Cover Page Document
Cover Page Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 18, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-9804 | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 38-2766606 | ||
Entity Address, Address Line One | 3350 Peachtree Road NE, Suite 1500 | ||
Entity Address, City or Town | Atlanta, | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30326 | ||
City Area Code | 404 | ||
Local Phone Number | 978-6400 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,157,617,302 | ||
Entity Common Stock, Shares Outstanding | 225,596,780 | ||
Documents Incorporated by Reference [Text Block] | Documents Incorporated by Reference Applicable portions of the Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form. | ||
Entity Registrant Name | PULTEGROUP INC/MI/ | ||
Entity Central Index Key | 0000822416 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Shares, par value $0.01 | ||
Trading Symbol | PHM | ||
Security Exchange Name | NYSE | ||
Series A Junior Participating Preferred Share Purchase Rights [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series A Junior Participating Preferred Share Purchase Rights | ||
No Trading Symbol Flag |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and equivalents | $ 1,053,104 | $ 1,779,088 |
Restricted cash | 41,449 | 54,477 |
Total cash, cash equivalents, and restricted cash | 1,094,553 | 1,833,565 |
House and land inventory | 11,326,017 | 9,047,569 |
Land held for sale | 42,254 | 29,276 |
Residential mortgage loans available-for-sale | 677,207 | 947,139 |
Investments in unconsolidated entities | 146,759 | 98,155 |
Other assets | 1,291,572 | 1,110,966 |
Intangible assets | 135,805 | 146,923 |
Deferred tax assets | 82,348 | 139,038 |
Total assets | 14,796,515 | 13,352,631 |
Liabilities: | ||
Accounts payable, including book overdrafts of $87,578 and $87,462 at December 31, 2022 and 2021, respectively | 565,975 | 621,168 |
Customer deposits | 783,556 | 844,785 |
Deferred Income Tax Liabilities, Net | 215,446 | 165,519 |
Accrued and other liabilities | 1,685,202 | 1,576,478 |
Notes payable | 2,045,527 | 2,029,043 |
Total liabilities | 5,882,417 | 5,863,116 |
Shareholders’ equity: | ||
Preferred shares, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common shares, $0.01 par value; 500,000,000 shares authorized, 225,840,443 and 249,325,873 shares issued and outstanding at December 31, 2022 and 2021, respectively | 2,258 | 2,493 |
Additional paid-in capital | 3,330,138 | 3,290,791 |
Accumulated other comprehensive loss | 0 | (45) |
Retained earnings | 5,581,702 | 4,196,276 |
Total shareholders’ equity | 8,914,098 | 7,489,515 |
Total liabilities and shareholders' equity | 14,796,515 | 13,352,631 |
Financial Services Debt | $ 586,711 | $ 626,123 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Book overdrafts | $ 87,578 | $ 87,462 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 225,840,443 | 249,325,873 |
Common stock, shares outstanding | 225,840,443 | 249,325,873 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Revenues | $ 16,228,995 | $ 13,926,882 | $ 11,036,082 |
Homebuilding Cost of Revenues: | |||
Selling, general, and administrative expenses | (1,381,222) | (1,208,698) | (1,011,442) |
Loss on debt retirement | 0 | (61,469) | 0 |
Goodwill impairment | 0 | 0 | (20,190) |
Other expense, net | (13,718) | (2,410) | (17,826) |
Income before income taxes | 3,439,558 | 2,509,845 | 1,728,694 |
Income tax expense | (822,241) | (563,525) | (321,855) |
Net income | $ 2,617,317 | $ 1,946,320 | $ 1,406,839 |
Net income per share: | |||
Basic (usd per share) | $ 11.07 | $ 7.44 | $ 5.19 |
Diluted (usd per share) | 11.01 | 7.43 | 5.18 |
Cash dividends declared (usd per share) | $ 0.61 | $ 0.57 | $ 0.50 |
Number of shares used in calculation: | |||
Basic shares outstanding (shares) | 235,010 | 259,285 | 268,553 |
Effect of dilutive securities (shares) | 1,156 | 643 | 861 |
Diluted shares outstanding (shares) | 236,166 | 259,928 | 269,414 |
Homebuilding | |||
Homebuilding Cost of Revenues: | |||
Cost of revenues | $ (11,213,801) | $ (9,975,974) | $ (8,082,449) |
Financial Services | |||
Homebuilding Cost of Revenues: | |||
Financial Services expenses | (180,696) | (168,486) | (175,481) |
Real Estate | Homebuilding | |||
Revenues: | |||
Revenues | 15,917,279 | 13,537,350 | 10,673,913 |
Homebuilding Cost of Revenues: | |||
Income before income taxes | 3,307,328 | 2,288,128 | 1,542,057 |
Home sale revenues | Homebuilding | |||
Revenues: | |||
Revenues | 15,774,135 | 13,376,812 | 10,579,896 |
Homebuilding Cost of Revenues: | |||
Cost of revenues | (11,093,895) | (9,841,961) | (8,004,823) |
Land sale and other revenues | Homebuilding | |||
Revenues: | |||
Revenues | 143,144 | 160,538 | 94,017 |
Homebuilding Cost of Revenues: | |||
Cost of revenues | (119,906) | (134,013) | (77,626) |
Financial Services | Financial Services | |||
Revenues: | |||
Revenues | 311,716 | 389,532 | 362,169 |
Homebuilding Cost of Revenues: | |||
Income before income taxes | $ 132,230 | $ 221,717 | $ 186,637 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 2,617,317 | $ 1,946,320 | $ 1,406,839 |
Other comprehensive income, net of tax: | |||
Change in value of derivatives | 45 | 100 | 100 |
Other comprehensive income | 45 | 100 | 100 |
Comprehensive income | $ 2,617,362 | $ 1,946,420 | $ 1,406,939 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment |
Shareholders' Equity, shares at Dec. 31, 2019 | 270,235,000 | ||||||
Shareholders' Equity at Dec. 31, 2019 | $ 5,458,180 | $ 2,702 | $ 3,235,149 | $ 0 | $ (245) | $ 2,220,574 | |
Shareholders' Equity (Accounting Standards Update 2014-09) at Dec. 31, 2019 | $ (735) | ||||||
Shareholders' Equity (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ (735) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises, shares | 15,000 | ||||||
Stock option exercises | 111 | $ 1 | 110 | ||||
Share issuances, net of cancellations, shares | 756,000 | ||||||
Share issuances | 4,096 | $ 8 | 4,088 | ||||
Dividends declared | (135,138) | (135,138) | |||||
Share repurchases, shares | (4,542,000) | ||||||
Share repurchases | (170,676) | $ (46) | (170,630) | ||||
Cash paid for shares withheld for taxes | (14,853) | 0 | (14,853) | ||||
Share-based compensation | 22,065 | 22,065 | |||||
Net income | 1,406,839 | 1,406,839 | |||||
Other comprehensive income | 100 | 100 | |||||
Shareholders' Equity, shares at Dec. 31, 2020 | 266,464,000 | ||||||
Shareholders' Equity at Dec. 31, 2020 | 6,569,989 | $ 2,665 | 3,261,412 | (145) | 3,306,057 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises, shares | 1,000 | ||||||
Stock option exercises | 11 | $ 0 | 11 | ||||
Share issuances, net of cancellations, shares | 525,000 | ||||||
Share issuances | 4,181 | $ 5 | 4,176 | ||||
Dividends declared | (148,133) | (148,133) | |||||
Share repurchases, shares | (17,664,000) | ||||||
Share repurchases | (897,303) | $ (177) | (897,126) | ||||
Cash paid for shares withheld for taxes | (10,842) | (10,842) | |||||
Share-based compensation | 25,192 | 25,192 | |||||
Net income | 1,946,320 | 1,946,320 | |||||
Other comprehensive income | $ 100 | 100 | |||||
Shareholders' Equity, shares at Dec. 31, 2021 | 249,325,873 | 249,326,000 | |||||
Shareholders' Equity at Dec. 31, 2021 | $ 7,489,515 | $ 2,493 | 3,290,791 | (45) | 4,196,276 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share issuances, net of cancellations, shares | 676,000 | ||||||
Share issuances | 6,031 | $ 7 | 6,024 | ||||
Dividends declared | (143,134) | (143,134) | |||||
Share repurchases, shares | (24,162,000) | ||||||
Share repurchases | (1,074,673) | $ (242) | (1,074,431) | ||||
Cash paid for shares withheld for taxes | (14,326) | (14,326) | |||||
Share-based compensation | 33,323 | 33,323 | |||||
Net income | 2,617,317 | 2,617,317 | |||||
Other comprehensive income | $ 45 | 45 | |||||
Shareholders' Equity, shares at Dec. 31, 2022 | 225,840,443 | 225,840,000 | |||||
Shareholders' Equity at Dec. 31, 2022 | $ 8,914,098 | $ 2,258 | $ 3,330,138 | $ 0 | $ 5,581,702 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 2,617,317 | $ 1,946,320 | $ 1,406,839 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Deferred income tax expense | 106,584 | 59,168 | 137,598 |
Land-related charges | 66,656 | 12,302 | 20,305 |
Loss on debt retirement | 0 | 61,469 | 0 |
Goodwill impairment | 0 | 0 | 20,190 |
Depreciation and amortization | 70,918 | 69,953 | 66,081 |
Share-based compensation expense | 42,989 | 36,745 | 32,843 |
Equity in earnings of unconsolidated entities | (50,680) | (17,200) | (1,880) |
Proceeds from Equity Method Investment, Distribution | 49,151 | 2,110 | 505 |
Other, net | 1,431 | 1,586 | 263 |
Increase (decrease) in cash due to: | |||
Inventories | (2,256,690) | (1,266,398) | 2,988 |
Residential mortgage loans available-for-sale | 266,310 | (382,813) | (56,732) |
Other assets | (140,761) | (159,906) | (46,307) |
Accounts payable, accrued and other liabilities | (104,759) | 640,685 | 201,649 |
Net cash provided by operating activities | 668,466 | 1,004,021 | 1,784,342 |
Cash flows from investing activities: | |||
Capital expenditures | (112,661) | (72,781) | (58,354) |
Investments in unconsolidated entities | (64,701) | (101,591) | (753) |
Distributions of capital from unconsolidated entities | 21,704 | 53,927 | 27,939 |
Business acquisition | (10,400) | (10,400) | (83,251) |
Other investing activities, net | (5,685) | 6,713 | 6,472 |
Net cash used in investing activities | (171,743) | (124,132) | (107,947) |
Cash flows from financing activities: | |||
Repayments of notes payable | (4,856) | (836,893) | (65,267) |
Borrowings under revolving credit facility | 2,869,000 | 0 | 700,000 |
Repayments under revolving credit facility | (2,869,000) | 0 | (700,000) |
Financial Services borrowings (repayments), net | (39,412) | 214,302 | 85,248 |
Debt issuance costs | (11,167) | 0 | 0 |
Proceeds from liabilities related to consolidated inventory not owned | 58,729 | 0 | 0 |
Payments related to consolidated inventory not owned | 5,915 | 0 | 0 |
Stock option exercises | 0 | 11 | 111 |
Share repurchases | (1,074,673) | (897,303) | (170,676) |
Cash paid for shares withheld for taxes | (14,326) | (10,842) | (14,853) |
Dividends paid | (144,115) | (147,834) | (130,179) |
Net cash used in financing activities | (1,235,735) | (1,678,559) | (295,616) |
Net increase (decrease) | (739,012) | (798,670) | 1,380,779 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,833,565 | 2,632,235 | 1,251,456 |
Cash, cash equivalents, and restricted cash at end of period | 1,094,553 | 1,833,565 | 2,632,235 |
Supplemental Cash Flow Information: | |||
Interest paid (capitalized), net | 1,797 | 10,856 | 3,057 |
Income taxes paid, net | $ 641,948 | $ 457,406 | $ 264,248 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation PulteGroup, Inc. is one of the largest homebuilders in the 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 have mortgage banking operations, conducted principally through Pulte Mortgage LLC (“Pulte Mortgage”), and title and insurance brokerage operations. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. Business acquisitions On January 24, 2020, we acquired the operations of Innovative Construction Group ("ICG"), an offsite construction framing company located in Jacksonville, Florida, for $104 million, of which $83.3 million was paid in January 2020 with additional payments of $10.4 million in each of 2021 and 2022. The acquired net assets were recorded at their estimated fair values, including intangible assets of $27.8 million associated with customer relationships and $1.8 million associated with the ICG tradename, which are being amortized over seven five Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. Subsequent events We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). Cash and equivalents Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2022 and 2021 also included $42.9 million and $38.4 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. Restricted cash We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements in certain states until title transfers to the homebuyer. Investments in unconsolidated entities We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, “Investments – Equity Method and Joint Ventures”. If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other expense, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 4 . Intangible assets Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, totaled $68.9 million at both December 31, 2022 and 2021. We assess goodwill for impairment annually in the fourth quarter and if events or changes in circumstances indicate the carrying amount may not be recoverable. In accordance with ASC 350, "Intangibles", management evaluates the recoverability of goodwill by comparing the carrying value of the Company’s reporting units to their fair value. Fair value is determined using accepted valuation methods, including the use of discounted cash flows supplemented by market-based assessments of fair value. As a result of the significant decline in equity market valuations that occurred during the period between our acquisition of ICG in January 2020 and March 31, 2020, we determined that an event-driven goodwill impairment test was appropriate for the ICG goodwill, which resulted in an impairment totaling $20.2 million in the first quarter of 2020. This impairment was not the result of any unique factors specific to ICG's operations but, rather, reflected the broad-based declines in the market capitalizations of publicly-traded construction companies in the short period of time between the acquisition and the March 31, 2020 valuation date. Intangible assets also include tradenames and customer relationships acquired in connection with acquisitions and totaled $66.9 million, net of accumulated amortization of $87.7 million, at December 31, 2022, and $78.0 million, net of accumulated amortization of $76.6 million, at December 31, 2021. Such tradenames are generally being amortized over 20-year lives. Our customer relationships intangible asset resulted from the ICG acquisition and is being amortized over seven years. Amortization expense totaled $11.1 million, $16.5 million, and $19.7 million in 2022, 2021 and 2020, respectively, and is expected to be $10.5 million in 2023, $10.0 million in 2024, $9.3 million in 2025, $8.9 million in 2026, and $6.5 million in 2027. The ultimate realization of these assets is dependent upon the future cash flows and benefits that we expect to generate from their use. We assess intangibles for impairment if events or changes in circumstances indicate the carrying amount may not be recoverable. Property and equipment Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: office furniture and equipment - 3 to 10 years; leasehold improvements - life of the lease; software and hardware - 3 to 5 years; model park improvements and furnishings - 1 to 5 years. Property and equipment are included in other assets and totaled $200.3 million net of accumulated depreciation of $242.3 million at December 31, 2022 and $149.2 million net of accumulated depreciation of $228.5 million at December 31, 2021. Depreciation expense totaled $59.8 million, $53.5 million, and $46.4 million in 