Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35873 | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, $0.00001 par value | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Year Focus | FY | ||
Trading Symbol | TMHC | ||
Entity Registrant Name | TAYLOR MORRISON HOME CORP | ||
Entity Central Index Key | 0001562476 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | 83-2026677 | ||
Entity Address, Address Line One | 4900 N. Scottsdale Road | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line Two | Suite 2000 | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85251 | ||
City Area Code | 480 | ||
Local Phone Number | 840-8100 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float (in USD) | $ 2,171,406,765 | ||
Entity Common Stock, Shares Outstanding | 134,448,344 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Portions of Part III of this Form 10-K are incorporated by reference from the registrant’s definitive proxy statement for its 2020 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 326,437 | $ 329,645 |
Restricted cash | 2,135 | 2,214 |
Total cash, cash equivalents, and restricted cash | 328,572 | 331,859 |
Real estate inventory: | ||
Owned inventory | 3,967,359 | 3,965,306 |
Real estate not owned | 19,185 | 15,259 |
Total real estate inventory | 3,986,544 | 3,980,565 |
Land deposits | 39,810 | 57,929 |
Mortgage loans held for sale | 190,880 | 181,897 |
Derivative assets | 2,099 | 1,838 |
Operating lease right of use assets | 36,663 | |
Prepaid expenses and other assets, net | 85,515 | 98,225 |
Other receivables, net | 70,447 | 86,587 |
Investments in unconsolidated entities | 128,759 | 140,541 |
Deferred tax assets, net | 140,466 | 145,076 |
Property and equipment, net | 85,866 | 86,736 |
Intangible assets, net | 637 | 1,072 |
Goodwill | 149,428 | 152,116 |
Total assets | 5,245,686 | 5,264,441 |
Liabilities | ||
Accounts payable | 164,580 | 151,586 |
Accrued expenses and other liabilities | 325,368 | 266,686 |
Operating lease liabilities | 42,317 | |
Income taxes payable | 3,719 | 0 |
Customer deposits | 167,328 | 165,432 |
Estimated development liabilities | 36,705 | 37,147 |
Senior notes, net | 1,635,008 | 1,653,746 |
Loans payable and other borrowings | 182,531 | 225,497 |
Revolving credit facility borrowings | 0 | 200,000 |
Mortgage warehouse borrowings | 123,233 | 130,353 |
Liabilities attributable to real estate not owned | 19,185 | 15,259 |
Total liabilities | 2,699,974 | 2,845,706 |
COMMITMENTS AND CONTINGENCIES (Note 19) | ||
Stockholders’ Equity | ||
Common stock | 1 | 1 |
Additional paid-in capital | 2,097,995 | 2,071,579 |
Treasury stock at cost, 19,943,432 and 11,554,084 shares as of December 31, 2019 and December 31, 2018, respectively | (343,524) | (186,087) |
Retained earnings | 782,350 | 527,698 |
Accumulated other comprehensive income | 884 | 2,001 |
Total stockholders’ equity attributable to Taylor Morrison Home Corporation | 2,537,706 | 2,415,192 |
Non-controlling interests — joint ventures | 8,006 | 3,543 |
Total stockholders’ equity | 2,545,712 | 2,418,735 |
Total liabilities and stockholders’ equity | $ 5,245,686 | $ 5,264,441 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 125,794,719 | 124,519,492 |
Common stock, shares outstanding | 105,851,285 | 112,965,856 |
Treasury stock, shares outstanding | 19,943,432 | 11,554,084 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 4,762,059 | $ 4,227,393 | $ 3,885,290 |
Total cost of revenues | 3,937,969 | 3,489,200 | 3,146,361 |
Gross margin | 824,090 | 738,193 | 738,929 |
Sales, commissions and other marketing costs | 320,420 | 278,455 | 259,663 |
General and administrative expenses | 169,851 | 138,488 | 130,777 |
Equity in income of unconsolidated entities | (9,509) | (13,332) | (8,846) |
Interest income, net | (2,673) | (1,639) | (577) |
Other expense, net | 7,226 | 11,816 | 2,256 |
Transaction and corporate reorganization expenses | 10,697 | 50,889 | 0 |
Loss on extinguishment of debt | 5,806 | 0 | 0 |
Income before income taxes | 322,272 | 273,516 | 355,656 |
Income tax provision | 67,358 | 63,036 | 179,006 |
Net income before allocation to non-controlling interests | 254,914 | 210,480 | 176,650 |
Net income attributable to non-controlling interests — joint ventures | (262) | (533) | (430) |
Net income before allocation to non-controlling interests — Former Principal Equityholders | 254,652 | 209,947 | 176,220 |
Net income attributable to non-controlling interests — Former Principal Equityholders | 0 | (3,583) | (85,000) |
Net income available to Taylor Morrison Home Corporation | $ 254,652 | $ 206,364 | $ 91,220 |
Earnings per common share | |||
Basic (usd per share) | $ 2.38 | $ 1.85 | $ 1.47 |
Diluted (usd per share) | $ 2.35 | $ 1.83 | $ 1.47 |
Weighted average number of shares of common stock: | |||
Basic (in shares) | 106,997 | 111,743 | 62,061 |
Diluted (in shares) | 108,289 | 115,119 | 120,915 |
Home closings | |||
Revenue | $ 4,623,484 | $ 4,115,216 | $ 3,799,061 |
Total cost of revenues | 3,836,857 | 3,410,853 | 3,092,704 |
Land closings | |||
Revenue | 27,081 | 39,901 | 17,093 |
Total cost of revenues | 32,871 | 33,458 | 12,005 |
Financial services | |||
Revenue | 92,815 | 67,758 | 69,136 |
Total cost of revenues | 51,086 | 41,469 | 41,652 |
Amenity and other | |||
Revenue | 18,679 | 4,518 | 0 |
Total cost of revenues | $ 17,155 | $ 3,420 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before non-controlling interests, net of tax | $ 254,914 | $ 210,480 | $ 176,650 |
Post-retirement benefits adjustments, net of tax | (1,117) | (81) | 21 |
Comprehensive income | 253,797 | 210,399 | 176,671 |
Comprehensive income available to Taylor Morrison Home Corporation | 253,535 | 206,283 | 91,241 |
Joint Ventures | |||
Comprehensive (income) loss attributable to non-controlling interests - joint ventures/Principal Equityholders | (262) | (533) | (430) |
Principal Equityholders | |||
Comprehensive (income) loss attributable to non-controlling interests - joint ventures/Principal Equityholders | $ 0 | $ (3,583) | $ (85,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Common StockClass A | Common StockClass B | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling InterestJoint Ventures | Non-controlling InterestPartnership Interest |
Balance, beginning of period (shares) at Dec. 31, 2016 | 30,486,858 | 88,942,052 | 2,853,433 | |||||||
Balance, beginning of period at Dec. 31, 2016 | $ 2,160,202 | $ 0 | $ 1 | $ 384,709 | $ (43,524) | $ 228,613 | $ (17,989) | $ 1,525 | $ 1,606,867 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 176,650 | 91,220 | 430 | 85,000 | ||||||
Other comprehensive (loss) income | 21 | 21 | ||||||||
Other comprehensive (loss) income | 21 | |||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock (shares) | 260,389 | (260,389) | ||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock | 0 | |||||||||
Repurchase and cancellation of New TMM Units and corresponding Class B Common Stock (shares) | (2,047) | |||||||||
Repurchase and cancellation of New TMM Units and corresponding Class B Common Stock | 0 | |||||||||
Exercise of stock options (shares) | 288,808 | |||||||||
Exercise of stock options | 5,235 | 5,235 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax (shares) | 59,765 | |||||||||
Issuance of restricted stock units, net of shares withheld for tax | (307) | (307) | ||||||||
Repurchase of common stock (shares) | (195,824) | 195,824 | ||||||||
Repurchase of common stock | (4,098) | $ (4,098) | ||||||||
Exchange of (repurchase) of B shares from secondary (shares) | 51,500,000 | |||||||||
Exchange of (repurchase) of B shares from secondary | 946,431 | $ 1 | 946,430 | |||||||
Repurchase of New TMM Units from Former Principal Equityholders (shares) | (51,500,000) | |||||||||
Repurchase of New TMM Units from Former Principal Equityholders | (948,884) | $ (1) | (948,883) | |||||||
Stock based compensation | 11,587 | 5,806 | 5,781 | |||||||
Changes in non-controlling interest in consolidated joint ventures | (292) | (292) | ||||||||
Balance, end of period (shares) at Dec. 31, 2017 | 82,399,996 | 37,179,616 | 3,049,257 | |||||||
Balance, end of period at Dec. 31, 2017 | 2,346,545 | $ 1 | $ 0 | 1,341,873 | $ (47,622) | 319,833 | (17,968) | 1,663 | 748,765 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 210,480 | 206,364 | 533 | 3,583 | ||||||
Other comprehensive (loss) income | 19,969 | |||||||||
Other comprehensive (loss) income | (81) | (81) | ||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock (shares) | 20,487 | (20,487) | ||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock | 0 | 1,293 | (1,293) | |||||||
Repurchase and cancellation of New TMM Units and corresponding Class B Common Stock (shares) | (7,588,771) | |||||||||
Repurchase and cancellation of New TMM Units and corresponding Class B Common Stock | (201,775) | (201,775) | ||||||||
Exercise of stock options (shares) | 118,992 | |||||||||
Exercise of stock options | 1,887 | 1,887 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax (shares) | 409,681 | |||||||||
Issuance of restricted stock units, net of shares withheld for tax | (1,572) | (1,572) | ||||||||
Issuance of Class A common stock in connection with business acquisition (shares) | 8,951,169 | |||||||||
Issuance of Class A common stock in connection with business acquisition | $ 158,704 | 158,704 | ||||||||
Repurchase of common stock (shares) | (8,504,827) | (8,504,827) | 8,504,827 | |||||||
Repurchase of common stock | $ (138,465) | $ (138,465) | ||||||||
Exchange of (repurchase) of B shares from secondary (shares) | 28,706,924 | |||||||||
Exchange of (repurchase) of B shares from secondary | 729,954 | 729,954 | ||||||||
Repurchase of New TMM Units from Former Principal Equityholders (shares) | (28,706,924) | |||||||||
Repurchase of New TMM Units from Former Principal Equityholders | (730,964) | (730,964) | ||||||||
Stock based compensation | 21,124 | 20,703 | 421 | |||||||
Changes in non-controlling interest in consolidated joint ventures | 1,347 | 1,347 | ||||||||
Realized loss on foreign currency translation | 20,050 | 20,050 | ||||||||
Liquidation of Class B common stock in connection with holding company reorganization (shares) | 863,434 | (863,434) | ||||||||
Liquidation of Class B common stock in connection with holding company reorganization | 0 | 20,512 | (20,512) | |||||||
Balance, end of period (shares) at Dec. 31, 2018 | 112,965,856 | 0 | 11,554,084 | |||||||
Balance, end of period at Dec. 31, 2018 | 2,418,735 | $ 1 | $ 0 | 2,071,579 | $ (186,087) | 527,698 | 2,001 | 3,543 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 254,914 | 254,652 | 262 | |||||||
Other comprehensive (loss) income | (1,117) | (1,117) | ||||||||
Other comprehensive (loss) income | (1,117) | |||||||||
Exercise of stock options (shares) | 765,781 | |||||||||
Exercise of stock options | 13,238 | 13,238 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax (shares) | 508,996 | |||||||||
Issuance of restricted stock units, net of shares withheld for tax | $ (1,585) | (1,585) | ||||||||
Repurchase of common stock (shares) | (8,389,348) | (8,389,348) | 8,389,348 | |||||||
Repurchase of common stock | $ (157,437) | $ (157,437) | ||||||||
Repurchase of New TMM Units from Former Principal Equityholders | (43,700) | |||||||||
Stock based compensation | 14,763 | 14,763 | ||||||||
Distributions to non-controlling interests of consolidated joint ventures | 2,196 | 2,196 | ||||||||
Changes in non-controlling interest in consolidated joint ventures | 2,005 | 2,005 | ||||||||
Balance, end of period (shares) at Dec. 31, 2019 | 105,851,285 | 0 | 19,943,432 | |||||||
Balance, end of period at Dec. 31, 2019 | $ 2,545,712 | $ 1 | $ 0 | $ 2,097,995 | $ (343,524) | $ 782,350 | $ 884 | $ 8,006 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 254,914,000 | $ 210,480,000 | $ 176,650,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in income of unconsolidated entities | (9,509,000) | (13,332,000) | (8,846,000) |
Stock compensation expense | 14,763,000 | 21,124,000 | 11,587,000 |
Loss on extinguishment of debt | 5,806,000 | 0 | 0 |
Distributions of earnings from unconsolidated entities | 10,473,000 | 11,845,000 | 6,965,000 |
Depreciation and amortization | 31,424,000 | 26,391,000 | 3,953,000 |
Lease expense | 9,087,000 | 0 | 0 |
Debt issuance costs/premium amortization | 1,173,000 | 2,369,000 | 3,819,000 |
Realized loss on foreign currency translation | 0 | 20,050,000 | 0 |
Contingent consideration | 0 | 146,000 | 736,000 |
Deferred income taxes | 2,655,000 | 44,472,000 | 88,496,000 |
Inventory impairments | 9,384,000 | 9,631,000 | 0 |
Chicago assets held for sale valuation adjustments | 9,942,000 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Real estate inventory and land deposits | 990,000 | (248,215,000) | 41,723,000 |
Mortgages held for sale, prepaid expenses and other assets | (26,614,000) | (27,256,000) | 67,186,000 |
Customer deposits | 1,896,000 | 18,773,000 | |
Customer deposits | 20,956,000 | ||
Accounts payable, estimated development liability, and accrued expenses and other liabilities | 73,113,000 | 63,641,000 | (20,989,000) |
Income taxes payable | 3,719,000 | (4,525,000) | (6,003,000) |
Net cash provided by operating activities | 393,216,000 | 135,594,000 | 386,233,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (30,118,000) | (20,458,000) | (3,421,000) |
Payments for business acquisitions, net of cash acquired | 0 | (192,886,000) | 0 |
Distributions of capital from unconsolidated entities | 23,584,000 | 57,002,000 | 4,083,000 |
Investments of capital into unconsolidated entities | (12,766,000) | (3,376,000) | (36,657,000) |
Net cash used in investing activities | (19,300,000) | (159,718,000) | (35,995,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase in loans payable and other borrowings | 26,740,000 | 29,937,000 | 21,621,000 |
Repayments of loans payable and other borrowings | (30,383,000) | (25,319,000) | (16,511,000) |
Borrowings on revolving credit facility | 315,000,000 | 350,000,000 | 0 |
Payments on revolving credit facility | (515,000,000) | (150,000,000) | 0 |
Borrowings on mortgage warehouse | 1,145,799,000 | 863,109,000 | 838,172,000 |
Repayment on mortgage warehouse | (1,152,919,000) | (851,578,000) | (917,914,000) |
Proceeds from the issuance of senior notes | 950,000,000 | 0 | 0 |
Repayments on senior notes | (963,252,000) | 0 | 0 |
Payment of deferred financing costs | (11,603,000) | 0 | 0 |
Payment of contingent consideration | 0 | (265,000) | 0 |
Repayment of convertible notes | 0 | (95,816,000) | 0 |
Proceeds from stock option exercises | 13,238,000 | 1,887,000 | 5,235,000 |
Proceeds from issuance of shares from public offerings | 0 | 767,115,000 | 1,111,806,000 |
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders | 0 | (201,775,000) | 0 |
Repurchase of shares from Former Principal Equityholders | 0 | (768,125,000) | (1,114,259,000) |
Repurchase of common stock, net | (157,439,000) | (138,465,000) | (4,098,000) |
Payment of taxes related to net share settlement of equity awards | (1,585,000) | (1,572,000) | (307,000) |
Contributions to (distributions to) non-controlling interests of consolidated joint ventures, net | 4,201,000 | 1,347,000 | (292,000) |
Net cash used in financing activities | (377,203,000) | (219,520,000) | (76,547,000) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (3,287,000) | (243,644,000) | 273,691,000 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 331,859,000 | 575,503,000 | 301,812,000 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 328,572,000 | 331,859,000 | 575,503,000 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes paid, net | (20,129,000) | (63,484,000) | (96,525,000) |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Change in loans payable issued to sellers in connection with land purchase contracts | 94,186,000 | 146,427,000 | 66,685,000 |
Change in inventory not owned | 3,926,000 | 12,732,000 | (3,725,000) |
Change in prepaid expenses and other assets, net due to adoption of ASU 2014-09 | 0 | (32,004,000) | 0 |
Change in property and equipment, net due to adoption of ASU 2014-09 | 0 | 32,004,000 | 0 |
Change in operating lease right of use assets due to adoption of ASU 2016-02 | 36,663,000 | ||
Change in operating lease right of use liabilities due to adoption of ASU 2016-02 | 42,317,000 | ||
Issuance of common stock in connection with business acquisition | 0 | 158,704,000 | 0 |
Net non-cash distributions from unconsolidated entities | $ 0 | $ 29,510,000 | $ 0 |
Business
Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | BUSINESS Description of the Business — Taylor Morrison Home Corporation (referred to herein as “TMHC,” “we,” “our,” “the Company” and “us”), through its subsidiaries, owns and operates a residential homebuilding business and is a developer of lifestyle communities. As of December 31, 2019 we operated in Arizona, California, Colorado, Florida, Georgia, Illinois, North Carolina, South Carolina, and Texas. Our Company serves a wide array of consumer groups from coast to coast, including first time, move-up, luxury, and active adult. As of December 31, 2019 , our homebuilding segments operate under our Taylor Morrison and Darling Homes brand names. Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West, and Financial Services. The communities in our homebuilding segments offer single and multi-family attached and detached homes. We are the general contractors for all real estate projects and retain subcontractors for home construction and land development. Our Financial Services segment provides financial services to customers through our wholly owned mortgage subsidiary, operating as Taylor Morrison Home Funding, LLC (“TMHF”), title services through our wholly owned title services subsidiary, Inspired Title Service, LLC (“Inspired Title”), and homeowner’s insurance policies through our insurance agency, Taylor Morrison Insurance Services, LLC (“TMIS”). On October 2, 2018, we completed the acquisition of (the “AV Homes Acquisition”) of AV Homes, Inc. (“AV Homes”), a homebuilder and land developer of residential communities in Florida, North and South Carolina, Arizona and Texas. As of December 31, 2019, all operations relating to AV Homes have been fully integrated in our business. Refer to Note 3 - Business Combinations for additional detail regarding purchase consideration. On November 5, 2019, we entered into an agreement to acquire William Lyon Homes, one of the nation's largest homebuilders in the Western United States. William Lyon Homes designs, constructs, markets and sells single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington, Oregon and Texas. On February 6, 2020, we completed the acquisition of William Lyon Homes. In connection with the acquisition of William Lyon Homes, we paid approximately $95.7 million in cash and issued approximately 31.2 million shares of our Common Stock in aggregate merger consideration. Refer to Footnote 21 - Subsequent Events for additional discussion. On July 31, 2019, we announced an exclusive partnership with Christopher Todd Communities, a growing Phoenix-based developer of innovative, luxury rental communities to operate a “Build-to-Rent” homebuilding business. We serve as a land acquirer, developer, and homebuilder while Christopher Todd Communities provides community design and property management consultation. Organization of the Business — As a result of the completion of our initial public offering (“IPO”) on April 12, 2013 and a series of transactions pursuant to a Reorganization Agreement dated as of April 9, 2013, TMHC was formed and became the owner and general partner of TMM Holdings II Limited Partnership (“New TMM”), a direct subsidiary. New TMM was formed by a consortium of investors (the “Former Principal Equityholders”). From January 2017 through January 2018, we completed seven public offerings for an aggregate of 80.2 million shares of our Common Stock, using all of the net proceeds therefrom to repurchase our Former Principal Equityholders' indirect interest in TMHC. As a result of the series of offerings and repurchases, the Former Principal Equityholders ownership decreased to zero, resulting in a fully floated public company by January 31, 2018. In order to simplify our corporate structure, on October 26, 2018, Taylor Morrison Home II Corporation, a Delaware corporation formerly known as Taylor Morrison Home Corporation (“Original Taylor Morrison”) completed a holding company reorganization (the “Reorganization”), which resulted in a new parent company (“New Taylor Morrison”) owning all of the outstanding common stock of Original Taylor Morrison. New Taylor Morrison assumed the name Taylor Morrison Home Corporation and became the successor to Original Taylor Morrison. In connection with the Reorganization and the Contribution Agreement among the Company, Original Taylor Morrison and the holders of Original Taylor Morrison’s Class B common stock (the “Class B Common Stock”) and paired TMM II Units party thereto (the “Paired Interest Holders”), following the consummation of the Reorganization, each Paired Interest Holder contributed its partnership units (“TMM II Units”) of TMM Holdings II Limited Partnership, the principal subsidiary of the Company and Original Taylor Morrison (“TMM II”), and paired shares of the Company’s Class B Common Stock to the Company in exchange (the “Exchange”), on a one-for-one basis, for shares of the Company’s Class A Common Stock (the “ Class A Common Stock”). As a result of the Exchange, TMM II became an indirect wholly owned subsidiary of the Company. All of the Class B shares were cancelled following the Exchange. Therefore, the Company has only one class of common stock outstanding. Subsequently, the Class A Common Stock was renamed the Common Stock, as discussed further in Note 13 - Stockholders’ Equity below. References to "Common Stock" refer to “Class A Common Stock” for dates prior to June 10, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. Non-controlling interests — During the first quarter of 2018, we completed multiple offerings of our Common Stock in registered public offerings and used all of the net proceeds from the public offerings to purchase partnership units in New TMM (“New TMM Units”) along with shares of our former Class B Common Stock, held by our Former Principal Equityholders. Refer to Note 13- Stockholders' Equity for discussion regarding our equity offering transactions. In addition on October 26, 2018, in connection with our reorganization transactions, all Class B common shares were converted to Class A common shares and subsequently retired. The percentage of the Former Principal Equityholders net income is presented as “Net income attributable to non-controlling interests - Former Principal Equityholders” on the Consolidated Statements of Operations. Joint Ventures — We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, “Consolidation.” The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests - joint ventures” on the Consolidated Statements of Operations. Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, “Business Combinations.” In connection with the AV Homes Acquisition . we determined we obtained control of a business and inputs, processes and outputs in exchange for cash and equity consideration. All material assets and liabilities, including contingent consideration, were measured and recognized at fair value as of the date of the AV Homes Acquisition to reflect the purchase price paid, which resulted in goodwill. Refer to Note 3 - Business Combinations for further information regarding the purchase price allocation and related acquisition accounting. We incurred costs as a result of our completed and pending acquisitions. For the year ended December 31, 2019, we recognized an aggregate $10.7 million in fees relating to our acquisitions of William Lyon Homes and AV Homes which primarily consist of legal fees, compensation and other miscellaneous expenses. For the year ended December 31, 2018 we recognized $30.8 million of costs relating to our AV Homes Acquisition which primarily consist of expenses relating to investment banking fees, severance, compensation, and legal fees. Such charges have been recognized in transaction and corporate reorganization expenses on the Consolidated Statements of Operations. 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 acquired assets, valuation of goodwill, valuation of development liabilities, valuation of equity awards, valuation allowance on deferred tax assets and reserves for warranty and self-insured risks. Actual results could differ from those estimates. Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage borrowings. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, the concentration of debt between any one customer or region is below 50% as of year ended December 31, 2019 . 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, and entering into forward commitments to sell our mortgage receivables, generally within 30 days of origination. Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2019 , the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. Restricted Cash — For the year ended December 31, 2019 and 2018 , restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. Leases — We adopted Accounting Standards Update (“ASU”) No. 2016-02— Leases (Topic 842), as amended, on January 1, 2019, using the modified retrospective approach. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the hindsight practical expedient to determine the lease term for existing leases. Our leases primarily consist of office space, construction trailers, model leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. Adoption of the new standard resulted in the recording on January 1, 2019, of an opening balance of Operating lease right of use assets and Operating lease liabilities of approximately $27.4 million and $30.3 million , respectively. The weighted average discount rate used in determining these operating lease liabilities was 5.795% and the weighted average remaining lease term as of December 31, 2019 was 6.0 years. For the year-ended December 31, 2019 , payments on the lease liabilities were approximately $9.4 million . For the twelve months ended December 31, 2019 , we recorded lease expense of approximately $9.1 million within General and administrative expenses on our Consolidated Statement of Operations. The future minimum lease payments required under our leases as of December 31, 2019 are as follows (dollars in thousands): Years Ending December 31, Lease Payments 2020 $ 10,018 2021 8,868 2022 7,891 2023 7,323 2024 5,953 Thereafter 9,906 Total lease payments $ 49,959 Less: Interest $ 7,642 Present value of lease liabilities $ 42,317 Real Estate Inventory — Inventory consists of raw land, land under development, land held for sale, homes under construction, completed homes, and model homes, which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to cost of sales at the time of home closing using the specific identification method. Land acquisition, development, interest, real estate taxes and overhead are allocated to homes and units using 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 are generally allocated to the remaining lots on a prospective basis. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes. Such costs are expensed as incurred. We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. The life cycle of a typical community generally ranges from two to five years , commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to cost of sales when the related inventory is delivered or when the related inventory is charged to cost of sales. We assess the recoverability of our land inventory in accordance with the provisions of ASC Topic 360, “ Property, Plant, and Equipment .” We review our real estate inventory for indicators of impairment by community during each reporting period. If indicators of impairment are present for a community, generally, an undiscounted cash flow analysis is prepared in order to determine if the carrying value of the assets in that community exceeds the undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the year ended December 31, 2019 , we recorded $9.4 million of impairment charges in Cost of home closings on the Consolidated Statement of Operations, of which $2.5 million and $6.9 million relate to our East and Central reporting segments, respectively. For the year ended December 31, 2018 , we recorded $ 9.6 million of impairment charges of which $ 8.5 million and $ 1.1 million relate to our East and West reporting segments, respectively. For the year ended December 31, 2017 no impairment charges were recorded. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations. As of December 31, 2019 , our assets in Chicago are held for sale and as a result we adjusted the fair value of the assets within this division to the lower of fair value (less costs to sell) or net book value. In addition, we wrote off other components of the operations in accordance with the guidance set forth in Accounting Standards Codification 360 - Property, Plant, and Equipment . Total impacts to the Consolidated Statement of Operations include the following: Cost of home closings impact of $0.7 million , Cost of land closings impact of $9.9 million , Sales, commissions and other marketing costs impact of $0.4 million , General and administrative expenses impact of $1.1 million and Other expense, net impact of $1.2 million . For the years ended December 31, 2018 and 2017, we did not have material fair value adjustments relating to assets reclassified as held for sale. Refer to Note 21 - Subsequent Events for additional discussion relating to the sale of our Chicago assets. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. If we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes 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. In the ordinary course of business, we enter into various specific performance agreements to acquire lots. Real estate not owned under these agreements is consolidated into Real estate not owned with a corresponding liability in Liabilities attributable to real estate not owned in the Consolidated Balance Sheets. Land Deposits — We make deposits related to land options and land purchase contracts, which, when provided, are capitalized until the associated property is purchased. Non-refundable deposits are recorded as a real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to expense if the land acquisition process is terminated or no longer determined probable. Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing. Derivative Assets — We are exposed to interest rate risk for interest rate lock commitments (“IRLCs”) and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLC's and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge. ASC Topic 815-25 “Derivatives and Hedging,” requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting, therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in financial services revenue/expenses on the statement of operations in the period in which they occur. Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2019 2018 Prepaid expenses $ 48,674 $ 69,917 Other assets 32,812 28,308 Build-to-rent assets 4,029 — Total prepaid expenses and other assets, net $ 85,515 $ 98,225 Prepaid expenses consist primarily of sales commissions, sales presentation centers and model home costs, such as design fees and furniture, and the unamortized issuance costs for the prior Revolving Credit Facility. 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. Build-to-rent assets consist primarily of land and development costs relating to our projects under construction. Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. Allowances at December 31, 2019 and 2018 were immaterial. Investments in Consolidated and Unconsolidated Entities Consolidated Joint Ventures and Option Agreements — In the ordinary course of business, we participate in strategic land development and homebuilding joint ventures with third parties. The use of these entities, in some instances, enables us to acquire land to which we could not otherwise obtain access, or could not obtain access on terms that are as favorable. Some of these ventures develop land for the sole use of the venture participants and others develop land for sale to the joint venture participants and to unrelated builders. We review each joint venture partnership agreement to determine whether it is variable interest entity (“VIE”) in accordance with ASC Topic 810, “Consolidation.” 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, we are not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we continue our analysis to determine 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. For these entities in which we are expected to absorb the losses or benefits, we consolidate the results in the accompanying Consolidated Financial Statements. 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. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a third party. These joint ventures are recorded in investments in unconsolidated entities on the Consolidated Balance Sheets. We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized 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 related to investments in unconsolidated entities for the years ended December 31, 2019 , 2018 or 2017 . Income Taxes — We account for income taxes in accordance with ASC Topic 740, “Income Taxes.” Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. As a result of the Tax Cuts and Jobs Act (“Tax Act”) enacted on December 22, 2017, we recorded a material charge to our income tax provision in the period ending December 31, 2017. See Note 12 - Income Taxes for additional details. 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 $4.8 million , $4.0 million , and $2.8 million , respectively, for the years ended December 31, 2019 , 2018 , and 2017 . Depreciation expense is recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations. Intangible Assets, net — Intangible assets consist of tradenames, fair market value of leases, and non-compete covenants. We sell our homes under the Taylor Morrison and Darling Homes trade names. The fair value of acquired intangible assets was determined using the income approach, and are amortized on a straight line basis from three to 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 rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. There was no impairment of goodwill for the years ended December 31, 2019 , 2018 , and 2017 . For the year ended December 31, 2019, there were no additions to goodwill, however during 2019 we finalized our valuation of the assets and liabilities acquired from the AV Homes Acquisition during the measurement period, which resulted in an immaterial decrease to the preliminary goodwill recorded. Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our different policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability limits are $50 million per occurrence, aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property 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 a limited warranty to cover various defects in workmanship or materials, including structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the arrangement since it is not priced apart from the home, therefore, it is accounted for in accordance with ASC Topic 450, “Contingencies,” which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of cost of home closings. 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 — Former Principal Equityholders — Immediately prior to our IPO, as part of the Reorganization, the existing holders of limited partnership interests of TMM Holdings exchanged their limited partnership interests for limited partnership interests of New TMM (“New TMM Units”). For each New TMM Unit received in the exchange, the holders of New TMM Units also received a corresponding number of shares of our former Class B Common Stock. Our former Class B Common Stock had voting rights but no economic rights. One share of Class B Common Stock, together with one New TMM Unit, was exchangeable into one share of our Common Stock in accordance with the terms of the Exchange Agreement, dated as of April 9, 2013, among the Company, New TMM and the holders of Class B Common Stock and New TMM Units. Stock Based Compensation — We have stock options, performance based restricted stock units and non-performance-based restricted stock units which we account for in accordance with ASC Topic 718-10, “Compensation — Stock Compensation.” The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. Performance-based restricted stock units are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. Non-performance-based restricted stock units are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period on a straight-line basis. Employee Benefit 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% of employees’ voluntary contributions up to 2% of eligible compensation, and 50% for each dollar contributed between 2% and 6% of eligible compensation. We contributed $10.7 million , $ 9.3 million , and $ 7.8 million to the 401(k) Plan for the twelve months ended December 31, 2019, 2018, and 2017 , respectively. Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, “Equity - Treasury Stock.” Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. When factored into our weighted average calculations for purposes of earnings per share, the number of repurchased shares is based on the trade date. Revenue Recognition Topic 606 In January 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09” or “Topic 606”), which provides new guidance for revenue recognition and elected to use the modified retrospective approach to account for prior periods. The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we recognize revenue when (or as) we satisfy the performance obligation. For our home sales transactions, we have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS On February 6, 2020, we completed the acquisition of William Lyon Homes. Refer to Note 21- Subsequent Events for additional discussion. On October 2, 2018, we completed the AV Homes Acquisition. Total purchase consideration of the AV Homes Acquisition was $534.9 million , consisting of three components: (i) cash equal to $280.4 million , (ii) the assumption of convertible notes with a face value of $80.0 million which were converted for $95.8 million in cash, and (iii) the issuance of approximately 8.95 million shares of Common Stock. In accordance with ASC Topic 805, Business Combinations, all material assets acquired and liabilities assumed from the AV Homes Acquisition on October 2, 2018 were measured and recognized at fair value as of the date of the AV Homes Acquisition to reflect the purchase price paid. We determined the estimated fair value of real estate inventory primarily using the sales comparison and income approaches. To a certain extent, certain inventory was valued using third party appraisals and/or market comparisons. The sales comparison approach was used for all inventory in process. The income approach derives a value using a discounted cash flow for income-producing real property. This approach was used exclusively for finished lots. These estimated cash flows and ultimate valuation are significantly affected by the discount rate, estimates related to expected average selling prices and sales incentives, expected sales paces and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, overhead costs and may vary significantly between communities. During the measurement period, we finalized the allocation of the purchase price with immaterial changes to the preliminary amounts previously disclosed. The following is a summary of the final fair value of assets acquired and liabilities assumed. (Dollars in thousands) AV Homes Acquisition Date October 2, 2018 Assets acquired Real estate inventory $ 782,424 Prepaid expenses and other assets (1) 107,004 Deferred tax assets, net 69,456 Property and equipment 50,996 Goodwill (2) 83,230 Total assets $ 1,093,110 Less liabilities assumed Accrued expenses and other liabilities $ 94,308 Customer deposits 14,130 Estimated development liability (3) 37,230 Senior notes, net 412,520 Net assets acquired $ 534,922 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $43.3 million of goodwill to the East homebuilding segment, $30.0 million to the Central homebuilding segment, and $9.9 million to the West homebuilding segment. (3) See Note 9 - Estimated Development Liability. Unaudited Pro Forma Results of Business Combinations The following unaudited pro forma information for the years presented include the results of operations of the AV Homes Acquisition as if it had been completed on January 1, 2017. The pro forma results are presented for informational purposes only and do not purport to be indicative of the results of operations or future results that would have been achieved if the acquisition had taken place one year prior to the acquisition year. The pro forma information combines the historical results of the Company with the historical results of AV Homes for the periods presented. The unaudited pro forma results for the years presented include adjustments to move transaction costs to January 2017. In addition, the unaudited pro forma results do not give effect to any synergies, operating efficiencies, other costs savings that may result from the AV Homes Acquisition, or other significant non-reoccurring expenses or transactions that do not have a continuing impact. Earnings per share utilizes net income and total weighted average shares of Common Stock. The pro forma amounts are based on available information and certain assumptions that we believe are reasonable. As Adjusted for the Year Ended December 31, (Dollars in thousands except per share data) 2018 2017 Pro forma total revenues $ 4,780,138 $ 4,728,543 Pro forma net income $ 231,270 $ 134,694 Pro forma net income attributable to non-controlling interests — joint ventures (533 ) (430 ) Pro forma net income attributable to non-controlling interest - Former Principal Equityholders (3,713 ) (60,642 ) Pro forma net income available to TMHC - Basic $ 227,024 $ 73,622 Pro forma net income attributable to non-controlling interest - Former Principal Equityholders 3,713 60,642 Pro forma loss fully attributable to public holding company 540 6,681 Pro forma net income - Diluted $ 231,277 $ 140,945 Pro forma weighted average shares - Basic 118,593 70,285 Pro forma weighted average shares - Diluted 121,969 129,139 Pro forma earnings per share - Basic $ 1.91 $ 1.05 Pro forma earnings per share - Diluted $ 1.90 $ 1.05 For the year ended December 31, 2018, total revenue on the Consolidated Statement of Operations included $234.3 million of revenues and earnings before income taxes included $7.7 million |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding equity awards to issue shares of Common Stock were exercised or settled. The following is a summary of the components of basic and diluted earnings per share: Year Ended December 31, (Dollars in thousands except per share data) 2019 2018 2017 Numerator: Net income available to TMHC — basic (1) $ 254,652 $ 206,364 $ 91,220 Net income attributable to non-controlling interest - Former Principal Equityholders — 3,583 85,000 Loss fully attributable to public holding company — 540 6,681 Net income — diluted $ 254,652 $ 210,487 $ 182,901 Denominator: Weighted average shares — basic 106,997 111,743 62,061 Weighted average shares — non-controlling interest (2) — 1,935 57,556 Restricted stock units 983 1,117 950 Stock options 309 324 348 Weighted average shares — diluted 108,289 115,119 120,915 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 2.38 $ 1.85 $ 1.47 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 2.35 $ 1.83 $ 1.47 (1) 2019 and 2018 amounts include impacts of significant and unusual transactions. For the year ended December 31, 2019 we recorded $10.7 million of transaction and corporate reorganization expenses relating to costs associated with our acquisitions, $5.8 million of loss on extinguishment of debt, net and an aggregate of $72.1 million of costs related to our Chicago operations write off, warranty, impairment, and other legal costs associated with such unusual transactions. For the year ended December 31, 2018 we recorded $50.9 million of transaction and corporate reorganization expenses which consisted of $30.8 million acquisition related costs and $20.1 million of costs relating to our Canada Unwind. In addition we recorded an aggregate of $50.1 million of costs related to impacts of warranty, impairment, and other legal costs associated with such unusual transactions for the year ended December 31, 2018. 2017 amounts include impacts of the Tax Act, which was an aggregate $61.0 million expense. (2) S hares of the former Class B Common Stock had voting rights but did not have economic rights or rights to dividends or distribution on liquidation and therefore were not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share. In connection with our corporate reorganization (refer to Note 1 - Business ), on October 26, 2018, all remaining outstanding shares of Class B Common Stock, together with their corresponding New TMM Units, were exchanged for Common Stock. All outstanding shares of Class B Common Stock were retired following the exchange. We excluded a total weighted average of 2,394,703 , 2,232,647 , and 1,655,017 anti-dilutive stock options and unvested restricted stock units (“RSUs”) from the calculations of diluted earnings per share for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Real Estate Inventory and Land
