Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 19, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PULTEGROUP INC/MI/ | |
Entity Central Index Key | 822,416 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 284,018,567 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and equivalents | $ 367,091 | $ 272,683 |
Restricted cash | 34,824 | 33,485 |
Total cash, cash equivalents, and restricted cash | 401,915 | 306,168 |
House and land inventory | 7,499,665 | 7,147,130 |
Land held for sale | 77,941 | 68,384 |
Residential mortgage loans available-for-sale | 369,634 | 570,600 |
Investments in unconsolidated entities | 61,718 | 62,957 |
Other assets | 759,230 | 745,123 |
Intangible assets | 134,092 | 140,992 |
Deferred tax assets, net | 511,381 | 645,295 |
Total assets | 9,815,576 | 9,686,649 |
Liabilities: | ||
Accounts payable | 399,330 | 393,815 |
Customer deposits | 354,968 | 250,779 |
Accrued and other liabilities | 1,242,349 | 1,356,333 |
Income tax liabilities | 22,484 | 86,925 |
Financial Services debt | 264,043 | 437,804 |
Notes payable | 3,005,690 | 3,006,967 |
Total liabilities | 5,288,864 | 5,532,623 |
Shareholders' equity | 4,526,712 | 4,154,026 |
Total liabilities and shareholders' equity | $ 9,815,576 | $ 9,686,649 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Homebuilding | ||||
Home sale revenues | $ 2,450,054 | $ 1,965,641 | $ 4,361,652 | $ 3,551,063 |
Land sale and other revenues | 66,904 | 8,944 | 79,461 | 11,632 |
Total homebuilding revenues | 2,516,958 | 1,974,585 | 4,441,113 | 3,562,695 |
Financial Services | 52,764 | 47,275 | 98,702 | 89,042 |
Consolidated revenues | 2,569,722 | 2,021,860 | 4,539,815 | 3,651,737 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | (1,862,133) | (1,549,937) | (3,322,073) | (2,767,615) |
Land sale cost of revenues | (38,183) | (87,599) | (49,731) | (90,827) |
Total cost of revenues | (1,900,316) | (1,637,536) | (3,371,804) | (2,858,442) |
Financial Services expenses | (32,224) | (28,478) | (64,436) | (56,846) |
Selling, general, and administrative expenses | (226,056) | (216,211) | (466,950) | (452,479) |
Other expense, net | (1,956) | (17,088) | (3,263) | (22,157) |
Income before income taxes | 409,170 | 122,547 | 633,362 | 261,813 |
Income tax expense | (85,081) | (21,798) | (138,521) | (69,545) |
Net income | $ 324,089 | $ 100,749 | $ 494,841 | $ 192,268 |
Per share: | ||||
Basic earnings (usd per share) | $ 1.12 | $ 0.32 | $ 1.72 | $ 0.60 |
Diluted earnings (usd per share) | 1.12 | 0.32 | 1.71 | 0.60 |
Cash dividends declared (usd per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Number of shares used in calculation: | ||||
Basic shares outstanding (shares) | 285,276 | 312,315 | 285,976 | 315,021 |
Effect of dilutive securities (shares) | 1,378 | 1,565 | 1,088 | 1,946 |
Diluted shares outstanding (shares) | 286,654 | 313,880 | 287,064 | 316,967 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 324,089 | $ 100,749 | $ 494,841 | $ 192,268 |
Other comprehensive income, net of tax: | ||||
Change in value of derivatives | 30 | 20 | 50 | 41 |
Other comprehensive income | 30 | 20 | 50 | 41 |
Comprehensive income | $ 324,119 | $ 100,769 | $ 494,891 | $ 192,309 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2016 | 319,090 | ||||
Shareholders' Equity beginning of period at Dec. 31, 2016 | $ 4,659,363 | $ 3,191 | $ 3,116,490 | $ (526) | $ 1,540,208 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of accounting change (see Note 1) | 18,237 | (406) | 18,643 | ||
Stock option exercises (shares) | 1,378 | ||||
Stock option exercises | 15,966 | $ 14 | 15,952 | ||
Stock issuances, net of cancellations (shares) | 729 | ||||
Stock issuances, net of cancellations | 3,564 | $ 10 | 3,554 | ||
Dividends declared | (56,941) | (56,941) | |||
Share repurchases (shares) | (17,498) | ||||
Share repurchases | (405,819) | $ (178) | (405,641) | ||
Share-based compensation | 17,323 | 17,323 | |||
Net income | 192,268 | 192,268 | |||
Other comprehensive income | 41 | 41 | |||
Shareholders' Equity, shares end of period (shares) at Jun. 30, 2017 | 303,699 | ||||
Shareholders' Equity end of period at Jun. 30, 2017 | 4,444,002 | $ 3,037 | 3,152,913 | (485) | 1,288,537 |
Shareholders' Equity, shares beginning of period (shares) at Dec. 31, 2017 | 286,752 | ||||
Shareholders' Equity beginning of period at Dec. 31, 2017 | 4,154,026 | $ 2,868 | 3,171,542 | (445) | 980,061 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of accounting change (see Note 1) | 22,411 | 0 | 22,411 | ||
Stock option exercises (shares) | 434 | ||||
Stock option exercises | 4,467 | $ 4 | 4,463 | ||
Stock issuances, net of cancellations (shares) | 870 | ||||
Stock issuances, net of cancellations | 3,483 | $ 8 | 3,475 | ||
Dividends declared | (51,966) | (51,966) | |||
Share repurchases (shares) | (3,694) | ||||
Share repurchases | (112,491) | $ (37) | (284) | (112,170) | |
Share-based compensation | 11,891 | 11,891 | |||
Net income | 494,841 | 494,841 | |||
Other comprehensive income | 50 | 50 | |||
Shareholders' Equity, shares end of period (shares) at Jun. 30, 2018 | 284,362 | ||||
Shareholders' Equity end of period at Jun. 30, 2018 | $ 4,526,712 | $ 2,843 | $ 3,191,087 | $ (395) | $ 1,333,177 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 494,841 | $ 192,268 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Deferred income tax expense | 126,991 | 80,841 |
Land-related charges | 5,841 | 129,108 |
Depreciation and amortization | 24,161 | 26,023 |
Share-based compensation expense | 16,162 | 20,871 |
Other, net | (2,803) | (1,536) |
Increase (decrease) in cash due to: | ||
Inventories | (281,362) | (486,393) |
Residential mortgage loans available-for-sale | 199,623 | 172,943 |
Other assets | 15,822 | 15,309 |
Accounts payable, accrued and other liabilities | (51,694) | 26,892 |
Net cash provided by (used in) operating activities | 547,582 | 176,326 |
Cash flows from investing activities: | ||
Capital expenditures | (33,059) | (16,892) |
Investments in unconsolidated entities | (1,000) | (17,832) |
Other investing activities, net | 6,915 | 3,143 |
Net cash used in investing activities | (27,144) | (31,581) |
Cash flows from financing activities: | ||
Repayments of debt | (82,432) | (2,153) |
Borrowings under revolving credit facility | 1,566,000 | 110,000 |
Repayments under revolving credit facility | (1,566,000) | (110,000) |
Financial Services borrowings (repayments) | (173,761) | (177,918) |
Debt issuance costs | 8,090 | 0 |
Stock option exercises | 4,467 | 15,966 |
Share repurchases | (112,491) | (405,819) |
Dividends paid | (52,384) | (58,214) |
Net cash provided by (used in) financing activities | (424,691) | (628,138) |
Net increase (decrease) | 95,747 | (483,393) |
Cash, cash equivalents, and restricted cash at beginning of period | 306,168 | 723,248 |
Cash, cash equivalents, and restricted cash at end of period | 401,915 | 239,855 |
Supplemental Cash Flow Information: | ||
Interest paid (capitalized), net | (387) | (2,359) |
Income taxes paid (refunded), net | $ 77,077 | $ (10,980) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation PulteGroup, Inc. is one of the largest homebuilders in the United States ("U.S."), and our common shares trade on the New York Stock Exchange under the ticker symbol “PHM”. Unless the context otherwise requires, the terms "PulteGroup", the "Company", "we", "us", and "our" used herein refer to PulteGroup, Inc. and its subsidiaries. While our subsidiaries engage primarily in the homebuilding business, we also engage in mortgage banking operations, conducted through Pulte Mortgage LLC (“Pulte Mortgage”), title services, and insurance brokerage operations. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission (the "SEC"). Other expense, net Other expense, net consists of the following ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Write-offs of deposits and pre-acquisition costs $ (1,652 ) $ (5,063 ) $ (4,261 ) $ (6,718 ) Amortization of intangible assets (3,450 ) (3,450 ) (6,900 ) (6,900 ) Interest income 835 599 1,399 1,432 Interest expense (165 ) (134 ) (308 ) (271 ) Equity in earnings (losses) of unconsolidated entities (a) 265 (5,763 ) 1,226 (4,569 ) Miscellaneous, net 2,211 (3,277 ) 5,581 (5,131 ) Total other expense, net $ (1,956 ) $ (17,088 ) $ (3,263 ) $ (22,157 ) (a) Includes an $8.0 million impairment of an investment in an unconsolidated entity in the three and six months ended June 30, 2017 (see Note 2 ). Revenue recognition Home sale revenues - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities include customer deposit liabilities related to sold but undelivered homes, which totaled 355.0 million and 250.8 million at June 30, 2018 and December 31, 2017 , respectively. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. See Note 8 for information on warranties and related obligations. Land sale revenues - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied. During the three and six months ended June 30, 2018 , we closed on a number of land sale transactions that generated gains totaling $27.3 million , as the proceeds from the sales exceeded the cost basis of the land. All performance obligations related to these transactions were satisfied at closing. Financial services revenues - Loan origination fees, commitment fees, and certain direct loan origination costs are recognized as incurred. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold. Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance brokerage commissions relate to commissions on homeowner and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are satisfied upon issuance of the initial policy. The contract assets for estimated future renewal commissions are included in other assets and totaled $29.8 million at June 30, 2018 . Contract assets totaling $27.7 million were recognized on January 1, 2018, in conjunction with the adoption of Accounting Standards Codification 606, "Revenue from Contracts with Customers" ("ASC 606"). Refer to " New accounting pronouncements" within Note 1 for further discussion. Earnings per share Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares outstanding, adjusted for unvested shares (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. In accordance with ASC 260 "Earnings Per Share", the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Our outstanding restricted share awards, restricted share units, and deferred shares are considered participating securities. The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net income $ 324,089 $ 100,749 $ 494,841 $ 192,268 Less: earnings distributed to participating securities (300 ) (300 ) (595 ) (605 ) Less: undistributed earnings allocated to participating securities (3,284 ) (772 ) (2,584 ) (1,330 ) Numerator for basic earnings per share $ 320,505 $ 99,677 $ 491,662 $ 190,333 Add back: undistributed earnings allocated to participating securities 3,284 772 2,584 1,330 Less: undistributed earnings reallocated to participating securities (3,268 ) (768 ) (2,575 ) (1,322 ) Numerator for diluted earnings per share $ 320,521 $ 99,681 $ 491,671 $ 190,341 Denominator: Basic shares outstanding 285,276 312,315 285,976 315,021 Effect of dilutive securities 1,378 1,565 1,088 1,946 Diluted shares outstanding 286,654 313,880 287,064 316,967 Earnings per share: Basic $ 1.12 $ 0.32 $ 1.72 $ 0.60 Diluted $ 1.12 $ 0.32 $ 1.71 $ 0.60 Residential mortgage loans available-for-sale Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days . At June 30, 2018 and December 31, 2017 , residential mortgage loans available-for-sale had an aggregate fair value of $369.6 million and $570.6 million , respectively, and an aggregate outstanding principal balance of $359.2 million and $553.5 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $(0.2) million and $(2.2) million for the three months ended June 30, 2018 and 2017 , respectively, and $(0.3) million and $(4.1) million for the six months ended June 30, 2018 and 2017 , respectively. These changes in fair value were substantially offset by changes in the fair value of corresponding hedging instruments. Net gains from the sale of mortgages were $29.2 million and $27.7 million for the three months ended June 30, 2018 and 2017 , respectively, and $56.2 million and $52.9 million for the six months ended June 30, 2018 and 2017 , respectively, and have been included in Financial Services revenues. Derivative instruments and hedging activities We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At June 30, 2018 and December 31, 2017 , we had aggregate IRLCs of $426.5 million and $210.9 million , respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. We hedge our exposure to interest rate market risk relating to residential mortgage loans available-for-sale and IRLCs using forward contracts on mortgage-backed securities, which are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price, and whole loan investor commitments, which are obligations of an investor to buy loans at a specified price within a specified time period. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. At June 30, 2018 and December 31, 2017 , we had unexpired forward contracts of $568.0 million and $522.0 million , respectively, and whole loan investor commitments of $186.7 million and $203.1 million , respectively. Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on IRLCs and residential mortgage loans available-for-sale are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 days. The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): June 30, 2018 December 31, 2017 Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities Interest rate lock commitments $ 12,139 $ 505 $ 5,990 $ 407 Forward contracts 189 2,429 432 817 Whole loan commitments 721 315 794 941 $ 13,049 $ 3,249 $ 7,216 $ 2,165 New accounting pronouncements On January 1, 2018, we adopted ASC 606, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. We applied the modified retrospective method to contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the previous accounting standards. We recorded a net increase to opening retained earnings of $22.4 million , net of tax, as of January 1, 2018, due to the cumulative impact of adopting ASC 606, with the impact primarily related to the recognition of contract assets for insurance brokerage commission renewals. There was not a material impact to revenues as a result of applying ASC 606 for the six months ended June 30, 2018 , and there have not been significant changes to our business processes, systems, or internal controls as a result of implementing the standard. We adopted Accounting Standards Update ("ASU") No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), as of January 1, 2018, on a retrospective basis. The ASU addresses several specific cash flow issues. The adoption of ASU 2016-15 had no effect on our financial statements. In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 is effective for us for annual and interim periods beginning January 1, 2019, and early adoption is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application. While the recognition of right-of-use assets and related liabilities will have a material effect on our consolidated balance sheets, we do not expect a material impact on our consolidated statements of operations. The FASB also issued ASU No. 