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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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83-2026677
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, $0.00001 par value
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TMHC
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New York Stock Exchange
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Large accelerated filer
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ý
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Class
|
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Outstanding
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Common Stock, $0.00001 par value
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134,448,344
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|
|
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Page
Number
|
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East
|
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Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida and Tampa
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Central
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Austin, Dallas, Denver and Houston
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West
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Bay Area, Phoenix, Sacramento and Southern California
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Financial Services
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Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services
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|
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•
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We generated $4.8 billion in total revenue and $4.6 billion in home closings revenue for the year ended December 31, 2019, increases of 12.6% and 12.4%, respectively, compared to the prior year's total revenue and home closings revenue.
|
•
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Net income before allocation to non-controlling interest and diluted earnings per share for the year ended December 31, 2019 was $254.9 million and $2.35, respectively, compared to $210.5 million and 1.83, respectively, for the year ended December 31, 2018.
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•
|
Adjusting for the effects of significant and unusual items(1), net income before allocation to non-controlling interest and diluted earnings per share for the year ended December 31, 2019 was $323.0 million and $2.98, respectively.
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•
|
On June 5, 2019, we issued $500.0 million aggregate principal amount of 5.875% Senior Notes due 2027. Using the net proceeds and cash on hand from the issuance of the 2027 Senior Notes, we redeemed our 5.25% Senior Notes due 2021 on June 20, 2019.
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•
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On August 1, 2019, we issued $450.0 million aggregate principal amount of 5.75% Senior Notes due 2028. Using the net proceeds from the 2028 Senior Notes, we redeemed our 6.625% Senior Notes due 2022 on August 19, 2019.
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•
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On October 1, 2019, utilizing funds borrowed from our Revolving Credit Facility, we repaid our 364-Day Credit Agreement. The total amount paid, including interest, was $200.5 million.
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•
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During 2019, our operations were located in nine states with 351 average active communities.
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•
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We closed 13.7% more homes during 2019 compared to 2018.
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•
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Average sales price of homes closed was $464,000 for the year ended December 31, 2019.
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•
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We ended 2019 with $2.3 billion in sales order backlog.
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•
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At December 31, 2019, we owned and controlled approximately 54,000 lots.
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•
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For the last five consecutive years, we were awarded America’s Most Trusted Home Builder® by Lifestory Research.
|
•
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We were recognized and awarded as one of the Best Places to Work by Glassdoor for the second year in a row.
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•
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We were ranked #3 within the homebuilding industry in Fortune's World's most Admired Companies'.
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•
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For the second year in a row, we were also honored by Bloomberg's Gender-Equality Index award.
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•
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As of January 2020, we were included in the S&P MidCap 400.
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•
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opportunistic land acquisition of prime assets in core locations;
|
•
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building distinctive communities driven by consumer preferences;
|
•
|
maintaining a cost-efficient culture; and
|
•
|
appropriately balancing price with pace in the sale of our homes.
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•
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Optimizing our existing land supply through enhanced product offerings;
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•
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Combining land acquisition and development expertise with homebuilding operations;
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•
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Focusing product offerings on specific customer groups;
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•
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Building aspirational homes for our customers and focusing on superior customer service;
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•
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Maintaining an efficient capital structure;
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•
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Selectively pursuing acquisitions; and
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•
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Employing and retaining a highly experienced management team with a strong operating track record.
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|
As of December 31, 2019
|
|||||||||||||||||
|
Owned Lots
|
|
Controlled Lots
|
|
Owned and Controlled Lots
|
|||||||||||||
|
Raw
|
|
Partially
Developed
|
|
Finished
|
|
|
Total
|
|
Total
|
|
Total
|
||||||
East
|
10,155
|
|
|
7,764
|
|
|
7,349
|
|
|
|
25,268
|
|
|
4,213
|
|
|
29,481
|
|
Central
|
2,621
|
|
|
1,511
|
|
|
4,497
|
|
|
|
8,629
|
|
|
2,945
|
|
|
11,574
|
|
West
|
1,028
|
|
|
4,023
|
|
|
3,658
|
|
|
|
8,709
|
|
|
4,115
|
|
|
12,824
|
|
Total
|
13,804
|
|
|
13,298
|
|
|
15,504
|
|
|
|
42,606
|
|
|
11,273
|
|
|
53,879
|
|
|
As of December 31, 2018
|
||||||||||||||||
|
Owned Lots
|
|
Controlled Lots
|
|
Owned and Controlled Lots
|
||||||||||||
|
Raw
|
|
Partially
Developed
|
|
Finished
|
|
Total
|
|
Total
|
|
Total
|
||||||
East
|
5,778
|
|
|
7,430
|
|
|
13,161
|
|
|
26,369
|
|
|
6,187
|
|
|
32,556
|
|
Central
|
3,004
|
|
|
1,398
|
|
|
4,865
|
|
|
9,267
|
|
|
3,662
|
|
|
12,929
|
|
West
|
871
|
|
|
3,208
|
|
|
3,949
|
|
|
8,028
|
|
|
3,327
|
|
|
11,355
|
|
Total
|
9,653
|
|
|
12,036
|
|
|
21,975
|
|
|
43,664
|
|
|
13,176
|
|
|
56,840
|
|
(Dollars in thousands)
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||
Development Status
|
Owned Lots
|
|
Book Value of Land
and Development
|
|
Owned Lots
|
|
Book Value of Land
and Development
|
||||||
Raw
|
13,804
|
|
|
$
|
477,997
|
|
|
9,653
|
|
|
$
|
461,387
|
|
Partially developed
|
13,298
|
|
|
914,689
|
|
|
12,036
|
|
|
756,376
|
|
||
Finished
|
15,504
|
|
|
1,559,291
|
|
|
21,975
|
|
|
1,677,527
|
|
||
Total
|
42,606
|
|
|
$
|
2,951,977
|
|
|
43,664
|
|
|
$
|
2,895,290
|
|
Allocation of Lots in Land Portfolio, by Year Acquired
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||
Acquired in 2019
|
20
|
%
|
|
—
|
%
|
Acquired in 2018
|
57
|
%
|
|
64
|
%
|
Acquired in 2017
|
8
|
%
|
|
11
|
%
|
Acquired in 2016
|
4
|
%
|
|
6
|
%
|
Acquired in 2015 and earlier
|
11
|
%
|
|
19
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
|
Homes in
Backlog
|
|
Models
|
|
Inventory
to be Sold
|
|
Total
|
|
Homes in
Backlog |
|
Models
|
|
Inventory
to be Sold |
|
Total
|
||||||||
East
|
1,816
|
|
|
223
|
|
|
1,076
|
|
|
3,115
|
|
|
1,638
|
|
|
186
|
|
|
1,187
|
|
|
3,011
|
|
Central
|
1,655
|
|
|
142
|
|
|
391
|
|
|
2,188
|
|
|
1,420
|
|
|
158
|
|
|
639
|
|
|
2,217
|
|
West
|
1,240
|
|
|
139
|
|
|
307
|
|
|
1,686
|
|
|
1,100
|
|
|
142
|
|
|
489
|
|
|
1,731
|
|
Total
|
4,711
|
|
|
504
|
|
|
1,774
|
|
|
6,989
|
|
|
4,158
|
|
|
486
|
|
|
2,315
|
|
|
6,959
|
|
•
|
the timing of the introduction and start of construction of new projects;
|
•
|
the timing of sales;
|
•
|
the timing of closings of homes, lots and parcels;
|
•
|
the timing of receipt of regulatory approvals for development and construction;
|
•
|
the condition of the real estate market and general economic conditions in the areas in which we operate;
|
•
|
mix of homes closed;
|
•
|
construction timetables;
|
•
|
the cost and availability of materials and labor; and
|
•
|
weather conditions in the markets in which we build.
|
|
Three Months Ended,
|
|
|
Three Months Ended,
|
||||||||||||||||||||
|
2019
|
|
|
2018
|
||||||||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net homes sold
|
25
|
%
|
|
27
|
%
|
|
24
|
%
|
|
24
|
%
|
|
|
29
|
%
|
|
28
|
%
|
|
22
|
%
|
|
21
|
%
|
Home closings revenue
|
19
|
%
|
|
27
|
%
|
|
23
|
%
|
|
31
|
%
|
|
|
18
|
%
|
|
23
|
%
|
|
25
|
%
|
|
34
|
%
|
Income before income taxes(1)
|
21
|
%
|
|
34
|
%
|
|
28
|
%
|
|
17
|
%
|
|
|
22
|
%
|
|
29
|
%
|
|
37
|
%
|
|
12
|
%
|
Net income(1)
|
20
|
%
|
|
32
|
%
|
|
26
|
%
|
|
22
|
%
|
|
|
23
|
%
|
|
28
|
%
|
|
45
|
%
|
|
4
|
%
|
•
|
to utilize mortgage finance as a sales tool in the home sale process to ensure a consistent customer experience and assist in maintaining home production efficiency; and
|
•
|
to control and analyze our sales order backlog quality and to better manage projected home closing and delivery dates for our customers.
|
•
|
short- and long-term interest rates;
|
•
|
the availability and cost of financing for homebuyers;
|
•
|
federal and state income tax laws, including limitations on, or the elimination of, the deduction of mortgage interest or property tax payments;
|
•
|
employment levels, job and personal income growth and household debt-to-income levels;
|
•
|
consumer confidence generally and the confidence of potential homebuyers in particular;
|
•
|
the ability of existing homeowners to sell their existing homes at prices that are acceptable to them;
|
•
|
the U.S. and global financial system and credit markets, including stock market and credit market volatility;
|
•
|
private and federal mortgage financing programs and federal and state regulation of lending practices;
|
•
|
housing demand from population growth, household formations and demographic changes (including immigration levels and trends or other costs of home ownership in urban and suburban migration);
|
•
|
demand from foreign buyers for our homes, which may fluctuate according to economic circumstances in foreign countries;
|
•
|
the supply of available new or existing homes and other housing alternatives, such as apartments and other residential rental property;
|
•
|
real estate taxes;
|
•
|
energy prices; and
|
•
|
the supply of developable land in our markets and in the United States generally.
|
•
|
work stoppages resulting from labor disputes;
|
•
|
shortages of and competition for qualified trades people, such as carpenters, roofers, electricians and plumbers;
|
•
|
changes in laws relating to union organizing activity;
|
•
|
changes in immigration laws and policies and trends with respect to labor force migration; and
|
•
|
increases in subcontractor and professional services costs.
|
•
|
timing of home deliveries and land sales;
|
•
|
the changing composition and mix of our asset portfolio; and
|
•
|
weather-related issues.
|
•
|
severe weather;
|
•
|
natural disasters;
|
•
|
climate change;
|
•
|
shortages in the availability or increased costs in obtaining land, equipment, labor or building supplies;
|
•
|
unemployment;
|
•
|
changes to the population growth rates and therefore the demand for homes in these regions; and
|
•
|
changes in the regulatory and fiscal environment.
|
•
|
difficulties in assimilating the operations and personnel of acquired companies or businesses;
|
•
|
diversion of our management’s attention from ongoing business concerns;
|
•
|
our potential inability to maximize our financial and strategic position through the successful incorporation or disposition of operations;
|
•
|
maintenance of uniform standards, controls, procedures and policies; and
|
•
|
impairment of existing relationships with employees, contractors, suppliers and customers as a result of the integration of new management personnel and cost-saving initiatives.
|
•
|
making it more difficult for us to satisfy our obligations with respect to our debt or to our trade or other creditors;
|
•
|
increasing our vulnerability to adverse economic or industry conditions;
|
•
|
limiting our ability to obtain additional financing to fund capital expenditures and land acquisitions, particularly when the availability of financing in the capital markets is limited;
|
•
|
requiring us to pay higher interest rates upon refinancing or on our variable rate indebtedness if interest rates rise;
|
•
|
requiring a substantial portion of our cash flows from operations and the proceeds of any capital markets offerings or loan borrowings for the payment of interest on our debt thus reducing our ability to use our cash flows to fund working capital, capital expenditures, land acquisitions and general corporate requirements;
|
•
|
limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and
|
•
|
placing us at a competitive disadvantage to less leveraged competitors.
|
•
|
incur or guarantee additional indebtedness;
|
•
|
make certain investments;
|
•
|
repurchase equity or subordinated indebtedness;
|
•
|
pay dividends or make distributions on our capital stock;
|
•
|
sell assets, including capital stock of restricted subsidiaries;
|
•
|
agree to restrictions on distributions, transfers or dividends affecting our restricted subsidiaries;
|
•
|
consolidate, merge, sell or otherwise dispose of all or substantially all of our assets;
|
•
|
enter into transactions with our affiliates;
|
•
|
incur liens; and
|
•
|
designate any of our subsidiaries as unrestricted subsidiaries.
|
•
|
the sole ability of the board of directors to fill a vacancy created by the expansion of the board of directors;
|
•
|
advance notice requirements for stockholder proposals and director nominations;
|
•
|
limitations on the ability of stockholders to call special meetings and to take action by written consent;
|
•
|
in certain cases, the approval of holders of at least three-fourths of the shares entitled to vote generally on the making, alteration, amendment or repeal of our certificate of incorporation or bylaws will be required to adopt, amend or repeal our bylaws, or amend or repeal certain provisions of our certificate of incorporation;
|
•
|
the required approval of holders of at least three-fourths of the shares entitled to vote at an election of the directors to remove directors, which removal may only be for cause; and
|
•
|
the ability of our board of directors to designate the terms of and issue new series of preferred stock without stockholder approval, which could be used, among other things, to institute a rights plan that would have the effect of significantly diluting the stock ownership of a potential hostile acquirer, likely preventing acquisitions that have not been approved by our board of directors.
