Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Feb. 27, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TMHC | ||
Entity Registrant Name | Taylor Morrison Home Corp | ||
Entity Central Index Key | 1562476 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $737,350,395 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 33,071,755 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 89,200,063 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $234,217 | $193,518 |
Restricted cash | 1,310 | 3,807 |
Real estate inventory: | ||
Owned inventory | 2,511,623 | 1,993,985 |
Real estate not owned under option agreements | 6,698 | 18,595 |
Total real estate inventory | 2,518,321 | 2,012,580 |
Land deposits | 34,544 | 38,011 |
Mortgages receivable | 191,140 | 95,718 |
Prepaid expenses and other assets, net | 89,210 | 79,921 |
Other receivables, net | 85,274 | 50,592 |
Investments in unconsolidated entities | 110,291 | 21,435 |
Deferred tax assets, net | 258,190 | 242,656 |
Property and equipment, net | 5,337 | 4,502 |
Intangible assets, net | 5,459 | 9,325 |
Goodwill | 23,375 | 23,375 |
Assets of discontinued operations | 576,445 | 663,118 |
Total assets | 4,133,113 | 3,438,558 |
Liabilities | ||
Accounts payable | 122,466 | 101,732 |
Accrued expenses and other liabilities | 200,556 | 162,044 |
Income taxes payable | 50,096 | 35,512 |
Customer deposits | 70,465 | 62,033 |
Senior notes | 1,388,840 | 1,039,497 |
Loans payable and other borrowings | 147,516 | 143,341 |
Revolving credit facility borrowings | 40,000 | |
Mortgage borrowings | 160,750 | 74,892 |
Liabilities attributable to consolidated option agreements | 6,698 | 18,595 |
Liabilities of discontinued operations | 168,565 | 256,011 |
Total liabilities | 2,355,952 | 1,893,657 |
COMMITMENTS AND CONTINGENCIES (Note 20) | ||
Stockholders' Equity | ||
Preferred stock, $0.00001 par value, 50,000,000 shares authorized, no shares issued and outstanding as of December 31, 2014 and December 31, 2013 | ||
Additional paid-in capital | 374,358 | 372,789 |
Retained earnings | 114,948 | 43,479 |
Accumulated other comprehensive loss | -10,910 | -452 |
Total stockholders' equity attributable to Taylor Morrison Home Corporation | 478,397 | 415,817 |
Non-controlling interests - joint ventures | 6,528 | 7,236 |
Non-controlling interests - Principal Equityholders | 1,292,236 | 1,121,848 |
Total stockholders' equity | 1,777,161 | 1,544,901 |
Total liabilities and stockholders' equity | 4,133,113 | 3,438,558 |
Common Class A [Member] | ||
Stockholders' Equity | ||
Common stock | ||
Common Class B [Member] | ||
Stockholders' Equity | ||
Common stock | $1 | $1 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, shares outstanding | 122,287,956 | |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 33,060,540 | 32,857,800 |
Common stock, shares outstanding | 33,060,540 | 32,857,800 |
Common Class B [Member] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 89,227,416 | 89,451,164 |
Common stock, shares outstanding | 89,227,416 | 89,451,164 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Statement [Abstract] | |||||
Home closings revenue, net | $2,619,558 | $1,857,950 | $986,198 | ||
Land closings revenue | 53,381 | 27,760 | 33,123 | ||
Mortgage operations revenue | 35,493 | 30,371 | 21,861 | ||
Total revenues | 2,708,432 | 1,916,081 | 1,041,182 | ||
Cost of home closings | 2,082,819 | 1,457,454 | 795,979 | ||
Cost of land closings | 39,696 | 26,316 | 27,296 | ||
Mortgage operations expenses | 19,671 | 16,446 | 11,266 | ||
Total cost of revenues | 2,142,186 | 1,500,216 | 834,541 | ||
Gross margin | 566,246 | 415,865 | 206,641 | ||
Sales, commissions and other marketing costs | 168,897 | 127,419 | 70,398 | ||
General and administrative expenses | 81,153 | 77,198 | 41,867 | ||
Equity in income of unconsolidated entities | -5,405 | -2,895 | -1,214 | ||
Interest expense (income), net | 1,160 | 842 | -758 | ||
Other expense, net | 18,447 | 2,842 | 3,704 | ||
Loss on extinguishment of debt | 10,141 | 7,953 | |||
Indemnification and transaction expenses | 195,773 | 13,034 | |||
Income before income taxes | 301,994 | 4,545 | 71,657 | ||
Income tax provision (benefit) | 76,395 | -23,810 | -284,298 | ||
Net income from continuing operations | 225,599 | 28,355 | 355,955 | ||
Income from discontinued operations - net of tax | 41,902 | 66,513 | 74,893 | ||
Net income before allocation to non-controlling interests | 267,501 | 94,868 | 430,848 | ||
Net (income) loss attributable to non-controlling interests - joint ventures | -1,648 | 131 | -28 | ||
Net income before non-controlling interests - Principal Equityholders | 265,853 | 94,999 | 430,820 | ||
Net (income) loss from continuing operations attributable to non-controlling interests - Principal Equityholders | -163,790 | 1,442 | -355,927 | ||
Net income from discontinued operations attributable to non-controlling interests - Principal Equityholders | -30,594 | -51,021 | -74,893 | ||
Net income available to Taylor Morrison Home Corporation | $71,469 | $45,420 | |||
Earnings per common share - basic (1): | |||||
Income from continuing operations | $1.83 | [1] | $0.91 | [1] | |
Discontinued operations - net of tax | $0.34 | [1] | $0.47 | [1] | |
Net income available to Taylor Morrison Home Corporation | $2.17 | $1.38 | |||
Earnings per common share - diluted (1): | |||||
Income from continuing operations | $1.83 | [1] | $0.91 | [1] | |
Discontinued operations - net of tax | $0.34 | [1] | $0.47 | [1] | |
Net income available to Taylor Morrison Home Corporation | $2.17 | $1.38 | |||
Weighted average number of shares of common stock (1): | |||||
Basic | 32,937 | [1] | 32,840 | [1] | |
Diluted | 122,313 | [1] | 122,319 | [1] | |
[1] | Prior to the Reorganization Transactions on April 9, 2013 and the IPO no common shares were outstanding. See Note 13 - Stockholders' Equity - Reorganization Transactions for additional information. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income before non-controlling interests, net of tax | $267,501 | $94,868 | $430,848 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of tax | -35,421 | -16,727 | -1,073 | |
Post-retirement benefits adjustments, net of tax | -3,295 | 7,483 | -3,227 | |
Other comprehensive income (loss) net of tax | -38,716 | -9,244 | [1] | -4,300 |
Comprehensive income | 228,785 | 85,624 | 426,548 | |
Comprehensive income available to Taylor Morrison Home Corporation | 61,011 | 45,879 | 426,576 | |
Joint Ventures [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Comprehensive (income) loss attributable to non-controlling interests - joint ventures/Principal Equityholders | -1,648 | 131 | 28 | |
Principal Equityholders [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Comprehensive (income) loss attributable to non-controlling interests - joint ventures/Principal Equityholders | ($166,126) | ($39,876) | ||
[1] | The difference between other comprehensive income reported on this schedule and other comprehensive income reported in the Consolidated Statement of Stockholders' Equity is the result of deferred tax assets on post retirement benefits recorded in net income in the current year. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Net Owner's Equity [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | Non-controlling Interest [Member] | Non-controlling Interest [Member] | |
In Thousands, except Share data | USD ($) | Common Class A [Member] | Common Class B [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Joint Ventures [Member] | Principal Equityholders [Member] | |
USD ($) | USD ($) | USD ($) | |||||||||
Balance at Dec. 31, 2011 | $628,565 | $649,209 | ($30,065) | $9,421 | |||||||
Net income (loss) | 430,848 | 430,820 | 28 | ||||||||
Other comprehensive (loss) income | -4,300 | -4,300 | |||||||||
Stock based compensation | 1,975 | 1,975 | |||||||||
Distributions to non-controlling interests | -1,800 | -1,800 | |||||||||
Contribution of debt in exchange for equity | 146,633 | 146,633 | |||||||||
Non-controlling interest of acquired entity | 241 | 241 | |||||||||
Issuance of partnership units | 2,413 | 2,413 | |||||||||
Issuance of partnership units, shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Balance at Dec. 31, 2012 | 1,204,575 | 1,231,050 | -34,365 | 7,890 | |||||||
Establish non-controlling interest on April 12, 2013 | -1,231,050 | 34,365 | 1,196,685 | ||||||||
Issuance of Common Stock, net of offering costs | 668,598 | 668,598 | |||||||||
Issuance of Common Stock, net of offering costs, shares | 32,857,800 | 112,784,964 | |||||||||
Issuance of Common Stock, net of offering costs | 1 | 1 | |||||||||
Repurchase of New TMM Units and corresponding number of Class B Common Stock | -485,782 | -485,782 | |||||||||
Repurchase of New TMM Units and corresponding number of Class B Common Stock, shares | -23,333,800 | ||||||||||
Offering costs capitalized to equity | -10,775 | -10,775 | |||||||||
Allocation of dilution on IPO Class A Common Stock | 297,600 | -297,591 | 297,591 | ||||||||
Net income (loss) | 94,868 | 45,420 | -131 | 49,579 | |||||||
Other comprehensive (loss) income | -9,244 | [1] | -452 | 3,496 | -8,792 | ||||||
Stock based compensation | 87,318 | 1,782 | 85,536 | ||||||||
Distributions to non-controlling interests | -417 | -417 | |||||||||
Non-controlling interest of acquired entity | -106 | -106 | |||||||||
Dividends | -4,135 | -1,941 | -2,194 | ||||||||
Balance at Dec. 31, 2013 | 1,544,901 | 1 | 372,789 | 43,479 | -452 | 7,236 | 1,121,848 | ||||
Balance, shares at Dec. 31, 2013 | 32,857,800 | 89,451,164 | |||||||||
Net income (loss) | 267,501 | 71,469 | 1,648 | 194,384 | |||||||
Other comprehensive (loss) income | -38,716 | -10,458 | -28,258 | ||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock | 196,024 | -196,024 | |||||||||
Cancellation of forfeited New TMM Units and corresponding number of Class B Common Stock | -27,724 | ||||||||||
Issuance of restricted stock units | 6,716 | ||||||||||
Stock based compensation | 5,831 | 1,569 | 4,262 | ||||||||
Distributions to non-controlling interests | -2,356 | -2,356 | |||||||||
Balance at Dec. 31, 2014 | $1,777,161 | $1 | $374,358 | $114,948 | ($10,910) | $6,528 | $1,292,236 | ||||
Balance, shares at Dec. 31, 2014 | 33,060,540 | 89,227,416 | |||||||||
[1] | The difference between other comprehensive income reported on this schedule and other comprehensive income reported in the Consolidated Statement of Stockholders' Equity is the result of deferred tax assets on post retirement benefits recorded in net income in the current year. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | $267,501 | $94,868 | $430,848 | |||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||
Equity in income of unconsolidated entities | -26,735 | -37,563 | -22,964 | |||
Stock compensation expense | 5,831 | 87,318 | 1,975 | |||
Distributions of earnings from unconsolidated entities | 32,966 | 30,136 | 36,746 | |||
Depreciation and amortization | 4,090 | 3,462 | 4,370 | |||
Contingent consideration | 13,532 | 2,258 | ||||
Loss on extinguishment of debt | 10,141 | 7,853 | ||||
Deferred income taxes | -17,703 | 30,662 | -278,880 | |||
Changes in operating assets and liabilities: | ||||||
Real estate inventory and land deposits | -310,550 | -450,147 | -331,116 | |||
Receivables, prepaid expenses and other assets | -136,636 | -5,183 | -109,970 | |||
Customer deposits | -11,378 | 15,795 | 16,845 | |||
Accounts payable, accrued expenses and other liabilities | 33,947 | 33,129 | 6,089 | |||
Income taxes payable | 11,445 | 33,191 | 23,735 | |||
Net cash used in operating activities | -133,690 | -151,933 | -214,469 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property and equipment | -3,723 | -3,786 | -2,753 | |||
Business acquisitions, net of cash acquired | -114,571 | |||||
Distribution from unconsolidated entities | 1,728 | 8,840 | ||||
Decrease (increase) in restricted cash | 10,743 | -12,211 | -8,645 | |||
Investments of capital into unconsolidated entities | -98,199 | -68,634 | -12,967 | |||
Net cash used in investing activities | -89,451 | -75,791 | -138,936 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Net proceeds from the issuance of Class A common stock | 668,598 | |||||
Purchase of New TMM Units and corresponding number of shares of Class B Common Stock | -485,782 | |||||
Borrowings on line of credit related to mortgage borrowings | 658,708 | 703,536 | 525,745 | |||
Repayment on line of credit related to mortgage borrowing | -572,850 | -709,004 | -478,115 | |||
Proceeds from loans payable and other borrowings | 41,990 | 45,289 | 41,598 | |||
Repayments of loans payable and other borrowings | -194,660 | -182,977 | -69,028 | |||
Borrowings on revolving credit facility | 253,000 | 907,000 | 50,000 | |||
Repayments on revolving credit facility | -213,000 | -957,000 | ||||
Proceeds from the issuance of senior notes | 350,000 | 550,000 | 675,000 | |||
Repayments on senior notes | -189,608 | -350,000 | ||||
Payment of deferred financing costs | -6,255 | -9,680 | -20,282 | |||
Payment of contingent consideration | -5,250 | |||||
Distributions to non-controlling interests - joint ventures | -2,356 | -418 | -1,800 | |||
Intercompany borrowings | -7 | |||||
Equity (distributions) contributions | -2,000 | 2,413 | ||||
Net cash provided by financing activities | 309,327 | 337,947 | 375,531 | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -13,162 | -21,644 | -881 | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 73,024 | 88,579 | 21,245 | |||
CASH AND CASH EQUIVALENTS - Beginning of period | 389,181 | [1],[2] | 300,602 | [1] | 279,322 | [1] |
CASH AND CASH EQUIVALENTS - End of period | 462,205 | [2] | 389,181 | [1],[2] | 300,602 | [1] |
CASH AND CASH EQUIVALENTS - End of period - 2012 | 300,567 | |||||
Income taxes paid, net | -99,071 | -24,354 | -45,088 | |||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||
Conversion of Sponsor loans payable to additional Class A Units | 146,663 | |||||
Conversion of joint venture loans receivable for equity in joint venture | 36,855 | |||||
Loans payable and liabilities assumed related to business acquisition | 54,926 | |||||
(Decrease) increase in loans payable issued to sellers in connection with land purchase contracts | -88,893 | 226,441 | 134,001 | |||
Decrease in income taxes payable | $22 | $102,422 | $15,233 | |||
[1] | Cash and cash equivalents at the beginning of the period ended December 31, 2013 includes approximately $35,000 of TMHC cash that was not consolidated with TMM and included in the cash balance at December 31, 2012. | |||||
[2] | Cash and cash equivalents shown here include the cash related to Monarch. For the years ended December 31, 2014, 2013 and 2012, cash held at Monarch was $227,988, $195,663 and $189,519, respectively. |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash and cash equivalents | $462,205,000 | [1] | $389,181,000 | [1],[2] | $300,602,000 | [2] |
TMM Holdings Limited Partnership [Member] | ||||||
Cash and cash equivalents | 35,000 | |||||
Monarch [Member] | ||||||
Cash and cash equivalents | $227,988 | $195,663 | $189,519 | |||
[1] | Cash and cash equivalents shown here include the cash related to Monarch. For the years ended December 31, 2014, 2013 and 2012, cash held at Monarch was $227,988, $195,663 and $189,519, respectively. | |||||
[2] | Cash and cash equivalents at the beginning of the period ended December 31, 2013 includes approximately $35,000 of TMHC cash that was not consolidated with TMM and included in the cash balance at December 31, 2012. |
Business
Business | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business | 1. BUSINESS |
Organization and Description of the Business — Taylor Morrison Home Corporation (referred to herein as “TMHC,” “we,” “our,” “the Company” and “us”), through its divisions and segments, owns and operates a residential homebuilding business and is a developer of lifestyle communities. We currently operate in Arizona, California, Colorado, Florida and Texas. Our homes appeal to entry-level, move-up, 55+ and luxury homebuyers. The Company operates under our Taylor Morrison and Darling Homes brands. Our business has ten homebuilding operating divisions, and a mortgage operations division, which are organized into three reportable segments: East, West, and Mortgage. The communities in our East and West segment offer single family attached and/or detached homes. We are the general contractors for all real estate projects and retain subcontractors for home construction and site development. Our Mortgage Operations reportable segment provides financial services to customers in the United States through our wholly owned mortgage subsidiary, operating as Taylor Morrison Home Funding, LLC (“TMHF”). | |
On July 13, 2011, TMM Holdings Limited Partnership (“TMM Holdings”), an entity formed by a consortium comprised of affiliates of TPG Global, LLC (the “TPG Entities” or “TPG”), investment funds managed by Oaktree Capital Management, L.P. (“Oaktree”) or their respective subsidiaries (the “Oaktree Entities”), and affiliates of JH Investments, Inc. (the “JH Entities” and together with the TPG Entities and Oaktree Entities, the “Principal Equityholders”), acquired (the “Acquisition”) our predecessors, Taylor Woodrow Holdings (USA), Inc., now known as Taylor Morrison Communities Inc. | |
On April 12, 2013, TMHC completed the initial public offering (the “IPO”) of its Class A common stock, par value $0.00001 per share (the “Class A Common Stock”). The shares of Class A Common Stock began trading on the New York Stock Exchange on April 10, 2013 under the ticker symbol “TMHC.” As a result of the completion of the IPO and a series of transactions pursuant to a Reorganization Agreement dated as of April 9, 2013 (the “Reorganization Transactions”), TMHC became the indirect parent of TMM Holdings through the formation of TMM Holdings II Limited Partnership (“New TMM”). In the Reorganization Transactions, the TPG Entities and the Oaktree Entities each formed new holding vehicles to hold interests in New TMM (the “TPG Holding Vehicle” and the “Oaktree Holding Vehicle” respectively). As of December 31, 2014 and 2013, the Principal Equityholders owned 73.0% and 73.1%, respectively of the Company. | |
On December 16, 2014, we announced we entered into a definitive agreement to sell 100% of the capital stock of Monarch Corporation (“Monarch”) a subsidiary that at the time owned the operations of our Canadian operations. The actual purchase price paid and cash amounts were determined using Monarch’s final December 31, 2014 balance sheet. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 accounting principles generally accepted in the United States (“GAAP”), include the accounts of TMHC and our consolidated subsidiaries, other entities where we have a controlling financial interest, and of variable interest entities if we are deemed the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Unless otherwise stated, amounts are shown in U.S. dollars. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date, and revenues and expenses are translated at average rates of exchange prevailing during the period. Translation adjustments resulting from this process are recorded to accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets and Statements of Stockholders’ Equity. | |||||||||||||
Reclassifications — Certain prior period amounts have been reclassified to conform with current period financial statement presentation. | |||||||||||||
Discontinued Operations — As a result of our decision in December 2014 to dispose of our Canadian operating segment, specifically Monarch Corporation, the operating results and financial position of the Monarch business are presented as discontinued operations for all periods presented (see Note 4 — Discontinued Operations and Note 21 — Subsequent Events). We determined that Monarch should be presented as a discontinued operation based on a committed plan to sell, and our determination that the sale of the entity was probable at December 31, 2014. | |||||||||||||
Non-controlling interests — In the Reorganization Transactions, the Company became the sole owner of the general partner of New TMM. As the general partner of New TMM, the Company exercises exclusive and complete control over New TMM. Consequently: | |||||||||||||
• | For periods subsequent to April 9, 2013, the Company consolidates New TMM and records a non-controlling interest in its Consolidated Balance Sheets for the economic interests in New TMM, that are directly or indirectly held by the Principal Equityholders or by members of management and the Board of Directors; and | ||||||||||||
• | The Consolidated Financial Statements as of and for the year ended December 31, 2012 reflect the consolidated operations of TMM Holdings only as there were no operating activities or equity transactions in TMHC during that period. | ||||||||||||
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 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. 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 and amounts on deposit with financial institutions in Canada that are in excess of the Canadian Deposit Insurance Corporation federally insured limits of up to $100,000. No losses have been experienced to date. | |||||||||||||
In addition, the Company is exposed to credit risk to the extent that mortgage and loan borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the mortgaged property or land that was sold to the buyer. | |||||||||||||
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, 2014, 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 at December 31, 2014 consists of $1.3 million pledged to collateralize mortgage credit lines and at December 31, 2013 consists of $2.0 million pledged to collateralize mortgage credit lines through certificates of deposit known as Certificate of Deposit Account Registry Service (CDARS). | |||||||||||||
Real Estate Inventory — Inventory consists of raw land, land under development, land held for future development, homes under construction, completed homes and model homes. Inventory is carried at cost, less impairment, if applicable. 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 construction costs are accumulated and charged to cost of sales at home closing using the specific identification method. Land acquisition, development, interest, taxes and overhead costs are allocated to homes and units using methods that approximate the relative sales value method. 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 (cost to complete) are generally allocated to the remaining homes on a prospective basis. For those communities that have been temporarily closed or where development has been discontinued, costs are expensed as incurred until operations resume. | |||||||||||||
We review our real estate inventory for indicators of impairment by community on a quarterly basis. In conducting our impairment analysis, we evaluate the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. If indicators of impairment are present for a community, we perform an additional analysis to determine if the carrying value of the assets in that community exceeds the undiscounted cash flows estimated to be generated by those assets. If the carrying value of the assets does exceed their estimated undiscounted cash flows, the assets are deemed to be impaired and are recorded at fair value as of the assessment date. An impairment charge is taken in the period with a charge to cost of home closings. | |||||||||||||
Critical assumptions in our cash flow model include: (i) the projected absorption pace for home sales in the community, based on general economic conditions that will have an impact on the market in which the community is located and competition within the market; (ii) the expected sales prices and sales incentives to be offered; (iii) costs to build and deliver homes in the community, including, but not limited to, land and land development costs, home construction costs, interest costs and overhead costs; and (iv) alternative uses for the property, such as the possibility of a sale of the entire community to another builder or the sale of individual home sites. Consideration is also given to development budgets and sales pace and price. Discount rates are determined using a base rate, which may be increased depending on the total remaining lots in a community, the development status of the land, the market in which it is located and if the product is higher-priced with potentially lower demand. Historically, our discount rates have been in the range of 12.0% to 18.0%. Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. For the years ended December 31, 2014, 2013 and 2012, no impairment charges were recorded. | |||||||||||||
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 temporary market conditions to improve. The decision may be based on financial and/or operational metrics as determined by us. If we decide to cease developing a project, we will impair such project if necessary to its fair value as discussed above and then cease future development and/or 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 assets typically include subjective 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, 2014, we had 19 inactive projects with a carrying value of $28.0 million of which $6.1 million and $21.9 million is in the East and West segments, respectively. During the year ended December 31, 2014, we placed one community into inactive status and moved one community into active status. | |||||||||||||
As discussed in this note under Investments in Consolidated and Unconsolidated Entities — Consolidated Option Agreements, in the ordinary course of business, we acquire various specific performance lots through existing lot option agreements. Real estate not owned under certain of these contracts is consolidated into real estate inventory with a corresponding liability in liabilities attributable to consolidated option agreements in the Consolidated Balance Sheets. | |||||||||||||
Land Deposits —We provide deposits related to land options and land purchase contracts, which are capitalized when paid and classified as land deposits until the associated property is purchased. To the extent the deposits are non-refundable, they are charged to expense if the land acquisition process is terminated or no longer determined probable. We review the likelihood of the acquisition of contracted lots in conjunction with our periodic real estate inventory impairment analysis. Non-refundable deposits are recorded as a component of 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. | |||||||||||||
Mortgages Receivable — Mortgages receivable consists of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage brokerage subsidiary, TMHF. Mortgages receivable are held for sale and are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. | |||||||||||||
Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets consist of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Prepaid expenses | $ | 75,700 | $ | 62,822 | |||||||||
Other assets | 13,510 | 17,099 | |||||||||||
Total prepaid expenses and other assets, net | $ | 89,210 | $ | 79,921 | |||||||||
Our prepaid expenses consist primarily of unamortized debt issuance costs, sales commissions, sales presentation centers and model home costs, such as design fees and furniture. At December 31, 2014 and 2013, prepaid debt issuance costs consisted of $26.9 million and $26.7 million, respectively, of aggregate unamortized costs related to the various Senior Notes issuances and our revolving credit facility. During the year ended December 31, 2014 and 2013, we amortized $5.9 million and $5.3 million of such debt issue costs, respectively. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the units to which they relate. The model home and sales presentation centers costs are paid in advance and amortized over the life of the project on a per-unit basis, or a maximum of three years. | |||||||||||||
Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs and other deferred costs. | |||||||||||||
Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development districts and utility deposits. Allowances of $0.3 and $0.5 million at December 31, 2014 and 2013, respectively, are maintained for potential credit losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are generally recorded in other expense, net when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. | |||||||||||||
Investments in Unconsolidated and Consolidated Entities | |||||||||||||
Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 they have substantive participating rights that preclude the presumption of control. For joint ventures accounted for using the equity method, our share of net earnings or losses is included in equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in investments in unconsolidated entities on the Consolidated Balance Sheets. | |||||||||||||
Consolidated Joint Ventures — We are also involved in several joint ventures with independent third parties for land development and homebuilding activities. If a joint venture is determined to be a variable interest entity (“VIE”) and we are deemed to be the primary beneficiary, we consolidate the joint venture. For these entities, their financial statements are consolidated in the accompanying Consolidated Financial Statements and the other partners’ equity are recorded as non-controlling interests – joint ventures. | |||||||||||||
Consolidated Option Agreements — In the ordinary course of business, we enter into land and lot option purchase contracts in order to procure land or lots for the construction of homes. Lot option contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risks associated with land ownership and development. In accordance with Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” we have concluded that when we enter into an option or purchase agreement to acquire land or lots and pay a non-refundable deposit, a VIE may be created because we may be deemed to have provided subordinated financial support and we will potentially absorb some or all of an entity’s expected losses if they occur. For each VIE, we assess whether we are the primary beneficiary by first determining if we have the ability to control the activities of the VIE that most significantly affect its economic performance. Such activities include, but are not limited to, the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with us; and the ability to change or amend the existing option contract with the VIE. If we are not able to control such activities, it is not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE’s losses or, if no party absorbs the majority of such losses, if we will potentially benefit from a significant amount of the VIE’s expected returns. | |||||||||||||
We evaluate our investments in unconsolidated entities for indicators of impairment during each reporting period. 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 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 the Company believes that the decline in the fair value of the investment is temporary, then no impairment is recorded. We did not record any impairment charges for the years ended December 31, 2014, 2013 or 2012. | |||||||||||||