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842", which provides guidance on specific transition issues. We continue to evaluate the full impact of the new standards, including the impact on our business processes, systems, and internal controls. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology and also requires that credit losses from available-for-sale debt securities be presented as an allowance instead of a write-down. ASU 2016-13 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and requires full retrospective application on adoption. We are currently evaluating the impact the standard will have on our financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which removes the requirement to perform a hypothetical purchase |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Major components of inventory were as follows ($000’s omitted): June 30, December 31, Homes under construction $ 2,922,260 $ 2,421,405 Land under development 4,045,615 4,135,814 Raw land 531,790 589,911 $ 7,499,665 $ 7,147,130 We capitalize interest cost into inventory during the active development and construction of our communities. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Information related to interest capitalized into inventory is as follows ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest in inventory, beginning of period $ 240,013 $ 203,828 $ 226,611 $ 186,097 Interest capitalized 43,771 44,949 87,731 89,872 Interest expensed (40,157 ) (35,927 ) (70,715 ) (63,119 ) Interest in inventory, end of period $ 243,627 $ 212,850 $ 243,627 $ 212,850 Land option agreements We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other expense, net. If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. No VIEs required consolidation at either June 30, 2018 or December 31, 2017 because we determined that we were not the VIEs' primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements. The following provides a summary of our interests in land option agreements as of June 30, 2018 and December 31, 2017 ($000’s omitted): June 30, 2018 December 31, 2017 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 73,940 $ 1,145,136 $ 78,889 $ 977,480 Other land options 144,497 1,603,950 129,098 1,485,099 $ 218,437 $ 2,749,086 $ 207,987 $ 2,462,579 Land-related charges We recorded the following significant land-related charges in the three months ended June 30, 2017 ($000's omitted): Statement of Operations Classification June 30, 2017 Net realizable value adjustments ("NRV") - land held for sale Land sale cost of revenues $ 81,006 Land inventory impairments Home sale cost of revenues 31,487 Impairments of unconsolidated entities Other expense, net 8,017 Write-offs of deposits and pre-acquisition costs Other expense, net 5,063 Total land-related charges $ 125,573 We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. The NRV adjustments for the three months ended June 30, 2017 were primarily the result of a plan we announced in May 2017 to sell select non-core and underutilized land parcels following a strategic review of our land portfolio, pursuant to which it was determined that we would sell certain inactive land parcels, representing approximately 17 communities and 4,600 lots. These land parcels were located in diverse geographic areas and no longer fit into our strategic plans. The land parcels identified for sale included: land requiring significant additional development spend that would not yield suitable returns; land in excess of near-term need; and land entitled for certain product types inconsistent with our primary offerings. As a consequence of the change in strategy with respect to the future use of these land parcels, we recorded NRV adjustments totaling $81.0 million in the three months ended June 30, 2017 relating to inventory with a pre-NRV carrying value of $151.0 million . The estimated fair values of these inactive land parcels held for sale were generally based on comparisons to market comparable transactions, letters of intent, active negotiations with market participants, or similar market-based information supplemented in certain instances by estimated future net cash flows discounted for inherent risk associated with each underlying asset. Land inventory impairments relate to communities that are either active or that we intend to eventually open and build out. As part of the May 2017 strategic review, we decided to accelerate the monetization of two small communities primarily through a combination of changing the product offerings and lowering the sales prices within the communities. This decision resulted in land impairments of $31.5 million in the three months ended June 30, 2017 . We determine the fair value of a community's inventory, and any related impairments, using a combination of discounted cash flow models and market comparable transactions, where available. These estimated cash flows are significantly impacted by estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the discounted cash flow models are specific to each community, which may be located in a variety of geographic markets, and offer homes at sales prices reflective of the product offering and market. Accordingly, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impairments recorded in the three months ended June 30, 2017: Range June 30, 2017 Average selling price ($000s) $253 to $461 Sales pace per quarter (units) 5 to 9 Discount rate 18% to 25% |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio Texas: Texas West: Arizona, California, Nevada, New Mexico, Washington We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations and operate generally in the same markets as the Homebuilding segments. Operating Data by Segment Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues: Northeast $ 200,626 $ 148,303 $ 333,062 $ 256,904 Southeast 445,506 381,132 820,129 710,244 Florida 455,637 363,421 804,346 677,717 Midwest 356,466 357,985 653,972 602,491 Texas 330,692 288,669 577,331 523,210 West 728,031 435,075 1,252,273 792,129 2,516,958 1,974,585 4,441,113 3,562,695 Financial Services 52,764 47,275 98,702 89,042 Consolidated revenues $ 2,569,722 $ 2,021,860 $ 4,539,815 $ 3,651,737 Income (loss) before income taxes (d) : Northeast $ 25,158 $ (38,249 ) $ 34,470 $ (33,849 ) Southeast 54,357 40,274 94,814 72,640 Florida (a) 67,491 36,110 112,436 80,633 Midwest 43,050 37,573 71,451 55,827 Texas 50,859 46,522 81,395 79,318 West (b) 154,414 (1,850 ) 243,619 32,234 Other homebuilding (c) (6,876 ) (16,781 ) (39,374 ) (57,441 ) 388,453 103,599 598,811 229,362 Financial Services 20,717 18,948 34,551 32,451 Consolidated income before income taxes $ 409,170 $ 122,547 $ 633,362 $ 261,813 (a) Florida includes a warranty charge of $12.1 million for the three and six months ended June 30, 2017 related to a closed-out community (see Note 8 ). (b) West includes gains of $26.4 million related to two land sale transactions in California that closed in the three and six months ended June 30, 2018 . (c) Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the operating segments. Other homebuilding also includes insurance reserve reversals of $37.9 million and $19.8 million for the three and six months ended June 30, 2018 and 2017 , respectively, and a write-off of $15.0 million of insurance receivables associated with the resolution of certain insurance matters in the six months ended June 30, 2017 (see Note 8 ). (d) Includes land-related charges, as summarized in the below table. Operating Data by Segment Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Land-related charges*: Northeast $ 498 $ 49,820 $ 1,683 $ 49,918 Southeast 689 491 1,731 958 Florida 226 8,602 409 8,754 Midwest 372 7,567 1,118 8,095 Texas 220 589 270 847 West 148 54,409 361 56,441 Other homebuilding 269 4,095 269 4,095 $ 2,422 $ 125,573 $ 5,841 $ 129,108 * Land-related charges include land impairments, net realizable value adjustments on land held for sale, impairments of investments in unconsolidated entities, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue (see Note 2 ). Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges. Operating Data by Segment ($000's omitted) June 30, 2018 Homes Under Land Under Raw Land Total Total Northeast $ 298,241 $ 272,358 $ 73,577 $ 644,176 $ 811,067 Southeast 506,116 633,489 78,183 1,217,788 1,355,703 Florida 488,392 879,165 97,481 1,465,038 1,602,996 Midwest 371,665 420,733 28,727 821,125 909,295 Texas 332,420 417,251 88,727 838,398 915,707 West 869,845 1,161,466 143,544 2,174,855 2,357,858 Other homebuilding (a) 55,581 261,153 21,551 338,285 1,389,431 2,922,260 4,045,615 531,790 7,499,665 9,342,057 Financial Services — — — — 473,519 $ 2,922,260 $ 4,045,615 $ 531,790 $ 7,499,665 $ 9,815,576 Operating Data by Segment ($000's omitted) December 31, 2017 Homes Under Land Under Raw Land Total Total Northeast $ 234,413 $ 327,599 $ 73,574 $ 635,586 $ 791,511 Southeast 433,411 613,626 121,238 1,168,275 1,287,992 Florida 359,651 876,856 109,069 1,345,576 1,481,837 Midwest 299,896 476,694 28,482 805,072 877,282 Texas 251,613 435,018 87,392 774,023 859,847 West 798,706 1,137,940 147,493 2,084,139 2,271,328 Other homebuilding (a) 43,715 268,081 22,663 334,459 1,469,234 2,421,405 4,135,814 589,911 7,147,130 9,039,031 Financial Services — — — — 647,618 $ 2,421,405 $ 4,135,814 $ 589,911 $ 7,147,130 $ 9,686,649 (a) |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes payable Our senior notes are summarized as follows ($000’s omitted): June 30, December 31, 4.250% unsecured senior notes due March 2021 (a) $ 700,000 $ 700,000 5.500% unsecured senior notes due March 2026 (a) 700,000 700,000 5.000% unsecured senior notes due January 2027 (a) 600,000 600,000 7.875% unsecured senior notes due June 2032 (a) 300,000 300,000 6.375% unsecured senior notes due May 2033 (a) 400,000 400,000 6.000% unsecured senior notes due February 2035 (a) 300,000 300,000 Net premiums, discounts, and issuance costs (b) (13,152 ) (13,057 ) Total senior notes 2,986,848 2,986,943 Other notes payable 18,842 20,024 Notes payable $ 3,005,690 $ 3,006,967 Estimated fair value $ 2,998,340 $ 3,263,774 (a) Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. (b) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. Other notes payable include non-recourse and limited recourse collateralized notes with third parties that totaled $18.8 million and $20.0 million at June 30, 2018 and December 31, 2017 , respectively. These notes have maturities ranging up to three years , are secured by the applicable land positions to which they relate, and have no recourse to any other assets. The stated interest rates on these notes range up to 7.8% . Revolving credit facility In June 2018, we entered into the Second Amended and Restated Credit Agreement ("Revolving Credit Facility") which replaced the Company's previous credit agreement. The Revolving Credit Facility contains substantially similar terms to the previous credit agreement and extended the maturity date from June 2019 to June 2023. The Revolving Credit Facility has a maximum borrowing capacity of $1.0 billion and contains an uncommitted accordion feature that could increase the capacity to $1.5 billion , subject to certain conditions and availability of additional bank commitments. The Revolving Credit Facility also provides for the issuance of letters of credit that reduce the available borrowing capacity under the Revolving Credit Facility, with a sublimit of $500.0 million at June 30, 2018 . The interest rate on borrowings under the Revolving Credit Facility may be based on either the London Interbank Offered Rate ("LIBOR") or a base rate plus an applicable margin, as defined therein. We had no borrowings outstanding at June 30, 2018 and December 31, 2017 , and $214.6 million and $235.5 million of letters of credit issued under the Revolving Credit Facility at June 30, 2018 and December 31, 2017 , respectively. The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth, a minimum Interest Coverage Ratio, and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of June 30, 2018 , we were in compliance with all covenants. Our available and unused borrowings under the Revolving Credit Facility, net of outstanding letters of credit, amounted to $785.4 million and $764.5 million at June 30, 2018 and December 31, 2017 , respectively. Joint venture debt At June 30, 2018 , aggregate outstanding debt of unconsolidated joint ventures was $55.0 million , of which $54.2 million was related to one joint venture in which we have a 50% interest. In connection with this loan, we and our joint venture partner provided customary limited recourse guaranties under which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding. The limited guaranties include, but are not limited to: (i) completion of certain aspects of the project; (ii) an environmental indemnity provided to the lender; and (iii) an indemnification of the lender from certain "bad boy acts" of the joint venture. Financial Services debt Pulte Mortgage maintains a master repurchase agreement with third party lenders (the “Repurchase Agreement”) that matures in August 2018 . The maximum aggregate commitment was $400.0 million at June 30, 2018 , and will remain unchanged through maturity. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. Pulte Mortgage had $264.0 million and $437.8 million outstanding under the Repurchase Agreement at June 30, 2018 and December 31, 2017 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders’ equity | Shareholders’ equity During the six months ended June 30, 2018 , we declared cash dividends totaling $52.0 million and repurchased 3.5 million shares under our repurchase authorization for $105.1 million . For the six months ended June 30, 2017 , we declared cash dividends totaling $56.9 million and repurchased 17.5 million shares under our repurchase authorization for $399.9 million . At June 30, 2018 , we had remaining authorization to repurchase $489.3 million of common shares. Under our share-based compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of shares, generally related to the payment of minimum tax obligations. During the six months ended June 30, 2018 and 2017 , participants surrendered shares valued at $7.4 million and $5.9 million |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Our effective tax rate for the three and six months ended June 30, 2018 was 20.8% and 21.9% , respectively, compared to 17.8% and 26.6% , respectively, for the same periods in 2017. Our effective tax rate for the three and six months ended June 30, 2018 differs from the federal statutory rate primarily due to state income tax expense on current year earnings, tax benefits due to Internal Revenue Service acceptance of an accounting method change applicable to the 2017 tax year, energy credits, and tax law changes. For the same periods in the prior year, our effective tax rate differed from the federal statutory rate primarily due to state income tax expense on current year earnings, the favorable resolution of certain state income tax matters, and tax law changes. The federal statutory rate was reduced from 35% in 2017 to 21% in 2018 due to the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on December 22, 2017. We have not fully completed our accounting for the income tax effects of the Tax Act. As discussed in the SEC Staff Accounting Bulletin No. 118, the accounting for the Tax Act should be completed within one year from the Tax Act enactment. During the three and six months ended June 30, 2018, we have made no material adjustments to the provisional amounts recorded at December 31, 2017. Adjustments to the provisional amounts recorded at December 31, 2017 will be reflected upon the completion of our accounting for the Tax Act. At June 30, 2018 and December 31, 2017 , we had deferred tax assets, net of deferred tax liabilities and valuation allowance, of $511.4 million and $645.3 million , respectively. The accounting for deferred taxes is based upon estimates of future results. Differences between estimated and actual results could result in changes in the valuation of deferred tax assets that could have a material impact on our consolidated results of operations or financial position. Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. At June 30, 2018 and December 31, 2017 , we had $19.9 million and $48.6 million , respectively, of gross unrecognized tax benefits and $5.2 million and $4.9 million , respectively, of related accrued interest and penalties. It is reasonably possible within the next twelve months that our gross unrecognized tax benefits may decrease by up to $11.2 million |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value disclosures | Fair value disclosures ASC 820, “Fair Value Measurements and Disclosures,” provides a framework for measuring fair value in generally accepted accounting principles 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 fair value hierarchy can be summarized as follows: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value June 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 369,634 $ 570,600 Interest rate lock commitments Level 2 11,634 5,583 Forward contracts Level 2 (2,240 ) (385 ) Whole loan commitments Level 2 406 (147 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 1,631 $ 11,045 Land held for sale Level 2 5,279 8,600 Disclosed at fair value: Cash, cash equivalents, and restricted cash Level 1 $ 401,915 $ 306,168 Financial Services debt Level 2 264,043 437,804 Other notes payable Level 2 18,842 20,024 Senior notes payable Level 2 2,979,498 3,243,750 Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, and forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. Fair values for whole loan commitments are based on market prices for similar instruments from the specific whole loan investor. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 2 for the valuation techniques and inputs applied in determining the fair value of house and land inventory and land held for sale. The carrying amounts of cash and equivalents, Financial Services debt, and other notes payable approximate their fair values due to their short-term nature and/or floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. The carrying value of senior notes was $3.0 billion at both June 30, 2018 and December 31, 2017 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Loan origination liabilities Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. In addition, certain trustees and investors continue to attempt to collect damages based on losses from loans that originated prior to 2009. Some of our mortgage subsidiaries are currently defendants in litigation related to such claims. Our recorded liabilities for all such claims totaled $34.5 million and $34.6 million at June 30, 2018 and December 31, 2017 , respectively. Determining the liabilities for anticipated losses requires a significant level of management judgment. Given the nature of these claims and the uncertainty regarding their ultimate resolution, actual costs could differ from our current estimates. Letters of credit and surety bonds In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $214.6 million and $1.2 billion , respectively, at June 30, 2018 and $235.5 million and $1.2 billion , respectively, at December 31, 2017 . In the event any such letter of credit or surety bond is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe that a material amount, if any, of the letters of credit or surety bonds will be drawn. Our surety bonds generally do not have stated expiration dates; rather we are released from the surety bonds as the underlying contractual performance is completed. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed. Litigation and regulatory matters We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. Allowance for warranties Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to and, in limited instances, exceeding 10 years. We estimate the costs to be incurred under these warranties and record liabilities in the amount of such costs at the time product revenue is recognized. Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the cost per claim. We periodically assess the adequacy of the warranty liabilities for each geographic market in which we operate and adjust the amounts as necessary. Actual warranty costs in the future could differ from the current estimates. Changes to warranty liabilities were as follows ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Warranty liabilities, beginning of period $ 70,986 $ 64,681 $ 72,709 $ 66,134 Reserves provided 15,731 12,446 27,647 23,088 Payments (17,129 ) (16,815 ) (31,411 ) (28,914 ) Other adjustments (a) 2,581 13,041 3,224 13,045 Warranty liabilities, end of period $ 72,169 $ 73,353 $ 72,169 $ 73,353 (a) During the three and six months ended June 30, 2017 , we recognized a charge of $12.1 million related to estimated costs to complete repairs in a closed-out community in Florida. Self-insured risks We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers' compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits. Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require us to maintain significant per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program provided by us. Policies issued by our captive insurance subsidiaries represent self-insurance of these risks by us. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. Our insurance coverage requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omissions, workers' compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. Our recorded reserves for all such claims totaled $725.5 million and $758.8 million at June 30, 2018 and December 31, 2017 , respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 62% and 65% of the total general liability reserves at June 30, 2018 and December 31, 2017 , respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses. Housing market conditions have been volatile across most of our markets over the past ten years, and we believe such conditions can affect the frequency and cost of construction defect claims. Additionally, IBNR estimates comprise the majority of our liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in claims reporting and resolution patterns, third party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are reported and resolved over an extended period often exceeding ten years. Changes in the frequency and timing of reported claims and estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Additionally, the amount of insurance coverage available for each policy period also impacts our recorded reserves. Because of the inherent uncertainty in estimating future losses and the timing of such losses related to these claims, actual costs could differ significantly from estimated costs. Adjustments to reserves are recorded in the period in which the change in estimate occurs. We reduced general liability reserves by $37.9 million during the three and six months ended June 30, 2018 and $19.8 million during the three and six months ended June 30, 2017 . These reductions were the result of changes in estimates driven by claim experience being less than anticipated in previous actuarial projections. These changes in actuarial estimates did not involve any changes in actuarial methodology but did impact the development of estimates for future periods, which resulted in adjustments to the IBNR portion of our recorded liabilities. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Balance, beginning of period $ 771,104 $ 835,326 $ 758,812 $ 831,058 Reserves provided, net 23,235 23,411 42,895 43,126 Adjustments to previously recorded reserves (a) (37,529 ) (19,813 ) (35,068 ) (21,793 ) Payments, net (b) (31,328 ) (24,168 ) (41,157 ) (37,635 ) Balance, end of period $ 725,482 $ 814,756 $ 725,482 $ 814,756 (a) Includes general liability reserve reversals of $37.9 million for the three and six months ended June 30, 2018 and $19.8 million for the three and six months ended June 30, 2017 . (b) Includes net changes in amounts expected to be recovered from our insurance carriers, which are recorded in other assets (see below). In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. Such receivables are recorded in other assets and totaled $155.3 million and $213.4 million at June 30, 2018 and December 31, 2017 , respectively. The insurance receivables relate to costs incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of construction defect claims that we believe are insured. Given the complexity inherent with resolving construction defect claims in the homebuilding industry as described above, there generally exists a significant lag between our payment of claims and our reimbursements from applicable insurance carriers. In addition, disputes between homebuilders and carriers over coverage positions relating to construction defect claims are common. Resolution of claims with carriers involves the exchange of significant amounts of information and frequently involves legal action. During the six months ended June 30, 2017 , we wrote-off $15.0 million of insurance receivables in conjunction with settling insurance policies with multiple carriers covering multiple years. At June 30, 2018 , we are the plaintiff in an arbitration proceeding with one of our insurance carriers in regard to $22.3 million |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor information | Supplemental Guarantor information All of our senior notes are guaranteed jointly and severally on a senior basis by certain of our wholly-owned Homebuilding subsidiaries and certain other wholly-owned subsidiaries (collectively, the “Guarantors”). Such guaranties are full and unconditional. Our subsidiaries comprising the Financial Services segment along with certain other subsidiaries (collectively, the "Non-Guarantor Subsidiaries") do not guarantee the senior notes. In accordance with Rule 3-10 of Regulation S-X, supplemental consolidating financial information of the Company, including such information for the Guarantors, is presented below. Investments in subsidiaries are presented using the equity method of accounting. CONDENSED CONSOLIDATING BALANCE SHEET JUNE 30, 2018 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 318,811 $ 48,280 $ — $ 367,091 Restricted cash — 33,634 1,190 — 34,824 Total cash, cash equivalents, and — 352,445 49,470 — 401,915 House and land inventory — 7,402,692 96,973 — 7,499,665 Land held for sale — 77,941 — — 77,941 Residential mortgage loans available- — — 369,634 — 369,634 Investments in unconsolidated entities — 61,182 536 — 61,718 Other assets 17,108 576,371 165,751 — 759,230 Intangible assets — 134,092 — — 134,092 Deferred tax assets, net 519,188 — (7,807 ) — 511,381 Investments in subsidiaries and 7,084,815 288,223 7,967,379 (15,340,417 ) — $ 7,621,111 $ 8,892,946 $ 8,641,936 $ (15,340,417 ) $ 9,815,576 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 85,067 $ 1,661,695 $ 249,885 $ — $ 1,996,647 Income tax liabilities 22,484 — — — 22,484 Financial Services debt — — 264,043 — 264,043 Notes payable 2,986,848 17,962 880 — 3,005,690 Total liabilities 3,094,399 1,679,657 514,808 — 5,288,864 Total shareholders’ equity 4,526,712 7,213,289 8,127,128 (15,340,417 ) 4,526,712 $ 7,621,111 $ 8,892,946 $ 8,641,936 $ (15,340,417 ) $ 9,815,576 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 125,462 $ 147,221 $ — $ 272,683 Restricted cash — 32,339 1,146 — 33,485 Total cash, cash equivalents, and — 157,801 148,367 — 306,168 House and land inventory — 7,053,087 94,043 — 7,147,130 Land held for sale — 68,384 — — 68,384 Residential mortgage loans available- — — 570,600 — 570,600 Investments in unconsolidated entities — 62,415 542 — 62,957 Other assets 9,417 592,045 143,661 — 745,123 Intangible assets — 140,992 — — 140,992 Deferred tax assets, net 646,227 — (932 ) — 645,295 Investments in subsidiaries and 6,661,638 284,983 7,300,127 (14,246,748 ) — $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 89,388 $ 1,636,913 $ 274,626 $ — $ 2,000,927 Income tax liabilities 86,925 — — — 86,925 Financial Services debt — — 437,804 — 437,804 Notes payable 2,986,943 16,911 3,113 — 3,006,967 Total liabilities 3,163,256 1,653,824 715,543 — 5,532,623 Total shareholders’ equity 4,154,026 6,705,883 7,540,865 (14,246,748 ) 4,154,026 $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended June 30, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 2,421,643 $ 28,411 $ — $ 2,450,054 Land sale and other revenues — 66,418 486 — 66,904 — 2,488,061 28,897 — 2,516,958 Financial Services — — 52,764 — 52,764 — 2,488,061 81,661 — 2,569,722 Homebuilding Cost of Revenues: Home sale cost of revenues — (1,840,487 ) (21,646 ) — (1,862,133 ) Land sale cost of revenues — (37,884 ) (299 ) — (38,183 ) — (1,878,371 ) (21,945 ) — (1,900,316 ) Financial Services expenses — (133 ) (32,091 ) — (32,224 ) Selling, general, and administrative — (221,590 ) (4,466 ) — (226,056 ) Other expense, net (196 ) (13,436 ) 11,676 — (1,956 ) Intercompany interest (2,085 ) — 2,085 — — Income (loss) before income taxes and (2,281 ) 374,531 36,920 — 409,170 Income tax (expense) benefit 547 (75,977 ) (9,651 ) — (85,081 ) Income (loss) before equity in income (1,734 ) 298,554 27,269 — 324,089 Equity in income (loss) of subsidiaries 325,823 24,504 258,352 (608,679 ) — Net income (loss) 324,089 323,058 285,621 (608,679 ) 324,089 Other comprehensive income 30 — — — 30 Comprehensive income (loss) $ 324,119 $ 323,058 $ 285,621 $ (608,679 ) $ 324,119 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended June 30, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,945,312 $ 20,329 $ — $ 1,965,641 Land sale and other revenues — 7,399 1,545 — 8,944 — 1,952,711 21,874 — 1,974,585 Financial Services — — 47,275 — 47,275 — 1,952,711 69,149 — 2,021,860 Homebuilding Cost of Revenues: Home sale cost of revenues — (1,533,402 ) (16,535 ) — (1,549,937 ) Land sale cost of revenues — (86,408 ) (1,191 ) — (87,599 ) — (1,619,810 ) (17,726 ) — (1,637,536 ) Financial Services expenses — (124 ) (28,354 ) — (28,478 ) Selling, general, and administrative — (210,110 ) (6,101 ) — (216,211 ) Other expense, net (129 ) (23,877 ) 6,918 — (17,088 ) Intercompany interest (544 ) — 544 — — Income (loss) before income taxes and (673 ) 98,790 24,430 — 122,547 Income tax (expense) benefit 256 (12,733 ) (9,321 ) — (21,798 ) Income (loss) before equity in income (417 ) 86,057 15,109 — 100,749 Equity in income (loss) of subsidiaries 101,166 11,013 45,621 (157,800 ) — Net income (loss) 100,749 97,070 60,730 (157,800 ) 100,749 Other comprehensive income 20 — — — 20 Comprehensive income (loss) $ 100,769 $ 97,070 $ 60,730 $ (157,800 ) $ 100,769 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the six months ended June 30, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 4,316,500 $ 45,152 $ — $ 4,361,652 Land sale and other revenues — 77,977 1,484 — 79,461 — 4,394,477 46,636 — 4,441,113 Financial Services — — 98,702 — 98,702 — 4,394,477 145,338 — 4,539,815 Homebuilding Cost of Revenues: Home sale cost of revenues — (3,286,043 ) (36,030 ) — (3,322,073 ) Land sale cost of revenues — (48,714 ) (1,017 ) — (49,731 ) — (3,334,757 ) (37,047 ) — (3,371,804 ) Financial Services expenses — (275 ) (64,161 ) — (64,436 ) Selling, general, and administrative — (453,535 ) (13,415 ) — (466,950 ) Other expense, net (336 ) (21,037 ) 18,110 — (3,263 ) Intercompany interest (3,553 ) — 3,553 — — Income (loss) before income taxes and (3,889 ) 584,873 52,378 — 633,362 Income tax (expense) benefit 934 (125,508 ) (13,947 ) — (138,521 ) Income (loss) before equity in income (2,955 ) 459,365 38,431 — 494,841 Equity in income (loss) of subsidiaries 497,796 37,068 369,023 (903,887 ) — Net income (loss) 494,841 496,433 407,454 (903,887 ) 494,841 Other comprehensive income 50 — — — 50 Comprehensive income (loss) $ 494,891 $ 496,433 $ 407,454 $ (903,887 ) $ 494,891 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the six months ended June 30, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 3,521,958 $ 29,105 $ — $ 3,551,063 Land sale and other revenues — 9,311 2,321 — 11,632 — 3,531,269 31,426 — 3,562,695 Financial Services — — 89,042 — 89,042 — 3,531,269 120,468 — 3,651,737 Homebuilding Cost of Revenues: Home sale cost of revenues — (2,743,042 ) (24,573 ) — (2,767,615 ) Land sale cost of revenues — (89,004 ) (1,823 ) — (90,827 ) — (2,832,046 ) (26,396 ) — (2,858,442 ) Financial Services expenses — (263 ) (56,583 ) — (56,846 ) Selling, general, and administrative — (428,085 ) (24,394 ) — (452,479 ) Other expense, net (259 ) (36,763 ) 14,865 — (22,157 ) Intercompany interest (878 ) — 878 — — Income (loss) before income taxes and (1,137 ) 234,112 28,838 — 261,813 Income tax (expense) benefit 432 (58,658 ) (11,319 ) — (69,545 ) Income (loss) before equity in income (705 ) 175,454 17,519 — 192,268 Equity in income (loss) of subsidiaries 192,973 18,266 82,930 (294,169 ) — Net income (loss) 192,268 193,720 100,449 (294,169 ) 192,268 Other comprehensive income 41 — — — 41 Comprehensive income (loss) $ 192,309 $ 193,720 $ 100,449 $ (294,169 ) $ 192,309 CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 259,028 $ 63,775 $ 224,779 $ — $ 547,582 Cash flows from investing activities: Capital expenditures — (28,908 ) (4,151 ) — (33,059 ) Investments in unconsolidated entities — (1,000 ) — — (1,000 ) Other investing activities, net — 5,759 1,156 — 6,915 Net cash provided by (used in) — (24,149 ) (2,995 ) — (27,144 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (173,761 ) — (173,761 ) Repayments of debt — (81,758 ) (674 ) — (82,432 ) Borrowings under revolving credit facility 1,566,000 — — — 1,566,000 Repayments under revolving credit facility (1,566,000 ) — — — (1,566,000 ) Debt issuance costs (8,090 ) — — — (8,090 ) Stock option exercises 4,467 — — — 4,467 Share repurchases (112,491 ) — — — (112,491 ) Dividends paid (52,384 ) — — — (52,384 ) Intercompany activities, net (90,530 ) 236,776 (146,246 ) — — Net cash provided by (used in) (259,028 ) 155,018 (320,681 ) — (424,691 ) Net increase (decrease) — 194,644 (98,897 ) — 95,747 Cash, cash equivalents, and restricted cash — 157,801 148,367 — 306,168 Cash, cash equivalents, and restricted cash $ — $ 352,445 $ 49,470 $ — $ 401,915 CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 58,415 $ (29,931 ) $ 147,842 $ — $ 176,326 Cash flows from investing activities: Capital expenditures — (14,346 ) (2,546 ) — (16,892 ) Investments in unconsolidated entities — (17,832 ) — — (17,832 ) Other investing activities, net — 2,874 269 — 3,143 Net cash provided by (used in) — (29,304 ) (2,277 ) — (31,581 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (177,918 ) — (177,918 ) Repayments of debt — (1,382 ) (771 ) — (2,153 ) Borrowings under revolving credit facility 110,000 — — — 110,000 Repayments under revolving credit facility (110,000 ) — — — (110,000 ) Stock option exercises 15,966 — — — 15,966 Share repurchases (405,819 ) — — — (405,819 ) Dividends paid (58,214 ) — — — (58,214 ) Intercompany activities, net 389,652 (360,529 ) (29,123 ) — — Net cash provided by (used in) (58,415 ) (361,911 ) (207,812 ) — (628,138 ) Net increase (decrease) — (421,146 ) (62,247 ) — (483,393 ) Cash, cash equivalents, and restricted cash — 611,185 112,063 — 723,248 Cash, cash equivalents, and restricted cash $ — $ 190,039 $ 49,816 $ — $ 239,855 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation policy | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 |
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current year presentation |
Subsequent events | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission (the "SEC"). |
Revenue recognition | Revenue recognition Home sale revenues - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities include customer deposit liabilities related to sold but undelivered homes, which totaled 355.0 million and 250.8 million at June 30, 2018 and December 31, 2017 , respectively. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. See Note 8 for information on warranties and related obligations. Land sale revenues - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied. During the three and six months ended June 30, 2018 , we closed on a number of land sale transactions that generated gains totaling $27.3 million , as the proceeds from the sales exceeded the cost basis of the land. All performance obligations related to these transactions were satisfied at closing. Financial services revenues - Loan origination fees, commitment fees, and certain direct loan origination costs are recognized as incurred. Expected gains and losses from the sale of residential mortgage loans and their related servicing rights are included in the measurement of written loan commitments that are accounted for at fair value through Financial Services revenues at the time of commitment. Subsequent changes in the fair value of these loans are reflected in Financial Services revenues as they occur. Interest income is accrued from the date a mortgage loan is originated until the loan is sold. Mortgage servicing fees represent fees earned for servicing loans for various investors. Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received or the sub-servicing fees are earned. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Insurance brokerage commissions relate to commissions on homeowner and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are satisfied upon issuance of the initial policy. The contract assets for estimated future renewal commissions are included in other assets and totaled $29.8 million at June 30, 2018 . Contract assets totaling $27.7 million were recognized on January 1, 2018, in conjunction with the adoption of Accounting Standards Codification 606, "Revenue from Contracts with Customers" ("ASC 606"). Refer to " New accounting pronouncements" within Note 1 |
Earnings per share | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares outstanding, adjusted for unvested shares (the “Denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the Denominator is increased to include the dilutive effects of stock options, unvested restricted shares, unvested restricted share units, and other potentially dilutive instruments. Any stock options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. |
Residential mortgage loans available-for-sale | Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days . At June 30, 2018 and December 31, 2017 , residential mortgage loans available-for-sale had an aggregate fair value of $369.6 million and $570.6 million , respectively, and an aggregate outstanding principal balance of $359.2 million and $553.5 million , respectively. The net gain (loss) resulting from changes in fair value of these loans totaled $(0.2) million and $(2.2) million for the three months ended June 30, 2018 and 2017 , respectively, and $(0.3) million and $(4.1) million for the six months ended June 30, 2018 and 2017 , respectively. These changes in fair value were substantially offset by changes in the fair value of corresponding hedging instruments. Net gains from the sale of mortgages were $29.2 million and $27.7 million for the three months ended June 30, 2018 and 2017 , respectively, and $56.2 million and $52.9 million for the six months ended June 30, 2018 and 2017 , respectively, and have been included in Financial Services revenues. |
Derivative instruments and hedging activities | We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At June 30, 2018 and December 31, 2017 , we had aggregate IRLCs of $426.5 million and $210.9 million , respectively, which were originated at interest rates prevailing at the date of commitment. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. We evaluate the creditworthiness of these transactions through our normal credit policies. We hedge our exposure to interest rate market risk relating to residential mortgage loans available-for-sale and IRLCs using forward contracts on mortgage-backed securities, which are commitments to either purchase or sell a specified financial instrument at a specified future date for a specified price, and whole loan investor commitments, which are obligations of an investor to buy loans at a specified price within a specified time period. Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor. At June 30, 2018 and December 31, 2017 , we had unexpired forward contracts of $568.0 million and $522.0 million , respectively, and whole loan investor commitments of $186.7 million and $203.1 million , respectively. Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable. There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on IRLCs and residential mortgage loans available-for-sale are substantially offset by corresponding gains or losses on forward contracts on mortgage-backed securities and whole loan investor commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 60 |
New accounting pronouncements | On January 1, 2018, we adopted ASC 606, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. We applied the modified retrospective method to contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the previous accounting standards. We recorded a net increase to opening retained earnings of $22.4 million , net of tax, as of January 1, 2018, due to the cumulative impact of adopting ASC 606, with the impact primarily related to the recognition of contract assets for insurance brokerage commission renewals. There was not a material impact to revenues as a result of applying ASC 606 for the six months ended June 30, 2018 , and there have not been significant changes to our business processes, systems, or internal controls as a result of implementing the standard. We adopted Accounting Standards Update ("ASU") No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), as of January 1, 2018, on a retrospective basis. The ASU addresses several specific cash flow issues. The adoption of ASU 2016-15 had no effect on our financial statements. In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 is effective for us for annual and interim periods beginning January 1, 2019, and early adoption is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application. While the recognition of right-of-use assets and related liabilities will have a material effect on our consolidated balance sheets, we do not expect a material impact on our consolidated statements of operations. The FASB also issued ASU No. 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842", which provides guidance on specific transition issues. We continue to evaluate the full impact of the new standards, including the impact on our business processes, systems, and internal controls. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology and also requires that credit losses from available-for-sale debt securities be presented as an allowance instead of a write-down. ASU 2016-13 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and requires full retrospective application on adoption. We are currently evaluating the impact the standard will have on our financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which removes the requirement to perform a hypothetical purchase |