|
•
|
the integration of management teams, strategies, technologies and operations, products and services;
|
•
|
the disruption of ongoing businesses and distraction of management from ongoing business concerns;
|
•
|
the retention of and possible decrease in business from the existing customers of both companies;
|
•
|
the creation of uniform standards, controls, procedures, policies and information systems;
|
•
|
the reduction of the costs associated with each company’s operations;
|
•
|
the integration of corporate cultures and maintenance of employee morale;
|
•
|
the retention of key employees; and
|
•
|
potential unknown liabilities associated with the merger.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2019
|
||||||||||||
TMHC
|
$
|
100.00
|
|
|
$
|
84.70
|
|
|
$
|
101.96
|
|
|
$
|
129.54
|
|
|
$
|
84.17
|
|
|
$
|
115.72
|
|
S&P 500
|
100.00
|
|
|
99.27
|
|
|
108.74
|
|
|
129.86
|
|
|
121.76
|
|
|
156.92
|
|
||||||
S&P Homebuilding Index
|
100.00
|
|
|
100.18
|
|
|
99.21
|
|
|
129.72
|
|
|
95.31
|
|
|
133.38
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
$
|
4,762,059
|
|
|
$
|
4,227,393
|
|
|
$
|
3,885,290
|
|
|
$
|
3,550,029
|
|
|
$
|
2,976,820
|
|
Gross margin
|
824,090
|
|
|
738,193
|
|
|
738,929
|
|
|
680,279
|
|
|
567,915
|
|
|||||
Income tax provision (1)
|
67,358
|
|
|
63,036
|
|
|
179,006
|
|
|
107,643
|
|
|
90,001
|
|
|||||
Net income from continuing operations
|
254,914
|
|
|
210,480
|
|
|
176,650
|
|
|
206,563
|
|
|
170,986
|
|
|||||
Income from discontinued operations – net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,059
|
|
|||||
Net income before allocation to non-controlling interests
|
254,914
|
|
|
210,480
|
|
|
176,650
|
|
|
206,563
|
|
|
229,045
|
|
|||||
Net income attributable to non-controlling interests – joint ventures
|
(262
|
)
|
|
(533
|
)
|
|
(430
|
)
|
|
(1,294
|
)
|
|
(1,681
|
)
|
|||||
Net income before non-controlling interests – Former Principal Equityholders
|
254,652
|
|
|
209,947
|
|
|
176,220
|
|
|
205,269
|
|
|
227,364
|
|
|||||
Net income from continuing operations attributable to non-controlling interests – Former Principal Equityholders
|
—
|
|
|
(3,583
|
)
|
|
(85,000
|
)
|
|
(152,653
|
)
|
|
(123,909
|
)
|
|||||
Net income from discontinued operations attributable to non-controlling interests – Former Principal Equityholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,406
|
)
|
|||||
Net income available to Taylor Morrison Home Corporation
|
$
|
254,652
|
|
|
$
|
206,364
|
|
|
$
|
91,220
|
|
|
$
|
52,616
|
|
|
$
|
61,049
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
2.38
|
|
|
$
|
1.85
|
|
|
$
|
1.47
|
|
|
$
|
1.69
|
|
|
$
|
1.38
|
|
Discontinued operations – net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.47
|
|
|||||
Net income available to Taylor Morrison Home Corporation (1)
|
$
|
2.38
|
|
|
$
|
1.85
|
|
|
$
|
1.47
|
|
|
$
|
1.69
|
|
|
$
|
1.85
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
2.35
|
|
|
$
|
1.83
|
|
|
$
|
1.47
|
|
|
$
|
1.69
|
|
|
$
|
1.38
|
|
Discontinued operations – net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.47
|
|
|||||
Net income available to Taylor Morrison Home Corporation (1)
|
$
|
2.35
|
|
|
$
|
1.83
|
|
|
$
|
1.47
|
|
|
$
|
1.69
|
|
|
$
|
1.85
|
|
Weighted average number of shares of common stock:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
106,997
|
|
|
111,743
|
|
|
62,061
|
|
|
31,084
|
|
|
33,063
|
|
|||||
Diluted
|
108,289
|
|
|
115,119
|
|
|
120,915
|
|
|
120,832
|
|
|
122,384
|
|
|
As of December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents (1)
|
$
|
326,437
|
|
|
$
|
329,645
|
|
|
$
|
573,925
|
|
|
$
|
300,179
|
|
|
$
|
126,188
|
|
Total real estate inventory
|
3,986,544
|
|
|
3,980,565
|
|
|
2,959,236
|
|
|
3,017,219
|
|
|
3,126,787
|
|
|||||
Total assets
|
5,245,686
|
|
|
5,264,441
|
|
|
4,325,893
|
|
|
4,220,926
|
|
|
4,122,447
|
|
|||||
Total debt
|
1,940,772
|
|
|
2,209,596
|
|
|
1,498,062
|
|
|
1,586,533
|
|
|
1,668,425
|
|
|||||
Total stockholders’ equity
|
2,545,712
|
|
|
2,418,735
|
|
|
2,346,545
|
|
|
2,160,202
|
|
|
1,972,677
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Year Ended December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average active selling communities
|
351
|
|
|
307
|
|
|
297
|
|
|
309
|
|
|
259
|
|
|||||
Net sales orders (units)
|
10,517
|
|
|
8,400
|
|
|
8,397
|
|
|
7,504
|
|
|
6,681
|
|
|||||
Home closings (units)
|
9,964
|
|
|
8,760
|
|
|
8,032
|
|
|
7,369
|
|
|
6,311
|
|
|||||
Average sales price of homes closed
|
$
|
464
|
|
|
$
|
470
|
|
|
$
|
473
|
|
|
$
|
465
|
|
|
$
|
458
|
|
Backlog value at end of period
|
$
|
2,274,948
|
|
|
$
|
2,079,569
|
|
|
$
|
1,702,071
|
|
|
$
|
1,531,910
|
|
|
$
|
1,392,973
|
|
Backlog units at end of period
|
4,711
|
|
|
4,158
|
|
|
3,496
|
|
|
3,131
|
|
|
2,932
|
|
East
|
|
Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa
|
Central
|
|
Austin, Dallas, Denver, and Houston
|
West
|
|
Bay Area, Phoenix, Sacramento, and Southern California
|
Financial Services
|
|
Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services
|
•
|
Revenue from closings of residential real estate is recognized when closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.
|
•
|
Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands, except per share information)
|
2019
|
|
2018
|
|
2017
|
||||||
Statements of Operations Data:
|
|
|
|
|
|
||||||
Home closings revenue, net
|
$
|
4,623,484
|
|
|
$
|
4,115,216
|
|
|
$
|
3,799,061
|
|
Land closings revenue
|
27,081
|
|
|
39,901
|
|
|
17,093
|
|
|||
Financial services revenue
|
92,815
|
|
|
67,758
|
|
|
69,136
|
|
|||
Amenity and other revenue
|
18,679
|
|
|
4,518
|
|
|
—
|
|
|||
Total revenue
|
$
|
4,762,059
|
|
|
$
|
4,227,393
|
|
|
$
|
3,885,290
|
|
Cost of home closings
|
3,836,857
|
|
|
3,410,853
|
|
|
3,092,704
|
|
|||
Cost of land closings
|
32,871
|
|
|
33,458
|
|
|
12,005
|
|
|||
Financial services expenses
|
51,086
|
|
|
41,469
|
|
|
41,652
|
|
|||
Amenity and other expenses
|
17,155
|
|
|
3,420
|
|
|
—
|
|
|||
Total cost of revenues
|
$
|
3,937,969
|
|
|
$
|
3,489,200
|
|
|
$
|
3,146,361
|
|
Gross margin
|
824,090
|
|
|
738,193
|
|
|
738,929
|
|
|||
Sales, commissions and other marketing costs
|
320,420
|
|
|
278,455
|
|
|
259,663
|
|
|||
General and administrative expenses
|
169,851
|
|
|
138,488
|
|
|
130,777
|
|
|||
Equity in income of unconsolidated entities
|
(9,509
|
)
|
|
(13,332
|
)
|
|
(8,846
|
)
|
|||
Interest income, net
|
(2,673
|
)
|
|
(1,639
|
)
|
|
(577
|
)
|
|||
Other expense, net
|
7,226
|
|
|
11,816
|
|
|
2,256
|
|
|||
Transaction and corporate reorganization expenses
|
10,697
|
|
|
50,889
|
|
|
—
|
|
|||
Loss on extinguishment of debt, net
|
5,806
|
|
|
—
|
|
|
—
|
|
|||
Income before income taxes
|
$
|
322,272
|
|
|
$
|
273,516
|
|
|
$
|
355,656
|
|
Income tax provision
|
67,358
|
|
|
63,036
|
|
|
179,006
|
|
|||
Net income before allocation to non-controlling interests
|
$
|
254,914
|
|
|
$
|
210,480
|
|
|
$
|
176,650
|
|
Net income attributable to non-controlling interests – joint ventures
|
(262
|
)
|
|
(533
|
)
|
|
(430
|
)
|
|||
Net income before non-controlling interests – Former Principal Equityholders
|
$
|
254,652
|
|
|
$
|
209,947
|
|
|
$
|
176,220
|
|
Net income attributable to non-controlling interests — Former Principal Equityholders
|
—
|
|
|
(3,583
|
)
|
|
(85,000
|
)
|
|||
Net income available to Taylor Morrison Home Corporation
|
$
|
254,652
|
|
|
$
|
206,364
|
|
|
$
|
91,220
|
|
Home closings gross margin
|
17.0
|
%
|
|
17.1
|
%
|
|
18.6
|
%
|
|||
Interest amortized to cost of home closings
|
$
|
93,739
|
|
|
$
|
82,422
|
|
|
$
|
94,859
|
|
Average sales price per home closed
|
$
|
464
|
|
|
$
|
470
|
|
|
$
|
473
|
|
Sales, commissions and other marketing costs as a percentage of home closings revenue, net
|
6.9
|
%
|
|
6.8
|
%
|
|
6.8
|
%
|
|||
General and administrative expenses as a percentage of home closings revenue, net
|
3.7
|
%
|
|
3.4
|
%
|
|
3.4
|
%
|
|||
Effective tax rate
|
20.9
|
%
|
|
23.0
|
%
|
|
50.3
|
%
|
|||
Earnings per common share -
|
|
|
|
|
|
||||||
Income from continuing operations - Basic
|
$
|
2.38
|
|
|
$
|
1.85
|
|
|
$
|
1.47
|
|
Income from continuing operations - Diluted
|
$
|
2.35
|
|
|
$
|
1.83
|
|
|
$
|
1.47
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Warranty charge
|
|
$
|
43,133
|
|
|
$
|
39,300
|
|
|
$
|
—
|
|
Inventory impairment charges
|
|
8,928
|
|
|
9,600
|
|
|
—
|
|
|||
Write-off of Chicago Operations
|
|
13,285
|
|
|
—
|
|
|
—
|
|
|||
Legal and other costs for unusual items
|
|
6,800
|
|
|
1,200
|
|
|
—
|
|
|||
Significant and unusual items
|
|
$
|
72,146
|
|
|
$
|
50,100
|
|
|
$
|
—
|
|
Adjusted Home Closings Gross Margin
|
|||||||||
|
|
|
Year Ended
December 31, |
||||||
(Dollars in thousands)
|
|
|
2019
|
|
2018
|
||||
Home closings revenue, net
|
|
|
$
|
4,623,484
|
|
|
$
|
4,115,216
|
|
Cost of home closings
|
|
|
3,836,857
|
|
|
3,410,853
|
|
||
Home closings gross margin
|
|
|
$
|
786,627
|
|
|
$
|
704,363
|
|
Inventory impairment charges
|
|
|
9,384
|
|
|
9,631
|
|
||
Warranty charge
|
|
|
43,346
|
|
|
39,333
|
|
||
Adjusted home closings gross margin
|
|
|
$
|
839,357
|
|
|
$
|
753,327
|
|
Home closings gross margin as a percentage of home closings revenue
|
|
|
17.0
|
%
|
|
17.1
|
%
|
||
Adjusted home closings gross margin as a percentage of home closings revenue
|
|
|
18.2
|
%
|
|
18.3
|
%
|
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
Change
|
|||
East
|
159
|
|
|
134
|
|
|
18.7
|
%
|
Central
|
134
|
|
|
121
|
|
|
10.7
|
|
West
|
58
|
|
|
52
|
|
|
11.5
|
|
Total
|
351
|
|
|
307
|
|
|
14.3
|
%
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||
(Dollars in thousands )
|
Net Homes Sold
|
|
Sales Value
|
|
Average Selling Price
|
|||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
4,893
|
|
|
3,471
|
|
|
41.0
|
%
|
|
$
|
1,979,100
|
|
|
$
|
1,438,757
|
|
|
37.6
|
%
|
|
$
|
404
|
|
|
$
|
