Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-35873 | ||
Entity Registrant Name | TAYLOR MORRISON HOME CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2026677 | ||
Entity Address, Address Line One | 4900 N. Scottsdale Road | ||
Entity Address, Address Line Two | Suite 2000 | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85251 | ||
City Area Code | 480 | ||
Local Phone Number | 840-8100 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value | ||
Trading Symbol | TMHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,470,892,365 | ||
Entity Common Stock, Shares Outstanding | 128,829,090 | ||
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 2021 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. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001562476 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 532,843 | $ 326,437 |
Restricted cash | 1,266 | 2,135 |
Total cash, cash equivalents, and restricted cash | 534,109 | 328,572 |
Real estate inventory: | ||
Owned inventory | 5,209,653 | 3,967,359 |
Consolidated real estate not owned | 122,773 | 19,185 |
Total real estate inventory | 5,332,426 | 3,986,544 |
Land deposits | 125,625 | 39,810 |
Derivative assets | 5,294 | 2,099 |
Mortgage loans held for sale | 201,177 | 190,880 |
Lease right of use assets | 73,222 | 36,663 |
Prepaid expenses and other assets, net | 242,744 | 86,152 |
Other receivables, net | 96,241 | 70,447 |
Investments in unconsolidated entities | 127,955 | 128,759 |
Deferred tax assets, net | 238,078 | 140,466 |
Property and equipment, net | 97,927 | 85,866 |
Goodwill | 663,197 | 149,428 |
Total assets | 7,737,995 | 5,245,686 |
Liabilities | ||
Accounts payable | 215,047 | 164,580 |
Accrued expenses and other liabilities | 430,067 | 325,368 |
Lease liabilities | 83,240 | 42,317 |
Income taxes payable | 12,841 | 3,719 |
Customer deposits | 311,257 | 167,328 |
Estimated development liability | 40,625 | 36,705 |
Senior notes, net | 2,452,365 | 1,635,008 |
Loans payable and other borrowings | 348,741 | 182,531 |
Revolving credit facility borrowings | 0 | 0 |
Mortgage warehouse borrowings | 127,289 | 123,233 |
Liabilities attributable to consolidated real estate not owned | 122,773 | 19,185 |
Total liabilities | 4,144,245 | 2,699,974 |
COMMITMENTS AND CONTINGENCIES (Note 17) | ||
Stockholders’ Equity | ||
Common Stock, Value, Issued | 1 | 1 |
Additional paid-in capital | 2,926,773 | 2,097,995 |
Treasury Stock, Value | (446,856) | (343,524) |
Retained Earnings | 1,025,789 | 782,350 |
Accumulated other comprehensive (loss)/income | (1,166) | 884 |
Total stockholders' equity attributable to TMHC | 3,504,541 | 2,537,706 |
Non-controlling interests — joint ventures | 89,209 | 8,006 |
Total stockholders’ equity | 3,593,750 | 2,545,712 |
Total liabilities and stockholders’ equity | $ 7,737,995 | $ 5,245,686 |
Operating lease, liability, statement of financial position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 155,361,670 | 125,794,719 |
Common Stock, Shares, Outstanding | 129,476,914 | 105,851,285 |
Treasury Stock, Shares | 25,884,756 | 19,943,432 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenue | $ 6,129,320 | $ 4,762,059 | $ 4,227,393 |
Total cost of revenues | 5,085,101 | 3,937,969 | 3,489,200 |
Gross margin | 1,044,219 | 824,090 | 738,193 |
Sales, commissions and other marketing costs | 377,496 | 320,420 | 278,455 |
General and administrative expenses | 194,879 | 169,851 | 138,488 |
Equity in income of unconsolidated entities | (11,176) | (9,509) | (13,332) |
Interest income, net | (1,606) | (2,673) | (1,639) |
Other expense, net | 23,092 | 7,226 | 11,816 |
Transaction and corporate reorganization expenses | 10,697 | 50,889 | |
Loss on extinguishment of debt, net | 10,247 | 5,806 | 0 |
Income before income taxes | 324,117 | 322,272 | 273,516 |
Income tax provision | 74,590 | 67,358 | 63,036 |
Net income before allocation to non-controlling interests | 249,527 | 254,914 | 210,480 |
Net income attributable to non-controlling interests — joint ventures | (6,088) | (262) | (533) |
Net income before allocation to non-controlling interests — Former Principal Equityholders | 243,439 | 254,652 | 209,947 |
Net income attributable to non-controlling interests — Former Principal Equityholders | 0 | 0 | (3,583) |
Net income available to Taylor Morrison Home Corporation | $ 243,439 | $ 254,652 | $ 206,364 |
Earnings per common share | |||
Basic (usd per share) | $ 1.90 | $ 2.38 | $ 1.85 |
Diluted (usd per share) | $ 1.88 | $ 2.35 | $ 1.83 |
Weighted average number of shares of common stock: | |||
Basic (in shares) | 127,812 | 106,997 | 111,743 |
Diluted (in shares) | 129,170 | 108,289 | 115,119 |
Home closings | |||
Total revenue | $ 5,863,652 | $ 4,623,484 | $ 4,115,216 |
Total cost of revenues | 4,887,757 | 3,836,857 | 3,410,853 |
Land closings | |||
Total revenue | 65,269 | 27,081 | 39,901 |
Total cost of revenues | 64,432 | 32,871 | 33,458 |
Financial services | |||
Total revenue | 155,827 | 92,815 | 67,758 |
Total cost of revenues | 88,910 | 51,086 | 41,469 |
Amenity and other | |||
Total revenue | 44,572 | 18,679 | 4,518 |
Total cost of revenues | $ 44,002 | $ 17,155 | $ 3,420 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before non-controlling interests, net of tax | $ 249,527 | $ 254,914 | $ 210,480 |
Post-retirement benefits adjustments, net of tax | (2,050) | (1,117) | (81) |
Comprehensive income | 247,477 | 253,797 | 210,399 |
Comprehensive income available to Taylor Morrison Home Corporation | 241,389 | 253,535 | 206,283 |
Joint Ventures | |||
Comprehensive income attributable to non-controlling interests | (6,088) | (262) | (533) |
Principal Equityholders | |||
Comprehensive income attributable to non-controlling interests | $ 0 | $ 0 | $ (3,583) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | 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, 2017 | 82,399,996 | 37,179,616 | 3,049,257 | |||||||
Balance, beginning 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 (loss)/income | 210,480 | 206,364 | 533 | 3,583 | ||||||
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 | 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) | [1] | 409,681 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (1,572) | (1,572) | |||||||
Exchange of (repurchase) of B shares from secondary (shares) | 28,706,924 | |||||||||
Exchange of (repurchase) of B shares from secondary | 729,954 | 729,954 | ||||||||
Stock repurchase (in shares) | (28,706,924) | |||||||||
Repurchase of New TMM Units from Former Principal Equityholders | (730,964) | (730,964) | ||||||||
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) | ||||||||
Repurchase of common stock | (138,465) | $ (138,465) | ||||||||
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 | 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 | |
Balance, end of period (Accounting Standards Update 2014-09) at Dec. 31, 2018 | 1,501 | 1,501 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss)/income | 254,914 | 254,652 | 262 | |||||||
Other comprehensive (loss) income | (1,117) | (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) | [1] | 508,996 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | $ (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) | ||||||||
Stock based compensation | 14,763 | 14,763 | ||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 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 | 19,943,432 | ||||||||
Balance, end of period at Dec. 31, 2019 | 2,545,712 | $ 1 | 2,097,995 | $ (343,524) | 782,350 | 884 | 8,006 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss)/income | 249,527 | 243,439 | 6,088 | |||||||
Other comprehensive (loss) income | (2,050) | (2,050) | ||||||||
Exercise of stock options (shares) | 551,845 | |||||||||
Exercise of stock options | 9,579 | 9,579 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax (shares) | [1] | 687,818 | ||||||||
Issuance of restricted stock units, net of shares withheld for tax | [1] | (9,228) | ||||||||
Issuance of Class A common stock in connection with business acquisition (shares) | 28,327,290 | |||||||||
Issuance of Class A common stock in connection with business acquisition | $ 787,877 | 787,877 | ||||||||
Repurchase of common stock (shares) | (5,941,324) | (5,941,324) | (5,941,324) | |||||||
Repurchase of common stock | $ (103,332) | $ (103,332) | ||||||||
Stock based compensation | 27,023 | 27,023 | ||||||||
Changes in non-controlling interest in consolidated joint ventures | 122,053 | 122,053 | ||||||||
Stock compensation expense related to WLH acquisition | 5,106 | 5,106 | ||||||||
WLH equity award accelerations due to change in control | 8,421 | 8,421 | ||||||||
Distributions to non-controlling interests of consolidated joint ventures | (46,938) | (46,938) | ||||||||
Balance, end of period (shares) at Dec. 31, 2020 | 129,476,914 | 25,884,756 | ||||||||
Balance, end of period at Dec. 31, 2020 | $ 3,593,750 | $ 1 | $ 2,926,773 | $ (446,856) | $ 1,025,789 | $ (1,166) | $ 89,209 | |||
[1] | Dollar amount represents the value of shares withheld for taxes. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income before allocation to non-controlling interests | $ 249,527 | $ 254,914 | $ 210,480 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in income of unconsolidated entities | (11,176) | (9,509) | (13,332) |
Stock compensation expense | 32,129 | 14,763 | 21,124 |
Distributions of earnings from unconsolidated entities | 11,564 | 10,473 | 11,845 |
Loss on extinguishment of debt | 10,247 | 5,806 | 0 |
Depreciation and amortization | 37,336 | 31,424 | 26,391 |
Lease expense | 16,785 | 9,087 | 0 |
Debt issuance costs/premium amortization | (1,852) | 1,173 | 2,369 |
Realized loss on foreign currency translation | 0 | 0 | 20,050 |
Contingent consideration | 0 | 0 | 146 |
Deferred income taxes | 50,582 | 2,655 | 44,472 |
Inventory impairment charges | 9,611 | 9,384 | 9,631 |
Land held for sale impairments | 4,347 | 9,942 | |
Changes in operating assets and liabilities: | |||
Real estate inventory and land deposits | 535,238 | 990 | (248,215) |
Mortgages held for sale, prepaid expenses and other assets | (35,878) | (26,614) | (27,256) |
Customer deposits | 132,446 | 1,896 | 18,773 |
Accounts payable, estimated development liability, and accrued expenses and other liabilities | 62,329 | 73,113 | 63,641 |
Income taxes payable | 20,047 | 3,719 | (4,525) |
Net cash provided by operating activities | 1,123,282 | 393,216 | 135,594 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (37,760) | (30,118) | (20,458) |
Payments for business acquisitions, net of cash acquired | (279,048) | 0 | (192,886) |
Distributions of capital from unconsolidated entities | 40,062 | 23,584 | 57,002 |
Investments of capital into unconsolidated entities | (36,058) | (12,766) | (3,376) |
Net cash used in investing activities | (312,804) | (19,300) | (159,718) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase in loans payable and other borrowings | 93,440 | 26,740 | 29,937 |
Repayments of loans payable and other borrowings | (141,103) | (30,383) | (25,319) |
Borrowings on revolving credit facility | 830,000 | 315,000 | 350,000 |
Payments on revolving credit facility | (830,000) | (515,000) | (150,000) |
Borrowings on mortgage warehouse | 2,448,980 | 1,145,799 | 863,109 |
Repayment on mortgage warehouse | (2,489,867) | (1,152,919) | (851,578) |
Proceeds from issuance of senior notes | 500,000 | 950,000 | 0 |
Repayments on senior notes | (861,775) | (963,252) | 0 |
Payment of deferred financing costs | (6,351) | (11,603) | 0 |
Payment of contingent consideration | 0 | 0 | (265) |
Repayment of convertible notes | 0 | 0 | (95,816) |
Proceeds from stock option exercises | 9,579 | 13,238 | 1,887 |
Payment of principle portion of finance lease | (1,325) | 0 | 0 |
Proceeds from issuance of shares from public offerings | 0 | 0 | 767,115 |
Repurchase of common stock, net | (103,332) | (157,439) | (138,465) |
Payment of taxes related to net share settlement of equity awards | (9,228) | (1,585) | (1,572) |
(Distributions)/Contributions to non-controlling interests of consolidated joint ventures, net | (8,291) | 4,201 | 1,347 |
Payment to acquire non-controlling interests | (35,668) | 0 | 0 |
Net cash used in financing activities | (604,941) | (377,203) | (219,520) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | 205,537 | (3,287) | (243,644) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 328,572 | 331,859 | 575,503 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 534,109 | 328,572 | 331,859 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes paid, net | (3,357) | (20,129) | (63,484) |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Change in loans payable issued to sellers in connection with land purchase contracts | 193,308 | 94,186 | 146,427 |
Change in inventory not owned | (86,393) | 3,926 | 12,732 |
Change in prepaid expenses and other assets, net due to adoption of ASU 2014-09 | 0 | 0 | (32,004) |
Change in property and equipment, net due to adoption of ASU 2014-09 | 0 | 0 | 32,004 |
Operating Lease, Right-of-Use Asset | 0 | 27,384 | 0 |
Change in Operating lease right of use liabilities due to adoption of ASU 2016-02 | 0 | 30,331 | 0 |
Issuance of common stock in connection with business acquisition | 797,970 | 0 | 158,704 |
Net non-cash distributions from unconsolidated entities | 5,002 | 0 | 29,510 |
Non-cash portion of loss on debt extinguishment | 1,723 | 0 | 0 |
Former Principal Equityholders | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of shares from Former Principal Equityholders | 0 | 0 | (768,125) |
Repurchase of common stock, net | $ 0 | $ 0 | $ (201,775) |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BUSINESS | BUSINESS Description of the Business — Taylor Morrison Home Corporation (“TMHC”), through its subsidiaries (together with TMHC referred to herein as “we,” “our,” “the Company” and “us”), owns and operates a residential homebuilding business and is a developer of lifestyle communities. We operate in the states of Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. Our Company serves a wide array of consumer groups from coast to coast, including entry-level, move-up, and active adult. Our homebuilding segments operate under our Taylor Morrison, Darling Homes, and William Lyon Signature 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 generally 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. We also have 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. As part of our acquisition of William Lyon Homes (“WLH”), discussed below, we also acquired Urban Form Development, LLC (“Urban Form”), which primarily develops and constructs multi-use properties consisting of commercial space, retail, and multi-family properties. Our Financial Services segment provides financial services to customers through our wholly owned mortgage subsidiary, operating as Taylor Morrison Home Funding, INC (“TMHF”), title services through our wholly owned title services subsidiary, Inspired Title Services, LLC (“Inspired Title”), and homeowner’s insurance policies through our insurance agency, Taylor Morrison Insurance Services, LLC (“TMIS”). On February 6, 2020, we completed the acquisition of WLH, one of the largest homebuilders in the Western United States. WLH designs, constructs, markets and sells single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington, Oregon, and Texas. Refer to Note 3 - Business Combinations for additional information. The COVID-19 pandemic has had a widespread effect on national and global economies, and the United States continues to be challenged with cases. Residential construction has been designated as an essential business in nearly all of our operating markets, and therefore our construction operations continued during the year, despite certain shelter-in-place orders. However, all of our operations have been conducted in compliance with federal, state, and local COVID-19 guidelines, orders, and ordinances applicable to construction and homebuilding activities. Despite the negative impacts of COVID-19, our leadership team created a strategic plan which allowed us to thrive under the restrictive environment. Specifically, we focused on transforming our customer experience online through innovative digital options, including (i) shifting to a remote selling environment; (ii) providing virtual options for online home tours, design center selections and new home demonstrations; and (iii) offering “curbside” or “drive thru” closings nationwide. In addition, we enhanced our website to further include a state-of-the-art customized chatbot to help provide information, engage the shopper and capture the customer, along with online appointments including home reservations that allow shoppers to reserve an inventory home online. While many of these new online features were already in process, the need for such customer convenience was expedited as a result of the pandemic. 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. 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, 2020 | |