Inventory interest capitalization | We capitalize interest cost into inventory during the active development and construction of our communities. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. |
Fair value of financial instruments | Fair values for agency residential mortgage loans available-for-sale are determined based on quoted market prices for comparable instruments. Fair values for non-agency residential mortgage loans available-for-sale are determined based on purchase commitments from whole loan investors and other relevant market information available to management. Fair values for interest rate lock commitments, including the value of servicing rights, and forward contracts on mortgage-backed securities are valued based on market prices for similar instruments. Fair values for whole loan commitments are based on market prices for similar instruments from the specific whole loan investor. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The non-recurring fair values included in the above table represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates. See Note 2 for the valuation techniques and inputs applied in determining the fair value of house and land inventory and land held for sale. The carrying amounts of cash and equivalents, Financial Services debt, and other notes payable approximate their fair values due to their short-term nature and/or floating interest rate terms. The fair values of senior notes are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of similar issues. The carrying value of senior notes was $3.0 billion at both June 30, 2018 and December 31, 2017 |
Letters of credit and surety bonds | In the normal course of business, we post letters of credit and surety bonds pursuant to certain performance-related obligations, as security for certain land option agreements, and under various insurance programs. The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. We had outstanding letters of credit and surety bonds totaling $214.6 million and $1.2 billion , respectively, at June 30, 2018 and $235.5 million and $1.2 billion , respectively, at December 31, 2017 |
Legal reserves | We are involved in various litigation and legal claims in the normal course of our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations. We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. However, to the extent the liability arising from the ultimate resolution of any matter exceeds the estimates reflected in the recorded reserves relating to such matter, we could incur additional charges that could be significant. |
Self insured risks | Self-insured risks We maintain, and require our subcontractors to maintain, general liability insurance coverage. We also maintain builders' risk, property, errors and omissions, workers' compensation, and other business insurance coverage. These insurance policies protect us against a portion of the risk of loss from claims. However, we retain a significant portion of the overall risk for such claims either through policies issued by our captive insurance subsidiaries or through our own self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits. Our general liability insurance includes coverage for certain construction defects. While construction defect claims can relate to a variety of circumstances, the majority of our claims relate to alleged problems with siding, plumbing, foundations and other concrete work, windows, roofing, and heating, ventilation and air conditioning systems. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require us to maintain significant per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program provided by us. Policies issued by our captive insurance subsidiaries represent self-insurance of these risks by us. This self-insured exposure is limited by reinsurance policies that we purchase. General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year. Our insurance coverage requires a per occurrence deductible up to an overall aggregate retention level. Beginning with the first dollar, amounts paid to satisfy insured claims apply to our per occurrence and aggregate retention obligations. Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to our purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated underwriters for whom we believe counterparty default risk is not significant. At any point in time, we are managing over 1,000 individual claims related to general liability, property, errors and omissions, workers' compensation, and other business insurance coverage. We reserve for costs associated with such claims (including expected claims management expenses) on an undiscounted basis at the time revenue is recognized for each home closing and evaluate the recorded liabilities based on actuarial analyses of our historical claims. The actuarial analyses calculate estimates of the ultimate net cost of all unpaid losses, including estimates for incurred but not reported losses ("IBNR"). IBNR represents losses related to claims incurred but not yet reported plus development on reported claims. Our recorded reserves for all such claims totaled $725.5 million and $758.8 million at June 30, 2018 and December 31, 2017 , respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses. Liabilities related to IBNR and related claim expenses represented approximately 62% and 65% of the total general liability reserves at June 30, 2018 and December 31, 2017 , respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of the reserves also consider historical third party recovery rates and claims management expenses. Housing market conditions have been volatile across most of our markets over the past ten years, and we believe such conditions can affect the frequency and cost of construction defect claims. Additionally, IBNR estimates comprise the majority of our liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in claims reporting and resolution patterns, third party recoveries, insurance industry practices, the regulatory environment, and legal precedent. State regulations vary, but construction defect claims are reported and resolved over an extended period often exceeding ten years. Changes in the frequency and timing of reported claims and estimates of specific claim values can impact the underlying inputs and trends utilized in the actuarial analyses, which could have a material impact on the recorded reserves. Additionally, the amount of insurance coverage available for each policy period also impacts our recorded reserves. Because of the inherent uncertainty in estimating future losses and the timing of such losses related to these claims, actual costs could differ significantly from estimated costs. Adjustments to reserves are recorded in the period in which the change in estimate occurs. We reduced general liability reserves by $37.9 million during the three and six months ended June 30, 2018 and $19.8 million during the three and six months ended June 30, 2017 . These reductions were the result of changes in estimates driven by claim experience being less than anticipated in previous actuarial projections. These changes in actuarial estimates did not involve any changes in actuarial methodology but did impact the development of estimates for future periods, which resulted in adjustments to the IBNR portion of our recorded liabilities. |
Allowance for warranties | Allowance for warranties Home purchasers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to and, in limited instances, exceeding 10 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense, net consists of the following ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Write-offs of deposits and pre-acquisition costs $ (1,652 ) $ (5,063 ) $ (4,261 ) $ (6,718 ) Amortization of intangible assets (3,450 ) (3,450 ) (6,900 ) (6,900 ) Interest income 835 599 1,399 1,432 Interest expense (165 ) (134 ) (308 ) (271 ) Equity in earnings (losses) of unconsolidated entities (a) 265 (5,763 ) 1,226 (4,569 ) Miscellaneous, net 2,211 (3,277 ) 5,581 (5,131 ) Total other expense, net $ (1,956 ) $ (17,088 ) $ (3,263 ) $ (22,157 ) |
Schedule of Earnings Per Share | The following table presents the earnings per common share (000's omitted, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net income $ 324,089 $ 100,749 $ 494,841 $ 192,268 Less: earnings distributed to participating securities (300 ) (300 ) (595 ) (605 ) Less: undistributed earnings allocated to participating securities (3,284 ) (772 ) (2,584 ) (1,330 ) Numerator for basic earnings per share $ 320,505 $ 99,677 $ 491,662 $ 190,333 Add back: undistributed earnings allocated to participating securities 3,284 772 2,584 1,330 Less: undistributed earnings reallocated to participating securities (3,268 ) (768 ) (2,575 ) (1,322 ) Numerator for diluted earnings per share $ 320,521 $ 99,681 $ 491,671 $ 190,341 Denominator: Basic shares outstanding 285,276 312,315 285,976 315,021 Effect of dilutive securities 1,378 1,565 1,088 1,946 Diluted shares outstanding 286,654 313,880 287,064 316,967 Earnings per share: Basic $ 1.12 $ 0.32 $ 1.72 $ 0.60 Diluted $ 1.12 $ 0.32 $ 1.71 $ 0.60 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted): June 30, 2018 December 31, 2017 Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities Interest rate lock commitments $ 12,139 $ 505 $ 5,990 $ 407 Forward contracts 189 2,429 432 817 Whole loan commitments 721 315 794 941 $ 13,049 $ 3,249 $ 7,216 $ 2,165 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory were as follows ($000’s omitted): June 30, December 31, Homes under construction $ 2,922,260 $ 2,421,405 Land under development 4,045,615 4,135,814 Raw land 531,790 589,911 $ 7,499,665 $ 7,147,130 |
Capitalized Interest Rollforward | Information related to interest capitalized into inventory is as follows ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest in inventory, beginning of period $ 240,013 $ 203,828 $ 226,611 $ 186,097 Interest capitalized 43,771 44,949 87,731 89,872 Interest expensed (40,157 ) (35,927 ) (70,715 ) (63,119 ) Interest in inventory, end of period $ 243,627 $ 212,850 $ 243,627 $ 212,850 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements as of June 30, 2018 and December 31, 2017 ($000’s omitted): June 30, 2018 December 31, 2017 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 73,940 $ 1,145,136 $ 78,889 $ 977,480 Other land options 144,497 1,603,950 129,098 1,485,099 $ 218,437 $ 2,749,086 $ 207,987 $ 2,462,579 |
Schedule Of Impairment Losses | We recorded the following significant land-related charges in the three months ended June 30, 2017 ($000's omitted): Statement of Operations Classification June 30, 2017 Net realizable value adjustments ("NRV") - land held for sale Land sale cost of revenues $ 81,006 Land inventory impairments Home sale cost of revenues 31,487 Impairments of unconsolidated entities Other expense, net 8,017 Write-offs of deposits and pre-acquisition costs Other expense, net 5,063 Total land-related charges $ 125,573 |
Schedule of Fair Value Inputs | The table below summarizes certain quantitative unobservable inputs utilized in determining the fair value of impairments recorded in the three months ended June 30, 2017: Range June 30, 2017 Average selling price ($000s) $253 to $461 Sales pace per quarter (units) 5 to 9 Discount rate 18% to 25% |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Components of Reportable Segments | For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio Texas: Texas West: Arizona, California, Nevada, New Mexico, Washington |
Operating Data By Reporting Segment | Operating Data by Segment Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues: Northeast $ 200,626 $ 148,303 $ 333,062 $ 256,904 Southeast 445,506 381,132 820,129 710,244 Florida 455,637 363,421 804,346 677,717 Midwest 356,466 357,985 653,972 602,491 Texas 330,692 288,669 577,331 523,210 West 728,031 435,075 1,252,273 792,129 2,516,958 1,974,585 4,441,113 3,562,695 Financial Services 52,764 47,275 98,702 89,042 Consolidated revenues $ 2,569,722 $ 2,021,860 $ 4,539,815 $ 3,651,737 Income (loss) before income taxes (d) : Northeast $ 25,158 $ (38,249 ) $ 34,470 $ (33,849 ) Southeast 54,357 40,274 94,814 72,640 Florida (a) 67,491 36,110 112,436 80,633 Midwest 43,050 37,573 71,451 55,827 Texas 50,859 46,522 81,395 79,318 West (b) 154,414 (1,850 ) 243,619 32,234 Other homebuilding (c) (6,876 ) (16,781 ) (39,374 ) (57,441 ) 388,453 103,599 598,811 229,362 Financial Services 20,717 18,948 34,551 32,451 Consolidated income before income taxes $ 409,170 $ 122,547 $ 633,362 $ 261,813 (a) Florida includes a warranty charge of $12.1 million for the three and six months ended June 30, 2017 related to a closed-out community (see Note 8 ). (b) West includes gains of $26.4 million related to two land sale transactions in California that closed in the three and six months ended June 30, 2018 . (c) Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the operating segments. Other homebuilding also includes insurance reserve reversals of $37.9 million and $19.8 million for the three and six months ended June 30, 2018 and 2017 , respectively, and a write-off of $15.0 million of insurance receivables associated with the resolution of certain insurance matters in the six months ended June 30, 2017 (see Note 8 |