2022, 2021, and 2020, respectively. Advertising costs Advertising costs are expensed to selling, general, and administrative expense as incurred and totaled $61.6 million, $47.2 million, and $40.3 million, in 2022, 2021, and 2020, respectively. Employee benefits We maintain a defined contribution retirement plan that covers substantially all of our employees. Company contributions to the plan totaled $27.6 million, $23.4 million, and $20.4 million in 2022, 2021, and 2020, respectively. Other expense, net Other expense, net consists of the following ($000’s omitted): 2022 2021 2020 Write-offs of deposits and pre-acquisition costs (Note 2) $ (63,559) $ (12,283) $ (12,390) Amortization of intangible assets (Note 1) (11,118) (16,502) (19,685) Interest income 1,971 1,953 6,837 Interest expense (284) (502) (4,248) Equity in earnings of unconsolidated entities ( Note 4 ) 50,680 17,200 1,880 Miscellaneous, net 8,592 7,724 9,780 Total other expense, net $ (13,718) $ (2,410) $ (17,826) 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, 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 unvested restricted share units and other potentially dilutive instruments. Anti-dilutive shares were immaterial in 2022, 2021, and 2020. In accordance with ASC 260 "Earnings Per Share", the two-class method determines earnings per share for each class of common share 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 units and deferred shares are considered participating securities. The following table presents a reconciliation of the Numerator used in our earnings per common share calculation ($000's omitted): December 31, 2022 December 31, 2021 December 31, 2020 Numerator: Net income $ 2,617,317 $ 1,946,320 $ 1,406,839 Less: earnings distributed to participating securities (846) (1,218) (1,106) Less: undistributed earnings allocated to participating securities (15,330) (15,117) (11,348) Numerator for basic earnings per share $ 2,601,141 $ 1,929,985 $ 1,394,385 Add: undistributed earnings allocated to participating securities 15,330 15,117 11,348 Less: undistributed earnings reallocated to participating securities (15,229) (15,080) (11,312) Numerator for diluted earnings per share $ 2,601,242 $ 1,930,022 $ 1,394,421 Share-based compensation We measure compensation cost for share-based compensation on the grant date. Fair value for restricted share units is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted share units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. Forfeitures of share-based awards are recognized as a reduction of expense as incurred. See Note 7 . Income taxes The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between estimated and actual results could result in changes in the valuation of our 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 including the valuation and realization of deferred tax assets and liabilities 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. We follow the provisions of ASC 740, "Income Taxes", which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including relevant facts and circumstances, applicable tax law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to income taxes and unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 8 . 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 at the home closing 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 $783.6 million and $844.8 million at December 31, 2022 and 2021, 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 11 for information on warranties and related obligations. Land sale and other 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. Other revenues related to our construction services operations are generally recognized as materials are delivered and installation services are provided. Financial services revenues - 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 home and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy, and related contract assets for estimated future renewal commissions are included in other assets and totaled $57.3 million and $44.3 million at December 31, 2022 and 2021, respectively. Sales incentives When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. Inventory and cost of revenues Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. We test inventory for impairment when events and circumstances indicate that the undiscounted cash flows estimated to be generated by the community may be less than its carrying amount. Such indicators include gross margins or sales paces significantly below expectations, construction costs or land development costs significantly in excess of budgeted amounts, significant delays or changes in the planned development or strategy for the community, and other known qualitative factors. Communities that demonstrate potential impairment indicators are tested for impairment by comparing the expected undiscounted cash flows for the community to its carrying value. For those communities whose carrying values exceed the expected undiscounted cash flows, we estimate the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. See Note 2 . Land held for sale We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the fair value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 2 . 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 may serve to reduce 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. See Note 2 . 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 December 31, 2022 or 2021 because we determined that we were not the primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the applicable land option agreements. The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2022 December 31, 2021 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 213,895 $ 2,130,398 $ 179,604 $ 2,329,187 Other land options 264,860 3,269,843 225,318 3,128,691 $ 478,755 $ 5,400,241 $ 404,922 $ 5,457,878 Warranty liabilities Home buyers 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 a liability in the amount of such costs at the time revenue is recognized (see Note 11 ). Self-insured risks We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. 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, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs 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, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 11 . Residential mortgage loans available-for-sale Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments”, we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging". See Note 11 for discussion of the risks retained related to mortgage loan originations. 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. At December 31, 2022 and 2021, residential mortgage loans available-for-sale had an aggregate fair value of $677.2 million and $947.1 million, respectively, and an aggregate outstanding principal balance of $680.5 million and $924.5 million, respectively. These changes in fair value were substantially offset by changes in fair value of the corresponding derivative instruments. Net gains from the sale of mortgages during 2022, 2021, and 2020 were $157.3 million, $251.3 million, and $247.3 million, respectively, and have been included in Financial Services revenues. Mortgage servicing rights We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this exposure at the time the sale is recorded. Such reserves were immaterial at December 31, 2022 and 2021. Interest income on mortgage loans Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $14.2 million, $10.0 million, and $9.2 million in 2022, 2021, and 2020, respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors. Derivative instruments and hedging activities We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At December 31, 2022 and 2021, we had aggregate IRLCs of $653.2 million and $337.9 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 December 31, 2022 and 2021, we had unexpired forward contracts of $1.0 billion and $903.0 million, respectively, and whole loan investor commitments of $285.9 million and $310.0 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 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 location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2022 December 31, 2021 Other Assets Other Liabilities Other Assets Other Liabilities IRLCs $ 10,830 $ 1,572 $ 8,582 $ 33 Forward contracts 4,144 20,853 757 1,336 Whole loan commitments 806 165 384 4 $ 15,780 $ 22,590 $ 9,723 $ 1,373 Credit losses We are exposed to credit losses primarily through our vendors and insurance carriers. We assess and monitor each counterparty’s ability to pay amounts owed by considering contractual terms and conditions, the counterparty’s financial condition, macroeconomic factors, and business strategy. At December 31, 2022 and 2021, we reported $222.9 million and $208.4 million of assets in-scope under Accounting Standards Codification 326, "Financial Instruments - Credit Losses" ("ASC 326"). These assets consist primarily of insurance receivables, contract assets related to insurance brokerage commissions, accounts receivable, and vendor rebate receivables. Counterparties associated with these assets are generally highly rated. Allowances on the aforementioned in-scope assets were not material as of December 31, 2022. New accounting pronouncements On January 1, 2020, we adopted ASC 326, which changed the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology. We adopted ASC 326 using the modified retrospective transition method. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. Our adoption of ASC 326 resulted in a $0.7 million decrease to retained earnings as of January 1, 2020. On January 1, 2020, we adopted ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment", which removed the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under the new standard, goodwill impairment is determined by evaluating the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard was followed in the previously mentioned assessment of the ICG goodwill. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)", as amended by ASU 2021-01 in January 2021, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the cessation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2024. We will adopt these standards when LIBOR is discontinued and do not expect that the adoption will have a material impact on our consolidated financial statements or related disclosures. |
Inventory And Land Held For Sal
Inventory And Land Held For Sale | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory and land held for sale | Inventory and land held for sale Major components of inventory at December 31, 2022 and 2021 were ($000’s omitted): 2022 2021 Homes under construction $ 5,440,186 $ 4,225,309 Land under development 5,134,432 4,091,015 Raw land 679,341 731,245 Consolidated inventory not owned (a) 72,058 — $ 11,326,017 $ 9,047,569 (a) Consolidated inventory not owned includes land sold to third parties for which the Company retains a repurchase option. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2022 2021 2020 Interest in inventory, beginning of period $ 160,756 $ 193,409 $ 210,383 Interest capitalized 130,051 129,380 159,575 Interest expensed (153,545) (162,033) (176,549) Interest in inventory, end of period $ 137,262 $ 160,756 $ 193,409 Land-related charges We recorded the following land-related charges ($000's omitted): Statement of Operations Classification 2022 2021 2020 Net realizable value adjustments ("NRV") - land held for sale Land sale and other cost of revenues $ 107 $ 19 $ 871 Land impairments Home sale cost of revenues 2,990 — 7,044 Write-offs of deposits and pre-acquisition costs Other expense, net 63,559 12,283 12,390 Total land-related charges $ 66,656 $ 12,302 $ 20,305 Our evaluations for land-related charges are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of certain of our communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
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. Home sale revenues for detached and attached homes were $13.5 billion and $2.3 billion in 2022, $11.2 billion and $2.2 billion in 2021, and $8.9 billion and $1.6 billion in 2020, respectively. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Connecticut, Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio Texas: Texas West: Arizona, California, Colorado, Nevada, New Mexico, Washington We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking, title, and insurance brokerage operations. The Financial Services segment operates generally in the same markets as the Homebuilding segments. Evaluation of segment performance is generally based on income before income taxes. Each reportable segment generally follows the same accounting policies described in Note 1 . Operating Data by Segment ($000’s omitted) 2022 2021 2020 Revenues: Northeast $ 1,077,514 $ 1,127,476 $ 846,337 Southeast 2,795,640 2,234,297 1,691,822 Florida 3,981,766 3,154,583 2,350,055 Midwest 2,318,255 1,979,997 1,514,132 Texas 2,239,822 1,805,208 1,451,104 West 3,504,282 3,235,789 2,820,463 15,917,279 13,537,350 10,673,913 Financial Services 311,716 389,532 362,169 Consolidated revenues $ 16,228,995 $ 13,926,882 $ 11,036,082 Income before income taxes (a) : Northeast $ 244,233 $ 215,193 $ 136,985 Southeast 692,279 417,880 258,794 Florida (b) 939,034 585,680 362,276 Midwest 363,028 287,956 213,516 Texas 465,461 322,979 242,383 West (c) 687,403 592,845 424,304 Other homebuilding (d) (84,110) (134,405) (96,201) 3,307,328 2,288,128 1,542,057 Financial Services 132,230 221,717 186,637 Consolidated income before income taxes $ 3,439,558 $ 2,509,845 $ 1,728,694 (a) Includes certain land-related charges (see the following table and Note 2 ). (b) Includes goodwill impairment charge totaling $20.2 million in 2020 (see Note 1 ). (c) West includes a gain of $49.1 million related to a property sale in an unconsolidated entity in 2022. (d) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Also included are insurance reserve reversals of $65.0 million, $81.1 million, and $93.4 million in 2022, 2021 and 2020, respectively, partially offset by reserves against insurance receivables of $17.8 million in 2020 (see Note 11 ) and a loss on debt retirement of $61.5 million in 2021 (see Note 5 ). Operating Data by Segment ($000's omitted) 2022 2021 2020 Land-related charges*: Northeast $ 4,597 $ 1,433 $ 5,301 Southeast 18,381 5,365 3,815 Florida 13,515 1,088 1,395 Midwest 6,517 2,150 2,390 Texas 6,745 1,357 4,588 West 16,406 909 1,936 Other homebuilding 495 — 880 $ 66,656 $ 12,302 $ 20,305 * Land-related charges include land impairments, NRV adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. See Note 2 for additional discussion of these charges. Operating Data by Segment ($000's omitted) 2022 2021 2020 Depreciation and amortization: Northeast $ 2,956 $ 2,631 $ 2,454 Southeast 5,151 4,765 4,308 Florida 11,720 8,823 7,478 Midwest 7,035 6,332 5,329 Texas 5,591 4,989 3,631 West 11,840 11,898 11,450 Other homebuilding 19,929 24,811 26,459 64,222 64,249 61,109 Financial Services 6,696 5,704 4,972 $ 70,918 $ 69,953 $ 66,081 Operating Data by Segment ($000's omitted) December 31, 2022 Homes Under Land Under Raw Land Consolidated Inventory Not Owned