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 both 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 $3.0 million for the year ending December 31, 2014, $2.1 million for the year ending December 31, 2013 and $2.9 million for the year ended December 31, 2012. Depreciation expense is recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations. | |||||||||||||
Intangible Assets, net — Intangible assets consist of tradenames, lot options and land supplier relationships, and non-compete covenants. We sell our homes under a number of trade names. The fair value of acquired intangible assets was determined using the income approach, and our trade names are being amortized on a straight line basis over ten years. | |||||||||||||
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 instead be assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. For the years ended December 31, 2014 and 2013, there have been no additions to goodwill. For the years ended December 31, 2014, 2013 and 2012, there has been no impairment of goodwill. | |||||||||||||
Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits under our workers’ compensation, automobile, and general liability insurance policies, and we record expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability limits are $50 million per occurrence in the annual aggregate and apply in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our sub-contractors and design professionals to indemnify us for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered during a period of time up to ten years following the sale of a home, coverage for premise operations risk, and property coverage. 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. | |||||||||||||
We offer warranties on homes that generally provide for a limited one-year warranty to cover various defects in workmanship or materials or to cover structural construction defects. We may also facilitate a ten-year warranty in certain markets or to comply with regulatory requirements. 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 arrangement, therefore, it is accounted for in accordance with ASC Topic 450, “Contingencies.” In accordance with ASC 450, 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 if all other criteria for revenue recognition have been met. Thus, the warranty would not be considered a separate deliverable in the arrangement since it is not priced apart from the home. As a result, we accrue the estimated costs to fulfill the warranty obligation in accordance with ASC 450 at the time a home closes, as a component of cost of home closings. | |||||||||||||
Our reserves 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. Reserves are recorded in accrued expenses and other liabilities on our Consolidated Balance Sheets. | |||||||||||||
Non-controlling Interests — Principal Equityholders — In the Reorganization Transactions immediately prior to the Company’s IPO, the existing holders of TMM Holdings limited partnership interests (the Principal Equityholders, members of management and the Board of Directors), exchanged their limited partnership interests for limited partnership interests of a newly formed limited partnership, New TMM (the “New TMM Units”). For each New TMM Unit received in the exchange, the Principal Equityholders, members of management and the Board of Directors also received, directly or indirectly, a corresponding number of shares of the Company’s Class B common stock, par value $0.00001 per share (the “Class B Common Stock”). All of the Company’s Class B Common Stock is owned by the Principal Equityholders, members of management and the Board of Directors. The Company’s Class B Common Stock has voting rights but no economic rights. One share of Class B Common Stock, together with one New TMM Unit is exchangeable into one share of the Company’s Class A Common Stock. The Company sold Class A Common Stock to the investing public in its initial public offering. The proceeds received in the initial public offering were used by the Company to purchase New TMM Units, such that the Company owns an amount of New TMM Units equal to the amount of the Company’s outstanding shares of Class A Common Stock. The Company’s Class A Common Stock has voting rights and economic rights. Also, in the Reorganization Transactions, the Company became the sole owner of the general partner of New TMM. As the general partner of New TMM, the Company exercises exclusive and complete control over New TMM. Consequently, the Company consolidates New TMM and records a non-controlling interest in its Consolidated Balance Sheet for the economic interests in New TMM, directly or indirectly, held by the Principal Equityholders, members of management and the Board of Directors. | |||||||||||||
For the year-ended December 31, 2013, activity in the Non-controlling interests – Principal Equityholders and former controlling interests net income (loss) amounts is as follows (in thousands): | |||||||||||||
Consolidated | Continuing | Discontinued | |||||||||||
Operations | Operations | ||||||||||||
Pre-IPO Non-controlling Interests – Principal Equityholders | $ | 123,532 | $ | 81,403 | $ | 42,129 | |||||||
Post-IPO Controlling Interest | (73,953 | ) | (82,845 | ) | 8,892 | ||||||||
Non-controlling Interests – Principal Equityholders | $ | 49,579 | $ | (1,442 | ) | $ | 51,021 | ||||||
Pre-IPO activity is for the period prior to April 10, 2013 while post-IPO is activity subsequent to that date. No similar reconciliation is needed for the year-ended December 31, 2014 as we were a publicly traded company for the entirety of the year. | |||||||||||||
Stock Based Compensation | |||||||||||||
We account for stock-based compensation in accordance with ASC Topic 718-10, “Compensation – Stock Compensation.” The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model. These models require the input of highly subjective assumptions. This guidance also requires us to estimate forfeitures in calculating the expense related to stock-based compensation. | |||||||||||||
Revenue Recognition: | |||||||||||||
Home closings revenue, net — Revenue from home sales are recorded using the completed-contract method of accounting at the time each home is closed, delivered, title and possession are transferred to the buyer, there is no significant continuing involvement with the home, risk of loss has transferred, and the buyer has demonstrated sufficient initial and continuing investment in the property. A home is considered closed when escrow closes and funds have transferred from the buyer or mortgage company to us. | |||||||||||||
We typically grant our homebuyers certain sales incentives, including cash discounts, incentives on options included in the home, option upgrades, and seller-paid financing or closing costs. Incentives and discounts are accounted for as a reduction in the sales price of the home and home closings revenue is shown net of discounts. For the years ended December 31, 2014, 2013 and 2012, discounts were $150.9 million, $129.0 million and $104.8 million, respectively. We also receive rebates from certain vendors and these rebates are accounted for as a reduction to cost of home closings. | |||||||||||||
Land closings revenue — Revenue from land sales are recognized when title is transferred to the buyer, there is no significant continuing involvement, and the buyer has demonstrated sufficient initial and continuing investment in the property sold. If the buyer has not made an adequate initial or continuing investment in the property, the profit on such sales is deferred until these conditions are met. | |||||||||||||
Mortgage operations revenue — Loan origination fees (including title fees, points, closing costs) are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. All of the loans TMHF originates are sold to third party investors within a short period of time, within 20 business days, 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,” since TMHF does not have continuing involvement with the transferred assets, 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. | |||||||||||||
Advertising Costs — We expense advertising costs as incurred. Advertising costs were $26.1 million, $21.1 million and $12.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Recently Issued Accounting Pronouncements — In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for us for our fiscal year ending December 31, 2017. The adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements or disclosures. | |||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (“ASU 2014-12”), which provides guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 is effective beginning January 1, 2016. We do not anticipate that the adoption of ASU 2014-12 will have a material effect on our consolidated financial statements or disclosures. | |||||||||||||
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (“ASU 2014-11”), which requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 is effective beginning January 1, 2015. We do not anticipate that the adoption of ASU 2014-11 will have a material effect on our consolidated financial statements or disclosures. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective beginning January 1, 2017 and, at that time we will adopt the new standard under either the full retrospective approach or the modified retrospective approach. Early adoption is not permitted. We are currently evaluating the method and impact the adoption of ASU 2014-09 will have our consolidated financial statements and disclosures. | |||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Pursuant to ASU 2014-08, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as a discontinued operation. If the disposal does qualify as a discontinued operation under ASU 2014-08, the entity will be required to provide expanded disclosures. ASU 2014-08 is effective beginning November 1, 2015. We plan to adopt this ASU when it becomes effective. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 3. EARNINGS PER SHARE | ||||||||
Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of Class A Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all shares of Class B Common Stock and their corresponding New TMM Units were exchanged for Class A Common Stock and if equity awards to issue common stock that are dilutive were exercised (in thousands, except per share amounts): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income available to TMHC – basic | $ | 71,469 | $ | 45,420 | |||||
Income from discontinued operations, net of tax | 41,902 | 66,513 | |||||||
Income from discontinued operations, net of tax attributable to non-controlling interest – Principal Equityholders | (30,594 | ) | (51,021 | ) | |||||
Net income from discontinued operations — basic | $ | 11,308 | $ | 15,492 | |||||
Net income from continuing operations — basic | $ | 60,161 | $ | 29,928 | |||||
Net income from continuing operations — basic | $ | 60,161 | $ | 29,928 | |||||
Net income from continuing operations attributable to non-controlling interest – Principal Equityholders | 163,790 | 81,403 | |||||||
Loss fully attributable to Class A Common Stock | 282 | 63 | |||||||
Net income from continuing operations — diluted | $ | 224,233 | $ | 111,394 | |||||
Net income from discontinued operations — diluted | $ | 41,902 | $ | 57,620 | |||||
Denominator: | |||||||||
Weighted average shares — basic (Class A) | 32,937 | 32,840 | |||||||
Weighted average shares — Principal Equityholders’ non-controlling interest (Class B) | 89,328 | 89,469 | |||||||
Restricted stock units | 48 | 9 | |||||||
Stock options | — | 1 | |||||||
Weighted average shares — diluted | 122,313 | 122,319 | |||||||
Earnings per common share — basic: | |||||||||
Income from continuing operations | $ | 1.83 | $ | 0.91 | |||||
Discontinued operations, net of tax | $ | 0.34 | $ | 0.47 | |||||
Net income available to Taylor Morrison Home Corporation | $ | 2.17 | $ | 1.38 | |||||
Earnings per common share — diluted: | |||||||||
Income from continuing operations | $ | 1.83 | $ | 0.91 | |||||
Discontinued operations, net of tax | $ | 0.34 | $ | 0.47 | |||||
Net income available to Taylor Morrison Home Corporation | $ | 2.17 | $ | 1.38 | |||||
We excluded a total weighted average of 1,281,959 and 1,439,645 stock options and time-vesting restricted stock units (“RSUs”) from the calculation of earnings per share for the year ended December 31, 2014 and 2013, respectively, as their inclusion is anti-dilutive. | |||||||||
The shares of Class B Common Stock have voting rights however, do not have economic rights, no rights to dividends or distribution on liquidation, and therefore, are not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share. Additionally, the income from Principal Equityholders’ non-controlling interest and the related Class B Common Stock may produce a slight anti-dilutive effect on diluted earnings per common share. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | 4. DISCONTINUED OPERATIONS | ||||||||||||
In connection with the decision to sell Monarch in December 2014, the operating results associated with the Monarch business are classified as discontinued operations – net of applicable taxes in the Consolidated Statements of Operations for all periods presented, and the assets and liabilities associated with this business are classified as assets of discontinued operations and liabilities of discontinued operations, as appropriate, in the Consolidated Balance Sheets for all applicable periods presented. | |||||||||||||
The components of discontinued operations, net of tax are as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 395,070 | $ | 407,156 | $ | 394,539 | |||||||
Pre-tax income from discontinued operations | $ | 61,786 | $ | 93,391 | $ | 98,894 | |||||||
Provision for taxes | 19,884 | 26,878 | 24,001 | ||||||||||
Income from discontinued operations, net of tax | $ | 41,902 | $ | 66,513 | $ | 74,893 | |||||||
The components of assets of discontinued operations and liabilities of discontinued operations are as follows (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Cash and cash equivalents | $ | 227,988 | $ | 195,663 | |||||||||
Restricted cash | 11,474 | 21,007 | |||||||||||
Real estate inventory | 149,087 | 249,759 | |||||||||||
Land deposits | 7,547 | 5,728 | |||||||||||
Loans receivable | 40,808 | 33,395 | |||||||||||
Tax indemnification receivable | 5,194 | 5,216 | |||||||||||
Prepaid expenses and other assets, net | 11,197 | 18,949 | |||||||||||
Other receivables, net | 1,984 | 5,621 | |||||||||||
Investments in unconsolidated entities | 111,887 | 118,115 | |||||||||||
Deferred tax assets, net | 3,233 | 2,264 | |||||||||||
Property and equipment, net | 2,546 | 3,013 | |||||||||||
Intangible assets, net | 3,500 | 4,388 | |||||||||||
Assets of discontinued operations | $ | 576,445 | $ | 663,118 | |||||||||
Accounts payable | $ | 14,438 | $ | 20,133 | |||||||||
Accrued expenses and other liabilities | 44,554 | 52,456 | |||||||||||
Income taxes payable | 8,076 | 12,028 | |||||||||||
Customer deposits | 11,166 | 32,637 | |||||||||||
Loans payable and other borrowings | 90,331 | 138,757 | |||||||||||
Liabilities of discontinued operations | $ | 168,565 | $ | 256,011 | |||||||||
The Canadian business is 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. These guarantees have been made in connection with joint venture funding. Outstanding letters of credit and surety bonds under these arrangements, including the Canadian business’s share of responsibility for arrangements with its joint ventures, totaled $152.9 million and $212.2 million as of December 31, 2014 and 2013, respectively. Although significant development and construction activities have been completed related to these site improvements, the letters of credit and surety bonds are reduced as development and construction work is completed, but not fully released until warranty periods have expired. |
Real_Estate_Inventory_And_Land
Real Estate Inventory And Land Deposits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Real Estate [Abstract] | |||||||||||||
Real Estate Inventory And Land Deposits | 5. REAL ESTATE INVENTORY AND LAND DEPOSITS | ||||||||||||
Inventory consists of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Operating communities, including capitalized interest | $ | 2,217,067 | $ | 1,651,218 | |||||||||
Real estate held for development or held for sale (completed homes) | 294,556 | 342,767 | |||||||||||
Total owned inventory | 2,511,623 | 1,993,985 | |||||||||||
Real estate not owned under option contracts | 6,698 | 18,595 | |||||||||||
Total real estate inventory | $ | 2,518,321 | $ | 2,012,580 | |||||||||
Capitalized Interest — Interest capitalized, incurred, expensed and amortized is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest capitalized — beginning of period | $ | 71,263 | $ | 45,387 | $ | 19,460 | |||||||
Interest incurred | 88,782 | 61,582 | 46,340 | ||||||||||
Interest expensed | — | (812 | ) | — | |||||||||
Interest amortized to cost of closings | (65,165 | ) | (34,894 | ) | (20,413 | ) | |||||||
Interest capitalized — end of period | $ | 94,880 | $ | 71,263 | $ | 45,387 | |||||||
Land Deposits — As of December 31, 2014 and 2013, we had the right to purchase approximately 5,372 and 6,570 lots under land option purchase contracts, respectively, which represents an aggregate purchase price of $323.5 million and $500.9 million as of December 31, 2014 and 2013, respectively. As of December 31, 2014 and 2013, our exposure to loss related to our option contracts with third parties and unconsolidated entities consists of non-refundable option deposits totaling $34.5 million and $38.0 million, respectively, in land deposits related to land options and land purchase contracts. Creditors of these VIEs, if any, generally have no recourse against us. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, no impairment of option deposits or capitalized pre-acquisition costs were recorded. We continue to evaluate the terms of open land option and purchase contracts and may impair option deposits and capitalized pre-acquisition costs in the future. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Investments in Unconsolidated Entities | 6. INVESTMENTS IN UNCONSOLIDATED ENTITIES | ||||||||||||
We participate in a number of joint ventures with related and unrelated third parties, with ownership interests up to 50.0%. These entities are generally involved in real estate development, homebuilding and mortgage lending activities. | |||||||||||||
Summarized, unaudited financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Real estate inventory | $ | 396,858 | $ | 59,357 | |||||||||
Other assets | 59,963 | 16,440 | |||||||||||
Total assets | $ | 456,821 | $ | 75,797 | |||||||||
Liabilities and owners’ equity: | |||||||||||||
Debt | $ | 129,561 | $ | 30,471 | |||||||||
Other liabilities | 8,870 | 1,483 | |||||||||||
Total liabilities | $ | 138,431 | $ | 31,954 | |||||||||
Owners’ equity: | |||||||||||||
TMHC | 110,291 | 21,435 | |||||||||||
Others | 208,099 | 22,408 | |||||||||||
Total owners’ equity | 318,390 | 43,843 | |||||||||||
Total liabilities and owners’ equity | $ | 456,821 | $ | 75,797 | |||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 23,020 | $ | 11,062 | $ | 9,769 | |||||||
Costs and expenses | (12,221 | ) | (4,002 | ) | (6,248 | ) | |||||||
Income of unconsolidated entities | $ | 10,799 | $ | 7,060 | $ | 3,521 | |||||||
Company’s share in income of unconsolidated entities | $ | 5,405 | $ | 2,895 | $ | 1,214 | |||||||
Distributions of earnings from unconsolidated entities | $ | 3,746 | $ | 1,800 | $ | 3,217 | |||||||
We have investments in, and advances to, a number of joint ventures with unrelated parties to develop land and to develop housing communities, including for-sale residential homes. Some of these joint ventures develop land for the sole use of the venture participants, including us, and others develop land for sale to the joint venture participants and to unrelated builders. Our share of the joint venture profit relating to lots we purchases from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer. |
Intangible_Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. INTANGIBLE ASSETS |
Intangible assets consist of tradenames, lot options and land supplier relationships, and non-compete covenants. At December 31, 2014, the gross carrying amount and accumulated amortization was $14.0 million and $8.5 million, respectively. At December 31, 2013, the gross carrying amount and accumulated amortization was $14.0 million and $4.7 million, respectively. | |
Amortization of intangible assets is recorded on a straight-line basis over the life of the asset. Amortization expense recorded during the years ended December 31, 2014, 2013 and 2012 was $1.1 million, $1.1 million and $0.4 million, respectively. Additionally, during the year ended December 31, 2014, $2.7 million of lot option contracts were reclassified to real estate inventory as the lot options were exercised, which is included in the accumulated amortization amount noted above. |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Payables and Accruals [Abstract] | |||||||||||||
Accrued Expenses and Other Liabilities | 8. ACCRUED EXPENSES AND OTHER LIABILITIES | ||||||||||||
Accrued expenses and other liabilities consist of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Real estate development costs to complete | $ | 24,222 | $ | 15,422 | |||||||||
Compensation and employee benefits | 51,475 | 44,264 | |||||||||||
Self insurance and warranty reserves | 44,595 | 34,814 | |||||||||||
Interest payable | 22,033 | 16,898 | |||||||||||
Property and sales taxes payable | 12,808 | 12,529 | |||||||||||
Other accruals | 45,423 | 38,117 | |||||||||||
Total accrued expenses and other liabilities | $ | 200,556 | $ | 162,044 | |||||||||
Self Insurance and Warranty Reserves — a summary of the changes in our reserves are as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve — beginning of period | $ | 34,814 | $ | 31,962 | $ | 36,235 | |||||||
Additions to reserves | 16,882 | 14,880 | 1,117 | ||||||||||
Costs and claims incurred | (6,799 | ) | (10,788 | ) | (8,053 | ) | |||||||
Change in estimates to pre-existing reserves | (302 | ) | (1,240 | ) | 2,663 | ||||||||
Reserve — end of period | $ | 44,595 | $ | 34,814 | $ | 31,962 | |||||||
Debt
Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Debt | 9. DEBT | ||||||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
5.625% Senior Notes due 2024, unsecured, with $4.9 million of unamortized debt issuance costs at December 31, 2014 | $ | 350,000 | $ | — | |||||||||||||
5.25% Senior Notes due 2021, unsecured, with $7.5 million and $8.7 million of unamortized debt issuance costs at December 31, 2014 and 2013, respectively | 550,000 | 550,000 | |||||||||||||||
7.75% Senior Notes due 2020, unsecured, with $8.9 million and $10.6 million of unamortized debt issuance costs at December 31, 2014 and 2013, respectively and $3.4 million and $4.1 million of unamortized bond premium at December 31, 2014 and 2013, respectively | 488,840 | 489,497 | |||||||||||||||
Senior Notes Sub-total | $ | 1,388,840 | $ | 1,039,497 | |||||||||||||
$400 million Restated Revolving Credit Facility with $5.6 million and $7.4 million of unamortized debt issuance costs at December 31, 2014 and 2013 respectively | 40,000 | — | |||||||||||||||
Mortgage borrowings | 160,750 | 74,892 | |||||||||||||||
Loans payable and other borrowings | 147,516 | 143,341 | |||||||||||||||
Total debt | $ | 1,737,106 | $ | 1,257,730 | |||||||||||||
2020 Senior Notes | |||||||||||||||||
On April 13, 2012, we issued $550.0 million of 7.75% Senior Notes due 2020 (the “Initial Notes”) at an initial offering price of 100% of the principal amount (the “Offering”). The net proceeds from the sale of the Initial Notes were used, in part, to repay existing indebtedness. The remaining proceeds of approximately $187.4 million from the Offering were used for general corporate purposes. An additional $3.0 million of issuance costs were settled outside the bond proceeds. | |||||||||||||||||
On August 21, 2012, we issued an additional $125.0 million of 7.75% Senior Notes due 2020 (the “Additional Notes” together with the Initial Notes, the “2020 Senior Notes”) at an initial offering price of 105.5% of the principal amount. The net proceeds were used for general corporate purposes. The Additional Notes issued August 21, 2012 were issued pursuant to the existing indenture for the 2020 Senior Notes. The 2020 Senior Notes are unsecured and not subject to registration rights. | |||||||||||||||||
On April 12, 2013, we used $204.3 million of the net proceeds of the IPO to acquire New TMM Units from New TMM (at a price equal to the price paid by the underwriters for shares of Class A Common Stock in the IPO). TMM Holdings used these proceeds to repay a portion of the 2020 Senior Notes. | |||||||||||||||||
Obligations to pay principal and interest on the 2020 Senior Notes are guaranteed by TMM Holdings, Taylor Morrison Holdings, Inc., Monarch Parent Inc. and the U.S. homebuilding subsidiaries of TMC (collectively, the “Guarantors”). The 2020 Senior Notes and the guarantees are senior unsecured obligations. The indenture for the 2020 Senior Notes contains covenants that limit (i) the making of investments, (ii) the payment of dividends and the redemption of equity and junior debt, (iii) the incurrence of additional indebtedness, (iv) asset dispositions, (v) mergers and similar corporate transactions, (vi) the incurrence of liens, (vii) the incurrence of prohibitions on payments and asset transfers among the issuers and restricted subsidiaries and (viii) transactions with affiliates, among others. The indenture governing the 2020 Senior Notes contains customary events of default. If we do not apply the net cash proceeds of certain asset sales within specified deadlines, we will be required to offer to repurchase the 2020 Senior Notes at par (plus accrued and unpaid interest) with such proceeds. We are also required to offer to repurchase the 2020 Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events. | |||||||||||||||||
2021 Senior Notes | |||||||||||||||||
On April 16, 2013, we issued $550.0 million aggregate principal amount of 5.25% Senior Notes due 2021 (the “2021 Senior Notes”). The 2021 Senior Notes are unsecured and are not subject to registration rights. The net proceeds from the issuance of the 2021 Senior Notes were used to repay the outstanding balance under the Restated Revolving Credit Facility and for general corporate purposes, including the purchase of additional land inventory. | |||||||||||||||||
The 2021 Senior Notes are guaranteed by the same Guarantors that guarantee the 2020 Senior Notes. The indenture governing the 2021 Senior Notes contains covenants, change of control and asset sale offer provisions that are similar to those contained in the indenture governing the 2020 Senior Notes. | |||||||||||||||||
2024 Senior Notes | |||||||||||||||||
On March 5, 2014, we issued $350.0 million aggregate principal amount of 5.625% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes are unsecured and are not subject to registration rights. The net proceeds from the issuance of the 2024 Senior Notes were used to repay the outstanding balance under the Restated Revolving Credit Facility and for general corporate purposes. | |||||||||||||||||
The 2024 Senior Notes mature on March 1, 2024. The 2024 Senior Notes are guaranteed by the same Guarantors that guarantee the 2020 and 2021 Senior Notes. The 2024 Senior Notes and the guarantees are senior unsecured obligations. The indenture governing the 2024 Senior Notes contains covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions. The indenture governing the 2024 Senior Notes contains events of default that are similar to those contained in the indentures governing the 2020 and the 2021 Senior Notes. The change of control provisions in the indenture governing the 2024 Senior Notes are similar to those contained in the indentures governing the 2020 and the 2021 Senior Notes, but a credit rating downgrade must occur in connection with the change of control before the repurchase offer requirement is triggered for the 2024 Senior Notes. | |||||||||||||||||
Prior to December 1, 2023, the 2024 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through December 1, 2023 (plus accrued and unpaid interest). Beginning on December 1, 2023, the 2024 Senior Notes are redeemable at par (plus accrued and unpaid interest). | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||
On January 15, 2014, TMC and various other subsidiaries of TMHC (collectively, the “Borrowers”), entered into Amendment No. 1 to the senior revolving credit facility (the “Restated Revolving Credit Facility”). This Amendment No. 1 released Monarch from all of its obligations under the Restated Revolving Credit Facility. As a result, the only borrower under the Restated Revolving Credit Facility is TMC. The Restated Revolving Credit Facility is guaranteed by the same Guarantors that guarantee the 2020 Senior Notes. The Restated Revolving Credit Facility matures on April 12, 2017. | |||||||||||||||||
The Restated Revolving Credit Facility contains certain “springing” financial covenants, requiring TMM Holdings and its subsidiaries to comply with a certain maximum capitalization ratio and a certain minimum consolidated tangible net worth test. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the Restated Revolving Credit 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 Restated Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the Restated Revolving Credit 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 Restated Revolving Credit Facility provides that TMC may exercise an equity cure by issuing certain permitted securities for cash or otherwise recording cash contributions to its capital that will, upon the contribution of such cash to TMC, 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 maximum debt to total capitalization ratio is 0.60 to 1.00. The ratio as calculated by the Borrowers at December 31, 2014 was 0.41 to 1.00. The minimum consolidated tangible net worth requirement was $1.3 billion at December 31, 2014. At December 31, 2014, the Borrowers’ tangible net worth, as defined in the Restated Revolving Credit Facility, was $1.7 billion. At December 31, 2014, these ratio calculations were inclusive of our Monarch business. | |||||||||||||||||
The Restated Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, 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 Restated Revolving Credit 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, 2014, we were in compliance with all of the covenants under the Restated Revolving Credit Facility. | |||||||||||||||||
Mortgage Borrowings | |||||||||||||||||
The following is a summary of our mortgage subsidiary borrowings (in thousands): | |||||||||||||||||
At December 31, 2014 | |||||||||||||||||
Facility | Amount | Facility | Interest Rate | Expiration Date | Collateral (1) | ||||||||||||
Drawn | Amount | ||||||||||||||||
Flagstar | $ | 62,894 | $ | 85,000 | LIBOR + 2.5% | 30 days written notice | Mortgage Loans | ||||||||||
Comerica | 11,430 | 50,000 | LIBOR + 2.75% | 19-Aug-15 | Mortgage Loans | ||||||||||||
JPMorgan | 86,426 | 100,000 | (2) | -3 | 28-Sep-15 | Pledged Cash | |||||||||||
Total | $ | 160,750 | $ | 235,000 | |||||||||||||
At December 31, 2013 | |||||||||||||||||
Facility | Amount | Facility | Interest Rate | Expiration Date | Collateral (1) | ||||||||||||
Drawn | Amount | ||||||||||||||||