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 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 - Former Principal Equityholders — 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. 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. Non-controlling interests - Joint Ventures — We consolidate certain joint ventures in accordance with 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 Accounting Standards Codification (“ASC”) Topic 805-10, Business Combinations. In connection with our 2020 and 2018 acquisitions of WLH and AV Homes, Inc (“AV Homes”), respectively, 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 were measured and recognized at fair value as of the date of the 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. For the year ended December 31, 2020, we recognized $127.2 million of costs relating to the acquisition of WLH which consisted primarily of investment banking fees, severance, compensation, legal fees, expenses relating to credit facility paydowns and terminations, and other various integration costs. For the year ended December 31, 2019, we recognized an aggregate $10.7 million of costs relating to the acquisition of WLH and prior acquisition of AV Homes, which primarily consisted 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 consisted of investment banking fees, severance, compensation, legal fees and other various integration costs. 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 between any one customer was below 50% as of the year ended December 31, 2020. No losses have been experienced to date. In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the property sold to the buyer with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination. Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2020, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. Restricted Cash — For the years ended December 31, 2020 and 2019 restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. Leases — We adopted ASC Topic 842, Leases , 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 operating 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. We have one financing lease which relates to the development of a future project and was acquired as a result of the acquisition of WLH. The weighted average remaining lease term of our financing lease is 87.9 years, and the weighted average discount rate used in determining the lease liability is 7.3%. We currently capitalize all lease costs incurred with this finance lease as it is prepared for its intended use. The amount of interest on the financing lease liability and the amortization of right of use asset was immaterial for the year ended December 31, 2020. A summary of our operating leases is shown below: As of the year ended December 31, (Dollars in millions) 2020 2019 Weighted average discount rate 6.1 % 5.8 % Weighted average remaining lease term (in years) 5.2 6.0 Payments on lease liabilities $16.8 $9.4 Recorded lease expense $14.8 $9.1 The future minimum lease payments required under our operating leases as of December 31, 2020 are as follows (dollars in thousands): Years Ending December 31, Lease 2021 $ 16,804 2022 14,447 2023 11,991 2024 9,409 2025 7,085 Thereafter 9,484 Total lease payments $ 69,220 Less: Interest $ 9,560 Present value of lease liabilities (1) $ 59,660 (1) Present value of lease liability relating to our financing lease is $23.6 million and is excluded from the table above. Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to cost of sales at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated to homes and units generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction of a home, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. 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. The life cycle of a typical community generally ranges from two five 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 charged to cost of sales. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is usually 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, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. For the year ended December 31, 2019, excluding our Chicago operations, we recorded $8.9 million of impairment charges, of which $2.0 million and $6.9 million related 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 related to our East and West reporting segments, respectively. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. 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. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale if there is a contract to sell the parcel or once we begin or intend to begin actively selling it. 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 fair value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. As of December 31, 2019, the homebuilding assets in Chicago were 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 ASC 360. For the year ended December 31, 2019 total impacts to the Consolidated Statement of Operations included 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, 2020 and 2018, we did not have material fair value adjustments relating to assets reclassified as held for sale. Land banking arrangements — As part of our acquisition of WLH, we have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we may transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable deposit of 15% to 25% of the total purchase price. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have ownership interest in these entities or title to assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings. Land Deposits — We make deposits related to land options, land banking, 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) 2020 2019 Prepaid expenses $ 50,368 $ 48,674 Other assets 68,502 33,449 Build-to-rent assets 16,137 4,029 Urban Form 107,737 — Total prepaid expenses and other assets, net $ 242,744 $ 86,152 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 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 a maximum of three years. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, intangible assets and other deferred costs. Build-to-rent and Urban Form assets consist primarily of land and development costs relating to projects under construction. Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely 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, 2020 and 2019 were immaterial. Investments in Consolidated and Unconsolidated Entities Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risks associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we will consolidate the VIE in our Consolidated Financial Statements and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Consolidated Balance Sheets. 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. 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 we believe 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, 2020, 2019 or 2018. Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $6.3 million, $4.8 million, and $4.0 million, respectively, for the years ended December 31, 2020, 2019, and 2018 . Depreciation expense is recorded in General and administrative expenses in the Consolidated Statements of Operations. Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. As a result of COVID-19 and the instability of the equity markets, we performed a qualitative goodwill analysis on a quarterly basis during 2020. Taking into consideration the fluctuations in the equity markets, general economic conditions, homebuilding industry conditions, our overall financial performance, and the gap between our net assets and market capitalization, we concluded there were no indicators that goodwill was impaired at each quarter end during 2020. In addition, we performed our annual test which included both a quantitative and qualitative analysis and concluded there was no impairment of goodwill at December 31, 2020. For the year ended December 31, 2020, there was an addition to goodwill of $513.8 million related to the WLH acquisition. For the years ended December 31, 2019 and 2018, there was no impairment of goodwill. Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability 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 damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. We offer a one two ten Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations. Our loss 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. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets. 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. During the year ended December 31, 2020, the employee match portion of the plan was paused for one quarter as part of our efforts to reduce spending during the early onset of the COVID-19 pandemic. We contributed $4.7 million, $10.7 million, and $9.3 million to the 401(k) Plan for the twelve months ended December 31, 2020, 2019, and 2018, 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 settlement date. Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers . 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 We own and operate certain amenities such as gol |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS In accordance with ASC Topic 805 , Business Combinations , all assets acquired and liabilities assumed from our acquisitions of WLH and AV Homes were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid. WLH Acquisition We completed the acquisition of WLH on February 6, 2020, for total purchase consideration of $1.1 billion, consisting of multiple components: (i) cash of $95.6 million, (ii) the issuance of approximately 30.6 million shares of TMHC Common Stock with a value of $836.1 million, (iii) the repayment of $160.8 million of borrowings under WLH's Revolving Credit Facility, and (iv) the conversion of WLH issued equity instruments consisting of restricted stock units, restricted stock awards, options and warrants to TMHC awards and warrants with a value of $24.07 million. On June 3 and 4, 2020, three dissenting former WLH shareholders filed petitions for appraisal in the Delaware Court of Chancery, in connection with the merger transaction whereby we acquired WLH. The petitioners did not accept the merger consideration and sought a judicial determination of the “fair value” of their shares. On June 29, 2020, we entered into a settlement agreement pursuant to which the petitioners released their claims in exchange for a subsequent total cash payment of approximately $62.2 million. As a result, although the total purchase price for the acquisition remained unchanged, the total cash paid increased from $95.6 million to $157.8 million, and the total equity issued, excluding warrants, comprised 28.3 million shares of TMHC Common Stock with a value of $773.9 million. We determined the estimated fair value of inventory on a community-level basis, using a reasonable range of market comparable gross margins based on the inventory geography and product type. These estimates are significantly impacted by assumptions related to expected average home selling prices and sales incentives, expected sales paces and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. Such estimates were made for each individual community and varied significantly between communities. We believe our estimates and assumptions are reasonable. The following is a summary of the final fair value of assets acquired and liabilities assumed. (Dollars in thousands) WLH Acquisition Date February 6, 2020 Assets acquired Real estate inventory $ 2,069,323 Prepaid expenses and other assets (1) 265,729 Deferred tax assets, net 148,193 Goodwill (2) 513,768 Total assets $ 2,997,013 Less liabilities assumed Accrued expenses and other liabilities $ 457,365 Total Debt (3) 1,306,578 Non-controlling interest 116,157 Net assets acquired $ 1,116,913 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively. (3) See Note 9 - Debt The following presents the final measurement period adjustments in fair value from the previously reported provisional balances as of March 31, 2020: • Real estate inventory decreased by approximately $64.8 million • Prepaid expenses and other assets increased by approximately $4.1 million • Deferred tax assets, net increased by approximately $20.0 million • Accrued expenses and other liabilities increased by approximately $10.1 million As a result of the changes in fair value above, goodwill increased by approximately $51.1 million since the date of our provisional estimate. The current period fair value adjustments relating to the year ended December 31, 2020 included a reduction to Cost of home closings of $4.2 million and a reduction to General and administrative expense of $0.2 million for the changes in depreciation and amortization as a result of the fair value of prepaid expenses and other assets. AV Homes Acquisition We completed the acquisition of AV Homes on October 2, 2018, for a total purchase consideration of $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. 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. 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 8 - Estimated Development Liability. Unaudited Pro Forma Results of Business Combinations Each of the following unaudited pro forma information for the periods presented include the results of operations of our acquisitions of WLH and AV Homes as if they were completed on January 1, 2019 and January 1, 2017, respectively. 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 each of our acquisitions for the periods presented. The unaudited pro forma results do not give effect to any synergies, operating efficiencies, or other costs savings that may result from the acquisitions, or other significant non-reoccurring expenses or transactions that do not have a continuing impact. Earnings per share utilizes pro forma net income available to TMHC 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. Pro forma presentation for the WLH acquisition For the Year Ended December 31, (Dollars in thousands except per share data) 2020 2019 Total revenue $ 6,216,418 $ 6,751,846 Net income before allocation to non-controlling interests 309,022 171,114 Net (income)/loss attributable to non-controlling interests — joint ventures 6,975 30,661 Net income available to TMHC $ 302,047 $ 140,453 Weighted average shares - Basic 131,011 135,661 Weighted average shares - Diluted 132,370 136,952 Earnings per share - Basic $ 2.31 $ 1.04 Earnings per share - Diluted $ 2.28 $ 1.03 For the year ended December 31, 2020, total revenue on the Consolidated Statement of Operations included $1.6 billion of revenues, and earnings before income taxes included $48.0 million of pre-tax earnings from WLH since the date of acquisition. Pro forma presentation for the AV Homes acquisition For the Year Ended December 31, (Dollars in thousands except per share data) 2018 Total revenues $ 4,780,138 Net income $ 231,270 Net income attributable to non-controlling interests — joint ventures (533) Net income attributable to non-controlling interest - Former Principal Equityholders (3,713) Net income available to TMHC - Basic $ 227,024 Net income attributable to non-controlling interest - Former Principal Equityholders 3,713 Loss fully attributable to public holding company 540 Net income - Diluted $ 231,277 Weighted average shares - Basic 118,593 Weighted average shares - Diluted 121,969 Earnings per share - Basic $ 1.91 Earnings per share - Diluted $ 1.90 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Numerator: Net income available to TMHC— basic $ 243,439 $ 254,652 $ 206,364 Net income attributable to non-controlling interest - Former Principal Equityholders — — 3,583 Loss fully attributable to public holding company — — 540 Net income — diluted $ 243,439 $ 254,652 $ 210,487 Denominator: Weighted average shares — basic 127,812 106,997 111,743 Weighted average shares — non-controlling interest (1) — — 1,935 Restricted stock units 865 983 1,117 Stock options 319 309 324 Warrants 174 — — Weighted average shares — diluted 129,170 108,289 115,119 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 1.90 $ 2.38 $ 1.85 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 1.88 $ 2.35 $ 1.83 (1) Shares 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 was 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 2,335,006, 2,394,703, and 2,232,647 anti-dilutive stock options and unvested performance and non-performance restricted stock units from the calculations of earnings per share for the years ended December 31, 2020, 2019, and 2018, respectively. |
REAL ESTATE INVENTORY AND LAND
REAL ESTATE INVENTORY AND LAND DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Real estate developed or under development $ 3,862,785 $ 2,805,506 Real estate held for development or held for sale (1) 110,954 146,471 Operating communities (2) 1,072,134 899,789 Capitalized interest 163,780 115,593 Total owned inventory 5,209,653 3,967,359 Consolidated real estate not owned 122,773 19,185 Total real estate inventory $ 5,332,426 $ 3,986,544 (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 were deemed held for sale and included in Total owned inventory on the Consolidated Balance Sheet. During the year ended December 31, 2020, we completed the disposal of our Chicago operations. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active inventory. The development status of our land inventory is as follows: As of December 31, (Dollars in thousands) 2020 2019 Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw (1) 12,330 $ 356,681 13,804 $ 477,997 Partially developed 19,495 1,215,419 13,298 914,689 Finished 21,396 2,388,177 15,504 1,559,291 Long-term strategic assets 158 13,462 — — Total 53,379 $ 3,973,739 42,606 $ 2,951,977 (1) Number of owned lots and book value of land and development inclusive of commercial assets which are lots designated for commercial space and not homebuilding lots. Land Deposits — We provide deposits related to land options and land purchase contracts, which are capitalized when paid and classified as Land deposits until the associated property is purchased. As of December 31, 2020 and 2019, we had the right to purchase approximately 7,449 and 4,263 lots under land option purchase contracts, respectively, for an aggregate purchase price of $485.4 million and $289.7 million, respectively. We do not have title to these properties, and the creditors generally have no recourse against us. As of December 31, 2020 and 2019, our exposure to loss related to our option contracts with third parties and unconsolidated entities consisted of non-refundable deposits totaling $65.3 million and $39.8 million, respectively. In connection with our acquisition of WLH, we acquired various land banking arrangements. As of December 31, 2020, we had the right to purchase 2,426 lots under such land agreements for an aggregate purchase price of $275.0 million. We are not legally obligated to purchase the balance of the lots. As of December 31, 2020, our exposure to loss related to deposits on land banking arrangements totaled $60.3 million. Capitalized Interest — Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Interest capitalized — beginning of period $ 115,593 $ 96,031 $ 90,496 Interest incurred 164,085 113,301 87,957 Interest amortized to cost of home closings (115,898) (93,739) (82,422) Interest capitalized — end of period $ 163,780 $ 115,593 $ 96,031 |
INVESTMENTS IN CONSOLIDATED AND
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES | INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES Unconsolidated Entities We have investments in a number of joint ventures with third parties, with ownership interests up to 50%. These entities are generally involved in real estate development, homebuilding and/or mortgage lending activities. Some of these joint ventures develop land for the sole use of the joint venture participants, including us, and others develop land for sale to both the joint venture participants and to unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer. Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): As of December 31, (Dollars in thousands) 2020 2019 Assets: Real estate inventory $ 342,451 $ 367,225 Other assets 133,903 132,812 Total assets $ 476,354 $ 500,037 Liabilities and owners’ equity: Debt $ 183,911 $ 178,686 Other liabilities 21,215 20,490 Total liabilities $ 205,126 $ 199,176 Owners’ equity: TMHC 127,955 128,759 Others 143,273 172,102 Total owners’ equity 271,228 300,861 Total liabilities and owners’ equity $ 476,354 $ 500,037 Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Revenues $ 161,888 $ 277,263 $ 381,274 Costs and expenses (129,764) (242,044) (328,565) Income of unconsolidated entities $ 32,124 $ 35,219 $ 52,709 TMHC's share in income of unconsolidated entities $ 11,176 $ 9,509 $ 13,332 Distributions from unconsolidated entities $ 51,626 $ 34,057 $ 68,847 Consolidated Entities As a result of the acquisition of WLH, we had a total of 25 joint ventures as of December 31, 2020 for the purpose of land development and homebuilding activities, which we have determined to be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities of the VIEs, or joint ventures. Based upon the allocation of income and loss per the applicable joint venture agreements and certain performance guarantees, we have potentially significant exposure to the risks and rewards of the joint ventures. Therefore, we are the primary beneficiary of the joint ventures, and the entities are consolidated as of December 31, 2020. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Real estate development costs to complete $ 38,935 $ 20,598 Compensation and employee benefits 113,896 95,585 Self-insurance and warranty reserves 118,116 120,048 Interest payable 45,917 23,178 Property and sales taxes payable 28,523 12,537 Other accruals 84,680 53,422 Total accrued expenses and other liabilities $ 430,067 $ 325,368 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, a wholly owned subsidiary. A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Reserve — beginning of period $ 120,048 $ 93,790 $ 51,010 Net additions to reserves due to WLH acquisition 9,984 — — Additions to reserves 62,722 44,093 51,674 Costs and claims incurred (82,137) (67,554) (42,433) Change in estimates to pre-existing reserves (1) 7,499 49,719 33,539 Reserve — end of period $ 118,116 $ 120,048 $ 93,790 (1) Changes in estimates to pre-existing reserves for the years ended December 31, 2019 and 2018 included a $43.1 million and $39.3 million charge, respectively, for construction defect remediation isolated to one specific community in the Central region. There was no charge for the year ended December 31, 2020 relating to this defect remediation. The reserve balances for the specific construction defect issue as of December 31, 2020, 2019, and 2018 were $12.7 million, $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 judgement 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 LIABILITY