415
|
|
|
(2.7
|
)%
|
Central
|
3,019
|
|
|
2,697
|
|
|
11.9
|
|
|
1,434,406
|
|
|
1,300,630
|
|
|
10.3
|
|
|
475
|
|
|
482
|
|
|
(1.5
|
)
|
||||
West
|
2,605
|
|
|
2,232
|
|
|
16.7
|
|
|
1,405,357
|
|
|
1,356,634
|
|
|
3.6
|
|
|
539
|
|
|
608
|
|
|
(11.3
|
)
|
||||
Total
|
10,517
|
|
|
8,400
|
|
|
25.2
|
%
|
|
$
|
4,818,863
|
|
|
$
|
4,096,021
|
|
|
17.6
|
%
|
|
$
|
458
|
|
|
$
|
488
|
|
|
(6.1
|
)%
|
|
Year Ended December 31,
|
||||
|
Cancellation Rate (1)
|
||||
|
2019
|
|
2018
|
||
East
|
11.9
|
%
|
|
12.0
|
%
|
Central
|
13.2
|
|
|
13.6
|
|
West
|
12.9
|
|
|
14.2
|
|
Total Company
|
12.5
|
%
|
|
13.1
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||
(Dollars in thousands)
|
Sold Homes in Backlog (1)
|
|
Sales Value
|
|
Average Selling Price
|
|||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
1,816
|
|
|
1,638
|
|
|
10.9
|
%
|
|
$
|
791,485
|
|
|
$
|
724,564
|
|
|
9.2
|
%
|
|
$
|
436
|
|
|
$
|
442
|
|
|
(1.4
|
)%
|
Central
|
1,655
|
|
|
1,420
|
|
|
16.5
|
|
|
839,004
|
|
|
731,795
|
|
|
14.7
|
|
|
507
|
|
|
515
|
|
|
(1.6
|
)
|
||||
West
|
1,240
|
|
|
1,100
|
|
|
12.7
|
|
|
644,459
|
|
|
623,210
|
|
|
3.4
|
|
|
520
|
|
|
567
|
|
|
(8.3
|
)
|
||||
Total
|
4,711
|
|
|
4,158
|
|
|
13.3
|
%
|
|
$
|
2,274,948
|
|
|
$
|
2,079,569
|
|
|
9.4
|
%
|
|
$
|
483
|
|
|
$
|
500
|
|
|
(3.4
|
)%
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||
(Dollars in thousands)
|
Homes Closed
|
|
Home Closings Revenue, Net
|
|
Average Selling Price
|
|||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
East
|
4,715
|
|
|
4,061
|
|
|
16.1
|
%
|
|
$
|
1,912,179
|
|
|
$
|
1,643,152
|
|
|
16.4
|
%
|
|
$
|
406
|
|
|
$
|
405
|
|
|
0.2
|
%
|
Central
|
2,784
|
|
|
2,380
|
|
|
17.0
|
|
|
1,327,197
|
|
|
1,126,446
|
|
|
17.8
|
|
|
477
|
|
|
473
|
|
|
0.8
|
|
||||
West
|
2,465
|
|
|
2,319
|
|
|
6.3
|
|
|
1,384,108
|
|
|
1,345,618
|
|
|
2.9
|
|
|
562
|
|
|
580
|
|
|
(3.1
|
)
|
||||
Total
|
9,964
|
|
|
8,760
|
|
|
13.7
|
%
|
|
$
|
4,623,484
|
|
|
$
|
4,115,216
|
|
|
12.4
|
%
|
|
$
|
464
|
|
|
$
|
470
|
|
|
(1.3
|
)%
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
Change
|
||||||
East
|
$
|
19,884
|
|
|
$
|
18,753
|
|
|
$
|
1,131
|
|
Central
|
7,192
|
|
|
13,176
|
|
|
(5,984
|
)
|
|||
West
|
5
|
|
|
7,972
|
|
|
(7,967
|
)
|
|||
Total
|
$
|
27,081
|
|
|
$
|
39,901
|
|
|
$
|
(12,820
|
)
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
Change
|
||||||
East
|
$
|
18,679
|
|
|
$
|
4,518
|
|
|
$
|
14,161
|
|
Central
|
—
|
|
|
—
|
|
|
—
|
|
|||
West
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
18,679
|
|
|
$
|
4,518
|
|
|
$
|
14,161
|
|
|
East
|
|
Central
|
|
West
|
|
Total
|
||||||||||||||||||||||||
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Home closings revenue, net
|
$
|
1,912,179
|
|
|
$
|
1,643,152
|
|
|
$
|
1,327,197
|
|
|
$
|
1,126,446
|
|
|
$
|
1,384,108
|
|
|
$
|
1,345,618
|
|
|
$
|
4,623,484
|
|
|
$
|
4,115,216
|
|
Cost of home closings
|
1,597,389
|
|
|
1,364,027
|
|
|
1,141,866
|
|
|
969,215
|
|
|
1,097,602
|
|
|
1,077,611
|
|
|
3,836,857
|
|
|
3,410,853
|
|
||||||||
Home closings gross margin
|
$
|
314,790
|
|
|
$
|
279,125
|
|
|
$
|
185,331
|
|
|
$
|
157,231
|
|
|
$
|
286,506
|
|
|
$
|
268,007
|
|
|
$
|
786,627
|
|
|
$
|
704,363
|
|
Inventory impairment
|
2,477
|
|
|
8,486
|
|
|
6,907
|
|
|
—
|
|
|
—
|
|
|
1,145
|
|
|
9,384
|
|
|
9,631
|
|
||||||||
Warranty charge
|
213
|
|
|
—
|
|
|
43,133
|
|
|
39,333
|
|
|
—
|
|
|
—
|
|
|
43,346
|
|
|
39,333
|
|
||||||||
Adjusted home closings gross margin
|
$
|
317,480
|
|
|
$
|
287,611
|
|
|
$
|
235,371
|
|
|
$
|
196,564
|
|
|
$
|
286,506
|
|
|
$
|
269,152
|
|
|
$
|
839,357
|
|
|
$
|
753,327
|
|
Home closings gross margin as a percentage of home closings revenue
|
16.5
|
%
|
|
17.0
|
%
|
|
14.0
|
%
|
|
14.0
|
%
|
|
20.7
|
%
|
|
19.9
|
%
|
|
17.0
|
%
|
|
17.1
|
%
|
||||||||
Adjusted home closings gross margin as a percentage of home closings revenue
|
16.6
|
%
|
|
17.5
|
%
|
|
17.7
|
%
|
|
17.4
|
%
|
|
20.7
|
%
|
|
20.0
|
%
|
|
18.2
|
%
|
|
18.3
|
%
|
|
Year Ended
December 31,
|
|||||||||
(In thousands, except the number of loan originations)
|
2019
|
|
2018
|
|
Change
|
|||||
Financial services revenue
|
$
|
75,822
|
|
|
$
|
57,242
|
|
|
32.5
|
%
|
Financial services revenue - Other
|
4,097
|
|
|
2,349
|
|
|
74.4
|
%
|
||
Title services revenue
|
12,896
|
|
|
8,167
|
|
|
57.9
|
%
|
||
Total financial services revenue
|
92,815
|
|
|
67,758
|
|
|
37.0
|
%
|
||
Financial services equity in income of unconsolidated entities
|
6,021
|
|
|
5,316
|
|
|
13.3
|
%
|
||
Total income
|
98,836
|
|
|
73,074
|
|
|
35.3
|
%
|
||
Financial services expenses
|
51,086
|
|
|
41,469
|
|
|
23.2
|
%
|
||
Financial services income before income taxes
|
$
|
47,750
|
|
|
$
|
31,605
|
|
|
51.1
|
%
|
Total originations:
|
|
|
|
|
|
|
|
|||
Loans
|
5,605
|
|
|
4,471
|
|
|
25.4
|
%
|
||
Principal
|
$
|
1,930,086
|
|
|
$
|
1,557,367
|
|
|
23.9
|
%
|
|
Year Ended
December 31,
|
||
|
2019
|
|
2018
|
Supplemental data:
|
|
|
|
Average FICO score
|
749
|
|
747
|
Funded origination breakdown:
|
|
|
|
Government (FHA, VA, USDA)
|
15%
|
|
16%
|
Other agency
|
73%
|
|
69%
|
Total agency
|
88%
|
|
85%
|
Non-agency
|
12%
|
|
15%
|
Total funded originations
|
100%
|
|
100%
|
•
|
Borrowings under our Revolving Credit Facility;
|
•
|
Our various series of Senior Notes;
|
•
|
Mortgage warehouse facilities;
|
•
|
Project-level real estate financing (including non-recourse loans);
|
•
|
Performance, payment and completion surety bonds, and letters of credit; and
|
•
|
Cash generated from operations.
|
•
|
Cash generated from operations; and
|
•
|
Borrowings under our Revolving Credit Facility.
|
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Total Cash, excluding Restricted Cash
|
|
$
|
326,437
|
|
|
$
|
329,645
|
|
Total Revolving Credit Facility(1)
|
|
600,000
|
|
|
600,000
|
|
||
Total 364-Day Credit Agreement
|
|
—
|
|
|
200,000
|
|
||
Letters of Credit Outstanding
|
|
(77,719
|
)
|
|
(62,315
|
)
|
||
Revolving Credit Facility Borrowings Outstanding
|
|
—
|
|
|
—
|
|
||
364-Day Credit Agreement Outstanding
|
|
—
|
|
|
(200,000
|
)
|
||
Revolving Credit Facility Availability
|
|
522,281
|
|
|
537,685
|
|
||
Total Liquidity
|
|
$
|
848,718
|
|
|
$
|
867,330
|
|
(Dollars in thousands)
|
Date Issued
|
|
Principal
Amount
|
|
Initial Offering
Price
|
|
Interest
Rate
|
|
Original Net Proceeds
|
|
Original Debt
Issuance
Cost
|
||||||||
Senior Notes due 2023
|
April 16, 2015
|
|
350,000
|
|
|
100.0
|
%
|
|
5.875
|
%
|
|
345,500
|
|
|
4,500
|
|
|||
Senior Notes due 2024
|
March 5, 2014
|
|
350,000
|
|
|
100.0
|
%
|
|
5.625
|
%
|
|
345,300
|
|
|
4,700
|
|
|||
Senior Notes due 2027
|
June 5, 2019
|
|
500,000
|
|
|
100.0
|
%
|
|
5.875
|
%
|
|
495,000
|
|
|
5,000
|
|
|||
Senior Notes due 2028
|
August 1, 2019
|
|
450,000
|
|
|
100.0
|
%
|
|
5.750
|
%
|
|
444,500
|
|
|
5,500
|
|
|||
Total
|
|
|
$
|
1,650,000
|
|
|
|
|
|
|
$
|
1,630,300
|
|
|
$
|
19,700
|
|
(Dollars in thousands)
|
December 31, 2019
|
||||||||||||
Facility
|
Amount
Drawn
|
|
Facility
Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
$
|
25,074
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
38,481
|
|
|
85,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
59,678
|
|
|
100,000
|
|
|
LIBOR + 1.70%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
$
|
123,233
|
|
|
$
|
230,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
December 31, 2018
|
||||||||||||
Facility
|
Amount
Drawn
|
|
Facility
Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
$
|
29,484
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
38,164
|
|
|
85,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
62,705
|
|
|
100,000
|
|
|
LIBOR + 1.95%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
$
|
130,353
|
|
|
$
|
230,000
|
|
|
|
|
|
|
|
(1)
|
The mortgage warehouse borrowings outstanding as of December 31, 2019 and 2018, are collateralized by $190.9 million and $181.9 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $1.6 million of cash for both periods, which is restricted cash on our balance sheet.
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Letters of credit (1)
|
$
|
80,440
|
|
|
$
|
62,315
|
|
Surety bonds
|
542,823
|
|
|
334,892
|
|
||
Total outstanding letters of credit and surety bonds
|
$
|
623,263
|
|
|
$
|
397,207
|
|
(Dollars in thousands)
|
Payments Due by Period
|
||||||||||||||||||
|
Totals
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Operating lease obligations
|
$
|
49,959
|
|
|
$
|
10,018
|
|
|
$
|
16,759
|
|
|
$
|
13,276
|
|
|
$
|
9,906
|
|
Unrecognized tax benefit obligations including interest and penalties
|
(2,572
|
)
|
|
—
|
|
|
(2,572
|
)
|
|
—
|
|
|
—
|
|
|||||
Land purchase contracts and lot options
|
289,677
|
|
|
124,709
|
|
|
130,794
|
|
|
23,003
|
|
|
11,171
|
|
|||||
Senior notes (1)
|
1,650,000
|
|
|
—
|
|
|
—
|
|
|
700,000
|
|
|
950,000
|
|
|||||
Other debt outstanding (1)
|
305,764
|
|
|
182,872
|
|
|
67,037
|
|
|
55,855
|
|
|
—
|
|
|||||
Estimated interest expense (2)
|
431,700
|
|
|
101,967
|
|
|
173,108
|
|
|
130,750
|
|
|
25,875
|
|
|||||
Totals
|
$
|
2,724,528
|
|
|
$
|
419,566
|
|
|
$
|
385,126
|
|
|
$
|
922,884
|
|
|
$
|
996,952
|
|
(1)
|
As of December 31, 2019, total debt outstanding included $350.0 million aggregate principal amount of 2023 Senior Notes, $350.0 million aggregate principal amount of 2024 Senior Notes, $500.0 million aggregate principal amount of 2027 Senior Notes, $450.0 million aggregate principal amount of 2028 Senior Notes, $123.2 million of mortgage borrowings by TMHF, and $182.5 million of loans and other borrowings. Scheduled maturities of certain loans and other borrowings as of December 31, 2019 reflect estimates of anticipated lot take-downs associated with such loans.
|
(2)
|
Estimated interest expense amounts for debt outstanding at the respective contractual interest rates, the weighted average of which was 5.6% as of December 31, 2019.