Flagstar | $ | 38,084 | $ | 30,000 | LIBOR + 2.5% | 30 days written notice | Mortgage Loans | ||||||||||
Comerica | 36,808 | 50,000 | LIBOR + 2.875% | 5-Jun-14 | Mortgage Loans | ||||||||||||
Total | $ | 74,892 | $ | 80,000 | |||||||||||||
(1) | The mortgage borrowings outstanding as of December 31, 2014 and 2013, are collateralized by $191.1 million and $95.7 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables and $1.3 million and $2.0 million, respectively, of restricted short-term investments which are included in restricted cash in the accompanying Consolidated Balance Sheets. | ||||||||||||||||
(2) | The warehouse facility with JPMorgan has a maximum credit line of $50.0 million. On December 12, 2014 the agreement was temporarily amended to increase the capacity from $50.0 million to $100.0 million. Effective January 23, 2015, the temporary increase expired. | ||||||||||||||||
(3) | Interest under the JPMorgan agreement ranges from 2.50% plus 30-day LIBOR to 2.875% plus 30-day LIBOR or 0.25% (whichever is greater). | ||||||||||||||||
Loans Payable and Other Borrowings | |||||||||||||||||
Loans payable and other borrowings as of December 31, 2014 and 2013 consist of amounts due to various land sellers and a seller carryback note from a prior year acquisition. Loans payable bear interest at rates that ranged from 0% to 8% at December 31, 2014 and 2013, and generally are secured by the land that was acquired with the loans. 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 ending December 31, 2014 are as follows (in thousands): | |||||||||||||||||
2015 | $ | 252,278 | |||||||||||||||
2016 | 54,685 | ||||||||||||||||
2017 | 12,724 | ||||||||||||||||
2018 | 9,239 | ||||||||||||||||
2019 | 13,190 | ||||||||||||||||
Thereafter | 1,394,990 | ||||||||||||||||
Total debt | $ | 1,737,106 | |||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instrument and Hedging Activity | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instrument and Hedging Activity | 10. DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY |
In December 2014, we entered into a derivative financial instrument in the form of a foreign currency forward. The derivative financial instrument hedged our exposure to the Canadian dollar in conjunction with the disposition of the Monarch business. | |
The aggregate notional amount of the foreign exchange derivative financial instrument was $471.2 million at December 31, 2014. At December 31, 2014 the fair value of the instrument was not material to our consolidated financial position or results of operations. The final settlement of the derivative financial instrument occurred on January 30, 2015 and a gain will be recorded in the first quarter of 2015. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Disclosures | 11. FAIR VALUE DISCLOSURES | ||||||||||||||||||||
We have adopted ASC Topic 820, “Fair Value Measurements” for valuation of financial instruments. ASC 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 mortgages receivable is derived from negotiated rates with partner lending institutions. The fair value of our mortgage borrowings, loans receivable, loans payable and other borrowings and the borrowings under our Restated Revolving Credit Facility approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our 2020 Senior Notes, 2021 Senior Notes and 2024 Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. The carrying value and fair value of our financial instruments are as follows (in thousands): | |||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Level in | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Fair Value | Value | Fair Value | Value | Fair Value | |||||||||||||||||
Hierarchy | |||||||||||||||||||||
Description: | |||||||||||||||||||||
Mortgages receivable | 2 | $ | 191,140 | $ | 191,140 | $ | 95,718 | $ | 95,718 | ||||||||||||
Mortgage borrowings | 2 | 160,750 | 160,750 | 74,892 | 74,892 | ||||||||||||||||
Loans payable and other borrowings | 2 | 147,516 | 147,516 | 143,341 | 143,341 | ||||||||||||||||
7.75% Senior Notes due 2020 | 2 | 488,840 | 518,170 | 489,497 | 537,223 | ||||||||||||||||
5.25% Senior Notes due 2021 | 2 | 550,000 | 539,000 | 550,000 | 532,125 | ||||||||||||||||
5.625% Senior Notes due 2024 | 2 | 350,000 | 336,000 | N/A | N/A | ||||||||||||||||
Restated Revolving Credit Facility | 2 | 40,000 | 40,000 | N/A | N/A |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 12. INCOME TAXES | ||||||||||||
The (benefit) provision for income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 83,193 | $ | (24,403 | ) | $ | (284,301 | ) | |||||
Foreign | (6,798 | ) | 593 | 3 | |||||||||
Total income tax provision (benefit) | $ | 76,395 | $ | (23,810 | ) | $ | (284,298 | ) | |||||
Current: | |||||||||||||
Federal | $ | 91,981 | $ | (55,771 | ) | $ | (12,084 | ) | |||||
State | (1,341 | ) | 2,259 | 890 | |||||||||
Foreign | — | 593 | 4 | ||||||||||
Current tax provision (benefit) | $ | 90,640 | $ | (52,919 | ) | $ | (11,190 | ) | |||||
Deferred: | |||||||||||||
Federal | (13,549 | ) | 24,179 | (218,967 | ) | ||||||||
State | 6,102 | 4,930 | (54,141 | ) | |||||||||
Foreign | (6,798 | ) | — | — | |||||||||
Deferred tax provision (benefit) | $ | (14,245 | ) | $ | 29,109 | $ | (273,108 | ) | |||||
Total income tax provision (benefit) | $ | 76,395 | $ | (23,810 | ) | $ | (284,298 | ) | |||||
The components of income (loss) before income taxes are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 294,002 | $ | (3,180 | ) | $ | 73,317 | ||||||
Foreign | 7,992 | 7,725 | (1,660 | ) | |||||||||
Income before income taxes | $ | 301,994 | $ | 4,545 | $ | 71,657 | |||||||
At December 31, 2014 and 2013, we had a valuation allowance of $8.9 million and $40.0 million, respectively, against net deferred tax assets, which include the tax benefit from federal and state net operating loss (“NOL”) carryforwards. Federal NOL carryforwards may be used to offset future taxable income for 20 years and begin to expire in 2027. State NOL carryforwards may be used to offset future taxable income for a period of time ranging from 5 to 20 years, depending on the state, and begin to expire in 2025. NOL carryforwards in Canada expire in 20 years. The change in the valuation allowance from 2013 to 2014, and from 2012 to 2013, was a decrease of $31.1 million and $22.9 million, respectively. Our future deferred tax asset realization depends on sufficient taxable income in the carryforward periods under existing tax laws. State deferred tax assets include approximately $11.2 million and $16.1 million at December 31, 2014 and 2013, respectively, of tax benefits related to state NOL carryovers, which begin to expire in 2025. On an ongoing basis, we will continue to review all available evidence to determine if and when we expect to realize our deferred tax assets and federal and state NOL carryovers. | |||||||||||||
A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the federal statutory income tax rate of 35% to income before provision (benefit) for income taxes is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes (net of federal benefit) | 3.6 | 97 | (48.3 | ) | |||||||||
Foreign income taxed below U.S. Rate | (1.1 | ) | 14.1 | (3.3 | ) | ||||||||
Valuation allowance | (10.4 | ) | (348.2 | ) | (409.6 | ) | |||||||
Built in loss limitation | 3.1 | 179.2 | 56.1 | ||||||||||
Tax indemnity | — | 683.7 | 6.4 | ||||||||||
Uncertain tax positions | — | (1,824.0 | ) | (18.2 | ) | ||||||||
Transaction costs | — | — | (6.5 | ) | |||||||||
Non-controlling interest | (0.2 | ) | — | — | |||||||||
Deferred tax adjustments | — | — | (10.4 | ) | |||||||||
Disallowed compensation expense | 0.2 | 650.4 | — | ||||||||||
Holding company tax | (1.4 | ) | 93 | — | |||||||||
Domestic Manufacturing Deduction | (2.8 | ) | — | — | |||||||||
Other | (0.7 | ) | (104.0 | ) | 2 | ||||||||
Effective Rate | 25.3 | % | (523.8 | )% | (396.8 | )% | |||||||
We have substantial tax attributes available to offset the impact of future income taxes. We have a process for determining the need for a valuation allowance with respect to these attributes. In accordance with ASC Topic 740-10, “Income Taxes,” we assess whether a valuation allowance should be established based on the consideration of available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment includes an extensive review of both positive and negative evidence including our earnings history, forecasts of future profitability, assessment of the industry, the length of statutory carry-forward periods, experiences of utilizing NOLs and built-in losses, and tax planning alternatives. | |||||||||||||
As a result of the Acquisition on July 13, 2011, we had a “change in control” as defined by Section 382 of the Internal Revenue Code of 1986 as amended (the “IRC”). Section 382 of the IRC imposes certain limitations on our ability to utilize certain tax attributes and net unrealized built-in losses that existed as of July 13, 2011. The gross deferred tax asset includes amounts that are considered to be net unrealized built-in losses. To the extent these net unrealized losses are realized during the five-year period after July 13, 2011, they may not be deductible for federal income tax reporting purposes to the extent they exceed our overall IRC Section 382 limitation. To the extent that the losses were anticipated to be non-deductible, we established a valuation allowance. For the filing periods of 2005 to 2007, we reached a settlement in 2012 with the IRS for legacy Morrison Homes which reduced our income tax expense by $15.0 million related to the Section 382 issue. Income tax payable in the accompanying Consolidated Balance Sheets at December 31, 2012, includes reserves of $8.7 million and $74.8 million related to this issue for the tax years 2009 and 2008, respectively. For the filing periods of 2009 and 2008, we reached a settlement in 2013 with the IRS for the legacy Morrison Homes which reduced our income tax expense by $83.5 million. | |||||||||||||
The most significant judgments we make in our assessment of the need for a valuation allowance involve estimating the amount of built-in losses that may be utilized to offset future taxable income from the sale of real estate inventory that it held on the Acquisition date, and the ability to utilize NOLs as limited by Section 382 of the IRC. Making such estimates and judgments, particularly pertaining to the future ability to utilize built-in losses, is subject to inherent uncertainties. | |||||||||||||
We recorded a full valuation allowance against all of our U.S. deferred tax assets during 2007 due to economic conditions and the weight of negative evidence at that time. During the fourth quarter of 2012, we reversed a large portion of the valuation allowance because the weight of the positive evidence exceeded that of the negative evidence. At December 31, 2014 and December 31, 2013 we retained a valuation allowance of $8.9 million and $40.0 million, respectively, primarily related to Canadian net operating losses and deferred tax assets in the United States which are subject to restrictions on utilization according to IRC Section 382. In evaluating the need for a valuation allowance at December 31, 2014, we considered available positive and negative evidence, including that our last four years of cumulative results became profitable during the fourth quarter of 2012 and continues to be the case as of December 31, 2014. We also took into account evidence of recovery in the housing markets where we operate and our level of pre-tax income and growth in sales orders. The prospects of continued profitability and growth were further supported by a strong order backlog and sufficient balance sheet liquidity to sustain and grow operations. In addition, most of our tax jurisdictions have a 20-year NOL carryforward utilization period during which time we fully expect to be able to absorb NOL carryovers and temporary differences as they reverse in future years. | |||||||||||||
The components of net deferred tax assets and liabilities at December 31, 2014 and 2013, consisted of timing differences related to inventory impairment, expense accruals, provisions for liabilities, and NOL carryforwards. We have approximately $150.2 million in available federal NOL carryforwards, which will begin to expire in 2027. We have approximately $31.8 million in available NOL carryforwards related to the Canadian operations which will begin to expire in 2031. A summary of these components is as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Real estate inventory | $ | 157,722 | $ | 179,548 | |||||||||
Accruals and reserves | 18,366 | 19,367 | |||||||||||
Other | 21,217 | 22,601 | |||||||||||
Net operating losses | 72,148 | 73,222 | |||||||||||
Foreign exchange | — | 959 | |||||||||||
Total deferred tax assets | $ | 269,453 | $ | 295,697 | |||||||||
Deferred tax liabilities | |||||||||||||
Real estate inventory, intangibles, other | (2,342 | ) | (13,011 | ) | |||||||||
Valuation allowance | (8,921 | ) | (40,030 | ) | |||||||||
Total net deferred tax assets (1) | $ | 258,190 | $ | 242,656 | |||||||||
-1 | The amounts shown do not include deferred tax assets for discontinued operations of $3.2 million and $2.3 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||
We account for uncertain tax positions in accordance with ASC 740. This guidance clarifies the accounting for uncertainty in income taxes and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not (defined as a substantiated likelihood of more than 50%) 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. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken. | |||||||||||||
If a tax position does not meet the more-likely-than-not recognition threshold despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the financial statements and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as components of the provision for income taxes in the accompanying Consolidated Statements of Operations. Differences between amounts taken in a tax return and amounts recognized in the Consolidated Financial Statements are considered unrecognized tax benefits. We believes that we have a reasonable basis for each of our filing positions and intends to defend those positions if challenged by the IRS or other taxing jurisdictions. | |||||||||||||
Following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning of the period | $ | 2,035 | $ | 85,703 | $ | 98,322 | |||||||
Increases of current year items | — | 7,200 | 1,394 | ||||||||||
Increases of prior year items | 318 | 252 | 390 | ||||||||||
Settlement with tax authorities | — | (90,442 | ) | (615 | ) | ||||||||
Decreases for tax positions of prior years | — | — | (12,865 | ) | |||||||||
Decreases due to statute of limitations | — | (678 | ) | (923 | ) | ||||||||
End of the period (1) | $ | 2,353 | $ | 2,035 | $ | 85,703 | |||||||
-1 | The amounts shown do not include unrecognized tax benefits for discontinued operations of $6.2 million, $7.9 million and $9.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
There were no potential penalties and interest expense recorded on our uncertain tax positions for the year ended December 31, 2014. During the years ended December 31, 2013, and 2012, we recognized potential penalties and interest expense on our uncertain tax positions of $$0.3 million and $3.0 million, respectively, which is included in income tax provision (benefit) in the accompanying Consolidated Statements of Operations. There are no accrued interest and penalties recorded at December 31, 2014, and $1.2 million are recorded at December 31, 2013, and are included in other liabilities in the accompanying Consolidated Balance Sheets. Interest and penalties of $18.4 million were released in the year ended December 31, 2013, and no interest and penalties were released in the year ended December 31, 2014. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Stockholders' Equity | 13. STOCKHOLDERS’ EQUITY | ||||||||
Capital Stock — The following table provides information on the number of shares outstanding and reserved by class of stock at December 31, 2014: | |||||||||
Shares | |||||||||
Class A Common Stock issued and outstanding | 33,060,540 | ||||||||
Class A Common Stock reserved for outstanding stock options and restricted stock units | 1,510,708 | ||||||||
Class A Common Stock reserved for outstanding New TMM Unit exchanges (1) | 1,431,721 | ||||||||
Class A Common Stock reserved for future stock option and restricted stock unit issuances | 6,439,532 | ||||||||
Class B Common Stock issued and outstanding | 89,227,416 | ||||||||
Preferred Stock | — | ||||||||
-1 | One New TMM Unit together with a corresponding share of Class B Common Stock is exchangeable for one share of Class A Common Stock. Class A Common Stock reserved for outstanding New TMM Unit exchanges relate to time-vesting TMM Units held by certain members of TMHC’s management and Board. See Note 14 — Stock Based Compensation — New TMM Units for additional details. | ||||||||
Holders of Class A Common Stock and Class B Common Stock are entitled to one vote for each share held on all matters submitted to stockholders for their vote or approval. The holders of Class A Common Stock and Class B Common Stock vote together as a single class on all matters submitted to stockholders for their vote or approval, except with respect to the amendment of certain provisions of the amended and restated Certificate of Incorporation that would alter or change the powers, preferences or special rights of the Class B Common Stock so as to affect them adversely. Such amendments must be approved by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class, or as otherwise required by applicable law. The voting power of the outstanding Class B Common Stock (expressed as a percentage of the total voting power of all common stock) is equal to the percentage of partnership interests in New TMM not held directly or indirectly by TMHC. | |||||||||
The components and respective voting power of our outstanding Common Stock at December 31, 2014 are as follows: | |||||||||
Shares | Percentage | ||||||||
Outstanding | |||||||||
Class A Common Stock | 33,060,540 | 27 | % | ||||||
Class B Common Stock | 89,227,416 | 73 | |||||||
Total | 122,287,956 | 100 | % | ||||||
Initial Public Offering | |||||||||
On April 12, 2013, we completed our IPO of 32,857,800 shares of its Class A Common Stock, including 4,285,800 shares of Class A Common Stock sold in connection with the full exercise of the option to purchase additional shares granted to the underwriters, at a price to the public of $22.00 per share, resulting in net proceeds of $668.6 million to the Company. The shares began trading on the New York Stock Exchange (NYSE”) on April 10, 2013 under the ticker symbol “TMHC.” As a result of the completion of the IPO and the Reorganization Transactions, TMHC became the indirect parent of TMM Holdings. | |||||||||
Reorganization Transactions | |||||||||
In connection with the IPO, we completed the Reorganization Transactions, which are described in this Annual Report on Form 10-K. | |||||||||
In the Reorganization Transactions, the TPG Holding Vehicle and the Oaktree Holding Vehicle acquired the existing limited partnership interests in TMM Holdings from the holders thereof (including the Principal Equityholders and certain members of TMHC’s management and Board) and contributed those limited partnership interests in TMM Holdings to a new limited partnership, New TMM, such that TMM Holdings and the general partner of TMM became wholly-owned subsidiaries of New TMM. TMHC, through a series of transactions, became the sole owner of the general partner of New TMM. | |||||||||
Immediately following the consummation of the Reorganization Transactions, the limited partners of New TMM consisted of TMHC, the TPG Holding Vehicle, the Oaktree Holding Vehicle and certain members of TMHC’s management and Board. The number of New TMM Units issued to each of the limited partners described above was determined based on a hypothetical cash distribution by TMM Holdings of its pre-IPO value, the IPO and the price per share paid by the underwriters for shares of Class A Common Stock in the IPO, resulting in the issuance to those limited partners of 112,784,964 New TMM Units and one share of Class B Common Stock for each such New TMM Unit. One share of Class B Common Stock, together with one New TMM Unit is exchangeable into a share of Class A Common Stock. | |||||||||
Use of Proceeds from the IPO | |||||||||
The net proceeds to TMHC from the IPO were $668.6 million after deducting underwriting discounts and commissions and offering costs. TMHC used $204.3 million of the net proceeds from the IPO to acquire New TMM Units from New TMM (at a price equal to the price paid by the underwriters for each share of Class A Common Stock in the IPO). TMHC used the remaining $464.4 million of the net proceeds from the IPO, together with $18.1 million of cash on hand, to purchase 23,333,800 New TMM Units and the corresponding shares of Class B Common Stock (at a price equal to the price paid by the underwriters for each share of Class A Common Stock in the IPO) held by the TPG and Oaktree Holding Vehicles, the JH Entities and certain members of the Company’s management. | |||||||||
Since TMHC purchased the New TMM Units at a valuation in excess of the proportion of the book value of net assets acquired, we incurred an immediate dilution of $297.6 million, which is calculated as the net proceeds used to purchase New TMM Units of $668.6 million less the book value of such interests of $371.0 million. This dilution is reflected within additional paid-in capital as a reallocation from additional paid-in capital to non-controlling interests — Principal Equityholders in the accompanying 2013 Consolidated Statement of Stockholders’ Equity. | |||||||||
Stock Repurchase Program | |||||||||
On November 3, 2014, our Board of Directors authorized the repurchase of up to $50.0 million of the Company’s Class A Common Stock from time to time between now and December 31, 2015 in open market purchases, privately negotiated transactions or other transactions. The stock repurchase program will be subject to prevailing market conditions and other considerations, including our liquidity, the terms of our debt instruments, planned land investment and development spending, acquisition and other investment opportunities and ongoing capital requirements. There was no activity under this plan during the year ended December 31, 2014, or through the date of this filing. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Stock Based Compensation | 14. STOCK BASED COMPENSATION | ||||||||||||||||||||||||
Equity-Based Compensation | |||||||||||||||||||||||||
In April 2013, we adopted the Taylor Morrison Home Corporation 2013 Omnibus Equity Award Plan (the “Plan”). The Plan provides for the grant of stock options, restricted stock units, and other awards based on our common stock. As of December 31, 2014 the maximum number of shares of our Class A Common Stock that had been approved and may be subject to awards under the Plan is 7,956,955, subject to adjustment in accordance with the terms of the Plan. | |||||||||||||||||||||||||
The following table provides information regarding the amount of Common Stock available for future grants under the Plan: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Balance, beginning | 6,517,310 | — | NA | ||||||||||||||||||||||
Shares approved for issuance under the Plan | — | 7,956,955 | NA | ||||||||||||||||||||||
Grants | (103,622 | ) | (1,581,675 | ) | NA | ||||||||||||||||||||
Forfeited/cancelled | 25,641 | 142,030 | NA | ||||||||||||||||||||||
Shares withheld for tax withholdings | 203 | — | NA | ||||||||||||||||||||||
Balance, ending | 6,439,532 | 6,517,310 | NA | ||||||||||||||||||||||
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 accompanying Consolidated Statements of Operations: | |||||||||||||||||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Restricted stock units (RSUs) (1) | $ | 1,263 | $ | 815 | $ | — | |||||||||||||||||||
Stock options | 2,920 | 2,043 | — | ||||||||||||||||||||||
New TMM Units | 1,648 | 4,270 | 1,975 | ||||||||||||||||||||||
J Units | — | 80,190 | — | ||||||||||||||||||||||
Total stock compensation | $ | 5,831 | $ | 87,318 | $ | 1,975 | |||||||||||||||||||
Income tax benefit recognized | $ | 53 | $ | — | $ | — | |||||||||||||||||||
(1) | Includes compensation expense related to restricted stock units and performance restricted stock units. | ||||||||||||||||||||||||
At December 31, 2014, 2013, and 2012, the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $16.0 million, $21.3 million and $6.9 million, respectively. | |||||||||||||||||||||||||
Information about our stock-based compensation plans noted in the table above, including information about equity-based compensation issued prior to the IPO, is detailed below. | |||||||||||||||||||||||||
Stock Options — Options granted to employees vest and become exercisable ratably on the second, third, fourth and fifth anniversary of the date of grant. Options granted to members of the Board of Directors vest and become exercisable ratably on the first, second and third anniversary of the date of grant. Vesting of the options is subject to continued employment with TMHC or an affiliate, or continued service on the Board of Directors, through the applicable vesting dates and expires within ten years from the date of grant. | |||||||||||||||||||||||||
The following table summarizes stock option activity for the Plan for the year ended December 31, 2014: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Options | Average | Options | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding, beginning | 1,250,829 | $ | 22.45 | — | $ | — | NA | NA | |||||||||||||||||
Granted | 95,700 | 20.91 | 1,380,829 | 22.41 | NA | NA | |||||||||||||||||||
Exercised | — | — | — | — | NA | NA | |||||||||||||||||||
Cancelled | (21,500 | ) | 22 | (130,000 | ) | 22 | NA | NA | |||||||||||||||||
Balance, ending | 1,325,029 | $ | 22.35 | 1,250,829 | $ | 22.45 | NA | NA | |||||||||||||||||
Options exercisable, at December 31, 2014 | 7,963 | $ | 20.93 | — | $ | — | NA | NA | |||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Unamortized value of unvested stock options (net of estimated forfeitures) | $ | 10,092 | $ | 12,424 | |||||||||||||||||||||
Weighted-average period (in years) that expense is expected to be recognized | 3.4 | 4.3 | |||||||||||||||||||||||
Weighted-average remaining contractual life (in years) for options outstanding | 8.3 | 9.3 | |||||||||||||||||||||||
Weighted-average remaining contractual life (in years) for options exercisable | 8.5 | NA | |||||||||||||||||||||||
The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities and expected term are based on the historical information of five 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 fair value of stock option awards is recognized evenly over the vesting period of the options. | |||||||||||||||||||||||||
The following table summarizes the weighted-average assumptions and fair value used for stock options grants: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected dividend yield | 0.00 % | 0.00% | N/A | ||||||||||||||||||||||
Expected volatility | 48.60% | 56.59 % | N/A | ||||||||||||||||||||||
Risk-free interest rate | 1.13 % – 1.34 % | 0.54% | N/A | ||||||||||||||||||||||
Expected term (years) | 4.5 | 4.28 | N/A | ||||||||||||||||||||||
Weighted average fair value of options granted during the period | $8.59 | $11.57 | N/A | ||||||||||||||||||||||
The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Aggregate intrinsic value of options outstanding | $ | 8,046 | $ | 520 | N/A | ||||||||||||||||||||
Aggregate intrinsic value of options exercisable | $ | — | $ | — | N/A | ||||||||||||||||||||
The aggregate intrinsic value is based on the market price of our Class A Common Stock on December 31, 2014, the last trading day in December 2014, which was $18.89, less the applicable exercise price of the underlying option. This aggregate intrinsic value represents the amount that would have been realized if all the option holders had exercised their options on December 31, 2014. | |||||||||||||||||||||||||
Performance-Based Restricted Stock Units – In April 2013, awards of performance-based restricted stock units (“PRSUs”) were granted to certain senior management and members of the Board in connection with the IPO. The awards become vested with respect to 25% of the PRSUs on each of the first four anniversaries of the grant date; provided, that, if the performance condition has not been met as of any such annual vesting date, then such portion of the PRSUs shall continue to have the opportunity to become vested with respect to the performance condition on such subsequent date on which the performance condition is first satisfied. The “performance condition” shall be satisfied only if the weighted average price (after reduction for underwriting discount and commissions) at which the TPG and Oaktree Holding Vehicles have actually sold their New TMM Units or related shares of Class A Common Stock, exceeds the $22.00 price per share of the TMHC’s Class A Common Stock paid by the public in the IPO, it being understood that (i) all sales by the Principal Equityholders through December 31, 2015 will be included. If the performance condition has not been met as of December 31, 2015, all of the PRSUs being granted subject to the performance condition shall be automatically forfeited without consideration and are of no further force or effect. Vesting of the PRSUs is subject to continued employment with TMHC or an affiliate, or continued service on the Board of Directors (as applicable), through the applicable vesting dates as specified in the award document. | |||||||||||||||||||||||||
The value of the PRSUs was determined to be equal to the number of shares awarded multiplied by $24.30, which was the closing price of our Class A Common Stock on the NYSE on the date of issuance. As these awards contain both service and market performance conditions, we have recorded the compensation expense related to these awards over the service period as that condition is longer than the market performance condition. | |||||||||||||||||||||||||
The following table summarizes the activity of our PRSUs: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
Balance, beginning | 179,931 | — | |||||||||||||||||||||||
Granted | — | 191,961 | |||||||||||||||||||||||
Vested | — | — | |||||||||||||||||||||||
Forfeited | (4,141 | ) | (12,030 | ) | |||||||||||||||||||||
Balance at, ending | 175,790 | 179,931 | |||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
PRSU expense recognized during the year ended December 31 | $ | 1,054 | $ | 780 | |||||||||||||||||||||
Unamortized value of PRSUs at December 31 | $ | 2,438 | $ | 3,593 | |||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 2.3 | 3.3 | |||||||||||||||||||||||
Non-Performance-Based Restricted Stock Units — Our non-performance-based restricted stock units (“RSUs”) consist of shares of our Class A 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 an affiliate, or continued service on the Board of Directors, through the applicable vesting dates. RSUs granted to employees will become vested with respect to 25% of the RSUs on each of the first four anniversaries of the grant date. RSUs granted to members of the Board of Directors will become fully vested on the first anniversary of the grant date. | |||||||||||||||||||||||||