ESTIMATED DEVELOPMENT LIABILITY | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract] | |
ESTIMATED DEVELOPMENT LIABILITY | ESTIMATED DEVELOPMENT LIABILITYThe estimated development liability consists 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 completion costs. At December 31, 2020 and 2019, these liabilities are based on third-party engineer cost estimate reports which reflect the estimated completion costs. Future increases or decreases of costs for construction, material and labor, as well as other land development and utilities infrastructure costs, may have a significant effect on the estimated development liability. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Total debt consists of the following: As of December 31, 2020 2019 (Dollars in thousands) Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.875% Senior Notes due 2023 350,000 (1,300) 348,700 350,000 (1,867) 348,133 5.625% Senior Notes due 2024 350,000 (1,705) 348,295 350,000 (2,244) 347,756 5.875% Senior Notes due 2027 500,000 (5,026) 494,974 500,000 (5,808) 494,192 6.625% Senior Notes due 2027 (1) 300,000 20,915 320,915 — — — 5.750% Senior Notes due 2028 450,000 (4,445) 445,555 450,000 (5,073) 444,927 5.125% Senior Notes due 2030 500,000 (6,074) 493,926 — — — Senior Notes subtotal 2,450,000 2,365 2,452,365 1,650,000 (14,992) 1,635,008 Loans payable and other borrowings 348,741 — 348,741 182,531 — 182,531 Revolving Credit Facility — — — — — — Mortgage warehouse borrowings 127,289 — 127,289 123,233 — 123,233 Total debt $ 2,926,030 $ 2,365 $ 2,928,395 $ 1,955,764 $ (14,992) $ 1,940,772 (1) Consists of remaining William Lyon Notes and New Notes (defined below) issued by TM Communities in connection with the Exchange Offer as described below. Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting estimates. Senior Notes All of our senior notes (the “Senior Notes”) described below and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indentures governing our senior notes (except for the William Lyon Notes as defined below) contain covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions and contain customary events of default. None of the indentures for the senior notes have financial maintenance covenants. In connection with our acquisition of WLH, TM Communities offered to exchange (the “Exchange Offers”) any and all outstanding notes of three series of senior notes issued by WLH (the “William Lyon Notes”) for up to $1.1 billion aggregate principal amount of new notes (the “New Notes”) to be issued by TM Communities. The Exchange Offers were settled on February 10, 2020. All validly tendered and not validly withdrawn William Lyon Notes were accepted for exchange in the Exchange Offers and such William Lyon Notes were retired, canceled, and not reissued. Following such cancellation, $26.0 million aggregate principal amount of 6.00% Senior Notes due 2023 of WLH, $8.5 million aggregate principal amount of 5.875% Senior Notes due 2025 of WLH, and $9.6 million aggregate principal amount of 6.625% Senior Notes due 2027 of WLH remained outstanding. In connection with the consummation of the Exchange Offers, WLH entered into supplemental indentures to eliminate substantially all of the covenants in the indentures governing the William Lyon Notes, including the requirement to offer to purchase such notes upon a change of control and to eliminate certain other restrictive provisions and events that may lead to an “Event of Default” in such indentures. The New Notes were issued by TM Communities and consisted of $324.0 million aggregate principal amount of 6.00% Senior Notes due 2023, $428.4 million aggregate principal amount of 5.875% Senior Notes due 2025, and $290.4 million aggregate principal amount of 6.625% Senior Notes due 2027. The 6.00% Senior Notes due 2023 and 5.875% Senior Notes due 2025 were fully redeemed as of December 31, 2020. In connection with the acquisition, on February 6, 2020, we satisfied and discharged all $50.0 million of WLH’s 7.00% Senior Notes due 2022 using cash on hand and borrowings from our $800.0 million Revolving Credit Facility, for a total redemption amount of $52.0 million. The William Lyon Notes and the New Notes are discussed further below. As of December 31, 2020 we were in compliance with all of the covenants under the Senior Notes. 5.875% Senior Notes due 2023 On April 16, 2015, TM Communities issued $350.0 million aggregate principal amount of 5.875% Senior Notes due 2023 (the “2023 5.875% Senior Notes”), which mature on April 15, 2023. The 2023 5.875% Senior Notes are guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the “Guarantors”). We are required to offer to repurchase the 2023 5.875% Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events where there is a credit rating downgrade that occurs in connection with the change of control. Prior to January 15, 2023, the 2023 5.875% 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 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.625% Senior Notes due 2024 On March 5, 2014, TM Communities issued $350.0 million aggregate principal amount of 5.625% Senior Notes due 2024 (the “2024 Senior Notes”), which mature on March 1, 2024. The 2024 Senior Notes are guaranteed by the Guarantors. 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). 5.875% Senior Notes due 2027 On June 5, 2019, TM Communities issued $500.0 million aggregate principal amount of 5.875% Senior Notes due 2027 (the “2027 5.875% Senior Notes”), which mature on June 15, 2027. The 2027 5.875% Senior Notes are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 5.875% Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to March 15, 2027, the 2027 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through March 15, 2027 (plus accrued and unpaid interest). Beginning on March 15, 2027, the 2027 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest). 6.625% Senior Notes due 2027 On February 10, 2020, we completed the Exchange Offers as described above following which we had $290.4 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by TM Communities (the “2027 6.625% TM Communities Notes”) and $9.6 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by WLH (the “2027 6.625% WLH Notes” and together with the 2027 6.625% TM Communities Notes, the “2027 6.625% Senior Notes”). The 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 6.625% TM Communities Notes are similar to those contained in the indentures governing our other Senior Notes. The 2027 6.625% Senior Notes mature on July 15, 2027. Prior to July 15, 2022, the 2027 6.625% Senior Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest, if any, to, but not including, the redemption date. On or after July 15, 2022, the 2027 6.625% Senior Notes are redeemable at a price equal to 103.313% of principal (plus accrued and unpaid interest). On or after July 15, 2023, the 2027 6.625% Senior Notes are redeemable at a price equal to 102.208% of principal (plus accrued and unpaid interest). On or after July 31, 2024, the 2027 6.625% Senior Notes are redeemable at a price equal to a 101.104% of principal (plus accrued and unpaid interest). On or after July 15, 2025, the 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest). In addition, at any time prior to July 15, 2022, we may at the option on one or more occasions, redeem the 2027 6.625% Senior Notes (including any additional notes that may be issues in the future under the 2027 6.625% Senior Notes Indenture) in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2027 6.625% Senior Notes at a redemption price (expressed as a percentage of principal amount) of 106.625%, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings. 5.75% Senior Notes due 2028 On August 1, 2019, TM Communities issued $450.0 million aggregate principal amount of 5.75% Senior Notes due 2028 (the “2028 Senior Notes”), which mature on January 15, 2028. The 2028 Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2028 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to October 15, 2027, the 2028 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through October 15, 2027 (plus accrued and unpaid interest). Beginning on October 15, 2027, the 2028 Senior Notes are redeemable at par (plus accrued and unpaid interest). 5.125% 2030 Senior Notes and Redemption of the 2023 6.00% Senior Notes and Redemption of the 2025 Senior Notes In July, 2020, $266.9 million of our 6.00% Senior Notes due 2023 (the “2023 6.00% Senior Notes”) and $333.1 million of our 5.875% Senior Notes due 2025 (the “2025 Senior Notes”) were partially redeemed using the net proceeds from the issuance of $500.0 million aggregate principal amount of 5.125% Senior Notes due 2030 (the “2030 Senior Notes”). In September 2020, we redeemed the remaining $83.1 million and $103.8 million of 2023 and 2025 Senior Notes, respectively, using cash on hand. For the 2023 6.00% Senior Notes, the redemption price was equal to 100.0% of the principal amount, plus a make-whole premium of 0.11% plus 50 basis points, plus accrued and unpaid interest to, but excluding the redemption date. For the 2025 Senior Notes, the redemption price was equal to 102.938% of the principal amount, plus accrued and unpaid interest to, but excluding the redemption date. As a result of the early redemption of the 2023 and 2025 Senior Notes, we recorded a total net loss on extinguishment of debt of approximately $10.2 million in Loss on extinguishment of debt, net in the Consolidated Statement of Operations for the year ended December 31, 2020 The 2030 Senior Notes mature on August 1, 2030. The Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2030 Senior Notes are similar to those contained in the indentures governing our other Senior Notes. Prior to February 1, 2030, the 2030 Senior Notes are redeemable at a price equal to 100.0% plus a “make-whole” premium for payments through February 1, 2030 (plus accrued and unpaid interest). Beginning on February 1, 2030, the 2030 Senior Notes are redeemable at par (plus accrued and unpaid interest). 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 during the first quarter of 2020 to Transaction and corporate reorganization expenses on the Consolidated Statement of Operations and entered into a new $800.0 million Revolving Credit Facility with a maturity date of February 6, 2024. As a precautionary measure during the COVID-19 pandemic, we had made the decision in the first quarter of 2020 to borrow $485.0 million on our Revolving Credit Facility. As of December 31, 2020, such borrowings have been repaid, and there was no outstanding amount due. As of December 31, 2020, our $800.0 million Revolving Credit Facility included $1.6 million of unamortized debt issuance costs and $64.3 million of utilized letters of credit, resulting in $735.7 million availability. As of December 31, 2019, our $600.0 million Revolving Credit Facility included $1.8 million of unamortized debt issuance costs and $77.7 million of utilized letters of credit, resulting in $522.3 million availability. Unamortized debt issuance costs are included in Prepaid expenses and other assets, net on the Consolidated Balance Sheets. The 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 $2.1 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 period of four consecutive fiscal quarters and up to five times overall. The 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 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, 2020, we were in compliance with all of the covenants under the Revolving Credit Facility. Mortgage Warehouse Borrowings The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2020 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 40,958 $ 55,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 19,457 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,148 75,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 23,726 80,000 LIBOR + 1.65% November 15, 2021 Mortgage Loans Total $ 127,289 $ 295,000 December 31, 2019 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) 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 (1) Subject to certain interest rate floors. (2) The mortgage warehouse borrowings outstanding as of December 31, 2020 and 2019, are collateralized by $201.2 million and $190.9 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $1.3 million and $1.6 million, respectively, of cash, which is restricted cash on our balance sheet. Loans Payable and Other Borrowings Loans payable and other borrowings as of December 31, 2020 and 2019 consist of project-level debt due to various land sellers and seller financing notes from current and prior year acquisitions. The debt is obtained for specific communities that contain land banking, profit participation, and joint ventures. 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, 2020 and 2019. Future Minimum Principal Payments on Total Debt Principal maturities of total debt for the year ended December 31, 2020 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2021 $ 284,826 2022 78,964 2023 421,118 2024 362,143 2025 10,090 Thereafter 1,768,889 Total debt $ 2,926,030 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
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 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 and loans payable and other borrowings 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. As of December 31, 2020 we transferred the IRLCs from a level 2 to a level 3 as the inputs used to determine the fair value are unique to each company's portfolio and are therefore unobservable inputs in the marketplace. There were no other changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2020, when compared to December 31, 2019. The carrying value and fair value of our financial instruments are as follows: As of December 31, 2020 As of December 31, 2019 (Dollars in thousands) Level in Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 201,177 $ 201,177 $ 190,880 $ 190,880 IRLCs 3 5,294 5,294 2,099 2,099 MBSs 2 (1,847) (1,847) (167) (167) Mortgage warehouse borrowings 2 127,289 127,289 123,233 123,233 Loans payable and other borrowings 2 348,741 348,741 182,531 182,531 5.875% Senior Notes due 2023 (1) 2 348,700 371,000 348,133 378,669 5.625% Senior Notes due 2024 (1) 2 348,295 375,830 347,756 379,453 5.875% Senior Notes due 2027 (1) 2 494,974 566,650 494,192 548,870 6.625% Senior Notes due 2027 (1) 2 320,915 324,240 — — 5.750% Senior Notes due 2028 (1) 2 445,555 509,625 444,927 491,913 5.125% Senior Notes due 2030 (1) 2 493,926 560,000 — — (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. 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 2020 2019 Inventories 3 22,556 16,509 At December 31, 2019, the fair value of our Chicago assets held for sale and active inventories was $25.1 million, which is excluded from the value in the table presented above. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Domestic $ 74,590 $ 67,358 $ 37,731 Foreign — — 25,305 Total income tax provision $ 74,590 $ 67,358 $ 63,036 Current: Federal $ 11,621 $ 54,372 $ (10,568) State 11,733 9,839 4,104 Foreign — — 25,482 Current tax provision $ 23,354 $ 64,211 $ 19,018 Deferred: Federal $ 45,594 $ (1,811) $ 40,037 State 5,642 4,958 4,158 Foreign — — (177) Deferred tax provision $ 51,236 $ 3,147 $ 44,018 Total income tax provision $ 74,590 $ 67,358 $ 63,036 The components of income before income taxes are as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Domestic $ 324,117 $ 322,272 $ 271,017 Foreign — — 2,499 Income before income taxes $ 324,117 $ 322,272 $ 273,516 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, 2020 2019 2018 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 4.6 3.9 4.4 Foreign income taxed at a different rate — — 0.5 Uncertain tax positions (0.1) (0.2) (2.9) Deferred tax adjustments — 0.2 — Energy tax credits (2.9) (4.6) (1.7) Subpart F dividend — — 1.7 Corporate reorganization/Canada unwind — — 9.3 Foreign tax credit — — (2.4) Disallowed compensation expense 0.9 0.3 (0.1) Disallowed M&A expenses 2.1 — — Tax reform — — (6.9) Impact of CARES Act (2.2) — — Other (0.4) 0.3 0.1 Effective Rate 23.0 % 20.9 % 23.0 % The effective tax rate for the year ended December 31, 2020 was favorably impacted by energy tax credits and legislation enacted during the year in response to the COVID-19 pandemic. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted into law. The legislation contains a number of economic relief provisions in response to the COVID-19 pandemic, including the ability to carryback tax losses five years for losses generated in tax years 2018, 2019 and 2020. As of December 31, 2020, we recognized a tax benefit related to certain tax losses incurred by WLH which were carried back under the new tax law. We decided to pursue this elective provision of the CARES Act during the fourth quarter of 2020. The effective tax rate for the year ended December 31, 2020 was unfavorably impacted by certain expenses related to the acquisition of WLH which are not deductible for tax purposes. The impact of the non-deductible acquisition expenses is reported on the Disallowed M&A expenses line in the rate reconciliation above. The effective tax rate for the year ended December 31, 2019 was favorably impacted by legislation enacted during that year 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, allowed for energy credits retroactively to home closings from 2018 and forward through 2020. Our effective tax rate for the year ended December 31, 2019 included our provisional estimate of the energy credits we expected to obtain related to homes closed during 2018 and 2019. On December 27, 2020, legislation was enacted making the energy efficient home credits available through 2021. 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, resulting in a valuation allowance. 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. In addition, our effective tax rate for the year ended December 31, 2018 included our final accounting for the effects of 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 our final accounting of 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. 