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
East
|
$
|
—
|
|
|
$
|
—
|
|
Central
|
37,506
|
|
|
35,476
|
|
||
West
|
86,996
|
|
|
100,693
|
|
||
Financial Services
|
4,257
|
|
|
4,372
|
|
||
Total
|
$
|
128,759
|
|
|
$
|
140,541
|
|
|
Expected Maturity Date
|
|
|
|
|
|
Fair
Value
|
||||||||||||||||||||||||
(Dollars in millions, except percentage data)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
|||||||||||||||||
Fixed Rate Debt
|
$
|
59.6
|
|
|
$
|
55.3
|
|
|
$
|
11.8
|
|
|
$
|
374.5
|
|
|
$
|
381.4
|
|
|
$
|
950.0
|
|
|
$
|
1,832.6
|
|
|
$
|
1,981.4
|
|
Weighted average interest rate (1)
|
2.7
|
%
|
|
2.7
|
%
|
|
2.7
|
%
|
|
5.6
|
%
|
|
5.5
|
%
|
|
5.8
|
%
|
|
5.5
|
%
|
|
—
|
%
|
||||||||
Variable rate debt (2)
|
$
|
123.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
123.2
|
|
|
$
|
123.2
|
|
|||||
Average interest rate
|
4.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.0
|
%
|
|
—
|
%
|
|
Page
Number
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
326,437
|
|
|
$
|
329,645
|
|
Restricted cash
|
2,135
|
|
|
2,214
|
|
||
Total cash, cash equivalents, and restricted cash
|
328,572
|
|
|
331,859
|
|
||
Real estate inventory:
|
|
|
|
||||
Owned inventory
|
3,967,359
|
|
|
3,965,306
|
|
||
Real estate not owned
|
19,185
|
|
|
15,259
|
|
||
Total real estate inventory
|
3,986,544
|
|
|
3,980,565
|
|
||
Land deposits
|
39,810
|
|
|
57,929
|
|
||
Mortgage loans held for sale
|
190,880
|
|
|
181,897
|
|
||
Derivative assets
|
2,099
|
|
|
1,838
|
|
||
Operating lease right of use assets
|
36,663
|
|
|
—
|
|
||
Prepaid expenses and other assets, net
|
85,515
|
|
|
98,225
|
|
||
Other receivables, net
|
70,447
|
|
|
86,587
|
|
||
Investments in unconsolidated entities
|
128,759
|
|
|
140,541
|
|
||
Deferred tax assets, net
|
140,466
|
|
|
145,076
|
|
||
Property and equipment, net
|
85,866
|
|
|
86,736
|
|
||
Intangible assets, net
|
637
|
|
|
1,072
|
|
||
Goodwill
|
149,428
|
|
|
152,116
|
|
||
Total assets
|
$
|
5,245,686
|
|
|
$
|
5,264,441
|
|
Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
164,580
|
|
|
$
|
151,586
|
|
Accrued expenses and other liabilities
|
325,368
|
|
|
266,686
|
|
||
Operating lease liabilities
|
42,317
|
|
|
—
|
|
||
Income taxes payable
|
3,719
|
|
|
—
|
|
||
Customer deposits
|
167,328
|
|
|
165,432
|
|
||
Estimated development liabilities
|
36,705
|
|
|
37,147
|
|
||
Senior notes, net
|
1,635,008
|
|
|
1,653,746
|
|
||
Loans payable and other borrowings
|
182,531
|
|
|
225,497
|
|
||
Revolving credit facility borrowings
|
—
|
|
|
200,000
|
|
||
Mortgage warehouse borrowings
|
123,233
|
|
|
130,353
|
|
||
Liabilities attributable to real estate not owned
|
19,185
|
|
|
15,259
|
|
||
Total liabilities
|
2,699,974
|
|
|
2,845,706
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 19)
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
||||
Common stock, $0.00001 par value, 400,000,000 shares authorized,
125,794,719 and 124,519,942 shares issued, 105,851,285 and 112,965,856 shares outstanding as of December 31, 2019 and December 31, 2018, respectively |
1
|
|
|
1
|
|
||
Additional paid-in capital
|
2,097,995
|
|
|
2,071,579
|
|
||
Treasury stock at cost, 19,943,432 and 11,554,084 shares as of December 31, 2019 and December 31, 2018, respectively
|
(343,524
|
)
|
|
(186,087
|
)
|
||
Retained earnings
|
782,350
|
|
|
527,698
|
|
||
Accumulated other comprehensive income
|
884
|
|
|
2,001
|
|
||
Total stockholders’ equity attributable to Taylor Morrison Home Corporation
|
2,537,706
|
|
|
2,415,192
|
|
||
Non-controlling interests — joint ventures
|
8,006
|
|
|
3,543
|
|
||
Total stockholders’ equity
|
2,545,712
|
|
|
2,418,735
|
|
||
Total liabilities and stockholders’ equity
|
$
|
5,245,686
|
|
|
$
|
5,264,441
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Home closings revenue, net
|
$
|
4,623,484
|
|
|
$
|
4,115,216
|
|
|
$
|
3,799,061
|
|
Land closings revenue
|
27,081
|
|
|
39,901
|
|
|
17,093
|
|
|||
Financial services revenue
|
92,815
|
|
|
67,758
|
|
|
69,136
|
|
|||
Amenity and other revenue
|
18,679
|
|
|
4,518
|
|
|
—
|
|
|||
Total revenue
|
4,762,059
|
|
|
4,227,393
|
|
|
3,885,290
|
|
|||
Cost of home closings
|
3,836,857
|
|
|
3,410,853
|
|
|
3,092,704
|
|
|||
Cost of land closings
|
32,871
|
|
|
33,458
|
|
|
12,005
|
|
|||
Financial services expenses
|
51,086
|
|
|
41,469
|
|
|
41,652
|
|
|||
Amenity and other expenses
|
17,155
|
|
|
3,420
|
|
|
—
|
|
|||
Total cost of revenues
|
3,937,969
|
|
|
3,489,200
|
|
|
3,146,361
|
|
|||
Gross margin
|
824,090
|
|
|
738,193
|
|
|
738,929
|
|
|||
Sales, commissions and other marketing costs
|
320,420
|
|
|
278,455
|
|
|
259,663
|
|
|||
General and administrative expenses
|
169,851
|
|
|
138,488
|
|
|
130,777
|
|
|||
Equity in income of unconsolidated entities
|
(9,509
|
)
|
|
(13,332
|
)
|
|
(8,846
|
)
|
|||
Interest income, net
|
(2,673
|
)
|
|
(1,639
|
)
|
|
(577
|
)
|
|||
Other expense, net
|
7,226
|
|
|
11,816
|
|
|
2,256
|
|
|||
Transaction and corporate reorganization expenses
|
10,697
|
|
|
50,889
|
|
|
—
|
|
|||
Loss on extinguishment of debt, net
|
5,806
|
|
|
—
|
|
|
—
|
|
|||
Income before income taxes
|
322,272
|
|
|
273,516
|
|
|
355,656
|
|
|||
Income tax provision
|
67,358
|
|
|
63,036
|
|
|
179,006
|
|
|||
Net income before allocation to non-controlling interests
|
254,914
|
|
|
210,480
|
|
|
176,650
|
|
|||
Net income attributable to non-controlling interests — joint ventures
|
(262
|
)
|
|
(533
|
)
|
|
(430
|
)
|
|||
Net income before allocation to non-controlling interests — Former Principal Equityholders
|
254,652
|
|
|
209,947
|
|
|
176,220
|
|
|||
Net income attributable to non-controlling interests — Former Principal Equityholders
|
—
|
|
|
(3,583
|
)
|
|
(85,000
|
)
|
|||
Net income available to Taylor Morrison Home Corporation
|
$
|
254,652
|
|
|
$
|
206,364
|
|
|
$
|
91,220
|
|
Earnings per common share
|
|
|
|
|
|
||||||
Basic
|
$
|
2.38
|
|
|
$
|
1.85
|
|
|
$
|
1.47
|
|
Diluted
|
$
|
2.35
|
|
|
$
|
1.83
|
|
|
$
|
1.47
|
|
Weighted average number of shares of common stock:
|
|
|
|
|
|
||||||
Basic
|
106,997
|
|
|
111,743
|
|
|
62,061
|
|
|||
Diluted
|
108,289
|
|
|
115,119
|
|
|
120,915
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Income before non-controlling interests, net of tax
|
$
|
254,914
|
|
|
$
|
210,480
|
|
|
$
|
176,650
|
|
Post-retirement benefits adjustments, net of tax
|
(1,117
|
)
|
|
(81
|
)
|
|
21
|
|
|||
Comprehensive income
|
253,797
|
|
|
210,399
|
|
|
176,671
|
|
|||
Comprehensive income attributable to non-controlling interests — joint ventures
|
(262
|
)
|
|
(533
|
)
|
|
(430
|
)
|
|||
Comprehensive income attributable to non-controlling interests — Former Principal Equityholders
|
—
|
|
|
(3,583
|
)
|
|
(85,000
|
)
|
|||
Comprehensive income available to Taylor Morrison Home Corporation
|
$
|
253,535
|
|
|
$
|
206,283
|
|
|
$
|
91,241
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Additional
Paid-in
Capital
|
|
Treasury Stock
|
|
Stockholders’ Equity
|
|||||||||||||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Non-controlling
Interest - Joint
Venture
|
|
Non-controlling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||
Balance — December 31, 2016
|
30,486,858
|
|
|
$
|
—
|
|
|
88,942,052
|
|
|
$
|
1
|
|
|
$
|
384,709
|
|
|
2,853,433
|
|
|
$
|
(43,524
|
)
|
|
$
|
228,613
|
|
|
$
|
(17,989
|
)
|
|
$
|
1,525
|
|
|
$
|
1,606,867
|
|
|
$
|
2,160,202
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,220
|
|
|
—
|
|
|
430
|
|
|
85,000
|
|
|
176,650
|
|
|||||||||
Other comprehensive (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock
|
260,389
|
|
|
—
|
|
|
(260,389
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Cancellation of forfeited New TMM Units and corresponding number of Class B Common Stock
|
—
|
|
|
—
|
|
|
(2,047
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Exercise of stock options
|
288,808
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,235
|
|
|||||||||
Issuance of restricted stock units, net of shares withheld for tax
|
59,765
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(307
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(307
|
)
|
|||||||||
Repurchase of common stock
|
(195,824
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195,824
|
|
|
(4,098
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,098
|
)
|
|||||||||
Exchange of (repurchase) of B shares from secondary offerings
|
51,500,000
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
946,430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
946,431
|
|
|||||||||
Repurchase of New TMM Units from principal equityholders
|
—
|
|
|
—
|
|
|
(51,500,000
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(948,883
|
)
|
|
(948,884
|
)
|
|||||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,806
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,781
|
|
|
11,587
|
|
|||||||||
Changes in non-controlling interest in consolidated joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(292
|
)
|
|
—
|
|
|
(292
|
)
|
|||||||||
Balance — December 31, 2017
|
82,399,996
|
|
|
1
|
|
|
37,179,616
|
|
|
—
|
|
|
1,341,873
|
|
|
3,049,257
|
|
|
(47,622
|
)
|
|
319,833
|
|
|
(17,968
|
)
|
|
1,663
|
|
|
748,765
|
|
|
2,346,545
|
|
|||||||||
Cumulative-effect adjustment to retained Earnings related to adoption of ASU No. 2014-09 (see Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,501
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,501
|
|
|||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206,364
|
|
|
—
|
|
|
533
|
|
|
3,583
|
|
|
210,480
|
|
|||||||||
Other comprehensive (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|||||||||
Exchange of New TMM Units and corresponding number of Class B Common Stock
|
20,487
|
|
|
—
|
|
|
(20,487
|
)
|
|
—
|
|
|
1,293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,293
|
)
|
|
—
|
|
|||||||||
TMHC repurchase and cancellation of New TMM Units and corresponding Class B Common Stock from Former Principal Equityholders
|
—
|
|
|
—
|
|
|
(7,588,771
|
)
|
|
—
|
|
|
(201,775
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201,775
|
)
|
|||||||||
Exercise of stock options
|
118,992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,887
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,887
|
|
|||||||||
Issuance of restricted stock units, net of shares withheld for tax
|
409,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,572
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,572
|
)
|
|||||||||
Exchange of B shares from public offerings
|
28,706,924
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
729,954
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
729,954
|
|
|||||||||
Repurchase of New TMM Units from Former Principal Equityholders
|
—
|
|
|
—
|
|
|
(28,706,924
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(730,964
|
)
|
|
(730,964
|
)
|
Issuance of Class A common stock in connection with business acquisition
|
8,951,169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158,704
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158,704
|
|
|||||||||
Repurchase of common stock
|
(8,504,827
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,504,827
|
|
|
(138,465
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(138,465
|
)
|
|||||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,703
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
421
|
|
|
21,124
|
|
|||||||||
Changes in non-controlling interest in consolidated joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,347
|
|
|
—
|
|
|
1,347
|
|
|||||||||
Realized loss on foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,050
|
|
|
—
|
|
|
—
|
|
|
20,050
|
|
|||||||||
Liquidation of Class B common stock in connection with holding company reorganization
|
863,434
|
|
|
—
|
|
|
(863,434
|
)
|
|
—
|
|
|
20,512
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,512
|
)
|
|
—
|
|
|||||||||
Balance — December 31, 2018
|
112,965,856
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,071,579
|
|
|
11,554,084
|
|
|
$
|
(186,087
|
)
|
|
$
|
527,698
|
|
|
$
|
2,001
|
|
|
$
|
3,543
|
|
|
$
|
—
|
|
|
$
|
2,418,735
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
254,652
|
|
|
—
|
|
|
262
|
|
|
—
|
|
|
254,914
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,117
|
)
|
|
—
|
|
|
—
|
|
|
(1,117
|
)
|
|||||||||
Exercise of stock options
|
765,781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,238
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,238
|
|
|||||||||
Issuance of restricted stock units, net of shares withheld for tax
|
508,996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,585
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,585
|
)
|
|||||||||
Repurchase of common stock
|
(8,389,348
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,389,348
|
|
|
(157,437
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(157,437
|
)
|
|||||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,763
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,763
|
|
|||||||||
Distributions to non-controlling interests of consolidated joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,196
|
|
|
—
|
|
|
2,196
|
|
|||||||||
Changes in non-controlling interests of consolidated joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,005
|
|
|
—
|
|
|
2,005
|
|
|||||||||
Balance — December 31, 2019
|
105,851,285
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,097,995
|
|
|
19,943,432
|
|
|
$
|
(343,524
|
)
|
|
$
|
782,350
|
|
|
$
|
884
|
|
|
$
|
8,006
|
|
|
$
|
—
|
|
|
$
|
2,545,712
|
|
|
For the Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net income before allocation to non-controlling interests
|
$
|
254,914
|
|
|
$
|
210,480
|
|
|
$
|
176,650
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in income of unconsolidated entities
|
(9,509
|
)
|
|
(13,332
|
)
|
|
(8,846
|
)
|
|||
Stock compensation expense
|
14,763
|
|
|
21,124
|
|
|
11,587
|
|
|||
Loss on extinguishment of debt
|
5,806
|
|
|
—
|
|
|
—
|
|
|||
Distributions of earnings from unconsolidated entities
|
10,473
|
|
|
11,845
|
|
|
6,965
|
|
|||
Depreciation and amortization
|
31,424
|
|
|
26,391
|
|
|
3,953
|
|
|||
Lease expense
|
9,087
|
|
|
—
|
|
|
—
|
|
|||
Debt issuance costs/premium amortization
|
1,173
|
|
|
2,369
|
|
|
3,819
|
|
|||
Realized loss on foreign currency translation
|
—
|
|
|
20,050
|
|
|
—
|
|
|||
Contingent consideration
|
—