Total Total Northeast $ 321,687 $ 241,897 $ 45,455 $ — $ 609,039 $ 700,413 Southeast 793,539 544,867 102,336 20,169 1,460,911 1,668,053 Florida 1,417,657 1,081,836 125,253 51,889 2,676,635 3,195,091 Midwest 523,194 689,541 22,467 — 1,235,202 1,382,227 Texas 690,622 726,342 133,300 — 1,550,264 1,735,683 West 1,662,251 1,528,863 238,758 — 3,429,872 3,771,808 Other homebuilding (a) 31,236 321,086 11,772 — 364,094 1,470,919 5,440,186 5,134,432 679,341 72,058 11,326,017 13,924,194 Financial Services — — — — — 872,321 $ 5,440,186 $ 5,134,432 $ 679,341 $ 72,058 $ 11,326,017 $ 14,796,515 December 31, 2021 Homes Under Land Under Raw Land Consolidated Inventory Not Owned Total Total Northeast $ 285,975 $ 246,128 $ 17,554 $ — $ 549,657 $ 644,019 Southeast 604,310 537,072 67,815 — 1,209,197 1,362,852 Florida 943,110 866,266 289,388 — 2,098,764 2,545,457 Midwest 527,001 460,279 15,869 — 1,003,149 1,132,081 Texas 581,417 512,925 95,833 — 1,190,175 1,315,943 West 1,235,457 1,191,834 227,850 — 2,655,141 2,955,283 Other homebuilding (a) 48,039 276,511 16,936 — 341,486 2,314,839 4,225,309 4,091,015 731,245 — 9,047,569 12,270,474 Financial Services — — — — — 1,082,157 $ 4,225,309 $ 4,091,015 $ 731,245 $ — $ 9,047,569 $ 13,352,631 (a) Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In unconsolidated entities | Investments in unconsolidated entities We participate in a number of joint ventures and other investments with independent third parties. These entities generally purchase, develop, and sell land, including selling land to us for use in our homebuilding operations. Our investments in such entities totaled $146.8 million and $98.2 million at December 31, 2022 and 2021, respectively. In 2022, 2021, and 2020, we recognized earnings from unconsolidated joint ventures of $50.7 million, $17.2 million, and $1.9 million, respectively. We received distributions from our unconsolidated joint ventures of $21.7 million, $53.9 million, and $27.9 million in 2022, 2021, and 2020, respectively. We made capital contributions to our unconsolidated joint ventures of $64.7 million, $101.6 million, and $0.8 million in 2022, 2021, and 2020, respectively. At December 31, 2022, aggregate outstanding debt of unconsolidated joint ventures was $77.3 million, of which $42.0 million 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 in which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our notes payable are summarized as follows ($000’s omitted): December 31, 2022 2021 5.500% unsecured senior notes due March 2026 (a) $ 500,000 $ 500,000 5.000% unsecured senior notes due January 2027 (a) 500,000 500,000 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) (9,701) (11,142) Total senior notes $ 1,990,299 $ 1,988,858 Other notes payable 55,228 40,185 Notes payable $ 2,045,527 $ 2,029,043 Estimated fair value $ 2,079,218 $ 2,496,875 (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. The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2022, we were in compliance with all of the covenants and requirements under the senior notes. Other notes payable include non-recourse and limited recourse collateralized notes with third parties that totaled $55.2 million and $40.2 million at December 31, 2022 and 2021, respectively. These notes have maturities ranging up to four years, are secured by the applicable land positions to which they relate, and generally have no recourse to any other assets. The stated interest rates on these notes range up to 6%. We recorded inventory through seller financing of $39.1 million, $50.9 million, and $52.0 million in 2022, 2021, and 2020, respectively. We retired outstanding debt totaling $4.9 million, $836.9 million, and $65.3 million during 2022, 2021, and 2020, respectively. The retirements in 2021 included a tender offer to retire $200.0 million and $100.0 million of our unsecured notes scheduled to mature in 2026 and 2027, respectively. The retirement in 2021 resulted in a loss of $61.5 million that included the write-off of debt issuance costs, unamortized discounts and premiums, and transaction fees related to the repurchased debt and which is reflected in other expense, net. Revolving credit facility We maintain a revolving credit facility ("Revolving Credit Facility") maturing in June 2027 that has a maximum borrowing capacity of $1.3 billion and contains an uncommitted accordion feature that could increase the capacity to $1.8 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, up to the maximum borrowing capacity. The interest rate on borrowings under the Revolving Credit Facility may be based on either the Secured Overnight Financing Rate or a base rate plus an applicable margin, as defined therein. The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of December 31, 2022, we were in compliance with all covenants. Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. At December 31, 2022, we had no borrowings outstanding, $303.4 million of letters of credit issued, and $946.6 million of remaining capacity under the Revolving Credit Facility. At December 31, 2021, we had no borrowings outstanding, $298.8 million of letters of credit issued, and $701.2 million of remaining capacity under the Revolving Credit Facility. Financial Services debt Pulte Mortgage maintains a master repurchase agreement with third party lenders (the "Repurchase Agreement") that matures on July 27, 2023. The maximum aggregate commitment was $800.0 million during the seasonally high borrowing period from December 27, 2022 through January 12, 2023. At all other times, the maximum aggregate commitment ranges from $360.0 million to $500.0 million. The purpose of the changes in capacity during the term of the agreement is to lower associated fees during seasonally lower volume periods of mortgage origination activity. 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. At December 31, 2022, Pulte Mortgage had $586.7 million outstanding at a weighted average interest rate of 5.39%, and $213.3 million of remaining capacity under the Repurchase Agreement. At December 31, 2021, Pulte Mortgage had $626.1 million outstanding at a weighted average interest rate of 2.37% and $23.9 million of remaining capacity under the Repurchase Agreement. Pulte Mortgage was in compliance with its covenants and requirements as of such dates. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity We declared quarterly cash dividends totaling $143.1 million, $148.1 million, and $135.1 million in 2022, 2021, and 2020, respectively. Under a share repurchase program authorized by our Board of Directors, we repurchased 24.2 million, 17.7 million, and 4.5 million shares in 2022, 2021, and 2020, respectively, for a total of $1.1 billion, $897.3 million, and $170.7 million in 2022, 2021, and 2020, respectively. On January 31, 2022, the Board of Directors increased our share repurchase authorization by $1.0 billion. At December 31, 2022, we had remaining authorization to repurchase $382.9 million of common shares. Under our stock compensation plans, we accept shares as payment under certain conditions related to stock option exercises and vesting of restricted shares and share units, generally related to the payment of tax obligations. During 2022, 2021, and 2020, employees surrendered shares valued at $14.3 million, $10.8 million, and $14.9 million, respectively, under these plans. Such share transactions are excluded from the above noted share repurchase authorization. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock compensation plans | Stock compensation plans We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted share units ("RSUs"), and performance share units ("PSUs") to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not to exceed ten years. Non-employee directors are awarded an annual distribution of common shares. RSUs represent the right to receive an equal number of common shares and are converted into common shares upon distribution. RSUs generally cliff vest after three years, and RSU holders earn cash or accrued dividends during the vesting period. PSUs vest upon attainment of the stated performance targets and minimum service requirements and are converted into common shares upon distribution. As of December 31, 2022, there were 11.3 million shares that remained available for grant under the plan. Our stock compensation expense is presented below ($000's omitted): 2022 2021 2020 RSUs and PSUs $ 33,323 $ 25,192 $ 22,065 Other long-term incentive plans 9,666 11,553 10,778 $ 42,989 $ 36,745 $ 32,843 RSUs and PSUs A summary of RSUs and PSUs is presented below (000’s omitted, except per share data): 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding, beginning of 1,995 $ 39 2,001 $ 33 2,528 $ 26 Granted 550 54 720 47 594 44 Distributed (813) 28 (642) 30 (952) 21 Forfeited (104) 48 (84) 38 (169) 33 Outstanding, end of year 1,628 $ 48 1,995 $ 39 2,001 $ 33 During 2022, 2021, and 2020, the total fair value of shares vested during the year was $40.5 million, $30.5 million, and $43.3 million, respectively. Unamortized compensation cost related to share awards was $25.4 million at December 31, 2022. These costs will be expensed over a weighted-average period of approximately two years. Additionally, there were 0.2 million deferred shares at December 31, 2022, that had vested but had not yet been paid out because the payout date had been deferred by the holders. Other long-term incentive plans We maintain long-term incentive plans for senior management and other employees that provide awards based on the achievement of stated performance targets over three-year periods. Awards are stated in dollars but are settled in common shares based on the stock price at the end of the performance period. If the share price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We adjust the liabilities and recognize the expense associated with the awards based on the probability of achieving the stated performance targets at each reporting period. Liabilities for these awards totaled $21.6 million and $22.6 million at December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2022 2021 2020 Current expense (benefit) Federal $ 615,434 $ 430,686 $ 159,677 State and other 100,223 73,671 24,580 $ 715,657 $ 504,357 $ 184,257 Deferred expense (benefit) Federal $ 55,653 $ 57,743 $ 116,484 State and other 50,931 1,425 21,114 $ 106,584 $ 59,168 $ 137,598 Income tax expense (benefit) $ 822,241 $ 563,525 $ 321,855 The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2022 2021 2020 Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax 3.4 3.3 3.3 Federal tax credits (0.9) (1.2) (4.8) Deferred tax asset valuation allowance 0.4 (0.8) (0.8) Other — 0.2 (0.1) Effective rate 23.9 % 22.5 % 18.6 % The effective tax rates differ from the federal statutory rate primarily due to state income tax expense, benefits associated with federal energy efficient home credits, and changes in valuation allowances relating to projected utilization of certain state net operating loss ("NOL") carryforwards. Income tax expense for 2020 includes a benefit of $56.8 million associated with the extension of federal energy efficient home credits related to homes closed in prior open tax years. On August 16, 2022, the Inflation Reduction Act ("IRA") was enacted, extending the federal efficient home credit through December 2032. The criteria for homes qualifying for the credit shifted to a higher standard effective January 1, 2023. We are currently analyzing the impact of the increased requirements on our ability to qualify homes for the credit. Other tax provisions of the IRA, including the corporate alternative minimum tax effective for tax years ended after December 31, 2022, are not expected to have a material impact on our financial statements. Deferred tax assets and liabilities reflect temporary differences arising from the different treatment of items for tax and accounting purposes. Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2022 2021 Deferred tax assets: Accrued insurance $ 138,289 $ 132,386 Inventory valuation reserves 58,339 62,806 Capitalized inventory expenses 32,620 13,839 State NOL carryforwards 105,609 144,746 Other 66,500 59,667 401,357 413,444 Deferred tax liabilities: Deferred income (439,863) (367,285) Fixed assets and intangibles (31,921) (21,324) Other (31,802) (26,151) (503,586) (414,760) Valuation allowance (30,869) (25,165) Net deferred tax asset (liability) $ (133,098) $ (26,481) We have state NOLs in various jurisdictions that may generally be carried forward up to 20 years, depending on the jurisdiction. Our state NOL carryforward deferred tax assets will expire if unused at various dates as follows: $32.8 million from 2023 to 2027 and $72.8 million from 2028 and thereafter. We evaluate our deferred tax assets each period to determine if a valuation allowance is required based on whether it is "more likely than not" that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods. We conduct our evaluation by considering all available positive and negative evidence, including, among other factors, historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. housing industry and broader economy. 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 our 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. We had $23.6 million and $22.5 million of gross unrecognized tax benefits at December 31, 2022 and 2021, respectively. If recognized, $18.7 million and $17.8 million, respectively, of these amounts would impact our effective tax rate. Additionally, we had accrued interest and penalties of $4.1 million and $2.9 million at December 31, 2022 and 2021, respectively. We do not expect the total amount of gross unrecognized tax benefits to increase or decrease by a material amount within the next twelve months. A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2022 2021 2020 Unrecognized tax benefits, beginning of period $ 22,536 $ 30,855 $ 40,300 Increases related to positions taken during a prior period — 1,428 — Decreases related to positions taken during a prior period (303) (8,896) (12,981) Increases related to positions taken during the current period 1,450 267 11,001 Decreases related to settlements with taxing authorities — — (7,465) Decreases related to lapse of the applicable statute of limitations (71) (1,118) — Unrecognized tax benefits, end of period $ 23,612 $ 22,536 $ 30,855 We continue to participate in the Compliance Assurance Process (“CAP”) with the IRS as an alternative to the traditional IRS examination process. Through the CAP program, we work with the IRS to achieve tax compliance by resolving issues prior to filing the tax return. We are also currently under examination by state taxing jurisdictions and anticipate finalizing certain of the examinations within the next twelve months. The outcome of these examinations is not yet determinable, and we are not aware of unrecorded liabilities. The statute of limitations for our major tax jurisdictions remains open for examination for tax years 2017 to 2022. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 677,207 947,139 IRLCs Level 2 9,258 8,549 Forward contracts Level 2 (16,709) (579) Whole loan commitments Level 2 641 380 Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 10,873 $ — Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 1,094,553 1,833,565 Financial Services debt Level 2 586,711 626,123 Senior notes payable Level 2 2,023,990 2,456,690 Other notes payable Level 2 55,228 40,185 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. See Note 1 for a more detailed discussion of these derivative instruments. 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 during the quarterly period ended as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. The carrying amounts of cash and equivalents, Financial Services debt, Other notes payable and the Revolving Credit Facility approximate their fair values due to their short-term nature and floating interest rate terms. The fair values of the Senior notes payable 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 the senior notes payable was $2.0 billion at both December 31, 2022 and 2021. |