The following tables summarize the activity of our RSUs (dollars in thousands except per share amounts): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
RSUs | Average | RSUs | Average | RSUs | Average | ||||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Outstanding, beginning | 8,885 | $ | 20.82 | — | $ | — | NA | NA | |||||||||||||||||
Granted | 7,922 | 22.09 | 8,885 | 20.82 | NA | NA | |||||||||||||||||||
Vested | (6,919 | ) | 20.24 | — | — | NA | NA | ||||||||||||||||||
Forfeited | — | — | — | — | NA | NA | |||||||||||||||||||
Balance, ending | 9,889 | $ | 22.25 | 8,885 | $ | 20.82 | NA | NA | |||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
RSU expense recognized during the year ended December 31 | $ | 209 | $ | 36 | |||||||||||||||||||||
Unamortized value of RSUs at December 31 | 100 | $ | 149 | ||||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 1.3 | 1.9 | |||||||||||||||||||||||
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. During the year ended December 31, 2014, a total of 203 shares were withheld on net settlement for a de minimis amount. | |||||||||||||||||||||||||
Equity-Based Compensation Prior to the IPO | |||||||||||||||||||||||||
New TMM Units — Certain members of management and certain members of the Board of Directors were issued Class M partnership units in TMM Holdings prior to the IPO as long-term incentive compensation under the Class M Unit Plan. Those units were subject to both time and performance vesting conditions. In addition, TMM Holdings issued phantom Class M Units to certain employees who resided in Canada, which were treated as Class M Units for purposes of this description and the financial statements. In connection with the sale of Monarch all of the phantom Class M Units were settled pursuant to the change in control provision discussed below. | |||||||||||||||||||||||||
Pursuant to the Reorganization Transactions and IPO, the performance based Class M Units in TMM Holdings were exchanged for new equity interests of the TPG and Oaktree Holding Vehicles with terms that are substantially the same (“Holding Vehicle Performance Units”), as the Class M Units in TMM Holdings that were surrendered for exchange. Concurrent with the IPO in the second quarter of 2013, we determined that it was probable that the performance conditions for the 752,782 Holding Vehicle Performance Units outstanding would be met. Consequently, we recorded the $2.8 million grant date fair value related to those Holding Vehicle Performance Units as general and administrative expenses in the Consolidated Statement of Operations for the year ended December 31, 2013. | |||||||||||||||||||||||||
Pursuant to the Reorganization Transactions and IPO, the time-vesting Class M Units in TMM Holdings were exchanged for New TMM Units with vesting terms substantially the same as the Class M Units surrendered for exchange. Vesting of the time vesting New TMM Units is subject to continued employment with TMHC or an affiliate, or continued service on the Board of Directors, through the applicable vesting dates. Time vesting New TMM Units become vested with respect to 20% on each of the first five anniversaries of the date of grant. Compensation expense related to these awards is recognized on a straight-line basis over the five year service term. In addition, upon termination of a participant for any reason other than cause or upon resignation for good reason within the 24 month period following a change in control, all the then outstanding unvested time vesting New TMM Units are to immediately vest upon such termination. | |||||||||||||||||||||||||
As of December 31, 2014 and 2013, there were 639,401 and 484,185, respectively, vested and unexercised time vesting New TMM Units outstanding and the corresponding shares of our Class B Common Stock are included in the 89,227,416 and 89,451,164 shares of Class B common stock outstanding as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The following tables summarize the activity of our time vesting New TMM Unit awards: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||
Awards | Average Grant | Awards | Average Grant | ||||||||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||||||||||
Outstanding, beginning | 1,655,469 | $ | 5.02 | 1,812,099 | (1) | $ | 4.9 | ||||||||||||||||||
Paid out in connection with the IPO | — | — | (156,630 | ) | 3.64 | ||||||||||||||||||||
Exchanges (2) | (196,024 | ) | 4.22 | — | — | ||||||||||||||||||||
Forfeited (3) | (27,724 | ) | 6.09 | — | — | ||||||||||||||||||||
Balance, ending | 1,431,721 | $ | 5.11 | 1,655,469 | $ | 5.02 | |||||||||||||||||||
Unvested New TMM Units included in ending balance | 792,320 | $ | 5.3 | 1,171,284 | $ | 5.2 | |||||||||||||||||||
-1 | Periods prior to the IPO reflect time-vesting Class M Units in TMM Holdings. As such, 2012 amounts have not been presented. The balance at January 1, 2013 shown above reflects the New TMM Unit equivalent of time-vesting Class M Units in TMM Holdings. | ||||||||||||||||||||||||
-2 | Exchanges during the period represent the exchange of a vested New TMM Unit along with the corresponding share of Class B Common Stock for a newly issued share of Class A Common Stock. | ||||||||||||||||||||||||
(3) | Awards forfeited during the period represent the unvested portion of New TMM Unit awards for employees who have terminated employment with the Company and for which the New TMM Unit and the corresponding Class B Share have been cancelled. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
Unamortized value of New TMM Units | $ | 3,345 | $ | 5,162 | |||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 2.2 | 3.2 | |||||||||||||||||||||||
There are no unissued New TMM Unit awards remaining under the Class M Unit Plan and we do not intend to grant any future awards under the Class M Unit Plan. | |||||||||||||||||||||||||
Equity-Based Awards to Non-Employees-Class J Units of Holding Vehicles — In connection with the Acquisition, TMM Holdings issued Class J Units to the JH Entities as awards to non-employees for services rendered to TMM Holdings under the JHI Management Services Agreement (the “JHI Services Agreement”) between JH Investments, Inc. and TMM Holdings. Class J Units issued in the Acquisition were subject to performance-based vesting conditions based on whether the TPG Entities and the Oaktree Entities had achieved certain specified threshold rates of return on their Class A Units in TMM and those returns had been realized in cash. Because achievement of these performance-based vesting conditions was never probable, we determined that no expense for the value of the Class J Units was required to be recorded in our financial statements for any period prior to the occurance of the Reorganization Transactions. | |||||||||||||||||||||||||
As part of the Reorganization Transactions, the JH Entities directly or indirectly exchanged all of their respective Class J Units in TMM Holdings on a one-for-one basis for new equity interests of the TPG and Oaktree Holding Vehicles with terms that were substantially the same (other than with respect to certain vesting conditions) as the Class J Units of TMM Holdings surrendered for exchange. | |||||||||||||||||||||||||
In connection with the Reorganization Transactions, the JHI Services Agreement was terminated, resulting in a modification of the Class J Units (the removal of a service vesting condition) under ASC Topic 718-20-35-3, requiring the recognition of $80.2 million of indemnification and transaction expense in the accompanying Consolidated Statement of Operations for the year ended December 31, 2013. | |||||||||||||||||||||||||
Fair Value of Equity Awards Granted Prior to the IPO — For grants issued by TMM Holdings prior to the IPO, principles of option pricing theory were used to calculate the fair value of the subject grants. Under this methodology, the various classes of TMM Holdings Units were modeled as call options with distinct claims on the assets of TMM Holdings. The characteristics of the Unit classes, as determined by the unit agreements and the TMM Holdings limited partnership agreement, determined the uniqueness of each Unit’s claim on TMM Holdings’ assets relative to each other and the other components of TMM Holdings’ capital structure. Periodic valuations were performed in order to properly recognize equity-based compensation expense in the accompanying Consolidated Statements of Operations as general and administrative expenses. |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 15. RELATED-PARTY TRANSACTIONS |
From time to time, we may engage in transactions with entities or persons that are affiliated with us or one or more of the Principal Equityholders. There were $40.5 million and $16.0 million in real estate inventory acquisitions from such affiliates in the years ended December 31, 2014 and 2013, respectively. We believe such real estate transactions with related parties are in the normal course of operations and are executed at arm’s length as they are entered into at terms comparable to those with unrelated third parties. | |
In April 2014, one of our subsidiaries formed a joint venture, Marblehead Development Partners LLC (“MDP”), with affiliates of Oaktree and TPG to acquire and develop Marblehead, a coastal residential development in San Clemente, California consisting of 195.5 acres. The acquisition of the Marblehead site from LV Marblehead, a subsidiary owned by Lehman Brothers Holdings Inc., occurred on April 8, 2014. Our subsidiary has made an initial capital investment of approximately $46.8 million in MDP and is a minority capital partner and also the operating partner responsible for land development and homebuilding on the Marblehead site, for which we will be entitled to receive an incrementally greater return on our capital investment if the Marblehead project achieves certain economic performance thresholds. In July 2014, MDP entered into an approximately $264.2 million non-recourse construction and development loan with affiliates of Starwood Property Trust as initial lender and administrative agent to finance development and home construction at the Marblehead site. In connection with entering into the loan agreement, one of our subsidiaries provided the lenders with customary guarantees, including completion, indemnity and environmental guarantees subject to usual non-recourse terms. Home construction at the Marblehead site is expected to begin in 2015. | |
In December 2014, one of our subsidiaries formed a joint venture, Tramonto Development Partners, LLC, with an affiliate of Oaktree. Our subsidiary has made an initial capital investment of $16.5 million and is the administrative member and therefore designated to manage the administrative affairs of the joint venture. In connection with the formation of the joint venture, our subsidiary entered into a $54.5 million non-recourse construction and development loan to finance development and home construction within the Tramonto joint venture. In connection with entering into the loan agreement, one of our subsidiaries provided the lenders with customary guarantees, including completion, indemnity and environmental guarantees subject to usual non-recourse terms. An affiliate of TPG subsequently acquired a majority participation in the Tramonto loan. | |
Management and Advisory Fees — In connection with the Acquisition, affiliates of the Principal Equityholders entered into services agreements with TMC and Monarch relating to the provision of financial and strategic advisory services and consulting services. Subsidiaries of the Company paid affiliates of the Principal Equityholders a one-time transaction fee of $13.7 million for structuring the Acquisition. In addition, the Company paid a monitoring fee for management services and advice. The management services agreement with affiliates of TPG and Oaktree was terminated immediately prior to the IPO in exchange for an aggregate payment of $29.8 million split equally between affiliates of TPG and Oaktree, which was recorded as a transaction expense for the year ended December 31, 2013. Management fees for the year ended December 31, 2013 were $1.4 million, and such fees are included in general and administrative expenses in the accompanying Consolidated Statements of Operations. There were no similar fees in 2014. | |
In addition, in conjunction with the formation of TMM Holdings and in connection with the Acquisition, an affiliate of JH entered into the JHI Services Agreement relating to the provision of certain services to TMM Holdings. In consideration of these services, TMM Holdings granted to the JH affiliate an amount of Class J Units, subject to certain terms, conditions and restrictions contained in a unit award agreement and the TMM Holdings limited partnership agreement. Prior to the IPO, in connection with the Reorganization Transactions, the Company recorded a one-time, non-cash indemnification and transaction expense of $80.2 million for the year ended December 31, 2013 in respect of the modification of the Class J Units in TMM Holdings, resulting from the termination of the JHI Services Agreement, and the direct or indirect exchange (on a one-for-one basis) of the Class J Units in TMM Holdings for units having substantially equivalent performance vesting and distribution terms in the TPG and Oaktree Holding Vehicles. |
Employee_Benefit_Retirement_an
Employee Benefit, Retirement, and Deferred Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||
Employee Benefit, Retirement, and Deferred Compensation Plans | 16. EMPLOYEE BENEFIT, RETIREMENT, AND DEFERRED COMPENSATION PLANS | ||||||||||||||||
We maintain a defined contribution plan pursuant to Section 401(k) of the IRC (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. We match 100.0% of employees’ voluntary contributions up to 1% of eligible compensation, and 50.0% for each dollar contributed between 1% and 6% of eligible compensation. We contributed $2.4 million, $1.8 million, and $1.1 million to the 401(k) Plan for the year ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Taylor Woodrow (USA) U.K. Supplementary Pension Plan is an unfunded, nonqualified pension plan for several individuals who transferred from the Company’s U.K. related companies to the employment of Taylor Woodrow on or before October 1, 1995. The recorded obligations represent benefits accrued by these individuals for service with Taylor Woodrow prior to the employees’ participation in the U.S. pension plan minus any benefit accrued in any other pension-type benefit plans sponsored by or contributed to a Taylor Woodrow Group-related company for the period of service prior to participation in the U.S. plan. In accordance with the plan document, the participants are entitled to a fixed monthly pension and a fixed survivor benefit after the age of 65. At December 31, 2014 and 2013, we accrued $1.6 million and $1.8 million, respectively, for obligations under this plan. These obligations are recorded in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. | |||||||||||||||||
We also maintain the Taylor Morrison Cash Balance Pension Plan (the “U.S. Cash Balance Plan”). This is a consolidated defined benefit plan arising from the 2007 merger of the parent companies of Taylor Woodrow Holdings (USA), Inc. and Morrison Homes, Inc. All full-time employees were eligible to participate in this plan. The contribution percentage is based on participant’s age and ranges from 2% to 4% of eligible compensation, plus 1% of eligible compensation over the social security wage base. We contributed to the plan $1.4 million, $0.7 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014 and 2013, the unfunded status of the plan was $10.2 million and 5.9 million, respectively. These obligations are recorded in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. Effective December 31, 2010, the U.S. Cash Balance Plan was amended to freeze participation so that no new or reemployed employees may become participants and to freeze all future benefit accruals to existing participants. | |||||||||||||||||
The changes in the total benefit obligation and in the fair value of assets and the funded status of the U.S. Cash Balance Plan are as follows (in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Change in benefit obligations: | |||||||||||||||||
Benefit obligation — beginning of period | $ | 29,848 | $ | 33,592 | |||||||||||||
Interest on liabilities | 1,345 | 1,294 | |||||||||||||||
Benefits paid | (570 | ) | (1,025 | ) | |||||||||||||
Settlements | (3,229 | ) | — | ||||||||||||||
Actuarial loss (gain) | 6,535 | (4,013 | ) | ||||||||||||||
Benefit obligation — end of period | $ | 33,929 | $ | 29,848 | |||||||||||||
Change in fair value of plan assets: | |||||||||||||||||
Fair value of plan assets — beginning of period | 23,931 | 21,738 | |||||||||||||||
Return on plan assets | 2,203 | 2,548 | |||||||||||||||
Employer contributions | 1,357 | 670 | |||||||||||||||
Benefits paid | (3,800 | ) | (1,025 | ) | |||||||||||||
Fair value of plan assets — end of period | $ | 23,691 | $ | 23,931 | |||||||||||||
Unfunded status — end of period | $ | 10,238 | $ | 5,917 | |||||||||||||
The significant weighted-average assumptions adopted in measuring the benefit obligations and net periodic pension costs are as follows: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate: | |||||||||||||||||
Net periodic pension cost | 4.49 | % | 3.9 | % | 4.31 | % | |||||||||||
Pension obligation | 3.98 | 4.8 | 3.81 | ||||||||||||||
Expected return on plan assets | 7 | 7 | 7 | ||||||||||||||
The overall expected long-term rate of return on plan assets assumption is determined based on the plan’s targeted allocation among asset classes and the weighted-average expected return of each class. The expected return of each class is determined based on the current yields on inflation-indexed bonds, current forecasts of inflation, and long-term historical real returns. | |||||||||||||||||
Components of net periodic pension cost of the U.S. Cash Balance Plan are as follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Interest cost | $ | 1,345 | $ | 1,294 | $ | 1,326 | |||||||||||
Amortization of net actuarial loss | 34 | 133 | 108 | ||||||||||||||
Expected return on plan assets | (1,621 | ) | (1,499 | ) | (1,358 | ) | |||||||||||
Net settlement loss | 609 | — | — | ||||||||||||||
Net periodic pension cost | $ | 367 | $ | (72 | ) | $ | 76 | ||||||||||
Accumulated other comprehensive loss of $7.9 million and $2.6 million as of December 31, 2014 and 2013, respectively, consists of the net actuarial loss in the current year partially offset by the net settlement loss realized in the current year and the net actuarial gain that arose during the year ended December 31, 2013, combined with the net actuarial loss that arose during the year ended December 31, 2012, and has not yet been recognized as a component of net periodic pension cost. Net settlement losses are included in general and administrative expenses in the accompanying Consolidated Statements of Operations. We expect approximately $0.1 million of the amounts in accumulated other comprehensive loss will be recognized into net periodic pension cost during the year ending December 31, 2015. | |||||||||||||||||
The estimated future benefit payments in the next five years and the five years thereafter in aggregate are as follows (dollars in thousands): | |||||||||||||||||
Years Ending December 31, | |||||||||||||||||
2015 | $ | 989 | |||||||||||||||
2016 | 984 | ||||||||||||||||
2017 | 1,135 | ||||||||||||||||
2018 | 1,423 | ||||||||||||||||
2019 | 1,181 | ||||||||||||||||
2020–2024 | 7,189 | ||||||||||||||||
We expect to contribute $0.9 million to the U.S. Cash Balance Plan in the year ending December 31, 2015. | |||||||||||||||||
The fair value of the U.S. Cash Balance Plan’s assets by asset categories is as follows (in thousands): | |||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. equity securities | $ | 8,820 | $ | — | $ | — | $ | 8,820 | |||||||||
International equity securities | 2,937 | — | — | 2,937 | |||||||||||||
Fixed-income securities | 10,391 | — | — | 10,391 | |||||||||||||
Cash | 1,090 | — | — | 1,090 | |||||||||||||
Other | 453 | — | — | 453 | |||||||||||||
Total | $ | 23,691 | $ | — | $ | — | $ | 23,691 | |||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. equity securities | $ | 8,677 | $ | — | $ | — | $ | 8,677 | |||||||||
International equity securities | 2,917 | — | — | 2,917 | |||||||||||||
Fixed-income securities | 10,757 | — | — | 10,757 | |||||||||||||
Cash | 1,089 | — | — | 1,089 | |||||||||||||
Other | 491 | — | — | 491 | |||||||||||||
Total | $ | 23,931 | $ | — | $ | — | $ | 23,931 | |||||||||
We believe the U.S. Cash Balance Plan’s assets are invested in a manner consistent with generally accepted standards of fiduciary responsibility. Taylor Morrison’s primary investment objective is to build and maintain the plan’s assets through employer contributions and investment returns to satisfy legal requirements and benefit payment requirements when due. Because of the long-term nature of the plan’s obligations, Taylor Morrison has the following goals in managing the plan: long-term (i.e., five years and more) performance objectives, maintenance of cash reserves sufficient to pay benefits, and achievement of the highest long-term rate of return practicable without taking excessive risk that could jeopardize the plan’s funding policy or subject us to undue funding volatility. The investment portfolio contains a diversified blend of equity, fixed-income securities, and cash, though allocation will favor equity investments in order to reach the U.S. Cash Balance Plan’s stated objectives. One of the U.S. Cash Balance Plan’s investment criteria is that over a complete market cycle, each of the investment funds should typically rank in the upper half of the universe of all active investment funds in the same asset class with similar investment objectives. Investments in commodities, private placements, or letter stock are not permitted. The equity securities are diversified across U.S. and international stocks, as well as growth and value. Investment performance is measured and monitored on an ongoing basis through quarterly portfolio reviews and annual reviews relative to the objectives and guidelines of the plan. | |||||||||||||||||
The range of target allocation percentages of plan assets of the U.S. Cash Balance Plan is as follows: | |||||||||||||||||
Minimum | Maximum | Target | |||||||||||||||
U.S. equity securities | 37 | % | 47 | % | 42 | % | |||||||||||
International equity securities | 8 | 18 | 13 | ||||||||||||||
Fixed-income securities | 35 | 45 | 40 | ||||||||||||||
Other | — | 10 | 5 | ||||||||||||||
100 | % | ||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income | 17. ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The table below provides the components of accumulated other comprehensive income (loss) (dollars in thousands): | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Total Post- | Foreign | Non-controlling | Total | ||||||||||||||
Retirement | Currency | Interest in | |||||||||||||||
Benefits | Translation | Principal | |||||||||||||||
Adjustments | Adjustments | Equityholders | |||||||||||||||
Balance, beginning of period | $ | 3,987 | $ | (16,727 | ) | $ | 12,288 | $ | (452 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (6,303 | ) | (35,421 | ) | — | (41,724 | ) | ||||||||||
Gross amounts reclassified from accumulated other comprehensive loss | 43 | — | — | 43 | |||||||||||||
Net settlement loss | 609 | — | — | 609 | |||||||||||||
Foreign currency translation | (55 | ) | — | — | (55 | ) | |||||||||||
Income tax (expense) benefit | 2,411 | — | — | 2,411 | |||||||||||||
Other comprehensive income (loss) net of tax | $ | (3,295 | ) | $ | (35,421 | ) | $ | — | $ | (38,716 | ) | ||||||
Gross amounts reclassified within accumulated other comprehensive income (loss) | — | — | 28,258 | 28,258 | |||||||||||||
Balance, end of period | $ | 692 | $ | (52,148 | ) | $ | 40,546 | $ | (10,910 | ) | |||||||
Year Ended December 31, 2013 | |||||||||||||||||
Total Post- | Foreign | Non-controlling | Total | ||||||||||||||
Retirement | Currency | Interest in | |||||||||||||||
Benefits | Translation | Principal | |||||||||||||||
Adjustments | Adjustments | Equityholders | |||||||||||||||
Balance, beginning of period | $ | (12,088 | ) | $ | (22,277 | ) | $ | — | $ | (34,365 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 6,107 | (17,686 | ) | — | (11,578 | ) | |||||||||||
Gross amounts reclassified from accumulated other comprehensive income | 177 | — | 3,496 | 3,673 | |||||||||||||
Foreign currency translation | 199 | — | — | 199 | |||||||||||||
Income tax (expense) benefit | (2,496 | ) | 959 | — | (1,537 | ) | |||||||||||
Other comprehensive income (loss) net of tax | $ | 3,987 | $ | (16,727 | ) | $ | 3,496 | $ | (9,244 | ) | |||||||
Gross amounts reclassified within accumulated other comprehensive income (loss) | 12,088 | 22,277 | 8,792 | 43,157 | |||||||||||||
Balance, end of period | $ | 3,987 | $ | (16,727 | ) | $ | 12,288 | $ | (452 | ) | |||||||
Reclassifications for the amortization of the employee retirement plans are included in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. |
Operating_and_Reporting_Segmen
Operating and Reporting Segments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Operating and Reporting Segments | 18. OPERATING AND REPORTING SEGMENTS | ||||||||||||||||||||||||
The Company has ten homebuilding operating divisions which are aggregated into two reportable homebuilding segments. Prior to the disposal of our Monarch business, we had three reportable homebuilding segments. These segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer service. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics. We also have a mortgage and financial services segment. We have no inter-segment sales as all sales are to external customers. Our reporting segments are as follows: | |||||||||||||||||||||||||
East | Houston (which includes a Taylor Morrison division and a Darling Homes division), Austin, Dallas, North Florida and West Florida | ||||||||||||||||||||||||
West | Phoenix, Northern California, Southern California and Denver | ||||||||||||||||||||||||
Mortgage Operations | Mortgage and Financial Services (TMHF) | ||||||||||||||||||||||||
Management primarily evaluates segment performance based on GAAP gross margin, defined as homebuilding and land revenue less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by, or allocated to each segment, including impairments. 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, excluding discontinued operations, is as follows: | |||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
(In thousands) | East | West | Mortgage | Corporate | Total | ||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 1,556,598 | $ | 1,116,341 | $ | 35,493 | $ | — | $ | 2,708,432 | |||||||||||||||
Gross Margin | 341,481 | 208,943 | 15,822 | — | 566,246 | ||||||||||||||||||||
Selling, general and administrative expense | (131,048 | ) | (66,880 | ) | — | (52,122 | ) | (250,050 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 3,609 | 386 | 1,410 | — | 5,405 | ||||||||||||||||||||
Interest and other (expense) income | (16,690 | ) | 1,604 | 1 | (4,522 | ) | (19,607 | ) | |||||||||||||||||
Income before income taxes | $ | 197,352 | $ | 144,053 | $ | 17,233 | $ | (56,644 | ) | $ | 301,994 | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
(In thousands) | East | West | Mortgage | Corporate | Total | ||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 1,117,298 | $ | 768,412 | $ | 30,371 | $ | — | $ | 1,916,081 | |||||||||||||||
Gross Margin | 227,695 | 174,245 | 13,925 | — | 415,865 | ||||||||||||||||||||
Selling, general and administrative expense | (102,582 | ) | (52,521 | ) | — | (49,514 | ) | (204,617 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 1,788 | (23 | ) | 1,130 | — | 2,895 | |||||||||||||||||||
Indemnification and transaction expenses | — | — | — | (195,773 | ) | (195,773 | ) | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (10,141 | ) | (10,141 | ) | ||||||||||||||||||
Interest and other (expense) income | (4,506 | ) | (714 | ) | 3 | 1,533 | (3,684 | ) | |||||||||||||||||
Income before income taxes | $ | 122,395 | $ | 120,987 | $ | 15,058 | $ | (253,895 | ) | $ | 4,545 | ||||||||||||||
(In thousands) | Year Ended December 31, 2012 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Total | |||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 558,523 | $ | 460,798 | $ | 21,861 | $ | — | $ | 1,041,182 | |||||||||||||||
Gross Margin | 111,424 | 84,622 | 10,595 | — | 206,641 | ||||||||||||||||||||
Selling, general and administrative expense | (50,272 | ) | (37,240 | ) | — | (24,753 | ) | (112,265 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 291 | 237 | 686 | — | 1,214 | ||||||||||||||||||||
Indemnification and transaction expenses | — | — | — | (13,034 | ) | (13,034 | ) | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (7,953 | ) | (7,953 | ) | ||||||||||||||||||
Interest and other (expense) income | 561 | 168 | 5 | (3,680 | ) | (2,946 | ) | ||||||||||||||||||
Income before income taxes | $ | 62,004 | $ | 47,787 | $ | 11,286 | $ | (49,420 | ) | $ | 71,657 | ||||||||||||||
(In thousands) | December 31, 2014 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 1,275,192 | $ | 1,277,673 | $ | — | $ | — | $ | — | $ | 2,552,865 | |||||||||||||
Investments in unconsolidated entities | 57,138 | 51,909 | 1,244 | — | — | 110,291 | |||||||||||||||||||
Other assets | 166,854 | 37,989 | 204,685 | 483,984 | 576,445 | 1,469,957 | |||||||||||||||||||
Total assets | $ | 1,499,184 | $ | 1,367,571 | $ | 205,929 | $ | 483,984 | $ | 576,445 | $ | 4,133,113 | |||||||||||||
(In thousands) | December 31, 2013 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 1,048,091 | $ | 1,002,500 | $ | — | $ | — | $ | — | $ | 2,050,591 | |||||||||||||
Investments in unconsolidated entities | 20,191 | — | 1,244 | — | — | 21,435 | |||||||||||||||||||
Other assets | 103,107 | 27,842 | 110,004 | 462,461 | 663,118 | 1,366,532 | |||||||||||||||||||
Total assets | $ | 1,171,389 | $ | 1,030,342 | $ | 111,248 | $ | 462,461 | $ | 663,118 | $ | 3,438,558 | |||||||||||||
(In thousands) | 31-Dec-12 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 741,911 | $ | 647,877 | $ | — | $ | — | $ | — | $ | 1,389,788 | |||||||||||||
Investments in unconsolidated entities | 723 | — | 532 | — | — | 1,255 | |||||||||||||||||||
Other assets | 109,611 | 22,069 | 100,200 | 478,364 | 636,769 | 1,347,013 | |||||||||||||||||||
Total assets | $ | 852,245 | $ | 669,946 | $ | 100,732 | $ | 462,461 | $ | 636,769 | $ | 2,738,056 | |||||||||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data | 19. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The selected quarterly financial data does not agree to our previously issued quarterly reports as a result of the reclassification of our Canadian business to discontinued operations during the fourth quarter of 2014. | |||||||||||||||||
Quarterly results are as follows (in thousands, except per share data): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter 2014 | Quarter 2014 | Quarter 2014 | Quarter 2014 | ||||||||||||||