|
|
|
146
|
|
|
736
|
|
|||
Deferred income taxes
|
2,655
|
|
|
44,472
|
|
|
88,496
|
|
|||
Inventory impairments
|
9,384
|
|
|
9,631
|
|
|
—
|
|
|||
Chicago assets held for sale valuation adjustments
|
9,942
|
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Real estate inventory and land deposits
|
990
|
|
|
(248,215
|
)
|
|
41,723
|
|
|||
Mortgages held for sale, prepaid expenses and other assets
|
(26,614
|
)
|
|
(27,256
|
)
|
|
67,186
|
|
|||
Customer deposits
|
1,896
|
|
|
18,773
|
|
|
20,956
|
|
|||
Accounts payable, estimated development liability, and accrued expenses and other liabilities
|
73,113
|
|
|
63,641
|
|
|
(20,989
|
)
|
|||
Income taxes payable
|
3,719
|
|
|
(4,525
|
)
|
|
(6,003
|
)
|
|||
Net cash provided by operating activities
|
393,216
|
|
|
135,594
|
|
|
386,233
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchase of property and equipment
|
(30,118
|
)
|
|
(20,458
|
)
|
|
(3,421
|
)
|
|||
Payments for business acquisitions, net of cash acquired
|
—
|
|
|
(192,886
|
)
|
|
—
|
|
|||
Distributions of capital from unconsolidated entities
|
23,584
|
|
|
57,002
|
|
|
4,083
|
|
|||
Investments of capital into unconsolidated entities
|
(12,766
|
)
|
|
(3,376
|
)
|
|
(36,657
|
)
|
|||
Net cash used in investing activities
|
(19,300
|
)
|
|
(159,718
|
)
|
|
(35,995
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Increase in loans payable and other borrowings
|
26,740
|
|
|
29,937
|
|
|
21,621
|
|
|||
Repayments of loans payable and other borrowings
|
(30,383
|
)
|
|
(25,319
|
)
|
|
(16,511
|
)
|
|||
Borrowings on revolving credit facility
|
315,000
|
|
|
350,000
|
|
|
—
|
|
|||
Payments on revolving credit facility
|
(515,000
|
)
|
|
(150,000
|
)
|
|
—
|
|
|||
Borrowings on mortgage warehouse
|
1,145,799
|
|
|
863,109
|
|
|
838,172
|
|
|||
Repayment on mortgage warehouse
|
(1,152,919
|
)
|
|
(851,578
|
)
|
|
(917,914
|
)
|
|||
Proceeds from the issuance of senior notes
|
950,000
|
|
|
—
|
|
|
—
|
|
|||
Repayments on senior notes
|
(963,252
|
)
|
|
—
|
|
|
—
|
|
|||
Payment of deferred financing costs
|
(11,603
|
)
|
|
—
|
|
|
—
|
|
|||
Payment of contingent consideration
|
—
|
|
|
(265
|
)
|
|
—
|
|
|||
Repayment of convertible notes
|
—
|
|
|
(95,816
|
)
|
|
—
|
|
|||
Proceeds from stock option exercises
|
13,238
|
|
|
1,887
|
|
|
5,235
|
|
|||
Proceeds from issuance of shares from public offerings
|
—
|
|
|
767,115
|
|
|
1,111,806
|
|
|||
TMHC repurchase and cancellation of New TMM Units from Former Principal Equityholders
|
—
|
|
|
(201,775
|
)
|
|
—
|
|
|||
Repurchase of shares from Former Principal Equityholders
|
—
|
|
|
(768,125
|
)
|
|
(1,114,259
|
)
|
|||
Repurchase of common stock, net
|
(157,439
|
)
|
|
(138,465
|
)
|
|
(4,098
|
)
|
|||
Payment of taxes related to net share settlement of equity awards
|
(1,585
|
)
|
|
(1,572
|
)
|
|
(307
|
)
|
Contributions to (distributions to) non-controlling interests of consolidated joint ventures, net
|
4,201
|
|
|
1,347
|
|
|
(292
|
)
|
|||
Net cash used in financing activities
|
(377,203
|
)
|
|
(219,520
|
)
|
|
(76,547
|
)
|
|||
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
|
$
|
(3,287
|
)
|
|
$
|
(243,644
|
)
|
|
$
|
273,691
|
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period
|
331,859
|
|
|
575,503
|
|
|
301,812
|
|
|||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period
|
$
|
328,572
|
|
|
$
|
331,859
|
|
|
$
|
575,503
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Income taxes paid, net
|
$
|
(20,129
|
)
|
|
$
|
(63,484
|
)
|
|
$
|
(96,525
|
)
|
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Change in loans payable issued to sellers in connection with land purchase contracts
|
$
|
94,186
|
|
|
$
|
146,427
|
|
|
$
|
66,685
|
|
Change in inventory not owned
|
$
|
3,926
|
|
|
$
|
12,732
|
|
|
$
|
(3,725
|
)
|
Change in prepaid expenses and other assets, net due to adoption of ASU 2014-09
|
$
|
—
|
|
|
$
|
(32,004
|
)
|
|
$
|
—
|
|
Change in property and equipment, net due to adoption of ASU 2014-09
|
$
|
—
|
|
|
$
|
32,004
|
|
|
$
|
—
|
|
Change in operating lease right of use assets due to adoption of ASU 2016-02
|
$
|
27,384
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in operating lease right of use liabilities due to adoption of ASU 2016-02
|
$
|
30,331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Issuance of common stock in connection with business acquisition
|
$
|
—
|
|
|
$
|
158,704
|
|
|
$
|
—
|
|
Net non-cash distributions from unconsolidated entities
|
$
|
—
|
|
|
$
|
29,510
|
|
|
$
|
—
|
|
Years Ending December 31,
|
Lease
Payments
|
||
2020
|
$
|
10,018
|
|
2021
|
8,868
|
|
|
2022
|
7,891
|
|
|
2023
|
7,323
|
|
|
2024
|
5,953
|
|
|
Thereafter
|
9,906
|
|
|
Total lease payments
|
$
|
49,959
|
|
Less: Interest
|
$
|
7,642
|
|
Present value of lease liabilities
|
$
|
42,317
|
|
|
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Prepaid expenses
|
$
|
48,674
|
|
|
$
|
69,917
|
|
Other assets
|
32,812
|
|
|
28,308
|
|
||
Build-to-rent assets
|
4,029
|
|
|
—
|
|
||
Total prepaid expenses and other assets, net
|
$
|
85,515
|
|
|
$
|
98,225
|
|
•
|
Revenue from closings of residential real estate is recognized when closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.
|
•
|
Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.
|
(Dollars in thousands)
|
AV Homes
|
||
Acquisition Date
|
October 2, 2018
|
||
Assets acquired
|
|
||
Real estate inventory
|
$
|
782,424
|
|
Prepaid expenses and other assets(1)
|
107,004
|
|
|
Deferred tax assets, net
|
69,456
|
|
|
Property and equipment
|
50,996
|
|
|
Goodwill(2)
|
83,230
|
|
|
Total assets
|
$
|
1,093,110
|
|
|
|
||
Less liabilities assumed
|
|
||
Accrued expenses and other liabilities
|
$
|
94,308
|
|
Customer deposits
|
14,130
|
|
|
Estimated development liability(3)
|
37,230
|
|
|
Senior notes, net
|
412,520
|
|
|
Net assets acquired
|
$
|
534,922
|
|
|
As Adjusted for the Year Ended December 31,
|
||||||
(Dollars in thousands except per share data)
|
2018
|
|
2017
|
||||
Pro forma total revenues
|
$
|
4,780,138
|
|
|
$
|
4,728,543
|
|
|
|
|
|
||||
Pro forma net income
|
$
|
231,270
|
|
|
$
|
134,694
|
|
Pro forma net income attributable to non-controlling interests — joint ventures
|
(533
|
)
|
|
(430
|
)
|
||
Pro forma net income attributable to non-controlling interest - Former Principal Equityholders
|
(3,713
|
)
|
|
(60,642
|
)
|
||
Pro forma net income available to TMHC - Basic
|
$
|
227,024
|
|
|
$
|
73,622
|
|
Pro forma net income attributable to non-controlling interest - Former Principal Equityholders
|
3,713
|
|
|
60,642
|
|
||
Pro forma loss fully attributable to public holding company
|
540
|
|
|
6,681
|
|
||
Pro forma net income - Diluted
|
$
|
231,277
|
|
|
$
|
140,945
|
|
|
|
|
|
||||
Pro forma weighted average shares - Basic
|
118,593
|
|
|
70,285
|
|
||
Pro forma weighted average shares - Diluted
|
121,969
|
|
|
129,139
|
|
||
|
|
|
|
||||
Pro forma earnings per share - Basic
|
$
|
1.91
|
|
|
$
|
1.05
|
|
Pro forma earnings per share - Diluted
|
$
|
1.90
|
|
|
$
|
1.05
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income available to TMHC — basic(1)
|
$
|
254,652
|
|
|
$
|
206,364
|
|
|
$
|
91,220
|
|
Net income attributable to non-controlling interest - Former Principal Equityholders
|
—
|
|
|
3,583
|
|
|
85,000
|
|
|||
Loss fully attributable to public holding company
|
—
|
|
|
540
|
|
|
6,681
|
|
|||
Net income — diluted
|
$
|
254,652
|
|
|
$
|
210,487
|
|
|
$
|
182,901
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares — basic
|
106,997
|
|
|
111,743
|
|
|
62,061
|
|
|||
Weighted average shares — non-controlling interest (2)
|
—
|
|
|
1,935
|
|
|
57,556
|
|
|||
Restricted stock units
|
983
|
|
|
1,117
|
|
|
950
|
|
|||
Stock options
|
309
|
|
|
324
|
|
|
348
|
|
|||
Weighted average shares — diluted
|
108,289
|
|
|
115,119
|
|
|
120,915
|
|
|||
Earnings per common share — basic:
|
|
|
|
|
|
||||||
Net income available to Taylor Morrison Home Corporation
|
$
|
2.38
|
|
|
$
|
1.85
|
|
|
$
|
1.47
|
|
Earnings per common share — diluted:
|
|
|
|
|
|
||||||
Net income available to Taylor Morrison Home Corporation
|
$
|
2.35
|
|
|
$
|
1.83
|
|
|
$
|
1.47
|
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Real estate developed or under development
|
$
|
2,805,506
|
|
|
$
|
2,833,875
|
|
Real estate held for development or held for sale (1)
|
146,471
|
|
|
61,415
|
|
||
Operating communities (2)
|
899,789
|
|
|
973,985
|
|
||
Capitalized interest
|
115,593
|
|
|
96,031
|
|
||
Total owned inventory
|
3,967,359
|
|
|
3,965,306
|
|
||
Real estate not owned under option contracts
|
19,185
|
|
|
15,259
|
|
||
Total real estate inventory
|
$
|
3,986,544
|
|
|
$
|
3,980,565
|
|
|
As of December 31,
|
||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||||||||
|
Owned Lots
|
|
Book Value of Land and Development
|
|
Owned Lots
|
|
Book Value of Land and Development
|
||||||
Raw
|
13,804
|
|
|
$
|
477,997
|
|
|
9,653
|
|
|
$
|
461,387
|
|
Partially developed
|
13,298
|
|
|
914,689
|
|
|
12,036
|
|
|
756,376
|
|
||
Finished
|
15,504
|
|
|
1,559,291
|
|
|
21,975
|
|
|
1,677,527
|
|
||
Total
|
42,606
|
|
|
$
|
2,951,977
|
|
|
43,664
|
|
|
$
|
2,895,290
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest capitalized — beginning of period
|
$
|
96,031
|
|
|
$
|
90,496
|
|
|
$
|
102,642
|
|
Interest incurred
|
113,301
|
|
|
87,957
|
|
|
82,713
|
|
|||
Interest amortized to cost of home closings
|
(93,739
|
)
|
|
(82,422
|
)
|
|
(94,859
|
)
|
|||
Interest capitalized — end of period
|
$
|
115,593
|
|
|
$
|
96,031
|
|
|
$
|
90,496
|
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Real estate inventory
|
$
|
367,225
|
|
|
$
|
508,795
|
|
Other assets
|
132,812
|
|
|
125,436
|
|
||
Total assets
|
$
|
500,037
|
|
|
$
|
634,231
|
|
Liabilities and owners’ equity:
|
|
|
|
||||
Debt
|
$
|
178,686
|
|
|
$
|
176,564
|
|
Other liabilities
|
20,490
|
|
|
16,061
|
|
||
Total liabilities
|
$
|
199,176
|
|
|
$
|
192,625
|
|
Owners’ equity:
|
|
|
|
||||
TMHC
|
128,759
|
|
|
140,541
|
|
||
Others
|
172,102
|
|
|
301,075
|
|
||
Total owners’ equity
|
300,861
|
|
|
441,616
|
|
||
Total liabilities and owners’ equity
|
$
|
500,037
|
|
|
$
|
634,241
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
$
|
277,263
|
|
|
$
|
381,274
|
|
|
$
|
330,099
|
|
Costs and expenses
|
(242,044
|
)
|
|
(328,565
|
)
|
|
(296,838
|
)
|
|||
Income of unconsolidated entities
|
$
|
35,219
|
|
|
$
|
52,709
|
|
|
$
|
33,261
|
|
TMHC's share in income of unconsolidated entities
|
$
|
9,509
|
|
|
$
|
13,332
|
|
|
$
|
8,846
|
|
Distributions from unconsolidated entities
|
$
|
34,057
|
|
|
$
|
68,847
|
|
|
$
|
11,048
|
|
|
As of December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Real estate development costs to complete
|
$
|
20,598
|
|
|
$
|
16,591
|
|
Compensation and employee benefits
|
95,585
|
|
|
73,955
|
|
||
Self-insurance and warranty reserves
|
120,048
|
|
|
93,790
|
|
||
Interest payable
|
23,178
|
|
|
21,385
|
|
||
Property and sales taxes payable
|
12,537
|
|
|
14,861
|
|
||
Other accruals
|
53,422
|
|
|
46,104
|
|
||
Total accrued expenses and other liabilities
|
$
|
325,368
|
|
|
$
|
266,686
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Reserve — beginning of period
|
$
|
93,790
|
|
|
$
|
51,010
|
|
|
$
|
50,550
|
|
Additions to reserves
|
44,093
|
|
|
51,674
|
|
|
27,561
|
|
|||
Costs and claims incurred
|
(67,554
|
)
|
|
(42,433
|
)
|
|
(25,698
|
)
|
|||
Change in estimates to pre-existing reserves (1)
|
49,719
|
|
|
33,539
|
|
|
(1,403
|
)
|
|||
Reserve — end of period
|
$
|
120,048
|
|
|
$
|
93,790
|
|
|
$
|
51,010
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(Dollars in thousands)
|
Principal
|
|
Unamortized Debt Issuance Costs
|
|
Carrying Value
|
|
Principal
|
|
Unamortized Debt Issuance (Costs) / Premium
|
|
Carrying Value
|
||||||||||||
5.25% Senior Notes due 2021
|
—
|
|
|
—
|
|
|
—
|
|
|
550,000
|
|
|
(2,695
|
)
|
|
547,305
|
|
||||||
6.625% Senior Notes due 2022
|
—
|
|
|
—
|
|
|
—
|
|
|
400,000
|
|
|
11,656
|
|
|
411,656
|
|
||||||
5.875% Senior Notes due 2023
|
350,000
|
|
|
(1,867
|
)
|
|
348,133
|
|
|
350,000
|
|
|
(2,434
|
)
|
|
347,566
|
|
||||||
5.625% Senior Notes due 2024
|
350,000
|
|
|
(2,244
|
)
|
|
347,756
|
|
|
350,000
|
|
|
(2,781
|
)
|
|
347,219
|
|
||||||
5.875% Senior Notes due 2027
|
500,000
|
|
|
(5,808
|
)
|
|
494,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
5.75% Senior Notes due 2028
|
$
|
450,000
|
|
|
(5,073
|
)
|
|
444,927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Senior Notes subtotal
|
1,650,000
|
|
|
(14,992
|
)
|
|
1,635,008
|
|
|
1,650,000
|
|
|
3,746
|
|
|
1,653,746
|
|
||||||
Loans payable and other borrowings
|
182,531
|
|
|
—
|
|
|
182,531
|
|
|
225,497
|
|
|
—
|
|
|
225,497
|
|
||||||
Revolving Credit Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
364-Day Credit Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
200,000
|
|
|
—
|
|
|
200,000
|
|
||||||
Mortgage warehouse borrowings
|
123,233
|
|
|
—
|
|
|
123,233
|
|
|
130,353
|
|
|
—
|
|
|
130,353
|
|
||||||
Total debt
|
$
|
1,955,764
|
|
|
$
|
(14,992
|
)
|
|
$
|
1,940,772
|
|
|
$
|
2,205,850
|
|
|
$
|
3,746
|
|
|
$
|
2,209,596
|
|
(Dollars in thousands)
|
December 31, 2019
|
||||||||||||
Facility
|
Amount
Drawn
|
|
Facility
Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
$
|
25,074
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
$
|
38,481
|
|
|
$
|
85,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse C
|
$
|
59,678
|
|
|
$
|
100,000
|
|
|
LIBOR + 1.70%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
Total
|
$
|
123,233
|
|
|
$
|
230,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
December 31, 2018
|
||||||||||||
Facility
|
Amount
Drawn
|
|
Facility
Amount
|
|
Interest Rate
|
|
Expiration Date
|
|
Collateral (1)
|
||||
Warehouse A
|
$
|
29,484
|
|
|
$
|
45,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
Warehouse B
|
38,164
|
|
|
85,000
|
|
|
LIBOR + 1.75%
|
|
On Demand
|
|
Mortgage Loans
|
||
Warehouse C
|
62,705
|
|
|
100,000
|
|
|
LIBOR + 1.95%
|
|
On Demand
|
|
Mortgage Loans and Restricted Cash
|
||
Total
|
$
|
130,353
|
|
|
$
|
230,000
|
|
|
|
|
|
|
|
(1)
|
The mortgage warehouse borrowings outstanding as of December 31, 2019 and 2018, are collateralized by $190.9 million and $181.9 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $1.6 million, of cash for both periods, which is restricted cash on our balance sheet.