Other Assets and Accrued and Ot
Other Assets and Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Other assets and accrued and other liabilities | Other assets and accrued and other liabilities Other assets are presented below ($000’s omitted): December 31, 2022 2021 Accounts and notes receivable: Insurance receivables (Note 11) $ 43,746 $ 57,490 Other receivables 193,047 161,102 236,793 218,592 Deposits and pre-acquisition costs (Note 1) 478,755 404,922 Prepaid expenses 223,524 159,683 Property and equipment, net (Note 1) 200,262 149,151 Right-of-use assets ( Note 11 ) 73,485 74,315 Income taxes receivable 24,281 71,400 Other 54,472 32,903 $ 1,291,572 $ 1,110,966 We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 11 ) and municipalities. In certain instances, we may accept consideration for land sales or other transactions in the form of a note receivable. December 31, 2022 2021 Self-insurance liabilities (Note 11) $ 635,857 $ 627,067 Compensation-related liabilities 239,459 261,096 Warranty liabilities (Note 11) 108,348 107,117 Income tax liabilities ( Note 8 ) 98,709 72,134 Lease liabilities ( Note 11 ) 90,083 92,663 Liabilities related to consolidated inventory not owned ( Note 2 ) 72,058 — Accrued interest 41,135 42,591 Dividends payable ( Note 6 ) 36,696 37,796 Loan origination liabilities (Note 11) 12,378 12,381 Other 350,479 323,633 $ 1,685,202 $ 1,576,478 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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. If a loan is determined to be faulty, we either indemnify the investor for potential future losses, repurchase the loan from the investor, or reimburse the investor's actual losses. In addition, certain trustees and investors continue to attempt to collect damages based on losses from loans that originated prior to 2009. Estimating the required liability for these potential losses requires a significant level of management judgment. During 2020, we increased our loan origination liabilities by $26.4 million based on settlements of a number of claims related to loans originated prior to 2009. Reserves provided (released) are reflected in Financial Services expenses. Changes in these liabilities were as follows ($000's omitted): 2022 2021 2020 Liabilities, beginning of period $ 12,381 $ 11,969 $ 25,159 Reserves provided (released), net 472 618 26,410 Payments (475) (206) (39,600) Liabilities, end of period $ 12,378 $ 12,381 $ 11,969 Given the unsettled claims, changes in values of underlying collateral over time, and other uncertainties regarding the ultimate resolution of known and potential claims, actual costs could differ from our current estimates. Community development and other special district obligations A community development district (“CDD”) or similar development authority is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period during which we are the landowner of the applicable parcels and we include our estimated obligations as part of our land development budgets. 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 $303.4 million and $2.2 billion, respectively, at December 31, 2022, and $298.8 million and $1.8 billion, respectively, at December 31, 2021. In the event any such letter of credit or surety bonds 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 the applicable projects but has 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 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. Warranty liabilities Factors that affect our warranty liabilities include the number of homes sold, historical and anticipated rates of warranty claims, and the projected cost of claims. 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 in warranty liabilities were as follows ($000’s omitted): 2022 2021 2020 Warranty liabilities, beginning of period $ 107,117 $ 82,744 $ 91,389 Reserves provided 85,011 93,919 64,492 Payments (90,508) (73,760) (70,869) Other adjustments 6,728 4,214 (2,268) Warranty liabilities, end of period $ 108,348 $ 107,117 $ 82,744 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 our own self-insured per occurrence and aggregate retentions, deductibles, policies issued by our captive insurance subsidiaries, and any potential claims in excess of available insurance policy limits. Our general liability insurance includes coverage for certain construction defects. While construction defect claims may relate to a variety of issues, the majority of our claims relate to alleged problems with siding, windows, roofing, and foundations. The availability of general liability insurance for the homebuilding industry and its subcontractors has become increasingly limited, and the insurance policies available require companies to retain significant per occurrence and aggregate retention levels. In certain instances, we may offer our subcontractors the opportunity to purchase general liability insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program. 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 retention up to an overall aggregate amount. Amounts paid to resolve 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 the purchased coverage levels. Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated carriers for whom we believe counterparty default risk is not significant. At any point in time, we are managing numerous individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverage. We reserve for costs associated with these 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 $635.9 million and $627.1 million at December 31, 2022 and 2021, 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 74% and 70% of the total general liability reserves at December 31, 2022 and 2021, 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. Volatility in both national and local housing market conditions may 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 time 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. 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. During 2022, 2021, and 2020, we reduced reserves, primarily general liability reserves, by $65.0 million, $81.1 million, and $93.4 million, respectively, as a result of changes in estimates resulting from actual claim experience observed being less than anticipated in previous actuarial projections. The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims. These changes in actuarial estimates did not involve any significant 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. There were no material adjustments to individual claims. Rather, the adjustments reflect an overall lower level of losses related to construction defect claims in recent years as compared with our previous experience. We attribute this favorable experience to a variety of factors, including improved construction techniques, rising home values, and increased participation from our subcontractors in resolving claims. Costs associated with our insurance programs are classified within selling, general, and administrative expenses. Changes in these liabilities were as follows ($000's omitted): 2022 2021 2020 Balance, beginning of period $ 627,067 $ 641,779 $ 709,798 Reserves provided 111,067 90,863 83,912 Adjustments to previously recorded reserves (64,965) (81,131) (93,431) Payments, net (a) (37,312) (24,444) (58,500) Balance, end of period $ 635,857 $ 627,067 $ 641,779 (a) 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. As reflected in Note 10 , our receivables from insurance carriers totaled $43.7 million and $57.5 million at December 31, 2022 and 2021, respectively. The insurance receivables relate to costs incurred or to be incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of both known and anticipated future construction defect claims that we believe to be insured related to previously closed homes. Given the complexity inherent with resolving construction defect claims in the homebuilding industry as described above, there typically is 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 takes time, involves the exchange of significant amounts of information, and frequently involves legal action. In 2020, we recorded reserves against insurance receivables of $17.8 million in connection with policy settlement negotiations with certain of our carriers. We believe collection of our recorded insurance receivables is probable based on the legal merits of our positions after review by legal counsel, the high credit ratings of our carriers, and our long history of collecting significant amounts of insurance reimbursements under similar insurance policies related to similar claims. While the outcomes of these matters 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. Leases We lease certain office space and equipment for use in our operations. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Right-of-use ("ROU") assets and lease liabilities are recorded on the balance sheet for all leases with an expected term of at least one year. Some leases include one or more options to renew. The exercise of lease renewal options is generally at our discretion. The depreciable lives of ROU assets and leasehold improvements are limited to the expected lease term. Certain of our lease agreements include rental payments based on a pro-rata share of the lessor’s operating costs, which are variable in nature. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. ROU assets are classified within other assets on the balance sheet, while lease liabilities are classified within accrued and other liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ROU assets and lease liabilities were $73.5 million and $90.1 million, respectively, at December 31, 2022, and $74.3 million and $92.7 million at December 31, 2021, respectively. We recorded an additional $14.5 million and $16.2 million of lease liabilities under operating leases during 2022 and 2021, respectively. Payments on lease liabilities during 2022, 2021, and 2020 totaled $21.9 million, $20.8 million, and $19.8 million respectively. Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of less than one year. Our total lease expense was $54.8 million, $43.3 million, and $38.2 million during 2022, 2021, and 2020, respectively. Our total lease expense in 2022, 2021, and 2020 is inclusive of variable lease costs of $9.9 million, $7.7 million, and $6.2 million respectively, and short-term lease costs of $21.2 million, $14.2 million, and $10.2 million, respectively. Sublease income was de minimis. The future minimum lease payments required under our leases as of December 31, 2022 were as follows ($000's omitted): Years Ending December 31, 2023 $ 25,771 2024 22,762 2025 14,691 2026 10,958 2027 8,448 Thereafter 15,386 Total lease payments (a) 98,016 Less: Interest (b) (7,933) Present value of lease liabilities (c) $ 90,083 (a) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $1.8 million of legally binding minimum lease payments for leases signed but not yet commenced at December 31, 2022. (b) Our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our discount rate for such leases to determine the present value of lease payments at the lease commencement date. (c) The weighted average remaining lease term and weighted average discount rate used in calculating our lease liabilities were 4.9 years and 5.4%, respectively, at December 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |
Apr. 23, 2019 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Consolidation Policy | The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of PulteGroup, Inc. and all of its direct and indirect subsidiaries and variable interest entities in which PulteGroup, Inc. is deemed to be the primary beneficiary. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. | |
Business Acquisitions Policy | Business acquisitions On January 24, 2020, we acquired the operations of Innovative Construction Group ("ICG"), an offsite construction framing company located in Jacksonville, Florida, for $104 million, of which $83.3 million was paid in January 2020 with additional payments of $10.4 million in each of 2021 and 2022. The acquired net assets were recorded at their estimated fair values, including intangible assets of $27.8 million associated with customer relationships and $1.8 million associated with the ICG tradename, which are being amortized over seven five | |
Use of Estimates Policy | The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. | |
Subsequent Events Policy | We evaluated subsequent events up until the time the financial statements were filed with the Securities and Exchange Commission ("SEC"). | |
Cash and Equivalents Policy | Cash and equivalents include institutional money market investments and time deposits with a maturity of three months or less when acquired. Cash and equivalents at December 31, 2022 and 2021 also included $42.9 million and $38.4 million, respectively, of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit. | |
Restricted Cash Policy | We maintain certain cash balances that are restricted as to their use, including customer deposits on home sales that are temporarily restricted by regulatory requirements in certain states until title transfers to the homebuyer. | |
Investments in Unconsolidated Entities Policy | We have investments in a number of unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. Certain of these entities sell land to us. We defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, “Investments – Equity Method and Joint Ventures”. If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other expense, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. See Note 4 . | |