Real Estate Inventory and Land Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate Inventory and Land Deposits | REAL ESTATE INVENTORY AND LAND DEPOSITS Inventory consists of the following: As of December 31, (Dollars in thousands) 2019 2018 Real estate developed or under development $ 2,805,506 $ 2,833,875 Real estate held for development or held for sale (1) 146,471 61,415 Operating communities (2) 899,789 973,985 Capitalized interest 115,593 96,031 Total owned inventory 3,967,359 3,965,306 Real estate not owned under option contracts 19,185 15,259 Total real estate inventory $ 3,986,544 $ 3,980,565 (1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets. As of December 31, 2019, all inventory relating to our Chicago operations are deemed held for sale and are included in owned inventory on the Consolidated Balance Sheet. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active production of inventory. The development status of our land inventory is as follows: As of December 31, (Dollars in thousands) 2019 2018 Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw 13,804 $ 477,997 9,653 $ 461,387 Partially developed 13,298 914,689 12,036 756,376 Finished 15,504 1,559,291 21,975 1,677,527 Total 42,606 $ 2,951,977 43,664 $ 2,895,290 Land Deposits — As of December 31, 2019 and 2018 , we had the right to purchase approximately 4,263 and 4,781 lots under land option purchase contracts, respectively, which represents an aggregate purchase price of $ 289.7 million and $ 393.8 million as of December 31, 2019 and 2018 , respectively. We do not have title to these properties, and the creditors generally have no recourse against the Company. As of December 31, 2019 and 2018 , our exposure to loss related to our option contracts with third parties and unconsolidated entities consisted of non-refundable option deposits totaling $ 39.8 million and $ 57.9 million , respectively. Capitalized Interest — Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest capitalized — beginning of period $ 96,031 $ 90,496 $ 102,642 Interest incurred 113,301 87,957 82,713 Interest amortized to cost of home closings (93,739 ) (82,422 ) (94,859 ) Interest capitalized — end of period $ 115,593 $ 96,031 $ 90,496 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES We participate in a number of joint ventures with related and unrelated third parties, with ownership interests up to 50% . These entities are generally involved in real estate development, homebuilding and/or mortgage lending activities. Summarized, combined financial information of unconsolidated entities that are accounted for by the equity method is as follows: As of December 31, (Dollars in thousands) 2019 2018 Assets: Real estate inventory $ 367,225 $ 508,795 Other assets 132,812 125,436 Total assets $ 500,037 $ 634,231 Liabilities and owners’ equity: Debt $ 178,686 $ 176,564 Other liabilities 20,490 16,061 Total liabilities $ 199,176 $ 192,625 Owners’ equity: TMHC 128,759 140,541 Others 172,102 301,075 Total owners’ equity 300,861 441,616 Total liabilities and owners’ equity $ 500,037 $ 634,241 Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Revenues $ 277,263 $ 381,274 $ 330,099 Costs and expenses (242,044 ) (328,565 ) (296,838 ) Income of unconsolidated entities $ 35,219 $ 52,709 $ 33,261 TMHC's share in income of unconsolidated entities $ 9,509 $ 13,332 $ 8,846 Distributions from unconsolidated entities $ 34,057 $ 68,847 $ 11,048 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS At December 31, 2019 , the gross carrying amount and accumulated amortization of intangible assets was $ 14.0 million and $ 13.4 million , respectively. At December 31, 2018 , the gross carrying amount and accumulated amortization was $ 14.0 million and $ 12.9 million , respectively. Amortization of intangible assets is recorded on a straight-line basis over the life of the asset. Amortization expense is recorded in General and administrative expenses on the Consolidated Statement of Operations. During the years ended December 31, 2019, 2018, and 2017 amortization expense was $ 0.5 million , $1.0 million , and $1.1 million |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: As of December 31, (Dollars in thousands) 2019 2018 Real estate development costs to complete $ 20,598 $ 16,591 Compensation and employee benefits 95,585 73,955 Self-insurance and warranty reserves 120,048 93,790 Interest payable 23,178 21,385 Property and sales taxes payable 12,537 14,861 Other accruals 53,422 46,104 Total accrued expenses and other liabilities $ 325,368 $ 266,686 Self Insurance and Warranty Reserves — We accrue for the expected costs associated with our limited warranty, deductibles and self-insured amounts under our various insurance policies within Beneva Indemnity Company ("Beneva"), a wholly owned subsidiary. A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Reserve — beginning of period $ 93,790 $ 51,010 $ 50,550 Additions to reserves 44,093 51,674 27,561 Costs and claims incurred (67,554 ) (42,433 ) (25,698 ) Change in estimates to pre-existing reserves (1) 49,719 33,539 (1,403 ) Reserve — end of period $ 120,048 $ 93,790 $ 51,010 (1) Changes in estimates to pre-existing reserves for the years ended December 31, 2019 and 2018 include a $43.1 million and $39.3 million , respectively, charge for construction defect remediation isolated to one specific community in the Central region. These reserves at December 31, 2019 and 2018 are $36.3 million and $27.6 million , respectively. The reserve estimate is based on assumptions, including but not limited to, the number of homes affected, the costs associated with each repair, and the effectiveness of the repairs. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those recorded and such differences could be material, resulting in a change in future estimated reserves. |
Estimated Development Liabiliti
Estimated Development Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract] | |
Estimated Development Liabilities | ESTIMATED DEVELOPMENT LIABILITIES The estimated development liabilities consist primarily of estimated future utilities improvements in Poinciana, Florida and Rio Rico, Arizona for more than 8,000 home sites previously sold, in most cases prior to 1980. The estimated development liability is reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management’s estimate of potential |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consists of the following: As of December 31, 2019 2018 (Dollars in thousands) Principal Unamortized Debt Issuance Costs Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.25% Senior Notes due 2021 — — — 550,000 (2,695 ) 547,305 6.625% Senior Notes due 2022 — — — 400,000 11,656 411,656 5.875% Senior Notes due 2023 350,000 (1,867 ) 348,133 350,000 (2,434 ) 347,566 5.625% Senior Notes due 2024 350,000 (2,244 ) 347,756 350,000 (2,781 ) 347,219 5.875% Senior Notes due 2027 500,000 (5,808 ) 494,192 — — — 5.75% Senior Notes due 2028 $ 450,000 (5,073 ) 444,927 — — — Senior Notes subtotal 1,650,000 (14,992 ) 1,635,008 1,650,000 3,746 1,653,746 Loans payable and other borrowings 182,531 — 182,531 225,497 — 225,497 Revolving Credit Facility — — — — — — 364-Day Credit Agreement — — — 200,000 — 200,000 Mortgage warehouse borrowings 123,233 — 123,233 130,353 — 130,353 Total debt $ 1,955,764 $ (14,992 ) $ 1,940,772 $ 2,205,850 $ 3,746 $ 2,209,596 2021 Senior Notes Our 5.25% Senior Notes due 2021 (the “2021 Senior Notes”) were redeemed in full on June 20, 2019 using the net proceeds from the issuance of the 2027 Senior Notes (as defined below), together with cash on hand. As a result of the redemption of the 2021 Senior Notes, we recorded a loss on extinguishment of debt, net of $ 2.2 million , which included the write-off of net unamortized deferred financing fees. See “2027 Senior Notes and Redemption of 2021 Senior Notes” below for additional information regarding the redemption of the 2021 Senior Notes. 2022 Senior Notes Our 6.625% Senior Notes due 2022 (the “2022 Senior Notes”) were redeemed in full on August 19, 2019 using the net proceeds from the issuance of the 2028 Senior Notes (as defined below). As a result of the redemption of the 2022 Senior Notes, we recorded a loss on extinguishment of debt, net of $ 3.6 million , inclusive of a prepayment premium of approximately $ 13.2 million , offset by the write-off of approximately $ 9.6 million in unamortized debt premium. See “2028 Senior Notes and Redemption of 2022 Senior Notes” below for additional information regarding the redemption of the 2022 Senior Notes. 2023 Senior Notes On April 16, 2015, we issued $350.0 million aggregate principal amount of 5.875% Senior Notes due 2023 (the “2023 Senior Notes”). The 2023 Senior Notes mature on April 15, 2023. The 2023 Senior Notes are issued by Taylor Morrison Communities, Inc. and guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the "Guarantors"). The 2023 Senior Notes and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indenture governing the 2023 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 2023 Senior Notes contains customary events of default that are similar to those contained in the indentures governing our other Senior Notes. We are required to offer to repurchase the 2023 Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events where there is a credit downgrade that occurs in connection with the change of control. Prior to January 15, 2023, the 2023 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through January 15, 2023 (plus accrued and unpaid interest). Beginning January 15, 2023, the 2023 Senior Notes are redeemable at par (plus accrued and unpaid interest). There are no financial maintenance covenants for the 2023 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 mature on March 1, 2024. The 2024 Senior Notes are issued by Taylor Morrison Communities, Inc. and guaranteed by the same Guarantors that guarantee our other outstanding Senior Notes. The 2024 Senior Notes and the related guarantees are senior unsecured obligations and are not subject to registration rights. 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 similar to the other Senior Notes. The indenture governing the 2024 Senior Notes contains customary events of default that are similar to those contained in the indentures governing our other Senior Notes. The change of control provisions in the indenture governing the 2024 Senior Notes are similar to those contained in the indentures governing our other 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). There are no financial maintenance covenants for the 2024 Senior Notes. 2027 Senior Notes and Redemption of 2021 Senior Notes On June 5, 2019, we issued $500.0 million aggregate principal amount of 5.875% Senior Notes due 2027 (the "2027 Senior Notes"). The net proceeds of the offering, together with cash on hand, were used to redeem the entire remaining $550.0 million aggregate principal amount of the 2021 Senior Notes on June 20, 2019, at a redemption price of 100% of their aggregate principal amount, plus accrued and unpaid interest thereon through, but not including, the date of redemption. The 2027 Senior Notes mature on June 15, 2027. The 2027 Senior Notes are issued by Taylor Morrison Communities, Inc. and guaranteed by the same Guarantors that guarantee our other Senior Notes. The 2027 Senior Notes and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indenture governing the 2027 Senior Notes contains covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions similar to our other Senior Notes. The indenture governing the 2027 Senior Notes contains customary events of default that are similar to those contained in the indentures governing our other Senior Notes. The change of control provisions in the indenture governing the 2027 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to March 15, 2027, the 2027 Senior Notes are redeemable at a price equal to 100% plus a "make-whole" premium for payments through March 15, 2027 (plus accrued and unpaid interest). Beginning on March 15, 2027, the 2027 Senior Notes are redeemable at par (plus accrued and unpaid interest). There are no financial maintenance covenants for the 2027 Senior Notes. 2028 Senior Notes and Redemption of 2022 Senior Notes On August 1, 2019, we issued $450.0 million aggregate principal amount of 5.75% Senior Notes due 2028 (the "2028 Senior Notes"). The net proceeds of the offering were used to redeem the entire remaining $400.0 million aggregate principal amount of the 2022 Senior Notes on August 19, 2019, at the redemption price of 103.313% of their aggregate principal amount, plus accrued and unpaid interest thereon through, but not including, the date of redemption. The 2028 Senior Notes mature on January 15, 2028. The 2028 Senior Notes are issued by Taylor Morrison Communities, Inc. and guaranteed by the same Guarantors that guarantee our other Senior Notes. The 2028 Senior Notes and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indenture governing the 2028 Senior Notes contains covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions similar to our other Senior Notes. The indenture governing the 2028 Senior Notes contains customary events of default that are similar to those contained in the indentures governing our other Senior Notes. The change of control provisions in the indenture governing the 2028 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to October 15, 2027, the 2028 Senior Notes are redeemable at a price equal to 100% plus a "make-whole" premium for payments through October 15, 2027 (plus accrued and unpaid interest). Beginning on October 15, 2027, the 2028 Senior Notes are redeemable at par (plus accrued and unpaid interest). There are no financial maintenance covenants for the 2028 Senior Notes. Revolving Credit Facility On February 6, 2020 we terminated our $600.0 million Revolving Credit Facility, writing off $1.7 million of debt issuance costs and entered into an $800.0 million Revolving Credit Facility with a maturity date of February 6, 2024. Refer to Note 21- Subsequent Events for additional discussion. Our prior $600.0 million Revolving Credit Facility included $1.8 million and $2.7 million of unamortized debt issuance costs as of December 31, 2019 and December 31, 2018 , respectively, which are included in prepaid expenses and other assets, net on the consolidated balance sheets. As of December 31, 2019 and December 31, 2018 , we had $77.7 million and $62.3 million , respectively, of utilized letters of credit, resulting in $522.3 million and $537.7 million , respectively, of availability under the Revolving Credit Facility. The prior Revolving Credit Facility contained, and our new Revolving Credit Facility contains, certain “springing” financial covenants, requiring us and our subsidiaries to comply with a maximum debt to capitalization ratio of not more than 0.60 to 1.00 and a minimum consolidated tangible net worth level of at least $1.9 billion . The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the 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 Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than five consecutive days during such fiscal quarter. The prior Revolving Credit Facility contained, and our new 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 prior Revolving Credit Facility contained, and our new 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, 2019 and 2018 , we were in compliance with all of the covenants under the prior Revolving Credit Facility. 364-Day Credit Agreement On October 2, 2018, we entered into a 364-Day Credit Agreement in respect of a term loan facility under which we borrowed an aggregate principal amount of $200.0 million , to facilitate the AV Homes Acquisition. The 364-Day Credit Agreement matured on October 1, 2019. Utilizing funds borrowed from our prior Revolving Credit Facility and cash on hand, we repaid a total amount, including interest, of $200.5 million . Mortgage Warehouse Borrowings The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2019 Facility Amount Drawn Facility Amount Interest Rate Expiration Date Collateral (1) Warehouse A $ 25,074 $ 45,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B $ 38,481 $ 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C $ 59,678 $ 100,000 LIBOR + 1.70% On Demand Mortgage Loans and Restricted Cash Total $ 123,233 $ 230,000 December 31, 2018 Facility Amount Drawn Facility Amount Interest Rate Expiration Date Collateral (1) Warehouse A $ 29,484 $ 45,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 38,164 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 62,705 100,000 LIBOR + 1.95% On Demand Mortgage Loans and Restricted Cash Total $ 130,353 $ 230,000 (1) The mortgage warehouse borrowings outstanding as of December 31, 2019 and 2018 , are collateralized by $190.9 million and $181.9 million , respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $1.6 million , of cash for both periods, which is restricted cash on our balance sheet. Loans Payable and Other Borrowings Loans payable and other borrowings as of December 31, 2019 and 2018 consist of project-level debt due to various land sellers and seller financing notes from current and prior year acquisitions. Project-level debt is generally secured by the land that was acquired and the principal payments generally coincide with corresponding project lot sales or a principal reduction schedule. Loans payable bear interest at rates that ranged from 0% to 8% at December 31, 2019 and 2018 . Future Minimum Principal Payments on Total Debt Principal maturities of total debt for the year ended December 31, 2019 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2020 $ 182,870 2021 55,275 2022 11,763 2023 374,477 2024 381,379 Thereafter 950,000 Total debt $ 1,955,764 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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 mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets includes interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, the borrowings under our prior Revolving Credit Facility and our 364-Day Credit Agreement approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2019 , when compared to December 31, 2018 . The carrying value and fair value of our financial instruments are as follows: As of December 31, 2019 As of December 31, 2018 (Dollars in thousands) Level in Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Description: Mortgage loans held for sale 2 $ 190,880 $ 190,880 $ 181,897 $ 181,897 Derivative assets, net 2 1,932 1,932 1,099 1,099 Mortgage borrowings 2 123,233 123,233 130,353 130,353 Loans payable and other borrowings 2 182,531 182,531 225,497 225,497 5.25% Senior Notes due 2021 (1) 2 — — 547,304 544,500 6.625% Senior Notes due 2022 (1) 2 — — 411,656 400,520 5.875% Senior Notes due 2023 (1) 2 348,133 378,669 347,566 337,750 5.625% Senior Notes due 2024 (1) 2 347,756 379,453 347,219 332,500 5.875% Senior Notes due 2027 (1) 2 494,192 548,870 — — 5.75% Senior Notes due 2028 (1) 2 444,927 491,913 — — Revolving Credit Facility (2) 2 — — — — 364-Day Credit Agreement (3) 2 — — 200,000 200,000 (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes. (2) At December 31, 2019 and 2018 , we had no borrowings outstanding on our prior Revolving Credit Facility. (3) 364-Day Credit Agreement was entered into on October 2, 2018 to facilitate the Acquisition and paid off on the maturity date of October 1, 2019. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) For the Year Ended December 31, Description: Level in 2019 2018 Inventories 3 $ 16,509 $ 5,545 As of December 31, 2019, the fair value of our Chicago assets held for sale and active inventories are $25.1 million , which is excluded from the value in the table presented above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes for the years ended December 31, 2019 , 2018 and 2017 consisted of the following: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Domestic $ 67,358 $ 37,731 $ 173,541 Foreign — 25,305 5,465 Total income tax provision $ 67,358 $ 63,036 $ 179,006 Current: Federal $ 54,372 $ (10,568 ) $ 73,974 State 9,839 4,104 9,379 Foreign — 25,482 7,169 Current tax provision $ 64,211 $ 19,018 $ 90,522 Deferred: Federal $ (1,811 ) $ 40,037 $ 95,243 State 4,958 4,158 (5,055 ) Foreign — (177 ) (1,704 ) Deferred tax provision $ 3,147 $ 44,018 $ 88,484 Total income tax provision $ 67,358 $ 63,036 $ 179,006 The components of income before income taxes are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Domestic $ 322,272 $ 271,017 $ 323,359 Foreign — 2,499 32,297 Income before income taxes $ 322,272 $ 273,516 $ 355,656 A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 Tax at federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal benefit) 3.9 4.4 3.2 Foreign income taxed at a different rate — 0.5 (0.8 ) Domestic manufacturing deduction — — (2.1 ) Uncertain tax positions (0.2 ) (2.9 ) 1.1 State net operating loss adjustment — — (2.1 ) Deferred tax adjustments 0.2 — (1.1 ) Energy tax credits (4.6 ) (1.7 ) (0.9 ) Subpart F dividend — 1.7 — Corporate reorganization/Canada unwind — 9.3 — Foreign tax credit — (2.4 ) — Disallowed compensation expense 0.3 (0.1 ) 0.2 Tax reform — (6.9 ) 17.1 Other 0.3 0.1 0.7 Effective Rate 20.9 % 23.0 % 50.3 % The effective tax rate for the year ended December 31, 2019 was favorably impacted by legislation enacted during the fourth quarter which reinstated an income tax credit under Section 45L of the Internal Revenue Code for building energy efficient homes. The credit, which had expired for homes built through the end 2017, allows for energy credits retroactively to home closings from 2018 and forward through 2020. Our effective tax rate for the year ended December 31, 2019 includes our provisional estimate of the energy credits we expect to obtain related to homes closed during 2018 and 2019. The effective tax rate for the year ended December 31, 2018 included the tax impact from our holding company reorganization which we implemented on October 26, 2018 in order to simplify our capital and tax structure and increase our operational flexibility. As part of the reorganization, we paid a liquidating distribution from our Canadian subsidiary, which caused the imposition of Canadian withholding taxes. The tax impact of the reorganization shown in the rate reconciliation above was partially offset by the utilization of foreign tax credits in the United States. In addition, the reorganization triggered a capital loss carryforward which is not expected to be realized. The impact of the Canadian withholding tax, capital loss carryforward and offsetting valuation allowance are reported on the Corporate reorganization/Canada unwind line in the rate reconciliation above. The effective tax rate for the years ended December 31, 2018 and 2017 includes the impact from the Tax Act which made comprehensive reforms to the United States tax code including a decrease to the corporate statutory tax rate from 35% to 21%, and a one-time mandatory deemed repatriation tax of foreign earnings at a reduced rate that may be payable over eight years. The impact of the Tax Act is reported on the Tax Reform line in the rate reconciliation above and includes the impacts from the write-down of our deferred tax assets to reflect the newly enacted U.S. federal tax rate and the deemed repatriation of foreign earnings related to the sale of our Canadian business in 2015. The impact to the effective tax rate for these items consisted of our provisional estimates of the impact for the year ending December 31, 2017 and our final accounting for the effects of the Tax Act for the years ending December 31, 2018. We have certain tax attributes available to offset the impact of future income taxes. The components of net deferred tax assets and liabilities at December 31, 2019 and 2018 , consisted of timing differences related to real estate inventory impairments, expense accruals and reserves, provisions for liabilities, and net operating loss carryforwards. A summary of these components for the years ending December 31, 2019 and 2018 is as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Real estate inventory $ 22,232 $ 24,804 Accruals and reserves 39,029 28,556 Other 15,827 20,612 Net operating losses (1) 69,815 (1) 77,558 Capital loss carryforward 35,340 35,340 Total deferred tax assets $ 182,243 $ 186,870 Deferred tax liabilities: Real estate inventory, intangibles, other (6,437 ) (6,454 ) Foreign exchange — — Valuation allowance (35,340 ) (35,340 ) Total net deferred tax assets $ 140,466 $ 145,076 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from two acquisitions: 1) the 2011 acquisition of the Company by our former Principal Equityholders and 2) the 2018 acquisition of AV Homes. Both acquisitions were deemed to be a change in control as defined by Section 382. On December 31, 2019 and 2018 , we had a valuation allowance of $35.3 million against net deferred tax assets. The valuation allowance is the result of the 2018 corporate reorganization which triggered a capital loss carryforward which is not expected to be realized. We have approximately $232.6 million in available gross federal NOL carryforwards. Federal NOL carryforwards generated prior to January 1, 2018 may be used to offset future taxable income for a period of 20 years and begin to expire in 2027 . State NOL carryforwards may be used to offset future taxable income for a period of 20 years, and begin to expire in 2026 . On an ongoing basis, we will continue to review all available evidence to determine if we expect to realize our deferred tax assets and federal and state NOL carryovers or if a valuation allowance is necessary. We account for uncertain tax positions in accordance with ASC 740. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not based on the technical merits of the position that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the morelikely-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. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ending December 31, (Dollars in thousands) 2019 2018 2017 Beginning of the period $ 7,391 $ 12,936 $ 7,773 Increases of current year items — — — Increases from current year acquisitions — 4,216 — Increases of prior year items 15 475 5,163 Settlement with tax authorities (977 ) (9,818 ) — Decreased for tax positions of prior years (76 ) — — Decreased due to statute of limitations (195 ) (418 ) — End of the period $ 6,158 $ 7,391 $ 12,936 The decrease in unrecognized tax benefits for the year ending December 31, 2019 was primarily the result of the completion of a state audit related to tax returns filed in prior years. If the unrecognized tax benefits as of December 31, 2019 were to be recognized, approximately $4.9 million would impact the effective tax rate. The amount impacting the Company’s effective rate is calculated by adding accrued interest and penalties to the gross unrecognized tax benefit and subtracting the tax benefit associated with state taxes and interest. These amounts are included in income taxes payable and as a reduction to deferred tax assets in the accompanying Consolidated Balance Sheets at December 31, 2019 and December 31, 2018 . We recognized potential penalties and interest expense on our uncertain tax positions of $0.6 million , $0.7 million , and $1.0 million for the years ended December 31, 2019 , 2018 , and 2017 respectively, which are included in income tax provision in the accompanying Consolidated Statements of Operations and income taxes payable in the accompanying Consolidated Balance Sheets. We currently are under no active examinations by our major taxing authorities. The statute of limitations for our major taxing jurisdictions remains open for examination for tax years 2015 through 2019 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Capital Stock On October 26, 2018, as a result of a holding company reorganization and related transactions each share of the Company's former Class B Common Stock, and paired partnership units of TMM Holdings II Limited Partnership were exchanged on a one-for-one basis for shares of Class A Common Stock. Following this exchange, all of the shares of Class B Common Stock were canceled, and the Company had only one class of common stock outstanding. On May 29, 2019, the Company's stockholders approved the amendment and restatement of the Company's certificate of incorporation to (i) delete provisions no longer applicable following the cancellation of all outstanding shares of the former Class B Common Stock; and (ii) to rename the Company's Class A Common Stock as "Common Stock, par value $0.00001 per share." Following this amendment and restatement, under the Company's certificate of incorporation, its authorized capital stock consists of 400,000,000 shares of Common Stock, par value $0.00001 per share, and 50,000,000 shares of preferred stock, par value $0.00001 per share. References to "Common Stock" refer to "Class A Common Stock" for dates prior to June 10, 2019. Stock Repurchase Program On March 11, 2019, we announced that our Board of Directors authorized the repurchase of up to $100 million of Common Stock through December 31, 2019 in the open market purchases, privately negotiated transactions or other transactions. During the years ended December 31, 2019 and 2018 , we repurchased 8,389,348 and 8,504,827 shares of Common Stock, respectively, under the Company's stock repurchase program. As of December 31, 2019, we have fully utilized the authorization and currently do not have additional authorization for stock repurchases. The following table summarizes share repurchase activity for the program for the year ended December 31, 2019 : Year Ended December 31, (Dollars in thousands) 2019 2018 Amount available for repurchase — beginning of period $ 57,437 $ 95,902 Additional amount authorized for repurchase 100,000 100,000 Amount repurchased (157,437 ) (138,465 ) Amount available for repurchase — end of period $ — $ 57,437 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | 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 was most recently amended and restated in May 2017. The Plan provides for the grant of stock options, restricted stock units ("RSUs"), and other equity-based awards deliverable in shares of our Common Stock. As of December 31, 2019 we had an aggregate of 6,971,796 shares of Common Stock available for future grants under the Plan. The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the accompanying Consolidated Statements of Operations (in thousands): (Dollars in thousands) Year Ended December 31, 2019 2018 2017 Restricted stock units (RSUs) (1) (2) $ 10,989 $ 17,130 $ 6,487 Stock options 3,774 3,994 4,504 New TMM Units (3) — — 596 Total stock compensation $ 14,763 $ 21,124 $ 11,587 (1) Includes compensation expense related to time-based restricted stock units and performance-based restricted stock units. (2) Stock-based compensation expense in 2018 includes approximately $6.5 million of expense recognized for the acceleration of equity awards as part of the acquisition of AV Homes. (3) As of December 31, 2017, all new TMM units were vested, and there was no further expense associated with them. At December 31, 2019, 2018, and 2017 , the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $20.8 million , $ 20.4 million , and $ 19.8 million , respectively. 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 options expire within ten years from the date of grant. The following table summarizes stock option activity for the Plan for each year presented: Year Ended December 31, 2019 2018 2017 Number of Options Weighted Average Exercise/Grant Price Number of Options Weighted Average Exercise/Grant Price Number of Options Weighted Average Exercise/Grant Price Outstanding, beginning 3,239,995 $ 18.87 2,854,213 $ 17.50 2,431,347 $ 17.09 Granted 997,924 18.15 726,473 23.86 792,054 19.06 Exercised (765,781 ) 17.29 (118,992 ) 15.85 (288,808 ) 18.13 Cancelled/forfeited (132,894 ) 19.86 (221,699 ) 18.71 (80,380 ) 18.64 Balance, ending 3,339,244 $ 18.98 3,239,995 $ 18.87 2,854,213 $ 17.50 Options exercisable, at December 31 1,400,974 $ 19.09 1,537,977 $ 18.80 906,583 $ 19.62 As of December 31, (Dollars in thousands) 2019 2018 2017 Unamortized value of unvested stock options (net of estimated forfeitures) $ 6,759 $ 6,470 $ 6,749 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.4 Weighted-average remaining contractual life (in years) for options outstanding 6.9 6.9 7.5 Weighted-average remaining contractual life (in years) for options exercisable 5.1 5.6 6.1 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 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, 2019 2018 2017 Expected dividend yield —% —% —% Expected volatility 19.33% 21.31% 24.37% Risk-free interest rate 2.49% 2.68% 2.12% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $4.69 $6.68 $5.56 The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2019, 2018, and 2017 : As of December 31, (Dollars in thousands) 2019 2018 2017 Aggregate intrinsic value of options outstanding $ 10,935 $ 3,432 $ 19,891 Aggregate intrinsic value of options exercisable $ 4,283 $ 1,540 $ 4,400 The aggregate intrinsic value is based on the market price of our Common Stock on December 31, 2019, the last trading day in December 2019, which was $21.86 , 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, 2019 . Performance-Based Restricted Stock Units – We issued performance-based restricted stock units ("PRSUs") to certain employees of the Company. These awards will vest in full based on the achievement of certain performance goals over a three -year performance period, subject to the employee’s continued employment through the last date of the performance period and will be settled in shares of our Common Stock. The number of shares that may be issued in settlement of the PRSUs to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The following table summarizes the activity of our PRSUs: Year Ended December 31, 2019 2018 2017 Balance, beginning 1,155,723 1,190,740 824,217 Granted 416,874 338,472 392,404 Vested (511,984 ) (61,343 ) — Forfeited (61,974 ) (312,146 ) (25,881 ) Balance, ending 998,639 1,155,723 1,190,740 Year Ended December 31, (Dollars in thousands): 2019 2018 2017 PRSU expense recognized $ 5,866 $ 5,779 $ 3,257 Unamortized value of PRSUs $ 7,912 $ 7,501 $ 6,756 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 Non-Performance-Based Restricted Stock Units — Our non-performance-based RSUs consist of shares of our Common Stock that have been awarded to our employees and members of our Board of Directors. Vesting of RSUs is subject to continued employment with TMHC or an affiliate, or continued service on the Board of Directors, through the applicable vesting dates. Time-based RSUs granted to employees generally vest ratably over a three to four year period, based on the grant date. Time-based RSUs granted to members of the Board of Directors generally vest on the first anniversary of the grant date. The following tables summarize the activity of our RSUs: Year Ended December 31, 2019 2018 2017 (Dollars in thousands except per share data): Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Outstanding, beginning 769,641 $ 16.73 698,819 $ 15.65 534,484 $ 14.01 Granted 299,481 18.42 333,397 20.35 257,182 19.48 Vested (320,701 ) 15.25 (181,904 ) 13.01 (75,315 ) 17.43 Forfeited (38,667 ) 16.91 (80,671 ) 16.90 (17,532 ) 14.10 Balance, ending 709,754 $ 18.11 769,641 $ 16.73 698,819 $ 15.65 Year Ended December 31, (Dollars in thousands): 2019 2018 2017 RSU expense recognized $ 5,123 $ 4,854 $ 3,148 Unamortized value of RSUs $ 6,176 $ 6,435 $ 6,261 Weighted-average period expense is expected to be recognized (in years) 1.7 1.9 2.5 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. 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. Those units were subject to both time and performance vesting conditions. Pursuant to the Reorganization Transactions, 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. One New TMM Unit together with a corresponding share of Class B Common Stock was exchangeable for one share of Common Stock. The shares of Class B Common Stock/New TMM Units outstanding as of December 31, 2018 and 2017 are shown in the table below. All shares of Class B Common Stock were exchanged for Common Stock as of December 31, 2018. Year Ended December 31, 2018 2017 Number of Awards Weighted Average Grant Date Fair Value Number of Awards Weighted Average Grant Date Fair Value Outstanding, beginning 883,921 $ 5.24 1,146,357 $ 5.58 Exchanges (1) (883,921 ) 5.24 (260,389 ) 6.72 Forfeited (2) — — (2,047 ) 8.52 Balance, ending — $ — 883,921 $ 5.24 Unvested TMM Units included in ending balance (3) — $ — — $ — (1) 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 Common Stock. (2) 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 canceled. (3) All New TMM units vested as of December 31, 2017. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 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 Former Principal Equityholders. For the year ended December 31, 2019 , we engaged in a stock repurchase of 2.1 million shares of Class A Common Stock, totaling $43.7 million , from one of our former principal equityholders, TPG Advisors VI, Inc. For the years ended December 31, 2018 and 2017, we engaged in multiple equity offering transactions with our Former Principal Equityholders. We used all of the net proceeds from these public offerings to purchase partnership units in New TMM, our direct subsidiary, along with shares of our Class B Common Stock, held by TPG and Oaktree. As a result, we adjusted Non-controlling interests and Additional paid-in capital on the consolidated balance sheets to reflect the change in ownership. The aggregate number of partnership units and corresponding shares of Class B Common Stock that we purchased was equal to the number of shares of Common Stock sold in the public offerings. The following is a summary of the completed sales of our Common Stock in registered public offerings for the years ended December 31, 2018 and 2017: (Shares presented in thousands) Closing date Number of shares Net purchase price per share February 6, 2017 11,500 $ 18.2875 March 27, 2017 10,000 20.7800 May 5, 2017 10,000 23.1200 June 27, 2017 10,000 23.3000 November 13, 2017 10,000 22.9500 January 8, 2018 11,000 26.0500 January 17, 2018 (1) 19,207 27.1400 (1) The January 17, 2018 offering consisted of 17.7 million shares of Common Stock offered by the Company and 1.5 million shares offered directly by TPG. For the year ended December 31, 2017 , we entered into a contract to purchase 140 home lots in Tustin, California for a total purchase price of $30.0 million from Intracorp Companies, which is owned and controlled by a member of the Board of Directors. We also completed the purchase of 112 acres of land in South Carolina for $10.5 million . The land was purchased from IOTA Doby Bridge, LLC which is managed and partly owned by Gibralter Capital and Asset Management, LLC, a fund managed by one of our Former Principal Equityholders. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The table below provides the components of accumulated other comprehensive income (loss): Year Ended December 31, 2019 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,001 $ — $ — $ 2,001 Other comprehensive loss before reclassifications (1,117 ) — — (1,117 ) Other comprehensive loss net of tax $ (1,117 ) $ — $ — $ (1,117 ) Balance, end of period $ 884 $ — $ — $ 884 Year Ended December 31, 2018 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,082 $ (45,205 ) $ 25,155 $ (17,968 ) Other comprehensive loss before reclassifications (81 ) — — (81 ) Foreign currency translation (1) 20,050 20,050 Other comprehensive loss net of tax $ (81 ) $ 20,050 $ — $ 19,969 Gross amounts reclassified within accumulated other comprehensive income — 25,155 (25,155 ) — Balance, end of period $ 2,001 $ — $ — $ 2,001 (1) In connection with the holding company reorganization on October 26, 2018 and through a series of transactions, all remaining assets in our Canadian subsidiary were contributed to a subsidiary in the United States, resulting in a foreign currency translation adjustment. Year Ended December 31, 2017 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,061 $ (79,927 ) $ 59,877 $ (17,989 ) Other comprehensive income before reclassifications 21 — — 21 Other comprehensive income net of tax $ 21 $ — $ — $ 21 Gross amounts reclassified within accumulated other comprehensive income — 34,722 (34,722 ) — Balance, end of period $ 2,082 $ (45,205 ) $ 25,155 $ (17,968 ) 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 Segment
Operating and Reporting Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | OPERATING AND REPORTING SEGMENTS We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. We also have a Financial Services reporting segment. We have no inter-segment sales. Our reporting segments are as follows: East Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa Central Austin, Dallas, Denver and Houston West Bay Area, Phoenix, Sacramento, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows: Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,950,742 $ 1,334,389 $ 1,384,113 $ 92,815 $ — $ 4,762,059 Gross margin $ 307,893 $ 187,957 $ 286,511 $ 41,729 $ — $ 824,090 Selling, general and administrative expense (168,928 ) (121,962 ) (94,609 ) — (104,772 ) (490,271 ) Equity in income of unconsolidated entities — (215 ) 3,562 6,021 141 9,509 Interest and other expense, net (1) (5,545 ) (1,024 ) (3,273 ) — (11,214 ) (21,056 ) Income before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845 ) $ 322,272 (1) Interest and other expense, net includes loss on extinguishment of debt. Year Ended December 31, 2018 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,666,423 $ 1,139,622 $ 1,353,590 $ 67,758 $ — $ 4,227,393 Gross margin $ 281,306 $ 161,323 $ 269,276 $ 26,289 $ (1 ) $ 738,193 Selling, general and administrative expense (138,720 ) (104,295 ) (82,940 ) — (90,988 ) (416,943 ) Equity in income of unconsolidated entities 464 876 6,450 5,316 226 13,332 Interest and other expense, net (5,615 ) (3,259 ) (526 ) — (51,666 ) (61,066 ) Income before income taxes $ 137,435 $ 54,645 $ 192,260 $ 31,605 $ (142,429 ) $ 273,516 Year Ended December 31, 2017 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,383,864 $ 1,112,984 $ 1,319,306 $ 69,136 $ — $ 3,885,290 Gross margin $ 284,722 $ 206,386 $ 220,337 $ 27,484 $ — $ 738,929 Selling, general and administrative expense (122,218 ) (105,945 ) (79,223 ) — (83,054 ) (390,440 ) Equity in income of unconsolidated entities 213 1,246 1,422 5,965 — 8,846 Interest and other (expense)/income, net (314 ) 360 (190 ) — (1,535 ) (1,679 ) Income before income taxes $ 162,403 $ 102,047 $ 142,346 $ 33,449 $ (84,589 ) $ 355,656 As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,841,904 $ 965,039 $ 1,219,411 $ — $ — $ 4,026,354 Investments in unconsolidated entities — 37,506 86,996 4,015 242 128,759 Other assets 165,777 121,724 60,060 257,760 485,252 1,090,573 Total assets $ 2,007,681 $ 1,124,269 $ 1,366,467 $ 261,775 $ 485,494 $ 5,245,686 As of December 31, 2018 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,862,756 $ 1,011,659 $ 1,164,079 $ — $ — $ 4,038,494 Investments in unconsolidated entities — 35,476 100,693 4,015 357 140,541 Other assets 162,339 118,187 55,433 236,291 513,156 1,085,406 Total assets $ 2,025,095 $ 1,165,322 $ 1,320,205 $ 240,306 $ 513,513 $ 5,264,441 As of December 31, 2017 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,150,918 $ 818,431 $ 1,039,655 $ — $ — $ 3,009,004 Investments in unconsolidated entities 29,316 32,874 126,559 3,615 — 192,364 Other assets 85,753 124,593 53,492 225,641 635,046 1,124,525 Total assets $ 1,265,987 $ 975,898 $ 1,219,706 $ 229,256 $ 635,046 $ 4,325,893 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly results are as follows (1) : (Dollars in thousands except per share data) First Second Third Fourth Total revenues $ 925,092 $ 1,265,426 $ 1,105,105 $ 1,466,436 Gross margin 172,040 233,774 211,074 207,202 Income before income taxes 68,072 110,019 90,421 53,760 Net income before allocation to non-controlling interests 51,281 81,888 67,036 54,709 Net income available to Taylor Morrison Home Corporation 51,131 81,851 67,012 54,658 Basic earnings per share $ 0.46 $ 0.77 $ 0.64 $ 0.52 Diluted earnings per share $ 0.46 $ 0.76 $ 0.63 $ 0.51 (Dollars in thousands except per share data) First Second Third Fourth Total revenues $ 752,333 $ 980,828 $ 1,036,379 $ 1,457,853 Gross margin 143,102 178,711 198,999 217,381 Income before income taxes 59,238 79,285 100,865 34,128 Net income before allocation to non-controlling interests 47,532 59,292 94,441 9,215 Net income available to Taylor Morrison Home Corporation 44,933 58,678 93,568 9,055 Basic earnings per share $ 0.42 $ 0.53 $ 0.84 $ 0.08 Diluted earnings per share $ 0.41 $ 0.52 $ 0.83 $ 0.08 (1) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 $623.3 million and $397.2 million as of December 31, 2019 and 2018 , 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, 2019 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, 2019 and 2018 , we had the right to purchase approximately 4,263 and 4,781 lots under land option and land purchase contracts, respectively, which represents an aggregate purchase price of $289.7 million and $393.8 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 and 2018 , we had $39.8 million and $57.9 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, 2019 and 2018 , our legal accruals were $12.7 million and $5.7 million , respectively. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. Predicting the ultimate resolution of the pending matters, the related timing, or the eventual loss associated with these matters is inherently difficult. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the recorded reserves relating to such matter. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. |
Mortgage Hedging Activities
Mortgage Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Mortgage Hedging Activities | MORTGAGE HEDGING ACTIVITIES We enter into IRLCs to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. These IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value with changes in fair value recognized in financial services revenue/expenses on the statement of operations and other comprehensive income. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights (“MSRs”) and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2019 December 31, 2018 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount IRLCs $ 2,099 $ 86,434 $ 1,838 $ 75,090 MBSs (167 ) 158,000 (739 ) 118,000 Total $ 1,932 $ 1,099 Total commitments to originate loans approximated $94.5 million and $83.4 million for the years ended December 31, 2019 and 2018, respectively. This amount represents the commitments to originate loans for both best efforts and mandatory loans that have been locked and approved by underwriting. The notional amounts in the table above includes mandatory and best effort loans, that have been locked and approved by underwriting. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS As of January 31, 2020, we completed the sale of our operations in Chicago to a third party homebuilder for $16.0 million . We recorded impairment and other losses of $13.2 million in December 2019 related to the sale. On February 6, 2020, we terminated our $600.0 million prior Revolving Credit Facility and entered into an $800.0 million Revolving Credit Facility with a maturity date of February 6, 2024. The unamortized debt issuance costs of $1.7 million relating to the $600.0 million Revolving Credit Facility were written off subsequent to December 31, 2019. The $800.0 million Revolving Credit Facility contains certain financial covenants, requiring us and our subsidiaries to comply with a maximum debt to capitalization ratio of not more than 0.60 to 1.00 and a minimum consolidated tangible net worth level of at least $1.0 billion . As of February 19, 2020, we have $210.0 million of borrowings outstanding under the $800.0 million Revolving Credit Facility. On February 6, 2020, we completed the acquisition of William Lyon Homes. Total consideration includes approximately $95.7 million in cash and issued approximately 31.2 million shares of our Common Stock. We acquired all of William Lyon Homes' debt, including senior notes with a principal amount of approximately $1.1 billion . In connection with the acquisition, we satisfied and discharged all $50.0 million of William Lyon Homes, Inc.’s 7.00% senior notes due 2022 using cash on hand and borrowings from our $800.0 million Revolving Credit Facility. In connection with our acquisition of William Lyon Homes, Taylor Morrison Communities, Inc. offered to exchange (the “Exchange Offers”) any and all outstanding notes (the “William Lyon Notes”) of three series issued by California Lyon for up to $1.1 billion aggregate principal amount of new notes to be issued by Taylor Morrison Communities, Inc. The Exchange Offers expired on February 6, 2020 and were settled on February 10, 2020. All validly tendered and not validly withdrawn William Lyon Notes were accepted for exchange. In connection with the settlement of the Exchange Offers, on February 10, 2020, Taylor Morrison Communities, Inc. completed the issuance of $324,004,000 aggregate principal amount of 6.00% Senior Notes due 2023, $428,410,000 aggregate principal amount of 5.875% Senior Notes due 2025 and $290,400,000 aggregate principal amount of 6.625% Senior Notes due 2027. Pursuant to the Exchange Offers, all validly tendered and not validly withdrawn William Lyon Notes were accepted for exchange and such William Lyon Notes were retired, canceled and not reissued. Following such cancellation, $25,996,000 aggregate principal amount of 6.00% Senior Notes due 2023 of California Lyon, $8,476,000 aggregate principal amount of 5.875% Senior Notes due 2025 of California Lyon and $9,600,000 aggregate principal amount of 6.625% Senior Notes due 2027 of California Lyon remain outstanding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation. |