|
(Dollars in thousands)
|
Year Ended December 31,
|
||
2020
|
$
|
182,870
|
|
2021
|
55,275
|
|
|
2022
|
11,763
|
|
|
2023
|
374,477
|
|
|
2024
|
381,379
|
|
|
Thereafter
|
950,000
|
|
|
Total debt
|
$
|
1,955,764
|
|
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
|||||||||||||
(Dollars in thousands)
|
Level in
Fair Value
Hierarchy
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|||||||||
Description:
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage loans held for sale
|
2
|
|
|
$
|
190,880
|
|
|
$
|
190,880
|
|
|
$
|
181,897
|
|
|
$
|
181,897
|
|
Derivative assets, net
|
2
|
|
|
1,932
|
|
|
1,932
|
|
|
1,099
|
|
|
1,099
|
|
||||
Mortgage borrowings
|
2
|
|
|
123,233
|
|
|
123,233
|
|
|
130,353
|
|
|
130,353
|
|
||||
Loans payable and other borrowings
|
2
|
|
|
182,531
|
|
|
182,531
|
|
|
225,497
|
|
|
225,497
|
|
||||
5.25% Senior Notes due 2021 (1)
|
2
|
|
|
—
|
|
|
—
|
|
|
547,304
|
|
|
544,500
|
|
||||
6.625% Senior Notes due 2022(1)
|
2
|
|
|
—
|
|
|
—
|
|
|
411,656
|
|
|
400,520
|
|
||||
5.875% Senior Notes due 2023 (1)
|
2
|
|
|
348,133
|
|
|
378,669
|
|
|
347,566
|
|
|
337,750
|
|
||||
5.625% Senior Notes due 2024 (1)
|
2
|
|
|
347,756
|
|
|
379,453
|
|
|
347,219
|
|
|
332,500
|
|
||||
5.875% Senior Notes due 2027 (1)
|
2
|
|
|
494,192
|
|
|
548,870
|
|
|
—
|
|
|
—
|
|
||||
5.75% Senior Notes due 2028 (1)
|
2
|
|
|
444,927
|
|
|
491,913
|
|
|
—
|
|
|
—
|
|
||||
Revolving Credit Facility (2)
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
364-Day Credit Agreement(3)
|
2
|
|
|
—
|
|
|
—
|
|
|
200,000
|
|
|
200,000
|
|
(Dollars in thousands)
|
|
|
For the Year Ended December 31,
|
|||||
Description:
|
Level in
Fair Value Hierarchy |
|
2019
|
2018
|
||||
Inventories
|
3
|
|
$
|
16,509
|
|
$
|
5,545
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
$
|
67,358
|
|
|
$
|
37,731
|
|
|
$
|
173,541
|
|
Foreign
|
—
|
|
|
25,305
|
|
|
5,465
|
|
|||
Total income tax provision
|
$
|
67,358
|
|
|
$
|
63,036
|
|
|
$
|
179,006
|
|
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
54,372
|
|
|
$
|
(10,568
|
)
|
|
$
|
73,974
|
|
State
|
9,839
|
|
|
4,104
|
|
|
9,379
|
|
|||
Foreign
|
—
|
|
|
25,482
|
|
|
7,169
|
|
|||
Current tax provision
|
$
|
64,211
|
|
|
$
|
19,018
|
|
|
$
|
90,522
|
|
Deferred:
|
|
|
|
|
|
||||||
Federal
|
$
|
(1,811
|
)
|
|
$
|
40,037
|
|
|
$
|
95,243
|
|
State
|
4,958
|
|
|
4,158
|
|
|
(5,055
|
)
|
|||
Foreign
|
—
|
|
|
(177
|
)
|
|
(1,704
|
)
|
|||
Deferred tax provision
|
$
|
3,147
|
|
|
$
|
44,018
|
|
|
$
|
88,484
|
|
Total income tax provision
|
$
|
67,358
|
|
|
$
|
63,036
|
|
|
$
|
179,006
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
$
|
322,272
|
|
|
$
|
271,017
|
|
|
$
|
323,359
|
|
Foreign
|
—
|
|
|
2,499
|
|
|
32,297
|
|
|||
Income before income taxes
|
$
|
322,272
|
|
|
$
|
273,516
|
|
|
$
|
355,656
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Tax at federal statutory rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
State income taxes (net of federal benefit)
|
3.9
|
|
|
4.4
|
|
|
3.2
|
|
Foreign income taxed at a different rate
|
—
|
|
|
0.5
|
|
|
(0.8
|
)
|
Domestic manufacturing deduction
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
Uncertain tax positions
|
(0.2
|
)
|
|
(2.9
|
)
|
|
1.1
|
|
State net operating loss adjustment
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
Deferred tax adjustments
|
0.2
|
|
|
—
|
|
|
(1.1
|
)
|
Energy tax credits
|
(4.6
|
)
|
|
(1.7
|
)
|
|
(0.9
|
)
|
Subpart F dividend
|
—
|
|
|
1.7
|
|
|
—
|
|
Corporate reorganization/Canada unwind
|
—
|
|
|
9.3
|
|
|
—
|
|
Foreign tax credit
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
Disallowed compensation expense
|
0.3
|
|
|
(0.1
|
)
|
|
0.2
|
|
Tax reform
|
—
|
|
|
(6.9
|
)
|
|
17.1
|
|
Other
|
0.3
|
|
|
0.1
|
|
|
0.7
|
|
Effective Rate
|
20.9
|
%
|
|
23.0
|
%
|
|
50.3
|
%
|
|
Year Ended December 31,
|
|||||||
(Dollars in thousands)
|
2019
|
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Real estate inventory
|
$
|
22,232
|
|
|
|
$
|
24,804
|
|
Accruals and reserves
|
39,029
|
|
|
|
28,556
|
|
||
Other
|
15,827
|
|
|
|
20,612
|
|
||
Net operating losses (1)
|
69,815
|
|
(1)
|
|
77,558
|
|
||
Capital loss carryforward
|
35,340
|
|
|
|
35,340
|
|
||
Total deferred tax assets
|
$
|
182,243
|
|
|
|
$
|
186,870
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Real estate inventory, intangibles, other
|
(6,437
|
)
|
|
|
(6,454
|
)
|
||
Foreign exchange
|
—
|
|
|
|
—
|
|
||
Valuation allowance
|
(35,340
|
)
|
|
|
(35,340
|
)
|
||
Total net deferred tax assets
|
$
|
140,466
|
|
|
|
$
|
145,076
|
|
|
Year Ending December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning of the period
|
$
|
7,391
|
|
|
$
|
12,936
|
|
|
$
|
7,773
|
|
Increases of current year items
|
—
|
|
|
—
|
|
|
—
|
|
|||
Increases from current year acquisitions
|
—
|
|
|
4,216
|
|
|
—
|
|
|||
Increases of prior year items
|
15
|
|
|
475
|
|
|
5,163
|
|
|||
Settlement with tax authorities
|
(977
|
)
|
|
(9,818
|
)
|
|
—
|
|
|||
Decreased for tax positions of prior years
|
(76
|
)
|
|
—
|
|
|
—
|
|
|||
Decreased due to statute of limitations
|
(195
|
)
|
|
(418
|
)
|
|
—
|
|
|||
End of the period
|
$
|
6,158
|
|
|
$
|
7,391
|
|
|
$
|
12,936
|
|
|
Year Ended December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Amount available for repurchase — beginning of period
|
$
|
57,437
|
|
|
$
|
95,902
|
|
Additional amount authorized for repurchase
|
100,000
|
|
|
100,000
|
|
||
Amount repurchased
|
(157,437
|
)
|
|
(138,465
|
)
|
||
Amount available for repurchase — end of period
|
$
|
—
|
|
|
$
|
57,437
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Year Ended December 31,
|
||||||||||
2019
|
|
2018
|
|
2017
|
|||||||
Restricted stock units (RSUs) (1) (2)
|
$
|
10,989
|
|
|
$
|
17,130
|
|
|
$
|
6,487
|
|
Stock options
|
3,774
|
|
|
3,994
|
|
|
4,504
|
|
|||
New TMM Units (3)
|
—
|
|
|
—
|
|
|
596
|
|
|||
Total stock compensation
|
$
|
14,763
|
|
|
$
|
21,124
|
|
|
$
|
11,587
|
|
(1)
|
Includes compensation expense related to time-based restricted stock units and performance-based restricted stock units.
|
(2)
|
Stock-based compensation expense in 2018 includes approximately $6.5 million of expense recognized for the acceleration of equity awards as part of the acquisition of AV Homes.
|
(3)
|
As of December 31, 2017, all new TMM units were vested, and there was no further expense associated with them.