Intangible Assets Policy | Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, totaled $68.9 million at both December 31, 2022 and 2021. We assess goodwill for impairment annually in the fourth quarter and if events or changes in circumstances indicate the carrying amount may not be recoverable. In accordance with ASC 350, "Intangibles", management evaluates the recoverability of goodwill by comparing the carrying value of the Company’s reporting units to their fair value. Fair value is determined using accepted valuation methods, including the use of discounted cash flows supplemented by market-based assessments of fair value. As a result of the significant decline in equity market valuations that occurred during the period between our acquisition of ICG in January 2020 and March 31, 2020, we determined that an event-driven goodwill impairment test was appropriate for the ICG goodwill, which resulted in an impairment totaling $20.2 million in the first quarter of 2020. This impairment was not the result of any unique factors specific to ICG's operations but, rather, reflected the broad-based declines in the market capitalizations of publicly-traded construction companies in the short period of time between the acquisition and the March 31, 2020 valuation date. Intangible assets also include tradenames and customer relationships acquired in connection with acquisitions and totaled $66.9 million, net of accumulated amortization of $87.7 million, at December 31, 2022, and $78.0 million, net of accumulated amortization of $76.6 million, at December 31, 2021. Such tradenames are generally being amortized over 20-year lives. Our customer relationships intangible asset resulted from the ICG acquisition and is being amortized over seven years. Amortization expense totaled $11.1 million, $16.5 million, and $19.7 million in 2022, 2021 and 2020, respectively, and is expected to be $10.5 million in 2023, $10.0 million in 2024, $9.3 million in 2025, $8.9 million in 2026, and $6.5 million in 2027. The ultimate realization of these assets is dependent upon the future cash flows and benefits that we expect to generate from their use. We assess intangibles for impairment if events or changes in circumstances indicate the carrying amount may not be recoverable. | |
Property and Equipment, Net and Depreciation Policy | Property and equipment are recorded at cost. Maintenance and repair costs are expensed as incurred. Depreciation is computed by the straight-line method based upon estimated useful lives as follows: office furniture and equipment - 3 to 10 years; leasehold improvements - life of the lease; software and hardware - 3 to 5 years; model park improvements and furnishings - 1 to 5 years. Property and equipment are included in other assets and totaled $200.3 million net of accumulated depreciation of $242.3 million at December 31, 2022 and $149.2 million net of accumulated depreciation of $228.5 million at December 31, 2021. Depreciation expense totaled $59.8 million, $53.5 million, and $46.4 million in 2022, 2021, and 2020, respectively. | |
Advertising Costs Policy | Advertising costs are expensed to selling, general, and administrative expense as incurred and totaled $61.6 million, $47.2 million, and $40.3 million, in 2022, 2021, and 2020, respectively. | |
Employee Benefits Policy | We maintain a defined contribution retirement plan that covers substantially all of our employees. Company contributions to the plan totaled $27.6 million, $23.4 million, and $20.4 million in 2022, 2021, and 2020, respectively. | |
Earnings Per Share Policy | Basic earnings per share is computed by dividing income available to common shareholders (the “Numerator”) by the weighted-average number of common shares, 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 unvested restricted share units and other potentially dilutive instruments. Anti-dilutive shares were immaterial in 2022, 2021, and 2020.In accordance with ASC 260 "Earnings Per Share", the two-class method determines earnings per share for each class of common share 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 units and deferred shares are considered participating securities | |
Share-based Compensation Policy | We measure compensation cost for share-based compensation on the grant date. Fair value for restricted share units is determined based on the quoted price of our common shares on the grant date. We recognize compensation expense for restricted share units, the majority of which cliff vest at the end of three years, ratably over the vesting period. For share-based awards containing performance conditions, we recognize compensation expense ratably over the vesting period when it is probable that the stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. Compensation expense related to our share-based awards is included in selling, general, and administrative expense, except for a small portion recognized in Financial Services expenses. Forfeitures of share-based awards are recognized as a reduction of expense as incurred. See Note 7 . | |
Income Taxes Policy | The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between estimated and actual results could result in changes in the valuation of our 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 including the valuation and realization of deferred tax assets and liabilities 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. We follow the provisions of ASC 740, "Income Taxes", which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Significant judgment is required to evaluate uncertain tax positions. Our evaluations of tax positions consider a variety of factors, including relevant facts and circumstances, applicable tax law, correspondence with taxing authorities, and effective settlements of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense (benefit) in the period in which the change is made. Interest and penalties related to income taxes and unrecognized tax benefits are recognized as a component of income tax expense (benefit). See Note 8 . | |
Homebuilding Revenue Recognition Policy | 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 at the home closing 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 $783.6 million and $844.8 million at December 31, 2022 and 2021, 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 11 for information on warranties and related obligations. Land sale and other 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. Other revenues related to our construction services operations are generally recognized as materials are delivered and installation services are provided. Financial services revenues - 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 home and other insurance policies placed with third party carriers through various agency channels. Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy, and related contract assets for estimated future renewal commissions are included in other assets and totaled $57.3 million and $44.3 million at December 31, 2022 and 2021, respectively. | |
Sales Incentives Policy | When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of house closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of house closing. | |
Inventory and Cost of Revenues Policy | Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. For those communities for which construction and development activities have been idled, applicable interest and real estate taxes are expensed as incurred. Land acquisition and development costs are allocated to individual lots using an average lot cost determined based on the total expected land acquisition and development costs and the total expected home closings for the community. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete. The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities. Adjustments to estimated total land acquisition and development costs for the community affect the amounts costed for the community’s remaining lots. | |
Land Held for Sale Policy | We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the fair value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record net realizable value adjustments for land held for sale within Homebuilding land sale cost of revenues. See Note 2 | |
Land Option Agreements Policy | 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 may serve to reduce 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. See Note 2 . | |
Allowance for Warranties Policy | Home buyers 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 a liability in the amount of such costs at the time revenue is recognized | |
Self-insured Risks Policy | We maintain, and require the majority of our subcontractors to maintain, general liability insurance coverage, including coverage for certain construction defects. 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, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. However, we retain a significant portion of the overall risk for such claims. We reserve for these costs 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, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. In certain instances, we have the ability to recover a portion of our costs under various insurance policies or from our subcontractors or other third parties. Estimates of such amounts are recorded when recovery is considered probable. See Note 11 | |
Residential Mortgage Loans Available for Sale Policy | Substantially all of the loans originated by us and their related servicing rights are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days. In accordance with ASC 825, “Financial Instruments”, we use the fair value option to record residential mortgage loans available-for-sale. Election of the fair value option for these loans allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. We do not designate any derivative instruments as hedges or apply the hedge accounting provisions of ASC 815, “Derivatives and Hedging". See Note 11 for discussion of the risks retained related to mortgage loan originations. | |
Mortgage Servicing Rights Policy | Mortgage servicing rights We sell the servicing rights for the loans we originate through fixed price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the servicing rights for only a short period of time. The servicing sales contracts provide for the reimbursement of payments made by the purchaser if loans prepay within specified periods of time, generally within 90 to 120 days after sale. We establish reserves for this exposure at the time the sale is recorded. Such reserves were immaterial at December 31, 2022 and 2021. | |
Interest Income on Mortgage Loans Policy | Interest income on mortgage loans is recorded in Financial Services revenues, accrued from the date a mortgage loan is originated until the loan is sold, and totaled $14.2 million, $10.0 million, and $9.2 million in 2022, 2021, and 2020, respectively. Loans are placed on non-accrual status once they become greater than 90 days past due their contractual terms. Subsequent payments received are applied according to the contractual terms of the loan. Mortgage discounts are not amortized as interest income due to the short period the loans are held until sale to third party investors | |
Derivative Instruments and Hedging Activities Policy | We are party to interest rate lock commitments ("IRLCs") with customers resulting from our mortgage origination operations. At December 31, 2022 and 2021, we had aggregate IRLCs of $653.2 million and $337.9 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 December 31, 2022 and 2021, we had unexpired forward contracts of $1.0 billion and $903.0 million, respectively, and whole loan investor commitments of $285.9 million and $310.0 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. | |
New Accounting Pronouncements Policy | New accounting pronouncements On January 1, 2020, we adopted ASC 326, which changed the impairment model for most financial assets and certain other instruments from an "incurred loss" approach to a new "expected credit loss" methodology. We adopted ASC 326 using the modified retrospective transition method. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. Our adoption of ASC 326 resulted in a $0.7 million decrease to retained earnings as of January 1, 2020. On January 1, 2020, we adopted ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment", which removed the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under the new standard, goodwill impairment is determined by evaluating the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard was followed in the previously mentioned assessment of the ICG goodwill. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)", as amended by ASU 2021-01 in January 2021, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the cessation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2024. We will adopt these standards when LIBOR is discontinued and do not expect that the adoption will have a material impact on our consolidated financial statements or related disclosures. | |
Inventory, Interest Capitalization Policy | We capitalize interest cost into homebuilding inventories. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is allocated over the period based on the timing of home closings.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 Policy | 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. See Note 1 for a more detailed discussion of these derivative instruments. 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 during the quarterly period ended as of the respective balance sheet dates. See Note 1 for a more detailed discussion of the valuation methods used for inventory. | |
Financing Receivables Policy | We record receivables from various parties in the normal course of business, including amounts due from insurance companies (see Note 11 | |
Legal Reserves Policy | We are involved in 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Other Expense, Net | Other expense, net consists of the following ($000’s omitted): 2022 2021 2020 Write-offs of deposits and pre-acquisition costs (Note 2) $ (63,559) $ (12,283) $ (12,390) Amortization of intangible assets (Note 1) (11,118) (16,502) (19,685) Interest income 1,971 1,953 6,837 Interest expense (284) (502) (4,248) Equity in earnings of unconsolidated entities ( Note 4 ) 50,680 17,200 1,880 Miscellaneous, net 8,592 7,724 9,780 Total other expense, net $ (13,718) $ (2,410) $ (17,826) |
Schedule of Earnings Per Share of Common Stock | The following table presents a reconciliation of the Numerator used in our earnings per common share calculation ($000's omitted): December 31, 2022 December 31, 2021 December 31, 2020 Numerator: Net income $ 2,617,317 $ 1,946,320 $ 1,406,839 Less: earnings distributed to participating securities (846) (1,218) (1,106) Less: undistributed earnings allocated to participating securities (15,330) (15,117) (11,348) Numerator for basic earnings per share $ 2,601,141 $ 1,929,985 $ 1,394,385 Add: undistributed earnings allocated to participating securities 15,330 15,117 11,348 Less: undistributed earnings reallocated to participating securities (15,229) (15,080) (11,312) Numerator for diluted earnings per share $ 2,601,242 $ 1,930,022 $ 1,394,421 |
Schedule Of Company Interests In Land Option Agreements | The following provides a summary of our interests in land option agreements ($000’s omitted): December 31, 2022 December 31, 2021 Deposits and Remaining Purchase Deposits and Remaining Purchase Land options with VIEs $ 213,895 $ 2,130,398 $ 179,604 $ 2,329,187 Other land options 264,860 3,269,843 225,318 3,128,691 $ 478,755 $ 5,400,241 $ 404,922 $ 5,457,878 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments and their location in the Consolidated Balance Sheets are summarized below ($000’s omitted): December 31, 2022 December 31, 2021 Other Assets Other Liabilities Other Assets Other Liabilities IRLCs $ 10,830 $ 1,572 $ 8,582 $ 33 Forward contracts 4,144 20,853 757 1,336 Whole loan commitments 806 165 384 4 $ 15,780 $ 22,590 $ 9,723 $ 1,373 |
