabilities at December 31, 2023 and 2022, consisted of timing differences related to real estate inventory impairments, expense accruals and reserves, provisions for liabilities, and net operating loss carryforwards. A summary of these components for the years ending December 31, 2023 and 2022 is as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 Deferred tax assets: Real estate inventory $ 41,660 $ 62,990 Accruals and reserves 58,864 48,391 Other — 5,425 Net operating losses (1) 54,845 62,150 Capital loss carryforward — 36,054 Total deferred tax assets $ 155,369 $ 215,010 Deferred tax liabilities: Real estate inventory, intangibles, other ( 8,414 ) ( 10,632 ) Valuation allowance — ( 36,054 ) Other ( 2,274 ) — Deferred income ( 76,856 ) ( 100,668 ) Total net deferred tax assets $ 67,825 $ 67,656 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equity holders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of William Lyon Homes. All three acquisitions were deemed to be a change in control as defined by Section 382. Capital loss carryovers related to the 2018 corporate reorganization expired on December 31, 2023. As such, we have written off the $ 36.1 million deferred tax asset and the corresponding valuation allowance. We have approximately $ 184.6 million in available gross federal NOL carryforwards. Federal NOL carryforwards generated prior to January 1, 2018 may be used to offset future taxable income for a period of 20 years and begin to expire in 2029 . State NOL carryforwards may be used to offset future taxable income for a period of 20 years and begin to expire in 2026 . On an ongoing basis, we will continue to review all available evidence to determine if we expect to realize our deferred tax assets and federal and state NOL carryovers or if a valuation allowance is necessary. We account for uncertain tax positions in accordance with ASC 740. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not based on the technical merits of the position that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. We believe we have a reasonable basis for our current income tax filing positions and that our positions would be sustained under audit. As such, we do not anticipate any adjustments that would result in a material change. As of December 31, 2023, 2022 and 2021 there are no unrecognized tax benefits. We are currently under exam by the IRS for certain federal income tax returns for tax years 2015 through 2018 and 2020. The outcome of these examinations is not yet determinable but we believe our tax positions meet the more-likely-than-not threshold. The statute of limitations for our major taxing jurisdictions remains open for examination for tax years 2015 through 2023. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 11. STOCKHOLDERS’ EQUITY Capital Stock The Company’s authorized capital stock consists of 400,000,000 shares of common stock, par value $ 0.00001 per share (the “common stock”), and 50,000,000 shares of preferred stock, par value $ 0.00001 per share. Stock Repurchase Program On December 15, 2023 the Board of Directors authorized a renewal of the stock repurchase program which permits the Company to repurchase up to $ 500.0 million of the Company’s common stock through December 31, 2025. The new stock repurchase program replaced the Company’s prior $ 500.0 million repurchase program, which had been scheduled to expire on December 31, 2023. Repurchases under the new program may occur from time to time through open market purchases, privately negotiated transactions or other transactions. The timing, manner, price and amount of any common stock repurchases will be determined by us in our discretion and will depend on a variety of factors, including prevailing market conditions, our liquidity, the terms of our debt instruments, legal requirements, planned land investment and development spending, acquisition and other investment opportunities and ongoing capital requirements. The program does not require us to repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or discontinued at any time. The following table summarizes share repurchase activity for the program for the years ended December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 Amount available for repurchase — beginning of period $ 279,138 $ 230,413 Amount cancelled from expired or unused authorizations ( 156,690 ) ( 75,000 ) Additional amount authorized for repurchase (1) 500,000 500,000 Amount repurchased ( 2,814,956 and 14,568,364 shares as of December 31, 2023 ( 127,959 ) ( 376,275 ) Amount available for repurchase — end of period $ 494,489 $ 279,138 (1) Amount in each 2023 and 2022 includes a $ 500.0 million new authorization announced on December 15, 2023 and May 31, 2022, respectively. The Inflation Reduction Act was enacted on August 16, 2022 and includes a one percent excise tax on the net repurchase of company stock. This act was effective as of January 1, 2023 and did not have a material impact on our financial statements for the twelve months ended December 31, 2023. We will continue to assess the impact it may have on our financial results. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 12. STOCK BASED COMPENSATION In April 2013, we adopted the Taylor Morrison Home Corporation 2013 Omnibus Equity Award Plan (the “Plan”). The Plan was most recently amended and restated in May 2022. The Plan provides for the grant of stock options, RSUs PRSUs, and other equity-based awards deliverable in shares of our common stock. As of December 31, 2023, we had an aggregate of 5,116,214 shares of common stock available for future grants under the Plan. The following table provides information regarding the amount and components of stock-based compensation expense, which is included in General and administrative expenses in the Consolidated statement of operations (in thousands): Year Ended December 31, 2023 2022 2021 Restricted stock (1) $ 21,977 $ 22,464 $ 15,856 Stock options 4,118 4,437 4,087 Total stock compensation $ 26,095 $ 26,901 $ 19,943 (1) Includes compensation expense related to time-based RSUs and PRSUs. At December 31, 2023, 2022, and 2021, the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $ 26.5 million, $ 27.1 million, and $ 26.5 million, respectively. Stock options — Options granted to employees generally vest and become exercisable ratably on the first, second, third, and fourth anniversary of the date of grant. Vesting of the options is subject to continued employment, through the applicable vesting dates, and options expire within ten years from the date of grant. The following tables summarize stock option activity for the Plan for each year presented: Year Ended December 31, 2023 2022 2021 Number Of Weighted Average Exercise/ Grant Price Number Of Weighted Average Exercise/ Grant Price Number Of Weighted Average Exercise/ Grant Price Outstanding, beginning 3,273,258 $ 23.35 3,165,612 $ 22.02 3,772,775 $ 19.73 Granted (1) 359,768 35.18 519,799 29.30 712,910 28.64 Exercised ( 1,252,516 ) 21.07 ( 323,625 ) 20.69 ( 1,204,283 ) 19.37 Cancelled/forfeited (1) ( 126,368 ) 28.29 ( 88,528 ) 24.64 ( 115,790 ) 21.53 Balance, ending 2,254,142 $ 26.84 3,273,258 $ 23.35 3,165,612 $ 22.02 Options exercisable, 1,133,734 $ 23.48 1,775,881 $ 20.50 1,407,618 $ 19.12 (1) Excludes the number of options granted and canceled in the same period. As of December 31, (Dollars in thousands) 2023 2022 2021 Unamortized value of unvested stock options (net of estimated forfeitures) $ 7,861 $ 7,712 $ 7,515 Weighted-average period (in years) expense expected to be 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options 6.4 6.6 7.0 Weighted-average remaining contractual life (in years) for options 4.8 5.2 5.3 The following table summarizes the weighted-average assumptions and fair value used for stock options grants: Year Ended December 31, 2023 2022 2021 Expected dividend yield — % — % — % Expected volatility (1) 50.87 % 30.46 % 24.65 % Risk-free interest rate (1) 3.90 % 1.91 % 0.75 % Expected term (in years) (1) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $ 14.50 $ 9.94 $ 7.45 (1) Expected volatilities and expected term are based on the historical information of comparable publicly traded homebuilders. Due to the limited number and homogeneous nature of option holders, the expected term was evaluated using a single group. The risk-free rate is based on the U.S. Treasury yield curve for periods equivalent to the expected term of the options on the grant date. The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2023, 2022 and 2021: As of December 31, (Dollars in thousands) 2023 2022 2021 Aggregate intrinsic value of options outstanding $ 59,758 $ 21,439 $ 38,190 Aggregate intrinsic value of options exercisable $ 33,861 $ 15,385 $ 18,897 The aggregate intrinsic value is based on the market price of our common stock on December 31, 2023, the last trading day in December 2023, which was $ 53.35 , less the applicable exercise price of the underlying options. This value represents the amount that would have been realized if all the option holders had exercised their options on December 31, 2023. Performance-Based Restricted Stock Units – These awards will vest in full based on the achievement of certain performance goals over a three-year performance period, subject to the employee’s continued employment through the last date of the performance period and will be settled in shares of our common stock. The number of shares that may be issued in settlement of the PRSUs to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The following table summarizes the activity of our PRSUs: Year Ended December 31, 2023 2022 2021 Balance, beginning 802,379 926,193 930,633 Granted 229,164 272,716 289,308 Vested ( 245,306 ) ( 380,632 ) ( 275,286 ) Forfeited ( 62,114 ) ( 15,898 ) ( 18,462 ) Balance, ending 724,123 802,379 926,193 Year Ended December 31, (Dollars in thousands): 2023 2022 2021 PRSU expense recognized $ 12,619 $ 12,642 $ 8,125 Unamortized value of PRSUs $ 8,122 $ 8,911 $ 8,419 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 Non-Performance-Based Restricted Stock Units — Our RSUs consist of shares of our common stock that have been awarded to our employees and members of our Board of Directors. Vesting of RSUs is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates. Time-based RSUs granted to employees generally vest ratably over a three to four year period, based on the grant date. Time-based RSUs granted to members of the Board of Directors generally vest on the first anniversary of the grant date. The following tables summarize the activity of our RSUs: Year Ended December 31, 2023 2022 2021 Number Of Weighted Average Grant Date Fair Value Number Of (1) Weighted Average Grant Date Fair Value Number Of Weighted Average Grant Date Fair Value Outstanding, beginning 814,834 $ 26.74 804,465 $ 24.73 881,272 $ 21.33 Granted 297,317 35.96 359,993 29.04 370,762 28.62 Vested ( 301,359 ) 27.52 ( 319,595 ) 24.32 ( 390,358 ) 21.28 Forfeited ( 43,576 ) 29.81 ( 30,029 ) 26.90 ( 57,211 ) 23.68 Balance, ending 767,216 $ 29.87 814,834 $ 26.74 804,465 $ 24.73 Year Ended December 31, (Dollars in thousands): 2023 2022 2021 RSU expense recognized $ 9,357 $ 9,822 $ 7,731 Unamortized value of RSUs $ 10,496 $ 10,486 $ 10,561 Weighted-average period expense is expected to be recognized (in years) 1.7 1.7 1.7 The Plan permits us to withhold from the total number of shares that would otherwise be distributed to a recipient on vesting of an RSU, an amount equal to the number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining RSU shares to the recipient. |
OPERATING AND REPORTING SEGMENT
OPERATING AND REPORTING SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