Non-controlling interests | Non-controlling interests — During the first quarter of 2018, we completed multiple offerings of our Common Stock in registered public offerings and used all of the net proceeds from the public offerings to purchase partnership units in New TMM (“New TMM Units”) along with shares of our former Class B Common Stock, held by our Former Principal Equityholders. Refer to Note 13- Stockholders' Equity for discussion regarding our equity offering transactions. In addition on October 26, 2018, in connection with our reorganization transactions, all Class B common shares were converted to Class A common shares and subsequently retired. The percentage of the Former Principal Equityholders net income is presented as “Net income attributable to non-controlling interests - Former Principal Equityholders” on the Consolidated Statements of Operations. |
Joint Ventures | Joint Ventures — We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, “Consolidation.” The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests - joint ventures” on the Consolidated Statements of Operations. |
Business Combinations | Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, “Business Combinations.” In connection with the AV Homes Acquisition . |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage borrowings. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, the concentration of debt between any one customer or region is below 50% as of year ended December 31, 2019 . 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, and entering into forward commitments to sell our mortgage receivables, generally within 30 days of origination. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2019 , the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. |
Restricted Cash | Restricted Cash — For the year ended December 31, 2019 and 2018 , restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. |
Leases | Leases — We adopted Accounting Standards Update (“ASU”) No. 2016-02— Leases (Topic 842), as amended, on January 1, 2019, using the modified retrospective approach. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the hindsight practical expedient to determine the lease term for existing leases. Our leases primarily consist of office space, construction trailers, model leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. |
Real Estate Inventory | In the ordinary course of business, we enter into various specific performance agreements to acquire lots. Real estate not owned under these agreements is consolidated into Real estate not owned with a corresponding liability in Liabilities attributable to real estate not owned in the Consolidated Balance Sheets. Real Estate Inventory — Inventory consists of raw land, land under development, land held for sale, homes under construction, completed homes, and model homes, which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to cost of sales at the time of home closing using the specific identification method. Land acquisition, development, interest, real estate taxes and overhead are allocated to homes and units using 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 are generally allocated to the remaining lots on a prospective basis. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes. Such costs are expensed as incurred. We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. The life cycle of a typical community generally ranges from two to five years , commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots. We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to cost of sales when the related inventory is delivered or when the related inventory is charged to cost of sales. |
Land Deposits | Land Deposits — We make deposits related to land options and land purchase contracts, which, when provided, are capitalized until the associated property is purchased. Non-refundable deposits are recorded as a real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to expense if the land acquisition process is terminated or no longer determined probable. |
Mortgages Loans Held for Sale | Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing. |
Derivative Assets | Derivative Assets — We are exposed to interest rate risk for interest rate lock commitments (“IRLCs”) and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLC's and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge. ASC Topic 815-25 “Derivatives and Hedging,” requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting, therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in financial services revenue/expenses on the statement of operations in the period in which they occur. |
Prepaid Expenses and Other Assets, net | Prepaid expenses consist primarily of sales commissions, sales presentation centers and model home costs, such as design fees and furniture, and the unamortized issuance costs for the prior Revolving Credit Facility. 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. Build-to-rent assets consist primarily of land and development costs relating to our projects under construction. |
Other Receivables, net | Other Receivables, net |
Investments in Consolidated and Unconsolidated Entities | Investments in Consolidated and Unconsolidated Entities Consolidated Joint Ventures and Option Agreements — In the ordinary course of business, we participate in strategic land development and homebuilding joint ventures with third parties. The use of these entities, in some instances, enables us to acquire land to which we could not otherwise obtain access, or could not obtain access on terms that are as favorable. Some of these ventures develop land for the sole use of the venture participants and others develop land for sale to the joint venture participants and to unrelated builders. We review each joint venture partnership agreement to determine whether it is variable interest entity (“VIE”) in accordance with ASC Topic 810, “Consolidation.” 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, we are not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we continue our analysis to determine 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. For these entities in which we are expected to absorb the losses or benefits, we consolidate the results in the accompanying Consolidated Financial Statements. 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. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a third party. These joint ventures are recorded in investments in unconsolidated entities on the Consolidated Balance Sheets. |
Income Taxes | Income Taxes — We account for income taxes in accordance with ASC Topic 740, “Income Taxes.” Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. As a result of the Tax Cuts and Jobs Act (“Tax Act”) enacted on December 22, 2017, we recorded a material charge to our income tax provision in the period ending December 31, 2017. See Note 12 - Income Taxes for additional details. 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. |
Intangible Assets, net | Intangible Assets, net — Intangible assets consist of tradenames, fair market value of leases, and non-compete covenants. We sell our homes under the Taylor Morrison and Darling Homes trade names. The fair value of acquired intangible assets was determined using the income approach, and are amortized on a straight line basis from three to 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 . ” |
Insurance Costs, Self-Insurance Reserves and Warranty Reserves | Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our different policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability limits are $50 million per occurrence, aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property 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 a limited warranty to cover various defects in workmanship or materials, including structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the arrangement since it is not priced apart from the home, therefore, it is accounted for in accordance with ASC Topic 450, “Contingencies,” which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of cost of home closings. 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 - Former Principal Equityholders | Non-controlling Interests — Former Principal Equityholders — Immediately prior to our IPO, as part of the Reorganization, the existing holders of limited partnership interests of TMM Holdings exchanged their limited partnership interests for limited partnership interests of New TMM (“New TMM Units”). For each New TMM Unit received in the exchange, the holders of New TMM Units also received a corresponding number of shares of our former Class B Common Stock. Our former Class B Common Stock had voting rights but no economic rights. One share of Class B Common Stock, together with one New TMM Unit, was exchangeable into one share of our Common Stock in accordance with the terms of the Exchange Agreement, dated as of April 9, 2013, among the Company, New TMM and the holders of Class B Common Stock and New TMM Units. |
Stock Based Compensation | Stock Based Compensation — We have stock options, performance based restricted stock units and non-performance-based restricted stock units which we account for in accordance with ASC Topic 718-10, “Compensation — Stock Compensation.” |
Employee Benefit Plans | Employee Benefit 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% of employees’ voluntary contributions up to 2% of eligible compensation, and 50% for each dollar contributed between 2% and 6% |
Treasury Stock | Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, “Equity - Treasury Stock.” Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. When factored into our weighted average calculations for purposes of earnings per share, the number of repurchased shares is based on the trade date. |
Revenue Recognition | Revenue Recognition Topic 606 In January 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09” or “Topic 606”), which provides new guidance for revenue recognition and elected to use the modified retrospective approach to account for prior periods. The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Home and land closings revenue Under Topic 606, the following steps are applied to determine the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we recognize revenue when (or as) we satisfy the performance obligation. For our home sales transactions, we have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue: • Revenue from closings of residential real estate is recognized when closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. • Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. Amenity and other revenue As a result of the AV Homes Acquisition, we own and operate certain amenities pursuant to recorded mandatory club plans, which require us to provide members with access to amenity facilities in exchange for the payment of club dues. We collect club dues and other fees from our members, which are billed on a monthly basis. Revenue from our golf club operations is also included in amenity revenue. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606 and therefore there was no change to our accounting policies related to such activities. Loan origination fees (including title fees, points, and 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, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets, therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. |
Advertising Costs | Advertising Costs |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements — In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for us in our fiscal year beginning January 1, 2021. We are currently evaluating the impact of the adoption of ASU 2019-12 on our consolidated financial statements and disclosures. In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 will be effective for us beginning January 1, 2020. We do not believe the adoption of the ASU 2016-13 will have a material impact on our consolidated financial statements and disclosures. |
Earnings Per Share | |
Fair Value Measurement | 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 mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets includes interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, the borrowings under our prior Revolving Credit Facility and our 364-Day Credit Agreement approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2019 , when compared to December 31, 2018 . |
Segment Reporting | We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. We also have a Financial Services reporting segment. We have no inter-segment sales. Our reporting segments are as follows: East Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa Central Austin, Dallas, Denver and Houston West Bay Area, Phoenix, Sacramento, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Future Lease Payments | The future minimum lease payments required under our leases as of December 31, 2019 are as follows (dollars in thousands): Years Ending December 31, Lease Payments 2020 $ 10,018 2021 8,868 2022 7,891 2023 7,323 2024 5,953 Thereafter 9,906 Total lease payments $ 49,959 Less: Interest $ 7,642 Present value of lease liabilities $ 42,317 |
Summary of Prepaid Expenses and Other Assets | Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2019 2018 Prepaid expenses $ 48,674 $ 69,917 Other assets 32,812 28,308 Build-to-rent assets 4,029 — Total prepaid expenses and other assets, net $ 85,515 $ 98,225 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Created | The following is a summary of the final fair value of assets acquired and liabilities assumed. (Dollars in thousands) AV Homes Acquisition Date October 2, 2018 Assets acquired Real estate inventory $ 782,424 Prepaid expenses and other assets (1) 107,004 Deferred tax assets, net 69,456 Property and equipment 50,996 Goodwill (2) 83,230 Total assets $ 1,093,110 Less liabilities assumed Accrued expenses and other liabilities $ 94,308 Customer deposits 14,130 Estimated development liability (3) 37,230 Senior notes, net 412,520 Net assets acquired $ 534,922 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $43.3 million of goodwill to the East homebuilding segment, $30.0 million to the Central homebuilding segment, and $9.9 million to the West homebuilding segment. (3) See Note 9 - Estimated Development Liability. |
Unaudited Pro Forma Results of Business Combinations | As Adjusted for the Year Ended December 31, (Dollars in thousands except per share data) 2018 2017 Pro forma total revenues $ 4,780,138 $ 4,728,543 Pro forma net income $ 231,270 $ 134,694 Pro forma net income attributable to non-controlling interests — joint ventures (533 ) (430 ) Pro forma net income attributable to non-controlling interest - Former Principal Equityholders (3,713 ) (60,642 ) Pro forma net income available to TMHC - Basic $ 227,024 $ 73,622 Pro forma net income attributable to non-controlling interest - Former Principal Equityholders 3,713 60,642 Pro forma loss fully attributable to public holding company 540 6,681 Pro forma net income - Diluted $ 231,277 $ 140,945 Pro forma weighted average shares - Basic 118,593 70,285 Pro forma weighted average shares - Diluted 121,969 129,139 Pro forma earnings per share - Basic $ 1.91 $ 1.05 Pro forma earnings per share - Diluted $ 1.90 $ 1.05 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Components of Basic and Diluted Earnings Per Share | The following is a summary of the components of basic and diluted earnings per share: Year Ended December 31, (Dollars in thousands except per share data) 2019 2018 2017 Numerator: Net income available to TMHC — basic (1) $ 254,652 $ 206,364 $ 91,220 Net income attributable to non-controlling interest - Former Principal Equityholders — 3,583 85,000 Loss fully attributable to public holding company — 540 6,681 Net income — diluted $ 254,652 $ 210,487 $ 182,901 Denominator: Weighted average shares — basic 106,997 111,743 62,061 Weighted average shares — non-controlling interest (2) — 1,935 57,556 Restricted stock units 983 1,117 950 Stock options 309 324 348 Weighted average shares — diluted 108,289 115,119 120,915 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 2.38 $ 1.85 $ 1.47 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 2.35 $ 1.83 $ 1.47 (1) 2019 and 2018 amounts include impacts of significant and unusual transactions. For the year ended December 31, 2019 we recorded $10.7 million of transaction and corporate reorganization expenses relating to costs associated with our acquisitions, $5.8 million of loss on extinguishment of debt, net and an aggregate of $72.1 million of costs related to our Chicago operations write off, warranty, impairment, and other legal costs associated with such unusual transactions. For the year ended December 31, 2018 we recorded $50.9 million of transaction and corporate reorganization expenses which consisted of $30.8 million acquisition related costs and $20.1 million of costs relating to our Canada Unwind. In addition we recorded an aggregate of $50.1 million of costs related to impacts of warranty, impairment, and other legal costs associated with such unusual transactions for the year ended December 31, 2018. 2017 amounts include impacts of the Tax Act, which was an aggregate $61.0 million expense. (2) S hares of the former Class B Common Stock had voting rights but did not have economic rights or rights to dividends or distribution on liquidation and therefore were not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share. In connection with our corporate reorganization (refer to Note 1 - Business ), on October 26, 2018, all remaining outstanding shares of Class B Common Stock, together with their corresponding New TMM Units, were exchanged for Common Stock. All outstanding shares of Class B Common Stock were retired following the exchange. |
Real Estate Inventory and Lan_2
Real Estate Inventory and Land Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of December 31, (Dollars in thousands) 2019 2018 Real estate developed or under development $ 2,805,506 $ 2,833,875 Real estate held for development or held for sale (1) 146,471 61,415 Operating communities (2) 899,789 973,985 Capitalized interest 115,593 96,031 Total owned inventory 3,967,359 3,965,306 Real estate not owned under option contracts 19,185 15,259 Total real estate inventory $ 3,986,544 $ 3,980,565 (1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets. As of December 31, 2019, all inventory relating to our Chicago operations are deemed held for sale and are included in owned inventory on the Consolidated Balance Sheet. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active production of inventory. |
Summary of Development Status of Land Inventory | The development status of our land inventory is as follows: As of December 31, (Dollars in thousands) 2019 2018 Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw 13,804 $ 477,997 9,653 $ 461,387 Partially developed 13,298 914,689 12,036 756,376 Finished 15,504 1,559,291 21,975 1,677,527 Total 42,606 $ 2,951,977 43,664 $ 2,895,290 |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest capitalized — beginning of period $ 96,031 $ 90,496 $ 102,642 Interest incurred 113,301 87,957 82,713 Interest amortized to cost of home closings (93,739 ) (82,422 ) (94,859 ) Interest capitalized — end of period $ 115,593 $ 96,031 $ 90,496 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method | Summarized, combined financial information of unconsolidated entities that are accounted for by the equity method is as follows: As of December 31, (Dollars in thousands) 2019 2018 Assets: Real estate inventory $ 367,225 $ 508,795 Other assets 132,812 125,436 Total assets $ 500,037 $ 634,231 Liabilities and owners’ equity: Debt $ 178,686 $ 176,564 Other liabilities 20,490 16,061 Total liabilities $ 199,176 $ 192,625 Owners’ equity: TMHC 128,759 140,541 Others 172,102 301,075 Total owners’ equity 300,861 441,616 Total liabilities and owners’ equity $ 500,037 $ 634,241 |
Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Revenues $ 277,263 $ 381,274 $ 330,099 Costs and expenses (242,044 ) (328,565 ) (296,838 ) Income of unconsolidated entities $ 35,219 $ 52,709 $ 33,261 TMHC's share in income of unconsolidated entities $ 9,509 $ 13,332 $ 8,846 Distributions from unconsolidated entities $ 34,057 $ 68,847 $ 11,048 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: As of December 31, (Dollars in thousands) 2019 2018 Real estate development costs to complete $ 20,598 $ 16,591 Compensation and employee benefits 95,585 73,955 Self-insurance and warranty reserves 120,048 93,790 Interest payable 23,178 21,385 Property and sales taxes payable 12,537 14,861 Other accruals 53,422 46,104 Total accrued expenses and other liabilities $ 325,368 $ 266,686 |
Summary of Changes in Reserves | A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Reserve — beginning of period $ 93,790 $ 51,010 $ 50,550 Additions to reserves 44,093 51,674 27,561 Costs and claims incurred (67,554 ) (42,433 ) (25,698 ) Change in estimates to pre-existing reserves (1) 49,719 33,539 (1,403 ) Reserve — end of period $ 120,048 $ 93,790 $ 51,010 (1) Changes in estimates to pre-existing reserves for the years ended December 31, 2019 and 2018 include a $43.1 million and $39.3 million , respectively, charge for construction defect remediation isolated to one specific community in the Central region. These reserves at December 31, 2019 and 2018 are $36.3 million and $27.6 million , respectively. The reserve estimate is based on assumptions, including but not limited to, the number of homes affected, the costs associated with each repair, and the effectiveness of the repairs. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that actual costs could differ from those recorded and such differences could be material, resulting in a change in future estimated reserves. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Borrowings | Total debt consists of the following: As of December 31, 2019 2018 (Dollars in thousands) Principal Unamortized Debt Issuance Costs Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.25% Senior Notes due 2021 — — — 550,000 (2,695 ) 547,305 6.625% Senior Notes due 2022 — — — 400,000 11,656 411,656 5.875% Senior Notes due 2023 350,000 (1,867 ) 348,133 350,000 (2,434 ) 347,566 5.625% Senior Notes due 2024 350,000 (2,244 ) 347,756 350,000 (2,781 ) 347,219 5.875% Senior Notes due 2027 500,000 (5,808 ) 494,192 — — — 5.75% Senior Notes due 2028 $ 450,000 (5,073 ) 444,927 — — — Senior Notes subtotal 1,650,000 (14,992 ) 1,635,008 1,650,000 3,746 1,653,746 Loans payable and other borrowings 182,531 — 182,531 225,497 — 225,497 Revolving Credit Facility — — — — — — 364-Day Credit Agreement — — — 200,000 — 200,000 Mortgage warehouse borrowings 123,233 — 123,233 130,353 — 130,353 Total debt $ 1,955,764 $ (14,992 ) $ 1,940,772 $ 2,205,850 $ 3,746 $ 2,209,596 |