Total Assets And Inventory By Reporting Segment | Operating Data by Segment ($000's omitted) June 30, 2018 Homes Under Land Under Raw Land Total Total Northeast $ 298,241 $ 272,358 $ 73,577 $ 644,176 $ 811,067 Southeast 506,116 633,489 78,183 1,217,788 1,355,703 Florida 488,392 879,165 97,481 1,465,038 1,602,996 Midwest 371,665 420,733 28,727 821,125 909,295 Texas 332,420 417,251 88,727 838,398 915,707 West 869,845 1,161,466 143,544 2,174,855 2,357,858 Other homebuilding (a) 55,581 261,153 21,551 338,285 1,389,431 2,922,260 4,045,615 531,790 7,499,665 9,342,057 Financial Services — — — — 473,519 $ 2,922,260 $ 4,045,615 $ 531,790 $ 7,499,665 $ 9,815,576 Operating Data by Segment ($000's omitted) December 31, 2017 Homes Under Land Under Raw Land Total Total Northeast $ 234,413 $ 327,599 $ 73,574 $ 635,586 $ 791,511 Southeast 433,411 613,626 121,238 1,168,275 1,287,992 Florida 359,651 876,856 109,069 1,345,576 1,481,837 Midwest 299,896 476,694 28,482 805,072 877,282 Texas 251,613 435,018 87,392 774,023 859,847 West 798,706 1,137,940 147,493 2,084,139 2,271,328 Other homebuilding (a) 43,715 268,081 22,663 334,459 1,469,234 2,421,405 4,135,814 589,911 7,147,130 9,039,031 Financial Services — — — — 647,618 $ 2,421,405 $ 4,135,814 $ 589,911 $ 7,147,130 $ 9,686,649 (a) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our senior notes are summarized as follows ($000’s omitted): June 30, December 31, 4.250% unsecured senior notes due March 2021 (a) $ 700,000 $ 700,000 5.500% unsecured senior notes due March 2026 (a) 700,000 700,000 5.000% unsecured senior notes due January 2027 (a) 600,000 600,000 7.875% unsecured senior notes due June 2032 (a) 300,000 300,000 6.375% unsecured senior notes due May 2033 (a) 400,000 400,000 6.000% unsecured senior notes due February 2035 (a) 300,000 300,000 Net premiums, discounts, and issuance costs (b) (13,152 ) (13,057 ) Total senior notes 2,986,848 2,986,943 Other notes payable 18,842 20,024 Notes payable $ 3,005,690 $ 3,006,967 Estimated fair value $ 2,998,340 $ 3,263,774 (a) Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. (b) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value June 30, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 $ 369,634 $ 570,600 Interest rate lock commitments Level 2 11,634 5,583 Forward contracts Level 2 (2,240 ) (385 ) Whole loan commitments Level 2 406 (147 ) Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 1,631 $ 11,045 Land held for sale Level 2 5,279 8,600 Disclosed at fair value: Cash, cash equivalents, and restricted cash Level 1 $ 401,915 $ 306,168 Financial Services debt Level 2 264,043 437,804 Other notes payable Level 2 18,842 20,024 Senior notes payable Level 2 2,979,498 3,243,750 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Loan Origination Liability | Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. In addition, certain trustees and investors continue to attempt to collect damages based on losses from loans that originated prior to 2009. Some of our mortgage subsidiaries are currently defendants in litigation related to such claims. Our recorded liabilities for all such claims totaled $34.5 million and $34.6 million at June 30, 2018 and December 31, 2017 , respectively. Determining the liabilities for anticipated losses requires a significant level of management judgment. Given the nature of these claims and the uncertainty regarding their ultimate resolution, actual costs could differ from our current estimates. |
Summary of Changes in Warranty Liability | Changes to warranty liabilities were as follows ($000’s omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Warranty liabilities, beginning of period $ 70,986 $ 64,681 $ 72,709 $ 66,134 Reserves provided 15,731 12,446 27,647 23,088 Payments (17,129 ) (16,815 ) (31,411 ) (28,914 ) Other adjustments (a) 2,581 13,041 3,224 13,045 Warranty liabilities, end of period $ 72,169 $ 73,353 $ 72,169 $ 73,353 (a) During the three and six months ended June 30, 2017 , we recognized a charge of $12.1 million related to estimated costs to complete repairs in a closed-out community in Florida. |
Summary of Changes in Self-Insurance Liability | Changes in these liabilities were as follows ($000's omitted): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Balance, beginning of period $ 771,104 $ 835,326 $ 758,812 $ 831,058 Reserves provided, net 23,235 23,411 42,895 43,126 Adjustments to previously recorded reserves (a) (37,529 ) (19,813 ) (35,068 ) (21,793 ) Payments, net (b) (31,328 ) (24,168 ) (41,157 ) (37,635 ) Balance, end of period $ 725,482 $ 814,756 $ 725,482 $ 814,756 |
Supplemental Guarantor Inform23
Supplemental Guarantor Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor Information [Abstract] | |
Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET JUNE 30, 2018 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 318,811 $ 48,280 $ — $ 367,091 Restricted cash — 33,634 1,190 — 34,824 Total cash, cash equivalents, and — 352,445 49,470 — 401,915 House and land inventory — 7,402,692 96,973 — 7,499,665 Land held for sale — 77,941 — — 77,941 Residential mortgage loans available- — — 369,634 — 369,634 Investments in unconsolidated entities — 61,182 536 — 61,718 Other assets 17,108 576,371 165,751 — 759,230 Intangible assets — 134,092 — — 134,092 Deferred tax assets, net 519,188 — (7,807 ) — 511,381 Investments in subsidiaries and 7,084,815 288,223 7,967,379 (15,340,417 ) — $ 7,621,111 $ 8,892,946 $ 8,641,936 $ (15,340,417 ) $ 9,815,576 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 85,067 $ 1,661,695 $ 249,885 $ — $ 1,996,647 Income tax liabilities 22,484 — — — 22,484 Financial Services debt — — 264,043 — 264,043 Notes payable 2,986,848 17,962 880 — 3,005,690 Total liabilities 3,094,399 1,679,657 514,808 — 5,288,864 Total shareholders’ equity 4,526,712 7,213,289 8,127,128 (15,340,417 ) 4,526,712 $ 7,621,111 $ 8,892,946 $ 8,641,936 $ (15,340,417 ) $ 9,815,576 CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 ($000’s omitted) Unconsolidated Eliminating Consolidated PulteGroup, Guarantor Non-Guarantor ASSETS Cash and equivalents $ — $ 125,462 $ 147,221 $ — $ 272,683 Restricted cash — 32,339 1,146 — 33,485 Total cash, cash equivalents, and — 157,801 148,367 — 306,168 House and land inventory — 7,053,087 94,043 — 7,147,130 Land held for sale — 68,384 — — 68,384 Residential mortgage loans available- — — 570,600 — 570,600 Investments in unconsolidated entities — 62,415 542 — 62,957 Other assets 9,417 592,045 143,661 — 745,123 Intangible assets — 140,992 — — 140,992 Deferred tax assets, net 646,227 — (932 ) — 645,295 Investments in subsidiaries and 6,661,638 284,983 7,300,127 (14,246,748 ) — $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable, customer deposits, $ 89,388 $ 1,636,913 $ 274,626 $ — $ 2,000,927 Income tax liabilities 86,925 — — — 86,925 Financial Services debt — — 437,804 — 437,804 Notes payable 2,986,943 16,911 3,113 — 3,006,967 Total liabilities 3,163,256 1,653,824 715,543 — 5,532,623 Total shareholders’ equity 4,154,026 6,705,883 7,540,865 (14,246,748 ) 4,154,026 $ 7,317,282 $ 8,359,707 $ 8,256,408 $ (14,246,748 ) $ 9,686,649 |
Consolidating Statement of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended June 30, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 2,421,643 $ 28,411 $ — $ 2,450,054 Land sale and other revenues — 66,418 486 — 66,904 — 2,488,061 28,897 — 2,516,958 Financial Services — — 52,764 — 52,764 — 2,488,061 81,661 — 2,569,722 Homebuilding Cost of Revenues: Home sale cost of revenues — (1,840,487 ) (21,646 ) — (1,862,133 ) Land sale cost of revenues — (37,884 ) (299 ) — (38,183 ) — (1,878,371 ) (21,945 ) — (1,900,316 ) Financial Services expenses — (133 ) (32,091 ) — (32,224 ) Selling, general, and administrative — (221,590 ) (4,466 ) — (226,056 ) Other expense, net (196 ) (13,436 ) 11,676 — (1,956 ) Intercompany interest (2,085 ) — 2,085 — — Income (loss) before income taxes and (2,281 ) 374,531 36,920 — 409,170 Income tax (expense) benefit 547 (75,977 ) (9,651 ) — (85,081 ) Income (loss) before equity in income (1,734 ) 298,554 27,269 — 324,089 Equity in income (loss) of subsidiaries 325,823 24,504 258,352 (608,679 ) — Net income (loss) 324,089 323,058 285,621 (608,679 ) 324,089 Other comprehensive income 30 — — — 30 Comprehensive income (loss) $ 324,119 $ 323,058 $ 285,621 $ (608,679 ) $ 324,119 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the three months ended June 30, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Revenues: Homebuilding Home sale revenues $ — $ 1,945,312 $ 20,329 $ — $ 1,965,641 Land sale and other revenues — 7,399 1,545 — 8,944 — 1,952,711 21,874 — 1,974,585 Financial Services — — 47,275 — 47,275 — 1,952,711 69,149 — 2,021,860 Homebuilding Cost of Revenues: Home sale cost of revenues — (1,533,402 ) (16,535 ) — (1,549,937 ) Land sale cost of revenues — (86,408 ) (1,191 ) — (87,599 ) — (1,619,810 ) (17,726 ) — (1,637,536 ) Financial Services expenses — (124 ) (28,354 ) — (28,478 ) Selling, general, and administrative — (210,110 ) (6,101 ) — (216,211 ) Other expense, net (129 ) (23,877 ) 6,918 — (17,088 ) Intercompany interest (544 ) — 544 — — Income (loss) before income taxes and (673 ) 98,790 24,430 — 122,547 Income tax (expense) benefit 256 (12,733 ) (9,321 ) — (21,798 ) Income (loss) before equity in income (417 ) 86,057 15,109 — 100,749 Equity in income (loss) of subsidiaries 101,166 11,013 45,621 (157,800 ) — Net income (loss) 100,749 97,070 60,730 (157,800 ) 100,749 Other comprehensive income 20 — — — 20 Comprehensive income (loss) $ 100,769 $ 97,070 $ 60,730 $ (157,800 ) $ 100,769 |
Consolidating Statement Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2018 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 259,028 $ 63,775 $ 224,779 $ — $ 547,582 Cash flows from investing activities: Capital expenditures — (28,908 ) (4,151 ) — (33,059 ) Investments in unconsolidated entities — (1,000 ) — — (1,000 ) Other investing activities, net — 5,759 1,156 — 6,915 Net cash provided by (used in) — (24,149 ) (2,995 ) — (27,144 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (173,761 ) — (173,761 ) Repayments of debt — (81,758 ) (674 ) — (82,432 ) Borrowings under revolving credit facility 1,566,000 — — — 1,566,000 Repayments under revolving credit facility (1,566,000 ) — — — (1,566,000 ) Debt issuance costs (8,090 ) — — — (8,090 ) Stock option exercises 4,467 — — — 4,467 Share repurchases (112,491 ) — — — (112,491 ) Dividends paid (52,384 ) — — — (52,384 ) Intercompany activities, net (90,530 ) 236,776 (146,246 ) — — Net cash provided by (used in) (259,028 ) 155,018 (320,681 ) — (424,691 ) Net increase (decrease) — 194,644 (98,897 ) — 95,747 Cash, cash equivalents, and restricted cash — 157,801 148,367 — 306,168 Cash, cash equivalents, and restricted cash $ — $ 352,445 $ 49,470 $ — $ 401,915 CONSOLIDATING STATEMENT OF CASH FLOWS For the six months ended June 30, 2017 ($000’s omitted) Unconsolidated Consolidated PulteGroup, Guarantor Non-Guarantor Eliminating Net cash provided by (used in) $ 58,415 $ (29,931 ) $ 147,842 $ — $ 176,326 Cash flows from investing activities: Capital expenditures — (14,346 ) (2,546 ) — (16,892 ) Investments in unconsolidated entities — (17,832 ) — — (17,832 ) Other investing activities, net — 2,874 269 — 3,143 Net cash provided by (used in) — (29,304 ) (2,277 ) — (31,581 ) Cash flows from financing activities: Financial Services borrowings (repayments) — — (177,918 ) — (177,918 ) Repayments of debt — (1,382 ) (771 ) — (2,153 ) Borrowings under revolving credit facility 110,000 — — — 110,000 Repayments under revolving credit facility (110,000 ) — — — (110,000 ) Stock option exercises 15,966 — — — 15,966 Share repurchases (405,819 ) — — — (405,819 ) Dividends paid (58,214 ) — — — (58,214 ) Intercompany activities, net 389,652 (360,529 ) (29,123 ) — — Net cash provided by (used in) (58,415 ) (361,911 ) (207,812 ) — (628,138 ) Net increase (decrease) — (421,146 ) (62,247 ) — (483,393 ) Cash, cash equivalents, and restricted cash — 611,185 112,063 — 723,248 Cash, cash equivalents, and restricted cash $ — $ 190,039 $ 49,816 $ — $ 239,855 |
Basis of Presentation (Other Ex
Basis of Presentation (Other Expense (Income), Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Write-offs of deposits and pre-acquisition costs | $ (1,652) | $ (5,063) | $ (4,261) | $ (6,718) |
Amortization of intangible assets | (3,450) | (3,450) | (6,900) | (6,900) |
Interest income | 835 | 599 | 1,399 | 1,432 |
Interest expense | (165) | (134) | (308) | (271) |
Equity in loss (earnings) of unconsolidated entities | 265 | (5,763) | 1,226 | (4,569) |
Miscellaneous, net | 2,211 | (3,277) | 5,581 | (5,131) |
Total other expense, net | $ (1,956) | (17,088) | $ (3,263) | $ (22,157) |
Impairments of unconsolidated entities | $ 8,017 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Customer deposits | $ 354,968 | $ 354,968 | $ 250,779 | |||
Gain (loss) on land sale gains, net | 27,300 | |||||
contract asset insurance renewals | 29,800 | 29,800 | $ 27,700 | |||
Residential mortgage loans available-for-sale fair value | 369,634 | 369,634 | 570,600 | |||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 359,200 | 359,200 | 553,500 | |||
Changes in fair value, gain (loss) | (200) | $ (2,200) | (300) | $ (4,100) | ||
Net gains from the sale of mortgages | 29,200 | $ 27,700 | $ 56,200 | 52,900 | ||
Variability in future cash flows of derivative instruments in days | 60 days | |||||
Cumulative effect of accounting change (see Note 1) | $ 22,411 | 18,237 | ||||
Interest rate lock commitments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | 426,500 | 426,500 | 210,900 | |||
Forward contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | 568,000 | 568,000 | 522,000 | |||
Whole loan commitments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Derivative, notional amount | $ 186,700 | 186,700 | $ 203,100 | |||
Retained Earnings | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cumulative effect of accounting change (see Note 1) | $ 22,411 | $ 18,643 |
Basis of Presentation (Earnings
Basis of Presentation (Earnings per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income | $ 324,089 | $ 100,749 | $ 494,841 | $ 192,268 |
Less: earnings distributed to participating securities | (300) | (300) | (595) | (605) |
Less: undistributed earnings allocated to participating securities | (3,284) | (772) | (2,584) | (1,330) |
Numerator for basic earnings per share | 320,505 | 99,677 | 491,662 | 190,333 |
Add back: undistributed earnings allocated to participating securities | 3,284 | 772 | 2,584 | 1,330 |
Less: undistributed earnings reallocated to participating securities | (3,268) | (768) | (2,575) | (1,322) |
Numerator for diluted earnings per share | $ 320,521 | $ 99,681 | $ 491,671 | $ 190,341 |
Denominator: | ||||
Basic shares outstanding (shares) | 285,276 | 312,315 | 285,976 | 315,021 |
Effect of dilutive securities (shares) | 1,378 | 1,565 | 1,088 | 1,946 |
Diluted shares outstanding (shares) | 286,654 | 313,880 | 287,064 | 316,967 |
Earnings per share: | ||||
Basic earnings (usd per share) | $ 1.12 | $ 0.32 | $ 1.72 | $ 0.60 |
Diluted earnings (usd per share) | $ 1.12 | $ 0.32 | $ 1.71 | $ 0.60 |
Basis of Presentation (Fair Val
Basis of Presentation (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 13,049 | $ 7,216 |
Accrued and Other Liabilities | 3,249 | 2,165 |
Interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 12,139 | 5,990 |
Accrued and Other Liabilities | 505 | 407 |
Forward contracts | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 189 | 432 |
Accrued and Other Liabilities | 2,429 | 817 |