OPERATING AND REPORTING SEGMENTS | 13. OPERATING AND REPORTING SEGMENTS We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. The activity from our Build-to-Rent and Urban Form operations are included in our Corporate segment. We also have a Financial Services reporting segment. Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows (in thousands): Year Ended December 31, 2023 East Central West Financial Corporate (1) Total Total revenue $ 2,674,630 $ 1,964,265 $ 2,605,449 $ 160,312 $ 13,175 $ 7,417,831 Gross margin 721,319 495,929 496,318 66,323 3,184 1,783,073 Selling, general and administrative expenses ( 185,324 ) ( 158,807 ) ( 178,828 ) — ( 175,748 ) ( 698,707 ) Net income/(loss) from unconsolidated entities — ( 98 ) ( 217 ) 9,148 ( 76 ) 8,757 Interest and other (expense)/income, net (2) ( 73,205 ) ( 7,608 ) 3,981 — 1,842 ( 74,990 ) Gain on extinguishment of debt, net — — — — ( 295 ) ( 295 ) Income/(loss) before income taxes $ 462,790 $ 329,416 $ 321,254 $ 75,471 $ ( 171,093 ) $ 1,017,838 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. The East segment includes a legal settlement (refer to Note 14 - Commitments and Contingencies ), The East and West segments include our estimated development liabilities adjustment. (refer to Note 7 - Estimated development liabilities ). Corporate and Unallocated includes our insurance loss (refer to Note 6 - Accrued expenses and other liabilities ) which is partially offset by interest income. Year Ended December 31, 2022 East Central West Financial Corporate (1) Total Total revenue $ 2,739,759 $ 2,024,730 $ 3,228,853 $ 135,491 $ 96,084 $ 8,224,917 Gross margin 718,223 493,006 791,944 51,531 37,662 2,092,366 Selling, general and administrative expenses ( 180,177 ) ( 137,824 ) ( 167,751 ) - ( 157,460 ) ( 643,212 ) Net income/(loss) from unconsolidated entities - ( 55 ) ( 18,445 ) 5,271 ( 955 ) ( 14,184 ) Interest and other (expense)/income, net (2) ( 6,725 ) ( 10,364 ) ( 23,881 ) - ( 15,201 ) ( 56,171 ) Gain on extinguishment of debt, net - - - - 13,876 13,876 Income/(loss) before income taxes $ 531,321 $ 344,763 $ 581,867 $ 56,802 $ ( 122,078 ) $ 1,392,675 (1) Includes the assets from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. Year Ended December 31, 2021 East Central West Financial Corporate (1) Total Total revenue $ 2,423,948 $ 1,741,689 $ 3,126,621 $ 164,615 $ 44,392 $ 7,501,265 Gross margin 522,721 336,896 614,130 62,767 11,367 1,547,881 Selling, general and administrative expenses ( 184,744 ) ( 133,991 ) ( 187,515 ) — ( 162,092 ) ( 668,342 ) Net income/(loss) from unconsolidated entities — 306 2,190 8,644 ( 10 ) 11,130 Interest and other (expense)/income, net (2) ( 923 ) ( 3,103 ) ( 7,228 ) — ( 16,307 ) ( 27,561 ) Income/(loss) before income taxes $ 337,054 $ 200,108 $ 421,577 $ 71,411 $ ( 167,042 ) $ 863,108 (1) Includes the assets from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. As of December 31, 2023 East Central West Financial Services Corporate (1) Total Real estate inventory and land deposits $ 1,909,084 $ 1,181,014 $ 2,658,565 $ — $ — $ 5,748,663 Investments in unconsolidated entities 63,628 125,610 88,219 5,483 63,252 346,192 Other assets 177,739 214,685 616,210 298,451 1,270,147 2,577,232 Total assets $ 2,150,451 $ 1,521,309 $ 3,362,994 $ 303,934 $ 1,333,399 $ 8,672,087 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2022 East Central West Financial Corporate (1) Total Real estate inventory and land deposits $ 1,820,765 $ 1,359,805 $ 2,453,662 $ — $ — $ 5,634,232 Investments in unconsolidated entities 46,629 104,070 80,310 5,283 46,608 282,900 Other assets 216,816 251,727 613,029 431,535 1,040,485 2,553,592 Total assets $ 2,084,210 $ 1,715,602 $ 3,147,001 $ 436,818 $ 1,087,093 $ 8,470,724 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2021 East Central West Financial Corporate (1) Total Real estate inventory and land deposits $ 1,781,948 $ 1,282,024 $ 2,665,084 $ — $ — $ 5,729,056 Investments in unconsolidated entities — 87,600 79,531 4,275 — 171,406 Other assets 196,126 221,906 588,520 559,233 1,261,530 2,827,315 Total assets $ 1,978,074 $ 1,591,530 $ 3,333,135 $ 563,508 $ 1,261,530 $ 8,727,777 (1) Includes the assets from our Build-To-Rent and Urban Form operations . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Letters of Credit and Surety Bonds — We are committed, under various letters of credit and surety bonds, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit and surety bonds under these arrangements totaled $ 1.3 billion and $ 1.2 billion at December 31, 2023 and December 31, 2022, respectively. Although significant development and construction activities have been completed related to these site improvements, the bonds are generally not released until all development and construction activities are completed. We do not believe that it is probable that any outstanding bonds as of December 31, 2023 will be drawn upon. Purchase Commitments — We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in the routine conduct of our business. We have a number of land purchase option contracts and land banking agreements, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property and the creditors generally have no recourse. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits. At both December 31, 2023 and 2022, the aggregate purchase price of these contracts was $ 1.5 billion. Legal Proceedings — We are involved in various litigation and legal claims in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss can be reasonably estimated. At December 31, 2023 and 2022, our legal reserves were $ 26.2 million and $ 20.6 million, respectively. 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. Predicting the ultimate resolution of the pending matters, the related timing, or the eventual loss associated with these matters is inherently difficult. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the recorded reserves relating to such matter. 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. On April 26, 2017, a class action complaint was filed in the Circuit Court of the Tenth Judicial Circuit in and for Polk County, Florida by Norman Gundel, William Mann, and Brenda Taylor against Avatar Properties, Inc., (an acquired AV Homes entity) ("Avatar"), generally alleging that our collection of club membership fees in connection with the use of one of our amenities in our East homebuilding segment violates various laws relating to homeowner associations and other Florida-specific laws (the "Solivita litigation"). The class action complaint sought an injunction to prohibit future collection of club membership fees. On November 2, 2021, the court determined that the club membership fees were improper and that plaintiffs were entitled to $ 35.0 million in fee reimbursements. We appealed the court’s ruling to the Sixth District Court of Appeal on November 29, 2021, and the plaintiffs agreed to continue to pay club membership fees pending the outcome of the appeal. On June 23, 2023 the District Court affirmed the trial court judgment in a split decision, with three separate opinions. Recognizing the potential “far-reaching effects on homeowners associations throughout the State,” the District Court certified a question of great public importance to the Florida Supreme Court, and we filed a notice to invoke the discretionary review of the Florida Supreme Court. On November 2, 2023, the Florida Supreme Court declined to exercise jurisdiction. Following the Florida Supreme Court’s decision, we paid $ 64.7 million to the plaintiffs during the quarter ended December 31, 2023, which includes the amount of the trial court’s judgment, club membership fees received during the pendency of our appeal, pre-judgment interest and post-judgment interest. We expect to incur additional costs with respect to the plaintiff’s legal fees and costs; however, such amount cannot be reasonably estimated. After reviewing our amenity arrangements in our Florida communities to determine whether such arrangements might subject the Company to liability in light of the outcome of the Solivita litigation described above, we identified one additional community with similar claims. On August 13, 2020, Slade Chelbian, a resident of our Bellalago community in Kissimmee, Florida, filed a purported class action suit against Avatar, AV Homes, Inc. and Taylor Morrison Home Corporation in the Circuit Court of the Ninth Circuit in and for Osceola County, Florida, generally alleging that Avatar cannot earn profits from community members for use of club amenities where membership in the club is mandatory for all residents and failure to pay club membership fees could result in the foreclosure of their homes by Avatar. On February 25, 2022, the court stayed the action pending the resolution of the Solivita litigation. There is currently no class action certification in this claim and there has been no change in the status of the claim since the November 2, 2023 Supreme Court decision in the Solivita litigation. While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, management has recorded a reserve based on management’s best estimate of losses related to the resolution of this matter, which is reflected in our legal accruals as of December 31, 2023. |
MORTGAGE HEDGING ACTIVITIES
MORTGAGE HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MORTGAGE HEDGING ACTIVITIES | 15. MORTGAGE HEDGING ACTIVITIES The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2023 December 31, 2022 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 1,489 $ 219,129 $ 2,386 $ 375,030 MBSs ( 5,055 ) 285,000 1,090 504,000 Total $ ( 3,566 ) $ 3,476 (1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved. Total commitments to originate loans approximated $ 242.6 million and $ 419.6 million at December 31, 2023 and 2022, respectively. This amount represents the commitments to originate loans that have been locked and approved by underwriting. The notional amounts in the table above include mandatory and best effort loans that have been locked and approved by underwriting. We have exposure to credit loss in the event of contractual non-performance by our trading counterparties in derivative instruments that we use in our rate risk management activities. We manage this credit risk by selecting only counterparties that we believe to be financially strong, spreading the risk among multiple counterparties, by placing contractual limits on the amount of unsecured credit extended to any single counterparty, and by entering into netting agreements with counterparties, as appropriate. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying Consolidated financial statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries as well as certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. |
Joint Ventures | Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests” on the Consolidated statement of operations. The assets, liabilities and equity from the percentage of the joint venture not owned by us is presented as “Non-controlling interests” on the Consolidated balance sheets and Consolidated statement of stockholders’ equity. The balance of Non-controlling interests on the Consolidated balance sheets will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses and distributions or contributions associated with the partners within the joint venture. Investments in Consolidated and Unconsolidated Entities Consolidated Arrangements — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) is created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the Consolidated balance sheets. Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net (income)/loss from unconsolidated entities on the Consolidated statement of operations when earned and distributions are credited against our Investment in unconsolidated entities on the Consolidated balance sheets when received. We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment’s carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded $ 14.7 million of impairment charges related to investments in unconsolidated entities for the year ended December 31, 2022. No such charges were recorded for the years ended December 31, 2023 and 2021. |