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2019 Facility Amount Drawn Facility Amount Interest Rate Expiration Date Collateral (1) Warehouse A $ 25,074 $ 45,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B $ 38,481 $ 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C $ 59,678 $ 100,000 LIBOR + 1.70% On Demand Mortgage Loans and Restricted Cash Total $ 123,233 $ 230,000 December 31, 2018 Facility Amount Drawn Facility Amount Interest Rate Expiration Date Collateral (1) Warehouse A $ 29,484 $ 45,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 38,164 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 62,705 100,000 LIBOR + 1.95% On Demand Mortgage Loans and Restricted Cash Total $ 130,353 $ 230,000 (1) The mortgage warehouse borrowings outstanding as of December 31, 2019 and 2018 , are collateralized by $190.9 million and $181.9 million , respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $1.6 million , of cash for both periods, which is restricted cash on our balance sheet. |
Principal Maturities of Total Debt | Principal maturities of total debt for the year ended December 31, 2019 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2020 $ 182,870 2021 55,275 2022 11,763 2023 374,477 2024 381,379 Thereafter 950,000 Total debt $ 1,955,764 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of our financial instruments are as follows: As of December 31, 2019 As of December 31, 2018 (Dollars in thousands) Level in Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Description: Mortgage loans held for sale 2 $ 190,880 $ 190,880 $ 181,897 $ 181,897 Derivative assets, net 2 1,932 1,932 1,099 1,099 Mortgage borrowings 2 123,233 123,233 130,353 130,353 Loans payable and other borrowings 2 182,531 182,531 225,497 225,497 5.25% Senior Notes due 2021 (1) 2 — — 547,304 544,500 6.625% Senior Notes due 2022 (1) 2 — — 411,656 400,520 5.875% Senior Notes due 2023 (1) 2 348,133 378,669 347,566 337,750 5.625% Senior Notes due 2024 (1) 2 347,756 379,453 347,219 332,500 5.875% Senior Notes due 2027 (1) 2 494,192 548,870 — — 5.75% Senior Notes due 2028 (1) 2 444,927 491,913 — — Revolving Credit Facility (2) 2 — — — — 364-Day Credit Agreement (3) 2 — — 200,000 200,000 (1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes. (2) At December 31, 2019 and 2018 , we had no borrowings outstanding on our prior Revolving Credit Facility. (3) 364-Day Credit Agreement was entered into on October 2, 2018 to facilitate the Acquisition and paid off on the maturity date of October 1, 2019. |
Fair Value of Assets Measured on a Nonrecurring Basis | The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis: (Dollars in thousands) For the Year Ended December 31, Description: Level in 2019 2018 Inventories 3 $ 16,509 $ 5,545 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2019 , 2018 and 2017 consisted of the following: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Domestic $ 67,358 $ 37,731 $ 173,541 Foreign — 25,305 5,465 Total income tax provision $ 67,358 $ 63,036 $ 179,006 Current: Federal $ 54,372 $ (10,568 ) $ 73,974 State 9,839 4,104 9,379 Foreign — 25,482 7,169 Current tax provision $ 64,211 $ 19,018 $ 90,522 Deferred: Federal $ (1,811 ) $ 40,037 $ 95,243 State 4,958 4,158 (5,055 ) Foreign — (177 ) (1,704 ) Deferred tax provision $ 3,147 $ 44,018 $ 88,484 Total income tax provision $ 67,358 $ 63,036 $ 179,006 |
Schedule of Components of Income (Loss) Before Income Taxes | The components of income before income taxes are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Domestic $ 322,272 $ 271,017 $ 323,359 Foreign — 2,499 32,297 Income before income taxes $ 322,272 $ 273,516 $ 355,656 |
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows: Year Ended December 31, 2019 2018 2017 Tax at federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal benefit) 3.9 4.4 3.2 Foreign income taxed at a different rate — 0.5 (0.8 ) Domestic manufacturing deduction — — (2.1 ) Uncertain tax positions (0.2 ) (2.9 ) 1.1 State net operating loss adjustment — — (2.1 ) Deferred tax adjustments 0.2 — (1.1 ) Energy tax credits (4.6 ) (1.7 ) (0.9 ) Subpart F dividend — 1.7 — Corporate reorganization/Canada unwind — 9.3 — Foreign tax credit — (2.4 ) — Disallowed compensation expense 0.3 (0.1 ) 0.2 Tax reform — (6.9 ) 17.1 Other 0.3 0.1 0.7 Effective Rate 20.9 % 23.0 % 50.3 % |
Summary of Components of Deferred Tax Assets and Liabilities | A summary of these components for the years ending December 31, 2019 and 2018 is as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Real estate inventory $ 22,232 $ 24,804 Accruals and reserves 39,029 28,556 Other 15,827 20,612 Net operating losses (1) 69,815 (1) 77,558 Capital loss carryforward 35,340 35,340 Total deferred tax assets $ 182,243 $ 186,870 Deferred tax liabilities: Real estate inventory, intangibles, other (6,437 ) (6,454 ) Foreign exchange — — Valuation allowance (35,340 ) (35,340 ) Total net deferred tax assets $ 140,466 $ 145,076 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from two acquisitions: 1) the 2011 acquisition of the Company by our former Principal Equityholders and 2) the 2018 acquisition of AV Homes. Both acquisitions were deemed to be a change in control as defined by Section 382. |
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ending December 31, (Dollars in thousands) 2019 2018 2017 Beginning of the period $ 7,391 $ 12,936 $ 7,773 Increases of current year items — — — Increases from current year acquisitions — 4,216 — Increases of prior year items 15 475 5,163 Settlement with tax authorities (977 ) (9,818 ) — Decreased for tax positions of prior years (76 ) — — Decreased due to statute of limitations (195 ) (418 ) — End of the period $ 6,158 $ 7,391 $ 12,936 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchases | The following table summarizes share repurchase activity for the program for the year ended December 31, 2019 : Year Ended December 31, (Dollars in thousands) 2019 2018 Amount available for repurchase — beginning of period $ 57,437 $ 95,902 Additional amount authorized for repurchase 100,000 100,000 Amount repurchased (157,437 ) (138,465 ) Amount available for repurchase — end of period $ — $ 57,437 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the accompanying Consolidated Statements of Operations (in thousands): (Dollars in thousands) Year Ended December 31, 2019 2018 2017 Restricted stock units (RSUs) (1) (2) $ 10,989 $ 17,130 $ 6,487 Stock options 3,774 3,994 4,504 New TMM Units (3) — — 596 Total stock compensation $ 14,763 $ 21,124 $ 11,587 (1) Includes compensation expense related to time-based restricted stock units and performance-based restricted stock units. (2) Stock-based compensation expense in 2018 includes approximately $6.5 million of expense recognized for the acceleration of equity awards as part of the acquisition of AV Homes. (3) As of December 31, 2017, all new TMM units were vested, and there was no further expense associated with them. |
Summary of Stock Option Activity | The following table summarizes stock option activity for the Plan for each year presented: Year Ended December 31, 2019 2018 2017 Number of Options Weighted Average Exercise/Grant Price Number of Options Weighted Average Exercise/Grant Price Number of Options Weighted Average Exercise/Grant Price Outstanding, beginning 3,239,995 $ 18.87 2,854,213 $ 17.50 2,431,347 $ 17.09 Granted 997,924 18.15 726,473 23.86 792,054 19.06 Exercised (765,781 ) 17.29 (118,992 ) 15.85 (288,808 ) 18.13 Cancelled/forfeited (132,894 ) 19.86 (221,699 ) 18.71 (80,380 ) 18.64 Balance, ending 3,339,244 $ 18.98 3,239,995 $ 18.87 2,854,213 $ 17.50 Options exercisable, at December 31 1,400,974 $ 19.09 1,537,977 $ 18.80 906,583 $ 19.62 As of December 31, (Dollars in thousands) 2019 2018 2017 Unamortized value of unvested stock options (net of estimated forfeitures) $ 6,759 $ 6,470 $ 6,749 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.4 Weighted-average remaining contractual life (in years) for options outstanding 6.9 6.9 7.5 Weighted-average remaining contractual life (in years) for options exercisable 5.1 5.6 6.1 |
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, 2019 2018 2017 Expected dividend yield —% —% —% Expected volatility 19.33% 21.31% 24.37% Risk-free interest rate 2.49% 2.68% 2.12% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $4.69 $6.68 $5.56 |
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, 2019, 2018, and 2017 : As of December 31, (Dollars in thousands) 2019 2018 2017 Aggregate intrinsic value of options outstanding $ 10,935 $ 3,432 $ 19,891 Aggregate intrinsic value of options exercisable $ 4,283 $ 1,540 $ 4,400 |
Summary of Activity of Stock Units | The following tables summarize the activity of our RSUs: Year Ended December 31, 2019 2018 2017 (Dollars in thousands except per share data): Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Outstanding, beginning 769,641 $ 16.73 698,819 $ 15.65 534,484 $ 14.01 Granted 299,481 18.42 333,397 20.35 257,182 19.48 Vested (320,701 ) 15.25 (181,904 ) 13.01 (75,315 ) 17.43 Forfeited (38,667 ) 16.91 (80,671 ) 16.90 (17,532 ) 14.10 Balance, ending 709,754 $ 18.11 769,641 $ 16.73 698,819 $ 15.65 Year Ended December 31, (Dollars in thousands): 2019 2018 2017 RSU expense recognized $ 5,123 $ 4,854 $ 3,148 Unamortized value of RSUs $ 6,176 $ 6,435 $ 6,261 Weighted-average period expense is expected to be recognized (in years) 1.7 1.9 2.5 The following table summarizes the activity of our PRSUs: Year Ended December 31, 2019 2018 2017 Balance, beginning 1,155,723 1,190,740 824,217 Granted 416,874 338,472 392,404 Vested (511,984 ) (61,343 ) — Forfeited (61,974 ) (312,146 ) (25,881 ) Balance, ending 998,639 1,155,723 1,190,740 Year Ended December 31, (Dollars in thousands): 2019 2018 2017 PRSU expense recognized $ 5,866 $ 5,779 $ 3,257 Unamortized value of PRSUs $ 7,912 $ 7,501 $ 6,756 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 as of December 31, 2018 and 2017 are shown in the table below. All shares of Class B Common Stock were exchanged for Common Stock as of December 31, 2018. Year Ended December 31, 2018 2017 Number of Awards Weighted Average Grant Date Fair Value Number of Awards Weighted Average Grant Date Fair Value Outstanding, beginning 883,921 $ 5.24 1,146,357 $ 5.58 Exchanges (1) (883,921 ) 5.24 (260,389 ) 6.72 Forfeited (2) — — (2,047 ) 8.52 Balance, ending — $ — 883,921 $ 5.24 Unvested TMM Units included in ending balance (3) — $ — — $ — (1) 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 Common Stock. (2) 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 canceled. (3) All New TMM units vested as of December 31, 2017. |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Sales of Common Stock in Registered Public Offerings | The aggregate number of partnership units and corresponding shares of Class B Common Stock that we purchased was equal to the number of shares of Common Stock sold in the public offerings. The following is a summary of the completed sales of our Common Stock in registered public offerings for the years ended December 31, 2018 and 2017: (Shares presented in thousands) Closing date Number of shares Net purchase price per share February 6, 2017 11,500 $ 18.2875 March 27, 2017 10,000 20.7800 May 5, 2017 10,000 23.1200 June 27, 2017 10,000 23.3000 November 13, 2017 10,000 22.9500 January 8, 2018 11,000 26.0500 January 17, 2018 (1) 19,207 27.1400 (1) The January 17, 2018 offering consisted of 17.7 million shares of Common Stock offered by the Company and 1.5 million shares offered directly by TPG. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The table below provides the components of accumulated other comprehensive income (loss): Year Ended December 31, 2019 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,001 $ — $ — $ 2,001 Other comprehensive loss before reclassifications (1,117 ) — — (1,117 ) Other comprehensive loss net of tax $ (1,117 ) $ — $ — $ (1,117 ) Balance, end of period $ 884 $ — $ — $ 884 Year Ended December 31, 2018 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,082 $ (45,205 ) $ 25,155 $ (17,968 ) Other comprehensive loss before reclassifications (81 ) — — (81 ) Foreign currency translation (1) 20,050 20,050 Other comprehensive loss net of tax $ (81 ) $ 20,050 $ — $ 19,969 Gross amounts reclassified within accumulated other comprehensive income — 25,155 (25,155 ) — Balance, end of period $ 2,001 $ — $ — $ 2,001 (1) In connection with the holding company reorganization on October 26, 2018 and through a series of transactions, all remaining assets in our Canadian subsidiary were contributed to a subsidiary in the United States, resulting in a foreign currency translation adjustment. Year Ended December 31, 2017 (Dollars in thousands) Total Post- Retirement Benefits Adjustments Foreign Currency Translation Adjustments Non-controlling Interest in Principal Equityholders Total Balance, beginning of period $ 2,061 $ (79,927 ) $ 59,877 $ (17,989 ) Other comprehensive income before reclassifications 21 — — 21 Other comprehensive income net of tax $ 21 $ — $ — $ 21 Gross amounts reclassified within accumulated other comprehensive income — 34,722 (34,722 ) — Balance, end of period $ 2,082 $ (45,205 ) $ 25,155 $ (17,968 ) |
Operating and Reporting Segme_2
Operating and Reporting Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reporting Segments | Our reporting segments are as follows: East Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa Central Austin, Dallas, Denver and Houston West Bay Area, Phoenix, Sacramento, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services |
Segment Information Excluding Discontinued Operations | Segment information is as follows: Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,950,742 $ 1,334,389 $ 1,384,113 $ 92,815 $ — $ 4,762,059 Gross margin $ 307,893 $ 187,957 $ 286,511 $ 41,729 $ — $ 824,090 Selling, general and administrative expense (168,928 ) (121,962 ) (94,609 ) — (104,772 ) (490,271 ) Equity in income of unconsolidated entities — (215 ) 3,562 6,021 141 9,509 Interest and other expense, net (1) (5,545 ) (1,024 ) (3,273 ) — (11,214 ) (21,056 ) Income before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845 ) $ 322,272 (1) Interest and other expense, net includes loss on extinguishment of debt. Year Ended December 31, 2018 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,666,423 $ 1,139,622 $ 1,353,590 $ 67,758 $ — $ 4,227,393 Gross margin $ 281,306 $ 161,323 $ 269,276 $ 26,289 $ (1 ) $ 738,193 Selling, general and administrative expense (138,720 ) (104,295 ) (82,940 ) — (90,988 ) (416,943 ) Equity in income of unconsolidated entities 464 876 6,450 5,316 226 13,332 Interest and other expense, net (5,615 ) (3,259 ) (526 ) — (51,666 ) (61,066 ) Income before income taxes $ 137,435 $ 54,645 $ 192,260 $ 31,605 $ (142,429 ) $ 273,516 Year Ended December 31, 2017 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Total revenues $ 1,383,864 $ 1,112,984 $ 1,319,306 $ 69,136 $ — $ 3,885,290 Gross margin $ 284,722 $ 206,386 $ 220,337 $ 27,484 $ — $ 738,929 Selling, general and administrative expense (122,218 ) (105,945 ) (79,223 ) — (83,054 ) (390,440 ) Equity in income of unconsolidated entities 213 1,246 1,422 5,965 — 8,846 Interest and other (expense)/income, net (314 ) 360 (190 ) — (1,535 ) (1,679 ) Income before income taxes $ 162,403 $ 102,047 $ 142,346 $ 33,449 $ (84,589 ) $ 355,656 |
Assets from Segment | As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,841,904 $ 965,039 $ 1,219,411 $ — $ — $ 4,026,354 Investments in unconsolidated entities — 37,506 86,996 4,015 242 128,759 Other assets 165,777 121,724 60,060 257,760 485,252 1,090,573 Total assets $ 2,007,681 $ 1,124,269 $ 1,366,467 $ 261,775 $ 485,494 $ 5,245,686 As of December 31, 2018 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,862,756 $ 1,011,659 $ 1,164,079 $ — $ — $ 4,038,494 Investments in unconsolidated entities — 35,476 100,693 4,015 357 140,541 Other assets 162,339 118,187 55,433 236,291 513,156 1,085,406 Total assets $ 2,025,095 $ 1,165,322 $ 1,320,205 $ 240,306 $ 513,513 $ 5,264,441 As of December 31, 2017 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated Total Real estate inventory and land deposits $ 1,150,918 $ 818,431 $ 1,039,655 $ — $ — $ 3,009,004 Investments in unconsolidated entities 29,316 32,874 126,559 3,615 — 192,364 Other assets 85,753 124,593 53,492 225,641 635,046 1,124,525 Total assets $ 1,265,987 $ 975,898 $ 1,219,706 $ 229,256 $ 635,046 $ 4,325,893 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Quarterly results are as follows (1) : (Dollars in thousands except per share data) First Second Third Fourth Total revenues $ 925,092 $ 1,265,426 $ 1,105,105 $ 1,466,436 Gross margin 172,040 233,774 211,074 207,202 Income before income taxes 68,072 110,019 90,421 53,760 Net income before allocation to non-controlling interests 51,281 81,888 67,036 54,709 Net income available to Taylor Morrison Home Corporation 51,131 81,851 67,012 54,658 Basic earnings per share $ 0.46 $ 0.77 $ 0.64 $ 0.52 Diluted earnings per share $ 0.46 $ 0.76 $ 0.63 $ 0.51 (Dollars in thousands except per share data) First Second Third Fourth Total revenues $ 752,333 $ 980,828 $ 1,036,379 $ 1,457,853 Gross margin 143,102 178,711 198,999 217,381 Income before income taxes 59,238 79,285 100,865 34,128 Net income before allocation to non-controlling interests 47,532 59,292 94,441 9,215 Net income available to Taylor Morrison Home Corporation 44,933 58,678 93,568 9,055 Basic earnings per share $ 0.42 $ 0.53 $ 0.84 $ 0.08 Diluted earnings per share $ 0.41 $ 0.52 $ 0.83 $ 0.08 (1) The sum of the individual quarterly amounts may not agree to the annual amounts included in the accompanying consolidated statements of operations due to rounding. |
Mortgage Hedging Activities (Ta
Mortgage Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summaries of Derivative Instruments | The following summarizes derivative instrument assets (liabilities) as of the periods presented: As of December 31, 2019 December 31, 2018 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount IRLCs $ 2,099 $ 86,434 $ 1,838 $ 75,090 MBSs (167 ) 158,000 (739 ) 118,000 Total $ 1,932 $ 1,099 |
Business (Detail)
Business (Detail) $ in Thousands, shares in Millions | Feb. 06, 2020USD ($)shares | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2018public_offeringshares |
Class of Stock [Line Items] | |||||
Reportable segments | Segment | 4 | ||||
Payments to acquire business | $ | $ 0 | $ 192,886 | $ 0 | ||
Class A | |||||
Class of Stock [Line Items] | |||||
Number of public stock offerings | public_offering | 7 | ||||
Number of shares sold in public offerings | shares | 80.2 | ||||
William Lyon Homes | Subsequent event | |||||
Class of Stock [Line Items] | |||||
Payments to acquire business | $ | $ 95,700 | ||||
Common stock issued in merger consideration (in shares) | shares | 31.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Significant Accounting Policies [Line Items] | ||||
Acquisition costs | $ 10,700,000 | $ 30,800,000 | ||
Change in operating lease right of use assets due to adoption of ASU 2016-02 | 36,663,000 | $ 27,400,000 | ||
Operating lease liabilities | $ 42,317,000 | $ 30,300,000 | ||
Weighted average discount rate (as a percentage) | 5.795% | |||
Weighted average remaining lease term | 6 years | |||
Payments on lease liabilities | $ 9,400,000 | |||
Lease expense | 9,087,000 | 0 | $ 0 | |
Inventory impairments | 9,384,000 | 9,631,000 | 0 | |
Cost of revenue | 3,937,969,000 | 3,489,200,000 | 3,146,361,000 | |
Sales, commissions and other marketing costs | 320,420,000 | 278,455,000 | 259,663,000 | |
General and administrative expenses | 169,851,000 | 138,488,000 | 130,777,000 | |
Other expense, net | 7,226,000 | 11,816,000 | 2,256,000 | |
Equity method investment impairment charges | 0 | 0 | 0 | |
Allowances for credit losses | 0 | |||
Depreciation expense | 4,800,000 | 4,000,000 | 2,800,000 | |
Impairment of goodwill | 0 | 0 | 0 | |
Goodwill additions | 0 | |||
Excess insurance liability | $ 50,000,000 | |||
Insurance coverage period | 10 years | |||
Contribution made to consolidated defined contribution plan | $ 10,700,000 | 9,300,000 | 7,800,000 | |
Advertising costs | 32,000,000 | 30,700,000 | 30,900,000 | |
Eastern Region | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory impairments | 2,500,000 | |||
Central | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory impairments | $ 6,900,000 | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Life cycle of communities (in years) | 2 years | |||
Finite-lived intangible asset, useful life | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Life cycle of communities (in years) | 5 years | |||
Finite-lived intangible asset, useful life | 10 years | |||
Model and sales office improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Buildings | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 20 years | |||
Buildings | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Building and Leasehold Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | |||
Furniture, fixtures and computer equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Furniture, fixtures and computer equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | |||
Conversion of TMM Holdings Class M Units Into TPG and Oaktree Units | New TMM Unit | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock conversion ratio | 1 | |||
Conversion of TMM Holdings Class M Units Into TPG and Oaktree Units | New TMM Unit | Class B | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock conversion ratio | 1 | |||
Conversion of TMM Holdings Class M Units Into TPG and Oaktree Units | New TMM Unit | Class A | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock conversion ratio | 1 | |||
Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage (below) | 50.00% | |||
Customer Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage (below) | 50.00% | |||
Employer Matching Contribution Tranche One | ||||
Significant Accounting Policies [Line Items] | ||||
Defined contribution plan employee matching contribution | 100.00% | |||
Percentage of contribution based on participant's age and ranges | 2.00% | |||
Employer Matching Contribution Tranche Two | ||||
Significant Accounting Policies [Line Items] | ||||
Defined contribution plan employee matching contribution | 50.00% | |||
Employer Matching Contribution Tranche Two | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of contribution based on participant's age and ranges | 2.00% | |||
Employer Matching Contribution Tranche Two | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of contribution based on participant's age and ranges | 6.00% | |||
East | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory impairments | 8,500,000 | |||
West | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory impairments | 1,100,000 | |||
Home closings | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | $ 3,836,857,000 | 3,410,853,000 | 3,092,704,000 | |
Land closings | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | 32,871,000 | $ 33,458,000 | $ 12,005,000 | |