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, 2020 and 2019, 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, 2020 and 2019 is as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 Deferred tax assets: Real estate inventory $ 91,499 $ 22,232 Accruals and reserves 47,536 39,029 Other 22,914 15,827 Net operating losses (1) 87,940 69,815 Capital loss carryforward 36,054 35,340 Total deferred tax assets $ 285,943 $ 182,243 Deferred tax liabilities: Real estate inventory, intangibles, other (11,811) (6,437) Valuation allowance (36,054) (35,340) Total net deferred tax assets $ 238,078 $ 140,466 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former Principal Equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of William Lyon Homes. All three acquisitions were deemed to be a change in control as defined by Section 382. On December 31, 2020 and 2019, we had a valuation allowance of $36.1 million and $35.3 million, respectively, 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. The increase in both the capital loss carryforward and valuation allowance during the year ending December 31, 2020 resulted from a return to provision adjustment to reflect the final amount of capital loss carryforward and corresponding valuation allowance. We have approximately $292.3 million in available gross federal NOL carryforwards. Federal NOL carryforwards generated prior to January 1, 2018 may be used to offset future taxable income for a period of 20 years and begin to expire in 2029. State NOL carryforwards may be used to offset future taxable income for a period of 20 years and begin to expire in 2026. On an ongoing basis, we will continue to review all available evidence to determine if we expect to realize our deferred tax assets and federal and state NOL carryovers or if a valuation allowance is necessary. We account for uncertain tax positions in accordance with ASC 740. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not based on the technical merits of the position that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ending December 31, (Dollars in thousands) 2020 2019 2018 Beginning of the period $ 6,158 $ 7,391 $ 12,936 Increases from current year acquisitions — — 4,216 Increases of prior year items — 15 475 Settlement with tax authorities — (977) — Decreased for tax positions of prior years — (76) (9,818) Decreased due to statute of limitations (396) (195) (418) End of the period $ 5,762 $ 6,158 $ 7,391 The decrease in unrecognized tax benefits for the year ending December 31, 2020 was primarily the result of the lapse in the statute of limitations on certain positions. If the unrecognized tax benefits as of December 31, 2020 were to be recognized, approximately $4.6 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 Consolidated Balance Sheets at December 31, 2020 and December 31, 2019. We recognized potential penalties and interest expense on our uncertain tax positions of $0.5 million, $0.6 million, and $0.7 million for the years ended December 31, 2020, 2019, and 2018 respectively, which are included in income tax provision in the Consolidated Statements of Operations and income taxes payable in the 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 2016 through 2020. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Capital Stock The Company’s authorized capital stock consists of 400,000,000 shares of common stock, par value $0.00001 per share (the “Common Stock”), and 50,000,000 shares of preferred stock, par value $0.00001 per share. Stock Repurchase Program On December 8, 2020, we announced that our Board of Directors authorized a $100.0 million renewal of our stock repurchase program until December 31, 2021. Repurchases of our Common Stock under the program will be effected, if at all, through open market purchases, privately negotiated transactions or other transactions through December 31, 2021. The following table summarizes share repurchase activity for the program for the years ended December 31, 2020 and 2019: Year Ended December 31, (Dollars in thousands) 2020 2019 Amount available for repurchase — beginning of period $ — $ 57,437 Additional amount authorized for repurchase (1) 200,000 100,000 Amount repurchased at cost, 5,941,324 and 8,389,348 shares as of December 31, 2020 and December 31, 2019, respectively (103,332) (157,437) Amount available for repurchase — end of period $ 96,668 $ — (1) Amount includes the $100.0 million renewal announced on December 8, 2020 in addition to our Board of Director's authorization announced on February 28, 2020 for $100.0 million renewal of our stock repurchase program. The authorization from February 28, 2020 was fully exhausted as of December 31, 2020. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
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”), performance-based restricted stock units (“PRSUs”), and other equity-based awards deliverable in shares of our Common Stock. As of December 31, 2020, we had an aggregate of 5,838,497 shares of Common Stock available for future grants under the Plan. The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statements of Operations: (Dollars in thousands) Year Ended December 31, 2020 2019 2018 Restricted stock units (1) (2) $ 19,938 $ 10,989 $ 17,130 Stock options 7,085 3,774 3,994 Total stock compensation $ 27,023 $ 14,763 $ 21,124 (1) Includes compensation expense related to time-based restricted stock units and performance-based restricted stock units. (2) Stock-based compensation expense in 2020 includes expense recognized for equity awards associated with the acquisition of WLH, which were converted from WLH to TMHC equity awards. An additional $5.1 million of stock based compensation expense relating to the accelerations of awards from the WLH acquisition were charged to Transaction and corporate reorganization expenses on the Consolidated Statement of Operations. Stock-based compensation expense in 2018 includes expense recognized for the acceleration of equity awards as part of the acquisition of AV Homes. At December 31, 2020, 2019, and 2018, the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $23.8 million, $20.8 million, and $20.4 million, respectively. Stock Options — Options granted to employees generally vest and become exercisable ratably on the first, second, third, and fourth anniversary of the date of grant. 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 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, 2020 2019 2018 Number of Weighted Number of Weighted Number of Weighted Outstanding, beginning 3,339,244 $ 18.98 3,239,995 $ 18.87 2,854,213 $ 17.50 Granted (1) 830,306 21.95 997,924 18.15 726,473 23.86 Exercised (2) (456,984) 17.91 (765,781) 17.29 (118,992) 15.85 Cancelled/forfeited (1) (154,207) 20.93 (132,894) 19.86 (221,699) 18.71 Balance, ending 3,558,359 $ 19.73 3,339,244 $ 18.98 3,239,995 $ 18.87 Options exercisable, at December 31, 1,719,912 $ 18.73 1,400,974 $ 19.09 1,537,977 $ 18.80 (1) Excludes the number of options granted and canceled in the same period. (2) Amount excludes 94,861 of options exercised relating to the acquisition of WLH. (3) Amount excludes 214,416 of outstanding and exercisable options relating to the acquisition of WLH. As of December 31, (Dollars in thousands) 2020 2019 2018 Unamortized value of unvested stock options (net of estimated forfeitures) $ 6,847 $ 6,759 $ 6,470 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options outstanding (1) 6.6 6.9 6.9 Weighted-average remaining contractual life (in years) for options exercisable (1) 4.9 5.1 5.6 (1) Excludes number of options relating to the acquisition of WLH. 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 (excluding options relating to the acquisition of WLH): Year Ended December 31, 2020 2019 2018 Expected dividend yield —% —% —% Expected volatility 24.19% 19.33% 21.31% Risk-free interest rate 1.19% 2.49% 2.68% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $5.89 $4.69 $6.68 The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2020, 2019 and 2018 (excluding options relating to the acquisition of WLH): As of December 31, (Dollars in thousands) 2020 2019 2018 Aggregate intrinsic value of options outstanding $ 21,399 $ 10,935 $ 3,432 Aggregate intrinsic value of options exercisable $ 11,903 $ 4,283 $ 1,540 The aggregate intrinsic value is based on the market price of our Common Stock on December 31, 2020, the last trading day in December 2020, which was $25.65, 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, 2020. Performance-Based Restricted Stock Units – We issued PRSUs to certain employees of the Company. These awards will vest in full based on the achievement of certain performance goals over a three The following table summarizes the activity of our PRSUs: Year Ended December 31, 2020 2019 2018 Balance, beginning 998,639 1,155,723 1,190,740 Granted 295,405 416,874 338,472 Vested (319,732) (511,984) (61,343) Forfeited (43,679) (61,974) (312,146) Balance, ending 930,633 998,639 1,155,723 Year Ended December 31, (Dollars in thousands): 2020 2019 2018 PRSU expense recognized $ 5,692 $ 5,866 $ 5,779 Unamortized value of PRSUs $ 7,848 $ 7,912 $ 7,501 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 Non-Performance-Based Restricted Stock Units — Our RSUs consist of shares of our Common Stock that have been awarded to our employees and members of our Board of Directors. Vesting of RSUs is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates. Time-based RSUs granted to employees generally vest ratably over a three to four year period, based on the grant date. Time-based RSUs granted to members of the Board of Directors generally vest on the first anniversary of the grant date. The following tables summarize the activity of our RSUs: Year Ended December 31, 2020 2019 2018 (Dollars in thousands except per share data): Number of Weighted Number of Weighted Number of Weighted Outstanding, beginning 709,754 $ 18.11 769,641 $ 16.73 698,819 $ 15.65 Granted 437,262 23.07 299,481 18.42 333,397 20.35 Vested (320,372) 16.83 (320,701) 15.25 (181,904) 13.01 Forfeited (52,483) 19.65 (38,667) 16.91 (80,671) 16.90 Balance, ending (1) 774,161 $ 21.33 709,754 $ 18.11 769,641 $ 16.73 (1) The balance as of December 31, 2020 excludes 107,111 unvested RSUs relating to the acquisition of WLH. Year Ended December 31, (Dollars in thousands): 2020 2019 2018 RSU expense recognized (1) $ 7,116 $ 5,123 $ 4,854 Unamortized value of RSUs (1) $ 8,116 $ 6,176 $ 6,435 Weighted-average period expense is expected to be recognized (in years) (1) 1.8 1.7 1.9 (1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized $7.1 million of RSU expense and approximately $1.0 million remains unamortized and will be expensed through the first quarter of 2022. 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 a series of reorganization transactions in 2013, 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 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 Number of Weighted Outstanding, beginning 883,921 $ 5.24 Exchanges (1) (883,921) 5.24 Forfeited — — Balance, ending — — Unvested TMM Units included in ending balance — — (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. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONSFrom time to time, we may engage in transactions with entities or persons that are affiliated with us. For the year ended December 31, 2020, we had no such activity. 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 year ended December 31, 2018, we engaged in multiple equity offering transactions with our Former Principal Equityholders. We used all of the net proceeds from these 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 Class A Common Stock sold in the public offerings. The following is a summary of the completed sales of our Class A Common Stock in registered public offerings for the year ended December 31, 2018: (Shares presented in thousands) Closing date Number of shares Net purchase price per share January 8, 2018 11,000 26.05 January 17,2018 (1) 19,207 27.14 (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. |
OPERATING AND REPORTING SEGMENT
OPERATING AND REPORTING SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
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. The divisions acquired from WLH have been categorized within our existing homebuilding reporting segments based on geography. The activity from our Build-to-Rent and Urban Form operations are included in our Corporate segment. We also have a Financial Services reporting segment. We have no inter-segment sales as all sales are to external customers. Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows: Year Ended December 31, 2020 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 1,919,247 $ 1,633,428 $ 2,396,101 $ 155,827 $ 24,717 $ 6,129,320 Gross margin $ 319,361 $ 306,158 $ 352,648 $ 66,918 $ (866) $ 1,044,219 Selling, general and administrative expense (160,222) (132,796) (165,682) — (113,675) (572,375) Equity in income of unconsolidated entities — 23 683 10,470 — 11,176 Interest and other expense, net (3) (574) (4,471) (37,600) (8,971) (97,040) (148,656) Loss on extinguishment of debt — — — — (10,247) (10,247) Income/(loss) before income taxes $ 158,565 $ 168,914 $ 150,049 $ 68,417 $ (221,828) $ 324,117 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services (1) Corporate 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 (loss)/income of unconsolidated entities — (215) 3,562 6,021 141 9,509 Interest and other expense, net (2) (5,545) (1,024) (3,273) — (5,408) (15,250) Loss on extinguishment of debt — — — — (5,806) (5,806) Income/(loss) before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845) $ 322,272 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2018 (Dollars in thousands) East Central West Financial Services (1) Corporate 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 (2) (5,615) (3,259) (526) — (51,666) (61,066) Income/(loss) before income taxes $ 137,435 $ 54,645 $ 192,260 $ 31,605 $ (142,429) $ 273,516 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. As of December 31, 2020 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,712,852 $ 1,176,604 $ 2,568,595 $ — $ — $ 5,458,051 Investments in unconsolidated entities — 58,052 65,395 4,498 10 127,955 Other assets 170,382 192,981 578,231 284,265 926,130 2,151,989 Total assets $ 1,883,234 $ 1,427,637 $ 3,212,221 $ 288,763 $ 926,140 $ 7,737,995 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate 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 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 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
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 $ 1,345,699 $ 1,526,685 $ 1,699,434 $ 1,557,502 Gross margin 197,756 244,178 309,689 292,596 (Loss)/income before income taxes (28,775) 84,844 148,958 119,090 Net (loss)/income before allocation to non-controlling interests (29,556) 67,222 115,199 96,662 Net (loss)/income available to Taylor Morrison Home Corporation (31,431) 65,674 114,777 94,419 Basic (loss)/earnings per share $ (0.26) $ 0.51 $ 0.88 $ 0.73 Diluted (loss)/earnings per share $ (0.26) $ 0.50 $ 0.87 $ 0.72 (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 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
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 $981.8 million and $623.3 million as of December 31, 2020 and 2019, 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, 2020 will be drawn upon. Purchase Commitments — We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in the routine conduct of its business. We have a number of land purchase option contracts and land banking agreements, 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 such contracts are generally limited to the forfeiture of the related non-refundable cash deposits. At December 31, 2020 and 2019, the aggregate purchase price of these contracts was $760.4 million and $289.7 million 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. |
MORTGAGE HEDGING ACTIVITIES
MORTGAGE HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
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 Consolidated Statement of Operations and 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 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, 2020 December 31, 2019 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 5,294 $ 260,954 $ 2,099 $ 86,434 MBSs (1,847) 376,000 (167) 158,000 Total, net $ 3,447 $ 1,932 (1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved. Total commitments to originate loans approximated $290.3 million and $94.5 million for the years ended December 31, 2020 and 2019. This amount represents the commitments to originate loans for both best efforts and mandatory loans that have been locked and approved by underwriting. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries, 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 - Former Principal Equityholders — 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. 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 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 Accounting Standards Codification (“ASC”) Topic 805-10, Business Combinations. |
Use of Estimates | Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of 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 | 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 between any one customer was below 50% as of the year ended December 31, 2020. No losses have been experienced to date. In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the property sold to the buyer with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2020, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions. |
Restricted Cash | Restricted Cash — For the years ended December 31, 2020 and 2019 restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits. |
Leases | Leases — We adopted ASC Topic 842, Leases , 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. |
Real Estate Inventory | Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to cost of sales at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated to homes and units generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction of a home, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. 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. The life cycle of a typical community generally ranges from two five 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 charged to cost of sales. We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment . We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is usually 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, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. For the year ended December 31, 2019, excluding our Chicago operations, we recorded $8.9 million of impairment charges, of which $2.0 million and $6.9 million related 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 related to our East and West reporting segments, respectively. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations. In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. 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. Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale if there is a contract to sell the parcel or once we begin or intend to begin actively selling it. 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 fair value adjustments for land held for sale within Cost of land closings on the Consolidated Statement of Operations. As of December 31, 2019, the homebuilding assets in Chicago were 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 ASC 360. For the year ended December 31, 2019 total impacts to the Consolidated Statement of Operations included 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, 2020 and 2018, we did not have material fair value adjustments relating to assets reclassified as held for sale. Land banking arrangements — As part of our acquisition of WLH, we have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we may transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable deposit of 15% to 25% of the total purchase price. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have ownership interest in these entities or title to assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings. |