Use of Estimates | Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of goodwill, valuation of estimated development liabilities, valuation of equity awards, valuation allowance on deferred tax assets and reserves for warranty and self-insured risks. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage loans held for sale. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage loans held for sale, there was no concentration of mortgage loans with any one borrower for the year ended December 31, 2023. No material losses have been experienced to date. In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the home sold with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2023 , the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. |
Restricted Cash | Restricted Cash — For the years ended December 31, 2023 and 2022 , restricted cash consisted of cash held in escrow deposits. |
Leases | Leases — We recognize leases in accordance with ASC Topic 842, Leases. Our operating leases primarily consist of office space, construction trailers, model home leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. Operating and finance leases are recorded in Lease right of use asset and Lease liabilities on the Consolidated balance sheets. A summary of our leases is shown below: Operating Leases Finance Leases (Dollars in millions) 2023 2022 2021 2023 2022 2021 Weighted average discount rate 5.9 % 5.9 % 5.9 % 7.3 % 7.3 % 7.3 % Weighted average remaining lease 3.8 4.1 4.1 85.1 86.0 86.9 Payments on lease liabilities $ 28.1 $ 29.2 $ 20.7 $ 1.3 $ 1.3 $ 1.3 Recorded lease expense $ 22.8 $ 25.4 $ 15.9 $ 2.0 $ 2.0 $ 2.0 The future minimum lease payments required under our leases as of December 31, 2023 are as follows (dollars in thousands): Years Ending December 31, Operating Finance Total 2024 $ 22,674 $ 1,309 $ 23,983 2025 16,741 1,300 18,041 2026 11,548 1,300 12,848 2027 8,285 1,300 9,585 2028 4,275 1,300 5,575 Thereafter 4,309 257,386 (1) 261,695 Total lease payments $ 67,832 $ 263,895 $ 331,727 Less: Interest $ 7,096 $ 239,632 $ 246,728 Present value of future lease payments $ 60,737 $ 24,262 $ 84,999 (1) Includes a 90-year land lease. |
Real Estate Inventory | Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. The life cycle of a typical community generally ranges from two to five years , commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the years ended December 31, 2023 and 2022, we recorded $ 11.8 million and $ 24.9 million of impairment charges, all of which related to our West reporting segment. For the year ended December 31, 2021, we recorded no impairment charges. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated statement of operations. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes and such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of December 31, 2023 and 2022, we had no long-term strategic assets. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once it meets all criteria in accordance with ASC 360 Property, Plant and Equipment. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the years ended December 31, 2023 and 2022 we had no material fair value adjustments for land held for sale. For the year ended December 31, 2021, we had $ 4.7 million of fair value adjustments for land held for sale which was recorded within Cost of land closings on the Consolidated statement of operations. Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. We incur interest expense on these arrangements. Interest is based on remaining lots to be purchased and is capitalized for the percentage of lots in each project actively under development, with the remainder expensed and included in Interest (income)/expense, net on the Consolidated statement of operations.The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-significant and non-refundable cash deposit. We are not legally obligated to purchase the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. As such, these entities are not consolidated. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the Consolidated balance sheets. |
Land Deposits | Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated balance sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to Other expense, net if the land acquisition process is terminated or no longer determined probable. |
Mortgages Loans Held for Sale | Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our wholly-owned mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for Mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for Mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing. |
Derivative Assets | Derivative Assets — We enter into interest rate lock commitments (“IRLCs”) when originating residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. We are exposed to interest rate risk as a result of these IRLCs and originated Mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and Mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and Mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and Mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and Mortgage loans held for sale are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and Mortgage loans held for sale to economically hedge. The IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value in Prepaid expenses and other assets, net or Accrued expenses and other liabilities, with changes in fair value recognized in Financial Services revenue on the Consolidated statements of operations. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and Mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. Refer to Note 15—Mortgage Hedging Activities for additional information. |
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2023 2022 Prepaid expenses $ 41,311 $ 45,872 Other assets 104,210 154,279 Build-to-Rent assets 145,405 65,241 Total prepaid expenses and other assets, net $ 290,925 $ 265,392 Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the revolving credit facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the homes to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivables, Urban Form assets, and other deferred costs. Build-to-Rent assets consist primarily of land and development costs relating to projects under construction. |
Other Receivables, net | Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in Other expense, net, when it becomes likely uncollectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. Allowances at December 31, 2023 and 2022 were immaterial. |
Income Taxes | Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. |
Property and Equipment, net | Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $ 9.0 million, $ 7.6 million, and $ 7.5 million, respectively, for the years ended December 31, 2023, 2022, and 2021. Depreciation expense is recorded in General and administrative expenses in the Consolidated statement of operations. |
Goodwill | Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth fiscal quarter or whenever impairment indicators are present. For the years ended December 31, 2023, 2022 and 2021, goodwill was no t impaired. |
Insurance Costs, Self-Insurance Reserves and Warranty Reserves | Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), a wholly-owned captive insurance company, which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. Our loss reserves for structural defects are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated balance sheets. We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced separately from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated statements of operations. |
Stock Based Compensation | Stock Based Compensation — We have stock options, performance-based restricted stock units ("PRSUs") and non-performance-based restricted stock units ("RSUs" or "Restricted stock"), which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. PRSUs are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. RSUs are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period. |
Employee Benefit Plans | Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code ("IRC") (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. At December 31, 2023, we match 100 % of employees’ voluntary contributions up to 4 % of eligible compensation, and 50 % for each dollar contributed between 4 % and 5 % of eligible compensation. We contributed $ 13.2 million, $ 13.6 million, and $ 11.3 million to the 401(k) Plan for the years ended December 31, 2023, 2022, and 2021, respectively. |
Treasury Stock | Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity—Treasury Stock. Repurchased shares are reflected as a reduction in stockholders’ equity and subsequent sale of repurchased shares are recognized as a change in equity. To date, we have not sold any treasury stock. |
Revenue Recognition | Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard’s core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue: Revenue from closings of residential real estate is recognized when the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue We own and operate certain amenities such as golf courses, club houses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. Generally, loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the statement of operations in the period in which they occur. See "Derivative Assets" above in this Note 2. |
Advertising Costs | Advertising Costs — We expense advertising costs as incurred. For the years ended December 31, 2023, 2022, and 2021, advertising costs were $ 28.7 million, $ 33.9 million, and $ 30.4 million, respectively. Such costs are included in General and administrative expenses on the Consolidated statement of operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements — In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures , which establishes new income tax disclosure requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation as well as further disaggregate income taxes paid. This ASU can be applied prospectively or retrospectively and is effective for the annual reporting period ending December 31, 2025. The adoption of ASU 2023-09 will not impact our Consolidated financial statements but we are currently reviewing the impact that it may have on our disclosures. In November 2023, FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. This ASU will be effective for us for the annual reporting period ending December 31, 2024. We are currently reviewing the impact that the adoption of ASU 2023-07 may have on our Consolidated financial statements and disclosures. In August 2023, FASB issued ASU 2023-05, Business Combinations— Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement , under which an entity that qualifies as either a joint venture or a corporate joint venture, is required to apply a new basis of accounting upon the formation of the joint venture. Specifically, the ASU stipulates that a joint venture or a corporate joint venture must initially measure its assets and liabilities at fair value on the formation date. This ASU will be applied prospectively for all joint ventures formed on or after January 1, 2025. We are currently reviewing the impact that adoption of ASU 2023-05 may have on our Consolidated financial statements and disclosures. |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of common stock were exercised or settled. |
Fair Value Measurement | ASC Topic 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 — Fair value is based on quoted prices for identical assets or liabilities in active markets. Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable. Level 3 — Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique. The fair value of our Mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our Mortgage warehouse borrowings, Loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. The fair value of our Equity security investment in a public company is based upon quoted prices for identical assets in an active market. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2023, when compared to December 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Lease, Cost | A summary of our leases is shown below: Operating Leases Finance Leases (Dollars in millions) 2023 2022 2021 2023 2022 2021 Weighted average discount rate 5.9 % 5.9 % 5.9 % 7.3 % 7.3 % 7.3 % Weighted average remaining lease 3.8 4.1 4.1 85.1 86.0 86.9 Payments on lease liabilities $ 28.1 $ 29.2 $ 20.7 $ 1.3 $ 1.3 $ 1.3 Recorded lease expense $ 22.8 $ 25.4 $ 15.9 $ 2.0 $ 2.0 $ 2.0 |