Total revenues | $ | 470,475 | $ | 597,008 | $ | 629,196 | $ | 1,011,753 | |||||||||
Gross margin | 103,381 | 127,352 | 131,951 | 203,562 | |||||||||||||
Income from continuing operations before income taxes | 47,956 | 65,508 | 69,050 | 119,480 | |||||||||||||
Net income before allocation to non-controlling interests | 41,296 | 55,499 | 66,175 | 104,531 | |||||||||||||
Net income available to Taylor Morrison Home Corporation (1) | 10,932 | 14,816 | 17,846 | 27,875 | |||||||||||||
Basic and diluted earnings per share | $ | 0.33 | $ | 0.45 | $ | 0.54 | $ | 0.84 | |||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter 2013 | Quarter 2013 | Quarter 2013 | Quarter 2013 | ||||||||||||||
Total revenues | $ | 335,697 | $ | 450,366 | $ | 491,018 | $ | 639,000 | |||||||||
Gross margin | 67,895 | 90,958 | 104,804 | 152,208 | |||||||||||||
Income (loss) from continuing operations before income taxes | 28,129 | (160,601 | ) | 52,820 | 84,197 | ||||||||||||
Net income (loss) before allocation to non-controlling interests | 24,337 | (78,287 | ) | 52,632 | 96,186 | ||||||||||||
Net income available to Taylor Morrison Home Corporation (1) | — | 5,327 | 14,263 | 25,830 | |||||||||||||
Basic and diluted earnings per share | N/A | $ | 0.16 | $ | 0.43 | $ | 0.79 | ||||||||||
(1) | Continuing and discontinued operations |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 20. 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 $315.6 million and $156.9 million as of December 31, 2014 and 2013, 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, 2014 will be drawn upon. | |||||
Purchase Commitments — We are subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development, and sale of real estate in the routine conduct of its business. We have a number of land purchase option contracts, generally through cash deposits, 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 the option contracts are generally limited to the forfeiture of the related non-refundable cash deposits. At December 31, 2014 and 2013, we had the right to purchase approximately 5,372 and 6,570 lots under land option and land purchase contracts, respectively, which represents an aggregate purchase price of $323.5 million and $500.9 million at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, we had $34.5 million and $38.0 million in land deposits related to land options and land purchase contracts, respectively. | |||||
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, 2014 and December 31, 2013, our legal accruals were $0.9 million and $1.9 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. 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. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the recorded reserves relating to such matter. | |||||
Operating Leases — We lease office facilities and certain equipment under operating lease agreements. In most cases, we expect that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Approximate future minimum payments under the non-cancelable leases in effect at December 31, 2014, are as follows (in thousands): | |||||
Years Ending December 31, | Lease | ||||
Payments | |||||
2015………………………………………………………………………. | $ | 5,489 | |||
2016………………………………………………………………………. | 4,138 | ||||
2017………………………………………………………………………. | 3,520 | ||||
2018………………………………………………………………………. | 2,743 | ||||
2019………………………………………………………………………. | 1,710 | ||||
Thereafter………………………………………………………………… | 2,954 | ||||
Total………………………………………………………………………. | $ | 20,554 | |||
Rent expense under non-cancelable operating leases for the year ended December 31, 2014, 2013 and 2012, was $4.2 million, $3.7 million and $2.6, respectively, and is included in general and administrative expenses in the accompanying Consolidated Statements of Operations. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. SUBSEQUENT EVENTS |
On January 28, 2015 we closed on the sale of Monarch Corporation, our Canadian operating segment, to an affiliate of Mattamy Homes Limited (“Mattamy”). Mattamy delivered a cash purchase price of CAD $335 million at closing, which is subject to customary post-closing adjustments, and ordinary and customary indemnifications. Immediately prior to the closing, CAD $235 million of cash at Monarch was distributed to Monarch Parent, for total proceeds of CAD $570 million. The purchase premium of Monarch was approximately CAD $102 million, which will result in a net gain to be recorded in the first quarter of 2015 (net of related costs and tax). As a result of the sale, we do not have significant continuing involvement with Monarch. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), include the accounts of TMHC and our consolidated subsidiaries, other entities where we have a controlling financial interest, and of variable interest entities if we are deemed the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation. | |||
Unless otherwise stated, amounts are shown in U.S. dollars. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date, and revenues and expenses are translated at average rates of exchange prevailing during the period. Translation adjustments resulting from this process are recorded to accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets and Statements of Stockholders’ Equity. | ||||
Reclassifications | Reclassifications — Certain prior period amounts have been reclassified to conform with current period financial statement presentation. | |||
Discontinued Operations | Discontinued Operations — As a result of our decision in December 2014 to dispose of our Canadian operating segment, specifically Monarch Corporation, the operating results and financial position of the Monarch business are presented as discontinued operations for all periods presented (see Note 4 — Discontinued Operations and Note 21 — Subsequent Events). We determined that Monarch should be presented as a discontinued operation based on a committed plan to sell, and our determination that the sale of the entity was probable at December 31, 2014. | |||
Non-controlling interests | Non-controlling interests — In the Reorganization Transactions, the Company became the sole owner of the general partner of New TMM. As the general partner of New TMM, the Company exercises exclusive and complete control over New TMM. Consequently: | |||
• | For periods subsequent to April 9, 2013, the Company consolidates New TMM and records a non-controlling interest in its Consolidated Balance Sheets for the economic interests in New TMM, that are directly or indirectly held by the Principal Equityholders or by members of management and the Board of Directors; and | |||
• | The Consolidated Financial Statements as of and for the year ended December 31, 2012 reflect the consolidated operations of TMM Holdings only as there were no operating activities or equity transactions in TMHC during that period. | |||
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 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. 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 and amounts on deposit with financial institutions in Canada that are in excess of the Canadian Deposit Insurance Corporation federally insured limits of up to $100,000. No losses have been experienced to date. | |||
In addition, the Company is exposed to credit risk to the extent that mortgage and loan borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the mortgaged property or land that was sold to the buyer. | ||||
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, 2014, 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 — Restricted cash at December 31, 2014 consists of $1.3 million pledged to collateralize mortgage credit lines and at December 31, 2013 consists of $2.0 million pledged to collateralize mortgage credit lines through certificates of deposit known as Certificate of Deposit Account Registry Service (CDARS). | |||
Real Estate Inventory | Real Estate Inventory — Inventory consists of raw land, land under development, land held for future development, homes under construction, completed homes and model homes. Inventory is carried at cost, less impairment, if applicable. 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 construction costs are accumulated and charged to cost of sales at home closing using the specific identification method. Land acquisition, development, interest, taxes and overhead costs are allocated to homes and units using methods that approximate the relative sales value method. 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 (cost to complete) are generally allocated to the remaining homes on a prospective basis. For those communities that have been temporarily closed or where development has been discontinued, costs are expensed as incurred until operations resume. | |||
We review our real estate inventory for indicators of impairment by community on a quarterly basis. In conducting our impairment analysis, we evaluate the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. If indicators of impairment are present for a community, we perform an additional analysis to determine if the carrying value of the assets in that community exceeds the undiscounted cash flows estimated to be generated by those assets. If the carrying value of the assets does exceed their estimated undiscounted cash flows, the assets are deemed to be impaired and are recorded at fair value as of the assessment date. An impairment charge is taken in the period with a charge to cost of home closings. | ||||
Critical assumptions in our cash flow model include: (i) the projected absorption pace for home sales in the community, based on general economic conditions that will have an impact on the market in which the community is located and competition within the market; (ii) the expected sales prices and sales incentives to be offered; (iii) costs to build and deliver homes in the community, including, but not limited to, land and land development costs, home construction costs, interest costs and overhead costs; and (iv) alternative uses for the property, such as the possibility of a sale of the entire community to another builder or the sale of individual home sites. Consideration is also given to development budgets and sales pace and price. Discount rates are determined using a base rate, which may be increased depending on the total remaining lots in a community, the development status of the land, the market in which it is located and if the product is higher-priced with potentially lower demand. Historically, our discount rates have been in the range of 12.0% to 18.0%. Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. For the years ended December 31, 2014, 2013 and 2012, no impairment charges were recorded. | ||||
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 temporary market conditions to improve. The decision may be based on financial and/or operational metrics as determined by us. If we decide to cease developing a project, we will impair such project if necessary to its fair value as discussed above and then cease future development and/or 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 assets typically include subjective 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, 2014, we had 19 inactive projects with a carrying value of $28.0 million of which $6.1 million and $21.9 million is in the East and West segments, respectively. During the year ended December 31, 2014, we placed one community into inactive status and moved one community into active status. | ||||
As discussed in this note under Investments in Consolidated and Unconsolidated Entities — Consolidated Option Agreements, in the ordinary course of business, we acquire various specific performance lots through existing lot option agreements. Real estate not owned under certain of these contracts is consolidated into real estate inventory with a corresponding liability in liabilities attributable to consolidated option agreements in the Consolidated Balance Sheets. | ||||
Land Deposits | Land Deposits — We provide deposits related to land options and land purchase contracts, which are capitalized when paid and classified as land deposits until the associated property is purchased. To the extent the deposits are non-refundable, they are charged to expense if the land acquisition process is terminated or no longer determined probable. We review the likelihood of the acquisition of contracted lots in conjunction with our periodic real estate inventory impairment analysis. Non-refundable deposits are recorded as a component of 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. | |||
Mortgages Receivable | Mortgages Receivable — Mortgages receivable consists of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage brokerage subsidiary, TMHF. Mortgages receivable are held for sale and are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. | |||
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net | |||
Our prepaid expenses consist primarily of unamortized debt issuance costs, sales commissions, sales presentation centers and model home costs, such as design fees and furniture. At December 31, 2014 and 2013, prepaid debt issuance costs consisted of $26.9 million and $26.7 million, respectively, of aggregate unamortized costs related to the various Senior Notes issuances and our revolving credit facility. During the year ended December 31, 2014 and 2013, we amortized $5.9 million and $5.3 million of such debt issue costs, respectively. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the units to which they relate. The model home and sales presentation centers costs are paid in advance and amortized over the life of the project on a per-unit basis, or a maximum of three years. | ||||
Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs and other deferred costs. | ||||
Other Receivables, net | Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development districts and utility deposits. Allowances of $0.3 and $0.5 million at December 31, 2014 and 2013, respectively, are maintained for potential credit losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are generally recorded in other expense, net when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. | |||
Investments in Unconsolidated and Consolidated Entities | Investments in Unconsolidated and Consolidated Entities | |||
Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 they have substantive participating rights that preclude the presumption of control. For joint ventures accounted for using the equity method, our share of net earnings or losses is included in equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in investments in unconsolidated entities on the Consolidated Balance Sheets. | ||||
Consolidated Joint Ventures — We are also involved in several joint ventures with independent third parties for land development and homebuilding activities. If a joint venture is determined to be a variable interest entity (“VIE”) and we are deemed to be the primary beneficiary, we consolidate the joint venture. For these entities, their financial statements are consolidated in the accompanying Consolidated Financial Statements and the other partners’ equity are recorded as non-controlling interests — joint ventures. | ||||
Consolidated Option Agreements — In the ordinary course of business, we enter into land and lot option purchase contracts in order to procure land or lots for the construction of homes. Lot option contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risks associated with land ownership and development. In accordance with Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” we have concluded that when we enter into an option or purchase agreement to acquire land or lots and pay a non-refundable deposit, a VIE may be created because we may be deemed to have provided subordinated financial support and we will potentially absorb some or all of an entity’s expected losses if they occur. For each VIE, we assess whether we are the primary beneficiary by first determining if we have the ability to control the activities of the VIE that most significantly affect its economic performance. Such activities include, but are not limited to, the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with us; and the ability to change or amend the existing option contract with the VIE. If we are not able to control such activities, it is not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE’s losses or, if no party absorbs the majority of such losses, if we will potentially benefit from a significant amount of the VIE’s expected returns. | ||||
We evaluate our investments in unconsolidated entities for indicators of impairment during each reporting period. 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 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 the Company believes that the decline in the fair value of the investment is temporary, then no impairment is recorded. We did not record any impairment charges for the years ended December 31, 2014, 2013 or 2012. | ||||
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 both 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 $3.0 million for the year ending December 31, 2014, $2.1 million for the year ending December 31, 2013 and $2.9 million for the year ended December 31, 2012. Depreciation expense is recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations. | ||||
Intangible Assets, net | Intangible Assets, net — Intangible assets consist of tradenames, lot options and land supplier relationships, and non-compete covenants. We sell our homes under a number of trade names. The fair value of acquired intangible assets was determined using the income approach, and our trade names are being amortized on a straight line basis over ten years. | |||
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 instead be assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. For the years ended December 31, 2014 and 2013, there have been no additions to goodwill. For the years ended December 31, 2014, 2013 and 2012, there has been no impairment of goodwill. | |||
Insurance Costs, Self-Insurance Reserves and Warranty Reserves | Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits under our workers’ compensation, automobile, and general liability insurance policies, and we record expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability limits are $50 million per occurrence in the annual aggregate and apply in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our sub-contractors and design professionals to indemnify us for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered during a period of time up to ten years following the sale of a home, coverage for premise operations risk, and property coverage. 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. | |||
We offer warranties on homes that generally provide for a limited one-year warranty to cover various defects in workmanship or materials or to cover structural construction defects. We may also facilitate a ten-year warranty in certain markets or to comply with regulatory requirements. 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 arrangement, therefore, it is accounted for in accordance with ASC Topic 450, “Contingencies.” In accordance with ASC 450, 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 if all other criteria for revenue recognition have been met. Thus, the warranty would not be considered a separate deliverable in the arrangement since it is not priced apart from the home. As a result, we accrue the estimated costs to fulfill the warranty obligation in accordance with ASC 450 at the time a home closes, as a component of cost of home closings. | ||||
Our reserves 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. Reserves are recorded in accrued expenses and other liabilities on our Consolidated Balance Sheets. | ||||
Non-controlling Interests - Principal Equityholders | Non-controlling Interests — Principal Equityholders — In the Reorganization Transactions immediately prior to the Company’s IPO, the existing holders of TMM Holdings limited partnership interests (the Principal Equityholders, members of management and the Board of Directors), exchanged their limited partnership interests for limited partnership interests of a newly formed limited partnership, New TMM (the “New TMM Units”). For each New TMM Unit received in the exchange, the Principal Equityholders, members of management and the Board of Directors also received, directly or indirectly, a corresponding number of shares of the Company’s Class B common stock, par value $0.00001 per share (the “Class B Common Stock”). All of the Company’s Class B Common Stock is owned by the Principal Equityholders, members of management and the Board of Directors. The Company’s Class B Common Stock has voting rights but no economic rights. One share of Class B Common Stock, together with one New TMM Unit is exchangeable into one share of the Company’s Class A Common Stock. The Company sold Class A Common Stock to the investing public in its initial public offering. The proceeds received in the initial public offering were used by the Company to purchase New TMM Units, such that the Company owns an amount of New TMM Units equal to the amount of the Company’s outstanding shares of Class A Common Stock. The Company’s Class A Common Stock has voting rights and economic rights. Also, in the Reorganization Transactions, the Company became the sole owner of the general partner of New TMM. As the general partner of New TMM, the Company exercises exclusive and complete control over New TMM. Consequently, the Company consolidates New TMM and records a non-controlling interest in its Consolidated Balance Sheet for the economic interests in New TMM, directly or indirectly, held by the Principal Equityholders, members of management and the Board of Directors. | |||
Pre-IPO activity is for the period prior to April 10, 2013 while post-IPO is activity subsequent to that date. No similar reconciliation is needed for the year-ended December 31, 2014 as we were a publicly traded company for the entirety of the year. | ||||
Stock Based Compensation | Stock Based Compensation | |||
We account for stock-based compensation in accordance with ASC Topic 718-10, “Compensation — Stock Compensation.” The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model. These models require the input of highly subjective assumptions. This guidance also requires us to estimate forfeitures in calculating the expense related to stock-based compensation. | ||||
Revenue Recognition | Revenue Recognition: | |||
Home closings revenue, net — Revenue from home sales are recorded using the completed-contract method of accounting at the time each home is closed, delivered, title and possession are transferred to the buyer, there is no significant continuing involvement with the home, risk of loss has transferred, and the buyer has demonstrated sufficient initial and continuing investment in the property. A home is considered closed when escrow closes and funds have transferred from the buyer or mortgage company to us. | ||||
We typically grant our homebuyers certain sales incentives, including cash discounts, incentives on options included in the home, option upgrades, and seller-paid financing or closing costs. Incentives and discounts are accounted for as a reduction in the sales price of the home and home closings revenue is shown net of discounts. For the years ended December 31, 2014, 2013 and 2012, discounts were $150.9 million, $129.0 million and $104.8 million, respectively. We also receive rebates from certain vendors and these rebates are accounted for as a reduction to cost of home closings. | ||||
Land closings revenue — Revenue from land sales are recognized when title is transferred to the buyer, there is no significant continuing involvement, and the buyer has demonstrated sufficient initial and continuing investment in the property sold. If the buyer has not made an adequate initial or continuing investment in the property, the profit on such sales is deferred until these conditions are met. | ||||
Mortgage operations revenue — Loan origination fees (including title fees, points, closing costs) are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. All of the loans TMHF originates are sold to third party investors within a short period of time, within 20 business days, 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,” since TMHF does not have continuing involvement with the transferred assets, 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. | ||||
Advertising Costs | Advertising Costs — We expense advertising costs as incurred. Advertising costs were $26.1 million, $21.1 million and $12.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements — In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for us for our fiscal year ending December 31, 2017. The adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements or disclosures. | |||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (“ASU 2014-12”), which provides guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 is effective beginning January 1, 2016. We do not anticipate that the adoption of ASU 2014-12 will have a material effect on our consolidated financial statements or disclosures. | ||||
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (“ASU 2014-11”), which requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 is effective beginning January 1, 2015. We do not anticipate that the adoption of ASU 2014-11 will have a material effect on our consolidated financial statements or disclosures. | ||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective beginning January 1, 2017 and, at that time we will adopt the new standard under either the full retrospective approach or the modified retrospective approach. Early adoption is not permitted. We are currently evaluating the method and impact the adoption of ASU 2014-09 will have our consolidated financial statements and disclosures. | ||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Pursuant to ASU 2014-08, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as a discontinued operation. If the disposal does qualify as a discontinued operation under ASU 2014-08, the entity will be required to provide expanded disclosures. ASU 2014-08 is effective beginning November 1, 2015. We plan to adopt this ASU when it becomes effective. | ||||
Earnings Per Share | Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of Class A Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all shares of Class B Common Stock and their corresponding New TMM Units were exchanged for Class A Common Stock and if equity awards to issue common stock that are dilutive were exercised. | |||
The shares of Class B Common Stock have voting rights however, do not have economic rights, no rights to dividends or distribution on liquidation, and therefore, are not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share. Additionally, the income from Principal Equityholders’ non-controlling interest and the related Class B Common Stock may produce a slight anti-dilutive effect on diluted earnings per common share. | ||||
Fair Value Disclosures | We have adopted ASC Topic 820, “Fair Value Measurements” for valuation of financial instruments. ASC 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 mortgages receivable is derived from negotiated rates with partner lending institutions. The fair value of our mortgage borrowings, loans receivable, loans payable and other borrowings and the borrowings under our Restated Revolving Credit Facility approximate carrying value due to their short term nature and variable interest rate terms. | ||||
Operating and Reporting Segments | The Company has ten homebuilding operating divisions which are aggregated into two reportable homebuilding segments. Prior to the disposal of our Monarch business, we had three reportable homebuilding segments. These segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer service. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics. We also have a mortgage and financial services segments. We have no inter-segment sales as all sales are to external customers. Our reporting segments are as follows: | |||
East | Houston (which includes a Taylor Morrison division and a Darling Homes division), Austin, Dallas, North Florida and West Florida | |||
West | Phoenix, Northern California, Southern California and Denver | |||
Mortgage Operations | Mortgage and Financial Services (TMHF) | |||
Management primarily evaluates segment performance based on GAAP gross margin, defined as homebuilding and land revenue less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by, or allocated to each segment, including impairments. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following (in thousands): | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Prepaid expenses | $ | 75,700 | $ | 62,822 | |||||||||
Other assets | 13,510 | 17,099 | |||||||||||
Total prepaid expenses and other assets, net | $ | 89,210 | $ | 79,921 | |||||||||
Activity in Non-controlling Interests - Principal Equityholders and Former Controlling Interests | Activity in the Non-controlling interests – Principal Equityholders and former controlling interests net income (loss) amounts is as follows (in thousands): | ||||||||||||
Consolidated | Continuing | Discontinued | |||||||||||
Operations | Operations | ||||||||||||
Pre-IPO Non-controlling Interests — Principal Equityholders | $ | 123,532 | $ | 81,403 | $ | 42,129 | |||||||
Post-IPO Controlling Interest | (73,953 | ) | (82,845 | ) | 8,892 | ||||||||
Non-controlling Interests — Principal Equityholders | $ | 49,579 | $ | (1,442 | ) | $ | 51,021 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of Earnings Per Common Share | Diluted earnings per share gives effect to the potential dilution that could occur if all shares of Class B Common Stock and their corresponding New TMM Units were exchanged for Class A Common Stock and if equity awards to issue common stock that are dilutive were exercised (in thousands, except per share amounts): | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income available to TMHC – basic | $ | 71,469 | $ | 45,420 | |||||
Income from discontinued operations, net of tax | 41,902 | 66,513 | |||||||
Income from discontinued operations, net of tax attributable to non-controlling interest – Principal Equityholders | (30,594 | ) | (51,021 | ) | |||||
Net income from discontinued operations — basic | $ | 11,308 | $ | 15,492 | |||||
Net income from continuing operations — basic | $ | 60,161 | $ | 29,928 | |||||
Net income from continuing operations — basic | $ | 60,161 | $ | 29,928 | |||||
Net income from continuing operations attributable to non-controlling interest – Principal Equityholders | 163,790 | 81,403 | |||||||
Loss fully attributable to Class A Common Stock | 282 | 63 | |||||||
Net income from continuing operations — diluted | $ | 224,233 | $ | 111,394 | |||||
Net income from discontinued operations — diluted | $ | 41,902 | $ | 57,620 | |||||
Denominator: | |||||||||
Weighted average shares — basic (Class A) | 32,937 | 32,840 | |||||||
Weighted average shares — Principal Equityholders’ non-controlling interest (Class B) | 89,328 | 89,469 | |||||||
Restricted stock units | 48 | 9 | |||||||
Stock options | — | 1 | |||||||
Weighted average shares — diluted | 122,313 | 122,319 | |||||||
Earnings per common share — basic: | |||||||||