Chicago Operations Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Sales, commissions and other marketing costs | 400,000 | |||
General and administrative expenses | 1,100,000 | |||
Other expense, net | 1,200,000 | |||
Chicago Operations Assets | Home closings | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | 700,000 | |||
Chicago Operations Assets | Land closings | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | $ 9,900,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
2020 | $ 10,018 | |
2021 | 8,868 | |
2022 | 7,891 | |
2023 | 7,323 | |
2024 | 5,953 | |
Thereafter | 9,906 | |
Total lease payments | 49,959 | |
Less: Interest | 7,642 | |
Operating lease liabilities | $ 42,317 | $ 30,300 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 48,674 | $ 69,917 |
Other assets | 32,812 | 28,308 |
Build-to-rent assets | 4,029 | 0 |
Total prepaid expenses and other assets, net | $ 85,515 | $ 98,225 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Oct. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 0 | $ 192,886 | $ 0 | |
Repayment of convertible debt acquired | $ 0 | $ 95,816 | $ 0 | |
AV Homes, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business combination, total purchase consideration | $ 534,900 | |||
Payments to acquire business | 280,400 | |||
Business combination, liabilities incurred | 80,000 | |||
Repayment of convertible debt acquired | $ 95,800 | |||
Business combination, shares issued | 8,950 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value of Assets Acquired and Liabilities Created (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 02, 2018 |
Assets Acquired | |||
Goodwill | $ 149,428 | $ 152,116 | |
AV Homes, Inc. | |||
Assets Acquired | |||
Real estate inventory | $ 782,424 | ||
Prepaid expenses and other assets | 107,004 | ||
Deferred tax assets, net | 69,456 | ||
Property and equipment | 50,996 | ||
Goodwill | 83,230 | ||
Total assets | 1,093,110 | ||
Less Liabilities Assumed | |||
Accrued expenses and other liabilities | 94,308 | ||
Customer deposits | 14,130 | ||
Estimated development liability | 37,230 | ||
Senior notes, net | 412,520 | ||
Net Assets Acquired | 534,922 | ||
AV Homes, Inc. | East | |||
Assets Acquired | |||
Goodwill | 43,300 | ||
AV Homes, Inc. | Central | |||
Assets Acquired | |||
Goodwill | 30,000 | ||
AV Homes, Inc. | West | |||
Assets Acquired | |||
Goodwill | $ 9,900 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Results (Detail) - AV Homes, Inc. - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unaudited Pro Forma Results | ||
Pro forma total revenues | $ 4,780,138 | $ 4,728,543 |
Pro forma net income | 231,270 | 134,694 |
Pro forma net income available to TMHC - Basic | 227,024 | 73,622 |
Pro forma loss fully attributable to public holding company | 540 | 6,681 |
Pro forma net income - Diluted | $ 231,277 | $ 140,945 |
Pro forma weighted average shares - Basic (in shares) | 118,593 | 70,285 |
Pro forma weighted average shares - Diluted (in shares) | 121,969 | 129,139 |
Pro forma earnings per share - Basic (in dollars per share) | $ 1.91 | $ 1.05 |
Pro forma earnings per share - Diluted (in dollars per share) | $ 1.90 | $ 1.05 |
Revenue of acquiree since acquisition date | $ 234,300 | |
Earnings of acquiree since acquisition date | 7,700 | |
Joint Ventures | ||
Unaudited Pro Forma Results | ||
Pro forma net income attributable to non-controlling interests | 533 | $ 430 |
Former Principal Equityholders | ||
Unaudited Pro Forma Results | ||
Pro forma net income attributable to non-controlling interests | $ 3,713 | $ 60,642 |
Earnings Per Share - Summary o
Earnings Per Share - Summary of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 20, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Numerator: | ||||||||||||
Net income available to TMHC — basic | $ 254,652 | $ 206,364 | $ 91,220 | |||||||||
Net income attributable to non-controlling interest - Former Principal Equityholders | 0 | 3,583 | 85,000 | |||||||||
Loss fully attributable to public holding company | 0 | 540 | 6,681 | |||||||||
Net income — diluted | $ 254,652 | $ 210,487 | $ 182,901 | |||||||||
Denominator: | ||||||||||||
Weighted average shares - basic (Class A) (in shares) | 106,997 | 111,743 | 62,061 | |||||||||
Weighted average shares - non-controlling interest (Class B) (in shares) | 0 | 1,935 | 57,556 | |||||||||
Restricted stock units (in shares) | 983 | 1,117 | 950 | |||||||||
Stock options (in shares) | 309 | 324 | 348 | |||||||||
Weighted average shares - diluted (in shares) | 108,289 | 115,119 | 120,915 | |||||||||
Earnings per common share | ||||||||||||
Net income available to Taylor Morrison Home Corporation (usd per share) | $ 0.52 | $ 0.64 | $ 0.77 | $ 0.46 | $ 0.08 | $ 0.84 | $ 0.53 | $ 0.42 | $ 2.38 | $ 1.85 | $ 1.47 | |
Earnings per common share — diluted: | ||||||||||||
Net income available to Taylor Morrison Home Corporation (usd per share) | $ 0.51 | $ 0.63 | $ 0.76 | $ 0.46 | $ 0.08 | $ 0.83 | $ 0.52 | $ 0.41 | $ 2.35 | $ 1.83 | $ 1.47 | |
Acquisition costs | $ 10,700 | $ 30,800 | $ 10,700 | $ 30,800 | ||||||||
Loss on extinguishment of debt | $ 2,200 | 5,806 | 0 | $ 0 | ||||||||
Acquisitions, impairment and legal costs | 72,100 | 50,100 | ||||||||||
Acquisition and reorganization costs | 50,900 | |||||||||||
Transaction and corporate reorganization expenses | $ 10,697 | 50,889 | 0 | |||||||||
Income tax expense impact of Tax Act | $ 61,000 | |||||||||||
Canada Unwind | ||||||||||||
Earnings per common share — diluted: | ||||||||||||
Transaction and corporate reorganization expenses | $ 20,100 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options and restricted stock units (RSUs) | |||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the calculation of earnings per share | 2,394,703 | 2,232,647 | 1,655,017 |
Real Estate Inventory and Lan_3
Real Estate Inventory and Land Deposits - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Real Estate [Abstract] | ||||
Real estate developed or under development | $ 2,805,506 | $ 2,833,875 | ||
Real estate held for development or held for sale | 146,471 | 61,415 | ||
Operating communities | 899,789 | 973,985 | ||
Capitalized interest | 115,593 | 96,031 | $ 90,496 | $ 102,642 |
Total owned inventory | 3,967,359 | 3,965,306 | ||
Real estate not owned under option contracts | 19,185 | 15,259 | ||
Total real estate inventory | $ 3,986,544 | $ 3,980,565 |
Real Estate Inventory and Lan_4
Real Estate Inventory and Land Deposits - Schedule of Development Status of Land Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Book Value of Land and Development | ||
Inventory [Line Items] | ||
Raw | $ 477,997 | $ 461,387 |
Partially developed | 914,689 | 756,376 |
Finished | 1,559,291 | 1,677,527 |
Total | 2,951,977 | 2,895,290 |
Owned Lots | ||
Inventory [Line Items] | ||
Raw | 13,804 | 9,653 |
Partially developed | 13,298 | 12,036 |
Finished | 15,504 | 21,975 |
Total | $ 42,606 | $ 43,664 |
Real Estate Inventory and Lan_5
Real Estate Inventory and Land Deposits - Narrative (Detail) $ in Millions | Dec. 31, 2019USD ($)Lot | Dec. 31, 2018USD ($)Lot |
Real Estate [Abstract] | ||
Right to purchase lots of land option (in lots) | Lot | 4,263 | 4,781 |
Aggregate purchase price | $ 289.7 | $ 393.8 |
Land deposits | $ 39.8 | $ 57.9 |
Real Estate Inventory and Lan_6
Real Estate Inventory and Land Deposits - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Interest Costs | |||
Interest capitalized — beginning of period | $ 96,031 | $ 90,496 | $ 102,642 |
Interest incurred | 113,301 | 87,957 | 82,713 |
Interest amortized to cost of home closings | (93,739) | (82,422) | (94,859) |
Interest capitalized — end of period | $ 115,593 | $ 96,031 | $ 90,496 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Narrative (Detail) | Dec. 31, 2019 |
Equity Method Investments and Joint Ventures [Abstract] | |
Maximum related and unrelated third parties ownership interests | 50.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Summarized Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | |||
Other assets | $ 1,090,573 | $ 1,085,406 | $ 1,124,525 |
Liabilities and owners’ equity: | |||
Debt | 1,940,772 | 2,209,596 | |
Equity Method Investments | |||
Assets: | |||
Real estate inventory | 367,225 | 508,795 | |
Other assets | 132,812 | 125,436 | |
Total assets | 500,037 | 634,231 | |
Liabilities and owners’ equity: | |||
Debt | 178,686 | 176,564 | |
Other liabilities | 20,490 | 16,061 | |
Total liabilities | 199,176 | 192,625 | |
Owners’ equity: | |||
TMHC | 128,759 | 140,541 | |
Others | 172,102 | 301,075 | |
Total owners’ equity | 300,861 | 441,616 | |
Total liabilities and owners’ equity | $ 500,037 | $ 634,241 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities - Summarized Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
TMHC's share in income of unconsolidated entities | $ 9,509 | $ 13,332 | $ 8,846 |
Distributions of earnings from unconsolidated entities | 10,473 | 11,845 | 6,965 |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 277,263 | 381,274 | 330,099 |
Costs and expenses | (242,044) | (328,565) | (296,838) |
Income of unconsolidated entities | 35,219 | 52,709 | 33,261 |
TMHC's share in income of unconsolidated entities | 9,509 | 13,332 | 8,846 |
Distributions of earnings from unconsolidated entities | $ 34,057 | $ 68,847 | $ 11,048 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets, gross carrying amount | $ 14 | $ 14 | |
Finite-lived intangible assets, accumulated amortization | 13.4 | 12.9 | |
Amortization expenses | $ 0.5 | $ 1 | $ 1.1 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||||
Real estate development costs to complete | $ 20,598 | $ 16,591 | ||
Compensation and employee benefits | 95,585 | 73,955 | ||
Self-insurance and warranty reserves | 120,048 | 93,790 | $ 51,010 | $ 50,550 |
Interest payable | 23,178 | 21,385 | ||
Property and sales taxes payable | 12,537 | 14,861 | ||
Other accruals | 53,422 | 46,104 | ||
Total accrued expenses and other liabilities | $ 325,368 | $ 266,686 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities - Summary of Changes in Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of changes in warranty reserves | |||
Reserve — beginning of period | $ 93,790 | $ 51,010 | $ 50,550 |
Additions to reserves | 44,093 | 51,674 | 27,561 |
Costs and claims incurred | (67,554) | (42,433) | (25,698) |
Change in estimates to pre-existing reserves | 49,719 | 33,539 | (1,403) |
Reserve — end of period | 120,048 | 93,790 | $ 51,010 |
Central | |||
Summary of changes in warranty reserves | |||
Reserve — beginning of period | 27,600 | ||
Reserve — end of period | 36,300 | 27,600 | |
Charge for construction defect remediation | $ 43,100 | $ 39,300 |
Estimated Development Liabili_2
Estimated Development Liabilities (Details) lot in Thousands | Oct. 02, 2018lot |
AV Homes, Inc. | |
Business Acquisition [Line Items] | |
Home sites previously sold (more than) | 8 |
Debt - Senior Notes and Other B
Debt - Senior Notes and Other Borrowings (Detail) - USD ($) | Dec. 31, 2019 | Aug. 19, 2019 | Jun. 20, 2019 | Jun. 05, 2019 | Dec. 31, 2018 | Oct. 02, 2018 | Mar. 05, 2014 |
Debt Instrument [Line Items] | |||||||
Principal | $ 1,955,764,000 | $ 2,205,850,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | (14,992,000) | 3,746,000 | |||||
Carrying Value | 1,940,772,000 | 2,209,596,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 0 | 0 | |||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | |||||
Carrying Value | 0 | 0 | |||||
364-Day Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 0 | 200,000,000 | $ 200,000,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | |||||
Carrying Value | 0 | 200,000,000 | |||||
Loans payable and other borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 182,531,000 | 225,497,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | |||||
Carrying Value | 182,531,000 | 225,497,000 | |||||
Mortgage warehouse borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 123,233,000 | 130,353,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | |||||
Carrying Value | 123,233,000 | 130,353,000 | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 1,650,000,000 | 1,650,000,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | (14,992,000) | 3,746,000 | |||||
Carrying Value | $ 1,635,008,000 | 1,653,746,000 | |||||
Senior Notes | 5.25% Senior Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.25% | 5.25% | |||||
Principal | $ 0 | 550,000,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | 0 | (2,695,000) | |||||
Carrying Value | $ 0 | 547,305,000 | |||||
Senior Notes | 6.625% Senior Notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 6.625% | 6.625% | |||||
Principal | $ 0 | 400,000,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 11,656,000 | |||||
Carrying Value | $ 0 | 411,656,000 | |||||
Senior Notes | 5.875% Senior Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.875% | ||||||
Principal | $ 350,000,000 | 350,000,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | (1,867,000) | (2,434,000) | |||||
Carrying Value | $ 348,133,000 | 347,566,000 | |||||
Senior Notes | 5.625% Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.625% | 5.625% | |||||
Principal | $ 350,000,000 | 350,000,000 | |||||
Unamortized Debt Issuance (Costs) / Premium | (2,244,000) | (2,781,000) | |||||
Carrying Value | $ 347,756,000 | 347,219,000 | |||||
Senior Notes | 5.875% Senior Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.875% | 5.875% | |||||
Principal | $ 500,000,000 | 0 | |||||
Unamortized Debt Issuance (Costs) / Premium | (5,808,000) | 0 | |||||
Carrying Value | $ 494,192,000 | 0 | |||||
Senior Notes | 5.75% Senior Notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate of senior notes | 5.75% | ||||||
Principal | $ 450,000,000 | 0 | |||||
Unamortized Debt Issuance (Costs) / Premium | (5,073,000) | 0 | |||||
Carrying Value | $ 444,927,000 | $ 0 |
Debt - 2021 Senior Notes (Detai
Debt - 2021 Senior Notes (Detail) - USD ($) $ in Thousands | Jun. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 2,200 | $ 5,806 | $ 0 | $ 0 |
5.25% Senior Notes due 2021 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 5.25% | 5.25% |
Debt - 2022 Senior Notes (Detai
Debt - 2022 Senior Notes (Detail) - USD ($) $ in Thousands | Aug. 19, 2019 | Jun. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 2,200 | $ 5,806 | $ 0 | $ 0 | |
Senior Notes | 6.625% Senior Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate of senior notes | 6.625% | 6.625% | |||
Loss on extinguishment of debt | $ 3,600 | ||||
Prepayment premium | 13,200 | ||||
Write-off unamortized debt premium | $ 9,600 |
Debt - 2023 Senior Notes (Detai
Debt - 2023 Senior Notes (Detail) - Unsecured Debt - 5.875% Senior Notes due 2023 - USD ($) | Apr. 16, 2015 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $ 350,000,000 | |
Stated interest rate of senior notes | 5.875% | |
Redemption price percentage | 101.00% | 100.00% |
Debt - 2024 Senior Notes (Detai
Debt - 2024 Senior Notes (Detail) - 5.625% Senior Notes due 2024 - Senior Notes - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Mar. 05, 2014 | |
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $ 350,000,000 | |
Stated interest rate of senior notes | 5.625% | 5.625% |
Redemption price percentage | 100.00% |
Debt - 2027 Senior Notes and Re
Debt - 2027 Senior Notes and Redemption of 2021 Senior Notes (Details) - Senior Notes - USD ($) | Jun. 05, 2019 | Dec. 31, 2019 | Jun. 20, 2019 |
5.875% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Senior Notes issued amount | $ 500,000,000 | ||
Stated interest rate of senior notes | 5.875% | 5.875% | |
Redemption price percentage | 100.00% | ||
5.25% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes issued amount | $ 550,000,000 | ||
Stated interest rate of senior notes | 5.25% | 5.25% | |
Redemption price percentage | 100.00% |
Debt - 2028 Senior Notes and Re
Debt - 2028 Senior Notes and Redemption of 2022 Senior Notes (Details) - Senior Notes - 5.75% notes due 2028 - USD ($) $ in Millions | Aug. 01, 2019 | Dec. 31, 2019 | Aug. 19, 2019 |
Debt Instrument [Line Items] | |||
Senior Notes issued amount | $ 450 | $ 400 | |
Stated interest rate of senior notes | 5.75% | ||
Redemption price percentage | 103.313% | 100.00% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Detail) - USD ($) | Feb. 06, 2020 | Dec. 31, 2019 | Feb. 19, 2020 | Feb. 05, 2020 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 230,000,000 | $ 230,000,000 | |||
Outstanding letters of credit | 623,300,000 | 397,200,000 | |||
Revolving credit facility borrowings | 0 | 200,000,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | 600,000,000 | ||||
Unamortized debt issuance costs included in prepaid expenses and other assets, net | 1,800,000 | 2,700,000 | |||
Outstanding letters of credit | 77,700,000 | 62,300,000 | |||
Availability under Revolving Credit Facility | 522,300,000 | 537,700,000 | |||
Revolving credit facility borrowings | 0 | $ 0 | |||
Revolving Credit Facility | Restated Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility borrowings | $ 40,000,000 | ||||
Maximum consecutive days for financial covenant | 5 years | ||||
364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum capitalization ratio | 60.00% | ||||
Minimum consolidated tangible net worth requirement | $ 1,900,000,000 | ||||
Subsequent event | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 600,000,000 | ||||
Debt issuance costs written off | $ 1,700,000 | ||||
Subsequent event | Revolving Credit Facility | Restated Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 800,000,000 | ||||
Maximum capitalization ratio | 60.00% | ||||
Revolving credit facility borrowings | $ 210,000,000 |
Debt - 364 Day Credit Agreement
Debt - 364 Day Credit Agreement (Detail) - USD ($) | Oct. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 02, 2018 |
Debt Instrument [Line Items] | ||||
Principal | $ 1,955,764,000 | $ 2,205,850,000 | ||
364-Day Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 0 | $ 200,000,000 | $ 200,000,000 | |
Repayments of debt | $ 200,500,000 |
Debt - Mortgage Warehouse Borro
Debt - Mortgage Warehouse Borrowings (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 123,233,000 | $ 130,353,000 |
Facility Amount | 230,000,000 | 230,000,000 |
Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 25,074,000 | 29,484,000 |
Facility Amount | $ 45,000,000 | $ 45,000,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 38,481,000 | $ 38,164,000 |
Facility Amount | $ 85,000,000 | $ 85,000,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 59,678,000 | $ 62,705,000 |
Facility Amount | $ 100,000,000 | $ 100,000,000 |
Collateral | Mortgage Loans and Restricted Cash | Mortgage Loans and Restricted Cash |
Restricted cash | $ 1,600,000 | $ 1,600,000 |
LIBOR | Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.75% | 1.75% |
LIBOR | Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.75% | 1.75% |
LIBOR | Secured Debt | Warehouse C | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.70% | 1.95% |
Mortgage loans | ||
Line of Credit Facility [Line Items] | ||
Mortgage loans held for sale | $ 190,900,000 | $ 181,900,000 |
Debt - Loans Payable and Other
Debt - Loans Payable and Other Borrowings (Detail) - Loans Payable and Other Borrowings | Dec. 31, 2019 | Dec. 31, 2018 |
Minimum | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate | 0.00% | 0.00% |
Maximum | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate | 8.00% | 8.00% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments on Total Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | ||
2020 | $ 182,870 | |
2021 | 55,275 | |
2022 | 11,763 | |
2023 | 374,477 | |
2024 | 381,379 | |
Thereafter | 950,000 | |
Total debt | $ 1,955,764 | $ 2,205,850 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($) | Dec. 31, 2019 | Aug. 19, 2019 | Jun. 20, 2019 | Jun. 05, 2019 | Dec. 31, 2018 | Mar. 05, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative assets | $ 2,099,000 | $ 1,838,000 | ||||
Revolving credit facility borrowings | 0 | 200,000,000 | ||||
Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Revolving credit facility borrowings | $ 0 | 0 | ||||
Senior Notes | 5.25% Senior Notes due 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.25% | 5.25% | ||||
Senior Notes | 6.625% Senior Notes due 2022 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 6.625% | 6.625% | ||||
Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.875% | |||||
Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.625% | 5.625% | ||||
Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.875% | 5.875% | ||||
Senior Notes | 5.75% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.75% | |||||
Carrying Value | Significant Other Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | $ 190,880,000 | 181,897,000 | ||||
Derivative assets | 1,932,000 | 1,099,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 0 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | 364-Day Credit Agreement | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 200,000,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 123,233,000 | 130,353,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 182,531,000 | 225,497,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.25% Senior Notes due 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 547,304,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes due 2022 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 411,656,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 348,133,000 | 347,566,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 347,756,000 | 347,219,000 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 494,192,000 | 0 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 444,927,000 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | 190,880,000 | 181,897,000 | ||||
Derivative assets | 1,932,000 | 1,099,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Revolving Credit Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | 364-Day Credit Agreement | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 200,000,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 123,233,000 | 130,353,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 182,531,000 | 225,497,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.25% Senior Notes due 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 544,500,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes due 2022 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 0 | 400,520,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 378,669,000 | 337,750,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 379,453,000 | 332,500,000 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 548,870,000 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | $ 491,913,000 | $ 0 |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Assets Measure on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory held for sale | $ 2,805,506 | $ 2,833,875 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 16,509 | $ 5,545 |
Chicago Operations Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory held for sale | $ 25,100 |
Income Taxes - Schedule of Pro
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 67,358 | $ 37,731 | $ 173,541 |
Foreign | 0 | 25,305 | 5,465 |
Current: | |||
Federal | 54,372 | (10,568) | 73,974 |
State | 9,839 | 4,104 | 9,379 |
Foreign | 0 | 25,482 | 7,169 |
Current tax provision | 64,211 | 19,018 | 90,522 |
Deferred: | |||
Federal | (1,811) | 40,037 | 95,243 |
State | 4,958 | 4,158 | (5,055) |
Foreign | 0 | (177) | (1,704) |
Deferred tax provision | 3,147 | 44,018 | 88,484 |
Total income tax provision | $ 67,358 | $ 63,036 | $ 179,006 |