Schedule of Future Lease Payments | The future minimum lease payments required under our leases as of December 31, 2023 are as follows (dollars in thousands): Years Ending December 31, Operating Finance Total 2024 $ 22,674 $ 1,309 $ 23,983 2025 16,741 1,300 18,041 2026 11,548 1,300 12,848 2027 8,285 1,300 9,585 2028 4,275 1,300 5,575 Thereafter 4,309 257,386 (1) 261,695 Total lease payments $ 67,832 $ 263,895 $ 331,727 Less: Interest $ 7,096 $ 239,632 $ 246,728 Present value of future lease payments $ 60,737 $ 24,262 $ 84,999 (1) Includes a 90-year land lease. |
Summary of Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2023 2022 Prepaid expenses $ 41,311 $ 45,872 Other assets 104,210 154,279 Build-to-Rent assets 145,405 65,241 Total prepaid expenses and other assets, net $ 290,925 $ 265,392 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Components of Basic and Diluted Earnings Per Share | The following is a summary of the components of basic and diluted earnings per share: Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 768,929 $ 1,052,800 $ 663,026 Denominator: Weighted average shares – basic 108,424 114,982 126,077 Restricted stock 925 707 920 Stock options 796 532 771 Warrants — — 251 Weighted average shares – diluted 110,145 116,221 128,019 Earnings per common share – basic $ 7.09 $ 9.16 $ 5.26 Earnings per common share – diluted $ 6.98 $ 9.06 $ 5.18 |
REAL ESTATE INVENTORY (Tables)
REAL ESTATE INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of December 31, (Dollars in thousands) 2023 2022 Real estate developed and under development $ 3,855,534 $ 3,607,227 Real estate held for development or held for sale (1) 29,317 43,314 Total land inventory 3,884,851 3,650,541 Operating communities (2) 1,414,528 1,506,241 Capitalized interest 174,449 190,123 Total owned inventory 5,473,828 5,346,905 Consolidated real estate not owned 71,618 23,971 Total real estate inventory $ 5,545,446 $ 5,370,876 (1) Real estate held for development or held for sale includes properties which are not in active production. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes. |
Schedule of owned and controlled lots | A summary of owned and controlled lots is as follows: As of December 31, (Dollars in thousands) 2023 2022 Owned lots: Undeveloped 13,418 14,985 Under development 8,848 10,716 Finished 11,811 10,713 Total owned lots 34,077 36,414 Controlled lots: Land option purchase contracts 8,621 6,582 Land banking arrangements 5,818 7,369 Other controlled lots (1) 23,846 24,422 Total controlled lots 38,285 38,373 Total owned and controlled lots 72,362 74,787 Homes in inventory 7,867 7,653 (1) Other controlled lots include agreements whereby the purchase of the lots must occur as a single transaction, as opposed to multiple take-downs. In addition, controlled lots from our unconsolidated JVs are also included. |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Capitalized Interest — Interest capitalized, incurred and amortized is as follows: Year ended December 31, (Dollars in thousands) 2023 2022 2021 Interest capitalized - beginning of period $ 190,123 $ 168,670 $ 163,780 Interest capitalized 119,196 159,913 154,623 Interest amortized to cost of home closings ( 134,870 ) ( 138,460 ) ( 149,733 ) Interest capitalized - end of period $ 174,449 $ 190,123 $ 168,670 |
INVESTMENTS IN CONSOLIDATED A_2
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method | Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands): As of December 31, 2023 2022 Assets: Real estate inventory 952,223 $ 749,942 Other assets 182,517 146,770 Total assets $ 1,134,740 $ 896,712 Liabilities: Debt $ 317,224 $ 238,263 Other liabilities 50,739 31,824 Total liabilities $ 367,963 $ 270,087 Owners’ equity: TMHC $ 346,192 $ 282,900 Others 420,585 343,725 Total owners’ equity $ 766,777 $ 626,625 Total liabilities and owners’ equity $ 1,134,740 $ 896,712 Year ended December 31, 2023 2022 2021 Revenues $ 158,174 $ 168,695 $ 130,640 Costs and expenses ( 135,007 ) ( 163,488 ) ( 97,596 ) Net income from unconsolidated entities $ 23,166 $ 5,207 $ 33,044 TMHC’s share in net income/(loss) of unconsolidated entities $ 8,757 $( 14,184 ) (1) $ 11,130 Distributions to TMHC from unconsolidated entities $ 10,054 $ 130,545 $ 42,655 (1) TMHC’s share in net loss from unconsolidated entities relates to a $ 14.7 million impairment charge to our investment in one of our unconsolidated joint ventures. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): As of December 31, 2023 2022 Real estate development costs to complete $ 46,114 $ 53,155 Compensation and employee benefits 149,095 112,294 Self-insurance and warranty reserves 184,448 161,675 Interest payable 31,042 37,434 Property and sales taxes payable (1) 30,887 30,046 Other accruals 107,488 95,649 Total accrued expenses and other liabilities $ 549,074 $ 490,253 (1) Property and sales tax payable as of December 31, 2023 includes a $ 7.8 million reserve related to an ongoing state sales tax audit in the state of Washington covering tax years 2017 through 2021. The reserve was based in part on the unfavorable outcome of a prior Washington sales tax audit cycle which concluded in December 2023. |
Summary of Changes in Reserves | A summary of the changes in reserves are as follows (in thousands): Year Ended 2023 2022 2021 Reserve - beginning of period $ 161,675 $ 141,839 $ 118,116 Additions to reserves 83,226 76,643 77,827 Cost of claims incurred ( 80,646 ) ( 76,994 ) ( 67,704 ) Changes in estimates to pre-existing reserves 20,193 20,187 13,600 Reserve - end of period (1) $ 184,448 $ 161,675 $ 141,839 (1) The increase in the end of period reserves is a result of year-to-date net losses generated in Beneva. The reserve estimates utilize actuarial assumptions which are based on historical and recent claims data. Both the frequency of the claims and the cost to remediate the claims have increased in recent years, causing increases in reserves. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Borrowings | Total debt consists of the following (in thousands): As of December 31, 2023 2022 Principal Unamortized Carrying Principal Unamortized Carrying 5.625 % Senior Notes due 2024 (1) — — — 350,000 ( 628 ) 349,372 5.875 % Senior Notes due 2027 500,000 ( 2,672 ) 497,328 500,000 ( 3,459 ) 496,541 6.625 % Senior Notes due 2027 (2) 27,070 1,022 28,092 27,070 1,310 28,380 5.75 % Senior Notes due 2028 450,000 ( 2,551 ) 447,449 450,000 ( 3,183 ) 446,817 5.125 % Senior Notes due 2030 500,000 ( 4,174 ) 495,826 500,000 ( 4,807 ) 495,193 Senior Notes subtotal $ 1,477,070 $ ( 8,375 ) $ 1,468,695 $ 1,827,070 $ ( 10,767 ) $ 1,816,303 Loans payable and other borrowings 394,943 — 394,943 361,486 — 361,486 $ 1 Billion Revolving Credit Facility (3)(4) — — — — — — $ 100 Million Revolving Credit Facility (3)(4) — — — — — — Mortgage warehouse borrowings 153,464 — 153,464 306,072 — 306,072 Total debt $ 2,025,477 $ ( 8,375 ) $ 2,017,102 $ 2,494,628 $ ( 10,767 ) $ 2,483,861 (1) On September 1, 2023, the 5.625 % Senior Notes due 2024 were redeemed in full. (2) Unamortized debt issuance premium is reflective of fair value adjustments as a result of purchase accounting. (3) Unamortized debt issuance costs are included in Prepaid expenses and other assets, net on the Consolidated balance sheets. (4) The $ 1 Billion Revolving Credit Facility Agreement together with the $ 100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”. |
Summary of TMHF Mortgage Warehouse Borrowings | The following is a summary of our TMHF mortgage warehouse borrowings: As of December 31, 2023 Facility Amount Facility Interest Expiration Collateral (1) Warehouse A $ 13,477 $ 60,000 Term SOFR + 1.70 % on Demand Mortgage Loans Warehouse B (2) — — N/A N/A N/A Warehouse C 25,567 100,000 Term SOFR + 1.65 % on Demand Mortgage Loans Warehouse D 56,745 100,000 Daily SOFR + 1.50 % September 4, 2024 Mortgage Loans Warehouse E 57,675 100,000 Term SOFR + 1.60 % on Demand Mortgage Loans Total $ 153,464 $ 360,000 As of December 31, 2022 Facility Amount Facility Interest Expiration Collateral (1) Warehouse A $ 29,066 $ 60,000 Daily SOFR + 1.70 % on Demand Mortgage Loans Warehouse B 94,258 150,000 BSBY 1M + 1.65 % on Demand Mortgage Loans Warehouse C 53,607 75,000 Term SOFR + 1.65 % on Demand Mortgage Loans & Pledged Cash Warehouse D 83,259 140,000 Daily SOFR + 1.50 % September 6, 2023 Mortgage Loans Warehouse E 45,882 70,000 Term SOFR + 1.60 % on Demand Mortgage Loans Total $ 306,072 $ 495,000 (1) The mortgage warehouse borrowings outstanding as of December 31, 2023 and 2022, are collateralized by $ 193.3 million and $ 346.4 million, respectively, of mortgage loans held for sale. (2) Beginning October 1, 2023, the lender for Warehouse B discontinued providing mortgage warehouse facility financings to the industry in general. The facility amounts for Warehouses D and E were expanded to offset the loss of liquidity from Warehouse B. |
Principal Maturities of Total Debt | Principal maturities of total debt for the year ended December 31, 2023 are as follows (in thousands): (Dollars in thousands) Year Ended 2024 $ 357,962 2025 103,790 2026 64,904 2027 547,456 2028 451,263 Thereafter 500,102 Total debt $ 2,025,477 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of our financial instruments are as follows: As of December 31,2023 As Of December 31,2022 (Dollars in thousands) Level in Fair Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 193,344 $ 193,344 $ 346,364 $ 346,364 IRLCs 3 1,489 1,489 2,386 2,386 MBSs 2 ( 5,055 ) ( 5,055 ) 1,090 1,090 Mortgage warehouse borrowings 2 153,464 153,464 306,072 306,072 Loans payable and other borrowings 2 394,943 394,943 361,486 361,486 5.625 % Senior Notes due 2024 (1) 2 — — 349,372 347,375 5.875 % Senior Notes due 2027 (1) 2 497,328 502,500 496,541 480,060 6.625 % Senior Notes due 2027 (1) 2 28,092 26,529 28,380 26,123 5.75 % Senior Notes due 2028 (1) 2 447,449 451,571 446,817 421,358 5.125 % Senior Notes due 2030 (1) 2 495,826 483,690 495,193 434,330 Equity security 1 460 460 460 460 (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes. |
Fair Value of Assets Measured on a Nonrecurring Basis | Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) Level in Fair As of (1) As of Description: Real estate inventories 3 19,263 48,360 (1) As of December 31, 2023 there was no additional impairment; therefore, the fair value information presented is as of September 30, 2023. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Current: Federal $ 196,464 $ 203,119 $ 73,087 State 51,009 48,134 23,493 Current tax provision $ 247,473 $ 251,253 $ 96,580 Deferred: Federal $ ( 1,003 ) $ 66,667 $ 75,044 State 1,627 18,508 9,117 Deferred tax provision $ 624 $ 85,175 $ 84,161 Total income tax provision $ 248,097 $ 336,428 $ 180,741 |
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21 % to income before provision for income taxes is as follows: Year Ended December 31, 2023 2022 2021 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 4.1 3.9 3.8 Non-controlling interest ( 0.3 ) ( 0.1 ) ( 0.6 ) Uncertain tax positions — — ( 0.2 ) Energy tax credits ( 0.4 ) ( 1.3 ) ( 1.4 ) Disallowed compensation expense 0.6 0.4 0.2 Excess stock compensation benefit ( 0.5 ) — — Impact of CARES Act — — ( 1.3 ) Other ( 0.1 ) 0.3 ( 0.6 ) Effective Rate 24.4 % 24.2 % 20.9 % |