Land Deposits | Land Deposits — We make deposits related to land options, land banking, 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 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 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 a maximum of three years. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, intangible assets and other deferred costs. Build-to-rent and Urban Form assets consist primarily of land and development costs relating to projects under construction. |
Other Receivables, net | Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. |
Investments in Consolidated and Unconsolidated Entities | Investments in Consolidated and Unconsolidated Entities Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risks associated with land ownership and development. In accordance with ASC Topic 810, Consolidation , we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur. If we are the primary beneficiary of the VIE, we will consolidate the VIE in our Consolidated Financial Statements and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Consolidated Balance Sheets. 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. 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. We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences. |
Property and Equipment, net | Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20 – 40 years Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years Information systems: over the term of the license Furniture, fixtures and computer and equipment: 5 – 7 years Model and sales office improvements: lesser of 3 years or the life of the community Maintenance and repair costs are expensed as incurred. Depreciation expense was $6.3 million, $4.8 million, and $4.0 million, respectively, for the years ended December 31, 2020, 2019, and 2018 . Depreciation expense is recorded in General and administrative expenses in the Consolidated Statements of Operations. |
Goodwill | Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other . |
Insurance Costs, Self-Insurance Reserves and Warranty Reserves | Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability 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 damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home. We offer a one two ten Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations. Our loss 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. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets. |
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. 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 |
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% of eligible compensation. During the year ended December 31, 2020, the employee match portion of the plan was paused for one quarter as part of our efforts to reduce spending during the early onset of the COVID-19 pandemic. |
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 settlement date. |
Revenue Recognition | Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers . 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 We own and operate certain amenities such as golf courses, club houses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from the club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets which include multi-use properties as part of our Urban Form operations. Financial services revenue Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, 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 — We expense advertising costs as incurred. |
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 |
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. |
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 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 and loans payable and other borrowings 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. |
Segment Reporting | Our reporting segments are as follows: East Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa Central Austin, Dallas, Denver, and Houston West Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California Financial Services Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Lease, Cost | A summary of our operating leases is shown below: As of the year ended December 31, (Dollars in millions) 2020 2019 Weighted average discount rate 6.1 % 5.8 % Weighted average remaining lease term (in years) 5.2 6.0 Payments on lease liabilities $16.8 $9.4 Recorded lease expense $14.8 $9.1 |
Schedule of Future Lease Payments | The future minimum lease payments required under our operating leases as of December 31, 2020 are as follows (dollars in thousands): Years Ending December 31, Lease 2021 $ 16,804 2022 14,447 2023 11,991 2024 9,409 2025 7,085 Thereafter 9,484 Total lease payments $ 69,220 Less: Interest $ 9,560 Present value of lease liabilities (1) $ 59,660 (1) Present value of lease liability relating to our financing lease is $23.6 million and is excluded from the table above. |
Summary of Prepaid Expenses and Other Assets | Prepaid expenses and other assets, net consist of the following: As of December 31, (Dollars in thousands) 2020 2019 Prepaid expenses $ 50,368 $ 48,674 Other assets 68,502 33,449 Build-to-rent assets 16,137 4,029 Urban Form 107,737 — Total prepaid expenses and other assets, net $ 242,744 $ 86,152 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
William Lyon Homes | |
Business Acquisition [Line Items] | |
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) WLH Acquisition Date February 6, 2020 Assets acquired Real estate inventory $ 2,069,323 Prepaid expenses and other assets (1) 265,729 Deferred tax assets, net 148,193 Goodwill (2) 513,768 Total assets $ 2,997,013 Less liabilities assumed Accrued expenses and other liabilities $ 457,365 Total Debt (3) 1,306,578 Non-controlling interest 116,157 Net assets acquired $ 1,116,913 (1) Includes cash acquired. (2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively. (3) See Note 9 - Debt |
Unaudited Pro Forma Results of Business Combinations | For the Year Ended December 31, (Dollars in thousands except per share data) 2020 2019 Total revenue $ 6,216,418 $ 6,751,846 Net income before allocation to non-controlling interests 309,022 171,114 Net (income)/loss attributable to non-controlling interests — joint ventures 6,975 30,661 Net income available to TMHC $ 302,047 $ 140,453 Weighted average shares - Basic 131,011 135,661 Weighted average shares - Diluted 132,370 136,952 Earnings per share - Basic $ 2.31 $ 1.04 Earnings per share - Diluted $ 2.28 $ 1.03 |
AV Homes, Inc. | |
Business Acquisition [Line Items] | |
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 8 - Estimated Development Liability. |
Unaudited Pro Forma Results of Business Combinations | For the Year Ended December 31, (Dollars in thousands except per share data) 2018 Total revenues $ 4,780,138 Net income $ 231,270 Net income attributable to non-controlling interests — joint ventures (533) Net income attributable to non-controlling interest - Former Principal Equityholders (3,713) Net income available to TMHC - Basic $ 227,024 Net income attributable to non-controlling interest - Former Principal Equityholders 3,713 Loss fully attributable to public holding company 540 Net income - Diluted $ 231,277 Weighted average shares - Basic 118,593 Weighted average shares - Diluted 121,969 Earnings per share - Basic $ 1.91 Earnings per share - Diluted $ 1.90 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Numerator: Net income available to TMHC— basic $ 243,439 $ 254,652 $ 206,364 Net income attributable to non-controlling interest - Former Principal Equityholders — — 3,583 Loss fully attributable to public holding company — — 540 Net income — diluted $ 243,439 $ 254,652 $ 210,487 Denominator: Weighted average shares — basic 127,812 106,997 111,743 Weighted average shares — non-controlling interest (1) — — 1,935 Restricted stock units 865 983 1,117 Stock options 319 309 324 Warrants 174 — — Weighted average shares — diluted 129,170 108,289 115,119 Earnings per common share — basic: Net income available to Taylor Morrison Home Corporation $ 1.90 $ 2.38 $ 1.85 Earnings per common share — diluted: Net income available to Taylor Morrison Home Corporation $ 1.88 $ 2.35 $ 1.83 (1) Shares 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 was 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, 2020 | |
Real Estate [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of December 31, (Dollars in thousands) 2020 2019 Real estate developed or under development $ 3,862,785 $ 2,805,506 Real estate held for development or held for sale (1) 110,954 146,471 Operating communities (2) 1,072,134 899,789 Capitalized interest 163,780 115,593 Total owned inventory 5,209,653 3,967,359 Consolidated real estate not owned 122,773 19,185 Total real estate inventory $ 5,332,426 $ 3,986,544 (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 were deemed held for sale and included in Total owned inventory on the Consolidated Balance Sheet. During the year ended December 31, 2020, we completed the disposal of our Chicago operations. (2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active 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) 2020 2019 Owned Lots Book Value of Land and Development Owned Lots Book Value of Land and Development Raw (1) 12,330 $ 356,681 13,804 $ 477,997 Partially developed 19,495 1,215,419 13,298 914,689 Finished 21,396 2,388,177 15,504 1,559,291 Long-term strategic assets 158 13,462 — — Total 53,379 $ 3,973,739 42,606 $ 2,951,977 (1) Number of owned lots and book value of land and development inclusive of commercial assets which are lots designated for commercial space and not homebuilding lots. |
Schedule of Interest Capitalized, Incurred, Expensed and Amortized | Interest capitalized, incurred and amortized is as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Interest capitalized — beginning of period $ 115,593 $ 96,031 $ 90,496 Interest incurred 164,085 113,301 87,957 Interest amortized to cost of home closings (115,898) (93,739) (82,422) Interest capitalized — end of period $ 163,780 $ 115,593 $ 96,031 |
INVESTMENTS IN CONSOLIDATED A_2
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method | Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands): As of December 31, (Dollars in thousands) 2020 2019 Assets: Real estate inventory $ 342,451 $ 367,225 Other assets 133,903 132,812 Total assets $ 476,354 $ 500,037 Liabilities and owners’ equity: Debt $ 183,911 $ 178,686 Other liabilities 21,215 20,490 Total liabilities $ 205,126 $ 199,176 Owners’ equity: TMHC 127,955 128,759 Others 143,273 172,102 Total owners’ equity 271,228 300,861 Total liabilities and owners’ equity $ 476,354 $ 500,037 Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Revenues $ 161,888 $ 277,263 $ 381,274 Costs and expenses (129,764) (242,044) (328,565) Income of unconsolidated entities $ 32,124 $ 35,219 $ 52,709 TMHC's share in income of unconsolidated entities $ 11,176 $ 9,509 $ 13,332 Distributions from unconsolidated entities $ 51,626 $ 34,057 $ 68,847 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Real estate development costs to complete $ 38,935 $ 20,598 Compensation and employee benefits 113,896 95,585 Self-insurance and warranty reserves 118,116 120,048 Interest payable 45,917 23,178 Property and sales taxes payable 28,523 12,537 Other accruals 84,680 53,422 Total accrued expenses and other liabilities $ 430,067 $ 325,368 |
Summary of Changes in Reserves | A summary of the changes in our reserves are as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Reserve — beginning of period $ 120,048 $ 93,790 $ 51,010 Net additions to reserves due to WLH acquisition 9,984 — — Additions to reserves 62,722 44,093 51,674 Costs and claims incurred (82,137) (67,554) (42,433) Change in estimates to pre-existing reserves (1) 7,499 49,719 33,539 Reserve — end of period $ 118,116 $ 120,048 $ 93,790 (1) Changes in estimates to pre-existing reserves for the years ended December 31, 2019 and 2018 included a $43.1 million and $39.3 million charge, respectively, for construction defect remediation isolated to one specific community in the Central region. There was no charge for the year ended December 31, 2020 relating to this defect remediation. The reserve balances for the specific construction defect issue as of December 31, 2020, 2019, and 2018 were $12.7 million, $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 judgement 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, 2020 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Borrowings | Total debt consists of the following: As of December 31, 2020 2019 (Dollars in thousands) Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value Principal Unamortized Debt Issuance (Costs) / Premium Carrying Value 5.875% Senior Notes due 2023 350,000 (1,300) 348,700 350,000 (1,867) 348,133 5.625% Senior Notes due 2024 350,000 (1,705) 348,295 350,000 (2,244) 347,756 5.875% Senior Notes due 2027 500,000 (5,026) 494,974 500,000 (5,808) 494,192 6.625% Senior Notes due 2027 (1) 300,000 20,915 320,915 — — — 5.750% Senior Notes due 2028 450,000 (4,445) 445,555 450,000 (5,073) 444,927 5.125% Senior Notes due 2030 500,000 (6,074) 493,926 — — — Senior Notes subtotal 2,450,000 2,365 2,452,365 1,650,000 (14,992) 1,635,008 Loans payable and other borrowings 348,741 — 348,741 182,531 — 182,531 Revolving Credit Facility — — — — — — Mortgage warehouse borrowings 127,289 — 127,289 123,233 — 123,233 Total debt $ 2,926,030 $ 2,365 $ 2,928,395 $ 1,955,764 $ (14,992) $ 1,940,772 (1) Consists of remaining William Lyon Notes and New Notes (defined below) issued by TM Communities in connection with the Exchange Offer as described below. Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting estimates. |
Summary of Mortgage Subsidiary Borrowings | The following is a summary of our mortgage subsidiary warehouse borrowings: (Dollars in thousands) December 31, 2020 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) Warehouse A $ 40,958 $ 55,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse B 19,457 85,000 LIBOR + 1.75% On Demand Mortgage Loans Warehouse C 43,148 75,000 LIBOR + 2.05% On Demand Mortgage Loans and Restricted Cash Warehouse D 23,726 80,000 LIBOR + 1.65% November 15, 2021 Mortgage Loans Total $ 127,289 $ 295,000 December 31, 2019 Facility Amount Facility Interest Rate (1) Expiration Date Collateral (2) 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 (1) Subject to certain interest rate floors. |
Principal Maturities of Total Debt | Principal maturities of total debt for the year ended December 31, 2020 are as follows (in thousands): (Dollars in thousands) Year Ended December 31, 2021 $ 284,826 2022 78,964 2023 421,118 2024 362,143 2025 10,090 Thereafter 1,768,889 Total debt $ 2,926,030 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 As of December 31, 2019 (Dollars in thousands) Level in Carrying Estimated Carrying Estimated Description: Mortgage loans held for sale 2 $ 201,177 $ 201,177 $ 190,880 $ 190,880 IRLCs 3 5,294 5,294 2,099 2,099 MBSs 2 (1,847) (1,847) (167) (167) Mortgage warehouse borrowings 2 127,289 127,289 123,233 123,233 Loans payable and other borrowings 2 348,741 348,741 182,531 182,531 5.875% Senior Notes due 2023 (1) 2 348,700 371,000 348,133 378,669 5.625% Senior Notes due 2024 (1) 2 348,295 375,830 347,756 379,453 5.875% Senior Notes due 2027 (1) 2 494,974 566,650 494,192 548,870 6.625% Senior Notes due 2027 (1) 2 320,915 324,240 — — 5.750% Senior Notes due 2028 (1) 2 445,555 509,625 444,927 491,913 5.125% Senior Notes due 2030 (1) 2 493,926 560,000 — — (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. |
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 2020 2019 Inventories 3 22,556 16,509 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following: Year Ended December 31, (Dollars in thousands) 2020 2019 2018 Domestic $ 74,590 $ 67,358 $ 37,731 Foreign — — 25,305 Total income tax provision $ 74,590 $ 67,358 $ 63,036 Current: Federal $ 11,621 $ 54,372 $ (10,568) State 11,733 9,839 4,104 Foreign — — 25,482 Current tax provision $ 23,354 $ 64,211 $ 19,018 Deferred: Federal $ 45,594 $ (1,811) $ 40,037 State 5,642 4,958 4,158 Foreign — — (177) Deferred tax provision $ 51,236 $ 3,147 $ 44,018 Total income tax provision $ 74,590 $ 67,358 $ 63,036 |
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) 2020 2019 2018 Domestic $ 324,117 $ 322,272 $ 271,017 Foreign — — 2,499 Income before income taxes $ 324,117 $ 322,272 $ 273,516 |
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, 2020 2019 2018 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes (net of federal benefit) 4.6 3.9 4.4 Foreign income taxed at a different rate — — 0.5 Uncertain tax positions (0.1) (0.2) (2.9) Deferred tax adjustments — 0.2 — Energy tax credits (2.9) (4.6) (1.7) Subpart F dividend — — 1.7 Corporate reorganization/Canada unwind — — 9.3 Foreign tax credit — — (2.4) Disallowed compensation expense 0.9 0.3 (0.1) Disallowed M&A expenses 2.1 — — Tax reform — — (6.9) Impact of CARES Act (2.2) — — Other (0.4) 0.3 0.1 Effective Rate 23.0 % 20.9 % 23.0 % |
Summary of Components of Deferred Tax Assets and Liabilities | A summary of these components for the years ending December 31, 2020 and 2019 is as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 Deferred tax assets: Real estate inventory $ 91,499 $ 22,232 Accruals and reserves 47,536 39,029 Other 22,914 15,827 Net operating losses (1) 87,940 69,815 Capital loss carryforward 36,054 35,340 Total deferred tax assets $ 285,943 $ 182,243 Deferred tax liabilities: Real estate inventory, intangibles, other (11,811) (6,437) Valuation allowance (36,054) (35,340) Total net deferred tax assets $ 238,078 $ 140,466 (1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former Principal Equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of William Lyon Homes. All three acquisitions were deemed to be a change in control as defined by Section 382. |