Income Taxes - Schedule of Com
Income Taxes - Schedule of Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 322,272 | $ 271,017 | $ 323,359 | ||||||||
Foreign | 0 | 2,499 | 32,297 | ||||||||
Income before income taxes | $ 53,760 | $ 90,421 | $ 110,019 | $ 68,072 | $ 34,128 | $ 100,865 | $ 79,285 | $ 59,238 | $ 322,272 | $ 273,516 | $ 355,656 |
Income Taxes - Schedule of Rec
Income Taxes - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes (net of federal benefit) | 3.90% | 4.40% | 3.20% |
Foreign income taxed at a different rate | 0.00% | 0.50% | (0.80%) |
Domestic manufacturing deduction | 0.00% | 0.00% | (2.10%) |
Uncertain tax positions | (0.20%) | (2.90%) | 1.10% |
State net operating loss adjustment | 0.00% | 0.00% | (2.10%) |
Deferred tax adjustments | 0.20% | 0.00% | (1.10%) |
Energy tax credits | (4.60%) | (1.70%) | (0.90%) |
Subpart F dividend | 0.00% | 1.70% | 0.00% |
Corporate reorganization/Canada unwind | 0.00% | 9.30% | 0.00% |
Foreign tax credit | 0.00% | (2.40%) | 0.00% |
Disallowed compensation expense | 0.30% | (0.10%) | 0.20% |
Tax reform | 0 | (0.069) | 0.171 |
Other | 0.30% | 0.10% | 0.70% |
Effective Rate | 20.90% | 23.00% | 50.30% |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 35.00% |
Deferred tax assets, valuation allowance | $ 35,340 | $ 35,340 | |
Unrecognized tax benefits that would impact effective tax rate | 4,900 | ||
Recognized potential penalties and interest expense on uncertain tax positions | 600 | $ 700 | $ 1,000 |
Federal NOL Carryforwards | |||
Income Tax [Line Items] | |||
NOL carryforwards | $ 232,600 |
Income Taxes - Summary of Comp
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Real estate inventory | $ 22,232 | $ 24,804 |
Accruals and reserves | 39,029 | 28,556 |
Other | 15,827 | 20,612 |
Net operating losses | 69,815 | 77,558 |
Capital loss carryforward | 35,340 | 35,340 |
Total deferred tax assets | 182,243 | 186,870 |
Deferred tax liabilities: | ||
Real estate inventory, intangibles, other | (6,437) | (6,454) |
Deferred tax liability, foreign exchange | 0 | 0 |
Valuation allowance | (35,340) | (35,340) |
Total net deferred tax assets | $ 140,466 | $ 145,076 |
Income Taxes - Schedule of R_2
Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits | |||
Beginning of the period | $ 7,391 | $ 12,936 | $ 7,773 |
Increases of current year items | 0 | 0 | 0 |
Increases from current year acquisitions | 0 | 4,216 | 0 |
Increases of prior year items | 15 | 475 | 5,163 |
Settlement with tax authorities | (977) | (9,818) | 0 |
Decreased for tax positions of prior years | (76) | 0 | 0 |
Decreased due to statute of limitations | (195) | (418) | 0 |
End of the period | $ 6,158 | $ 7,391 | $ 12,936 |
Stockholders' Equity - Narrati
Stockholders' Equity - Narrative (Detail) - USD ($) | Mar. 11, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | May 29, 2019 |
Equity [Abstract] | ||||
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Preferred stock, shares authorized | 50,000,000 | |||
Preferred stock, par value (usd per share) | $ 0.00001 | |||
Stock repurchase program, increase authorized amount | $ 100,000,000 | |||
Repurchase of common stock (shares) | 8,389,348 | 8,504,827 |
Stockholders' Equity - Treasur
Stockholders' Equity - Treasury Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | |||
Amount available for repurchase — beginning of period | $ 57,437 | $ 95,902 | |
Additional amount authorized for repurchase | 100,000 | 100,000 | |
Amount repurchased | (157,437) | (138,465) | $ (4,098) |
Amount available for repurchase — end of period | $ 0 | $ 57,437 | $ 95,902 |
Stock Based Compensation - Nar
Stock Based Compensation - Narrative (Detail) $ / shares in Units, $ in Millions | Dec. 31, 2019$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate unamortized outstanding stock based compensation | $ | $ 20.8 | $ 20.4 | $ 19.8 | |
Aggregate intrinsic value exercised based on market price (usd per share) | $ / shares | $ 21.86 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
New TMM Unit | Conversion of TMM Holdings Class M Units Into TPG and Oaktree Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock conversion ratio | 1 | |||
Class A | New TMM Unit | Conversion of TMM Holdings Class M Units Into TPG and Oaktree Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock conversion ratio | 1 | |||
2013 Omnibus Equity Award Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant (in shares) | shares | 6,971,796 | 6,971,796 |
Stock Based Compensation - Sum
Stock Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 14,763 | $ 21,124 | $ 11,587 |
New TMM Units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | 0 | 0 | 596 |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | 3,774 | 3,994 | 4,504 |
Non-performance Restricted Stock Units (RSUs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 10,989 | 17,130 | $ 6,487 |
AV Homes, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Settlement of awards | $ 6,500 |
Stock Based Compensation - S_2
Stock Based Compensation - Summary of Stock Option Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options, Number of Options | |||
Outstanding, Beginning balance (in shares) | 3,239,995 | 2,854,213 | 2,431,347 |
Granted (in shares) | 997,924 | 726,473 | 792,054 |
Exercised (in shares) | (765,781) | (118,992) | (288,808) |
Cancelled (in shares) | (132,894) | (221,699) | (80,380) |
Outstanding, Ending balance (in shares) | 3,339,244 | 3,239,995 | 2,854,213 |
Options exercisable (in shares) | 1,400,974 | 1,537,977 | 906,583 |
Stock Options, Weighted Average Exercise Price | |||
Outstanding, Beginning balance (usd per share) | $ 18.87 | $ 17.50 | $ 17.09 |
Granted (usd per share) | 18.15 | 23.86 | 19.06 |
Exercised (usd per share) | 17.29 | 15.85 | 18.13 |
Cancelled (usd per share) | 19.86 | 18.71 | 18.64 |
Outstanding, Ending balance (usd per share) | 18.98 | 18.87 | 17.50 |
Weighted Average Exercise Price, options exercisable (usd per share) | $ 19.09 | $ 18.80 | $ 19.62 |
Unamortized value of unvested stock options (net of estimated forfeitures) (usd) | $ 6,759 | $ 6,470 | $ 6,749 |
Weighted-average period that expense is expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 4 months 24 days |
Weighted-average remaining contractual life for options outstanding | 6 years 10 months 24 days | 6 years 10 months 24 days | 7 years 6 months |
Weighted-average remaining contractual life for options exercisable | 5 years 1 month 6 days | 5 years 7 months 6 days | 6 years 1 month 6 days |
Stock Based Compensation - S_3
Stock Based Compensation - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 19.33% | 21.31% | 24.37% |
Risk-free interest rate | 2.49% | 2.68% | 2.12% |
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average fair value of options granted during the period (usd per share) | $ 4.69 | $ 6.68 | $ 5.56 |
Stock Based Compensation - S_4
Stock Based Compensation - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Payment Arrangement [Abstract] | |||
Aggregate intrinsic value of options outstanding | $ 10,935 | $ 3,432 | $ 19,891 |
Aggregate intrinsic value of options exercisable | $ 4,283 | $ 1,540 | $ 4,400 |
Stock Based Compensation - S_5
Stock Based Compensation - Summary of Activity of Performance Restricted Stock Units (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PRSU Activity, Number of Awards | |||
Weighted-average period that expense is expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 4 months 24 days |
Performance Restricted Stock Units | |||
PRSU Activity, Number of Awards | |||
Beginning balance (in shares) | 1,155,723 | 1,190,740 | 824,217 |
Granted (in shares) | 416,874 | 338,472 | 392,404 |
Vested (in shares) | (511,984) | (61,343) | 0 |
Forfeited (in shares) | (61,974) | (312,146) | (25,881) |
Ending balance (in shares) | 998,639 | 1,155,723 | 1,190,740 |
PRSU expense recognized during the year | $ 5,866 | $ 5,779 | $ 3,257 |
Unamortized value of PRSUs | $ 7,912 | $ 7,501 | $ 6,756 |
Weighted-average period that expense is expected to be recognized | 1 year 9 months 18 days | 1 year 9 months 18 days | 1 year 9 months 18 days |
Stock Based Compensation - S_6
Stock Based Compensation - Summary of Activity of Restricted Stock Units (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Weighted-average period that expense is expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 4 months 24 days |
Non-performance Restricted Stock Units (RSUs) | |||
RSU Activity, Number of Awards | |||
Beginning balance (in shares) | 769,641 | 698,819 | 534,484 |
Granted (in shares) | 299,481 | 333,397 | 257,182 |
Vested (in shares) | (320,701) | (181,904) | (75,315) |
Forfeited (in shares) | (38,667) | (80,671) | (17,532) |
Ending balance (in shares) | 709,754 | 769,641 | 698,819 |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Outstanding, Beginning balance (usd per share) | $ 16.73 | $ 15.65 | $ 14.01 |
Granted (usd per share) | 18.42 | 20.35 | 19.48 |
Vested (usd per share) | 15.25 | 13.01 | 17.43 |
Forfeited (usd per share) | 16.91 | 16.90 | 14.10 |
Outstanding, Ending balance (usd per share) | $ 18.11 | $ 16.73 | $ 15.65 |
RSU expense recognized during the year | $ 5,123 | $ 4,854 | $ 3,148 |
Unamortized value of PRSUs | $ 6,176 | $ 6,435 | $ 6,261 |
Weighted-average period that expense is expected to be recognized | 1 year 8 months 12 days | 1 year 10 months 24 days | 2 years 6 months |
Stock Based Compensation - S_7
Stock Based Compensation - Summary of Stock Option Activity (Detail) - New TMM Units - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Awards | ||
Beginning balance (in shares) | 883,921 | 1,146,357 |
Exchanges (in shares) | (883,921) | (260,389) |
Forfeited (in shares) | 0 | (2,047) |
Ending balance (in shares) | 0 | 883,921 |
Unvested New TMM Units included in ending balance (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 5.24 | $ 5.58 |
Exchanges (usd per share) | 5.24 | 6.72 |
Forfeited (usd per share) | 0 | 8.52 |
Ending balance (usd per share) | 0 | 5.24 |
Unvested New TMM Units included in ending balance (usd per share) | $ 0 | $ 0 |
- Narrative (Details)
- Narrative (Details) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)alot | |
Related Party Transaction [Line Items] | |||
Stock repurchase | $ 43,700 | $ 730,964 | $ 948,884 |
TPG Advisors VI, Inc. | |||
Related Party Transaction [Line Items] | |||
Stock repurchase (in shares) | shares | 2.1 | ||
Affiliates | |||
Related Party Transaction [Line Items] | |||
Number of acres purchased | a | 112 | ||
Purchase price for land acquired | $ 10,500 | ||
Contract To Purchase Home Lots | Company Owned and Controlled by a Member of Board of Directors | |||
Related Party Transaction [Line Items] | |||
Number of home sites acquired | lot | 140 | ||
Purchase price paid for home lots | $ 30,000 |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Shares Repurchased (Details) - $ / shares shares in Thousands | Jan. 17, 2018 | Jan. 08, 2018 | Nov. 13, 2017 | Jun. 27, 2017 | May 05, 2017 | Mar. 27, 2017 | Feb. 06, 2017 |
Related Party Transaction [Line Items] | |||||||
Number of shares | 19,207 | 11,000 | 10,000 | 10,000 | 10,000 | 10,000 | 11,500 |
Net purchase price per share (usd per share) | $ 27.1400 | $ 26.0500 | $ 22.9500 | $ 23.3000 | $ 23.1200 | $ 20.7800 | $ 18.2875 |
Class A | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares offered for sale | 17,700 | ||||||
Class A | TPG | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares offered for sale | 1,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period | $ 2,418,735 | $ 2,346,545 | $ 2,160,202 |
Other comprehensive income (loss) before reclassifications | (1,117) | (81) | 21 |
Foreign currency translation | 20,050 | ||
Other comprehensive income (loss), net of tax | (1,117) | 19,969 | 21 |
Gross amounts reclassified within accumulated other comprehensive income | 0 | 0 | |
Balance, end of period | 2,545,712 | 2,418,735 | 2,346,545 |
Total Post-Retirement Benefits Adjustments | |||
Components of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period | 2,001 | 2,082 | 2,061 |
Other comprehensive income (loss) before reclassifications | (1,117) | (81) | 21 |
Foreign currency translation | |||
Other comprehensive income (loss), net of tax | (1,117) | (81) | 21 |
Gross amounts reclassified within accumulated other comprehensive income | 0 | 0 | |
Balance, end of period | 884 | 2,001 | 2,082 |
Foreign Currency Translation Adjustments | |||
Components of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period | 0 | (45,205) | (79,927) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Foreign currency translation | 20,050 | ||
Other comprehensive income (loss), net of tax | 0 | 20,050 | 0 |
Gross amounts reclassified within accumulated other comprehensive income | 25,155 | 34,722 | |
Balance, end of period | 0 | 0 | (45,205) |
Non-controlling Interest in Principal Equityholders | |||
Components of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period | 0 | 25,155 | 59,877 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Foreign currency translation | |||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 |
Gross amounts reclassified within accumulated other comprehensive income | (25,155) | (34,722) | |
Balance, end of period | 0 | 0 | 25,155 |
Total | |||
Components of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period | 2,001 | (17,968) | (17,989) |
Other comprehensive income (loss) before reclassifications | (81) | ||
Foreign currency translation | 20,050 | ||
Other comprehensive income (loss), net of tax | (1,117) | 21 | |
Balance, end of period | $ 884 | $ 2,001 | $ (17,968) |
Operating and Reporting Segme_3
Operating and Reporting Segments - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | $ 1,466,436 | $ 1,105,105 | $ 1,265,426 | $ 925,092 | $ 1,457,853 | $ 1,036,379 | $ 980,828 | $ 752,333 | $ 4,762,059 | $ 4,227,393 | $ 3,885,290 |
Gross margin | $ 207,202 | $ 211,074 | $ 233,774 | $ 172,040 | $ 217,381 | $ 198,999 | $ 178,711 | $ 143,102 | 824,090 | 738,193 | 738,929 |
Selling, general and administrative expense | (490,271) | (416,943) | (390,440) | ||||||||
Equity in income of unconsolidated entities | 9,509 | 13,332 | 8,846 | ||||||||
Interest and other expense, net | (21,056) | (61,066) | (1,679) | ||||||||
Income before income taxes | 322,272 | 273,516 | 355,656 | ||||||||
Corporate and Unallocated | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Gross margin | 0 | (1) | 0 | ||||||||
Selling, general and administrative expense | (104,772) | (90,988) | (83,054) | ||||||||
Equity in income of unconsolidated entities | 141 | 226 | 0 | ||||||||
Interest and other expense, net | (11,214) | (51,666) | (1,535) | ||||||||
Income before income taxes | (115,845) | (142,429) | (84,589) | ||||||||
East | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 1,950,742 | 1,666,423 | 1,383,864 | ||||||||
Gross margin | 307,893 | 281,306 | 284,722 | ||||||||
Selling, general and administrative expense | (168,928) | (138,720) | (122,218) | ||||||||
Equity in income of unconsolidated entities | 0 | 464 | 213 | ||||||||
Interest and other expense, net | (5,545) | (5,615) | (314) | ||||||||
Income before income taxes | 133,420 | 137,435 | 162,403 | ||||||||
Central | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 1,334,389 | 1,139,622 | 1,112,984 | ||||||||
Gross margin | 187,957 | 161,323 | 206,386 | ||||||||
Selling, general and administrative expense | (121,962) | (104,295) | (105,945) | ||||||||
Equity in income of unconsolidated entities | (215) | 876 | 1,246 | ||||||||
Interest and other expense, net | (1,024) | (3,259) | 360 | ||||||||
Income before income taxes | 64,756 | 54,645 | 102,047 | ||||||||
West | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 1,384,113 | 1,353,590 | 1,319,306 | ||||||||
Gross margin | 286,511 | 269,276 | 220,337 | ||||||||
Selling, general and administrative expense | (94,609) | (82,940) | (79,223) | ||||||||
Equity in income of unconsolidated entities | 3,562 | 6,450 | 1,422 | ||||||||
Interest and other expense, net | (3,273) | (526) | (190) | ||||||||
Income before income taxes | 192,191 | 192,260 | 142,346 | ||||||||
Financial Services | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenues | 92,815 | 67,758 | 69,136 | ||||||||
Gross margin | 41,729 | 26,289 | 27,484 | ||||||||
Selling, general and administrative expense | 0 | 0 | 0 | ||||||||
Equity in income of unconsolidated entities | 6,021 | 5,316 | 5,965 | ||||||||
Interest and other expense, net | 0 | 0 | 0 | ||||||||
Income before income taxes | $ 47,750 | $ 31,605 | $ 33,449 |
Operating and Reporting Segme_4
Operating and Reporting Segments - Assets from Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | $ 4,026,354 | $ 4,038,494 | $ 3,009,004 |
Investments in unconsolidated entities | 128,759 | 140,541 | 192,364 |
Other assets | 1,090,573 | 1,085,406 | 1,124,525 |
Total assets | 5,245,686 | 5,264,441 | 4,325,893 |
Corporate and Unallocated | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 242 | 357 | 0 |
Other assets | 485,252 | 513,156 | 635,046 |
Total assets | 485,494 | 513,513 | 635,046 |
East | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,841,904 | 1,862,756 | 1,150,918 |
Investments in unconsolidated entities | 0 | 0 | 29,316 |
Other assets | 165,777 | 162,339 | 85,753 |
Total assets | 2,007,681 | 2,025,095 | 1,265,987 |
Central | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 965,039 | 1,011,659 | 818,431 |
Investments in unconsolidated entities | 37,506 | 35,476 | 32,874 |
Other assets | 121,724 | 118,187 | 124,593 |
Total assets | 1,124,269 | 1,165,322 | 975,898 |
West | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,219,411 | 1,164,079 | 1,039,655 |
Investments in unconsolidated entities | 86,996 | 100,693 | 126,559 |
Other assets | 60,060 | 55,433 | 53,492 |
Total assets | 1,366,467 | 1,320,205 | 1,219,706 |
Financial Services | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 4,015 | 4,015 | 3,615 |
Other assets | 257,760 | 236,291 | 225,641 |
Total assets | $ 261,775 | $ 240,306 | $ 229,256 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 1,466,436 | $ 1,105,105 | $ 1,265,426 | $ 925,092 | $ 1,457,853 | $ 1,036,379 | $ 980,828 | $ 752,333 | $ 4,762,059 | $ 4,227,393 | $ 3,885,290 |
Gross margin | 207,202 | 211,074 | 233,774 | 172,040 | 217,381 | 198,999 | 178,711 | 143,102 | 824,090 | 738,193 | 738,929 |
Income before income taxes | 53,760 | 90,421 | 110,019 | 68,072 | 34,128 | 100,865 | 79,285 | 59,238 | 322,272 | 273,516 | 355,656 |
Net income before allocation to non-controlling interests | 54,709 | 67,036 | 81,888 | 51,281 | 9,215 | 94,441 | 59,292 | 47,532 | |||
Net income available to Taylor Morrison Home Corporation | $ 54,658 | $ 67,012 | $ 81,851 | $ 51,131 | $ 9,055 | $ 93,568 | $ 58,678 | $ 44,933 | $ 254,652 | $ 206,364 | $ 91,220 |
Basic earnings per share (usd per share) | $ 0.52 | $ 0.64 | $ 0.77 | $ 0.46 | $ 0.08 | $ 0.84 | $ 0.53 | $ 0.42 | $ 2.38 | $ 1.85 | $ 1.47 |
Diluted earnings per share (usd per share) | $ 0.51 | $ 0.63 | $ 0.76 | $ 0.46 | $ 0.08 | $ 0.83 | $ 0.52 | $ 0.41 | $ 2.35 | $ 1.83 | $ 1.47 |
Commitments and Contingencies
Commitments and Contingencies - Narrative (Detail) $ in Millions | Dec. 31, 2019USD ($)Lot | Dec. 31, 2018USD ($)Lot |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 623.3 | $ 397.2 |
Right to purchase lots of land option (in lots) | Lot | 4,263 | 4,781 |
Aggregate purchase price | $ 289.7 | $ 393.8 |
Land deposits | 39.8 | 57.9 |
Legal accruals | $ 12.7 | $ 5.7 |
Mortgage Hedging Activities (De
Mortgage Hedging Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Fair Value | $ 1,932 | $ 1,099 |
Total commitments to originate loans | 94,500 | 83,400 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 2,099 | 1,838 |
Notional Amount | 86,434 | 75,090 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | (167) | (739) |
Notional Amount | $ 158,000 | $ 118,000 |
Minimum | ||
Derivative [Line Items] | ||
Derivative term | 30 days | |
Maximum | ||
Derivative [Line Items] | ||
Derivative term | 60 days |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Millions | Feb. 10, 2020 | Feb. 06, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 19, 2020 | Feb. 05, 2020 |
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity on line of credit | $ 230,000,000 | $ 230,000,000 | ||||||
Revolving credit facility borrowings | 0 | 200,000,000 | ||||||
Payments to acquire business | 0 | 192,886,000 | $ 0 | |||||
Repayments on senior notes | 963,252,000 | 0 | 0 | |||||
Aggregate principal amount outstanding | 1,635,008,000 | 1,653,746,000 | ||||||
Proceeds from issuance of notes | 950,000,000 | 0 | $ 0 | |||||
7.00% Senior Notes due 2022 | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments on senior notes | $ 50,000,000 | |||||||
Stated interest rate of senior notes | 7.00% | |||||||
Taylor Morrison 2023 Notes | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 6.00% | |||||||
Senior Notes issued amount | $ 324,004,000 | |||||||
Taylor Morrison 2025 Notes | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 5.875% | |||||||
Senior Notes issued amount | $ 428,410,000 | |||||||
Taylor Morrison 2027 Notes | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 6.625% | |||||||
Senior Notes issued amount | $ 290,400,000 | |||||||
California Lyon Senior Notes Due 2023 | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 6.00% | |||||||
Aggregate principal amount outstanding | $ 25,996,000 | |||||||
California Lyon Senior Notes Due 2025 | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 5.875% | |||||||
Aggregate principal amount outstanding | $ 8,476,000 | |||||||
California Lyon Senior Notes Due 2027 | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Stated interest rate of senior notes | 6.625% | |||||||
Aggregate principal amount outstanding | $ 9,600,000 | |||||||
Revolving Credit Facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity on line of credit | 600,000,000 | |||||||
Revolving credit facility borrowings | 0 | $ 0 | ||||||
Revolving Credit Facility | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity on line of credit | $ 600,000,000 | |||||||
Debt issuance costs written off | $ 1,700,000 | |||||||
Revolving Credit Facility | Restated Revolving Credit Facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving credit facility borrowings | 40,000,000 | |||||||
Revolving Credit Facility | Restated Revolving Credit Facility | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity on line of credit | $ 800,000,000 | |||||||
Maximum capitalization ratio | 60.00% | |||||||
Minimum consolidated tangible net worth requirement | $ 1,000,000,000 | |||||||
Revolving credit facility borrowings | $ 210,000,000 | |||||||
William Lyon Homes | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Payments to acquire business | $ 95,700,000 | |||||||
Business combination, shares issued | 31.2 | |||||||
Acquired senior notes | $ 1,100,000,000 | |||||||
Senior Notes | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from issuance of notes | $ 1,100,000,000 | |||||||
Chicago Operations Assets | ||||||||
Subsequent Event [Line Items] | ||||||||
Loss on sale of operations | $ 13,200,000 | |||||||
Chicago Operations Assets | Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from sale of operations | $ 16,000,000 |
Uncategorized Items - tmhc-1231
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,501,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,501,000 |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Liability | us-gaap_OperatingLeaseLiability | 30,331,000 |
Operating Lease, Right-of-Use Asset | us-gaap_OperatingLeaseRightOfUseAsset | $ 27,384,000 |