Summary of Components of Deferred Tax Assets and Liabilities | A summary of these components for the years ending December 31, 2023 and 2022 is as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 Deferred tax assets: Real estate inventory $ 41,660 $ 62,990 Accruals and reserves 58,864 48,391 Other — 5,425 Net operating losses (1) 54,845 62,150 Capital loss carryforward — 36,054 Total deferred tax assets $ 155,369 $ 215,010 Deferred tax liabilities: Real estate inventory, intangibles, other ( 8,414 ) ( 10,632 ) Valuation allowance — ( 36,054 ) Other ( 2,274 ) — Deferred income ( 76,856 ) ( 100,668 ) Total net deferred tax assets $ 67,825 $ 67,656 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equity holders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of William Lyon Homes. All three acquisitions were deemed to be a change in control as defined by Section 382. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchases | The following table summarizes share repurchase activity for the program for the years ended December 31, 2023 and 2022: (Dollars in thousands) 2023 2022 Amount available for repurchase — beginning of period $ 279,138 $ 230,413 Amount cancelled from expired or unused authorizations ( 156,690 ) ( 75,000 ) Additional amount authorized for repurchase (1) 500,000 500,000 Amount repurchased ( 2,814,956 and 14,568,364 shares as of December 31, 2023 ( 127,959 ) ( 376,275 ) Amount available for repurchase — end of period $ 494,489 $ 279,138 (1) Amount in each 2023 and 2022 includes a $ 500.0 million new authorization announced on December 15, 2023 and May 31, 2022, respectively. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table provides information regarding the amount and components of stock-based compensation expense, which is included in General and administrative expenses in the Consolidated statement of operations (in thousands): Year Ended December 31, 2023 2022 2021 Restricted stock (1) $ 21,977 $ 22,464 $ 15,856 Stock options 4,118 4,437 4,087 Total stock compensation $ 26,095 $ 26,901 $ 19,943 (1) Includes compensation expense related to time-based RSUs and PRSUs. |
Summary of Stock Option Activity | The following tables summarize stock option activity for the Plan for each year presented: Year Ended December 31, 2023 2022 2021 Number Of Weighted Average Exercise/ Grant Price Number Of Weighted Average Exercise/ Grant Price Number Of Weighted Average Exercise/ Grant Price Outstanding, beginning 3,273,258 $ 23.35 3,165,612 $ 22.02 3,772,775 $ 19.73 Granted (1) 359,768 35.18 519,799 29.30 712,910 28.64 Exercised ( 1,252,516 ) 21.07 ( 323,625 ) 20.69 ( 1,204,283 ) 19.37 Cancelled/forfeited (1) ( 126,368 ) 28.29 ( 88,528 ) 24.64 ( 115,790 ) 21.53 Balance, ending 2,254,142 $ 26.84 3,273,258 $ 23.35 3,165,612 $ 22.02 Options exercisable, 1,133,734 $ 23.48 1,775,881 $ 20.50 1,407,618 $ 19.12 (1) Excludes the number of options granted and canceled in the same period. As of December 31, (Dollars in thousands) 2023 2022 2021 Unamortized value of unvested stock options (net of estimated forfeitures) $ 7,861 $ 7,712 $ 7,515 Weighted-average period (in years) expense expected to be 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options 6.4 6.6 7.0 Weighted-average remaining contractual life (in years) for options 4.8 5.2 5.3 |
Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants | The following table summarizes the weighted-average assumptions and fair value used for stock options grants: Year Ended December 31, 2023 2022 2021 Expected dividend yield — % — % — % Expected volatility (1) 50.87 % 30.46 % 24.65 % Risk-free interest rate (1) 3.90 % 1.91 % 0.75 % Expected term (in years) (1) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $ 14.50 $ 9.94 $ 7.45 (1) Expected volatilities and expected term are based on the historical information of comparable publicly traded homebuilders. Due to the limited number and homogeneous nature of option holders, the expected term was evaluated using a single group. The risk-free rate is based on the U.S. Treasury yield curve for periods equivalent to the expected term of the options on the grant date. |
Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable | The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2023, 2022 and 2021: As of December 31, (Dollars in thousands) 2023 2022 2021 Aggregate intrinsic value of options outstanding $ 59,758 $ 21,439 $ 38,190 Aggregate intrinsic value of options exercisable $ 33,861 $ 15,385 $ 18,897 |
Summary of Activity of Stock Units | The following table summarizes the activity of our PRSUs: Year Ended December 31, 2023 2022 2021 Balance, beginning 802,379 926,193 930,633 Granted 229,164 272,716 289,308 Vested ( 245,306 ) ( 380,632 ) ( 275,286 ) Forfeited ( 62,114 ) ( 15,898 ) ( 18,462 ) Balance, ending 724,123 802,379 926,193 Year Ended December 31, (Dollars in thousands): 2023 2022 2021 PRSU expense recognized $ 12,619 $ 12,642 $ 8,125 Unamortized value of PRSUs $ 8,122 $ 8,911 $ 8,419 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 The following tables summarize the activity of our RSUs: Year Ended December 31, 2023 2022 2021 Number Of Weighted Average Grant Date Fair Value Number Of (1) Weighted Average Grant Date Fair Value Number Of Weighted Average Grant Date Fair Value Outstanding, beginning 814,834 $ 26.74 804,465 $ 24.73 881,272 $ 21.33 Granted 297,317 35.96 359,993 29.04 370,762 28.62 Vested ( 301,359 ) 27.52 ( 319,595 ) 24.32 ( 390,358 ) 21.28 Forfeited ( 43,576 ) 29.81 ( 30,029 ) 26.90 ( 57,211 ) 23.68 Balance, ending 767,216 $ 29.87 814,834 $ 26.74 804,465 $ 24.73 Year Ended December 31, (Dollars in thousands): 2023 2022 2021 RSU expense recognized $ 9,357 $ 9,822 $ 7,731 Unamortized value of RSUs $ 10,496 $ 10,486 $ 10,561 Weighted-average period expense is expected to be recognized (in years) 1.7 1.7 1.7 |
OPERATING AND REPORTING SEGME_2
OPERATING AND REPORTING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Reporting Segments | Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services |
Summary of Segment Information | Segment information is as follows (in thousands): Year Ended December 31, 2023 East Central West Financial Corporate (1) Total Total revenue $ 2,674,630 $ 1,964,265 $ 2,605,449 $ 160,312 $ 13,175 $ 7,417,831 Gross margin 721,319 495,929 496,318 66,323 3,184 1,783,073 Selling, general and administrative expenses ( 185,324 ) ( 158,807 ) ( 178,828 ) — ( 175,748 ) ( 698,707 ) Net income/(loss) from unconsolidated entities — ( 98 ) ( 217 ) 9,148 ( 76 ) 8,757 Interest and other (expense)/income, net (2) ( 73,205 ) ( 7,608 ) 3,981 — 1,842 ( 74,990 ) Gain on extinguishment of debt, net — — — — ( 295 ) ( 295 ) Income/(loss) before income taxes $ 462,790 $ 329,416 $ 321,254 $ 75,471 $ ( 171,093 ) $ 1,017,838 (1) Includes the activity from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. The East segment includes a legal settlement (refer to Note 14 - Commitments and Contingencies ), The East and West segments include our estimated development liabilities adjustment. (refer to Note 7 - Estimated development liabilities ). Corporate and Unallocated includes our insurance loss (refer to Note 6 - Accrued expenses and other liabilities ) which is partially offset by interest income. Year Ended December 31, 2022 East Central West Financial Corporate (1) Total Total revenue $ 2,739,759 $ 2,024,730 $ 3,228,853 $ 135,491 $ 96,084 $ 8,224,917 Gross margin 718,223 493,006 791,944 51,531 37,662 2,092,366 Selling, general and administrative expenses ( 180,177 ) ( 137,824 ) ( 167,751 ) - ( 157,460 ) ( 643,212 ) Net income/(loss) from unconsolidated entities - ( 55 ) ( 18,445 ) 5,271 ( 955 ) ( 14,184 ) Interest and other (expense)/income, net (2) ( 6,725 ) ( 10,364 ) ( 23,881 ) - ( 15,201 ) ( 56,171 ) Gain on extinguishment of debt, net - - - - 13,876 13,876 Income/(loss) before income taxes $ 531,321 $ 344,763 $ 581,867 $ 56,802 $ ( 122,078 ) $ 1,392,675 (1) Includes the assets from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. Year Ended December 31, 2021 East Central West Financial Corporate (1) Total Total revenue $ 2,423,948 $ 1,741,689 $ 3,126,621 $ 164,615 $ 44,392 $ 7,501,265 Gross margin 522,721 336,896 614,130 62,767 11,367 1,547,881 Selling, general and administrative expenses ( 184,744 ) ( 133,991 ) ( 187,515 ) — ( 162,092 ) ( 668,342 ) Net income/(loss) from unconsolidated entities — 306 2,190 8,644 ( 10 ) 11,130 Interest and other (expense)/income, net (2) ( 923 ) ( 3,103 ) ( 7,228 ) — ( 16,307 ) ( 27,561 ) Income/(loss) before income taxes $ 337,054 $ 200,108 $ 421,577 $ 71,411 $ ( 167,042 ) $ 863,108 (1) Includes the assets from our Build-To-Rent and Urban Form operations. (2) Interest and other (expense)/income, net includes pre-acquisition write-offs of terminated projects. |
Summary of Assets by Segment | As of December 31, 2023 East Central West Financial Services Corporate (1) Total Real estate inventory and land deposits $ 1,909,084 $ 1,181,014 $ 2,658,565 $ — $ — $ 5,748,663 Investments in unconsolidated entities 63,628 125,610 88,219 5,483 63,252 346,192 Other assets 177,739 214,685 616,210 298,451 1,270,147 2,577,232 Total assets $ 2,150,451 $ 1,521,309 $ 3,362,994 $ 303,934 $ 1,333,399 $ 8,672,087 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2022 East Central West Financial Corporate (1) Total Real estate inventory and land deposits $ 1,820,765 $ 1,359,805 $ 2,453,662 $ — $ — $ 5,634,232 Investments in unconsolidated entities 46,629 104,070 80,310 5,283 46,608 282,900 Other assets 216,816 251,727 613,029 431,535 1,040,485 2,553,592 Total assets $ 2,084,210 $ 1,715,602 $ 3,147,001 $ 436,818 $ 1,087,093 $ 8,470,724 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2021 East Central West Financial Corporate (1) Total Real estate inventory and land deposits $ 1,781,948 $ 1,282,024 $ 2,665,084 $ — $ — $ 5,729,056 Investments in unconsolidated entities — 87,600 79,531 4,275 — 171,406 Other assets 196,126 221,906 588,520 559,233 1,261,530 2,827,315 Total assets $ 1,978,074 $ 1,591,530 $ 3,333,135 $ 563,508 $ 1,261,530 $ 8,727,777 Includes the assets from our Build-To-Rent and Urban Form operations |
MORTGAGE HEDGING ACTIVITIES (Ta
MORTGAGE HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summaries of Derivative Instruments | The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2023 December 31, 2022 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 1,489 $ 219,129 $ 2,386 $ 375,030 MBSs ( 5,055 ) 285,000 1,090 504,000 Total $ ( 3,566 ) $ 3,476 (1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved. |
BUSINESS (Details)
BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | |||
Weighted average remaining lease term (in years) | 85 years 1 month 6 days | 86 years | 86 years 10 months 24 days |
Weighted average discount rate | 7.30% | 7.30% | 7.30% |
Inventory impairment charges | $ 11,791,000 | $ 24,870,000 | $ 0 |
Land held for sale impairments | 0 | 0 | 4,663,000 |
Real estate inventory | 5,545,446,000 | 5,370,876,000 | |
Impairment charges on unconsolidated entities | 0 | 14,700,000 | 0 |
Depreciation expense | 9,000,000 | 7,600,000 | 7,500,000 |
Impairment of goodwill | $ 0 | 0 | 0 |
Insurance coverage period | 10 years | ||
Warranty coverage period, workmanship or materials | 1 year | ||
Warranty coverage period, systems | 2 years | ||
Warranty coverage period, structural defects | 10 years | ||
Contribution made to consolidated defined contribution plan | $ 13,200,000 | 13,600,000 | 11,300,000 |
Advertising costs | $ 28,700,000 | 33,900,000 | $ 30,400,000 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 2 years | ||
Derivative term | 30 days | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 5 years | ||
Derivative term | 60 days | ||
Model and sales office improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Buildings | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Buildings | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Building and Leasehold Improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Furniture, fixtures and computer equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Furniture, fixtures and computer equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Employer Matching Contribution Tranche One | |||