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) 2020 2019 2018 Beginning of the period $ 6,158 $ 7,391 $ 12,936 Increases from current year acquisitions — — 4,216 Increases of prior year items — 15 475 Settlement with tax authorities — (977) — Decreased for tax positions of prior years — (76) (9,818) Decreased due to statute of limitations (396) (195) (418) End of the period $ 5,762 $ 6,158 $ 7,391 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stock Repurchases | The following table summarizes share repurchase activity for the program for the years ended December 31, 2020 and 2019: Year Ended December 31, (Dollars in thousands) 2020 2019 Amount available for repurchase — beginning of period $ — $ 57,437 Additional amount authorized for repurchase (1) 200,000 100,000 Amount repurchased at cost, 5,941,324 and 8,389,348 shares as of December 31, 2020 and December 31, 2019, respectively (103,332) (157,437) Amount available for repurchase — end of period $ 96,668 $ — (1) Amount includes the $100.0 million renewal announced on December 8, 2020 in addition to our Board of Director's authorization announced on February 28, 2020 for $100.0 million renewal of our stock repurchase program. The authorization from February 28, 2020 was fully exhausted as of December 31, 2020. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statements of Operations: (Dollars in thousands) Year Ended December 31, 2020 2019 2018 Restricted stock units (1) (2) $ 19,938 $ 10,989 $ 17,130 Stock options 7,085 3,774 3,994 Total stock compensation $ 27,023 $ 14,763 $ 21,124 (1) Includes compensation expense related to time-based restricted stock units and performance-based restricted stock units. (2) Stock-based compensation expense in 2020 includes expense recognized for equity awards associated with the acquisition of WLH, which were converted from WLH to TMHC equity awards. An additional $5.1 million of stock based compensation expense relating to the accelerations of awards from the WLH acquisition were charged to Transaction and corporate reorganization expenses on the Consolidated Statement of Operations. Stock-based compensation expense in 2018 includes expense recognized for the acceleration of equity awards as part of the acquisition of AV Homes. |
Summary of Stock Option Activity | The following table summarizes stock option activity for the Plan for each year presented: Year Ended December 31, 2020 2019 2018 Number of Weighted Number of Weighted Number of Weighted Outstanding, beginning 3,339,244 $ 18.98 3,239,995 $ 18.87 2,854,213 $ 17.50 Granted (1) 830,306 21.95 997,924 18.15 726,473 23.86 Exercised (2) (456,984) 17.91 (765,781) 17.29 (118,992) 15.85 Cancelled/forfeited (1) (154,207) 20.93 (132,894) 19.86 (221,699) 18.71 Balance, ending 3,558,359 $ 19.73 3,339,244 $ 18.98 3,239,995 $ 18.87 Options exercisable, at December 31, 1,719,912 $ 18.73 1,400,974 $ 19.09 1,537,977 $ 18.80 (1) Excludes the number of options granted and canceled in the same period. (2) Amount excludes 94,861 of options exercised relating to the acquisition of WLH. (3) Amount excludes 214,416 of outstanding and exercisable options relating to the acquisition of WLH. As of December 31, (Dollars in thousands) 2020 2019 2018 Unamortized value of unvested stock options (net of estimated forfeitures) $ 6,847 $ 6,759 $ 6,470 Weighted-average period (in years) that expense is expected to be recognized 2.5 2.5 2.5 Weighted-average remaining contractual life (in years) for options outstanding (1) 6.6 6.9 6.9 Weighted-average remaining contractual life (in years) for options exercisable (1) 4.9 5.1 5.6 (1) Excludes number of options relating to the acquisition of WLH. |
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 (excluding options relating to the acquisition of WLH): Year Ended December 31, 2020 2019 2018 Expected dividend yield —% —% —% Expected volatility 24.19% 19.33% 21.31% Risk-free interest rate 1.19% 2.49% 2.68% Expected term (in years) 6.25 6.25 6.25 Weighted average fair value of options granted during the period $5.89 $4.69 $6.68 |
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, 2020, 2019 and 2018 (excluding options relating to the acquisition of WLH): As of December 31, (Dollars in thousands) 2020 2019 2018 Aggregate intrinsic value of options outstanding $ 21,399 $ 10,935 $ 3,432 Aggregate intrinsic value of options exercisable $ 11,903 $ 4,283 $ 1,540 |
Summary of Activity of Stock Units | The following table summarizes the activity of our PRSUs: Year Ended December 31, 2020 2019 2018 Balance, beginning 998,639 1,155,723 1,190,740 Granted 295,405 416,874 338,472 Vested (319,732) (511,984) (61,343) Forfeited (43,679) (61,974) (312,146) Balance, ending 930,633 998,639 1,155,723 Year Ended December 31, (Dollars in thousands): 2020 2019 2018 PRSU expense recognized $ 5,692 $ 5,866 $ 5,779 Unamortized value of PRSUs $ 7,848 $ 7,912 $ 7,501 Weighted-average period expense is expected to be recognized (in years) 1.8 1.8 1.8 The following tables summarize the activity of our RSUs: Year Ended December 31, 2020 2019 2018 (Dollars in thousands except per share data): Number of Weighted Number of Weighted Number of Weighted Outstanding, beginning 709,754 $ 18.11 769,641 $ 16.73 698,819 $ 15.65 Granted 437,262 23.07 299,481 18.42 333,397 20.35 Vested (320,372) 16.83 (320,701) 15.25 (181,904) 13.01 Forfeited (52,483) 19.65 (38,667) 16.91 (80,671) 16.90 Balance, ending (1) 774,161 $ 21.33 709,754 $ 18.11 769,641 $ 16.73 (1) The balance as of December 31, 2020 excludes 107,111 unvested RSUs relating to the acquisition of WLH. Year Ended December 31, (Dollars in thousands): 2020 2019 2018 RSU expense recognized (1) $ 7,116 $ 5,123 $ 4,854 Unamortized value of RSUs (1) $ 8,116 $ 6,176 $ 6,435 Weighted-average period expense is expected to be recognized (in years) (1) 1.8 1.7 1.9 (1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized $7.1 million of RSU expense and approximately $1.0 million remains unamortized and will be expensed through the first quarter of 2022. Year Ended December 31, 2018 Number of Weighted Outstanding, beginning 883,921 $ 5.24 Exchanges (1) (883,921) 5.24 Forfeited — — Balance, ending — — Unvested TMM Units included in ending balance — — (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. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Sales of Common Stock in Registered Public Offerings | The following is a summary of the completed sales of our Class A Common Stock in registered public offerings for the year ended December 31, 2018: (Shares presented in thousands) Closing date Number of shares Net purchase price per share January 8, 2018 11,000 26.05 January 17,2018 (1) 19,207 27.14 (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. |
OPERATING AND REPORTING SEGME_2
OPERATING AND REPORTING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information Excluding Discontinued Operations | Segment information is as follows: Year Ended December 31, 2020 (Dollars in thousands) East Central West Financial Services (1) Corporate and Unallocated (2) Total Total revenues $ 1,919,247 $ 1,633,428 $ 2,396,101 $ 155,827 $ 24,717 $ 6,129,320 Gross margin $ 319,361 $ 306,158 $ 352,648 $ 66,918 $ (866) $ 1,044,219 Selling, general and administrative expense (160,222) (132,796) (165,682) — (113,675) (572,375) Equity in income of unconsolidated entities — 23 683 10,470 — 11,176 Interest and other expense, net (3) (574) (4,471) (37,600) (8,971) (97,040) (148,656) Loss on extinguishment of debt — — — — (10,247) (10,247) Income/(loss) before income taxes $ 158,565 $ 168,914 $ 150,049 $ 68,417 $ (221,828) $ 324,117 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Includes the activity from our Build-To-Rent and Urban Form operations. (3) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2019 (Dollars in thousands) East Central West Financial Services (1) Corporate 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 (loss)/income of unconsolidated entities — (215) 3,562 6,021 141 9,509 Interest and other expense, net (2) (5,545) (1,024) (3,273) — (5,408) (15,250) Loss on extinguishment of debt — — — — (5,806) (5,806) Income/(loss) before income taxes $ 133,420 $ 64,756 $ 192,191 $ 47,750 $ (115,845) $ 322,272 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. Year Ended December 31, 2018 (Dollars in thousands) East Central West Financial Services (1) Corporate 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 (2) (5,615) (3,259) (526) — (51,666) (61,066) Income/(loss) before income taxes $ 137,435 $ 54,645 $ 192,260 $ 31,605 $ (142,429) $ 273,516 (1) All operating expenses, excluding transaction expenses, are reclassified into gross margin for Financial Services (2) Interest and other expense, net includes transaction related expenses and pre-acquisition write-offs of terminated projects. |
Assets from Segment | As of December 31, 2020 (Dollars in thousands) East Central West Financial Services Corporate and Unallocated (1) Total Real estate inventory and land deposits $ 1,712,852 $ 1,176,604 $ 2,568,595 $ — $ — $ 5,458,051 Investments in unconsolidated entities — 58,052 65,395 4,498 10 127,955 Other assets 170,382 192,981 578,231 284,265 926,130 2,151,989 Total assets $ 1,883,234 $ 1,427,637 $ 3,212,221 $ 288,763 $ 926,140 $ 7,737,995 (1) Includes the assets from our Build-To-Rent and Urban Form operations. As of December 31, 2019 (Dollars in thousands) East Central West Financial Services Corporate 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 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 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 $ 1,345,699 $ 1,526,685 $ 1,699,434 $ 1,557,502 Gross margin 197,756 244,178 309,689 292,596 (Loss)/income before income taxes (28,775) 84,844 148,958 119,090 Net (loss)/income before allocation to non-controlling interests (29,556) 67,222 115,199 96,662 Net (loss)/income available to Taylor Morrison Home Corporation (31,431) 65,674 114,777 94,419 Basic (loss)/earnings per share $ (0.26) $ 0.51 $ 0.88 $ 0.73 Diluted (loss)/earnings per share $ (0.26) $ 0.50 $ 0.87 $ 0.72 (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 |
MORTGAGE HEDGING ACTIVITIES (Ta
MORTGAGE HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount (1) IRLCs $ 5,294 $ 260,954 $ 2,099 $ 86,434 MBSs (1,847) 376,000 (167) 158,000 Total, net $ 3,447 $ 1,932 |
BUSINESS (Detail)
BUSINESS (Detail) shares in Millions | 12 Months Ended | 13 Months Ended |
Dec. 31, 2020publicOffering | Jan. 31, 2018publicOfferingshares | |
Class of Stock [Line Items] | ||
Reportable segments | 4 | |
Class A | ||
Class of Stock [Line Items] | ||
Number of public stock offerings | 7 | |
Number of shares sold in public offerings | shares | 80.2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Acquisition costs | $ 127,170,000 | $ 10,700,000 | $ 30,800,000 |
Finance lease, weighted average remaining lease term (in years) | 87 years 10 months 24 days | ||
Finance lease, weighted average discount rate, percent | 7.30% | ||
Weighted average remaining lease term (in years) | 5 years 2 months 12 days | 6 years | |
Weighted average discount rate | 6.10% | 5.80% | |
Inventory impairment charges | $ 9,611,000 | $ 9,384,000 | 9,631,000 |
Cost of revenue | 5,085,101,000 | 3,937,969,000 | 3,489,200,000 |
Sales, commissions and other marketing costs | 377,496,000 | 320,420,000 | 278,455,000 |
General and administrative expenses | 194,879,000 | 169,851,000 | 138,488,000 |
Other expense, net | 23,092,000 | 7,226,000 | 11,816,000 |
Depreciation expense | 6,300,000 | 4,800,000 | 4,000,000 |
Goodwill | 513,800,000 | 0 | 0 |
Excess insurance liability | $ 50,000,000 | ||
Insurance coverage period | 10 years | ||
Warranty coverage period, workmanship or materials | 1 year | ||
Warranty coverage period, systems | 2 years | ||
Warranty coverage period, structural defects | 10 years | ||
Contribution made to consolidated defined contribution plan | $ 4,700,000 | 10,700,000 | 9,300,000 |
Payments on lease liabilities | 16,800,000 | 9,400,000 | |
Lease expense | 14,800,000 | 9,100,000 | |
Advertising costs | 31,900,000 | 32,000,000 | 30,700,000 |
Continuing Operations | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | $ 9,600,000 | 8,900,000 | 9,600,000 |
Eastern Region | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | 2,000,000 | 8,500,000 | |
Central | |||
Significant Accounting Policies [Line Items] | |||
Inventory impairment charges | 6,900,000 | 1,100,000 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 2 years | ||
Percentage of purchase price | 15.00% | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Life cycle of communities (in years) | 5 years | ||
Percentage of purchase price | 25.00% | ||
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 | ||
Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 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% | ||
Home closings | |||
Significant Accounting Policies [Line Items] | |||
Cost of revenue | $ 4,887,757,000 | 3,836,857,000 | 3,410,853,000 |
Land closings | |||
Significant Accounting Policies [Line Items] | |||
Cost of revenue | $ 64,432,000 | 32,871,000 | $ 33,458,000 |
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) $ in Thousands | Dec. 31, 2020USD ($) |
Accounting Policies [Abstract] | |
2021 | $ 16,804 |
2022 | 14,447 |
2023 | 11,991 |
2024 | 9,409 |
2025 | 7,085 |
Thereafter | 9,484 |
Total lease payments | 69,220 |
Less: Interest | 9,560 |
Present value of lease | 59,660 |
Finance lease liability | $ 23,600 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 50,368 | $ 48,674 |
Other assets | 68,502 | 33,449 |
Build-to-rent assets | 16,137 | 4,029 |
Urban Form | 107,737 | 0 |
Total prepaid expenses and other assets, net | $ 242,744 | $ 86,152 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Jun. 29, 2020 | Mar. 31, 2020 | Feb. 06, 2020 | Oct. 02, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 279,048 | $ 0 | $ 192,886 | ||||
Repayment of convertible debt acquired | 0 | 0 | 95,816 | ||||
Issuance of common stock in connection with business acquisition | 797,970 | $ 0 | 158,704 | ||||
William Lyon Homes | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, total purchase consideration | $ 1,100,000 | ||||||
Payments to acquire business | $ 157,800 | $ 95,600 | |||||
Common stock issued in merger consideration (in shares) | 28,300 | 30,600 | |||||
Business acquisition, equity interest issued or issuable | $ 836,100 | ||||||
Business combination, liabilities incurred | 160,800 | ||||||
Business acquisition, conversion of equity instruments | $ 24,070 | ||||||
Payments for legal settlements | $ 62,200 | ||||||
Issuance of common stock in connection with business acquisition | $ 773,900 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, inventory | $ (64,800) | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, prepaid expense and other assets | 4,100 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, deferred tax assets | 20,000 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, accrued expenses and other liabilities | 10,100 | ||||||
Goodwill, purchase accounting adjustments | 51,100 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, cost of home closings | 4,200 | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, general and administrative expense | $ 200 | ||||||
Revenue of acquiree since acquisition date | 1,600,000 | ||||||
Earnings of acquiree since acquisition date | $ (48,000) | ||||||
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 | ||||||
Revenue of acquiree since acquisition date | 234,300 | ||||||
Earnings of acquiree since acquisition date | $ 7,700 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Fair Value of Assets Acquired and Liabilities Created (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 06, 2020 | Oct. 02, 2018 | |
Assets acquired | |||||
Goodwill | $ 663,197,000 | $ 149,428,000 | |||
Goodwill | $ 513,800,000 | $ 0 | $ 0 | ||
AV Homes, Inc. | |||||
Assets acquired | |||||
Real estate inventory | $ 782,424,000 | ||||
Prepaid expenses and other assets | 107,004,000 | ||||
Deferred tax assets, net | 69,456,000 | ||||
Goodwill | 83,230,000 | ||||
Property and equipment | 50,996,000 | ||||
Total assets | 1,093,110,000 | ||||
Less liabilities assumed | |||||
Accrued expenses and other liabilities | 94,308,000 | ||||
Customer deposits | 14,130,000 | ||||
Estimated development liability | 37,230,000 | ||||
Estimated development liability | 412,520,000 | ||||
Net assets acquired | 534,922,000 | ||||
AV Homes, Inc. | East | |||||
Assets acquired | |||||
Goodwill | 43,300,000 | ||||
AV Homes, Inc. | Central | |||||
Assets acquired | |||||
Goodwill | 30,000,000 | ||||
AV Homes, Inc. | West | |||||
Assets acquired | |||||
Goodwill | $ 9,900,000 | ||||
William Lyon Homes | |||||
Assets acquired | |||||
Real estate inventory | $ 2,069,323,000 | ||||
Prepaid expenses and other assets | 265,729,000 | ||||
Deferred tax assets, net | 148,193,000 | ||||
Goodwill | 513,768,000 | ||||
Total assets | 2,997,013,000 | ||||
Less liabilities assumed | |||||
Accrued expenses and other liabilities | 457,365,000 | ||||
Estimated development liability | 1,306,578,000 | ||||
Non-controlling interest | 116,157,000 | ||||
Net assets acquired | 1,116,913,000 | ||||
William Lyon Homes | Central | |||||
Assets acquired | |||||
Goodwill | 48,200,000 | ||||
William Lyon Homes | West | |||||
Assets acquired | |||||
Goodwill | $ 465,600,000 |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Results (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
William Lyon Homes | |||
Business Acquisition [Line Items] | |||
Net income available to TMHC | $ 302,047 | $ 140,453 | |
Weighted average shares - Basic (in shares) | 131,011 | 135,661 | |
Weighted average shares - Diluted (in shares) | 132,370 | 136,952 | |
Earnings per share - Basic (in dollars per share) | $ 2.31 | $ 1.04 | |
Earnings per share - Diluted (in dollars per share) | $ 2.28 | $ 1.03 | |
Revenue of acquiree since acquisition date | $ 1,600,000 | ||
Earnings of acquiree since acquisition date | (48,000) | ||
William Lyon Homes | Joint Ventures | |||
Business Acquisition [Line Items] | |||
Total revenue | 6,216,418 | $ 6,751,846 | |
Net income | 309,022 | 171,114 | |
Net income attributable to non-controlling interests | $ 6,975 | $ 30,661 | |
AV Homes, Inc. | |||
Business Acquisition [Line Items] | |||
Net income | $ 231,270 | ||
Net income available to TMHC | 227,024 | ||
Loss fully attributable to public holding company | 540 | ||
Net income - Diluted | $ 231,277 | ||
Weighted average shares - Basic (in shares) | 118,593 | ||
Weighted average shares - Diluted (in shares) | 121,969 | ||
Earnings per share - Basic (in dollars per share) | $ 1.91 | ||
Earnings per share - Diluted (in dollars per share) | $ 1.90 | ||
Revenue of acquiree since acquisition date | $ 234,300 | ||
Earnings of acquiree since acquisition date | 7,700 | ||
AV Homes, Inc. | Former Principal Equityholders | |||
Business Acquisition [Line Items] | |||
Net income attributable to non-controlling interests | 3,713 | ||
AV Homes, Inc. | Joint Ventures | |||
Business Acquisition [Line Items] | |||
Net income attributable to non-controlling interests | 533 | ||
AV Homes, Inc. | Joint Ventures | |||
Business Acquisition [Line Items] | |||
Total revenue | $ 4,780,138 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income available to TMHC— basic | $ 243,439 | $ 254,652 | $ 206,364 | ||||||||
Net Income Loss From Continuing Operations Attributable To NonControlling Interests Principal Equity Holders | 0 | 0 | 3,583 | ||||||||
Loss fully attributable to public holding company | 0 | 0 | 540 | ||||||||
Net income — diluted | $ 243,439 | $ 254,652 | $ 210,487 | ||||||||
Denominator: | |||||||||||
Weighted average shares - basic (Class A) (in shares) | 127,812 | 106,997 | 111,743 | ||||||||
Weighted average shares - non-controlling interest (in shares) | 0 | 0 | 1,935 | ||||||||