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Number of
Options
|
|
Weighted
Average
Exercise/Grant
Price
|
|
Number of
Options
|
|
Weighted
Average
Exercise/Grant
Price
|
|
Number of
Options
|
|
Weighted
Average
Exercise/Grant
Price
|
|||||||||
Outstanding, beginning
|
3,239,995
|
|
|
$
|
18.87
|
|
|
2,854,213
|
|
|
$
|
17.50
|
|
|
2,431,347
|
|
|
$
|
17.09
|
|
Granted
|
997,924
|
|
|
18.15
|
|
|
726,473
|
|
|
23.86
|
|
|
792,054
|
|
|
19.06
|
|
|||
Exercised
|
(765,781
|
)
|
|
17.29
|
|
|
(118,992
|
)
|
|
15.85
|
|
|
(288,808
|
)
|
|
18.13
|
|
|||
Cancelled/forfeited
|
(132,894
|
)
|
|
19.86
|
|
|
(221,699
|
)
|
|
18.71
|
|
|
(80,380
|
)
|
|
18.64
|
|
|||
Balance, ending
|
3,339,244
|
|
|
$
|
18.98
|
|
|
3,239,995
|
|
|
$
|
18.87
|
|
|
2,854,213
|
|
|
$
|
17.50
|
|
Options exercisable, at December 31
|
1,400,974
|
|
|
$
|
19.09
|
|
|
1,537,977
|
|
|
$
|
18.80
|
|
|
906,583
|
|
|
$
|
19.62
|
|
|
As of December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Unamortized value of unvested stock options (net of estimated forfeitures)
|
$
|
6,759
|
|
|
$
|
6,470
|
|
|
$
|
6,749
|
|
Weighted-average period (in years) that expense is expected to be recognized
|
2.5
|
|
|
2.5
|
|
|
2.4
|
|
|||
Weighted-average remaining contractual life (in years) for options outstanding
|
6.9
|
|
|
6.9
|
|
|
7.5
|
|
|||
Weighted-average remaining contractual life (in years) for options exercisable
|
5.1
|
|
|
5.6
|
|
|
6.1
|
|
|
Year Ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Expected dividend yield
|
—%
|
|
—%
|
|
—%
|
Expected volatility
|
19.33%
|
|
21.31%
|
|
24.37%
|
Risk-free interest rate
|
2.49%
|
|
2.68%
|
|
2.12%
|
Expected term (in years)
|
6.25
|
|
6.25
|
|
6.25
|
Weighted average fair value of options granted during the period
|
$4.69
|
|
$6.68
|
|
$5.56
|
|
As of December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Aggregate intrinsic value of options outstanding
|
$
|
10,935
|
|
|
$
|
3,432
|
|
|
$
|
19,891
|
|
Aggregate intrinsic value of options exercisable
|
$
|
4,283
|
|
|
$
|
1,540
|
|
|
$
|
4,400
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Balance, beginning
|
1,155,723
|
|
|
1,190,740
|
|
|
824,217
|
|
Granted
|
416,874
|
|
|
338,472
|
|
|
392,404
|
|
Vested
|
(511,984
|
)
|
|
(61,343
|
)
|
|
—
|
|
Forfeited
|
(61,974
|
)
|
|
(312,146
|
)
|
|
(25,881
|
)
|
Balance, ending
|
998,639
|
|
|
1,155,723
|
|
|
1,190,740
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands):
|
2019
|
|
2018
|
|
2017
|
||||||
PRSU expense recognized
|
$
|
5,866
|
|
|
$
|
5,779
|
|
|
$
|
3,257
|
|
Unamortized value of PRSUs
|
$
|
7,912
|
|
|
$
|
7,501
|
|
|
$
|
6,756
|
|
Weighted-average period expense is expected to be recognized (in years)
|
1.8
|
|
|
1.8
|
|
|
1.8
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands except per share data):
|
Number of
RSUs
|
|
Weighted
Average
Grant
Date Fair
Value
|
|
Number of
RSUs
|
|
Weighted
Average
Grant
Date Fair
Value
|
|
Number of
RSUs
|
|
Weighted
Average
Grant
Date Fair
Value
|
|||||||||
Outstanding, beginning
|
769,641
|
|
|
$
|
16.73
|
|
|
698,819
|
|
|
$
|
15.65
|
|
|
534,484
|
|
|
$
|
14.01
|
|
Granted
|
299,481
|
|
|
18.42
|
|
|
333,397
|
|
|
20.35
|
|
|
257,182
|
|
|
19.48
|
|
|||
Vested
|
(320,701
|
)
|
|
15.25
|
|
|
(181,904
|
)
|
|
13.01
|
|
|
(75,315
|
)
|
|
17.43
|
|
|||
Forfeited
|
(38,667
|
)
|
|
16.91
|
|
|
(80,671
|
)
|
|
16.90
|
|
|
(17,532
|
)
|
|
14.10
|
|
|||
Balance, ending
|
709,754
|
|
|
$
|
18.11
|
|
|
769,641
|
|
|
$
|
16.73
|
|
|
698,819
|
|
|
$
|
15.65
|
|
|
Year Ended December 31,
|
||||||||||
(Dollars in thousands):
|
2019
|
|
2018
|
|
2017
|
||||||
RSU expense recognized
|
$
|
5,123
|
|
|
$
|
4,854
|
|
|
$
|
3,148
|
|
Unamortized value of RSUs
|
$
|
6,176
|
|
|
$
|
6,435
|
|
|
$
|
6,261
|
|
Weighted-average period expense is expected to be recognized (in years)
|
1.7
|
|
|
1.9
|
|
|
2.5
|
|
|
Year Ended December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Number of
Awards
|
|
Weighted
Average Grant
Date Fair Value
|
|
Number of
Awards
|
|
Weighted
Average Grant
Date Fair Value
|
||||||
Outstanding, beginning
|
883,921
|
|
|
$
|
5.24
|
|
|
1,146,357
|
|
|
$
|
5.58
|
|
Exchanges (1)
|
(883,921
|
)
|
|
5.24
|
|
|
(260,389
|
)
|
|
6.72
|
|
||
Forfeited (2)
|
—
|
|
|
—
|
|
|
(2,047
|
)
|
|
8.52
|
|
||
Balance, ending
|
—
|
|
|
$
|
—
|
|
|
883,921
|
|
|
$
|
5.24
|
|
Unvested TMM Units included in ending balance (3)
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
(1)
|
Exchanges during the period represent the exchange of a vested New TMM Unit along with the corresponding share of Class B Common Stock for a newly issued share of Common Stock.
|
(2)
|
Awards forfeited during the period represent the unvested portion of New TMM Unit awards for employees who have terminated employment with the Company and for which the New TMM Unit and the corresponding Class B Share have been canceled.
|
(3)
|
All New TMM units vested as of December 31, 2017.
|
|
|
|
|
|
|
(Shares presented in thousands)
|
|
|
|
|||
Closing date
|
Number of shares
|
|
Net purchase price per share
|
|||
February 6, 2017
|
11,500
|
|
|
$
|
18.2875
|
|
March 27, 2017
|
10,000
|
|
|
20.7800
|
|
|
May 5, 2017
|
10,000
|
|
|
23.1200
|
|
|
June 27, 2017
|
10,000
|
|
|
23.3000
|
|
|
November 13, 2017
|
10,000
|
|
|
22.9500
|
|
|
January 8, 2018
|
11,000
|
|
|
26.0500
|
|
|
January 17, 2018 (1)
|
19,207
|
|
|
27.1400
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
(Dollars in thousands)
|
Total Post-
Retirement
Benefits
Adjustments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Non-controlling
Interest in
Principal
Equityholders
|
|
Total
|
||||||||
Balance, beginning of period
|
$
|
2,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,001
|
|
Other comprehensive loss before reclassifications
|
(1,117
|
)
|
|
—
|
|
|
—
|
|
|
(1,117
|
)
|
||||
Other comprehensive loss net of tax
|
$
|
(1,117
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,117
|
)
|
Balance, end of period
|
$
|
884
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
884
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
(Dollars in thousands)
|
Total Post-
Retirement
Benefits
Adjustments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Non-controlling
Interest in
Principal
Equityholders
|
|
Total
|
||||||||
Balance, beginning of period
|
$
|
2,082
|
|
|
$
|
(45,205
|
)
|
|
$
|
25,155
|
|
|
$
|
(17,968
|
)
|
Other comprehensive loss before reclassifications
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
||||
Foreign currency translation(1)
|
|
|
|
20,050
|
|
|
|
|
|
20,050
|
|
||||
Other comprehensive loss net of tax
|
$
|
(81
|
)
|
|
$
|
20,050
|
|
|
$
|
—
|
|
|
$
|
19,969
|
|
Gross amounts reclassified within accumulated other comprehensive income
|
—
|
|
|
25,155
|
|
|
(25,155
|
)
|
|
—
|
|
||||
Balance, end of period
|
$
|
2,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,001
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
Total Post-
Retirement
Benefits
Adjustments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Non-controlling
Interest in
Principal
Equityholders
|
|
Total
|
||||||||
Balance, beginning of period
|
$
|
2,061
|
|
|
$
|
(79,927
|
)
|
|
$
|
59,877
|
|
|
$
|
(17,989
|
)
|
Other comprehensive income before reclassifications
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||
Other comprehensive income net of tax
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
Gross amounts reclassified within accumulated other comprehensive income
|
—
|
|
|
34,722
|
|
|
(34,722
|
)
|
|
—
|
|
||||
Balance, end of period
|
$
|
2,082
|
|
|
$
|
(45,205
|
)
|
|
$
|
25,155
|
|
|
$
|
(17,968
|
)
|
East
|
|
Atlanta, Charlotte, Chicago, Jacksonville, Orlando, Raleigh, Southwest Florida, and Tampa
|
Central
|
|
Austin, Dallas, Denver and Houston
|
West
|
|
Bay Area, Phoenix, Sacramento, and Southern California
|
Financial Services
|
|
Taylor Morrison Home Funding, Inspired Title Services and Taylor Morrison Insurance Services
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
$
|
1,950,742
|
|
|
$
|
1,334,389
|
|
|
$
|
1,384,113
|
|
|
$
|
92,815
|
|
|
$
|
—
|
|
|
$
|
4,762,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
$
|
307,893
|
|
|
$
|
187,957
|
|
|
$
|
286,511
|
|
|
$
|
41,729
|
|
|
$
|
—
|
|
|
$
|
824,090
|
|
Selling, general and administrative expense
|
(168,928
|
)
|
|
(121,962
|
)
|
|
(94,609
|
)
|
|
—
|
|
|
(104,772
|
)
|
|
(490,271
|
)
|
||||||
Equity in income of unconsolidated entities
|
—
|
|
|
(215
|
)
|
|
3,562
|
|
|
6,021
|
|
|
141
|
|
|
9,509
|
|
||||||
Interest and other expense, net(1)
|
(5,545
|
)
|
|
(1,024
|
)
|
|
(3,273
|
)
|
|
—
|
|
|
(11,214
|
)
|
|
(21,056
|
)
|
||||||
Income before income taxes
|
$
|
133,420
|
|
|
$
|
64,756
|
|
|
$
|
192,191
|
|
|
$
|
47,750
|
|
|
$
|
(115,845
|
)
|
|
$
|
322,272
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
$
|
1,666,423
|
|
|
$
|
1,139,622
|
|
|
$
|
1,353,590
|
|
|
$
|
67,758
|
|
|
$
|
—
|
|
|
$
|
4,227,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
$
|
281,306
|
|
|
$
|
161,323
|
|
|
$
|
269,276
|
|
|
$
|
26,289
|
|
|
$
|
(1
|
)
|
|
$
|
738,193
|
|
Selling, general and administrative expense
|
(138,720
|
)
|
|
(104,295
|
)
|
|
(82,940
|
)
|
|
—
|
|
|
(90,988
|
)
|
|
(416,943
|
)
|
||||||
Equity in income of unconsolidated entities
|
464
|
|
|
876
|
|
|
6,450
|
|
|
5,316
|
|
|
226
|
|
|
13,332
|
|
||||||
Interest and other expense, net
|
(5,615
|
)
|
|
(3,259
|
)
|
|
(526
|
)
|
|
—
|
|
|
(51,666
|
)
|
|
(61,066
|
)
|
||||||
Income before income taxes
|
$
|
137,435
|
|
|
$
|
54,645
|
|
|
$
|
192,260
|
|
|
$
|
31,605
|
|
|
$
|
(142,429
|
)
|
|
$
|
273,516
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
Total
|
||||||||||||
Total revenues
|
$
|
1,383,864
|
|
|
$
|
1,112,984
|
|
|
$
|
1,319,306
|
|
|
$
|
69,136
|
|
|
$
|
—
|
|
|
$
|
3,885,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross margin
|
$
|
284,722
|
|
|
$
|
206,386
|
|
|
$
|
220,337
|
|
|
$
|
27,484
|
|
|
$
|
—
|
|
|
$
|
738,929
|
|
Selling, general and administrative expense
|
(122,218
|
)
|
|
(105,945
|
)
|
|
(79,223
|
)
|
|
—
|
|
|
(83,054
|
)
|
|
(390,440
|
)
|
||||||
Equity in income of unconsolidated entities
|
213
|
|
|
1,246
|
|
|
1,422
|
|
|
5,965
|
|
|
—
|
|
|
8,846
|
|
||||||
Interest and other (expense)/income, net
|
(314
|
)
|
|
360
|
|
|
(190
|
)
|
|
—
|
|
|
(1,535
|
)
|
|
(1,679
|
)
|
||||||
Income before income taxes
|
$
|
162,403
|
|
|
$
|
102,047
|
|
|
$
|
142,346
|
|
|
$
|
33,449
|
|
|
$
|
(84,589
|
)
|
|
$
|
355,656
|
|
|
As of December 31, 2019
|
|||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
$
|
1,841,904
|
|
|
$
|
965,039
|
|
|
$
|
1,219,411
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
4,026,354
|
|
Investments in unconsolidated entities
|
—
|
|
|
37,506
|
|
|
86,996
|
|
|
4,015
|
|
|
242
|
|
|
|
128,759
|
|
||||||
Other assets
|
165,777
|
|
|
121,724
|
|
|
60,060
|
|
|
257,760
|
|
|
485,252
|
|
|
|
1,090,573
|
|
||||||
Total assets
|
$
|
2,007,681
|
|
|
$
|
1,124,269
|
|
|
$
|
1,366,467
|
|
|
$
|
261,775
|
|
|
$
|
485,494
|
|
|
|
$
|
5,245,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
As of December 31, 2018
|
|||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
$
|
1,862,756
|
|
|
$
|
1,011,659
|
|
|
$
|
1,164,079
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
4,038,494
|
|
Investments in unconsolidated entities
|
—
|
|
|
35,476
|
|
|
100,693
|
|
|
4,015
|
|
|
357
|
|
|
|
140,541
|
|
||||||
Other assets
|
162,339
|
|
|
118,187
|
|
|
55,433
|
|
|
236,291
|
|
|
513,156
|
|
|
|
1,085,406
|
|
||||||
Total assets
|
$
|
2,025,095
|
|
|
$
|
1,165,322
|
|
|
$
|
1,320,205
|
|
|
$
|
240,306
|
|
|
$
|
513,513
|
|
|
|
$
|
5,264,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
As of December 31, 2017
|
|||||||||||||||||||||||
(Dollars in thousands)
|
East
|
|
Central
|
|
West
|
|
Financial Services
|
|
Corporate
and
Unallocated
|
|
|
Total
|
||||||||||||
Real estate inventory and land deposits
|
$
|
1,150,918
|
|
|
$
|
818,431
|
|
|
$
|
1,039,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
3,009,004
|
|
Investments in unconsolidated entities
|
29,316
|
|
|
32,874
|
|
|
126,559
|
|
|
3,615
|
|
|
—
|
|
|
|
192,364
|
|
||||||
Other assets
|
85,753
|
|
|
124,593
|
|
|
53,492
|
|
|
225,641
|
|
|
635,046
|
|
|
|
1,124,525
|
|
||||||
Total assets
|
$
|
1,265,987
|
|
|
$
|
975,898
|
|
|
$
|
1,219,706
|
|
|
$
|
229,256
|
|
|
$
|
635,046
|
|
|
|
$
|
4,325,893
|
|
(Dollars in thousands except per share data)
|
First
Quarter 2019 |
|
Second
Quarter 2019 |
|
Third
Quarter 2019 |
|
Fourth
Quarter 2019 |
||||||||
Total revenues
|
$
|
925,092
|
|
|
$
|
1,265,426
|
|
|
$
|
1,105,105
|
|
|
$
|
1,466,436
|
|
Gross margin
|
172,040
|
|
|
233,774
|
|
|
211,074
|
|
|
207,202
|
|
||||
Income before income taxes
|
68,072
|
|
|
110,019
|
|
|
90,421
|
|
|
53,760
|
|
||||
Net income before allocation to non-controlling interests
|
51,281
|
|
|
81,888
|
|
|
67,036
|
|
|
54,709
|
|
||||
Net income available to Taylor Morrison Home Corporation
|
51,131
|
|
|
81,851
|
|
|
67,012
|
|
|
54,658
|
|
||||
Basic earnings per share
|
$
|
0.46
|
|
|
$
|
0.77
|
|
|
$
|
0.64
|
|
|
$
|
0.52
|
|
Diluted earnings per share
|
$
|
0.46
|
|
|
$
|
0.76
|
|
|
$
|
0.63
|
|
|
$
|
0.51
|
|
(Dollars in thousands except per share data)
|
First
Quarter 2018 |
|
Second
Quarter 2018 |
|
Third
Quarter 2018 |
|
Fourth
Quarter 2018 |
||||||||
Total revenues
|
$
|
752,333
|
|
|
$
|
980,828
|
|
|
$
|
1,036,379
|
|
|
$
|
1,457,853
|
|
Gross margin
|
143,102
|
|
|
178,711
|
|
|
198,999
|
|
|
217,381
|
|
||||
Income before income taxes
|
59,238
|
|
|
79,285
|
|
|
100,865
|
|
|
34,128
|
|
||||
Net income before allocation to non-controlling interests
|
47,532
|
|
|
59,292
|
|
|
94,441
|
|
|
9,215
|
|
||||
Net income available to Taylor Morrison Home Corporation
|
44,933
|
|
|
58,678
|
|
|
93,568
|
|
|
9,055
|
|
||||
Basic earnings per share
|
$
|
0.42
|
|
|
$
|
0.53
|
|
|
$
|
0.84
|
|
|
$
|
0.08
|
|
Diluted earnings per share
|
$
|
0.41
|
|
|
$
|
0.52
|
|
|
$
|
0.83
|
|
|
$
|
0.08
|
|
|
|
|
|
As of
|
||||||||||||||
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
||||||||
IRLCs
|
|
$
|
2,099
|
|
|
$
|
86,434
|
|
|
$
|
1,838
|
|
|
$
|
75,090
|
|
MBSs
|
|
(167
|
)
|
|
158,000
|
|
|
(739
|
)
|
|
118,000
|
|
||||
Total
|
|
$
|
1,932
|
|
|
|
|
$
|
1,099
|
|
|
|
Plan Category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)
|
|
Weighted-average exercise price of outstanding options, warrants and rights (b)
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
|
|
||||
Equity compensation plans approved by security holders(1)
|
|
5,047,637
|
|
(2)
|
$
|
18.98
|
|
(3)
|
6,971,796
|
|
(4)
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
Equity compensation plans approved by security holders covers the Equity Plan. The Equity Plan is currently our only compensation plan pursuant to which our equity is awarded.