Significant Accounting Policies [Line Items] | |||
Defined contribution plan employee matching contribution | 100% | ||
Percentage of contribution based on participant's age and ranges | 4% | ||
Employer Matching Contribution Tranche Two | |||
Significant Accounting Policies [Line Items] | |||
Defined contribution plan employee matching contribution | 50% | ||
Employer Matching Contribution Tranche Two | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of contribution based on participant's age and ranges | 4% | ||
Employer Matching Contribution Tranche Two | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of contribution based on participant's age and ranges | 5% | ||
West | Continuing Operations | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | $ 11,800,000 | $ 24,900,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Lease Details (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Leases | |||
Weighted average discount rate | 5.90% | 5.90% | 5.90% |
Weighted average remaining lease term (in years) | 3 years 9 months 18 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Payments on lease liabilities | $ 28,100 | $ 29,200 | $ 20,700 |
Recorded lease expense | $ 22,800 | $ 25,400 | $ 15,900 |
Finance Leases | |||
Weighted average discount rate | 7.30% | 7.30% | 7.30% |
Weighted average remaining lease term (in years) | 85 years 1 month 6 days | 86 years | 86 years 10 months 24 days |
Payments on lease liabilities | $ 1,316 | $ 1,344 | $ 1,345 |
Recorded lease expense | $ 2,000 | $ 2,000 | $ 2,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Payments | ||
2024 | $ 22,674 | |
2025 | 16,741 | |
2026 | 11,548 | |
2027 | 8,285 | |
2028 | 4,275 | |
Thereafter | 4,309 | |
Total lease payments | 67,832 | |
Less: Interest | 7,096 | |
Present value of lease liabilities | 60,737 | |
Finance Lease Payments | ||
2024 | 1,309 | |
2025 | 1,300 | |
2026 | 1,300 | |
2027 | 1,300 | |
2028 | 1,300 | |
Thereafter | 257,386 | |
Total lease payments | 263,895 | |
Less: Interest | 239,632 | |
Present value of lease liabilities | 24,262 | |
2024 | 23,983 | |
2025 | 18,041 | |
2026 | 12,848 | |
2027 | 9,585 | |
2028 | 5,575 | |
Thereafter | 261,695 | |
Total lease payments | 331,727 | |
Less: Interest | 246,728 | |
Present value of lease liabilities | $ 84,999 | $ 100,174 |
Operating lease, liability, statement of financial position [Extensible List] | Present value of lease liabilities | Present value of lease liabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Present value of lease liabilities | Present value of lease liabilities |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 41,311 | $ 45,872 |
Other assets | 104,210 | 154,279 |
Build-to-Rent assets | 145,405 | 65,241 |
Total prepaid expenses and other assets, net | $ 290,925 | $ 265,392 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 768,929 | $ 1,052,800 | $ 663,026 |
Denominator: | |||
Weighted average shares - basic | 108,424 | 114,982 | 126,077 |
Restricted stock | 925 | 707 | 920 |
Stock options | 796 | 532 | 771 |
Warrants | 251 | ||
Weighted average shares - diluted | 110,145 | 116,221 | 128,019 |
Earnings per common share — basic: | |||
Earnings per common share - basic | $ 7.09 | $ 9.16 | $ 5.26 |
Earnings per common share — diluted: | |||
Earnings per common share - diluted | $ 6.98 | $ 9.06 | $ 5.18 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options and restricted stock units (RSUs) | |||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the calculation of earnings per share | 303,033 | 1,485,064 | 1,030,282 |
REAL ESTATE INVENTORY - Schedul
REAL ESTATE INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||||
Real estate developed and under development | $ 3,855,534 | $ 3,607,227 | ||
Real estate held for development or held for sale | 29,317 | 43,314 | ||
Operating communities | 1,414,528 | 1,506,241 | ||
Capitalized interest | 174,449 | 190,123 | $ 168,670 | $ 163,780 |
Total owned inventory | 5,473,828 | 5,346,905 | ||
Consolidated real estate not owned | 71,618 | 23,971 | ||
Total real estate inventory | 5,545,446 | 5,370,876 | ||
Book Value of Land and Development | ||||
Inventory [Line Items] | ||||
Total land inventory | $ 3,884,851 | $ 3,650,541 |
REAL ESTATE INVENTORY - Sched_2
REAL ESTATE INVENTORY - Schedule of Owned And Controlled Lots (Details) $ in Thousands | Dec. 31, 2023 USD ($) Lot Home | Dec. 31, 2022 USD ($) Lot Home |
Real Estate [Line Items] | ||
Controlled Lots (in lots) | 38,285 | 38,373 |
Total owned and controlled lots | 72,362 | 74,787 |
Homes in inventory | Home | 7,867 | 7,653 |
Land option purchase contracts | ||
Real Estate [Line Items] | ||
Controlled Lots (in lots) | 8,621 | 6,582 |
Land banking arrangements | ||
Real Estate [Line Items] | ||
Controlled Lots (in lots) | 5,818 | 7,369 |
Other controlled lots | ||
Real Estate [Line Items] | ||
Controlled Lots (in lots) | 23,846 | 24,422 |
Owned Lots | ||
Real Estate [Line Items] | ||
Undeveloped | $ | $ 13,418 | $ 14,985 |
Under development | $ | 8,848 | 10,716 |
Finished | $ | 11,811 | 10,713 |
Total land inventory | $ | $ 34,077 | $ 36,414 |
REAL ESTATE INVENTORY - Sched_3
REAL ESTATE INVENTORY - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Interest Costs [Roll Forward] | |||
Interest capitalized — beginning of period | $ 190,123 | $ 168,670 | $ 163,780 |
Interest capitalized | 119,196 | 159,913 | 154,623 |
Interest amortized to cost of home closings | (134,870) | (138,460) | (149,733) |
Interest capitalized — end of period | $ 174,449 | $ 190,123 | $ 168,670 |
INVESTMENTS IN CONSOLIDATED A_3
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Gain on land transfers | $ 0 | $ 14,508 | $ 0 |
Assets | 8,672,087 | 8,470,724 | $ 8,727,777 |
Cash and cash equivalents | 798,568 | 724,488 | |
Fixed assets | 295,121 | 202,398 | |
Liabilities | 3,339,801 | 3,823,865 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 265,200 | 277,600 | |
Cash and cash equivalents | 29,800 | 38,900 | |
Owned real estate inventory | 70,200 | 72,000 | |
Fixed assets | 121,300 | 123,200 | |
Liabilities | $ 133,800 | $ 155,500 |
INVESTMENTS IN CONSOLIDATED A_4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Other assets | $ 2,577,232 | $ 2,553,592 | $ 2,827,315 |
Total assets | 8,672,087 | 8,470,724 | $ 8,727,777 |
Liabilities: | |||
Debt | 2,017,102 | 2,483,861 | |
Total liabilities | 3,339,801 | 3,823,865 | |
Owners’ equity: | |||
Total liabilities and stockholders’ equity | 8,672,087 | 8,470,724 | |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Assets: | |||
Real estate inventory | 952,223 | 749,942 | |
Other assets | 182,517 | 146,770 | |
Total assets | 1,134,740 | 896,712 | |
Liabilities: | |||
Debt | 317,224 | 238,263 | |
Other liabilities | 50,739 | 31,824 | |
Total liabilities | 367,963 | 270,087 | |
Owners’ equity: | |||
TMHC | 346,192 | 282,900 | |
Others | 420,585 | 343,725 | |
Total owners’ equity | 766,777 | 626,625 | |
Total liabilities and stockholders’ equity | $ 1,134,740 | $ 896,712 |
INVESTMENTS IN CONSOLIDATED A_5
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 7,417,831,000 | $ 8,224,917,000 | $ 7,501,265,000 |
Costs and expenses | (5,634,758,000) | (6,132,551,000) | (5,953,384,000) |
Net income from unconsolidated entities | 8,757,000 | (14,184,000) | 11,130,000 |
Distributions to TMHC from unconsolidated entities | 9,230,000 | 5,270,000 | 10,740,000 |
Impairment charges on unconsolidated entities | 0 | 14,700,000 | 0 |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 158,174,000 | 168,695,000 | 130,640,000 |
Costs and expenses | (135,007,000) | (163,488,000) | (97,596,000) |
Net income from unconsolidated entities | 23,166,000 | 5,207,000 | 33,044,000 |
TMHC's share in net income/(loss) of unconsolidated entities | 8,757,000 | (14,184,000) | 11,130,000 |
Distributions to TMHC from unconsolidated entities | $ 10,054,000 | 130,545,000 | $ 42,655,000 |
Impairment charges on unconsolidated entities | $ 14,700,000 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||||
Real estate development costs to complete | $ 46,114 | $ 53,155 | ||
Compensation and employee benefits | 149,095 | 112,294 | ||
Self-insurance and warranty reserves | 184,448 | 161,675 | $ 141,839 | $ 118,116 |
Interest payable | 31,042 | 37,434 | ||
Property and sales taxes payable | 30,887 | 30,046 | ||
Other accruals | 107,488 | 95,649 | ||
Total accrued expenses and other liabilities | 549,074 | $ 490,253 | ||
Property and sales tax payable | $ 7,800 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of changes in warranty reserves | |||
Reserves — beginning of period | $ 161,675 | $ 141,839 | $ 118,116 |
Additions to reserves | 83,226 | 76,643 | 77,827 |
Costs and claims incurred | (80,646) | (76,994) | (67,704) |
Change in estimates to pre-existing reserves | 20,193 | 20,187 | 13,600 |
Reserves — end of period | $ 184,448 | $ 161,675 | $ 141,839 |
ESTIMATED DEVELOPEMENT LIABILIT
ESTIMATED DEVELOPEMENT LIABILITIES - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares | |
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract] | |
Change in estimates resulted in a reduction of the estimated development liabilities | $ | $ 14.8 |
Reduction in diluted share | $ / shares | $ 0.1 |
DEBT - Senior Notes and Other B
DEBT - Senior Notes and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 01, 2023 | Dec. 31, 2022 | Sep. 08, 2022 | Aug. 01, 2019 | Jun. 05, 2019 |
Debt Instrument [Line Items] | ||||||
Principal | $ 2,025,477 | $ 2,494,628 | ||||
Unamortized Debt Issuance (Costs) / Premium | (8,375) | (10,767) | ||||
Carrying Value | 2,017,102 | 2,483,861 | ||||
Facility Amount | 360,000 | 495,000 | ||||
Loans payable and other borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 394,943 | 361,486 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 394,943 | 361,486 | ||||
Mortgage warehouse borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 153,464 | 306,072 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 153,464 | 306,072 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 1,477,070 | 1,827,070 | ||||
Unamortized Debt Issuance (Costs) / Premium | (8,375) | (10,767) | ||||
Carrying Value | $ 1,468,695 | $ 1,816,303 | ||||
Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.625% | 5.625% | 5.625% | |||
Principal | $ 0 | $ 350,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | (628) | ||||
Carrying Value | $ 0 | $ 349,372 | ||||
Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.875% | 5.875% | 5.875% | |||
Principal | $ 500,000 | $ 500,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (2,672) | (3,459) | ||||
Carrying Value | $ 497,328 | $ 496,541 | ||||
Senior Notes | 6.625% Senior Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||||
Principal | $ 27,070 | $ 27,070 | ||||
Unamortized Debt Issuance (Costs) / Premium | 1,022 | 1,310 | ||||
Carrying Value | $ 28,092 | $ 28,380 | ||||
Senior Notes | 5.75% Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.75% | 5.75% | 5.75% | |||
Principal | $ 450,000 | $ 450,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (2,551) | (3,183) | ||||
Carrying Value | $ 447,449 | $ 446,817 | ||||
Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 5.125% | 5.125% | ||||
Principal | $ 500,000 | $ 500,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (4,174) | (4,807) | ||||
Carrying Value | 495,826 | 495,193 | ||||
Line of Credit | $1 Billion Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 0 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 0 | 0 | ||||
Facility Amount | 1,000,000 | 1,000,000 | $ 800,000 | |||
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 0 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 0 | 0 | ||||
Facility Amount | $ 100,000 | $ 100,000 |
DEBT - 2024 Senior Notes (Detai
DEBT - 2024 Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Loss/(gain) on extinguishment of debt, net | $ (295) | $ 13,876 | $ 0 | |