Whole loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 721 | 794 |
Accrued and Other Liabilities | $ 315 | $ 941 |
Inventory (Major Components Of
Inventory (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Homes under construction | $ 2,922,260 | $ 2,421,405 |
Land under development | 4,045,615 | 4,135,814 |
Raw land | 531,790 | 589,911 |
Total Inventory | $ 7,499,665 | $ 7,147,130 |
Inventory (Information Related
Inventory (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest in inventory, beginning of period | $ 240,013 | $ 203,828 | $ 226,611 | $ 186,097 |
Interest capitalized | 43,771 | 44,949 | 87,731 | 89,872 |
Interest expensed | (40,157) | (35,927) | (70,715) | (63,119) |
Interest in inventory, end of period | $ 243,627 | $ 212,850 | $ 243,627 | $ 212,850 |
Inventory (Summary of Interests
Inventory (Summary of Interests in Land Option Agreements) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 218,437 | $ 207,987 |
Remaining Purchase Price | 2,749,086 | 2,462,579 |
Land options with VIEs | ||
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | 73,940 | 78,889 |
Remaining Purchase Price | 1,145,136 | 977,480 |
Other land options | ||
Variable Interest Entity [Line Items] | ||
Deposits and Pre-acquisition Costs | 144,497 | 129,098 |
Remaining Purchase Price | $ 1,603,950 | $ 1,485,099 |
Inventory Inventory (Summary of
Inventory Inventory (Summary of Land-related Charges) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | ||||
Net realizable value adjustments (NRV) - land held for sale | $ 81,006 | |||
Land inventory impairments | 31,487 | $ 5,841 | $ 129,108 | |
Impairments of unconsolidated entities | 8,017 | |||
Write-offs of deposits and pre-acquisition costs | $ 1,652 | 5,063 | 4,261 | 6,718 |
Total land-related charges | $ 2,422 | $ 125,573 | $ 5,841 | $ 129,108 |
Inventory - Narrative (Details)
Inventory - Narrative (Details) $ in Thousands | May 03, 2017communitylot | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Inventory Disclosure [Abstract] | ||||
Number of communities tested for impairment | community | 17 | |||
Number of units in real estate property | lot | 4,600 | |||
Net realizable value adjustments (NRV) - land held for sale | $ 81,006 | |||
Carrying amount impaired land - prior impairment | 151,000 | $ 151,000 | ||
Number of communities | community | 2 | |||
Land inventory impairments | $ 31,487 | $ 5,841 | $ 129,108 |
Inventory - Inventory Fair Valu
Inventory - Inventory Fair Value Unobservable Inputs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)homecommunity | |
Minimum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Average selling price ($000s) | $ 253 |
Sales pace per quarter (units) | community | 5 |
Discount rate | 18.00% |
Maximum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Average selling price ($000s) | $ 461 |
Sales pace per quarter (units) | home | 9 |
Discount rate | 25.00% |
Segment Information Narrative (
Segment Information Narrative (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Homebuilding | $ 2,516,958 | $ 1,974,585 | $ 4,441,113 | $ 3,562,695 |
Financial Services | 52,764 | 47,275 | 98,702 | 89,042 |
Consolidated revenues | 2,569,722 | 2,021,860 | 4,539,815 | 3,651,737 |
Income before Income Taxes: | ||||
Income before income taxes | 409,170 | 122,547 | 633,362 | 261,813 |
West_area_2Q19_land_sale | $ (26,400) | |||
West_2Q18_land_sales_number | two | |||
Adjustment to self insurance reserves | 37,900 | 19,800 | ||
Write-off of insurance receivables | 15,000 | |||
Northeast | ||||
Revenues: | ||||
Homebuilding | $ 200,626 | 148,303 | 333,062 | 256,904 |
Income before Income Taxes: | ||||
Income before income taxes | 25,158 | (38,249) | 34,470 | (33,849) |
Southeast | ||||
Revenues: | ||||
Homebuilding | 445,506 | 381,132 | 820,129 | 710,244 |
Income before Income Taxes: | ||||
Income before income taxes | 54,357 | 40,274 | 94,814 | 72,640 |
Florida | ||||
Revenues: | ||||
Homebuilding | 455,637 | 363,421 | 804,346 | 677,717 |
Income before Income Taxes: | ||||
Income before income taxes | 67,491 | 36,110 | 112,436 | 80,633 |
Product warranty expense | (12,100) | |||
Midwest | ||||
Revenues: | ||||
Homebuilding | 356,466 | 357,985 | 653,972 | 602,491 |
Income before Income Taxes: | ||||
Income before income taxes | 43,050 | 37,573 | 71,451 | 55,827 |
Texas | ||||
Revenues: | ||||
Homebuilding | 330,692 | 288,669 | 577,331 | 523,210 |
Income before Income Taxes: | ||||
Income before income taxes | 50,859 | 46,522 | 81,395 | 79,318 |
West | ||||
Revenues: | ||||
Homebuilding | 728,031 | 435,075 | 1,252,273 | 792,129 |
Income before Income Taxes: | ||||
Income before income taxes | 154,414 | (1,850) | 243,619 | 32,234 |
Other homebuilding | ||||
Income before Income Taxes: | ||||
Income before income taxes | (6,876) | (16,781) | (39,374) | (57,441) |
Homebuilding | ||||
Income before Income Taxes: | ||||
Income before income taxes | 388,453 | 103,599 | 598,811 | 229,362 |
Financial Services | ||||
Income before Income Taxes: | ||||
Income before income taxes | $ 20,717 | $ 18,948 | $ 34,551 | $ 32,451 |
Segment Information Segment Inf
Segment Information Segment Information (Land-Related Charges by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | $ 2,422 | $ 125,573 | $ 5,841 | $ 129,108 |
Northeast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 498 | 49,820 | 1,683 | 49,918 |
Southeast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 689 | 491 | 1,731 | 958 |
Florida | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 226 | 8,602 | 409 | 8,754 |
Midwest | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 372 | 7,567 | 1,118 | 8,095 |
Texas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 220 | 589 | 270 | 847 |
West | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | 148 | 54,409 | 361 | 56,441 |
Other homebuilding | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production Related Impairments or Charges | $ 269 | $ 4,095 | $ 269 | $ 4,095 |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information | ||
Homes under construction | $ 2,922,260 | $ 2,421,405 |
Land under development | 4,045,615 | 4,135,814 |
Raw land | 531,790 | 589,911 |
Total Inventory | 7,499,665 | 7,147,130 |
Total Assets | 9,815,576 | 9,686,649 |
Northeast | ||
Segment Reporting Information | ||
Homes under construction | 298,241 | 234,413 |
Land under development | 272,358 | 327,599 |
Raw land | 73,577 | 73,574 |
Total Inventory | 644,176 | 635,586 |
Total Assets | 811,067 | 791,511 |
Southeast | ||
Segment Reporting Information | ||
Homes under construction | 506,116 | 433,411 |
Land under development | 633,489 | 613,626 |
Raw land | 78,183 | 121,238 |
Total Inventory | 1,217,788 | 1,168,275 |
Total Assets | 1,355,703 | 1,287,992 |
Florida | ||
Segment Reporting Information | ||
Homes under construction | 488,392 | 359,651 |
Land under development | 879,165 | 876,856 |
Raw land | 97,481 | 109,069 |
Total Inventory | 1,465,038 | 1,345,576 |
Total Assets | 1,602,996 | 1,481,837 |
Midwest | ||
Segment Reporting Information | ||
Homes under construction | 371,665 | 299,896 |
Land under development | 420,733 | 476,694 |
Raw land | 28,727 | 28,482 |
Total Inventory | 821,125 | 805,072 |
Total Assets | 909,295 | 877,282 |
Texas | ||
Segment Reporting Information | ||
Homes under construction | 332,420 | 251,613 |
Land under development | 417,251 | 435,018 |
Raw land | 88,727 | 87,392 |
Total Inventory | 838,398 | 774,023 |
Total Assets | 915,707 | 859,847 |
West | ||
Segment Reporting Information | ||
Homes under construction | 869,845 | 798,706 |
Land under development | 1,161,466 | 1,137,940 |
Raw land | 143,544 | 147,493 |
Total Inventory | 2,174,855 | 2,084,139 |
Total Assets | 2,357,858 | 2,271,328 |
Other homebuilding | ||
Segment Reporting Information | ||
Homes under construction | 55,581 | 43,715 |
Land under development | 261,153 | 268,081 |
Raw land | 21,551 | 22,663 |
Total Inventory | 338,285 | 334,459 |
Total Assets | 1,389,431 | 1,469,234 |
Homebuilding | ||
Segment Reporting Information | ||
Homes under construction | 2,922,260 | 2,421,405 |
Land under development | 4,045,615 | 4,135,814 |
Raw land | 531,790 | 589,911 |
Total Inventory | 7,499,665 | 7,147,130 |
Total Assets | 9,342,057 | 9,039,031 |
Financial Services | ||
Segment Reporting Information | ||
Homes under construction | 0 | 0 |
Land under development | 0 | 0 |
Raw land | 0 | 0 |
Total Inventory | 0 | 0 |
Total Assets | $ 473,519 | $ 647,618 |
Debt (Summary of Senior Notes)
Debt (Summary of Senior Notes) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Net premiums, discounts, and issuance costs (b) | $ (13,152) | $ (13,057) |
Total senior notes | 2,986,848 | 2,986,943 |
Other notes payable | 18,842 | 20,024 |
Notes payable | 3,005,690 | 3,006,967 |
Estimated fair value | $ 2,998,340 | $ 3,263,774 |
4.250% unsecured senior notes due March 2021 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.25% | 4.25% |
Face amount | $ 700,000 | $ 700,000 |
5.500% unsecured senior notes due March 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.50% | 5.50% |
Face amount | $ 700,000 | $ 700,000 |
5.000% unsecured senior notes due January 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.00% | 5.00% |
Face amount | $ 600,000 | $ 600,000 |
7.875% unsecured senior notes due June 2032 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.875% | 7.875% |
Face amount | $ 300,000 | $ 300,000 |
6.375% unsecured senior notes due May 2033 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.375% | 6.375% |
Face amount | $ 400,000 | $ 400,000 |
6.000% unsecured senior notes due February 2035 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.00% | 6.00% |
Face amount | $ 300,000 | $ 300,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Oct. 13, 2017 | |
Debt Instrument [Line Items] | |||
Other notes payable | $ 18,842,000 | $ 20,024,000 | |
Debt instrument term | 3 years | ||
Letters of credit outstanding | $ 214,600,000 | 235,500,000 | |
Line of credit facility, remaining borrowing capacity | 785,400,000 | 764,500,000 | |
Joint venture debt total | 55,000,000 | ||
Joint venture debt company proportionate share total | 54,200,000 | ||
Long-term line of credit | $ 264,043,000 | 437,804,000 | |
Maximum | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.80% | ||
Unconsolidated Joint Ventures | |||
Debt Instrument [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Revolving Credit Facility Accordion Feature | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,000,000,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum additional issuance | 500,000,000 | ||
Line of credit, current | 0 | 0 | |
Line of Credit | Financial Services | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | ||
Long-term line of credit | $ 264,000,000 | $ 437,800,000 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Class of Stock [Line Items] | ||
Dividends | $ 51,966 | $ 56,941 |
Payments for repurchase of common stock | $ 112,491 | $ 405,819 |
Share repurchase plan | ||
Class of Stock [Line Items] | ||
Share repurchases (shares) | 3.5 | 17.5 |
Payments for repurchase of common stock | $ 105,100 | $ 399,900 |
Remaining value of stock repurchase programs authorization | 489,300 | |
Shares withheld to pay taxes | ||
Class of Stock [Line Items] | ||
Payments for repurchase of common stock | $ 7,400 | $ 5,900 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax | 20.80% | 17.80% | 21.90% | 26.60% | |
Deferred tax assets, net | $ 511,381 | $ 511,381 | $ 645,295 | ||
Gross unrecognized tax benefits | 19,900 | 19,900 | 48,600 | ||
Accrued interest and penalties on unrecognized tax benefits | 5,200 | 5,200 | $ 4,900 | ||
Possible decrease in unrecognized tax benefits | $ 11,200 | $ 11,200 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosed at fair value: | ||
Other notes payable | $ 18,842 | $ 20,024 |
Level 2 | ||
Disclosed at fair value: | ||
Financial Services debt | 264,043 | 437,804 |
Senior notes payable | 2,979,498 | 3,243,750 |
Level 1 | ||
Disclosed at fair value: | ||
Cash, cash equivalents, and restricted cash | 401,915 | 306,168 |
Land held for sale | Fair Value, Measurements, Nonrecurring | Level 2 | ||
Measured at fair value on a non-recurring basis: | ||
Fair value | 5,279 | 8,600 |
House and land inventory | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Measured at fair value on a non-recurring basis: | ||
Fair value | 1,631 | 11,045 |
Interest rate lock commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, fair value | 11,634 | 5,583 |
Forward contracts | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Liabilities, fair value | (2,240) | (385) |
Whole loan commitments | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, fair value | 406 | |
Liabilities, fair value | (147) | |
Residential Mortgage | Fair Value, Measurements, Recurring | Level 2 | ||
Measured at fair value on a recurring basis: | ||
Assets, fair value | $ 369,634 | $ 570,600 |
Fair Value Disclosures Narrativ
Fair Value Disclosures Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Total senior notes | $ 2,986,848 | $ 2,986,943 |
Commitments and Contingencies44
Commitments and Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency Accrual | $ 34.5 | $ 34.6 |
Commitments and Contingencies45
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||||
Letters of credit outstanding | $ 214,600 | $ 235,500 | |||||
Surety bonds outstanding | $ 1,200,000 | 1,200,000 | |||||
Maximum product warranty in years | 10 years | ||||||
Self-insurance liabilities | $ 814,756 | $ 725,482 | $ 814,756 | $ 771,104 | $ 758,812 | $ 835,326 | $ 831,058 |
Incurred but not reported percentage of liability reserves | 62.00% | 65.00% | |||||
Adjustment to self insurance reserves | $ 37,900 | $ 19,800 | |||||
Write-off of insurance receivables | $ 15,000 | ||||||
Litigation of recorded insurance receivable | 22,300 | ||||||
Other Assets | |||||||
Loss Contingencies [Line Items] | |||||||
Recorded insurance receivables | $ 155,300 | $ 213,400 |
Commitments and Contingencies46
Commitments and Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liabilities, beginning of period | $ 70,986 | $ 64,681 | $ 72,709 | $ 66,134 |
Reserves provided | 15,731 | 12,446 | 27,647 | 23,088 |
Payments | (17,129) | (16,815) | (31,411) | (28,914) |
Other adjustments (a) | 2,581 | 13,041 | 3,224 | 13,045 |
Warranty liabilities, end of period | $ 72,169 | $ 73,353 | $ 72,169 | 73,353 |
Florida | ||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Product warranty expense | $ 12,100 |
Commitments and Contingencies47