Income from continuing operations | $ | 1.83 | $ | 0.91 | |||||
Discontinued operations, net of tax | $ | 0.34 | $ | 0.47 | |||||
Net income available to Taylor Morrison Home Corporation | $ | 2.17 | $ | 1.38 | |||||
Earnings per common share — diluted: | |||||||||
Income from continuing operations | $ | 1.83 | $ | 0.91 | |||||
Discontinued operations, net of tax | $ | 0.34 | $ | 0.47 | |||||
Net income available to Taylor Morrison Home Corporation | $ | 2.17 | $ | 1.38 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Schedule of Discontinued Operations, Statement of Income and Balance Sheet | The components of discontinued operations, net of tax are as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 395,070 | $ | 407,156 | $ | 394,539 | |||||||
Pre-tax income from discontinued operations | $ | 61,786 | $ | 93,391 | $ | 98,894 | |||||||
Provision for taxes | 19,884 | 26,878 | 24,001 | ||||||||||
Income from discontinued operations, net of tax | $ | 41,902 | $ | 66,513 | $ | 74,893 | |||||||
The components of assets of discontinued operations and liabilities of discontinued operations are as follows (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Cash and cash equivalents | $ | 227,988 | $ | 195,663 | |||||||||
Restricted cash | 11,474 | 21,007 | |||||||||||
Real estate inventory | 149,087 | 249,759 | |||||||||||
Land deposits | 7,547 | 5,728 | |||||||||||
Loans receivable | 40,808 | 33,395 | |||||||||||
Tax indemnification receivable | 5,194 | 5,216 | |||||||||||
Prepaid expenses and other assets, net | 11,197 | 18,949 | |||||||||||
Other receivables, net | 1,984 | 5,621 | |||||||||||
Investments in unconsolidated entities | 111,887 | 118,115 | |||||||||||
Deferred tax assets, net | 3,233 | 2,264 | |||||||||||
Property and equipment, net | 2,546 | 3,013 | |||||||||||
Intangible assets, net | 3,500 | 4,388 | |||||||||||
Assets of discontinued operations | $ | 576,445 | $ | 663,118 | |||||||||
Accounts payable | $ | 14,438 | $ | 20,133 | |||||||||
Accrued expenses and other liabilities | 44,554 | 52,456 | |||||||||||
Income taxes payable | 8,076 | 12,028 | |||||||||||
Customer deposits | 11,166 | 32,637 | |||||||||||
Loans payable and other borrowings | 90,331 | 138,757 | |||||||||||
Liabilities of discontinued operations | $ | 168,565 | $ | 256,011 | |||||||||
Real_Estate_Inventory_And_Land1
Real Estate Inventory And Land Deposits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Real Estate [Abstract] | |||||||||||||
Schedule of Inventory | Inventory consists of the following (in thousands): | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Operating communities, including capitalized interest | $ | 2,217,067 | $ | 1,651,218 | |||||||||
Real estate held for development or held for sale (completed homes) | 294,556 | 342,767 | |||||||||||
Total owned inventory | 2,511,623 | 1,993,985 | |||||||||||
Real estate not owned under option contracts | 6,698 | 18,595 | |||||||||||
Total real estate inventory | $ | 2,518,321 | $ | 2,012,580 | |||||||||
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred, expensed and amortized is as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest capitalized — beginning of period | $ | 71,263 | $ | 45,387 | $ | 19,460 | |||||||
Interest incurred | 88,782 | 61,582 | 46,340 | ||||||||||
Interest expensed | — | (812 | ) | — | |||||||||
Interest amortized to cost of closings | (65,165 | ) | (34,894 | ) | (20,413 | ) | |||||||
Interest capitalized — end of period | $ | 94,880 | $ | 71,263 | $ | 45,387 | |||||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method | Summarized, unaudited financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Real estate inventory | $ | 396,858 | $ | 59,357 | |||||||||
Other assets | 59,963 | 16,440 | |||||||||||
Total assets | $ | 456,821 | $ | 75,797 | |||||||||
Liabilities and owners’ equity: | |||||||||||||
Debt | $ | 129,561 | $ | 30,471 | |||||||||
Other liabilities | 8,870 | 1,483 | |||||||||||
Total liabilities | $ | 138,431 | $ | 31,954 | |||||||||
Owners’ equity: | |||||||||||||
TMHC | 110,291 | 21,435 | |||||||||||
Others | 208,099 | 22,408 | |||||||||||
Total owners’ equity | 318,390 | 43,843 | |||||||||||
Total liabilities and owners’ equity | $ | 456,821 | $ | 75,797 | |||||||||
Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 23,020 | $ | 11,062 | $ | 9,769 | |||||||
Costs and expenses | (12,221 | ) | (4,002 | ) | (6,248 | ) | |||||||
Income of unconsolidated entities | $ | 10,799 | $ | 7,060 | $ | 3,521 | |||||||
Company’s share in income of unconsolidated entities | $ | 5,405 | $ | 2,895 | $ | 1,214 | |||||||
Distributions of earnings from unconsolidated entities | $ | 3,746 | $ | 1,800 | $ | 3,217 | |||||||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||||
2014 | 2013 | ||||||||||||
Real estate development costs to complete | $ | 24,222 | $ | 15,422 | |||||||||
Compensation and employee benefits | 51,475 | 44,264 | |||||||||||
Self insurance and warranty reserves | 44,595 | 34,814 | |||||||||||
Interest payable | 22,033 | 16,898 | |||||||||||
Property and sales taxes payable | 12,808 | 12,529 | |||||||||||
Other accruals | 45,423 | 38,117 | |||||||||||
Total accrued expenses and other liabilities | $ | 200,556 | $ | 162,044 | |||||||||
Summary of Changes in Reserves | Self Insurance and Warranty Reserves — a summary of the changes in our reserves are as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserve — beginning of period | $ | 34,814 | $ | 31,962 | $ | 36,235 | |||||||
Additions to reserves | 16,882 | 14,880 | 1,117 | ||||||||||
Costs and claims incurred | (6,799 | ) | (10,788 | ) | (8,053 | ) | |||||||
Change in estimates to pre-existing reserves | (302 | ) | (1,240 | ) | 2,663 | ||||||||
Reserve — end of period | $ | 44,595 | $ | 34,814 | $ | 31,962 | |||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Senior Notes and Other Borrowings | (Dollars in thousands) | December 31, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||||
5.625% Senior Notes due 2024, unsecured, with $4.9 million of unamortized debt issuance costs at December 31, 2014 | $ | 350,000 | $ | — | |||||||||||||
5.25% Senior Notes due 2021, unsecured, with $7.5 million and $8.7 million of unamortized debt issuance costs at December 31, 2014 and 2013, respectively | 550,000 | 550,000 | |||||||||||||||
7.75% Senior Notes due 2020, unsecured, with $8.9 million and $10.6 million of unamortized debt issuance costs at December 31, 2014 and 2013, respectively and $3.4 million and $4.1 million of unamortized bond premium at December 31, 2014 and 2013, respectively | 488,840 | 489,497 | |||||||||||||||
Senior Notes Sub-total | $ | 1,388,840 | $ | 1,039,497 | |||||||||||||
$400 million Restated Revolving Credit Facility with $5.6 million and $7.4 million of unamortized debt issuance costs at December 31, 2014 and 2013 respectively | 40,000 | — | |||||||||||||||
Mortgage borrowings | 160,750 | 74,892 | |||||||||||||||
Loans payable and other borrowings | 147,516 | 143,341 | |||||||||||||||
Total debt | $ | 1,737,106 | $ | 1,257,730 | |||||||||||||
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage subsidiary borrowings (in thousands): | ||||||||||||||||
At December 31, 2014 | |||||||||||||||||
Facility | Amount | Facility | Interest Rate | Expiration Date | Collateral (1) | ||||||||||||
Drawn | Amount | ||||||||||||||||
Flagstar | $ | 62,894 | $ | 85,000 | LIBOR + 2.5% | 30 days written notice | Mortgage Loans | ||||||||||
Comerica | 11,430 | 50,000 | LIBOR + 2.75% | 19-Aug-15 | Mortgage Loans | ||||||||||||
JPMorgan | 86,426 | 100,000 | (2) | -3 | 28-Sep-15 | Pledged Cash | |||||||||||
Total | $ | 160,750 | $ | 235,000 | |||||||||||||
At December 31, 2013 | |||||||||||||||||
Facility | Amount | Facility | Interest Rate | Expiration Date | Collateral (1) | ||||||||||||
Drawn | Amount | ||||||||||||||||
Flagstar | $ | 38,084 | $ | 30,000 | LIBOR + 2.5% | 30 days written notice | Mortgage Loans | ||||||||||
Comerica | 36,808 | 50,000 | LIBOR + 2.875% | 5-Jun-14 | Mortgage Loans | ||||||||||||
Total | $ | 74,892 | $ | 80,000 | |||||||||||||
(1) | The mortgage borrowings outstanding as of December 31, 2014 and 2013, are collateralized by $191.1 million and $95.7 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables and $1.3 million and $2.0 million, respectively, of restricted short-term investments which are included in restricted cash in the accompanying Consolidated Balance Sheets. | ||||||||||||||||
(2) | The warehouse facility with JPMorgan has a maximum credit line of $50.0 million. On December 12, 2014 the agreement was temporarily amended to increase the capacity from $50.0 million to $100.0 million. Effective January 23, 2015, the temporary increase expired. | ||||||||||||||||
(3) | Interest under the JPMorgan agreement ranges from 2.50% plus 30-day LIBOR to 2.875% plus 30-day LIBOR or 0.25% (whichever is greater). | ||||||||||||||||
Principal Maturities of Total Debt | Principal maturities of total debt for the year ending December 31, 2014 are as follows (in thousands): | ||||||||||||||||
2015 | $ | 252,278 | |||||||||||||||
2016 | 54,685 | ||||||||||||||||
2017 | 12,724 | ||||||||||||||||
2018 | 9,239 | ||||||||||||||||
2019 | 13,190 | ||||||||||||||||
Thereafter | 1,394,990 | ||||||||||||||||
Total debt | $ | 1,737,106 | |||||||||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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 (in thousands): | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Level in | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Fair Value | Value | Fair Value | Value | Fair Value | |||||||||||||||||
Hierarchy | |||||||||||||||||||||
Description: | |||||||||||||||||||||
Mortgages receivable | 2 | $ | 191,140 | $ | 191,140 | $ | 95,718 | $ | 95,718 | ||||||||||||
Mortgage borrowings | 2 | 160,750 | 160,750 | 74,892 | 74,892 | ||||||||||||||||
Loans payable and other borrowings | 2 | 147,516 | 147,516 | 143,341 | 143,341 | ||||||||||||||||
7.75% Senior Notes due 2020 | 2 | 488,840 | 518,170 | 489,497 | 537,223 | ||||||||||||||||
5.25% Senior Notes due 2021 | 2 | 550,000 | 539,000 | 550,000 | 532,125 | ||||||||||||||||
5.625% Senior Notes due 2024 | 2 | 350,000 | 336,000 | N/A | N/A | ||||||||||||||||
Restated Revolving Credit Facility | 2 | 40,000 | 40,000 | N/A | N/A |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of (Benefit) Provision for Income Taxes | The (benefit) provision for income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 83,193 | $ | (24,403 | ) | $ | (284,301 | ) | |||||
Foreign | (6,798 | ) | 593 | 3 | |||||||||
Total income tax provision (benefit) | $ | 76,395 | $ | (23,810 | ) | $ | (284,298 | ) | |||||
Current: | |||||||||||||
Federal | $ | 91,981 | $ | (55,771 | ) | $ | (12,084 | ) | |||||
State | (1,341 | ) | 2,259 | 890 | |||||||||
Foreign | — | 593 | 4 | ||||||||||
Current tax provision (benefit) | $ | 90,640 | $ | (52,919 | ) | $ | (11,190 | ) | |||||
Deferred: | |||||||||||||
Federal | (13,549 | ) | 24,179 | (218,967 | ) | ||||||||
State | 6,102 | 4,930 | (54,141 | ) | |||||||||
Foreign | (6,798 | ) | — | — | |||||||||
Deferred tax provision (benefit) | $ | (14,245 | ) | $ | 29,109 | $ | (273,108 | ) | |||||
Total income tax provision (benefit) | $ | 76,395 | $ | (23,810 | ) | $ | (284,298 | ) | |||||
Schedule of Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 294,002 | $ | (3,180 | ) | $ | 73,317 | ||||||
Foreign | 7,992 | 7,725 | (1,660 | ) | |||||||||
Income before income taxes | $ | 301,994 | $ | 4,545 | $ | 71,657 | |||||||
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the federal statutory income tax rate of 35% to income before provision (benefit) for income taxes is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes (net of federal benefit) | 3.6 | 97 | (48.3 | ) | |||||||||
Foreign income taxed below U.S. Rate | (1.1 | ) | 14.1 | (3.3 | ) | ||||||||
Valuation allowance | (10.4 | ) | (348.2 | ) | (409.6 | ) | |||||||
Built in loss limitation | 3.1 | 179.2 | 56.1 | ||||||||||
Tax indemnity | — | 683.7 | 6.4 | ||||||||||
Uncertain tax positions | — | (1,824.0 | ) | (18.2 | ) | ||||||||
Transaction costs | — | — | (6.5 | ) | |||||||||
Non-controlling interest | (0.2 | ) | — | — | |||||||||
Deferred tax adjustments | — | — | (10.4 | ) | |||||||||
Disallowed compensation expense | 0.2 | 650.4 | — | ||||||||||
Holding company tax | (1.4 | ) | 93 | — | |||||||||
Domestic Manufacturing Deduction | (2.8 | ) | — | — | |||||||||
Other | (0.7 | ) | (104.0 | ) | 2 | ||||||||
Effective Rate | 25.3 | % | (523.8 | )% | (396.8 | )% | |||||||
Summary of Components of Deferred Tax Assets and Liabilities | A summary of these components is as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Real estate inventory | $ | 157,722 | $ | 179,548 | |||||||||
Accruals and reserves | 18,366 | 19,367 | |||||||||||
Other | 21,217 | 22,601 | |||||||||||
Net operating losses | 72,148 | 73,222 | |||||||||||
Foreign exchange | — | 959 | |||||||||||
Total deferred tax assets | $ | 269,453 | $ | 295,697 | |||||||||
Deferred tax liabilities | |||||||||||||
Real estate inventory, intangibles, other | (2,342 | ) | (13,011 | ) | |||||||||
Valuation allowance | (8,921 | ) | (40,030 | ) | |||||||||
Total net deferred tax assets (1) | $ | 258,190 | $ | 242,656 | |||||||||
(1) | The amounts shown do not include deferred tax assets for discontinued operations of $3.2 million and $2.3 million for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | Following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning of the period | $ | 2,035 | $ | 85,703 | $ | 98,322 | |||||||
Increases of current year items | — | 7,200 | 1,394 | ||||||||||
Increases of prior year items | 318 | 252 | 390 | ||||||||||
Settlement with tax authorities | — | (90,442 | ) | (615 | ) | ||||||||
Decreases for tax positions of prior years | — | — | (12,865 | ) | |||||||||
Decreases due to statute of limitations | — | (678 | ) | (923 | ) | ||||||||
End of the period (1) | $ | 2,353 | $ | 2,035 | $ | 85,703 | |||||||
-1 | The amounts shown do not include unrecognized tax benefits for discontinued operations of $6.2 million, $7.9 million and $9.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Schedule of Number of Shares Outstanding and Reserved by Class of Stock | The following table provides information on the number of shares outstanding and reserved by class of stock at December 31, 2014: | ||||||||
Shares | |||||||||
Class A Common Stock issued and outstanding | 33,060,540 | ||||||||
Class A Common Stock reserved for outstanding stock options and restricted stock units | 1,510,708 | ||||||||
Class A Common Stock reserved for outstanding New TMM Unit exchanges (1) | 1,431,721 | ||||||||
Class A Common Stock reserved for future stock option and restricted stock unit issuances | 6,439,532 | ||||||||
Class B Common Stock issued and outstanding | 89,227,416 | ||||||||
Preferred Stock | — | ||||||||
-1 | One New TMM Unit together with a corresponding share of Class B Common Stock is exchangeable for one share of Class A Common Stock. Class A Common Stock reserved for outstanding New TMM Unit exchanges relate to time-vesting TMM Units held by certain members of TMHC’s management and Board. See Note 14 — Stock Based Compensation — New TMM Units for additional details. | ||||||||
Components and Voting Power of Outstanding Common Stock | The components and respective voting power of our outstanding Common Stock at December 31, 2014 are as follows: | ||||||||
Shares | Percentage | ||||||||
Outstanding | |||||||||
Class A Common Stock | 33,060,540 | 27 | % | ||||||
Class B Common Stock | 89,227,416 | 73 | |||||||
Total | 122,287,956 | 100 | % |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Summary of Common Stock Available for Future Grants | The following table provides information regarding the amount of Common Stock available for future grants under the Plan: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Balance, beginning | 6,517,310 | — | NA | ||||||||||||||||||||||
Shares approved for issuance under the Plan | — | 7,956,955 | NA | ||||||||||||||||||||||
Grants | (103,622 | ) | (1,581,675 | ) | NA | ||||||||||||||||||||
Forfeited/cancelled | 25,641 | 142,030 | NA | ||||||||||||||||||||||
Shares withheld for tax withholdings | 203 | — | NA | ||||||||||||||||||||||
Balance, ending | 6,439,532 | 6,517,310 | NA | ||||||||||||||||||||||
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 accompanying Consolidated Statements of Operations: | ||||||||||||||||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Restricted stock units (RSUs) (1) | $ | 1,263 | $ | 815 | $ | — | |||||||||||||||||||
Stock options | 2,920 | 2,043 | — | ||||||||||||||||||||||
New TMM Units | 1,648 | 4,270 | 1,975 | ||||||||||||||||||||||
J Units | — | 80,190 | — | ||||||||||||||||||||||
Total stock compensation | $ | 5,831 | $ | 87,318 | $ | 1,975 | |||||||||||||||||||
Income tax benefit recognized | $ | 53 | $ | — | $ | — | |||||||||||||||||||
(1) | Includes compensation expense related to restricted stock units and performance restricted stock units. | ||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the Plan for the year ended December 31, 2014: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Options | Average | Options | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding, beginning | 1,250,829 | $ | 22.45 | — | $ | — | NA | NA | |||||||||||||||||
Granted | 95,700 | 20.91 | 1,380,829 | 22.41 | NA | NA | |||||||||||||||||||
Exercised | — | — | — | — | NA | NA | |||||||||||||||||||
Cancelled | (21,500 | ) | 22 | (130,000 | ) | 22 | NA | NA | |||||||||||||||||
Balance, ending | 1,325,029 | $ | 22.35 | 1,250,829 | $ | 22.45 | NA | NA | |||||||||||||||||
Options exercisable, at December 31, 2014 | 7,963 | $ | 20.93 | — | $ | — | NA | NA | |||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Unamortized value of unvested stock options (net of estimated forfeitures) | $ | 10,092 | $ | 12,424 | |||||||||||||||||||||
Weighted-average period (in years) that expense is expected to be recognized | 3.4 | 4.3 | |||||||||||||||||||||||
Weighted-average remaining contractual life (in years) for options outstanding | 8.3 | 9.3 | |||||||||||||||||||||||
Weighted-average remaining contractual life (in years) for options exercisable | 8.5 | NA | |||||||||||||||||||||||
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, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected dividend yield | 0.00 % | 0.00% | N/A | ||||||||||||||||||||||
Expected volatility | 48.60% | 56.59 % | N/A | ||||||||||||||||||||||
Risk-free interest rate | 1.13 % – 1.34 % | 0.54% | N/A | ||||||||||||||||||||||
Expected term (years) | 4.5 | 4.28 | N/A | ||||||||||||||||||||||
Weighted average fair value of options granted during the period | $8.59 | $11.57 | N/A | ||||||||||||||||||||||
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, 2014, 2013, and 2012: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Aggregate intrinsic value of options outstanding | $ | 8,046 | $ | 520 | N/A | ||||||||||||||||||||
Aggregate intrinsic value of options exercisable | $ | — | $ | — | N/A | ||||||||||||||||||||
New TMM Units [Member] | |||||||||||||||||||||||||
Summary of Activity of Stock Units | The following tables summarize the activity of our time vesting New TMM Unit awards: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||
Awards | Average Grant | Awards | Average Grant | ||||||||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||||||||||
Outstanding, beginning | 1,655,469 | $ | 5.02 | 1,812,099 | (1) | $ | 4.9 | ||||||||||||||||||
Paid out in connection with the IPO | — | — | (156,630 | ) | 3.64 | ||||||||||||||||||||
Exchanges (2) | (196,024 | ) | 4.22 | — | — | ||||||||||||||||||||
Forfeited (3) | (27,724 | ) | 6.09 | — | — | ||||||||||||||||||||
Balance, ending | 1,431,721 | $ | 5.11 | 1,655,469 | $ | 5.02 | |||||||||||||||||||
Unvested New TMM Units included in ending balance | 792,320 | $ | 5.3 | 1,171,284 | $ | 5.2 | |||||||||||||||||||
-1 | Periods prior to the IPO reflect time-vesting Class M Units in TMM Holdings. As such, 2012 amounts have not been presented. The balance at January 1, 2013 shown above reflects the New TMM Unit equivalent of time-vesting Class M Units in TMM Holdings. | ||||||||||||||||||||||||
-2 | Exchanges during the period represent the exchange of a vested New TMM Unit along with the corresponding share of Class B Common Stock for a newly issued share of Class A Common Stock. | ||||||||||||||||||||||||
(3) | Awards forfeited during the period represent the unvested portion of New TMM Unit awards for employees who have terminated employment with the Company and for which the New TMM Unit and the corresponding Class B Share have been cancelled. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
Unamortized value of New TMM Units | $ | 3,345 | $ | 5,162 | |||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 2.2 | 3.2 | |||||||||||||||||||||||
Performance Restricted Stock Units [Member] | |||||||||||||||||||||||||
Summary of Activity of Stock Units | The following table summarizes the activity of our PRSUs: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
Balance, beginning | 179,931 | — | |||||||||||||||||||||||
Granted | — | 191,961 | |||||||||||||||||||||||
Vested | — | — | |||||||||||||||||||||||
Forfeited | (4,141 | ) | (12,030 | ) | |||||||||||||||||||||
Balance at, ending | 175,790 | 179,931 | |||||||||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
PRSU expense recognized during the year ended December 31 | $ | 1,054 | $ | 780 | |||||||||||||||||||||
Unamortized value of PRSUs at December 31 | $ | 2,438 | $ | 3,593 | |||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 2.3 | 3.3 | |||||||||||||||||||||||
Non-performance Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||||
Summary of Activity of Stock Units | The following tables summarize the activity of our RSUs (dollars in thousands except per share amounts): | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
RSUs | Average | RSUs | Average | RSUs | Average | ||||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Outstanding, beginning | 8,885 | $ | 20.82 | — | $ | — | NA | NA | |||||||||||||||||
Granted | 7,922 | 22.09 | 8,885 | 20.82 | NA | NA | |||||||||||||||||||
Vested | (6,919 | ) | 20.24 | — | — | NA | NA | ||||||||||||||||||
Forfeited | — | — | — | — | NA | NA | |||||||||||||||||||
Balance, ending | 9,889 | $ | 22.25 | 8,885 | $ | 20.82 | NA | NA | |||||||||||||||||
(Dollars in thousands): | 2014 | 2013 | |||||||||||||||||||||||
RSU expense recognized during the year ended December 31 | $ | 209 | $ | 36 | |||||||||||||||||||||
Unamortized value of RSUs at December 31 | 100 | $ | 149 | ||||||||||||||||||||||
Weighted-average period expense is expected to be recognized | 1.3 | 1.9 |
Employee_Benefit_Retirement_an1
Employee Benefit, Retirement, and Deferred Compensation Plans (Tables) (U.S. Cash Balance Plan [Member]) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
U.S. Cash Balance Plan [Member] | |||||||||||||||||
Summary of Changes in Total Benefit Obligation and Fair Value of Assets and Funded Status | The changes in the total benefit obligation and in the fair value of assets and the funded status of the U.S. Cash Balance Plan are as follows (in thousands): | ||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Change in benefit obligations: | |||||||||||||||||
Benefit obligation — beginning of period | $ | 29,848 | $ | 33,592 | |||||||||||||
Interest on liabilities | 1,345 | 1,294 | |||||||||||||||
Benefits paid | (570 | ) | (1,025 | ) | |||||||||||||
Settlements | (3,229 | ) | — | ||||||||||||||
Actuarial loss (gain) | 6,535 | (4,013 | ) | ||||||||||||||
Benefit obligation — end of period | $ | 33,929 | $ | 29,848 | |||||||||||||
Change in fair value of plan assets: | |||||||||||||||||
Fair value of plan assets — beginning of period | 23,931 | 21,738 | |||||||||||||||
Return on plan assets | 2,203 | 2,548 | |||||||||||||||
Employer contributions | 1,357 | 670 | |||||||||||||||
Benefits paid | (3,800 | ) | (1,025 | ) | |||||||||||||
Fair value of plan assets — end of period | $ | 23,691 | $ | 23,931 | |||||||||||||
Unfunded status — end of period | $ | 10,238 | $ | 5,917 | |||||||||||||
Significant Weighted-Average Assumptions Adopted in Measuring Benefit Obligations and Net Periodic Pension Costs | The significant weighted-average assumptions adopted in measuring the benefit obligations and net periodic pension costs are as follows: | ||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate: | |||||||||||||||||
Net periodic pension cost | 4.49 | % | 3.9 | % | 4.31 | % | |||||||||||
Pension obligation | 3.98 | 4.8 | 3.81 | ||||||||||||||
Expected return on plan assets | 7 | 7 | 7 | ||||||||||||||
Components of Net Periodic Pension Cost | Components of net periodic pension cost of the U.S. Cash Balance Plan are as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Interest cost | $ | 1,345 | $ | 1,294 | $ | 1,326 | |||||||||||
Amortization of net actuarial loss | 34 | 133 | 108 | ||||||||||||||
Expected return on plan assets | (1,621 | ) | (1,499 | ) | (1,358 | ) | |||||||||||
Net settlement loss | 609 | — | — | ||||||||||||||
Net periodic pension cost | $ | 367 | $ | (72 | ) | $ | 76 | ||||||||||
Summary of Estimated Future Benefit Payments | The estimated future benefit payments in the next five years and the five years thereafter in aggregate are as follows (dollars in thousands): | ||||||||||||||||
Years Ending December 31, | |||||||||||||||||
2015 | $ | 989 | |||||||||||||||
2016 | 984 | ||||||||||||||||
2017 | 1,135 | ||||||||||||||||
2018 | 1,423 | ||||||||||||||||
2019 | 1,181 | ||||||||||||||||
2020–2024 | 7,189 | ||||||||||||||||
Fair Value of Plan's Assets by Asset Categories | The fair value of the U.S. Cash Balance Plan’s assets by asset categories is as follows (in thousands): | ||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. equity securities | $ | 8,820 | $ | — | $ | — | $ | 8,820 | |||||||||
International equity securities | 2,937 | — | — | 2,937 | |||||||||||||
Fixed-income securities | 10,391 | — | — | 10,391 | |||||||||||||
Cash | 1,090 | — | — | 1,090 | |||||||||||||
Other | 453 | — | — | 453 | |||||||||||||
Total | $ | 23,691 | $ | — | $ | — | $ | 23,691 | |||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. equity securities | $ | 8,677 | $ | — | $ | — | $ | 8,677 | |||||||||
International equity securities | 2,917 | — | — | 2,917 | |||||||||||||
Fixed-income securities | 10,757 | — | — | 10,757 | |||||||||||||
Cash | 1,089 | — | — | 1,089 | |||||||||||||
Other | 491 | — | — | 491 | |||||||||||||
Total | $ | 23,931 | $ | — | $ | — | $ | 23,931 | |||||||||
Summary of Target Allocation Percentages of Plan Assets | The range of target allocation percentages of plan assets of the U.S. Cash Balance Plan is as follows: | ||||||||||||||||
Minimum | Maximum | Target | |||||||||||||||
U.S. equity securities | 37 | % | 47 | % | 42 | % | |||||||||||
International equity securities | 8 | 18 | 13 | ||||||||||||||
Fixed-income securities | 35 | 45 | 40 | ||||||||||||||
Other | — | 10 | 5 | ||||||||||||||
100 | % | ||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The table below provides the components of accumulated other comprehensive income (loss) (dollars in thousands): | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Total Post- | Foreign | Non-controlling | Total | ||||||||||||||
Retirement | Currency | Interest in | |||||||||||||||
Benefits | Translation | Principal | |||||||||||||||
Adjustments | Adjustments | Equityholders | |||||||||||||||
Balance, beginning of period | $ | 3,987 | $ | (16,727 | ) | $ | 12,288 | $ | (452 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (6,303 | ) | (35,421 | ) | — | (41,724 | ) | ||||||||||
Gross amounts reclassified from accumulated other comprehensive loss | 43 | — | — | 43 | |||||||||||||
Net settlement loss | 609 | — | — | 609 | |||||||||||||
Foreign currency translation | (55 | ) | — | — | (55 | ) | |||||||||||
Income tax (expense) benefit | 2,411 | — | — | 2,411 | |||||||||||||
Other comprehensive income (loss) net of tax | $ | (3,295 | ) | $ | (35,421 | ) | $ | — | $ | (38,716 | ) | ||||||
Gross amounts reclassified within accumulated other comprehensive income (loss) | — | — | 28,258 | 28,258 | |||||||||||||
Balance, end of period | $ | 692 | $ | (52,148 | ) | $ | 40,546 | $ | (10,910 | ) | |||||||
Year Ended December 31, 2013 | |||||||||||||||||
Total Post- | Foreign | Non-controlling | Total | ||||||||||||||
Retirement | Currency | Interest in | |||||||||||||||
Benefits | Translation | Principal | |||||||||||||||
Adjustments | Adjustments | Equityholders | |||||||||||||||
Balance, beginning of period | $ | (12,088 | ) | $ | (22,277 | ) | $ | — | $ | (34,365 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 6,107 | (17,686 | ) | — | (11,578 | ) | |||||||||||
Gross amounts reclassified from accumulated other comprehensive income | 177 | — | 3,496 | 3,673 | |||||||||||||
Foreign currency translation | 199 | — | — | 199 | |||||||||||||
Income tax (expense) benefit | (2,496 | ) | 959 | — | (1,537 | ) | |||||||||||
Other comprehensive income (loss) net of tax | $ | 3,987 | $ | (16,727 | ) | $ | 3,496 | $ | (9,244 | ) | |||||||
Gross amounts reclassified within accumulated other comprehensive income (loss) | 12,088 | 22,277 | 8,792 | 43,157 | |||||||||||||
Balance, end of period | $ | 3,987 | $ | (16,727 | ) | $ | 12,288 | $ | (452 | ) | |||||||
Operating_and_Reporting_Segmen1
Operating and Reporting Segments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information Excluding Discontinued Operations | Segment information, excluding discontinued operations, is as follows: | ||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
(In thousands) | East | West | Mortgage | Corporate | Total | ||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 1,556,598 | $ | 1,116,341 | $ | 35,493 | $ | — | $ | 2,708,432 | |||||||||||||||
Gross Margin | 341,481 | 208,943 | 15,822 | — | 566,246 | ||||||||||||||||||||
Selling, general and administrative expense | (131,048 | ) | (66,880 | ) | — | (52,122 | ) | (250,050 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 3,609 | 386 | 1,410 | — | 5,405 | ||||||||||||||||||||
Interest and other (expense) income | (16,690 | ) | 1,604 | 1 | (4,522 | ) | (19,607 | ) | |||||||||||||||||
Income before income taxes | $ | 197,352 | $ | 144,053 | $ | 17,233 | $ | (56,644 | ) | $ | 301,994 | ||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
(In thousands) | East | West | Mortgage | Corporate | Total | ||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 1,117,298 | $ | 768,412 | $ | 30,371 | $ | — | $ | 1,916,081 | |||||||||||||||
Gross Margin | 227,695 | 174,245 | 13,925 | — | 415,865 | ||||||||||||||||||||
Selling, general and administrative expense | (102,582 | ) | (52,521 | ) | — | (49,514 | ) | (204,617 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 1,788 | (23 | ) | 1,130 | — | 2,895 | |||||||||||||||||||
Indemnification and transaction expenses | — | — | — | (195,773 | ) | (195,773 | ) | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (10,141 | ) | (10,141 | ) | ||||||||||||||||||
Interest and other (expense) income | (4,506 | ) | (714 | ) | 3 | 1,533 | (3,684 | ) | |||||||||||||||||
Income before income taxes | $ | 122,395 | $ | 120,987 | $ | 15,058 | $ | (253,895 | ) | $ | 4,545 | ||||||||||||||
(In thousands) | Year Ended December 31, 2012 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Total | |||||||||||||||||||||