5.625% Senior Notes due 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.625% | 5.625% | 5.625% | |
Loss/(gain) on extinguishment of debt, net | $ 300 | |||
Percentage of principal amount redeemed | 100% |
DEBT - 2027 Senior Notes (Detai
DEBT - 2027 Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Nov. 03, 2022 | Jun. 13, 2022 | Jun. 05, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 10, 2020 | |
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding | $ 1,468,695 | $ 1,816,303 | |||||
Gain on extinguishment of debt, net | $ (295) | $ 13,876 | $ 0 | ||||
Senior Notes | 5.875% Senior Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.875% | 5.875% | 5.875% | ||||
Senior Notes issued amount | $ 500,000 | ||||||
Redemption price percentage | 101% | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 6.625% | 6.625% | |||||
Senior Notes | 6.625% Senior Notes Due 2027 | Tranche One | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100% | ||||||
Debt instrument, repurchase amount | $ 264,100 | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 | Tranche Two | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 97% | ||||||
Debt instrument, repurchase amount | 900 | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 102.208% | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Four | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 101.104% | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Five | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100% | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 issued by TM Communities | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 6.625% | ||||||
Aggregate principal amount outstanding | 265,000 | $ 290,400 | |||||
Gain on extinguishment of debt, net | $ 13,600 | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding | $ 9,600 | ||||||
Debt instrument, repurchase amount | $ 8,000 | ||||||
Gain on extinguishment of debt, net | $ 1,100 | ||||||
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH | Debt Instrument, Redemption, Period One | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 91.25% |
DEBT - 2028 Senior Notes (Detai
DEBT - 2028 Senior Notes (Details) - Senior Notes - 5.75% Notes Due 2028 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 01, 2019 | |
Debt Instrument [Line Items] | |||
Stated interest rate of senior notes | 5.75% | 5.75% | 5.75% |
Senior Notes issued amount | $ 450 | ||
Redemption price percentage | 100% |
DEBT - 2030 Senior Notes (Detai
DEBT - 2030 Senior Notes (Details) - 5.125% Senior Notes Due 2030 - Senior Notes - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jul. 31, 2020 | Jul. 22, 2020 | |
Debt Instrument [Line Items] | |||
Long term debt interest rate | 5.125% | 5.125% | |
Senior Notes issued amount | $ 500 | ||
Redemption price percentage | 100% |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Fiscalquarter Equitycureright | Dec. 31, 2022 USD ($) | Sep. 08, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on line of credit | $ 360,000,000 | $ 495,000,000 | |
Revolving credit facility borrowings | 0 | 0 | |
Letters of credit utilized | 1,300,000,000 | 1,200,000,000 | |
Revolving Credit Facility | $800 Million Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on line of credit | 1,000,000,000 | ||
Revolving Credit Facility | $1 Billion Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on line of credit | 1,000,000,000 | 1,000,000,000 | $ 800,000,000 |
Revolving credit facility borrowings | $ 0 | 0 | |
Maturity date | Mar. 11, 2027 | ||
Unamortized debt issuance costs | $ 2,900,000 | 3,800,000 | |
Letters of credit utilized | 61,200,000 | 69,200,000 | |
Availability under revolving credit facility | $ 938,800,000 | 930,800,000 | |
Maximum capitalization ratio | 60% | ||
Minimum consolidated tangible net worth requirement | $ 3,300,000,000 | ||
Undrawn letters of credit covenant | $ 40,000,000 | ||
Maximum consecutive days for financial covenant | 5 days | ||
Number of consecutive fiscal quarters in which equity cure right can be used twice (in fiscal quarter) | Fiscalquarter | 4 | ||
Maximum number of times company can use equity cure right | Equitycureright | 5 | ||
Revolving Credit Facility | $100 Million Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on line of credit | $ 100,000,000 | 100,000,000 | |
Maturity date | Sep. 17, 2024 | ||
Unamortized debt issuance costs | $ 200,000 | 500,000 | |
Letters of credit utilized | 0 | 0 | |
Availability under revolving credit facility | $ 100,000,000 | $ 100,000,000 |
Debt - Summary of TMHF Mortgage
Debt - Summary of TMHF Mortgage Warehouse Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 153,464 | $ 306,072 |
Facility Amount | 360,000 | 495,000 |
Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 13,477 | 29,066 |
Facility Amount | $ 60,000 | $ 60,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 94,258 | |
Facility Amount | $ 150,000 | |
Collateral | Mortgage Loans | |
Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 25,567 | $ 53,607 |
Facility Amount | $ 100,000 | $ 75,000 |
Collateral | Mortgage Loans | Mortgage Loans & Pledged Cash |
Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 56,745 | $ 83,259 |
Facility Amount | $ 100,000 | $ 140,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 57,675 | $ 45,882 |
Facility Amount | $ 100,000 | $ 70,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.70% | 1.70% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.65% | 1.65% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.50% | 1.50% |
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse E | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.60% | 1.60% |
Bloomberg Short Term Bank Yield Index (BSBY) [Member] | Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.65% | |
Mortgage loans | ||
Line of Credit Facility [Line Items] | ||
Mortgage loans held for sale | $ 193,300 | $ 346,400 |
DEBT - Loans Payable and Other
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payable and Other Borrowings | Dec. 31, 2023 | Dec. 31, 2022 |
Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 0% | 0% |
Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 9% | 8% |
DEBT - Future Minimum Principal
DEBT - Future Minimum Principal Payments on Total Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | ||
2024 | $ 357,962 | |
2025 | 103,790 | |
2026 | 64,904 | |
2027 | 547,456 | |
2028 | 451,263 | |
Thereafter | 500,102 | |
Total debt | $ 2,025,477 | $ 2,494,628 |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 01, 2023 | Dec. 31, 2022 | Jun. 05, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Facility Amount | $ 360,000 | $ 495,000 | ||
Senior Notes | 5.625% Senior Notes due 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate of senior notes | 5.625% | 5.625% | 5.625% | |
Senior Notes | 5.875% Senior Notes due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate of senior notes | 5.875% | 5.875% | 5.875% | |
Senior Notes | 6.625% Senior Notes Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||
Senior Notes | 5.75% Senior Notes due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate of senior notes | 5.75% | 5.75% | ||
Senior Notes | 5.125% Senior Notes due 2030 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate of senior notes | 5.125% | 5.125% | ||
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Facility Amount | $ 100,000 | $ 100,000 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans held for sale | 193,344 | 346,364 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Debt | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 1,090 | |||
Derivative liabilities | (5,055) | |||
Carrying Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 153,464 | 306,072 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 394,943 | 361,486 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 0 | 349,372 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 497,328 | 496,541 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 28,092 | 28,380 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 447,449 | 446,817 | ||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 495,826 | 495,193 | ||
Carrying Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 1,489 | 2,386 | ||
Carrying Value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity Security Investment | 460 | 460 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans held for sale | 193,344 | 346,364 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Debt | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 1,090 | |||
Derivative liabilities | (5,055) | |||
Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 153,464 | 306,072 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 394,943 | 361,486 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 0 | 347,375 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 502,500 | 480,060 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 26,529 | 26,123 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 451,571 | 421,358 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | 483,690 | 434,330 | ||
Fair Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 1,489 | 2,386 | ||
Fair Value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity Security Investment | $ 460 | $ 460 |
FAIR VALUE DISCLOSURES - Summ_2
FAIR VALUE DISCLOSURES - Summary of Assets Measure on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | $ 19,263 | $ 48,360 |
FAIR VALUE DISCLOSURES - Summ_3
FAIR VALUE DISCLOSURES - Summary of Assets Measure on a Nonrecurring Basis (Parenthetical) (Details) | Dec. 31, 2023 USD ($) |
Nonrecurring | Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Inventories additional impairment | $ 0 |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 196,464 | $ 203,119 | $ 73,087 |
State | 51,009 | 48,134 | 23,493 |
Current tax provision | 247,473 | 251,253 | 96,580 |
Deferred: | |||
Federal | (1,003) | 66,667 | 75,044 |
State | 1,627 | 18,508 | 9,117 |
Deferred tax provision | 624 | 85,175 | 84,161 |
Total income tax provision | $ 248,097 | $ 336,428 | $ 180,741 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21% | 21% | 21% |
State income taxes (net of federal benefit) | 4.10% | 3.90% | 3.80% |
Non-controlling interest | (0.30%) | (0.10%) | (0.60%) |
Uncertain tax positions | 0% | 0% | (0.20%) |
Energy tax credits | 0.40% | (1.30%) | (1.40%) |
Disallowed compensation expense | 0.60% | 0.40% | 0.20% |
Excess stock compensation benefit | (0.50%) | 0% | |
Impact of CARES Act | 0% | 0% | (1.30%) |
Other | (0.10%) | 0.30% | (0.60%) |
Effective Rate | 24.40% | 24.20% | 20.90% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||
Deferred tax assets, valuation allowance | $ 0 | $ 36,054,000 | |
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
Federal NOL Carryforwards | |||
Income Tax [Line Items] | |||
NOL carryforwards | $ 184,600,000 | ||
Future taxable income offset period | 20 years | ||
Future taxable income offset period expiration year | 2029 | ||
State NOL Carry Forwards | |||
Income Tax [Line Items] | |||
Future taxable income offset period | 20 years | ||
Future taxable income offset period expiration year | 2026 |
INCOME TAXES - Summary of Compo
INCOME TAXES - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Real estate inventory | $ 41,660,000 | $ 62,990,000 |
Accruals and reserves | 58,864,000 | 48,391,000 |
Other | 0 | 5,425,000 |
Net operating losses | 54,845,000 | 62,150,000 |
Capital loss carryforward | 0 | 36,054,000 |
Total deferred tax assets | 155,369,000 | 215,010,000 |
Deferred tax liabilities: | ||
Real estate inventory, intangibles, other | (8,414,000) | (10,632,000) |
Valuation allowance | 0 | (36,054,000) |
Other | (2,274,000) | 0 |
Deferred Income | (76,856,000) | (100,668,000) |
Total net deferred tax assets | $ 67,825,000 | $ 67,656,000 |
INCOME TAXES - Schedule of Re_2
INCOME TAXES - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Reconciliation of Unrecognized Tax Benefits | ||