Inventory And Land Held For S_2
Inventory And Land Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Major components of inventory at December 31, 2022 and 2021 were ($000’s omitted): 2022 2021 Homes under construction $ 5,440,186 $ 4,225,309 Land under development 5,134,432 4,091,015 Raw land 679,341 731,245 Consolidated inventory not owned (a) 72,058 — $ 11,326,017 $ 9,047,569 (a) Consolidated inventory not owned includes land sold to third parties for which the Company retains a repurchase option. |
Capitalized Interest Rollforward | Activity related to interest capitalized into inventory is as follows ($000’s omitted): Years Ended December 31, 2022 2021 2020 Interest in inventory, beginning of period $ 160,756 $ 193,409 $ 210,383 Interest capitalized 130,051 129,380 159,575 Interest expensed (153,545) (162,033) (176,549) Interest in inventory, end of period $ 137,262 $ 160,756 $ 193,409 |
Land-related Charges | We recorded the following land-related charges ($000's omitted): Statement of Operations Classification 2022 2021 2020 Net realizable value adjustments ("NRV") - land held for sale Land sale and other cost of revenues $ 107 $ 19 $ 871 Land impairments Home sale cost of revenues 2,990 — 7,044 Write-offs of deposits and pre-acquisition costs Other expense, net 63,559 12,283 12,390 Total land-related charges $ 66,656 $ 12,302 $ 20,305 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Data by Segment | Operating Data by Segment ($000’s omitted) 2022 2021 2020 Revenues: Northeast $ 1,077,514 $ 1,127,476 $ 846,337 Southeast 2,795,640 2,234,297 1,691,822 Florida 3,981,766 3,154,583 2,350,055 Midwest 2,318,255 1,979,997 1,514,132 Texas 2,239,822 1,805,208 1,451,104 West 3,504,282 3,235,789 2,820,463 15,917,279 13,537,350 10,673,913 Financial Services 311,716 389,532 362,169 Consolidated revenues $ 16,228,995 $ 13,926,882 $ 11,036,082 Income before income taxes (a) : Northeast $ 244,233 $ 215,193 $ 136,985 Southeast 692,279 417,880 258,794 Florida (b) 939,034 585,680 362,276 Midwest 363,028 287,956 213,516 Texas 465,461 322,979 242,383 West (c) 687,403 592,845 424,304 Other homebuilding (d) (84,110) (134,405) (96,201) 3,307,328 2,288,128 1,542,057 Financial Services 132,230 221,717 186,637 Consolidated income before income taxes $ 3,439,558 $ 2,509,845 $ 1,728,694 (a) Includes certain land-related charges (see the following table and Note 2 ). (b) Includes goodwill impairment charge totaling $20.2 million in 2020 (see Note 1 ). (c) West includes a gain of $49.1 million related to a property sale in an unconsolidated entity in 2022. (d) Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. Also included are insurance reserve reversals of $65.0 million, $81.1 million, and $93.4 million in 2022, 2021 and 2020, respectively, partially offset by reserves against insurance receivables of $17.8 million in 2020 (see Note 11 ) and a loss on debt retirement of $61.5 million in 2021 (see Note 5 ). Operating Data by Segment ($000's omitted) December 31, 2022 Homes Under Land Under Raw Land Consolidated Inventory Not Owned Total Total Northeast $ 321,687 $ 241,897 $ 45,455 $ — $ 609,039 $ 700,413 Southeast 793,539 544,867 102,336 20,169 1,460,911 1,668,053 Florida 1,417,657 1,081,836 125,253 51,889 2,676,635 3,195,091 Midwest 523,194 689,541 22,467 — 1,235,202 1,382,227 Texas 690,622 726,342 133,300 — 1,550,264 1,735,683 West 1,662,251 1,528,863 238,758 — 3,429,872 3,771,808 Other homebuilding (a) 31,236 321,086 11,772 — 364,094 1,470,919 5,440,186 5,134,432 679,341 72,058 11,326,017 13,924,194 Financial Services — — — — — 872,321 $ 5,440,186 $ 5,134,432 $ 679,341 $ 72,058 $ 11,326,017 $ 14,796,515 December 31, 2021 Homes Under Land Under Raw Land Consolidated Inventory Not Owned Total Total Northeast $ 285,975 $ 246,128 $ 17,554 $ — $ 549,657 $ 644,019 Southeast 604,310 537,072 67,815 — 1,209,197 1,362,852 Florida 943,110 866,266 289,388 — 2,098,764 2,545,457 Midwest 527,001 460,279 15,869 — 1,003,149 1,132,081 Texas 581,417 512,925 95,833 — 1,190,175 1,315,943 West 1,235,457 1,191,834 227,850 — 2,655,141 2,955,283 Other homebuilding (a) 48,039 276,511 16,936 — 341,486 2,314,839 4,225,309 4,091,015 731,245 — 9,047,569 12,270,474 Financial Services — — — — — 1,082,157 $ 4,225,309 $ 4,091,015 $ 731,245 $ — $ 9,047,569 $ 13,352,631 (a) Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments. |
Land-Related Charges By Reporting Segment | Operating Data by Segment ($000's omitted) 2022 2021 2020 Land-related charges*: Northeast $ 4,597 $ 1,433 $ 5,301 Southeast 18,381 5,365 3,815 Florida 13,515 1,088 1,395 Midwest 6,517 2,150 2,390 Texas 6,745 1,357 4,588 West 16,406 909 1,936 Other homebuilding 495 — 880 $ 66,656 $ 12,302 $ 20,305 * Land-related charges include land impairments, NRV adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue. See Note 2 for additional discussion of these charges. |
Depreciation and Amortization Expense by Reporting Segment | Operating Data by Segment ($000's omitted) 2022 2021 2020 Depreciation and amortization: Northeast $ 2,956 $ 2,631 $ 2,454 Southeast 5,151 4,765 4,308 Florida 11,720 8,823 7,478 Midwest 7,035 6,332 5,329 Texas 5,591 4,989 3,631 West 11,840 11,898 11,450 Other homebuilding 19,929 24,811 26,459 64,222 64,249 61,109 Financial Services 6,696 5,704 4,972 $ 70,918 $ 69,953 $ 66,081 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | Our notes payable are summarized as follows ($000’s omitted): December 31, 2022 2021 5.500% unsecured senior notes due March 2026 (a) $ 500,000 $ 500,000 5.000% unsecured senior notes due January 2027 (a) 500,000 500,000 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) (9,701) (11,142) Total senior notes $ 1,990,299 $ 1,988,858 Other notes payable 55,228 40,185 Notes payable $ 2,045,527 $ 2,029,043 Estimated fair value $ 2,079,218 $ 2,496,875 (a) Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries. |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Compensation Expense by Plan Type | Our stock compensation expense is presented below ($000's omitted): 2022 2021 2020 RSUs and PSUs $ 33,323 $ 25,192 $ 22,065 Other long-term incentive plans 9,666 11,553 10,778 $ 42,989 $ 36,745 $ 32,843 |
Restricted Stock, RSUs, and Performance Shares Activity Rollforward | A summary of RSUs and PSUs is presented below (000’s omitted, except per share data): 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding, beginning of 1,995 $ 39 2,001 $ 33 2,528 $ 26 Granted 550 54 720 47 594 44 Distributed (813) 28 (642) 30 (952) 21 Forfeited (104) 48 (84) 38 (169) 33 Outstanding, end of year 1,628 $ 48 1,995 $ 39 2,001 $ 33 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted): 2022 2021 2020 Current expense (benefit) Federal $ 615,434 $ 430,686 $ 159,677 State and other 100,223 73,671 24,580 $ 715,657 $ 504,357 $ 184,257 Deferred expense (benefit) Federal $ 55,653 $ 57,743 $ 116,484 State and other 50,931 1,425 21,114 $ 106,584 $ 59,168 $ 137,598 Income tax expense (benefit) $ 822,241 $ 563,525 $ 321,855 |
Effective Income Tax Rate Reconciliation | The following table reconciles the statutory federal income tax rate to the effective income tax rate: 2022 2021 2020 Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax 3.4 3.3 3.3 Federal tax credits (0.9) (1.2) (4.8) Deferred tax asset valuation allowance 0.4 (0.8) (0.8) Other — 0.2 (0.1) Effective rate 23.9 % 22.5 % 18.6 % |
Deferred Tax Assets and Liabilities | Components of our net deferred tax asset are as follows ($000’s omitted): At December 31, 2022 2021 Deferred tax assets: Accrued insurance $ 138,289 $ 132,386 Inventory valuation reserves 58,339 62,806 Capitalized inventory expenses 32,620 13,839 State NOL carryforwards 105,609 144,746 Other 66,500 59,667 401,357 413,444 Deferred tax liabilities: Deferred income (439,863) (367,285) Fixed assets and intangibles (31,921) (21,324) Other (31,802) (26,151) (503,586) (414,760) Valuation allowance (30,869) (25,165) Net deferred tax asset (liability) $ (133,098) $ (26,481) |
Summary of Income Tax Contingencies | A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 2022 2021 2020 Unrecognized tax benefits, beginning of period $ 22,536 $ 30,855 $ 40,300 Increases related to positions taken during a prior period — 1,428 — Decreases related to positions taken during a prior period (303) (8,896) (12,981) Increases related to positions taken during the current period 1,450 267 11,001 Decreases related to settlements with taxing authorities — — (7,465) Decreases related to lapse of the applicable statute of limitations (71) (1,118) — Unrecognized tax benefits, end of period $ 23,612 $ 22,536 $ 30,855 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted): Financial Instrument Fair Value Fair Value December 31, December 31, Measured at fair value on a recurring basis: Residential mortgage loans available-for-sale Level 2 677,207 947,139 IRLCs Level 2 9,258 8,549 Forward contracts Level 2 (16,709) (579) Whole loan commitments Level 2 641 380 Measured at fair value on a non-recurring basis: House and land inventory Level 3 $ 10,873 $ — Disclosed at fair value: Cash and equivalents (including restricted cash) Level 1 1,094,553 1,833,565 Financial Services debt Level 2 586,711 626,123 Senior notes payable Level 2 2,023,990 2,456,690 Other notes payable Level 2 55,228 40,185 |
Other Assets and Accrued and _2
Other Assets and Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets and Accrued and Other Liabilities [Abstract] | |
Schedule of Other Assets | Other assets are presented below ($000’s omitted): December 31, 2022 2021 Accounts and notes receivable: Insurance receivables (Note 11) $ 43,746 $ 57,490 Other receivables 193,047 161,102 236,793 218,592 Deposits and pre-acquisition costs (Note 1) 478,755 404,922 Prepaid expenses 223,524 159,683 Property and equipment, net (Note 1) 200,262 149,151 Right-of-use assets ( Note 11 ) 73,485 74,315 Income taxes receivable 24,281 71,400 Other 54,472 32,903 $ 1,291,572 $ 1,110,966 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities are presented below ($000’s omitted): December 31, 2022 2021 Self-insurance liabilities (Note 11) $ 635,857 $ 627,067 Compensation-related liabilities 239,459 261,096 Warranty liabilities (Note 11) 108,348 107,117 Income tax liabilities ( Note 8 ) 98,709 72,134 Lease liabilities ( Note 11 ) 90,083 92,663 Liabilities related to consolidated inventory not owned ( Note 2 ) 72,058 — Accrued interest 41,135 42,591 Dividends payable ( Note 6 ) 36,696 37,796 Loan origination liabilities (Note 11) 12,378 12,381 Other 350,479 323,633 $ 1,685,202 $ 1,576,478 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Loan Origination Liability | Changes in these liabilities were as follows ($000's omitted): 2022 2021 2020 Liabilities, beginning of period $ 12,381 $ 11,969 $ 25,159 Reserves provided (released), net 472 618 26,410 Payments (475) (206) (39,600) Liabilities, end of period $ 12,378 $ 12,381 $ 11,969 |
Summary of Changes in Warranty Liability | Changes in warranty liabilities were as follows ($000’s omitted): 2022 2021 2020 Warranty liabilities, beginning of period $ 107,117 $ 82,744 $ 91,389 Reserves provided 85,011 93,919 64,492 Payments (90,508) (73,760) (70,869) Other adjustments 6,728 4,214 (2,268) Warranty liabilities, end of period $ 108,348 $ 107,117 $ 82,744 |
Summary of Changes in Self-insurance Liability | Changes in these liabilities were as follows ($000's omitted): 2022 2021 2020 Balance, beginning of period $ 627,067 $ 641,779 $ 709,798 Reserves provided 111,067 90,863 83,912 Adjustments to previously recorded reserves (64,965) (81,131) (93,431) Payments, net (a) (37,312) (24,444) (58,500) Balance, end of period $ 635,857 $ 627,067 $ 641,779 |
Schedule of Future Minimum Lease Payments Required Under Leases | The future minimum lease payments required under our leases as of December 31, 2022 were as follows ($000's omitted): Years Ending December 31, 2023 $ 25,771 2024 22,762 2025 14,691 2026 10,958 2027 8,448 Thereafter 15,386 Total lease payments (a) 98,016 Less: Interest (b) (7,933) Present value of lease liabilities (c) $ 90,083 (a) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $1.8 million of legally binding minimum lease payments for leases signed but not yet commenced at December 31, 2022. (b) Our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our discount rate for such leases to determine the present value of lease payments at the lease commencement date. (c) The weighted average remaining lease term and weighted average discount rate used in calculating our lease liabilities were 4.9 years and 5.4%, respectively, at December 31, 2022. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 24, 2020 USD ($) | Apr. 23, 2019 | Jan. 31, 2020 | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Payments to acquire businesses, gross | $ 10,400 | $ 10,400 | $ 83,251 | |||||
Goodwill impairment | $ 20,200 | 0 | 0 | 20,190 | ||||
Escrow deposit | 42,900 | 38,400 | ||||||
Restricted cash | 41,449 | 54,477 | ||||||
Finite-Lived Intangible Assets, Net | 66,900 | 78,000 | ||||||
Intangible assets, accumulated amortization | 87,700 | 76,600 | ||||||
Intangible assets amortization expense | 11,118 | 16,502 | 19,685 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 10,500 | |||||||
Future Amortization Expense, Year Two | 10,000 | |||||||
Future Amortization Expense, Year Three | 9,300 | |||||||
Future Amortization Expense, Year Four | 8,900 | |||||||
Future Amortization Expense, Year Five | 6,500 | |||||||
Property and equipment, net | 200,262 | 149,151 | ||||||
Property and equipment, accumulated depreciation | 242,300 | 228,500 | ||||||
Depreciation Expense | 59,800 | 53,500 | 46,400 | |||||
Advertising Expense | 61,600 | 47,200 | 40,300 | |||||
Employee benefit plan company contributions | 27,600 | 23,400 | 20,400 | |||||
Customer deposits | 783,556 | 844,785 | ||||||
Capitalized contract costs | $ 57,300 | $ 44,300 | ||||||
Number of VIEs requiring consolidation | 0 | 0 | ||||||
Residential mortgage loans available-for-sale | $ 677,207 | $ 947,139 | ||||||
Residential mortgage loans available-for-sale aggregate outstanding principal balance | 680,500 | 924,500 | ||||||
Net gains from the sale of mortgages | $ 157,300 | 251,300 | 247,300 | |||||
Days past contractual term once loans no longer accrue interest income | 90 days | |||||||
Variability in future cash flows of derivative instruments in days | 60 days | |||||||
Stockholders' Equity Attributable to Parent | $ (8,914,098) | (7,489,515) | (6,569,989) | $ (5,458,180) | ||||
Minimum | Office Furniture and Equipment [Member] | ||||||||
Property and equipment, useful life | 3 years | |||||||
Minimum | Software and Hardware [Member] | ||||||||
Property and equipment, useful life | 3 years | |||||||
Minimum | Model Park Improvements and Furnishings [Member] | ||||||||
Property and equipment, useful life | 1 year | |||||||
Maximum | Office Furniture and Equipment [Member] | ||||||||
Property and equipment, useful life | 10 years | |||||||
Maximum | Software and Hardware [Member] | ||||||||
Property and equipment, useful life | 5 years | |||||||