Operations | and | ||||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||
Revenue | $ | 558,523 | $ | 460,798 | $ | 21,861 | $ | — | $ | 1,041,182 | |||||||||||||||
Gross Margin | 111,424 | 84,622 | 10,595 | — | 206,641 | ||||||||||||||||||||
Selling, general and administrative expense | (50,272 | ) | (37,240 | ) | — | (24,753 | ) | (112,265 | ) | ||||||||||||||||
Equity in income of unconsolidated entities | 291 | 237 | 686 | — | 1,214 | ||||||||||||||||||||
Indemnification and transaction expenses | — | — | — | (13,034 | ) | (13,034 | ) | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (7,953 | ) | (7,953 | ) | ||||||||||||||||||
Interest and other (expense) income | 561 | 168 | 5 | (3,680 | ) | (2,946 | ) | ||||||||||||||||||
Income before income taxes | $ | 62,004 | $ | 47,787 | $ | 11,286 | $ | (49,420 | ) | $ | 71,657 | ||||||||||||||
Assets from Segment | (In thousands) | December 31, 2014 | |||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 1,275,192 | $ | 1,277,673 | $ | — | $ | — | $ | — | $ | 2,552,865 | |||||||||||||
Investments in unconsolidated entities | 57,138 | 51,909 | 1,244 | — | — | 110,291 | |||||||||||||||||||
Other assets | 166,854 | 37,989 | 204,685 | 483,984 | 576,445 | 1,469,957 | |||||||||||||||||||
Total assets | $ | 1,499,184 | $ | 1,367,571 | $ | 205,929 | $ | 483,984 | $ | 576,445 | $ | 4,133,113 | |||||||||||||
(In thousands) | December 31, 2013 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 1,048,091 | $ | 1,002,500 | $ | — | $ | — | $ | — | $ | 2,050,591 | |||||||||||||
Investments in unconsolidated entities | 20,191 | — | 1,244 | — | — | 21,435 | |||||||||||||||||||
Other assets | 103,107 | 27,842 | 110,004 | 462,461 | 663,118 | 1,366,532 | |||||||||||||||||||
Total assets | $ | 1,171,389 | $ | 1,030,342 | $ | 111,248 | $ | 462,461 | $ | 663,118 | $ | 3,438,558 | |||||||||||||
(In thousands) | 31-Dec-12 | ||||||||||||||||||||||||
East | West | Mortgage | Corporate | Assets of | Total | ||||||||||||||||||||
Operations | and | Discontinued | |||||||||||||||||||||||
Unallocated | Operations | ||||||||||||||||||||||||
Real estate inventory and land deposits | $ | 741,911 | $ | 647,877 | $ | — | $ | — | $ | — | $ | 1,389,788 | |||||||||||||
Investments in unconsolidated entities | 723 | — | 532 | — | — | 1,255 | |||||||||||||||||||
Other assets | 109,611 | 22,069 | 100,200 | 478,364 | 636,769 | 1,347,013 | |||||||||||||||||||
Total assets | $ | 852,245 | $ | 669,946 | $ | 100,732 | $ | 462,461 | $ | 636,769 | $ | 2,738,056 | |||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Results of Operations | Quarterly results are as follows (in thousands, except per share data): | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter 2014 | Quarter 2014 | Quarter 2014 | Quarter 2014 | ||||||||||||||
Total revenues | $ | 470,475 | $ | 597,008 | $ | 629,196 | $ | 1,011,753 | |||||||||
Gross margin | 103,381 | 127,352 | 131,951 | 203,562 | |||||||||||||
Income from continuing operations before income taxes | 47,956 | 65,508 | 69,050 | 119,480 | |||||||||||||
Net income before allocation to non-controlling interests | 41,296 | 55,499 | 66,175 | 104,531 | |||||||||||||
Net income available to Taylor Morrison Home Corporation (1) | 10,932 | 14,816 | 17,846 | 27,875 | |||||||||||||
Basic and diluted earnings per share | $ | 0.33 | $ | 0.45 | $ | 0.54 | $ | 0.84 | |||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter 2013 | Quarter 2013 | Quarter 2013 | Quarter 2013 | ||||||||||||||
Total revenues | $ | 335,697 | $ | 450,366 | $ | 491,018 | $ | 639,000 | |||||||||
Gross margin | 67,895 | 90,958 | 104,804 | 152,208 | |||||||||||||
Income (loss) from continuing operations before income taxes | 28,129 | (160,601 | ) | 52,820 | 84,197 | ||||||||||||
Net income (loss) before allocation to non-controlling interests | 24,337 | (78,287 | ) | 52,632 | 96,186 | ||||||||||||
Net income available to Taylor Morrison Home Corporation (1) | — | 5,327 | 14,263 | 25,830 | |||||||||||||
Basic and diluted earnings per share | N/A | $ | 0.16 | $ | 0.43 | $ | 0.79 | ||||||||||
(1) | Continuing and discontinued operations |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Payments under Non-Cancelable Leases | Approximate future minimum payments under the non-cancelable leases in effect at December 31, 2014, are as follows (in thousands): | ||||
Years Ending December 31, | Lease | ||||
Payments | |||||
2015………………………………………………………………………. | $ | 5,489 | |||
2016………………………………………………………………………. | 4,138 | ||||
2017………………………………………………………………………. | 3,520 | ||||
2018………………………………………………………………………. | 2,743 | ||||
2019………………………………………………………………………. | 1,710 | ||||
Thereafter………………………………………………………………… | 2,954 | ||||
Total………………………………………………………………………. | $ | 20,554 | |||
Business_Additional_Informatio
Business - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 16, 2014 | Apr. 12, 2013 | |
Segments | ||||
Reportable segments | 3 | |||
Principal Equityholders owned percentage | 100.00% | |||
Capital stock, percentage | 50.00% | |||
Monarch [Member] | ||||
Capital stock, percentage | 100.00% | |||
Mortgage [Member] | ||||
Reportable segments | 1 | |||
Homebuilding [Member] | ||||
Reportable segments | 2 | |||
Operating divisions | 10 | |||
Common Class A [Member] | ||||
Common stock, par value | 0.00001 | $0.00 | $0.00 | |
Principal Equityholders owned percentage | 27.00% | |||
Common Class B [Member] | ||||
Common stock, par value | 0.00001 | $0.00 | ||
Principal Equityholders owned percentage | 73.00% | 73.10% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Federal Deposit Insurance Corporation federally insured limits | $250,000 | ||
Short term investment maturity period | 90 days or less | ||
Restricted cash | 1,300,000 | 2,000,000 | |
Asset impairment charges | 0 | 0 | 0 |
Model home and sales presentation centers costs, amortization period | 3 years | ||
Allowances for credit losses | 300,000 | 500,000 | |
Equity method investment impairment charges | 0 | 0 | 0 |
Depreciation expense | 3,000,000 | 2,100,000 | 2,900,000 |
Finite-lived intangible asset, useful life | 10 years | ||
Intangible assets, amortization method | straight line basis | ||
Inactive [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of communities | 19 | ||
Carrying value of inactive projects | 28,000,000 | ||
Inactive [Member] | Eastern Region [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of communities | 1 | ||
Carrying value of inactive projects | 6,100,000 | ||
Inactive [Member] | Western Region [Member] | |||
Significant Accounting Policies [Line Items] | |||
Carrying value of inactive projects | 21,900,000 | ||
Active [Member] | Western Region [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of communities | 1 | ||
2020 Senior Notes [Member] | |||
Significant Accounting Policies [Line Items] | |||
Unamortized bond financing costs | 26,900,000 | 26,700,000 | |
Amortization of deferred financing costs | 5,900,000 | 5,300,000 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Historically discount rate | 12.00% | ||
Minimum [Member] | Buildings [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Minimum [Member] | Building and Leasehold Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Minimum [Member] | Furniture, fixtures and computer equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum [Member] | Model and sales office improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Historically discount rate | 18.00% | ||
Maximum [Member] | Buildings [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum [Member] | Building and Leasehold Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | Furniture, fixtures and computer equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Canadian Deposit Insurance Corporation [Member] | |||
Significant Accounting Policies [Line Items] | |||
Canadian Deposit Insurance Corporation federally insured limits | $100,000 |
Recovered_Sheet1
Summary Of Significant Accounting Policies - Summary of Prepaid Expenses and Other Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $75,700 | $62,822 |
Other assets | 13,510 | 17,099 |
Total prepaid expenses and other assets, net | $89,210 | $79,921 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information 1 (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Goodwill additions | $0 | $0 | |
Goodwill impairment | 0 | 0 | 0 |
Excess insurance liability | 50,000,000 | ||
Insurance coverage period | 10 years | ||
Warranty period for U.S. Operations | 1 year | ||
Discount on sales | 150,900,000 | 129,000,000 | 104,800,000 |
Loans selling period | 20 days | ||
Advertising costs | $26,100,000 | $21,100,000 | $12,100,000 |
Certain markets [Member] | |||
Significant Accounting Policies [Line Items] | |||
Warranty period for U.S. Operations | 10 years | ||
Common Class B [Member] | |||
Significant Accounting Policies [Line Items] | |||
Common stock, par value | $0.00 | $0.00 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Activity in Non-Controlling Interests - Principal Equityholders and Former Controlling Interests (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | $49,579 |
Non-controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | 123,532 |
Pre-IPO Controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | -73,953 |
Continuing Operations [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | -1,442 |
Continuing Operations [Member] | Non-controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | 81,403 |
Continuing Operations [Member] | Pre-IPO Controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | -82,845 |
Discontinued Operations [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | 51,021 |
Discontinued Operations [Member] | Non-controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | 42,129 |
Discontinued Operations [Member] | Pre-IPO Controlling Interest [Member] | |
Noncontrolling Interest [Line Items] | |
Activity in the Non-controlling Interests - Principal Equityholders and former controlling interests | $8,892 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Numerator: | ||||||||||||
Net income available to TMHC - basic | $27,875 | $17,846 | $14,816 | $10,932 | $25,830 | $14,263 | $5,327 | $71,469 | $45,420 | |||
Income from discontinued operations, net of tax | 41,902 | 66,513 | 74,893 | |||||||||
Income from discontinued operations, net of tax attributable to non-controlling interest - Principal Equityholders | -30,594 | -51,021 | -74,893 | |||||||||
Net income from discontinued operations - basic | 11,308 | 15,492 | ||||||||||
Net income from continuing operations - basic | 60,161 | 29,928 | ||||||||||
Net income from continuing operations - basic | 60,161 | 29,928 | ||||||||||
Net (income) loss from continuing operations attributable to non-controlling interests - Principal Equityholders | 163,790 | 81,403 | ||||||||||
Loss fully attributable to Class A Common Stock | 282 | 63 | ||||||||||
Net income from continuing operations - diluted | 224,233 | 111,394 | ||||||||||
Net income from discontinued operations - diluted | $41,902 | $57,620 | ||||||||||
Denominator: | ||||||||||||
Weighted average shares - basic (Class A) | 32,937 | [1] | 32,840 | [1] | ||||||||
Weighted average shares - Principal Equityholders' non-controlling interest (Class B) | 89,328 | 89,469 | ||||||||||
Restricted stock units | 48 | 9 | ||||||||||
Stock options | 1 | |||||||||||
Weighted average shares - diluted | 122,313 | [1] | 122,319 | [1] | ||||||||
Earnings per common share - basic: | ||||||||||||
Income from continuing operations | $1.83 | [1] | $0.91 | [1] | ||||||||
Discontinued operations, net of tax | $0.34 | [1] | $0.47 | [1] | ||||||||
Net income available to Taylor Morrison Home Corporation | $2.17 | $1.38 | ||||||||||
Earnings per common share - diluted: | ||||||||||||
Income from continuing operations | $1.83 | [1] | $0.91 | [1] | ||||||||
Discontinued operations, net of tax | $0.34 | [1] | $0.47 | [1] | ||||||||
Net income available to Taylor Morrison Home Corporation | $2.17 | $1.38 | ||||||||||
[1] | Prior to the Reorganization Transactions on April 9, 2013 and the IPO no common shares were outstanding. See Note 13 - Stockholders' Equity - Reorganization Transactions for additional information. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Stock options and time-vesting RSUs [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options and time-vesting RSUs [Member] | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of earnings per share | 1,281,959 | 1,439,645 |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Discontinued Operations, Statement of Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Revenues | $395,070 | $407,156 | $394,539 |
Pre-tax income from discontinued operations | 61,786 | 93,391 | 98,894 |
Provision for taxes | 19,884 | 26,878 | 24,001 |
Income from discontinued operations, net of tax | $41,902 | $66,513 | $74,893 |
Discontinued_Operations_Schedu1
Discontinued Operations - Schedule of Discontinued Operations, Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Cash and cash equivalents | $227,988 | $195,663 |
Restricted cash | 11,474 | 21,007 |
Real estate inventory | 149,087 | 249,759 |
Land deposits | 7,547 | 5,728 |
Loans receivable | 40,808 | 33,395 |
Tax indemnification receivable | 5,194 | 5,216 |
Prepaid expenses and other assets, net | 11,197 | 18,949 |
Other receivables, net | 1,984 | 5,621 |
Investments in unconsolidated entities | 111,887 | 118,115 |
Deferred tax assets, net | 3,233 | 2,264 |
Property and equipment, net | 2,546 | 3,013 |
Intangible assets, net | 3,500 | 4,388 |
Assets of discontinued operations | 576,445 | 663,118 |
Accounts payable | 14,438 | 20,133 |
Accrued expenses and other liabilities | 44,554 | 52,456 |
Income taxes payable | 8,076 | 12,028 |
Customer deposits | 11,166 | 32,637 |
Loans payable and other borrowings | 90,331 | 138,757 |
Liabilities of discontinued operations | $168,565 | $256,011 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Letters of credit and surety bonds outstanding | $152.90 | $212.20 |
Real_Estate_Inventory_And_Land2
Real Estate Inventory And Land Deposits - Schedule of Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate [Abstract] | ||
Operating communities, including capitalized interest | $2,217,067 | $1,651,218 |
Real estate held for development or held for sale (completed homes) | 294,556 | 342,767 |
Total owned inventory | 2,511,623 | 1,993,985 |
Real estate not owned under option contracts | 6,698 | 18,595 |
Total real estate inventory | $2,518,321 | $2,012,580 |
Real_Estate_Inventory_And_Land3
Real Estate Inventory And Land Deposits - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate [Abstract] | |||
Interest capitalized - beginning of period | $71,263 | $45,387 | $19,460 |
Interest incurred | 88,782 | 61,582 | 46,340 |
Interest expensed | -812 | ||
Interest amortized to cost of closings | -65,165 | -34,894 | -20,413 |
Interest capitalized - end of period | $94,880 | $71,263 | $45,387 |
Real_Estate_Inventory_And_Land4
Real Estate Inventory And Land Deposits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lot | Lot | ||
Real Estate [Abstract] | |||
Right to purchase lots of land option | 5,372 | 6,570 | |
Aggregate purchase price | $323,500,000 | $500,900,000 | |
Land deposits | 34,500,000 | 38,000,000 | |
Impairment of option deposits and capitalized pre-acquisition costs | $0 | $0 | $0 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities - Additional Information (Detail) | Dec. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | |
Related and unrelated third parties ownership interests | 50.00% |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Entities - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities and owners' equity: | ||
Debt | $1,737,106 | |
Equity Method Investments [Member] | ||
Assets: | ||
Real estate inventory | 396,858 | 59,357 |
Other assets | 59,963 | 16,440 |
Total assets | 456,821 | 75,797 |
Liabilities and owners' equity: | ||
Debt | 129,561 | 30,471 |
Other liabilities | 8,870 | 1,483 |
Total liabilities | 138,431 | 31,954 |
Owners' equity: | ||
TMHC | 110,291 | 21,435 |
Others | 208,099 | 22,408 |
Total owners' equity | 318,390 | 43,843 |
Total liabilities and owners' equity | $456,821 | $75,797 |
Investments_in_Unconsolidated_4
Investments in Unconsolidated Entities - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Company's share in income of unconsolidated entities | $5,405 | $2,895 | $1,214 |
Distributions of earnings from unconsolidated entities | 32,966 | 30,136 | 36,746 |
Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 23,020 | 11,062 | 9,769 |
Costs and expenses | -12,221 | -4,002 | -6,248 |
Income of unconsolidated entities | 10,799 | 7,060 | 3,521 |
Company's share in income of unconsolidated entities | 5,405 | 2,895 | 1,214 |
Distributions of earnings from unconsolidated entities | $3,746 | $1,800 | $3,217 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $14 | $14 | |
Finite-lived intangible assets, accumulated amortization | 8.5 | 4.7 | |
Amortization expenses | 1.1 | 1.1 | 0.4 |
Lot option contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses reclassified to real estate inventory | $2.70 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other Liabilities Disclosure [Abstract] | ||||
Real estate development costs to complete | $24,222 | $15,422 | ||
Compensation and employee benefits | 51,475 | 44,264 | ||
Self insurance and warranty reserves | 44,595 | 34,814 | 31,962 | 36,235 |
Interest payable | 22,033 | 16,898 | ||
Property and sales taxes payable | 12,808 | 12,529 | ||
Other accruals | 45,423 | 38,117 | ||
Total accrued expenses and other liabilities | $200,556 | $162,044 |
Accrued_Expenses_and_Other_Lia3
Accrued Expenses and Other Liabilities - Summary of Changes in Reserves (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranties Disclosures [Abstract] | |||
Reserve - beginning of period | $34,814 | $31,962 | $36,235 |
Additions to reserves | 16,882 | 14,880 | 1,117 |
Costs and claims incurred | -6,799 | -10,788 | -8,053 |
Change in estimates to pre-existing reserves | -302 | -1,240 | 2,663 |
Reserve - end of period | $44,595 | $34,814 | $31,962 |
Debt_Senior_Notes_and_Other_Bo
Debt - Senior Notes and Other Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $1,388,840 | $1,039,497 |
Short term debt | 40,000 | |
Mortgage borrowings | 160,750 | 74,892 |
Total debt | 147,516 | 143,341 |
Total debt | 1,737,106 | 1,257,730 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Short term debt | 40,000 | |
5.625% Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 350,000 | |
5.25% Senior Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 550,000 | 550,000 |
7.75% Senior Notes due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 488,840 | 489,497 |
Mortgage Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage borrowings | 160,750 | 74,892 |
Loans Payable and Other Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $147,516 | $143,341 |
Debt_Senior_Notes_and_Other_Bo1
Debt - Senior Notes and Other Borrowings (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Mar. 05, 2014 | Dec. 31, 2013 | Apr. 16, 2013 |
5.625% Senior Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.63% | 5.63% | ||
Unamortized debt issuance costs | $4,900,000 | |||
5.25% Senior Notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.25% | 5.25% | ||
Unamortized debt issuance costs | 7,500,000 | 8,700,000 | ||
7.75% Senior Notes due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 7.75% | |||
Unamortized debt issuance costs | 8,900,000 | 10,600,000 | ||
Unamortized bond premium | 3,400,000 | 4,100,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | 5,600,000 | 7,400,000 | ||
Maximum Borrowing Capacity on Line of Credit | $400,000,000 |
Debt_2020_Senior_Notes_Additio
Debt - 2020 Senior Notes - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 12, 2013 | Dec. 31, 2014 | Apr. 13, 2012 | Aug. 21, 2012 |
Debt Instrument [Line Items] | ||||
IPO proceeds used to purchase New TMM Units | $204.30 | |||
2020 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes covenants description | The indenture for the 2020 Senior Notes contains covenants that limit (i) the making of investments, (ii) the payment of dividends and the redemption of equity and junior debt, (iii) the incurrence of additional indebtedness, (iv) asset dispositions, (v) mergers and similar corporate transactions, (vi) the incurrence of liens, (vii) the incurrence of prohibitions on payments and asset transfers among the issuers and restricted subsidiaries and (viii) transactions with affiliates, among others. | |||
Debt instrument purchase price, percentage | 101.00% | |||
Debt instrument purchase price, description | If we do not apply the net cash proceeds of certain asset sales within specified deadlines, we will be required to offer to repurchase the 2020 Senior Notes at par (plus accrued and unpaid interest) with such proceeds. We are also required to offer to repurchase the 2020 Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events. | |||
Initial Notes [Member] | 2020 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued amount | 550 | |||
Stated interest rate of Senior Note | 7.75% | |||
Initial offering price as percentage of principal amount | 100.00% | |||
Proceeds from offering retained for general corporate purposes | 187.4 | |||
Debt issue costs settled outside the bond proceeds | 3 | |||
Additional 2020 Senior Notes [Member] | 2020 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued amount | $125 | |||
Stated interest rate of Senior Note | 7.75% | |||
Initial offering price as percentage of principal amount | 105.50% |
Debt_2021_Senior_Notes_Additio
Debt - 2021 Senior Notes - Additional Information 1 (Detail) (5.25% Senior Notes due 2021 [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Apr. 16, 2013 |
5.25% Senior Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $550 | |
Stated interest rate of senior notes | 5.25% | 5.25% |
Senior Notes, maturity date | 15-Apr-21 |
Debt_2024_Senior_Notes_Additio
Debt - 2024 Senior Notes - Additional Information 2 (Detail) (5.625% Senior Notes due 2024 [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 05, 2014 |
5.625% Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $350 | |
Stated interest rate of senior notes | 5.63% | 5.63% |
Senior Notes, maturity date | 1-Mar-24 | |
Redemption price | 100.00% |
Debt_Revolving_Credit_Facility
Debt - Revolving Credit Facility - Additional Information 3 (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
Maximum capitalization ratio | 60.00% |
Actual capitalization ratio | 41.00% |
Minimum consolidated tangible net worth requirement | $1,300,000,000 |
Tangible net worth | 1,700,000,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Restated revolving credit facility | $40,000,000 |
Maturity date on credit facility | 12-Apr-17 |
Debt_Summary_of_Mortgage_Subsi
Debt - Summary of Mortgage Subsidiary Borrowings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $160,750 | $74,892 |
Secured Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 160,750 | 74,892 |
Facility Amount | 235,000 | 80,000 |
Secured Debt [Member] | Flagstar [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 62,894 | 38,084 |
Facility Amount | 85,000 | 30,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Expiration date | 30 days written notice | 30 days written notice |
Secured Debt [Member] | JPMorgan [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 86,426 | |
Facility Amount | 100,000 | |
Expiration Date | 28-Sep-15 | |
Collateral | Pledged Cash | |
Secured Debt [Member] | Comerica [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 11,430 | 36,808 |
Facility Amount | $50,000 | $50,000 |
Expiration Date | 19-Aug-15 | 5-Jun-14 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Flagstar [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate, basis | LIBOR | LIBOR |
Interest rate, spread rate | 2.50% | 2.50% |
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | JPMorgan [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate, basis | 2.50% plus 30-day LIBOR to 2.875% plus 30-day LIBOR or 0.25% (whichever is greater) | |
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Comerica [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate, basis | LIBOR | LIBOR |
Interest rate, spread rate | 2.75% | 2.88% |
Debt_Summary_of_Mortgage_Subsi1
Debt - Summary of Mortgage Subsidiary Borrowings (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 02, 2014 | |
Line of Credit Facility [Line Items] | |||
Mortgage borrowings outstanding, collateralized amount | $191,140,000 | $95,718,000 | |
Secured Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Mortgage borrowings outstanding, collateralized amount | 191,100,000 | 95,700,000 | |
Collateralized amount of restricted short-term investments | 1,300,000 | 2,000,000 | |
Maximum loan amount under agreement | 235,000,000 | 80,000,000 | |
Secured Debt [Member] | JPMorgan [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum loan amount under agreement | 100,000,000 | ||
Expiration Date | 28-Sep-15 | ||
Secured Debt [Member] | JPMorgan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate under the agreement, description | 2.50% plus 30-day LIBOR to 2.875% plus 30-day LIBOR or 0.25% (whichever is greater) | ||
Temporary Increase [Member] | JPMorgan [Member] | |||
Line of Credit Facility [Line Items] | |||
Expiration Date | 23-Jan-15 | ||
Minimum [Member] | Secured Debt [Member] | JPMorgan [Member] | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity under agreement | 50,000,000 | ||
Minimum [Member] | Secured Debt [Member] | JPMorgan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate under the agreement | 287.50% | ||
Maximum [Member] | Secured Debt [Member] | JPMorgan [Member] | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity under agreement | $100,000,000 | ||
Maximum [Member] | Secured Debt [Member] | JPMorgan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate under the agreement | 2.50% |
Debt_Loans_Payable_and_Other_B
Debt - Loans Payable and Other Borrowings - Additional Information 4 (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||
Interest on loans payable | 0.00% | 0.00% |
Interest on loans payable | 8.00% | 8.00% |
Debt_Principal_Maturities_of_T
Debt - Principal Maturities of Total Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |
2015 | $252,278 |
2016 | 54,685 |
2017 | 12,724 |
2018 | 9,239 |
2019 | 13,190 |
Thereafter | 1,394,990 |
Total debt | $1,737,106 |
Derivative_Financial_Instrumen1
Derivative Financial Instrument and Hedging Activity - Additional Information (Detail) (Foreign Exchange Forward [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Foreign Exchange Forward [Member] | |
Derivatives, Fair Value [Line Items] | |
Aggregate derivative notional amount | $471.20 |
Derivative financial instrument final settlement date | 30-Jan-15 |
Fair_Value_Disclosures_Carryin
Fair Value Disclosures - Carrying Value and Fair Value of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $1,737,106 | |
Mortgages receivable, carrying value | 191,140 | 95,718 |
Significant Other Observable Inputs (Level 2) [Member] | Loans Payable and Other Borrowings [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 147,516 | 143,341 |
Estimated Fair Value | 147,516 | 143,341 |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgages receivable, carrying value | 191,140 | 95,718 |
Mortgages and loans receivable, estimated fair value | 191,140 | 95,718 |
Significant Other Observable Inputs (Level 2) [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 40,000 | |
Estimated Fair Value | 40,000 | |
7.75% Senior Notes due 2020 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 488,840 | 489,497 |
Estimated Fair Value | 518,170 | 537,223 |
5.25% Senior Notes due 2021 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 550,000 | 550,000 |
Estimated Fair Value | 539,000 | 532,125 |
5.625% Senior Notes due 2024 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 350,000 | |
Estimated Fair Value | 336,000 | |
Mortgage Borrowings [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 160,750 | 74,892 |
Estimated Fair Value | $160,750 | $74,892 |
Fair_Value_Disclosures_Carryin1
Fair Value Disclosures - Carrying Value and Fair Value of Financial Instruments (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2013 | |
7.75% Senior Notes due 2020 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt interest rate | 7.75% | 7.75% |
Debt instrument maturity, year | 2020 | 2020 |
5.25% Senior Notes due 2021 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt interest rate | 5.25% | 5.25% |
Debt instrument maturity, year | 2021 | 2021 |
5.625% Senior Notes due 2024 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt interest rate | 5.63% | |
Debt instrument maturity, year | 2024 |
Income_Taxes_Schedule_of_Benef
Income Taxes - Schedule of (Benefit) Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $83,193 | ($24,403) | ($284,301) |
Foreign | -6,798 | 593 | 3 |
Total income tax provision (benefit) | 76,395 | -23,810 | -284,298 |
Current: | |||
Federal | 91,981 | -55,771 | -12,084 |
State | -1,341 | 2,259 | 890 |
Foreign | 593 | 4 | |
Current tax provision (benefit) | 90,640 | -52,919 | -11,190 |
Deferred: | |||
Federal | -13,549 | 24,179 | -218,967 |
State | 6,102 | 4,930 | -54,141 |
Foreign | -6,798 | ||
Deferred tax provision (benefit) | -14,245 | 29,109 | -273,108 |
Total income tax provision (benefit) | $76,395 | ($23,810) | ($284,298) |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income (Loss) Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $294,002 | ($3,180) | $73,317 | ||||||||
Foreign | 7,992 | 7,725 | -1,660 | ||||||||
Income before income taxes | $119,480 | $69,050 | $65,508 | $47,956 | $84,197 | $52,820 | ($160,601) | $28,129 | $301,994 | $4,545 | $71,657 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | |
Income Tax [Line Items] | |||||
Deferred tax assets, valuation allowance | $8,921,000 | $40,030,000 | |||
Net operating loss carryforwards offset future taxable income, period | 20-year | ||||
Change in the valuation allowance | 31,100,000 | 22,900,000 | |||
State deferred tax assets | 11,200,000 | 16,100,000 | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% | ||
Net unrealized losses realized period | 5 years | ||||
Reduction of income tax expense | 83,500,000 | 15,000,000 | |||
Income tax reserves | 8,700,000 | 74,800,000 | |||
Percentage of tax benefit realized upon ultimate settlement with taxing authority | 50.00% | ||||
Recognized potential penalties and interest expense on uncertain tax positions | 0 | 300,000 | 3,000,000 | ||
Accrued interest and penalties | 0 | 1,200,000 | |||
Interest and penalties | 0 | 18,400,000 | |||
Federal NOL Carryforwards [Member] | |||||
Income Tax [Line Items] | |||||
Net operating loss carryforwards offset future taxable income, period | Federal NOL carryforwards may be used to offset future taxable income for 20 years and begin to expire in 2027. | ||||
Net operating loss carryforwards offset future taxable income expiration year | 2027 | ||||
NOL carryforwards | 150,200,000 | ||||
State NOL Carryforward [Member] | |||||
Income Tax [Line Items] | |||||
Net operating loss carryforwards offset future taxable income, period | State NOL carryforwards may be used to offset future taxable income for a period of time ranging from 5 to 20 years, depending on the state, and begin to expire in 2025. | ||||