Beginning of the period | $ 0 | $ 0 |
End of the period | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 16, 2022 | Dec. 31, 2023 | Dec. 15, 2023 | Dec. 31, 2022 | May 31, 2022 |
Equity [Abstract] | |||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |||
Preferred stock, shares authorized (in shares) | 50,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.00001 | ||||
Stock repurchase program, authorized amount | $ 500 | $ 500 | |||
Percentage of execise tax on net repurchase of stock | 1% |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2023 | May 31, 2022 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | |||||
Amount available for repurchase - beginning of period | $ 279,138 | $ 230,413 | |||
Amount cancelled from expired or unused authorizations | (156,690) | (75,000) | |||
Additional amount authorized for repurchase | 500,000 | 500,000 | |||
Amount repurchased (2,814,956 and 14,568,364 shares as of December 31, 2023 and December 31, 2022), respectively | (127,959) | (376,275) | $ (281,420) | ||
Amount available for repurchase — end of period | $ 494,489 | $ 279,138 | $ 230,413 | ||
Repurchase of common stock (in shares) | 2,814,956 | 14,568,364 | |||
Stock repurchase program, authorized amount | $ 500,000 | $ 500,000 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate unamortized outstanding stock based compensation | $ 26.5 | $ 27.1 | $ 26.5 |
Aggregate intrinsic value exercised based on market price (in dollars per share) | $ 53.35 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
2013 Omnibus Equity Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant (in shares) | 5,116,214 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 26,095 | $ 26,901 | $ 19,943 |
Employee Stock Option | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | 4,118 | 4,437 | 4,087 |
Restricted Stock | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 21,977 | $ 22,464 | $ 15,856 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options, Number of Options | |||
Outstanding, Beginning balance (in shares) | 3,273,258 | 3,165,612 | 3,772,775 |
Granted (in shares) | 359,768 | 519,799 | 712,910 |
Exercised (in shares) | (1,252,516) | (323,625) | (1,204,283) |
Cancelled (in shares) | (126,368) | (88,528) | (115,790) |
Outstanding, Ending balance (in shares) | 2,254,142 | 3,273,258 | 3,165,612 |
Options exercisable (in shares) | 1,133,734 | 1,775,881 | 1,407,618 |
Stock Options, Weighted Average Exercise Price | |||
Outstanding, Beginning balance (in dollars per share) | $ 23.35 | $ 22.02 | $ 19.73 |
Granted (in dollars per share) | 35.18 | 29.3 | 28.64 |
Exercised (in dollars per share) | 21.07 | 20.69 | 19.37 |
Cancelled (in dollars per share) | 28.29 | 24.64 | 21.53 |
Outstanding, Ending balance (in dollars per share) | 26.84 | 23.35 | 22.02 |
Weighted Average Exercise Price, options exercisable (in dollars per share) | $ 23.48 | $ 20.5 | $ 19.12 |
Unamortized value of unvested stock options (net of estimated forfeitures) (in dollars per share) | $ 7,861 | $ 7,712 | $ 7,515 |
Weighted-average period (in years) expense expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Weighted-average remaining contractual (in years) life for options outstanding | 6 years 4 months 24 days | 6 years 7 months 6 days | 7 years |
Weighted-average remaining contractual life (in years) for options exercisable | 4 years 9 months 18 days | 5 years 2 months 12 days | 5 years 3 months 18 days |
STOCK BASED COMPENSATION - Su_3
STOCK BASED COMPENSATION - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0% | 0% | 0% |
Expected volatility | 50.87% | 30.46% | 24.65% |
Risk-free interest rate | 3.90% | 1.91% | 0.75% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average fair value of options granted during the period (in dollars per share) | $ 14.5 | $ 9.94 | $ 7.45 |
STOCK BASED COMPENSATION - Su_4
STOCK BASED COMPENSATION - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Share-Based Payment Arrangement [Abstract] | |||
Aggregate intrinsic value of options outstanding | $ 59,758 | $ 21,439 | $ 38,190 |
Aggregate intrinsic value of options exercisable | $ 33,861 | $ 15,385 | $ 18,897 |
STOCK BASED COMPENSATION - Su_5
STOCK BASED COMPENSATION - Summary of Activity of Performance Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PRSU Activity, Number of Awards | |||
Weighted-average period expense is expected to be recognized (in years) | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Performance Restricted Stock Units | |||
PRSU Activity, Number of Awards | |||
Beginning balance (in shares) | 802,379 | 926,193 | 930,633 |
Granted (in shares) | 229,164 | 272,716 | 289,308 |
Vested (in shares) | (245,306) | (380,632) | (275,286) |
Forfeited (in shares) | (62,114) | (15,898) | (18,462) |
Ending balance (in shares) | 724,123 | 802,379 | 926,193 |
PRSU expense recognized | $ 12,619 | $ 12,642 | $ 8,125 |
Unamortized value of PRSUs | $ 8,122 | $ 8,911 | $ 8,419 |
Weighted-average period expense is expected to be recognized (in years) | 1 year 9 months 18 days | 1 year 9 months 18 days | 1 year 9 months 18 days |
STOCK BASED COMPENSATION - Su_6
STOCK BASED COMPENSATION - Summary of Activity of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Weighted-average period expense is expected to be recognized (in years) | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Non-performance Restricted Stock Units (RSUs) | |||
RSU Activity, Number of Awards | |||
Beginning balance (in shares) | 814,834 | 804,465 | 881,272 |
Granted (in shares) | 297,317 | 359,993 | 370,762 |
Vested (in shares) | (301,359) | (319,595) | (390,358) |
Forfeited (in shares) | (43,576) | (30,029) | (57,211) |
Ending balance (in shares) | 767,216 | 814,834 | 804,465 |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Outstanding, Beginning balance (in dollars per share) | $ 26.74 | $ 24.73 | $ 21.33 |
Granted (in dollars per share) | 35.96 | 29.04 | 28.62 |
Vested (in dollars per share) | 27.52 | 24.32 | 21.28 |
Forfeited (in dollars per share) | 29.81 | 26.9 | 23.68 |
Outstanding, Ending balance (in dollars per share) | $ 29.87 | $ 26.74 | $ 24.73 |
RSU expense recognized | $ 9,357 | $ 9,822 | $ 7,731 |
Unamortized value of RSUs | $ 10,496 | $ 10,486 | $ 10,561 |
Weighted-average period expense is expected to be recognized (in years) | 1 year 8 months 12 days | 1 year 8 months 12 days | 1 year 8 months 12 days |
OPERATING AND REPORTING SEGME_3
OPERATING AND REPORTING SEGMENTS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
OPERATING AND REPORTING SEGME_4
OPERATING AND REPORTING SEGMENTS - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | $ 7,417,831 | $ 8,224,917 | $ 7,501,265 |
Gross margin | 1,783,073 | 2,092,366 | 1,547,881 |
Selling, general and administrative expense | (698,707) | (643,212) | (668,342) |
Net income/(loss) from unconsolidated entities | 8,757 | (14,184) | 11,130 |
Interest and other (expense)/income, net | (74,990) | (56,171) | (27,561) |
Gain on extinguishment of debt, net | (295) | 13,876 | 0 |
Income before income taxes | 1,017,838 | 1,392,675 | 863,108 |
Corporate and Unallocated | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 13,175 | 96,084 | 44,392 |
Gross margin | 3,184 | 37,662 | 11,367 |
Selling, general and administrative expense | (175,748) | (157,460) | (162,092) |
Net income/(loss) from unconsolidated entities | (76) | (955) | (10) |
Interest and other (expense)/income, net | 1,842 | (15,201) | (16,307) |
Gain on extinguishment of debt, net | (295) | 13,876 | |
Income before income taxes | (171,093) | (122,078) | (167,042) |
East | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 2,674,630 | 2,739,759 | 2,423,948 |
Gross margin | 721,319 | 718,223 | 522,721 |
Selling, general and administrative expense | (185,324) | (180,177) | (184,744) |
Net income/(loss) from unconsolidated entities | 0 | 0 | 0 |
Interest and other (expense)/income, net | (73,205) | (6,725) | (923) |
Gain on extinguishment of debt, net | 0 | 0 | |
Income before income taxes | 462,790 | 531,321 | 337,054 |
Central | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 1,964,265 | 2,024,730 | 1,741,689 |
Gross margin | 495,929 | 493,006 | 336,896 |
Selling, general and administrative expense | (158,807) | (137,824) | (133,991) |
Net income/(loss) from unconsolidated entities | (98) | (55) | 306 |
Interest and other (expense)/income, net | (7,608) | (10,364) | (3,103) |
Gain on extinguishment of debt, net | 0 | 0 | |
Income before income taxes | 329,416 | 344,763 | 200,108 |
West | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 2,605,449 | 3,228,853 | 3,126,621 |
Gross margin | 496,318 | 791,944 | 614,130 |
Selling, general and administrative expense | (178,828) | (167,751) | (187,515) |
Net income/(loss) from unconsolidated entities | (217) | (18,445) | 2,190 |
Interest and other (expense)/income, net | 3,981 | (23,881) | (7,228) |
Gain on extinguishment of debt, net | 0 | 0 | |
Income before income taxes | 321,254 | 581,867 | 421,577 |
Financial Services | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total revenue | 160,312 | 135,491 | 164,615 |
Gross margin | 66,323 | 51,531 | 62,767 |
Selling, general and administrative expense | 0 | 0 | 0 |
Net income/(loss) from unconsolidated entities | 9,148 | 5,271 | 8,644 |
Interest and other (expense)/income, net | 0 | 0 | 0 |
Gain on extinguishment of debt, net | 0 | 0 | |
Income before income taxes | $ 75,471 | $ 56,802 | $ 71,411 |
OPERATING AND REPORTING SEGME_5
OPERATING AND REPORTING SEGMENTS - Assets from Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | $ 5,748,663 | $ 5,634,232 | $ 5,729,056 |
Investments in unconsolidated entities | 346,192 | 282,900 | 171,406 |
Other assets | 2,577,232 | 2,553,592 | 2,827,315 |
Total assets | 8,672,087 | 8,470,724 | 8,727,777 |
Corporate and Unallocated | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 63,252 | 46,608 | 0 |
Other assets | 1,270,147 | 1,040,485 | 1,261,530 |
Total assets | 1,333,399 | 1,087,093 | 1,261,530 |
East | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,909,084 | 1,820,765 | 1,781,948 |
Investments in unconsolidated entities | 63,628 | 46,629 | 0 |
Other assets | 177,739 | 216,816 | 196,126 |
Total assets | 2,150,451 | 2,084,210 | 1,978,074 |
Central | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,181,014 | 1,359,805 | 1,282,024 |
Investments in unconsolidated entities | 125,610 | 104,070 | 87,600 |
Other assets | 214,685 | 251,727 | 221,906 |
Total assets | 1,521,309 | 1,715,602 | 1,591,530 |
West | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 2,658,565 | 2,453,662 | 2,665,084 |
Investments in unconsolidated entities | 88,219 | 80,310 | 79,531 |
Other assets | 616,210 | 613,029 | 588,520 |
Total assets | 3,362,994 | 3,147,001 | 3,333,135 |
Financial Services | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 5,483 | 5,283 | 4,275 |
Other assets | 298,451 | 431,535 | 559,233 |
Total assets | $ 303,934 | $ 436,818 | $ 563,508 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 02, 2021 | |
Loss Contingencies [Line Items] | |||
Outstanding letters of credit | $ 1,300 | $ 1,200 | |
Legal accruals | 26.2 | 20.6 | |
Plaintiffs | |||
Loss Contingencies [Line Items] | |||
Payment for legal judgment | 64.7 | ||
Land Option Purchase Contracts And Land Banking Arrangements | |||
Loss Contingencies [Line Items] | |||
Purchase Price | $ 1,500 | $ 1,500 | |
Maximum | |||
Loss Contingencies [Line Items] | |||
Loss contingency | $ 35 |
MORTGAGE HEDGING ACTIVITIES (De
MORTGAGE HEDGING ACTIVITIES (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Fair Value | $ 3,476 | |
Fair Value | $ (3,566) | |
Total commitments to originate loans | 242,600 | 419,600 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 1,489 | 2,386 |
Notional Amount | 219,129 | 375,030 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | 1,090 | |
Fair Value | (5,055) | |
Notional Amount | $ 285,000 | $ 504,000 |