Maximum | Model Park Improvements and Furnishings [Member] | ||||||||
Property and equipment, useful life | 5 years | |||||||
Financial Services | ||||||||
Interest income on mortgage loans | $ 14,200 | 10,000 | 9,200 | |||||
IRLCs | ||||||||
Derivative, Notional Amount | 653,200 | 337,900 | ||||||
Forward contracts | ||||||||
Derivative, Notional Amount | 1,000,000 | 903,000 | ||||||
Whole loan commitments | ||||||||
Derivative, Notional Amount | 285,900 | 310,000 | ||||||
American West Homes [Member] [Member] | Trade Names [Member] | ||||||||
Weighted average useful life (in years) | 20 years | |||||||
Innovative Construction Group [Member] | ||||||||
Business combination, consideration transferred | $ 104,000 | |||||||
Payments to acquire businesses, gross | 83,300 | $ 10,400 | 10,400 | |||||
Goodwill | 48,700 | |||||||
Innovative Construction Group [Member] | Trade Names [Member] | ||||||||
Finite-lived intangible assets acquired | $ 1,800 | |||||||
Weighted average useful life (in years) | 5 years | |||||||
Innovative Construction Group [Member] | Customer Relationships [Member] | ||||||||
Finite-lived intangible assets acquired | $ 27,800 | |||||||
Weighted average useful life (in years) | 7 years | 7 years | ||||||
JW Homes (Wieland) [Member] | ||||||||
Goodwill | 68,900 | |||||||
Restricted stock [Member] | ||||||||
Share-based compensation vesting period | 3 years | |||||||
Retained Earnings | ||||||||
Stockholders' Equity Attributable to Parent | $ (5,581,702) | (4,196,276) | $ (3,306,057) | (2,220,574) | ||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Insurance Receivables, Contract Assets, and Vendor Rebate Receivables recognized | $ 222,900 | $ 208,400 | ||||||
Accounting Standards Update 2016-13 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Stockholders' Equity Attributable to Parent | $ 735 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Other Expense, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Write-off of deposits and pre-acquisition costs | $ (63,559) | $ (12,283) | $ (12,390) |
Amortization of intangible assets | (11,118) | (16,502) | (19,685) |
Interest income | 1,971 | 1,953 | 6,837 |
Interest expense | (284) | (502) | (4,248) |
Equity in earnings of unconsolidated entities | 50,680 | 17,200 | 1,880 |
Miscellaneous, net | 8,592 | 7,724 | 9,780 |
Total other expense, net | $ (13,718) | $ (2,410) | $ (17,826) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income | $ 2,617,317 | $ 1,946,320 | $ 1,406,839 |
Less: earnings distributed to participating securities | (846) | (1,218) | (1,106) |
Less: undistributed earnings allocated to participating securities | (15,330) | (15,117) | (11,348) |
Numerator for basic earnings per share | 2,601,141 | 1,929,985 | 1,394,385 |
Add back: undistributed earnings allocated to participating securities | 15,330 | 15,117 | 11,348 |
Less: undistributed earnings reallocated to participating securities | (15,229) | (15,080) | (11,312) |
Numerator for diluted earnings per share | $ 2,601,242 | $ 1,930,022 | $ 1,394,421 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule Of The Company's Interests In Land Option Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | $ 478,755 | $ 404,922 |
Remaining Purchase Price | 5,400,241 | 5,457,878 |
Land options with VIEs | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 213,895 | 179,604 |
Remaining Purchase Price | 2,130,398 | 2,329,187 |
Other land options | ||
Land under option agreement [Line Items] | ||
Deposits and Pre-acquisition Costs | 264,860 | 225,318 |
Remaining Purchase Price | $ 3,269,843 | $ 3,128,691 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Fair Value Of the Company's Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | $ 15,780 | $ 9,723 |
Other Liabilities | 22,590 | 1,373 |
IRLCs | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 10,830 | 8,582 |
Other Liabilities | 1,572 | 33 |
Forward contracts | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 4,144 | 757 |
Other Liabilities | 20,853 | 1,336 |
Whole loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Assets | 806 | 384 |
Other Liabilities | $ 165 | $ 4 |
Inventory And Land Held For S_3
Inventory And Land Held For Sale (Major Components Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Homes under construction | $ 5,440,186 | $ 4,225,309 |
Land under development | 5,134,432 | 4,091,015 |
Raw land | 679,341 | 731,245 |
Consolidated Inventory Not Owned | 72,058 | 0 |
House and land inventory | $ 11,326,017 | $ 9,047,569 |
Inventory And Land Held For S_4
Inventory And Land Held For Sale (Information Related To Interest Capitalized Into Homebuilding Inventory) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest in inventory, beginning of period | $ 160,756 | $ 193,409 | $ 210,383 |
Interest capitalized | 130,051 | 129,380 | 159,575 |
Interest expensed | (153,545) | (162,033) | (176,549) |
Interest in inventory, end of period | $ 137,262 | $ 160,756 | $ 193,409 |
Inventory And Land Held For S_5
Inventory And Land Held For Sale Inventory and Land Held for Sale (Land-related Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |||
Net realizable value adjustments (NRV) - land held for sale | $ 107 | $ 19 | $ 871 |
Land impairments | 2,990 | 0 | 7,044 |
Write-off of deposits and pre-acquisition costs | 63,559 | 12,283 | 12,390 |
Total land-related charges | $ 66,656 | $ 12,302 | $ 20,305 |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information | |||
Revenues | $ 16,228,995 | $ 13,926,882 | $ 11,036,082 |
Number of reportable segments | segment | 6 | ||
Real Estate | Homebuilding | |||
Segment Reporting Information | |||
Revenues | $ 15,917,279 | 13,537,350 | 10,673,913 |
Home sale revenues | Homebuilding | |||
Segment Reporting Information | |||
Revenues | 15,774,135 | 13,376,812 | 10,579,896 |
Detached single-family homes | Homebuilding | |||
Segment Reporting Information | |||
Revenues | 13,500,000 | 11,200,000 | 8,900,000 |
Attached homes | Homebuilding | |||
Segment Reporting Information | |||
Revenues | 2,300,000 | 2,200,000 | 1,600,000 |
Land sale and other revenues | Homebuilding | |||
Segment Reporting Information | |||
Revenues | $ 143,144 | $ 160,538 | $ 94,017 |
Segment Information (Operating
Segment Information (Operating Data By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||||
Revenues | $ 16,228,995 | $ 13,926,882 | $ 11,036,082 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 3,439,558 | 2,509,845 | 1,728,694 | |
Goodwill impairment | $ 20,200 | 0 | 0 | 20,190 |
Gain Property Sale, Unconsolidated Entity | 49,100 | |||
Adjustment to self insurance reserves | (64,965) | (81,131) | (93,431) | |
Loss on debt retirement | 0 | (61,469) | 0 | |
Florida [Member] | ||||
Income (loss) before income taxes: | ||||
Goodwill impairment | (20,200) | |||
Real Estate | Northeast [Member] | ||||
Revenues: | ||||
Revenues | 1,077,514 | 1,127,476 | 846,337 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 244,233 | 215,193 | 136,985 | |
Real Estate | Southeast [Member] | ||||
Revenues: | ||||
Revenues | 2,795,640 | 2,234,297 | 1,691,822 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 692,279 | 417,880 | 258,794 | |
Real Estate | Florida [Member] | ||||
Revenues: | ||||
Revenues | 3,981,766 | 3,154,583 | 2,350,055 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 939,034 | 585,680 | 362,276 | |
Real Estate | Midwest [Member] | ||||
Revenues: | ||||
Revenues | 2,318,255 | 1,979,997 | 1,514,132 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 363,028 | 287,956 | 213,516 | |
Real Estate | Texas [Member] | ||||
Revenues: | ||||
Revenues | 2,239,822 | 1,805,208 | 1,451,104 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 465,461 | 322,979 | 242,383 | |
Real Estate | West [Member] | ||||
Revenues: | ||||
Revenues | 3,504,282 | 3,235,789 | 2,820,463 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 687,403 | 592,845 | 424,304 | |
Real Estate | Other Homebuilding [Member] | ||||
Income (loss) before income taxes: | ||||
Income before income taxes | (84,110) | (134,405) | (96,201) | |
Real Estate | Homebuilding | ||||
Revenues: | ||||
Revenues | 15,917,279 | 13,537,350 | 10,673,913 | |
Income (loss) before income taxes: | ||||
Income before income taxes | 3,307,328 | 2,288,128 | 1,542,057 | |
Home sale revenues | Homebuilding | ||||
Revenues: | ||||
Revenues | 15,774,135 | 13,376,812 | 10,579,896 | |
Detached single-family homes | Homebuilding | ||||
Revenues: | ||||
Revenues | 13,500,000 | 11,200,000 | 8,900,000 | |
Attached homes | Homebuilding | ||||
Revenues: | ||||
Revenues | 2,300,000 | 2,200,000 | 1,600,000 | |
Land sale and other revenues | Homebuilding | ||||
Revenues: | ||||
Revenues | 143,144 | 160,538 | 94,017 | |
Financial Services | Financial Services | ||||
Revenues: | ||||
Revenues | 311,716 | 389,532 | 362,169 | |
Income (loss) before income taxes: | ||||
Income before income taxes | $ 132,230 | $ 221,717 | $ 186,637 |
Segment Information (Land-Relat
Segment Information (Land-Related Charges By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Total land-related charges | $ 66,656 | $ 12,302 | $ 20,305 |
Northeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 4,597 | 1,433 | 5,301 |
Southeast [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 18,381 | 5,365 | 3,815 |
Florida [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 13,515 | 1,088 | 1,395 |
Texas [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 6,745 | 1,357 | 4,588 |
Midwest [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 6,517 | 2,150 | 2,390 |
West [Member] | |||
Segment Reporting Information | |||
Total land-related charges | 16,406 | 909 | 1,936 |
Other Homebuilding [Member] | |||
Segment Reporting Information | |||
Total land-related charges | $ 495 | $ 0 | $ 880 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation and amortization: | |||
Depreciation and amortization | $ 70,918 | $ 69,953 | $ 66,081 |
Northeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 2,956 | 2,631 | 2,454 |
Southeast [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 5,151 | 4,765 | 4,308 |
Florida [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 11,720 | 8,823 | 7,478 |
Texas [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 5,591 | 4,989 | 3,631 |
Midwest [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 7,035 | 6,332 | 5,329 |
West [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 11,840 | 11,898 | 11,450 |
Other Homebuilding [Member] | |||
Depreciation and amortization: | |||
Depreciation and amortization | 19,929 | 24,811 | 26,459 |
Homebuilding | |||
Depreciation and amortization: | |||
Depreciation and amortization | 64,222 | 64,249 | 61,109 |
Financial Services | |||
Depreciation and amortization: | |||
Depreciation and amortization | $ 6,696 | $ 5,704 | $ 4,972 |
Segment Information (Total Asse
Segment Information (Total Assets And Inventory By Reportable Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information | ||
Homes under construction | $ 5,440,186 | $ 4,225,309 |
Land under development | 5,134,432 | 4,091,015 |
Raw land | 679,341 | 731,245 |
Consolidated Inventory Not Owned | 72,058 | 0 |
House and land inventory | 11,326,017 | 9,047,569 |
Total assets | 14,796,515 | 13,352,631 |
Northeast [Member] | ||
Segment Reporting Information | ||
Homes under construction | 321,687 | 285,975 |
Land under development | 241,897 | 246,128 |
Raw land | 45,455 | 17,554 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 609,039 | 549,657 |
Total assets | 700,413 | 644,019 |
Southeast [Member] | ||
Segment Reporting Information | ||
Homes under construction | 793,539 | 604,310 |
Land under development | 544,867 | 537,072 |
Raw land | 102,336 | 67,815 |
Consolidated Inventory Not Owned | 20,169 | 0 |
House and land inventory | 1,460,911 | 1,209,197 |
Total assets | 1,668,053 | 1,362,852 |
Florida [Member] | ||
Segment Reporting Information | ||
Homes under construction | 1,417,657 | 943,110 |
Land under development | 1,081,836 | 866,266 |
Raw land | 125,253 | 289,388 |
Consolidated Inventory Not Owned | 51,889 | 0 |
House and land inventory | 2,676,635 | 2,098,764 |
Total assets | 3,195,091 | 2,545,457 |
Goodwill | 48,700 | |
Texas [Member] | ||
Segment Reporting Information | ||
Homes under construction | 690,622 | 581,417 |
Land under development | 726,342 | 512,925 |
Raw land | 133,300 | 95,833 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 1,550,264 | 1,190,175 |
Total assets | 1,735,683 | 1,315,943 |
Midwest [Member] | ||
Segment Reporting Information | ||
Homes under construction | 523,194 | 527,001 |
Land under development | 689,541 | 460,279 |
Raw land | 22,467 | 15,869 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 1,235,202 | 1,003,149 |
Total assets | 1,382,227 | 1,132,081 |
West [Member] | ||
Segment Reporting Information | ||
Homes under construction | 1,662,251 | 1,235,457 |
Land under development | 1,528,863 | 1,191,834 |
Raw land | 238,758 | 227,850 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 3,429,872 | 2,655,141 |
Total assets | 3,771,808 | 2,955,283 |
Other Homebuilding [Member] | ||
Segment Reporting Information | ||
Homes under construction | 31,236 | 48,039 |
Land under development | 321,086 | 276,511 |
Raw land | 11,772 | 16,936 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 364,094 | 341,486 |
Total assets | 1,470,919 | 2,314,839 |
Homebuilding | ||
Segment Reporting Information | ||
Homes under construction | 5,440,186 | 4,225,309 |
Land under development | 5,134,432 | 4,091,015 |
Raw land | 679,341 | 731,245 |
Consolidated Inventory Not Owned | 72,058 | 0 |
House and land inventory | 11,326,017 | 9,047,569 |
Total assets | 13,924,194 | 12,270,474 |
Financial Services | ||
Segment Reporting Information | ||
Homes under construction | 0 | 0 |
Land under development | 0 | 0 |
Raw land | 0 | 0 |
Consolidated Inventory Not Owned | 0 | 0 |
House and land inventory | 0 | 0 |
Total assets | $ 872,321 | $ 1,082,157 |
Investments In Unconsolidated_2
Investments In Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 146,759 | $ 98,155 | |
Equity in earnings of unconsolidated entities | (50,680) | (17,200) | $ (1,880) |
Capital and earnings distributions received from unconsolidated entities | 21,700 | 53,900 | 27,900 |
Payments to Acquire Interest in Subsidiaries and Affiliates | (64,700) | $ (101,600) | $ (800) |
Outstanding debt | 77,300 | ||
Corporate Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding debt | $ 42,000 |
Debt (Summary Of Company's Seni
Debt (Summary Of Company's Senior Notes) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Senior note carrying value | $ 1,990,299 | $ 1,988,858 |
Debt Issuance Costs, Net | (9,701) | (11,142) |
Other Notes Payable | 55,228 | 40,185 |
Notes payable | 2,045,527 | 2,029,043 |
Notes Payable, Fair Value Disclosure | 2,079,218 | 2,496,875 |
5.500% unsecured senior notes due March 2026 [Member] | Senior Notes [Member] | ||
Debt Instrument | ||
Senior note carrying value | 500,000 | 500,000 |
Senior Unsecured Term Loan Maturing January 3, 2027 [Member] [Domain] | Senior Notes [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 500,000 | $ 500,000 |
Debt instrument, interest rate, stated percentage | 5% | 5% |
Senior Notes [Member] | ||
Debt Instrument | ||