Commitments and Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in Self-insurance Liability [Roll Forward] | ||||
Balance, beginning of period | $ 771,104 | $ 835,326 | $ 758,812 | $ 831,058 |
Reserves provided, net | 23,235 | 23,411 | 42,895 | 43,126 |
Adjustments to previously recorded reserves (a) | (37,529) | (19,813) | (35,068) | (21,793) |
Payments, net (b) | (31,328) | (24,168) | (41,157) | (37,635) |
Balance, end of period | $ 725,482 | $ 814,756 | 725,482 | 814,756 |
Adjustment to self insurance reserves | $ 37,900 | $ 19,800 |
Supplemental Guarantor Inform48
Supplemental Guarantor Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and equivalents | $ 367,091 | $ 272,683 | ||
Restricted cash | 34,824 | 33,485 | ||
House and land inventory | 7,499,665 | 7,147,130 | ||
Land held for sale | 77,941 | 68,384 | ||
Residential mortgage loans available-for-sale | 369,634 | 570,600 | ||
Investments in unconsolidated entities | 61,718 | 62,957 | ||
Other assets | 759,230 | 745,123 | ||
Intangible assets | 134,092 | 140,992 | ||
Deferred tax assets, net | 511,381 | 645,295 | ||
Investments in subsidiaries and intercompany accounts, net | 0 | 0 | ||
Total assets | 9,815,576 | 9,686,649 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,996,647 | 2,000,927 | ||
Income tax liabilities | 22,484 | 86,925 | ||
Financial Services debt | 264,043 | 437,804 | ||
Notes payable | 3,005,690 | 3,006,967 | ||
Total liabilities | 5,288,864 | 5,532,623 | ||
Total shareholders’ equity | 4,526,712 | 4,154,026 | $ 4,444,002 | $ 4,659,363 |
Total liabilities and shareholders' equity | 9,815,576 | 9,686,649 | ||
Eliminating Entries | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Other assets | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | (15,340,417) | (14,246,748) | ||
Total assets | (15,340,417) | (14,246,748) | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 0 | 0 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total shareholders’ equity | (15,340,417) | (14,246,748) | ||
Total liabilities and shareholders' equity | (15,340,417) | (14,246,748) | ||
PulteGroup, Inc. | ||||
ASSETS | ||||
Cash and equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
House and land inventory | 0 | 0 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Other assets | 17,108 | 9,417 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | 519,188 | 646,227 | ||
Investments in subsidiaries and intercompany accounts, net | 7,084,815 | 6,661,638 | ||
Total assets | 7,621,111 | 7,317,282 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 85,067 | 89,388 | ||
Income tax liabilities | 22,484 | 86,925 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 2,986,848 | 2,986,943 | ||
Total liabilities | 3,094,399 | 3,163,256 | ||
Total shareholders’ equity | 4,526,712 | 4,154,026 | ||
Total liabilities and shareholders' equity | 7,621,111 | 7,317,282 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and equivalents | 318,811 | 125,462 | ||
Restricted cash | 33,634 | 32,339 | ||
House and land inventory | 7,402,692 | 7,053,087 | ||
Land held for sale | 77,941 | 68,384 | ||
Residential mortgage loans available-for-sale | 0 | 0 | ||
Investments in unconsolidated entities | 61,182 | 62,415 | ||
Other assets | 576,371 | 592,045 | ||
Intangible assets | 134,092 | 140,992 | ||
Deferred tax assets, net | 0 | 0 | ||
Investments in subsidiaries and intercompany accounts, net | 288,223 | 284,983 | ||
Total assets | 8,892,946 | 8,359,707 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 1,661,695 | 1,636,913 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 0 | 0 | ||
Notes payable | 17,962 | 16,911 | ||
Total liabilities | 1,679,657 | 1,653,824 | ||
Total shareholders’ equity | 7,213,289 | 6,705,883 | ||
Total liabilities and shareholders' equity | 8,892,946 | 8,359,707 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and equivalents | 48,280 | 147,221 | ||
Restricted cash | 1,190 | 1,146 | ||
House and land inventory | 96,973 | 94,043 | ||
Land held for sale | 0 | 0 | ||
Residential mortgage loans available-for-sale | 369,634 | 570,600 | ||
Investments in unconsolidated entities | 536 | 542 | ||
Other assets | 165,751 | 143,661 | ||
Intangible assets | 0 | 0 | ||
Deferred tax assets, net | (7,807) | (932) | ||
Investments in subsidiaries and intercompany accounts, net | 7,967,379 | 7,300,127 | ||
Total assets | 8,641,936 | 8,256,408 | ||
Liabilities: | ||||
Accounts payable, customer deposits, accrued and other liabilities | 249,885 | 274,626 | ||
Income tax liabilities | 0 | 0 | ||
Financial Services debt | 264,043 | 437,804 | ||
Notes payable | 880 | 3,113 | ||
Total liabilities | 514,808 | 715,543 | ||
Total shareholders’ equity | 8,127,128 | 7,540,865 | ||
Total liabilities and shareholders' equity | $ 8,641,936 | $ 8,256,408 |
Supplemental Guarantor Inform49
Supplemental Guarantor Information (Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Homebuilding | ||||
Home sale revenues | $ 2,450,054 | $ 1,965,641 | $ 4,361,652 | $ 3,551,063 |
Land sale and other revenues | 66,904 | 8,944 | 79,461 | 11,632 |
Total homebuilding revenues | 2,516,958 | 1,974,585 | 4,441,113 | 3,562,695 |
Financial Services | 52,764 | 47,275 | 98,702 | 89,042 |
Consolidated revenues | 2,569,722 | 2,021,860 | 4,539,815 | 3,651,737 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | (1,862,133) | (1,549,937) | (3,322,073) | (2,767,615) |
Land sale cost of revenues | (38,183) | (87,599) | (49,731) | (90,827) |
Total cost of revenues | (1,900,316) | (1,637,536) | (3,371,804) | (2,858,442) |
Financial Services expenses | (32,224) | (28,478) | (64,436) | (56,846) |
Selling, general, and administrative expenses | (226,056) | (216,211) | (466,950) | (452,479) |
Other expense, net | (1,956) | (17,088) | (3,263) | (22,157) |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 409,170 | 122,547 | 633,362 | 261,813 |
Income tax (expense) benefit | (85,081) | (21,798) | (138,521) | (69,545) |
Income (loss) before equity in income (loss) of subsidiaries | 324,089 | 100,749 | 494,841 | 192,268 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 324,089 | 100,749 | 494,841 | 192,268 |
Other comprehensive income | 30 | 20 | 50 | 41 |
Comprehensive income (loss) | 324,119 | 100,769 | 494,891 | 192,309 |
Eliminating Entries | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale and other revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Other expense, net | 0 | 0 | 0 | 0 |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Income (loss) before equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (608,679) | (157,800) | (903,887) | (294,169) |
Net income | (608,679) | (157,800) | (903,887) | (294,169) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (608,679) | (157,800) | (903,887) | (294,169) |
PulteGroup, Inc. | ||||
Homebuilding | ||||
Home sale revenues | 0 | 0 | 0 | 0 |
Land sale and other revenues | 0 | 0 | 0 | 0 |
Total homebuilding revenues | 0 | 0 | 0 | 0 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 0 | 0 | 0 | 0 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | 0 | 0 | 0 | 0 |
Land sale cost of revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | 0 | 0 | 0 |
Financial Services expenses | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 0 | 0 | 0 | 0 |
Other expense, net | (196) | (129) | (336) | (259) |
Intercompany interest | (2,085) | (544) | (3,553) | (878) |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (2,281) | (673) | (3,889) | (1,137) |
Income tax (expense) benefit | 547 | 256 | 934 | 432 |
Income (loss) before equity in income (loss) of subsidiaries | (1,734) | (417) | (2,955) | (705) |
Equity in income (loss) of subsidiaries | 325,823 | 101,166 | 497,796 | 192,973 |
Net income | 324,089 | 100,749 | 494,841 | 192,268 |
Other comprehensive income | 30 | 20 | 50 | 41 |
Comprehensive income (loss) | 324,119 | 100,769 | 494,891 | 192,309 |
Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 2,421,643 | 1,945,312 | 4,316,500 | 3,521,958 |
Land sale and other revenues | 66,418 | 7,399 | 77,977 | 9,311 |
Total homebuilding revenues | 2,488,061 | 1,952,711 | 4,394,477 | 3,531,269 |
Financial Services | 0 | 0 | 0 | 0 |
Consolidated revenues | 2,488,061 | 1,952,711 | 4,394,477 | 3,531,269 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | (1,840,487) | (1,533,402) | (3,286,043) | (2,743,042) |
Land sale cost of revenues | (37,884) | (86,408) | (48,714) | (89,004) |
Total cost of revenues | (1,878,371) | (1,619,810) | (3,334,757) | (2,832,046) |
Financial Services expenses | (133) | (124) | (275) | (263) |
Selling, general, and administrative expenses | (221,590) | (210,110) | (453,535) | (428,085) |
Other expense, net | (13,436) | (23,877) | (21,037) | (36,763) |
Intercompany interest | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 374,531 | 98,790 | 584,873 | 234,112 |
Income tax (expense) benefit | (75,977) | (12,733) | (125,508) | (58,658) |
Income (loss) before equity in income (loss) of subsidiaries | 298,554 | 86,057 | 459,365 | 175,454 |
Equity in income (loss) of subsidiaries | 24,504 | 11,013 | 37,068 | 18,266 |
Net income | 323,058 | 97,070 | 496,433 | 193,720 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 323,058 | 97,070 | 496,433 | 193,720 |
Non-Guarantor Subsidiaries | ||||
Homebuilding | ||||
Home sale revenues | 28,411 | 20,329 | 45,152 | 29,105 |
Land sale and other revenues | 486 | 1,545 | 1,484 | 2,321 |
Total homebuilding revenues | 28,897 | 21,874 | 46,636 | 31,426 |
Financial Services | 52,764 | 47,275 | 98,702 | 89,042 |
Consolidated revenues | 81,661 | 69,149 | 145,338 | 120,468 |
Homebuilding Cost of Revenues: | ||||
Home sale cost of revenues | (21,646) | (16,535) | (36,030) | (24,573) |
Land sale cost of revenues | (299) | (1,191) | (1,017) | (1,823) |
Total cost of revenues | (21,945) | (17,726) | (37,047) | (26,396) |
Financial Services expenses | (32,091) | (28,354) | (64,161) | (56,583) |
Selling, general, and administrative expenses | (4,466) | (6,101) | (13,415) | (24,394) |
Other expense, net | 11,676 | 6,918 | 18,110 | 14,865 |
Intercompany interest | 2,085 | 544 | 3,553 | 878 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 36,920 | 24,430 | 52,378 | 28,838 |
Income tax (expense) benefit | (9,651) | (9,321) | (13,947) | (11,319) |
Income (loss) before equity in income (loss) of subsidiaries | 27,269 | 15,109 | 38,431 | 17,519 |
Equity in income (loss) of subsidiaries | 258,352 | 45,621 | 369,023 | 82,930 |
Net income | 285,621 | 60,730 | 407,454 | 100,449 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ 285,621 | $ 60,730 | $ 407,454 | $ 100,449 |
Supplemental Guarantor Inform50
Supplemental Guarantor Information (Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Net cash provided by (used in) operating activities | $ 547,582 | $ 176,326 |
Cash flows from investing activities: | ||
Capital expenditures | (33,059) | (16,892) |
Investments in unconsolidated entities | (1,000) | (17,832) |
Other investing activities, net | 6,915 | 3,143 |
Net cash used in investing activities | (27,144) | (31,581) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | (173,761) | (177,918) |
Repayments of debt | (82,432) | (2,153) |
Borrowings under revolving credit facility | 1,566,000 | 110,000 |
Repayments under revolving credit facility | (1,566,000) | (110,000) |
Debt issuance costs | (8,090) | 0 |
Stock option exercises | 4,467 | 15,966 |
Share repurchases | (112,491) | (405,819) |
Dividends paid | (52,384) | (58,214) |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | (424,691) | (628,138) |
Net increase (decrease) | 95,747 | (483,393) |
Cash, cash equivalents, and restricted cash at beginning of period | 306,168 | 723,248 |
Cash, cash equivalents, and restricted cash at end of period | 401,915 | 239,855 |
Eliminating Entries | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Repayments of debt | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Net increase (decrease) | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
PulteGroup, Inc. | ||
Net cash provided by (used in) operating activities | 259,028 | 58,415 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Investments in unconsolidated entities | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Repayments of debt | 0 | 0 |
Borrowings under revolving credit facility | 1,566,000 | 110,000 |
Repayments under revolving credit facility | (1,566,000) | (110,000) |
Debt issuance costs | (8,090) | |
Stock option exercises | 4,467 | 15,966 |
Share repurchases | (112,491) | (405,819) |
Dividends paid | (52,384) | (58,214) |
Intercompany activities, net | (90,530) | 389,652 |
Net cash provided by (used in) financing activities | (259,028) | (58,415) |
Net increase (decrease) | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | 63,775 | (29,931) |
Cash flows from investing activities: | ||
Capital expenditures | (28,908) | (14,346) |
Investments in unconsolidated entities | (1,000) | (17,832) |
Other investing activities, net | 5,759 | 2,874 |
Net cash used in investing activities | (24,149) | (29,304) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | 0 | 0 |
Repayments of debt | (81,758) | (1,382) |
Borrowings under revolving credit facility | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | 236,776 | (360,529) |
Net cash provided by (used in) financing activities | 155,018 | (361,911) |
Net increase (decrease) | 194,644 | (421,146) |
Cash, cash equivalents, and restricted cash at beginning of period | 157,801 | 611,185 |
Cash, cash equivalents, and restricted cash at end of period | 352,445 | 190,039 |
Non-Guarantor Subsidiaries | ||
Net cash provided by (used in) operating activities | 224,779 | 147,842 |
Cash flows from investing activities: | ||
Capital expenditures | (4,151) | (2,546) |
Investments in unconsolidated entities | 0 | 0 |
Other investing activities, net | 1,156 | 269 |
Net cash used in investing activities | (2,995) | (2,277) |
Cash flows from financing activities: | ||
Financial Services borrowings (repayments) | (173,761) | (177,918) |
Repayments of debt | (674) | (771) |
Borrowings under revolving credit facility | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Stock option exercises | 0 | 0 |
Share repurchases | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany activities, net | (146,246) | (29,123) |
Net cash provided by (used in) financing activities | (320,681) | (207,812) |
Net increase (decrease) | (98,897) | (62,247) |
Cash, cash equivalents, and restricted cash at beginning of period | 148,367 | 112,063 |
Cash, cash equivalents, and restricted cash at end of period | $ 49,470 | $ 49,816 |