Restricted stock units (in shares) | 865 | 983 | 1,117 | ||||||||
Stock options (in shares) | 319 | 309 | 324 | ||||||||
Warrants (in shares) | 174 | 0 | 0 | ||||||||
Weighted average shares - diluted (in shares) | 129,170 | 108,289 | 115,119 | ||||||||
Earnings per common share | |||||||||||
Net income available to Taylor Morrison Home Corporation (usd per share) | $ 0.73 | $ 0.88 | $ 0.51 | $ (0.26) | $ 0.52 | $ 0.64 | $ 0.77 | $ 0.46 | $ 1.90 | $ 2.38 | $ 1.85 |
Earnings per common share — diluted: | |||||||||||
Net income available to Taylor Morrison Home Corporation (usd per share) | $ 0.72 | $ 0.87 | $ 0.50 | $ (0.26) | $ 0.51 | $ 0.63 | $ 0.76 | $ 0.46 | $ 1.88 | $ 2.35 | $ 1.83 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 2,335,006 | 2,394,703 | 2,232,647 |
REAL ESTATE INVENTORY AND LAN_3
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate [Abstract] | ||||
Real estate developed or under development | $ 3,862,785 | $ 2,805,506 | ||
Real estate held for development or held for sale | 110,954 | 146,471 | ||
Operating communities | 1,072,134 | 899,789 | ||
Capitalized interest | 163,780 | 115,593 | $ 96,031 | $ 90,496 |
Total owned inventory | 5,209,653 | 3,967,359 | ||
Consolidated real estate not owned | 122,773 | 19,185 | ||
Total real estate inventory | $ 5,332,426 | $ 3,986,544 |
REAL ESTATE INVENTORY AND LAN_4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Development Status of Land Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Book Value of Land and Development | ||
Inventory [Line Items] | ||
Raw | $ 356,681 | $ 477,997 |
Partially developed | 1,215,419 | 914,689 |
Finished | 2,388,177 | 1,559,291 |
Long-term strategic assets | 13,462 | 0 |
Total | 3,973,739 | 2,951,977 |
Owned Lots | ||
Inventory [Line Items] | ||
Raw | 12,330 | 13,804 |
Partially developed | 19,495 | 13,298 |
Finished | 21,396 | 15,504 |
Long-term strategic assets | 158 | 0 |
Total | $ 53,379 | $ 42,606 |
REAL ESTATE INVENTORY AND LAN_5
REAL ESTATE INVENTORY AND LAND DEPOSITS - Narrative (Details) $ in Millions | Dec. 31, 2020USD ($)lot | Dec. 31, 2019USD ($)lot |
Real Estate [Line Items] | ||
Right to purchase lots of land option (in lots) | lot | 7,449 | 4,263 |
Aggregate purchase price, excluding acquisitions | $ 485.4 | |
Aggregate purchase price | 760.4 | $ 289.7 |
Land deposits | $ 65.3 | $ 39.8 |
William Lyon Homes | ||
Real Estate [Line Items] | ||
Right to purchase lots of land option (in lots) | lot | 2,426 | |
Aggregate purchase price | $ 275 | |
Land deposits | $ 60.3 |
REAL ESTATE INVENTORY AND LAN_6
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Interest Costs [Roll Forward] | |||
Interest capitalized — beginning of period | $ 115,593 | $ 96,031 | $ 90,496 |
Interest incurred | 164,085 | 113,301 | 87,957 |
Interest amortized to cost of home closings | (115,898) | (93,739) | (82,422) |
Interest capitalized — end of period | $ 163,780 | $ 115,593 | $ 96,031 |
INVESTMENTS IN CONSOLIDATED A_3
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | |||
Other assets | $ 2,151,989 | $ 1,090,573 | $ 1,085,406 |
Total assets | 7,737,995 | 5,245,686 | $ 5,264,441 |
Liabilities and owners’ equity: | |||
Debt | 2,928,395 | 1,940,772 | |
Total liabilities | 4,144,245 | 2,699,974 | |
Owners’ equity: | |||
Total liabilities and stockholders’ equity | 7,737,995 | 5,245,686 | |
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Assets: | |||
Real estate inventory | 342,451 | 367,225 | |
Other assets | 133,903 | 132,812 | |
Total assets | 476,354 | 500,037 | |
Liabilities and owners’ equity: | |||
Debt | 183,911 | 178,686 | |
Other liabilities | 21,215 | 20,490 | |
Total liabilities | 205,126 | 199,176 | |
Owners’ equity: | |||
TMHC | 127,955 | 128,759 | |
Others | 143,273 | 172,102 | |
Total owners’ equity | 271,228 | 300,861 | |
Total liabilities and stockholders’ equity | $ 476,354 | $ 500,037 |
INVESTMENTS IN CONSOLIDATED A_4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenues | $ 1,557,502 | $ 1,699,434 | $ 1,526,685 | $ 1,345,699 | $ 1,466,436 | $ 1,105,105 | $ 1,265,426 | $ 925,092 | $ 6,129,320 | $ 4,762,059 | $ 4,227,393 |
Costs and expenses | (5,085,101) | (3,937,969) | (3,489,200) | ||||||||
Income of unconsolidated entities | 11,176 | 9,509 | 13,332 | ||||||||
Distributions of earnings from unconsolidated entities | 11,564 | 10,473 | 11,845 | ||||||||
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenues | 161,888 | 277,263 | 381,274 | ||||||||
Costs and expenses | (129,764) | (242,044) | (328,565) | ||||||||
Income of unconsolidated entities | 32,124 | 35,219 | 52,709 | ||||||||
TMHC's share in income of unconsolidated entities | 11,176 | 9,509 | 13,332 | ||||||||
Distributions of earnings from unconsolidated entities | $ 51,626 | $ 34,057 | $ 68,847 |
INVESTMENTS IN CONSOLIDATED A_5
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) $ in Thousands | Dec. 31, 2020USD ($)jointVenture | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | |||
Maximum related and unrelated third parties ownership interests, percent | 50.00% | ||
Assets | $ 7,737,995 | $ 5,245,686 | $ 5,264,441 |
Cash and cash equivalents | 532,843 | 326,437 | |
Liabilities | 4,144,245 | $ 2,699,974 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 389,200 | ||
Cash and cash equivalents | 25,800 | ||
Owned inventory | 320,400 | ||
Liabilities | $ 216,400 | ||
William Lyon Homes | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Number of joint ventures | jointVenture | 25 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||||
Real estate development costs to complete | $ 38,935 | $ 20,598 | ||
Compensation and employee benefits | 113,896 | 95,585 | ||
Self-insurance and warranty reserves | 118,116 | 120,048 | $ 93,790 | $ 51,010 |
Interest payable | 45,917 | 23,178 | ||
Property and sales taxes payable | 28,523 | 12,537 | ||
Other accruals | 84,680 | 53,422 | ||
Total accrued expenses and other liabilities | $ 430,067 | $ 325,368 |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of changes in warranty reserves | |||
Reserve — beginning of period | $ 120,048 | $ 93,790 | $ 51,010 |
Net additions to reserves due to WLH acquisition | 9,984 | 0 | 0 |
Additions to reserves | 62,722 | 44,093 | 51,674 |
Costs and claims incurred | (82,137) | (67,554) | (42,433) |
Change in estimates to pre-existing reserves | 7,499 | 49,719 | 33,539 |
Reserve — end of period | 118,116 | 120,048 | 93,790 |
Central | |||
Summary of changes in warranty reserves | |||
Reserve — beginning of period | 36,300 | 27,600 | |
Reserve — end of period | $ 12,700 | 36,300 | 27,600 |
Charge for construction defect remediation | $ 43,100 | $ 39,300 |
ESTIMATED DEVELOPMENT LIABILI_2
ESTIMATED DEVELOPMENT LIABILITY (Details) | 12 Months Ended |
Dec. 31, 2020lot | |
AV Homes, Inc. | |
Business Acquisition [Line Items] | |
Home sites previously sold (more than) | 8,000 |
DEBT - Senior Notes and Other B
DEBT - Senior Notes and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Feb. 10, 2020 | Dec. 31, 2019 | Jun. 05, 2019 | Apr. 16, 2015 | Mar. 05, 2014 |
Debt Instrument [Line Items] | ||||||
Principal | $ 2,926,030 | $ 1,955,764 | ||||
Unamortized Debt Issuance (Costs) / Premium | 2,365 | (14,992) | ||||
Carrying Value | 2,928,395 | 1,940,772 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 0 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 0 | 0 | ||||
Loans payable and other borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 348,741 | 182,531 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 348,741 | 182,531 | ||||
Mortgage warehouse borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 127,289 | 123,233 | ||||
Unamortized Debt Issuance (Costs) / Premium | 0 | 0 | ||||
Carrying Value | 127,289 | 123,233 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 2,450,000 | 1,650,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | 2,365 | (14,992) | ||||
Carrying Value | 2,452,365 | 1,635,008 | ||||
Senior Notes | 5.875% Senior Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 350,000 | 350,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (1,300) | (1,867) | ||||
Carrying Value | $ 348,700 | 348,133 | ||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||||
Senior Notes | 5.625% Senior Notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 350,000 | 350,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (1,705) | (2,244) | ||||
Carrying Value | $ 348,295 | 347,756 | ||||
Stated interest rate of senior notes | 5.625% | 5.625% | ||||
Senior Notes | 5.875% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 500,000 | 500,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (5,026) | (5,808) | ||||
Carrying Value | $ 494,974 | 494,192 | ||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||||
Senior Notes | 6.625% Senior Notes Due 2027 Member | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | 20,915 | 0 | ||||
Carrying Value | $ 320,915 | 0 | ||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||||
Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 450,000 | 450,000 | ||||
Unamortized Debt Issuance (Costs) / Premium | (4,445) | (5,073) | ||||
Carrying Value | $ 445,555 | 444,927 | ||||
Stated interest rate of senior notes | 5.75% | |||||
Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 500,000 | 0 | ||||
Unamortized Debt Issuance (Costs) / Premium | (6,074) | 0 | ||||
Carrying Value | $ 493,926 | $ 0 | ||||
Stated interest rate of senior notes | 5.125% |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - USD ($) | Dec. 31, 2020 | Sep. 14, 2020 | Jul. 22, 2020 | Feb. 10, 2020 | Feb. 06, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 2,452,365,000 | $ 1,635,008,000 | ||||
Facility Amount | $ 295,000,000 | $ 230,000,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Facility Amount | $ 600,000,000 | |||||
New Notes Issued By TM Communities | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes issued amount | $ 1,100,000,000 | |||||
6.00% Senior Notes Due 2023 Issued By WLH | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | 26,000,000 | |||||
6.00% Senior Notes Due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 324,000,000 | |||||
Stated interest rate of senior notes | 6.00% | 6.00% | ||||
Debt instrument, repurchase amount | $ 83,100,000 | $ 266,900,000 | ||||
5.875% Senior Notes Due 2025 Issued By WLH | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 8,500,000 | |||||
5.875% Senior Notes Due 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 428,400,000 | |||||
Stated interest rate of senior notes | 5.875% | 5.875% | ||||
Debt instrument, repurchase amount | $ 103,800,000 | $ 333,100,000 | ||||
6.625% Senior Notes Due 2027 Issued By WLH | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 9,600,000 | |||||
Stated interest rate of senior notes | 6.625% | |||||
6.625% Senior Notes Due 2027 Member | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 290,400,000 | |||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||||
Two Thousand Twenty Two Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of senior notes | 7.00% | |||||
Debt instrument, repurchased face amount | $ 50,000,000 | |||||
Debt instrument, repurchase amount | 52,000,000 | |||||
Restated Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Facility Amount | $ 800,000,000 |
DEBT - 2023 Senior Notes (Detai
DEBT - 2023 Senior Notes (Details) - Senior Notes - 5.875% Senior Notes due 2023 - USD ($) $ in Millions | Apr. 16, 2015 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $ 350 | |
Stated interest rate of senior notes | 5.875% | 5.875% |
Redemption price percentage | 101.00% | 100.00% |
DEBT - 2024 Senior Notes (Detai
DEBT - 2024 Senior Notes (Details) - 5.625% Senior Notes due 2024 - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Mar. 05, 2014 | |
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $ 350 | |
Stated interest rate of senior notes | 5.625% | 5.625% |
Redemption price percentage | 100.00% |
DEBT - 2027 Senior Notes (Detai
DEBT - 2027 Senior Notes (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Feb. 10, 2020 | Dec. 31, 2019 | Jun. 05, 2019 | |
Debt Instrument [Line Items] | ||||
Aggregate principal amount outstanding | $ 2,452,365,000 | $ 1,635,008,000 | ||
Senior Notes | 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% | ||
Senior Notes | 6.625% Senior Notes Due 2027 Member | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | 6.625% | ||
Redemption price percentage | 106.625% | |||
Aggregate principal amount outstanding | $ 290,400,000 | |||
Debt instrument, redemption, maximum percentage of face amount | 40.00% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Member | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.00% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Member | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.313% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Member | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.208% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Member | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.104% | |||
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of senior notes | 6.625% | |||
Aggregate principal amount outstanding | $ 9,600,000 |
DEBT - 2028 Senior Notes (Detai
DEBT - 2028 Senior Notes (Details) - Senior Notes - 5.75% Notes Due 2028 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Aug. 01, 2019 | |
Debt Instrument [Line Items] | ||
Senior Notes issued amount | $ 450 | |
Stated interest rate of senior notes | 5.75% | 5.75% |
Redemption price percentage | 100.00% |
DEBT - 2030 Senior Notes and Re
DEBT - 2030 Senior Notes and Redemption of the 2023 and 2025 Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 14, 2020 | Jul. 22, 2020 | Feb. 10, 2020 | |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ (10,247) | $ (5,806) | $ 0 | |||
5.125% Senior Notes Due 2030 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt interest rate | 5.125% | |||||
Senior Notes issued amount | $ 500,000 | |||||
Redemption price percentage | 100.00% | |||||
6.00% Senior Notes Due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt interest rate | 6.00% | 6.00% | ||||
Debt instrument, repurchase amount | $ 83,100 | 266,900 | ||||
Redemption price percentage | 100.00% | |||||
Debt instrument, redemption price, make-whole premium percentage | 0.11% | |||||
Debt instrument, redemption price, make-whole premium, basis percentage | 0.50% | |||||
5.875% Senior Notes Due 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt interest rate | 5.875% | 5.875% | ||||
Debt instrument, repurchase amount | $ 103,800 | $ 333,100 | ||||
Redemption price percentage | 102.938% | |||||
Senior Notes Due 2023 And 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ (10,200) |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)fiscalQuarterequityCureRight | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 06, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 295,000,000 | $ 230,000,000 | |||
Borrowings on mortgage warehouse | 2,448,980,000 | 1,145,799,000 | $ 863,109,000 | ||
Outstanding letters of credit | 981,800,000 | 623,300,000 | |||
Revolving credit facility borrowings | 0 | 0 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs included in prepaid expenses and other assets, net | 1,600,000 | 1,800,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 600,000,000 | ||||
Outstanding letters of credit | 64,300,000 | 77,700,000 | |||
Availability under revolving credit facility | 735,700,000 | $ 522,300,000 | |||
Revolving Credit Facility | Restated Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | $ 800,000,000 | ||||
Debt issuance costs written off | $ 1,700,000 | ||||
Borrowings on mortgage warehouse | $ 485,000,000 | ||||
Revolving credit facility borrowings | $ 40,000,000 | ||||
Maximum consecutive days for financial covenant | 5 days | ||||
Number of consecutive fiscal quarters for equity cure right | fiscalQuarter | 4 | ||||
Maximum number of times company can use equity cure right | equityCureRight | 5 | ||||
364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Capitalization ratio maximum | 60.00% | ||||
Minimum consolidated tangible net worth requirement | $ 2,100,000,000 |
Debt - Mortgage Warehouse Borro
Debt - Mortgage Warehouse Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 127,289,000 | $ 123,233,000 |
Facility Amount | 295,000,000 | 230,000,000 |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Restricted cash and investments, current | 1,300,000 | 1,600,000 |
Secured Debt | Warehouse A | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | 40,958,000 | 25,074,000 |
Facility Amount | $ 55,000,000 | $ 45,000,000 |
Collateral | Mortgage Loans | Mortgage Loans |
Secured Debt | Warehouse B | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 19,457,000 | $ 38,481,000 |
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 | $ 43,148,000 | $ 59,678,000 |
Facility Amount | $ 75,000,000 | $ 100,000,000 |
Collateral | Mortgage Loans and Restricted Cash | Mortgage Loans and Restricted Cash |
Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Amount Drawn | $ 23,726,000 | |
Facility Amount | $ 80,000,000 | |
Collateral | Mortgage Loans | |
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 | 2.05% | 1.70% |
LIBOR | Secured Debt | Warehouse D | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.65% | |
Mortgage loans | ||
Line of Credit Facility [Line Items] | ||
Mortgage loans held for sale | $ 201,200,000 | $ 190,900,000 |
DEBT - Loans Payable and Other
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payable and Other Borrowings | Dec. 31, 2020 | Dec. 31, 2019 |
Minimum | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate | 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 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | ||
2021 | $ 284,826 | |
2022 | 78,964 | |
2023 | 421,118 | |
2024 | 362,143 | |
2025 | 10,090 | |
Thereafter | 1,768,889 | |
Total debt | $ 2,926,030 | $ 1,955,764 |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Feb. 10, 2020 | Dec. 31, 2019 | Jun. 05, 2019 | Apr. 16, 2015 | Mar. 05, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | $ 5,294 | $ 2,099 | ||||
Revolving credit facility borrowings | $ 0 | 0 | ||||
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% | 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 | 6.625% Senior Notes Due 2027 Member | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 6.625% | 6.625% | ||||
Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.75% | |||||
Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long term debt interest rate | 5.125% | |||||
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 | $ 201,177 | 190,880 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Debt | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 1,847 | 167 | ||||
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 | 127,289 | 123,233 | ||||
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 | 348,741 | 182,531 | ||||
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 | 348,700 | 348,133 | ||||
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 | 348,295 | 347,756 | ||||
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 | 494,974 | 494,192 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 Member | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 320,915 | 0 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 445,555 | 444,927 | ||||