Notes payable | $ 2,000,000 | |
Senior Notes [Member] | 5.500% unsecured senior notes due March 2026 [Member] | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% |
Unsecured Senior Notes 7.875% Due June 2032 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 300,000 | $ 300,000 |
Debt instrument, interest rate, stated percentage | 7.875% | 7.875% |
Unsecured Senior Notes 6.375% Due May 2033 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 400,000 | $ 400,000 |
Debt instrument, interest rate, stated percentage | 6.375% | 6.375% |
Unsecured Senior Notes 6.00% Due February 2035 [Member] | ||
Debt Instrument | ||
Senior note carrying value | $ 300,000 | $ 300,000 |
Debt instrument, interest rate, stated percentage | 6% | 6% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 14, 2022 | |
Debt Instrument | ||||
Other Notes Payable | $ 55,228,000 | $ 40,185,000 | ||
Debt Instrument, Term | 4 years | |||
Notes Payable Issued to Acquire Land | $ 39,100,000 | 50,900,000 | $ 52,000,000 | |
Repayments of Long-term Debt | 4,856,000 | 836,893,000 | 65,267,000 | |
Loss on debt retirement | 0 | 61,469,000 | 0 | |
Borrowings under revolving credit facility | 2,869,000,000 | 0 | 700,000,000 | |
Repayments under revolving credit facility | (2,869,000,000) | 0 | $ (700,000,000) | |
Letters of credit outstanding, amount | 303,400,000 | 298,800,000 | ||
Unused credit lines | $ 946,600,000 | 701,200,000 | ||
Maximum | ||||
Debt Instrument | ||||
Debt instrument, interest rate, stated percentage | 6% | |||
Unsecured Letter Of Credit Facility [Member] | ||||
Debt Instrument | ||||
Letters of credit outstanding, amount | $ 303,400,000 | 298,800,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument | ||||
Financial Services debt | 0 | 0 | ||
Revolving Credit Facility Accordion Feature [Member] | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 1,800,000,000 | |||
Financial Services | ||||
Debt Instrument | ||||
Maximum borrowing capacity | 800,000,000 | |||
Unused credit lines | $ 213,300,000 | $ 23,900,000 | ||
Weighted-average interest rate | 5.39% | 2.37% | ||
Weighted-average interest rate | 5.39% | 2.37% | ||
Financial Services | Repurchase Agreement [Member] | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 800,000,000 | $ 1,300,000,000 | ||
Financial Services debt | 586,700,000 | $ 626,100,000 | ||
Financial Services | Repurchase Agreement [Member] | Minimum | ||||
Debt Instrument | ||||
Maximum borrowing capacity | 360,000,000 | |||
Financial Services | Repurchase Agreement [Member] | Maximum | ||||
Debt Instrument | ||||
Maximum borrowing capacity | 500,000,000 | |||
Maturing in 2026 | ||||
Debt Instrument | ||||
Repurchased face amount | 200,000,000 | |||
Maturing in 2027 | ||||
Debt Instrument | ||||
Repurchased face amount | $ 100,000,000 | |||
Senior Notes [Member] | Senior Unsecured Term Loan Maturing January 3, 2027 [Member] [Domain] | ||||
Debt Instrument | ||||
Debt instrument, interest rate, stated percentage | 5% | 5% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | |
Class of Stock [Line Items] | ||||
Dividends declared | $ (143,134,000) | $ (148,133,000) | $ (135,138,000) | |
Stock repurchases | $ 1,074,673,000 | $ 897,303,000 | $ 170,676,000 | |
Stock Repurchase Program, Authorized Amount | $ 1,000,000,000 | |||
Share repurchase plan [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchased under authorized repurchase programs | 24.2 | 17.7 | 4.5 | |
Stock repurchases | $ 1,100,000,000 | $ 897,300,000 | $ 170,700,000 | |
Remaining value of stock repurchase programs authorization | 382,900,000 | |||
Shares withheld to pay taxes [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchases | $ 14,300,000 | $ 10,800,000 | $ 14,900,000 |
Stock Compensation Plans Narrat
Stock Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum period stock options, appreciation rights, restricted stock, and restricted stock units can be granted | 10 years | ||
Number of shares available for grant | 11,300,000 | ||
Long-term incentive plan liability | $ 21.6 | $ 22.6 | |
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units outstanding vested but not yet paid | 200,000 | ||
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | $ 25.4 | ||
Restricted stock shares vested during period, total fair value | $ 40.5 | $ 30.5 | $ 43.3 |
Weighted average period in which stock based compensation costs are expensed | 2 years | ||
Field long-term compensation plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | ||
Senior management long-term compensation plan [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation plan price floor | $ 5 |
Stock Compensation Plans (Expen
Stock Compensation Plans (Expense by plan type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 42,989 | $ 36,745 | $ 32,843 |
Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 33,323 | 25,192 | 22,065 |
Long-term incentive plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 9,666 | $ 11,553 | $ 10,778 |
Stock Compensation Plans (Restr
Stock Compensation Plans (Restricted Stock, RSUs and Performance Shares Activity Rollforward) (Details) - Restricted Stock, Performance Shares, and Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock, RSUs and Performance Shares Activity [Roll Forward] | |||
Outstanding, beginning of year | 1,995 | 2,001 | 2,528 |
Granted | 550 | 720 | 594 |
Vested | (813) | (642) | (952) |
Forfeited | (104) | (84) | (169) |
Outstanding, end of year | 1,628 | 1,995 | 2,001 |
Outstanding, beginning of year, weighted-average per share grant date fair value | $ 39 | $ 33 | $ 26 |
Granted, weighted-average per share grant date fair value | 54 | 47 | 44 |
Vested, weighted-average per share grant date fair value | 28 | 30 | 21 |
Forfeited, weighted-average per share grant date fair value | 48 | 38 | 33 |
Outstanding, end of year, weighted-average per share grant date fair value | $ 48 | $ 39 | $ 33 |
Income Taxes Components of curr
Income Taxes Components of current and deferred income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision (benefit) | |||
Federal | $ 615,434 | $ 430,686 | $ 159,677 |
State and other | 100,223 | 73,671 | 24,580 |
Current Income Tax Expense (Benefit) | 715,657 | 504,357 | 184,257 |
Deferred provision (benefit) | |||
Federal | 55,653 | 57,743 | 116,484 |
State and other | 50,931 | 1,425 | 21,114 |
Deferred Income Tax Expense (Benefit) | 106,584 | 59,168 | 137,598 |
Income tax expense (benefit) | $ 822,241 | $ 563,525 | $ 321,855 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of statutory federal income tax rate to effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate | 21% | 21% | 21% |
Effect of state and local income taxes, net of federal tax | 3.40% | 3.30% | 3.30% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (0.90%) | (1.20%) | (4.80%) |
Deferred tax asset valuation allowance | 0.40% | (0.80%) | (0.80%) |
Other | 0% | 0.20% | (0.10%) |
Effective rate | 23.90% | 22.50% | 18.60% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Home Closed in Prior Open Tax Year Benefit | $ 56,800 | |||
Gross unrecognized tax benefits | 23,612 | $ 22,536 | $ 30,855 | $ 40,300 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 18,700 | 17,800 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 4,100 | $ 2,900 | ||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
IncomeTaxNetOperatingLossCarryforwardPeriod | 20 years | |||
2019 - 2023 [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 32,800 | |||
2024 - Thereafter [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 72,800 |
Income Taxes Net deferred tax a
Income Taxes Net deferred tax asset (liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Other | $ 138,289 | $ 132,386 |
Inventory valuation reserves | 58,339 | 62,806 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 66,500 | 59,667 |
NOL carryforwards: | ||
State | 105,609 | 144,746 |
Deferred Tax Assets, Gross | 401,357 | 413,444 |
Deferred Tax Liabilities [Abstract] | ||
Deferred income | (439,863) | (367,285) |
Deferred Tax Liabilities, Property, Plant and Equipment | (31,921) | (21,324) |
Intangibles and other | (31,802) | (26,151) |
Deferred Tax Liabilities, Gross | (503,586) | (414,760) |
Valuation allowance | (30,869) | (25,165) |
Net deferred tax asset (liability) | (133,098) | (26,481) |
Deferred Tax Assets, Capitalized inventory expenses | $ 32,620 | $ 13,839 |
Income Taxes Reconciliation o_2
Income Taxes Reconciliation of the change in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of the change in unrecognized tax benefits [Roll Forward] | |||
Unrecognized Tax Benefits, beginning of period | $ 22,536 | $ 30,855 | $ 40,300 |
Increases related to tax positions taken during a prior period | 0 | 1,428 | 0 |
Decreases related to tax positions taken during a prior period | (303) | (8,896) | (12,981) |
Increases related to tax positions taken during the current period | 1,450 | 267 | 11,001 |
Decreases related to settlements with taxing authorities | 0 | 0 | (7,465) |
Decreases related to lapse of the applicable statute of limitations | (71) | (1,118) | 0 |
Unrecognized Tax Benefits, end of period | $ 23,612 | $ 22,536 | $ 30,855 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosed at fair value: | ||
Other Notes Payable | $ 55,228 | $ 40,185 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosed at fair value: | ||
Cash and equivalents (including restricted cash), fair value | 1,094,553 | 1,833,565 |
Fair Value, Inputs, Level 2 [Member] | ||
Disclosed at fair value: | ||
Financial Services debt, fair value | 586,711 | 626,123 |
Debt Instrument, Fair Value Disclosure | 2,023,990 | 2,456,690 |
Other Notes Payable | 55,228 | 40,185 |
Land sale and other revenues | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 10,873 | 0 |
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure | 10,873 | 0 |
Residential Mortgage [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 677,207 | 947,139 |
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure | 677,207 | 947,139 |
IRLCs | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Assets, Fair Value Disclosure | 9,258 | 8,549 |
Measured at fair value on a non-recurring basis: | ||
Assets, Fair Value Disclosure | 9,258 | 8,549 |
Forward contracts | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 16,709 | (579) |
Whole loan commitments | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Measured at fair value on a recurring basis: | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ (641) | $ 380 |
Fair Value Disclosures Fair V_2
Fair Value Disclosures Fair Value Disclosures (Narrative) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 2,045,527 | $ 2,029,043 |
Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 2,000,000 |
Other Assets and Accrued and _3
Other Assets and Accrued and Other Liabilities (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||
Insurance receivable | $ 43,746 | $ 57,490 |
Other receivables | 193,047 | 161,102 |
Accounts and notes receivable | 236,793 | 218,592 |
Prepaid expenses | 223,524 | 159,683 |
Deposits and pre-acquisition Costs | 478,755 | 404,922 |
Property and equipment, net | $ 200,262 | $ 149,151 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | ||
Right-of-use assets | $ 73,485 | $ 74,315 |
Income taxes receivable | 24,281 | 71,400 |
Other | 54,472 | 32,903 |
Other Assets | $ 1,291,572 | $ 1,110,966 |
Other Assets and Accrued and _4
Other Assets and Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets and Accrued and Other Liabilities [Abstract] | ||||
Self-insurance liabilities | $ 635,857 | $ 627,067 | $ 641,779 | $ 709,798 |
Compensation-related | 239,459 | 261,096 | ||
Operating Lease, Liability | 90,083 | 92,663 | ||
Warranty | 108,348 | 107,117 | 82,744 | 91,389 |
Income tax liabilities | $ 98,709 | $ 72,134 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |||
Accrued interest | $ 41,135 | $ 42,591 | ||
Dividends Payable | 36,696 | 37,796 | ||
Loan origination liabilities | 12,378 | 12,381 | $ 11,969 | $ 25,159 |
Liabilities related to consolidated inventory not owned | 72,058 | 0 | ||
Other | 350,479 | 323,633 | ||
Accrued and other liabilities | $ 1,685,202 | $ 1,576,478 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||
Reserves provided | $ 472 | $ 618 | $ 26,410 | |
Letters of credit outstanding, amount | 303,400 | 298,800 | ||
Surety Bonds Outstanding | 2,200,000 | 1,800,000 | ||
Self-insurance liabilities | $ 635,857 | $ 627,067 | 641,779 | $ 709,798 |
Incurred but not reported percentage of liability reserves | 74% | 70% | ||
Adjustment to self insurance reserves | $ (64,965) | $ (81,131) | (93,431) | |
Right-of-use assets | 73,485 | 74,315 | ||
Operating Lease, Liability | 90,083 | 92,663 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 14,500 | 16,200 | ||
Operating Lease, Payments | 21,900 | 20,800 | 19,800 | |
Variable Lease, Cost | 9,900 | 7,700 | 6,200 | |
Short-term Lease, Cost | 21,200 | 14,200 | 10,200 | |
Lease, Cost | 54,800 | 43,300 | 38,200 | |
Unsecured Letter Of Credit Facility [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding, amount | $ 303,400 | $ 298,800 | ||
Other Homebuilding [Member] | ||||
Loss Contingencies [Line Items] | ||||
Write-off of insurance receivables | $ 17,800 |
Commitments And Contingencies_3
Commitments And Contingencies (Changes To Anticipated Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in loan origination liability [Roll Forward] | |||
Liabilities, beginning of period | $ 12,381 | $ 11,969 | $ 25,159 |
Reserves provided (released), net | (472) | (618) | (26,410) |
Payments | (475) | (206) | (39,600) |
Liabilities, end of period | $ 12,378 | $ 12,381 | $ 11,969 |
Commitments And Contingencies_4
Commitments And Contingencies (Changes To Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to warranty liabilities [Roll Forward] | |||
Warranty liabilities, beginning of period | $ 107,117 | $ 82,744 | $ 91,389 |
Warranty reserves provided | 85,011 | 93,919 | 64,492 |
Payments | (90,508) | (73,760) | (70,869) |
Other adjustments | 6,728 | 4,214 | (2,268) |
Warranty liabilities, end of period | $ 108,348 | $ 107,117 | $ 82,744 |
Commitments And Contingencies_5
Commitments And Contingencies (Changes in Self-insurance Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Insurance receivable | $ 43,746 | $ 57,490 | |
Insurance Related Expenses [Roll Forward] | |||
Balance, beginning of period | 627,067 | 641,779 | $ 709,798 |
Reserves provided | 111,067 | 90,863 | 83,912 |
Adjustment to self insurance reserves | (64,965) | (81,131) | (93,431) |
Payments | (37,312) | (24,444) | (58,500) |
Balance, end of period | $ 635,857 | $ 627,067 | $ 641,779 |
Commitments and Contingencies C
Commitments and Contingencies Commitments And Contingencies (Future minimum operating lease payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Years Ending December 31, | ||
2022 | $ 22,762 | |
2023 | 25,771 | |
2024 | 14,691 | |
2025 | 10,958 | |
2026 | 8,448 | |
Thereafter | 15,386 | |
Total lease payments | 98,016 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (7,933) | |
Present value of lease liabilities | 90,083 | $ 92,663 |
Lessee, Operating Lease, Lease Not Yet Commenced, Liability | $ 1,800 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% |