Net operating loss carryforwards offset future taxable income expiration year | 2025 | ||||
Canada [Member] | |||||
Income Tax [Line Items] | |||||
Net operating loss carryforwards offset future taxable income, period | 20 years | ||||
Net operating loss carryforwards offset future taxable income expiration year | 2031 | ||||
NOL carryforwards | $31,800,000 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes (net of federal benefit) | 3.60% | 97.00% | -48.30% |
Foreign income taxed below U.S. Rate | -1.10% | 14.10% | -3.30% |
Valuation allowance | -10.40% | -348.20% | -409.60% |
Built in loss limitation | 3.10% | 179.20% | 56.10% |
Tax indemnity | 683.70% | 6.40% | |
Uncertain tax positions | -1824.00% | -18.20% | |
Transaction costs | -6.50% | ||
Non-controlling interest | -0.20% | ||
Deferred tax adjustments | -10.40% | ||
Disallowed compensation expense | 0.20% | 650.40% | |
Holding company tax | -1.40% | 93.00% | |
Domestic Manufacturing Deduction | -2.80% | ||
Other | -0.70% | -104.00% | 2.00% |
Effective Rate | 25.30% | -523.80% | -396.80% |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Real estate inventory | $157,722 | $179,548 |
Accruals and reserves | 18,366 | 19,367 |
Other | 21,217 | 22,601 |
Net operating losses | 72,148 | 73,222 |
Foreign exchange | 959 | |
Total deferred tax assets | 269,453 | 295,697 |
Deferred tax liabilities | ||
Real estate inventory, intangibles, other | -2,342 | -13,011 |
Valuation allowance | -8,921 | -40,030 |
Total net deferred tax assets | $258,190 | $242,656 |
Income_Taxes_Summary_of_Compon1
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred tax assets for discontinued operations | $3,233 | $2,264 |
Income_Taxes_Schedule_of_Recon1
Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning of the period | $2,035 | $85,703 | $98,322 |
Increases of current year items | 7,200 | 1,394 | |
Increases of prior year items | 318 | 252 | 390 |
Settlement with tax authorities | -90,442 | -615 | |
Decreases for tax positions of prior years | -12,865 | ||
Decreases due to statute of limitations | -678 | -923 | |
End of the period | $2,353 | $2,035 | $85,703 |
Income_Taxes_Schedule_of_Recon2
Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits for discontinued operations | $6.20 | $7.90 | $9.80 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Number of Shares Outstanding and Reserved by Class of Stock (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Common Stock issued and outstanding | 122,287,956 | |
Preferred Stock | 0 | 0 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common Stock issued and outstanding | 33,060,540 | 32,857,800 |
Common Stock reserved for future option and unit issuances | 6,439,532 | |
Common Class A [Member] | New TMM Units [Member] | ||
Class of Stock [Line Items] | ||
Common Stock reserved for outstanding unit exchanges | 1,431,721 | |
Common Class A [Member] | Outstanding Stock Options and Restricted Stock Units [Member] | ||
Class of Stock [Line Items] | ||
Common Stock reserved for outstanding options and restricted stock units | 1,510,708 | |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common Stock issued and outstanding | 89,227,416 | 89,451,164 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Apr. 12, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 03, 2014 | |
Class of Stock [Line Items] | |||||
Description of voting | Holders of Class A Common Stock and Class B Common Stock are entitled to one vote for each share held on all matters submitted to stockholders for their vote or approval. | ||||
Equity (distributions) contributions | ($2,000,000) | $2,413,000 | |||
Net proceeds | 668,600,000 | ||||
IPO proceeds used to purchase New TMM Units | 204,300,000 | ||||
Common stock exchange agreement | One share of Class B Common Stock, together with one new TMM Unit is exchangeable into a share of Class A Common Stock. | ||||
Allocation of dilution on IPO | 297,600,000 | ||||
Business combination acquisition less than book value | 371,000,000 | ||||
New TMM Units [Member] | |||||
Class of Stock [Line Items] | |||||
Net proceeds | 668,600,000 | ||||
IPO proceeds used to purchase New TMM Units | 204,300,000 | ||||
Remaining IPO proceeds used to purchase New TMM Units | 464,400,000 | ||||
Cash on hand | 18,100,000 | ||||
Common Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued | 33,060,540 | 32,857,800 | |||
Equity (distributions) contributions | 668,600,000 | ||||
Common Stock authorized repurchase value | $50,000,000 | ||||
Common Stock repurchase effective date | 31-Dec-15 | ||||
Common Class A [Member] | Initial Public Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued | 32,857,800 | ||||
Number of common stock sold to underwriters | 4,285,800 | ||||
Common stock initial public offering price | $22 | ||||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued | 89,227,416 | 89,451,164 | |||
Common Class B [Member] | New TMM Units [Member] | |||||
Class of Stock [Line Items] | |||||
Repurchase of New TMM Units and corresponding number of Class B Common Stock, shares | 23,333,800 | ||||
Issuance of Common Stock, net of offering costs, shares | 112,784,964 |
Stockholders_Equity_Components
Stockholders' Equity - Components and Voting Power of Outstanding Common Stock (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||
Common Stock Outstanding | 122,287,956 | |
Percentage | 100.00% | |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Outstanding | 33,060,540 | 32,857,800 |
Percentage | 27.00% | |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Outstanding | 89,227,416 | 89,451,164 |
Percentage | 73.00% | 73.10% |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares subject to awards | 7,956,955 | ||
Aggregate unamortized outstanding stock based compensation | $16 | $21.30 | $6.90 |
Aggregate intrinsic value exercised based on market price | $18.89 | ||
Shares withheld on net settlement | 203 | ||
Weighted-average period (in years) that expense is expected to be recognized | 3 years 4 months 24 days | 4 years 3 months 18 days | |
Reorganization transaction charge | 80.2 | ||
New TMM Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of units vested | 20.00% | ||
Outstanding and unvested shares | 792,320 | 1,171,284 | |
Weighted-average period (in years) that expense is expected to be recognized | 5 years | ||
Vesting period | 24 months | ||
Shares vested | 639,401 | 484,185 | |
2013 Omnibus Equity Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares subject to awards | 7,956,955 | ||
Performance Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock initial public offering price | $24.30 | ||
Outstanding and unvested shares | 175,790 | 179,931 | |
Weighted-average period (in years) that expense is expected to be recognized | 2 years 3 months 18 days | 3 years 3 months 18 days | |
Non-performance Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of units vested | 25.00% | ||
Shares withheld on net settlement | 203 | ||
Outstanding and unvested shares | 9,889 | 8,885 | |
Weighted-average period (in years) that expense is expected to be recognized | 1 year 3 months 18 days | 1 year 10 months 24 days | |
Non-performance Restricted Stock Units (RSUs) [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock initial public offering price | $22 | ||
Performance Vesting Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and unvested shares | 752,782 | ||
Performance Vesting Units [Member] | Class M Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant date fair value | $2.80 |
Stock_Based_Compensation_Summa
Stock Based Compensation - Summary of Common Stock Available for Future Grants (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Balance, beginning | 6,517,310 | |
Shares approved for issuance under the Plan | 7,956,955 | |
Grants | -103,622 | -1,581,675 |
Forfeited/cancelled | 25,641 | 142,030 |
Shares withheld for tax withholdings | 203 | |
Balance, ending | 6,439,532 | 6,517,310 |
Stock_Based_Compensation_Summa1
Stock Based Compensation - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | $5,831 | $87,318 | $1,975 |
Income tax benefit recognized | 53 | ||
Class J Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | 80,190 | ||
New TMM Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | 1,648 | 4,270 | 1,975 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | 2,920 | 2,043 | |
Non-performance Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock compensation | $1,263 | $815 |
Stock_Based_Compensation_Summa2
Stock Based Compensation - Summary of Stock Option Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation Related Costs [Abstract] | |||
Number of Options, Outstanding, Beginning balance | 1,250,829 | ||
Number of Options, Granted | 95,700 | 1,380,829 | |
Number of Options, Exercised | 0 | 0 | 0 |
Number of Options, Cancelled | -21,500 | -130,000 | |
Number of Options, Outstanding, Ending balance | 1,325,029 | 1,250,829 | |
Number of Options, Options exercisable | 7,963 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $22.45 | ||
Weighted Average Exercise Price, Granted | $20.91 | $22.41 | |
Weighted Average Exercise Price, Exercised | $0 | $0 | $0 |
Weighted Average Exercise Price, Cancelled | $22 | $22 | |
Weighted Average Exercise Price, Outstanding, Ending balance | $22.35 | $22.45 | |
Weighted Average Exercise Price, options exercisable | $20.93 | ||
Unamortized value of unvested stock options (net of estimated forfeitures) | $10,092 | $12,424 | |
Weighted-average period (in years) that expense is expected to be recognized | 3 years 4 months 24 days | 4 years 3 months 18 days | |
Weighted-average remaining contractual life (in years) for options outstanding | 8 years 3 months 18 days | 9 years 3 months 18 days | |
Weighted-average remaining contractual life (in years) for options exercisable | 8 years 6 months | 0 years |
Stock_Based_Compensation_Summa3
Stock Based Compensation - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 48.60% | 56.59% |
Risk-free interest rate | 0.54% | |
Risk-free interest rate, minimum | 1.13% | |
Risk-free interest rate, maximum | 1.34% | |
Expected term (years) | 4 years 6 months | 4 years 3 months 11 days |
Weighted average fair value of options granted during the period | $8.59 | $11.57 |
Stock_Based_Compensation_Summa4
Stock Based Compensation - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Aggregate intrinsic value of options outstanding | $8,046 | $520 | |
Aggregate intrinsic value of options exercisable | $0 | $0 | $0 |
Stock_Based_Compensation_Summa5
Stock Based Compensation - Summary of Activity of Performance Restricted Stock Units (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average period expense is expected to be recognized | 3 years 4 months 24 days | 4 years 3 months 18 days |
Performance Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, Beginning balance | 179,931 | |
Number of Awards, Granted | 191,961 | |
Number of Awards, Vested | 0 | 0 |
Number of Awards, Forfeited | -4,141 | -12,030 |
Number of Awards, Ending balance | 175,790 | 179,931 |
PRSU expense recognized during the year ended December 31 | 1,054 | 780 |
Unamortized value of PRSUs at December 31 | 2,438 | 3,593 |
Weighted-average period expense is expected to be recognized | 2 years 3 months 18 days | 3 years 3 months 18 days |
Stock_Based_Compensation_Summa6
Stock Based Compensation - Summary of Activity of Restricted Stock Units (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period expense is expected to be recognized | 3 years 4 months 24 days | 4 years 3 months 18 days | |
Non-performance Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Awards, Beginning balance | 8,885 | ||
Number of Awards, Granted | 7,922 | 8,885 | |
Number of Awards, Vested | -6,919 | ||
Number of Awards, Forfeited | 0 | 0 | 0 |
Number of Awards, Ending balance | 9,889 | 8,885 | |
Weighted Average Grand Date Fair Value, Outstanding, Beginning balance | $20.82 | ||
Weighted Average Grand Date Fair Value, Granted | $22.09 | $20.82 | |
Weighted Average Grand Date Fair Value, Vested | $20.24 | ||
Weighted Average Grand Date Fair Value, Forfeited | $0 | $0 | $0 |
Weighted Average Grand Date Fair Value, Outstanding, Ending balance | $22.25 | $20.82 | |
RSU expense recognized during the year ended December 31 | $209 | $36 | |
Unamortized value of RSUs at December 31 | $100 | $149 | |
Weighted-average period expense is expected to be recognized | 1 year 3 months 18 days | 1 year 10 months 24 days |
Stock_Based_Compensation_Summa7
Stock Based Compensation - Summary of Stock Option Activity (Detail) (New TMM Units [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
New TMM Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, Beginning balance | 1,655,469 | 1,812,099 |
Number of Awards, Paid out in connection with the IPO | -156,630 | |
Number of Awards, Exercised | -196,024 | |
Number of Awards, Forfeited | -27,724 | |
Number of Awards, Ending balance | 1,431,721 | 1,655,469 |
Unvested New TMM Units included in ending balance | 792,320 | 1,171,284 |
Weighted Average Grant Date Fair Value, Beginning balance | $5.02 | $4.90 |
Weighted Average Grant Date Fair Value, Paid out in connection with the IPO | $3.64 | |
Weighted Average Grant Date Fair Value, Exercised | $4.22 | |
Weighted Average Grant Date Fair Value, Forfeited | $6.09 | |
Weighted Average Grant Date Fair Value, Ending balance | $5.11 | $5.02 |
Unvested New TMM Units included in ending balance | $5.30 | $5.20 |
Unamortized value of New TMM Units | $3,345 | $5,162 |
Weighted-average period expense is expected to be recognized | 2 years 2 months 12 days | 3 years 2 months 12 days |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||
Fees for management services and advice | $0 | $1,400,000 | ||||
Termination of service agreement | 29,800,000 | |||||
Non-cash indemnification and transaction expense | -195,773,000 | -13,034,000 | ||||
Class J Units [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock conversion feature | One-for-one basis | |||||
Affiliates [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Real estate inventory acquisitions from affiliates | 40,500,000 | 16,000,000 | ||||
Transaction costs related to Acquisition | 13,700,000 | 13,700,000 | ||||
Marblehead Development Partners LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Date of site acquisition | 8-Apr-14 | |||||
Initial capital investment in joint venture | 46,800,000 | |||||
Marblehead Development Partners LLC [Member] | California [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Area of coastal residential development | 195.5 | |||||
Tramonto Development Partners, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Initial capital investment in joint venture | 16,500,000 | 16,500,000 | ||||
Non-recourse construction and development loan | 54,500,000 | |||||
TMM Holdings Limited Partnership [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Non-cash indemnification and transaction expense | 80,200,000 | |||||
Starwood Property Trust [Member] | Marblehead Development Partners LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Non-recourse construction and development loan | $264,200,000 |
Employee_Benefit_Retirement_an2
Employee Benefit, Retirement, and Deferred Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated other comprehensive loss | ($10,910,000) | ($452,000) | ||
U.S. Cash Balance Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution made to consolidated defined benefit plan | 1,400,000 | 700,000 | 1,000,000 | |
Calculation under consolidated defined benefit plan | The contribution percentage is based on participant's age and ranges from 2% to 4% of eligible compensation, plus 1% of eligible compensation over the social security wage base. | |||
Accrued obligations | 33,929,000 | 29,848,000 | 33,592,000 | |
Percentage of eligible compensation over social security wages base | 1.00% | |||
Unfunded status of consolidated defined benefit plan | 10,200,000 | 5,900,000 | ||
Accumulated other comprehensive loss | 7,900,000 | 2,600,000 | ||
Long-term plan period | Five years and more | |||
U.S. Cash Balance Plan [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension cost recognized in accumulated other comprehensive loss | -100,000 | |||
Expect contribution | 900,000 | |||
U.S. Cash Balance Plan [Member] | U.K. Supplementary Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accrued obligations | 1,600,000 | 1,800,000 | ||
U.S. Cash Balance Plan [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of contribution based on participant's age and ranges | 4.00% | |||
U.S. Cash Balance Plan [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of contribution based on participant's age and ranges | 2.00% | |||
401 (k) Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee matching contribution | 100.00% | |||
Contribution made to consolidated defined benefit plan | $2,400,000 | $1,800,000 | $1,100,000 | |
Calculation under consolidated defined benefit plan | We match 100.0% of employeesb voluntary contributions up to 1% of eligible compensation, and 50.0% for each dollar contributed between 1% and 6% of eligible compensation. | |||
401 (k) Plan [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of contribution based on participant's age and ranges | 1.00% |
Employee_Benefit_Retirement_an3
Employee Benefit, Retirement, and Deferred Compensation Plans - Summary of Changes in Total Benefit Obligation and Fair Value of Assets and Funded Status (Detail) (U.S. Cash Balance Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Cash Balance Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation - beginning of period | $29,848 | $33,592 | |
Interest on liabilities | 1,345 | 1,294 | 1,326 |
Benefits paid | -570 | -1,025 | |
Settlements | -3,229 | ||
Actuarial loss (gain) | 6,535 | -4,013 | |
Benefit obligation - end of period | 33,929 | 29,848 | 33,592 |
Fair value of plan assets - beginning of period | 23,931 | 21,738 | |
Return on plan assets | 2,203 | 2,548 | |
Employer contributions | 1,357 | 670 | |
Benefits paid | -570 | -1,025 | |
Fair value of plan assets - end of period | $23,691 | $23,931 | $21,738 |
Unfunded status - end of period | 10238 | 5917 |
Employee_Benefit_Retirement_an4
Employee Benefit, Retirement, and Deferred Compensation Plans - Significant Weighted-Average Assumptions Adopted in Measuring Benefit Obligations and Net Periodic Pension Costs (Detail) (U.S. Cash Balance Plan [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. Cash Balance Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 4.49% | 3.90% | 4.31% |
Pension obligation | 3.98% | 4.80% | 3.81% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Employee_Benefit_Retirement_an5
Employee Benefit, Retirement, and Deferred Compensation Plans - Components of Net Periodic Pension Cost (Detail) (U.S. Cash Balance Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Cash Balance Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $1,345 | $1,294 | $1,326 |
Amortization of net actuarial loss | 34 | 133 | 108 |
Expected return on plan assets | -1,621 | -1,499 | -1,358 |
Net settlement loss | 609 | ||
Net periodic pension cost | $367 | ($72) | $76 |
Employee_Benefit_Retirement_an6
Employee Benefit, Retirement, and Deferred Compensation Plans - Summary of Estimated Future Benefit Payments (Detail) (U.S. Cash Balance Plan [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
U.S. Cash Balance Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $989 |
2016 | 984 |
2017 | 1,135 |
2018 | 1,423 |
2019 | 1,181 |
2020-2024 | $7,189 |
Employee_Benefit_Retirement_an7
Employee Benefit, Retirement, and Deferred Compensation Plans - Fair Value of Plan's Assets by Asset Categories (Detail) (U.S. Cash Balance Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $23,691 | $23,931 | $21,738 |
U.S. equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,820 | 8,677 | |
International equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,937 | 2,917 | |
Fixed-income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 10,391 | 10,757 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,090 | 1,089 | |
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 453 | 491 | |
Quoted Prices in Active Markets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 23,691 | 23,931 | |
Quoted Prices in Active Markets (Level 1) [Member] | U.S. equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 8,820 | 8,677 | |
Quoted Prices in Active Markets (Level 1) [Member] | International equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 2,937 | 2,917 | |
Quoted Prices in Active Markets (Level 1) [Member] | Fixed-income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 10,391 | 10,757 | |
Quoted Prices in Active Markets (Level 1) [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | 1,090 | 1,089 | |
Quoted Prices in Active Markets (Level 1) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets | $453 | $491 |
Employee_Benefit_Retirement_an8
Employee Benefit, Retirement, and Deferred Compensation Plans - Summary of Target Allocation Percentages of Plan Assets (Detail) (U.S. Cash Balance Plan [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Target | 100.00% |
U.S. equity securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 37.00% |
Maximum | 47.00% |
Target | 42.00% |
International equity securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 8.00% |
Maximum | 18.00% |
Target | 13.00% |
Fixed-income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 35.00% |
Maximum | 45.00% |
Target | 40.00% |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Maximum | 10.00% |
Target | 5.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | ($452) | ($34,365) | ||
Other comprehensive income (loss) before reclassifications | -41,724 | -11,578 | ||
Gross amounts reclassified from accumulated other comprehensive income (loss) | 43 | 3,673 | ||
Net settlement loss | 609 | |||
Foreign currency translation | -55 | 199 | ||
Income tax (expense) benefit | 2,411 | -1,537 | ||
Other comprehensive income (loss) net of tax | -38,716 | -9,244 | [1] | -4,300 |
Gross amounts reclassified within accumulated other comprehensive income (loss) | 28,258 | 43,157 | ||
Balance, end of period | -10,910 | -452 | -34,365 | |
Total Post-Retirement Benefits Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 3,987 | -12,088 | ||
Other comprehensive income (loss) before reclassifications | -6,303 | 6,107 | ||
Gross amounts reclassified from accumulated other comprehensive income (loss) | 43 | 177 | ||
Net settlement loss | 609 | |||
Foreign currency translation | -55 | 199 | ||
Income tax (expense) benefit | 2,411 | -2,496 | ||
Other comprehensive income (loss) net of tax | -3,295 | 3,987 | ||
Gross amounts reclassified within accumulated other comprehensive income (loss) | 12,088 | |||
Balance, end of period | 692 | 3,987 | ||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | -16,727 | -22,277 | ||
Other comprehensive income (loss) before reclassifications | -35,421 | -17,686 | ||
Income tax (expense) benefit | 959 | |||
Other comprehensive income (loss) net of tax | -35,421 | -16,727 | ||
Gross amounts reclassified within accumulated other comprehensive income (loss) | 22,277 | |||
Balance, end of period | -52,148 | -16,727 | ||
Non-controlling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 12,288 | |||
Gross amounts reclassified from accumulated other comprehensive income (loss) | 3,496 | |||
Other comprehensive income (loss) net of tax | 3,496 | |||
Gross amounts reclassified within accumulated other comprehensive income (loss) | 28,258 | 8,792 | ||
Balance, end of period | $40,546 | $12,288 | ||
[1] | The difference between other comprehensive income reported on this schedule and other comprehensive income reported in the Consolidated Statement of Stockholders' Equity is the result of deferred tax assets on post retirement benefits recorded in net income in the current year. |
Operating_and_Reporting_Segmen2
Operating and Reporting Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segments | |
Segment Reporting Information [Line Items] | |
Reportable segments | 3 |
Prior to Disposal of Monarch Business [Member] | |
Segment Reporting Information [Line Items] | |
Reportable segments | 3 |
Homebuilding [Member] | |
Segment Reporting Information [Line Items] | |
Operating divisions | 10 |
Reportable segments | 2 |
Mortgage Operations [Member] | |
Segment Reporting Information [Line Items] | |
Operating divisions | 1 |
Reportable segments | 1 |
Operating_and_Reporting_Segmen3
Operating and Reporting Segments - Segment Information Excluding Discontinued Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | $2,708,432 | $1,916,081 | $1,041,182 | ||||||||
Gross margin | 203,562 | 131,951 | 127,352 | 103,381 | 152,208 | 104,804 | 90,958 | 67,895 | 566,246 | 415,865 | 206,641 |
Equity in income of unconsolidated entities | 5,405 | 2,895 | 1,214 | ||||||||
Loss on extinguishment of debt | -10,141 | -7,953 | |||||||||
Interest and other (expense) income | -18,447 | -2,842 | -3,704 | ||||||||
Income before income taxes | 119,480 | 69,050 | 65,508 | 47,956 | 84,197 | 52,820 | -160,601 | 28,129 | 301,994 | 4,545 | 71,657 |
Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross margin | 566,246 | 415,865 | 206,641 | ||||||||
Selling, general and administrative expense | -250,050 | -204,617 | -112,265 | ||||||||
Equity in income of unconsolidated entities | 5,405 | 2,895 | 1,214 | ||||||||
Indemnification and transaction expenses | -195,773 | -13,034 | |||||||||
Loss on extinguishment of debt | -10,141 | -7,953 | |||||||||
Interest and other (expense) income | -19,607 | -3,684 | -2,946 | ||||||||
Income before income taxes | 301,994 | 4,545 | 71,657 | ||||||||
East [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 1,556,598 | 1,117,298 | 558,523 | ||||||||
East [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross margin | 341,481 | 227,695 | 111,424 | ||||||||
Selling, general and administrative expense | -131,048 | -102,582 | -50,272 | ||||||||
Equity in income of unconsolidated entities | 3,609 | 1,788 | 291 | ||||||||
Interest and other (expense) income | -16,690 | -4,506 | 561 | ||||||||
Income before income taxes | 197,352 | 122,395 | 62,004 | ||||||||
West [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 1,116,341 | 768,412 | 460,798 | ||||||||
West [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross margin | 208,943 | 174,245 | 84,622 | ||||||||
Selling, general and administrative expense | -66,880 | -52,521 | -37,240 | ||||||||
Equity in income of unconsolidated entities | 386 | -23 | 237 | ||||||||
Interest and other (expense) income | 1,604 | -714 | 168 | ||||||||
Income before income taxes | 144,053 | 120,987 | 47,787 | ||||||||
Mortgage Operations [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 35,493 | 30,371 | 21,861 | ||||||||
Mortgage Operations [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross margin | 15,822 | 13,925 | 10,595 | ||||||||
Equity in income of unconsolidated entities | 1,410 | 1,130 | 686 | ||||||||
Interest and other (expense) income | 1 | 3 | 5 | ||||||||
Income before income taxes | 17,233 | 15,058 | 11,286 | ||||||||
Corporate and Unallocated [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Selling, general and administrative expense | -52,122 | -49,514 | -24,753 | ||||||||
Indemnification and transaction expenses | -195,773 | -13,034 | |||||||||
Loss on extinguishment of debt | -10,141 | -7,953 | |||||||||
Interest and other (expense) income | -4,522 | 1,533 | -3,680 | ||||||||
Income before income taxes | ($56,644) | ($253,895) | ($49,420) |
Operating_and_Reporting_Segmen4
Operating and Reporting Segments - Assets from Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | $2,518,321 | $2,012,580 | |
Investments in unconsolidated entities | 110,291 | 21,435 | |
Total assets | 4,133,113 | 3,438,558 | |
Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 2,552,865 | 2,050,591 | |
Real estate inventory and land deposits | 1,389,788 | ||
Investments in unconsolidated entities | 110,291 | 21,435 | 1,255 |
Other assets | 1,469,957 | 1,366,532 | 1,347,013 |
Total assets | 4,133,113 | 3,438,558 | 2,738,056 |
Operating Segments [Member] | Discontinued Operations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Other assets | 576,445 | 663,118 | 636,769 |
Total assets | 576,445 | 663,118 | 636,769 |
East [Member] | Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,275,192 | 1,048,091 | |
Real estate inventory and land deposits | 741,911 | ||
Investments in unconsolidated entities | 57,138 | 20,191 | 723 |
Other assets | 166,854 | 103,107 | 109,611 |
Total assets | 1,499,184 | 1,171,389 | 852,245 |
West [Member] | Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,277,673 | 1,002,500 | |
Real estate inventory and land deposits | 647,877 | ||
Investments in unconsolidated entities | 51,909 | ||
Other assets | 37,989 | 27,842 | 22,069 |
Total assets | 1,367,571 | 1,030,342 | 669,946 |
Mortgage Operations [Member] | Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Investments in unconsolidated entities | 1,244 | 1,244 | 532 |
Other assets | 204,685 | 110,004 | 100,200 |
Total assets | 205,929 | 111,248 | 100,732 |
Corporate and Unallocated [Member] | Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Other assets | 483,984 | 462,461 | 478,364 |
Total assets | $483,984 | $462,461 | $462,461 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Schedule of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $1,011,753 | $629,196 | $597,008 | $470,475 | $639,000 | $491,018 | $450,366 | $335,697 | |||
Gross margin | 203,562 | 131,951 | 127,352 | 103,381 | 152,208 | 104,804 | 90,958 | 67,895 | 566,246 | 415,865 | 206,641 |
Income (loss) from continuing operations before income taxes | 119,480 | 69,050 | 65,508 | 47,956 | 84,197 | 52,820 | -160,601 | 28,129 | 301,994 | 4,545 | 71,657 |
Net income (loss) before allocation to non-controlling interests | 104,531 | 66,175 | 55,499 | 41,296 | 96,186 | 52,632 | -78,287 | 24,337 | 267,501 | 94,868 | 430,848 |
Net income available to Taylor Morrison Home Corporation | $27,875 | $17,846 | $14,816 | $10,932 | $25,830 | $14,263 | $5,327 | $71,469 | $45,420 | ||
Basic and diluted earnings per share | $0.84 | $0.54 | $0.45 | $0.33 | $0.79 | $0.43 | $0.16 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lot | Lot | ||
Commitments and Contingencies Disclosure [Abstract] | |||
Outstanding letters of credit | $315.60 | $156.90 | |
Right to purchase lots of land option | 5,372 | 6,570 | |
Aggregate purchase price | 323.5 | 500.9 | |
Land deposits | 34.5 | 38 | |
Legal accruals | 0.9 | 1.9 | |
Rent expense under non-cancelable operating leases | $4.20 | $3.70 | $2.60 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments under Non-Cancelable Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $5,489 |
2016 | 4,138 |
2017 | 3,520 |
2018 | 2,743 |
2019 | 1,710 |
Thereafter | 2,954 |
Total | $20,554 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 28, 2015 | Jan. 28, 2015 |
USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | |
Monarch [Member] | Monarch [Member] | |||
CAD | CAD | |||
Subsequent Event [Line Items] | ||||
Cash purchase price from sale of canadian operations | 335,000,000 | |||
Cash at canadian operations distributed to parent | 227,988,000 | 195,663,000 | 235,000,000 | |
Proceeds from sale of canadian operations | 570,000,000 | |||
Purchase premium earned | 102,000,000 |