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 493,926 | 0 | ||||
Carrying Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | 5,294 | 2,099 | ||||
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 | 201,177 | 190,880 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Debt | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 1,847 | 167 | ||||
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 | 127,289 | 123,233 | ||||
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 | 348,741 | 182,531 | ||||
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 | 371,000 | 378,669 | ||||
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 | 375,830 | 379,453 | ||||
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 | 566,650 | 548,870 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027 Member | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 324,240 | 0 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.750% Senior Notes due 2028 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 509,625 | 491,913 | ||||
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 560,000 | 0 | ||||
Fair Value | Significant Unobservable Inputs (Level 3) | IRLCs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
IRLCs | $ 5,294 | $ 2,099 |
FAIR VALUE DISCLOSURES - Summ_2
FAIR VALUE DISCLOSURES - Summary of Assets Measure on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory held for sale | $ 3,862,785 | $ 2,805,506 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | $ 22,556 | 16,509 |
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 Prov
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 74,590 | $ 67,358 | $ 37,731 |
Foreign | 0 | 0 | 25,305 |
Total income tax provision | 74,590 | 67,358 | 63,036 |
Current: | |||
Federal | 11,621 | 54,372 | (10,568) |
State | 11,733 | 9,839 | 4,104 |
Foreign | 0 | 0 | 25,482 |
Current tax provision | 23,354 | 64,211 | 19,018 |
Deferred: | |||
Federal | 45,594 | (1,811) | 40,037 |
State | 5,642 | 4,958 | 4,158 |
Foreign | 0 | 0 | (177) |
Deferred tax provision | $ 51,236 | $ 3,147 | $ 44,018 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 324,117 | $ 322,272 | $ 271,017 | ||||||||
Foreign | 0 | 0 | 2,499 | ||||||||
Income before income taxes | $ 119,090 | $ 148,958 | $ 84,844 | $ (28,775) | $ 53,760 | $ 90,421 | $ 110,019 | $ 68,072 | $ 324,117 | $ 322,272 | $ 273,516 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes (net of federal benefit) | 4.60% | 3.90% | 4.40% |
Foreign income taxed at a different rate | 0.00% | 0.00% | 0.50% |
Uncertain tax positions | (0.10%) | (0.20%) | (2.90%) |
Deferred tax adjustments | 0.00% | 0.20% | 0.00% |
Energy tax credits | (2.90%) | (4.60%) | (1.70%) |
Subpart F dividend | 0.00% | 0.00% | 1.70% |
Corporate reorganization/Canada unwind | 0.00% | 0.00% | 9.30% |
Foreign tax credit | 0.00% | 0.00% | (2.40%) |
Disallowed compensation expense | 0.90% | 0.30% | (0.10%) |
Disallowed M&A expenses | 2.10% | 0.00% | 0.00% |
Tax reform | 0 | 0 | (0.069) |
Impact of CARES Act | (2.20%) | 0.00% | 0.00% |
Other | (0.40%) | 0.30% | 0.10% |
Effective Rate | 23.00% | 20.90% | 23.00% |
INCOME TAXES - Summary of Compo
INCOME TAXES - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Real estate inventory | $ 91,499 | $ 22,232 |
Accruals and reserves | 47,536 | 39,029 |
Other | 22,914 | 15,827 |
Net operating losses | 87,940 | 69,815 |
Capital loss carryforward | 36,054 | 35,340 |
Total deferred tax assets | 285,943 | 182,243 |
Deferred tax liabilities: | ||
Real estate inventory, intangibles, other | (11,811) | (6,437) |
Valuation allowance | (36,054) | (35,340) |
Total net deferred tax assets | $ 238,078 | $ 140,466 |
INCOME TAXES - Schedule of Re_2
INCOME TAXES - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits | |||
Beginning of the period | $ 6,158 | $ 7,391 | $ 12,936 |
Increases from current year acquisitions | 0 | 0 | 4,216 |
Increases of prior year items | 0 | 15 | 475 |
Settlement with tax authorities | 0 | (977) | 0 |
Decreased for tax positions of prior years | 0 | (76) | (9,818) |
Decreased due to statute of limitations | (396) | (195) | (418) |
End of the period | $ 5,762 | $ 6,158 | $ 7,391 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | |||
Deferred tax assets, valuation allowance | $ 36,054 | $ 35,340 | |
Unrecognized tax benefits that would impact effective tax rate | 4,600 | ||
Recognized potential penalties and interest expense on uncertain tax positions | 500 | $ 600 | $ 700 |
Federal NOL Carryforwards | |||
Income Tax [Line Items] | |||
NOL carryforwards | $ 292,300 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 24, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 08, 2020 | Feb. 28, 2020 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | ||||
Common stock, par value (usd per share) | $ 0.00001 | $ 0.00001 | ||||
Preferred stock, shares authorized | 50,000,000 | |||||
Preferred stock, par value (usd per share) | $ 0.00001 | |||||
Stock repurchase program, authorized amount | $ 100,000 | $ 100,000 | ||||
Repurchase of common stock (shares) | 5,941,324 | 8,389,348 | ||||
Treasury stock, value, acquired, cost method | $ 103,332 | $ 157,437 | $ 138,465 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 96,668 | $ 0 | $ 57,437 | |||
Subsequent event | ||||||
Repurchase of common stock (shares) | 896,000 | |||||
Treasury stock, value, acquired, cost method | $ 22,700 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 74,000 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 08, 2020 | Feb. 28, 2020 | |
Stock Repurchase Program, Increase (Decrease) [Roll Forward] | |||||
Amount available for repurchase — beginning of period | $ 0 | $ 57,437 | |||
Additional amount authorized for repurchase | 200,000 | 100,000 | |||
Amount repurchased at cost, 5,941,324 and 8,389,348 shares as of December 31, 2020 and December 31, 2019, respectively | (103,332) | (157,437) | $ (138,465) | ||
Amount available for repurchase — end of period | $ 96,668 | $ 0 | $ 57,437 | ||
Repurchase of common stock (shares) | 5,941,324 | 8,389,348 | |||
Stock repurchase program, authorized amount | $ 100,000 | $ 100,000 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate unamortized outstanding stock based compensation | $ | $ 23.8 | $ 20.8 | $ 20.4 |
Aggregate intrinsic value exercised based on market price (usd per share) | $ / shares | $ 25.65 | ||
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 | 5,838,497 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 27,023 | $ 14,763 | $ 21,124 |
Settlement of awards | 5,100 | ||
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | 7,085 | 3,774 | 3,994 |
Non-performance Restricted Stock Units (RSUs) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock compensation | $ 19,938 | $ 10,989 | $ 17,130 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options, Number of Options | |||
Outstanding, Beginning balance (in shares) | 3,339,244 | 3,239,995 | 2,854,213 |
Granted (in shares) | 830,306 | 997,924 | 726,473 |
Exercised (in shares) | (456,984) | (765,781) | (118,992) |
Cancelled (in shares) | (154,207) | (132,894) | (221,699) |
Outstanding, Ending balance (in shares) | 3,558,359 | 3,339,244 | 3,239,995 |
Options exercisable (in shares) | 1,719,912 | 1,400,974 | 1,537,977 |
Stock Options, Weighted Average Exercise Price | |||
Outstanding, Beginning balance (usd per share) | $ 18.98 | $ 18.87 | $ 17.50 |
Granted (usd per share) | 21.95 | 18.15 | 23.86 |
Exercised (usd per share) | 17.91 | 17.29 | 15.85 |
Cancelled (usd per share) | 20.93 | 19.86 | 18.71 |
Outstanding, Ending balance (usd per share) | 19.73 | 18.98 | 18.87 |
Weighted Average Exercise Price, options exercisable (usd per share) | $ 18.73 | $ 19.09 | $ 18.80 |
Unamortized value of unvested stock options (net of estimated forfeitures) (usd) | $ 6,847 | $ 6,759 | $ 6,470 |
Weighted-average period that expense is expected to be recognized | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Weighted-average remaining contractual life for options outstanding | 6 years 7 months 6 days | 6 years 10 months 24 days | 6 years 10 months 24 days |
Weighted-average remaining contractual life for options exercisable | 4 years 10 months 24 days | 5 years 1 month 6 days | 5 years 7 months 6 days |
William Lyon Homes | |||
Stock Options, Number of Options | |||
Exercised (in shares) | (94,861) | ||
Outstanding, Ending balance (in shares) | 214,416 |
STOCK BASED COMPENSATION - Su_3
STOCK BASED COMPENSATION - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 24.19% | 19.33% | 21.31% |
Risk-free interest rate | 1.19% | 2.49% | 2.68% |
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) | $ 5.89 | $ 4.69 | $ 6.68 |
STOCK BASED COMPENSATION - Su_4
STOCK BASED COMPENSATION - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||
Aggregate intrinsic value of options outstanding | $ 21,399 | $ 10,935 | $ 3,432 |
Aggregate intrinsic value of options exercisable | $ 11,903 | $ 4,283 | $ 1,540 |
STOCK BASED COMPENSATION - Su_5
STOCK BASED COMPENSATION - Summary of Activity of Performance Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 6 months |
Performance Restricted Stock Units | |||
PRSU Activity, Number of Awards | |||
Beginning balance (in shares) | 998,639 | 1,155,723 | 1,190,740 |
Granted (in shares) | 295,405 | 416,874 | 338,472 |
Vested (in shares) | (319,732) | (511,984) | (61,343) |
Forfeited (in shares) | (43,679) | (61,974) | (312,146) |
Ending balance (in shares) | 930,633 | 998,639 | 1,155,723 |
PRSU expense recognized during the year | $ 5,692 | $ 5,866 | $ 5,779 |
Unamortized value of PRSUs | $ 7,848 | $ 7,912 | $ 7,501 |
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 - Su_6
STOCK BASED COMPENSATION - Summary of Activity of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 6 months |
William Lyon Homes | |||
RSU Activity, Number of Awards | |||
Ending balance (in shares) | 107,111 | ||
Non-performance Restricted Stock Units (RSUs) | |||
RSU Activity, Number of Awards | |||
Beginning balance (in shares) | 709,754 | 769,641 | 698,819 |
Granted (in shares) | 437,262 | 299,481 | 333,397 |
Vested (in shares) | (320,372) | (320,701) | (181,904) |
Forfeited (in shares) | (52,483) | (38,667) | (80,671) |
Ending balance (in shares) | 774,161 | 709,754 | 769,641 |
RSU Activity, Weighted Average Grant Date Fair Value | |||
Outstanding, Beginning balance (usd per share) | $ 18.11 | $ 16.73 | $ 15.65 |
Granted (usd per share) | 23.07 | 18.42 | 20.35 |
Vested (usd per share) | 16.83 | 15.25 | 13.01 |
Forfeited (usd per share) | 19.65 | 16.91 | 16.90 |
Outstanding, Ending balance (usd per share) | $ 21.33 | $ 18.11 | $ 16.73 |
RSU expense recognized during the year | $ 7,116 | $ 5,123 | $ 4,854 |
Unamortized value of PRSUs | $ 8,116 | $ 6,176 | $ 6,435 |
Weighted-average period that expense is expected to be recognized | 1 year 9 months 18 days | 1 year 8 months 12 days | 1 year 10 months 24 days |
Non-performance Restricted Stock Units (RSUs) | William Lyon Homes | |||
RSU Activity, Weighted Average Grant Date Fair Value | |||
RSU expense recognized during the year | $ 7,100 | ||
Unamortized value of PRSUs | $ 1,000 |
STOCK BASED COMPENSATION - Su_7
STOCK BASED COMPENSATION - Summary of Stock Option Activity (Details) - New TMM Units | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Awards | |
Beginning balance (in shares) | shares | 883,921 |
Exchanges (in shares) | shares | (883,921) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 0 |
Unvested New TMM Units included in ending balance (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value | |
Beginning balance (usd per share) | $ / shares | $ 5.24 |
Exchanges (usd per share) | $ / shares | 5.24 |
Forfeited (usd per share) | $ / shares | 0 |
Ending balance (usd per share) | $ / shares | 0 |
Unvested New TMM Units included in ending balance (usd per share) | $ / shares | $ 0 |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Stock repurchase | $ 730,964 | |
TPG Advisors VI, Inc. | ||
Related Party Transaction [Line Items] | ||
Stock repurchase (in shares) | 2.1 | |
Stock repurchase | $ 43,700 |
RELATED-PARTY TRANSACTIONS - Su
RELATED-PARTY TRANSACTIONS - Summary of Shares Repurchased (Details) - $ / shares | Jan. 17, 2018 | Jan. 08, 2018 |
Related Party Transaction [Line Items] | ||
Stock issued during period, shares, new issues | 19,207,000 | 11,000,000 |
Net purchase price per share (usd per share) | $ 27.14 | $ 26.05 |
Class A | ||
Related Party Transaction [Line Items] | ||
Number of shares offered for sale | 17,700,000 | |
Class A | TPG Advisors VI, Inc. | ||
Related Party Transaction [Line Items] | ||
Number of shares offered for sale | 1,500,000 |
OPERATING AND REPORTING SEGME_3
OPERATING AND REPORTING SEGMENTS - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | $ 1,557,502 | $ 1,699,434 | $ 1,526,685 | $ 1,345,699 | $ 1,466,436 | $ 1,105,105 | $ 1,265,426 | $ 925,092 | $ 6,129,320 | $ 4,762,059 | $ 4,227,393 |
Gross margin | $ 292,596 | $ 309,689 | $ 244,178 | $ 197,756 | $ 207,202 | $ 211,074 | $ 233,774 | $ 172,040 | 1,044,219 | 824,090 | 738,193 |
Selling, general and administrative expense | (572,375) | (490,271) | (416,943) | ||||||||
Equity in income of unconsolidated entities | 11,176 | 9,509 | 13,332 | ||||||||
Interest and other expense, net | (148,656) | (15,250) | (61,066) | ||||||||
Loss on extinguishment of debt | (10,247) | (5,806) | 0 | ||||||||
Income before income taxes | 324,117 | 322,272 | 273,516 | ||||||||
Corporate and Unallocated | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 24,717 | 0 | 0 | ||||||||
Gross margin | (866) | 0 | (1) | ||||||||
Selling, general and administrative expense | (113,675) | (104,772) | (90,988) | ||||||||
Equity in income of unconsolidated entities | 0 | 141 | 226 | ||||||||
Interest and other expense, net | (97,040) | (5,408) | (51,666) | ||||||||
Loss on extinguishment of debt | (10,247) | (5,806) | |||||||||
Income before income taxes | (221,828) | (115,845) | (142,429) | ||||||||
East | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 1,919,247 | 1,950,742 | 1,666,423 | ||||||||
Gross margin | 319,361 | 307,893 | 281,306 | ||||||||
Selling, general and administrative expense | (160,222) | (168,928) | (138,720) | ||||||||
Equity in income of unconsolidated entities | 0 | 0 | 464 | ||||||||
Interest and other expense, net | (574) | (5,545) | (5,615) | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Income before income taxes | 158,565 | 133,420 | 137,435 | ||||||||
Central | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 1,633,428 | 1,334,389 | 1,139,622 | ||||||||
Gross margin | 306,158 | 187,957 | 161,323 | ||||||||
Selling, general and administrative expense | (132,796) | (121,962) | (104,295) | ||||||||
Equity in income of unconsolidated entities | 23 | (215) | 876 | ||||||||
Interest and other expense, net | (4,471) | (1,024) | (3,259) | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Income before income taxes | 168,914 | 64,756 | 54,645 | ||||||||
West | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 2,396,101 | 1,384,113 | 1,353,590 | ||||||||
Gross margin | 352,648 | 286,511 | 269,276 | ||||||||
Selling, general and administrative expense | (165,682) | (94,609) | (82,940) | ||||||||
Equity in income of unconsolidated entities | 683 | 3,562 | 6,450 | ||||||||
Interest and other expense, net | (37,600) | (3,273) | (526) | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Income before income taxes | 150,049 | 192,191 | 192,260 | ||||||||
Financial Services | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 155,827 | 92,815 | 67,758 | ||||||||
Gross margin | 66,918 | 41,729 | 26,289 | ||||||||
Selling, general and administrative expense | 0 | 0 | 0 | ||||||||
Equity in income of unconsolidated entities | 10,470 | 6,021 | 5,316 | ||||||||
Interest and other expense, net | (8,971) | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Income before income taxes | $ 68,417 | $ 47,750 | $ 31,605 |
OPERATING AND REPORTING SEGME_4
OPERATING AND REPORTING SEGMENTS - Assets from Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | $ 5,458,051 | $ 4,026,354 | $ 4,038,494 |
Investments in unconsolidated entities | 127,955 | 128,759 | 140,541 |
Other assets | 2,151,989 | 1,090,573 | 1,085,406 |
Total assets | 7,737,995 | 5,245,686 | 5,264,441 |
Corporate and Unallocated | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 10 | 242 | 357 |
Other assets | 926,130 | 485,252 | 513,156 |
Total assets | 926,140 | 485,494 | 513,513 |
East | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,712,852 | 1,841,904 | 1,862,756 |
Investments in unconsolidated entities | 0 | 0 | 0 |
Other assets | 170,382 | 165,777 | 162,339 |
Total assets | 1,883,234 | 2,007,681 | 2,025,095 |
Central | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 1,176,604 | 965,039 | 1,011,659 |
Investments in unconsolidated entities | 58,052 | 37,506 | 35,476 |
Other assets | 192,981 | 121,724 | 118,187 |
Total assets | 1,427,637 | 1,124,269 | 1,165,322 |
West | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 2,568,595 | 1,219,411 | 1,164,079 |
Investments in unconsolidated entities | 65,395 | 86,996 | 100,693 |
Other assets | 578,231 | 60,060 | 55,433 |
Total assets | 3,212,221 | 1,366,467 | 1,320,205 |
Financial Services | Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Real estate inventory and land deposits | 0 | 0 | 0 |
Investments in unconsolidated entities | 4,498 | 4,015 | 4,015 |
Other assets | 284,265 | 257,760 | 236,291 |
Total assets | $ 288,763 | $ 261,775 | $ 240,306 |
OPERATING AND REPORTING SEGME_5
OPERATING AND REPORTING SEGMENTS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 1,557,502 | $ 1,699,434 | $ 1,526,685 | $ 1,345,699 | $ 1,466,436 | $ 1,105,105 | $ 1,265,426 | $ 925,092 | $ 6,129,320 | $ 4,762,059 | $ 4,227,393 |
Gross margin | 292,596 | 309,689 | 244,178 | 197,756 | 207,202 | 211,074 | 233,774 | 172,040 | 1,044,219 | 824,090 | 738,193 |
(Loss)/income before income taxes | 119,090 | 148,958 | 84,844 | (28,775) | 53,760 | 90,421 | 110,019 | 68,072 | 324,117 | 322,272 | 273,516 |
Net (loss)/income before allocation to non-controlling interests | 96,662 | 115,199 | 67,222 | (29,556) | 54,709 | 67,036 | 81,888 | 51,281 | |||
Net (loss)/income available to Taylor Morrison Home Corporation | $ 94,419 | $ 114,777 | $ 65,674 | $ (31,431) | $ 54,658 | $ 67,012 | $ 81,851 | $ 51,131 | $ 243,439 | $ 254,652 | $ 206,364 |
Basic earnings per share (usd per share) | $ 0.73 | $ 0.88 | $ 0.51 | $ (0.26) | $ 0.52 | $ 0.64 | $ 0.77 | $ 0.46 | $ 1.90 | $ 2.38 | $ 1.85 |
Diluted earnings per share (usd per share) | $ 0.72 | $ 0.87 | $ 0.50 | $ (0.26) | $ 0.51 | $ 0.63 | $ 0.76 | $ 0.46 | $ 1.88 | $ 2.35 | $ 1.83 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 981.8 | $ 623.3 |
Aggregate purchase price | 760.4 | 289.7 |
Legal accruals | $ 23.5 | $ 12.7 |
MORTGAGE HEDGING ACTIVITIES (De
MORTGAGE HEDGING ACTIVITIES (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Fair Value | $ 3,447 | $ 1,932 |
Total commitments to originate loans | 290,300 | 94,500 |
IRLCs | ||
Derivative [Line Items] | ||
Fair Value | 5,294 | 2,099 |
Notional amount | 260,954 | 86,434 |
MBSs | ||
Derivative [Line Items] | ||
Fair Value | (1,847) | (167) |
Notional amount | $ 376,000 | $ 158,000 |
Minimum | ||
Derivative [Line Items] | ||
Derivative term | 30 days | |
Maximum | ||
Derivative [Line Items] | ||
Derivative term | 60 days |