|
(2)
|
Column (a) includes 1,708,393 shares of our Common Stock underlying outstanding time-based vesting and performance-based vesting restricted stock units (“RSUs”), and outstanding deferred stock units (“DSUs”). Amount assumes achievement of the maximum level of performance in respect of RSUs that are subject to performance-based vesting conditions. Because there is no exercise price associated with RSUs and DSUs, such equity awards are not included in the weighted-average exercise price calculation in column (b).
|
(3)
|
The weighted average exercise price in column (b) relates only to outstanding stock options. The calculation of the weighted average exercise price does not include outstanding equity awards that are received for no consideration and does not include shares of Common Stock credited to the deferred compensation accounts of certain non-employee directors at fair market value in lieu of compensation at the election of such directors.
|
(4)
|
A total of 14,178,459 shares of our Common Stock have been authorized for issuance pursuant to the terms of the Equity Plan.
|
Exhibit
No.
|
|
Description
|
2.1**
|
|
|
2.2
|
|
|
2.3**
|
|
|
|
||
3.2
|
|
|
3.4
|
|
|
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
4.11
|
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
4.15
|
|
|
4.16
|
|
|
4.17
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20*
|
|
|
10.1
|
|
|
10.2†
|
|
|
10.3†
|
|
|
10.4†
|
|
|
10.5†
|
|
|
10.6†
|
|
|
10.7†
|
|
|
10.8†
|
|
10.9†
|
|
|
10.10†
|
|
|
10.11†
|
|
|
10.11(a)†
|
|
|
10.12†
|
|
|
10.13†
|
|
|
10.14†
|
|
|
10.15†
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
|
21.1*
|
|
|
23.1*
|
|
|
24.1*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1*
|
|
|
32.2*
|
|
|
101.INS
|
|
Inline XBRL Instance Document.
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
|
Cover Page Interactive Data File (embedded with the Inline XBRL document)
|
|
|
|
|
|
|
|
TAYLOR MORRISON HOME CORPORATION
|
|
|
|
|
Registrant
|
|
|
|
||
DATE: February 19, 2020
|
|
|
|
|
|
|
|
||
|
|
|
|
/s/ Sheryl D. Palmer
|
|
|
|
|
Sheryl D. Palmer
|
|
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
||
|
|
|
|
/s/ C. David Cone
|
|
|
|
|
C. David Cone
|
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
||
|
|
|
|
/s/ Joseph Terracciano
|
|
|
|
|
Joseph Terracciano
|
|
|
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
/s/ Jeffry L. Flake
|
|
Director
|
|
February 19, 2020
|
Jeffry L. Flake
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Gary H. Hunt
|
|
Director
|
|
February 19, 2020
|
Gary H. Hunt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Peter Lane
|
|
Director
|
|
February 19, 2020
|
Peter Lane
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ William H. Lyon
|
|
Director
|
|
February 19, 2020
|
William H. Lyon
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ David Merritt
|
|
Director
|
|
February 19, 2020
|
David Merritt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Anne L. Mariucci
|
|
Director
|
|
February 19, 2020
|
Anne L. Mariucci
|
|
|
|
|
|
|
|
|
|
/s/ Andrea Owen
|
|
Director
|
|
February 19, 2020
|
Andrea Owen
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Denise Warren
|
|
Director
|
|
February 19, 2020
|
Denise Warren
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Legal Entity
|
|
Jurisdiction of Organization
|
|
|||
|
Avatar Homes of Arizona, Inc.
|
|
Arizona
|
|
|||
|
AVH Carolinas, LLC
|
|
Arizona
|
|
|||
|
AVH DFW, LLC
|
|
Arizona
|
|
|||
|
AVH EM, LLC
|
|
Arizona
|
|
|||
|
AVH Mortgage, LLC
|
|
Arizona
|
|
|||
|
AV Homes of Arizona, LLC
|
|
Arizona
|
|
|||
|
AV Homes of Raleigh, LLC
|
|
Arizona
|
|
|||
|
ATPD, LLC
|
|
Arizona
|
|
|||
|
EM 646, LLC
|
|
Arizona
|
|
|||
|
JCH Construction, LLC
|
|
Arizona
|
|
|||
|
Rio Rico Properties Inc.
|
|
Arizona
|
|
|||
|
Taylor Morrison Holdings of Arizona, Inc.
|
|
Arizona
|
|
|||
|
Taylor Morrison/Arizona, Inc.
|
|
Arizona
|
|
|||
|
TM Homes of Arizona, Inc.
|
|
Arizona
|
|
|||
|
TM BTR of Phoenix, LLC
|
|
Arizona
|
|
|||
|
Taylor Morrison Holdings ULC
|
|
British Columbia
|
|
|||
|
TMM Holdings (G.P.) ULC
|
|
British Columbia
|
|
|||
|
TMM Holdings Limited Partnership
|
|
British Columbia
|
|
|||
|
Taylor Morrison of California, LLC
|
|
California
|
|
|||
|
TMM Debt Holdings, Ltd.
|
|
Cayman Islands
|
|
|||
|
Taylor Morrison of Colorado, Inc.
|
|
Colorado
|
|
|||
|
Avatar Retirement Communities, Inc.
|
|
Delaware
|
|
|||
|
AV Homes, Inc
|
|
Delaware
|
|
|||
|
Aylesbury (USA), LLC
|
|
Delaware
|
|
|||
|
Cave Butte Development Partners, LLC
|
|
Delaware
|
|
|||
|
JCH Group, LLC
|
|
Delaware
|
|
|||
|
Mattamy Home Funding, LLC
|
|
Delaware
|
|
|||
|
Marblehead Development Partners LLC
|
|
Delaware
|
|
|||
|
Pacific Point Development Partners, LLC
|
|
Delaware
|
|
|||
|
Santaluz, LLC
|
|
Delaware
|
|
|||
|
Taylor Morrison Communities, Inc.
|
|
Delaware
|
|
|||
|
Taylor Morrison Finance, Inc.
|
|
Delaware
|
|
|||
|
Taylor Morrison Holdings, Inc.
|
|
Delaware
|
|
|||
|
Taylor Morrison Pacific Point Holdings, LLC
|
|
Delaware
|
|
|||
|
Taylor Morrison Services Inc.
|
|
Delaware
|
|
|||
|
Taylor Morrison, Inc.
|
|
Delaware
|
|
|||
|
Taylor Morrison Marblehead Holdings, LLC
|
|
Delaware
|
|
|||
|
Taylor Morrison Tramonto Holdings, LLC
|
|
Delaware
|
|
|||
|
Taylor Morrison Insurance Services, Inc.
|
|
Delaware
|
|
|||
|
TM California Services, Inc.
|
|
Delaware
|
|
|||
|
Tramonto Development Partners, LLC
|
|
Delaware
|
|
|||
|
Tramonto Land Holdings, LLC
|
|
Delaware
|
|
|||
|
Taylor Morrison BTR, Inc.
|
|
Delaware
|
|
|||
|
Avatar Properties Inc.
|
|
Florida
|
|
|||
|
AV Homes Legacy Developers, Inc.
|
|
Florida
|
|
|||
|
AVH North Florida, LLC
|
|
Florida
|
|
|
AVH Realty, LLC
|
|
Florida
|
|
|||
|
Inspired Title Services, LLC
|
|
Florida
|
|
|||
|
Mortgage Funding Direct Ventures, LLC
|
|
Florida
|
|
|||
|
Neal Communities Funding, LLC
|
|
Florida
|
|
|||
|
Royal Oak Homes, LLC
|
|
Florida
|
|
|||
|
Solivita at Poinciana Golf Club, Inc.
|
|
Florida
|
|
|||
|
Solivita at Poinciana, Inc.
|
|
Florida
|
|
|||
|
Solivita at Poinciana Recreation, Inc.
|
|
Florida
|
|
|||
|
Taylor Morrison Esplanade Naples, LLC
|
|
Florida
|
|
|||
|
Taylor Morrison Home Funding, LLC
|
|
Florida
|
|
|||
|
Taylor Morrison of Florida, Inc.
|
|
Florida
|
|
|||
|
Taylor Morrison Realty of Florida, Inc.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at Artisan Lakes, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at Herons Glen, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at Mirasol, Ltd.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at Portico, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at St. Johns Forest, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Communities at Vasari, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Homes - Central Florida Division, L.L.C.
|
|
Florida
|
|
|||
|
Taylor Woodrow Homes - Southwest Florida Division Inc.
|
|
Florida
|
|
|||
|
TM Oyster Harbor, LLC
|
|
Florida
|
|
|||
|
TW Acquisitions, Inc.
|
|
Florida
|
|
|||
|
Vitalia at Tradition, LLC
|
|
Florida
|
|
|||
|
Bonterra Builders, LLC
|
|
North Carolina
|
|
|||
TWC/Mirasol, Inc.
|
|
Florida
|
|
|
|||
Taylor Morrison of Georgia, LLC
|
|
Georgia
|
|
|
|||
Taylor Morrison Realty of Georgia, Inc.
|
|
Georgia
|
|
|
|||
Taylor Morrison of Illinois, Inc.
|
|
Illinois
|
|
|
|||
Taylor Morrison of Nevada, LLC
|
|
Nevada
|
|
|
|||
Taylor Morrison of Carolinas, Inc.
|
|
North Carolina
|
|
|
|||
TM BTR of Carolinas
|
|
North Carolina
|
|
|
|||
Darling Frisco Partners, Ltd.
|
|
Texas
|
|
|
|||
Darling Homes of Texas, LLC
|
|
Texas
|
|
|
|||
DFP Texas (GP), LLC
|
|
Texas
|
|
|
|||
Falconhead West, L.P.
|
|
Texas
|
|
|
|||
Taylor Morrison at Crystal Falls, LLC
|
|
Texas
|
|
|
|||
Taylor Morrison of Texas, Inc.
|
|
Texas
|
|
|
|||
Taylor Woodrow Communities at Seven Meadows, Ltd.
|
|
Texas
|
|
|
|||
Taylor Woodrow Communities — League City, Ltd.
|
|
Texas
|
|
|
|||
Taylor Woodrow Homes Houston (GP), L.L.C.
|
|
Texas
|
|
|
|||
TMC Travisso GP, LLC
|
|
Texas
|
|
|
|||
TMC Travisso LP, LLC
|
|
Texas
|
|
|
|||
Travisso, Ltd.
|
|
Texas
|
|
|
|||
TWC/Falconhead West, L.L.C.
|
|
Texas
|
|
|
|||
TWC/Seven Meadows, L.L.C.
|
|
Texas
|
|
|
|||
TWC/Steiner Ranch, L.L.C.
|
|
Texas
|
|
|
|||
TM BTR of Texas, LLC
|
|
Texas
|
|
|
|||
Beneva Indemnity Company
|
|
Vermont
|
|
|
By:
|
|
/s/ Sheryl D. Palmer
|
|
|
Sheryl D. Palmer
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
|
|
Taylor Morrison Home Corporation
|
By:
|
|
/s/ C. David Cone
|
|
|
C. David Cone
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Taylor Morrison Home Corporation
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 19, 2020
|
|
/s/ Sheryl D. Palmer
|
|
|
Sheryl D. Palmer
|
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
|
|
Taylor Morrison Home Corporation
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 19, 2020
|
|
/s/ C. David Cone
|
|
|
C. David Cone
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Taylor Morrison Home Corporation
|