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Share Name | Share Symbol | Market | Type |
---|---|---|---|
PulteGroup Inc | NYSE:PHM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
2.79 | 2.45% | 116.64 | 120.74 | 116.59 | 117.62 | 1,874,677 | 01:00:00 |
MICHIGAN
|
|
38-2766606
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer [X]
|
|
Accelerated filer [ ]
|
|
Non-accelerated filer [ ]
|
|
Smaller reporting company [ ]
|
|
|
Page
No.
|
PART I
|
|
|
|
|
|
Item 1
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2
|
||
|
|
|
Item 3
|
||
|
|
|
Item 4
|
||
|
|
|
PART II
|
||
|
|
|
Item 2
|
||
|
|
|
Item 6
|
||
|
|
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(Unaudited)
|
|
(Note)
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Cash and equivalents
|
$
|
434,205
|
|
|
$
|
754,161
|
|
Restricted cash
|
26,984
|
|
|
21,274
|
|
||
House and land inventory
|
6,950,242
|
|
|
5,450,058
|
|
||
Land held for sale
|
57,468
|
|
|
81,492
|
|
||
Residential mortgage loans available-for-sale
|
349,012
|
|
|
442,715
|
|
||
Investments in unconsolidated entities
|
51,768
|
|
|
41,267
|
|
||
Other assets
|
647,706
|
|
|
660,835
|
|
||
Intangible assets
|
158,242
|
|
|
110,215
|
|
||
Deferred tax assets, net
|
1,195,905
|
|
|
1,394,879
|
|
||
|
$
|
9,871,532
|
|
|
$
|
8,956,896
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
378,423
|
|
|
$
|
327,725
|
|
Customer deposits
|
248,302
|
|
|
186,141
|
|
||
Accrued and other liabilities
|
1,270,353
|
|
|
1,284,273
|
|
||
Income tax liabilities
|
33,562
|
|
|
57,050
|
|
||
Financial Services debt
|
158,794
|
|
|
267,877
|
|
||
Term loan
|
—
|
|
|
498,423
|
|
||
Senior notes
|
3,110,066
|
|
|
1,576,082
|
|
||
|
5,199,500
|
|
|
4,197,571
|
|
||
Shareholders' equity
|
4,672,032
|
|
|
4,759,325
|
|
||
|
$
|
9,871,532
|
|
|
$
|
8,956,896
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Homebuilding
|
|
|
|
|
|
|
|
||||||||
Home sale revenues
|
$
|
1,881,718
|
|
|
$
|
1,464,131
|
|
|
$
|
5,027,843
|
|
|
$
|
3,795,366
|
|
Land sale revenues
|
13,167
|
|
|
3,649
|
|
|
20,604
|
|
|
27,651
|
|
||||
|
1,894,885
|
|
|
1,467,780
|
|
|
5,048,447
|
|
|
3,823,017
|
|
||||
Financial Services
|
48,020
|
|
|
38,967
|
|
|
126,950
|
|
|
97,319
|
|
||||
Total revenues
|
1,942,905
|
|
|
1,506,747
|
|
|
5,175,397
|
|
|
3,920,336
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
||||||||
Home sale cost of revenues
|
1,485,611
|
|
|
1,118,874
|
|
|
3,949,449
|
|
|
2,913,299
|
|
||||
Land sale cost of revenues
|
11,428
|
|
|
3,301
|
|
|
17,859
|
|
|
21,992
|
|
||||
|
1,497,039
|
|
|
1,122,175
|
|
|
3,967,308
|
|
|
2,935,291
|
|
||||
Financial Services expenses
|
26,906
|
|
|
24,602
|
|
|
79,204
|
|
|
67,909
|
|
||||
Selling, general, and administrative expenses
|
183,008
|
|
|
159,361
|
|
|
566,355
|
|
|
450,793
|
|
||||
Other expense (income), net
|
23,617
|
|
|
21,333
|
|
|
42,402
|
|
|
23,638
|
|
||||
Income before income taxes
|
212,335
|
|
|
179,276
|
|
|
520,128
|
|
|
442,705
|
|
||||
Income tax expense
|
83,865
|
|
|
71,507
|
|
|
190,598
|
|
|
176,643
|
|
||||
Net income
|
$
|
128,470
|
|
|
$
|
107,769
|
|
|
$
|
329,530
|
|
|
$
|
266,062
|
|
|
|
|
|
|
|
|
|
||||||||
Per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.95
|
|
|
$
|
0.74
|
|
Diluted earnings
|
$
|
0.37
|
|
|
$
|
0.30
|
|
|
$
|
0.94
|
|
|
$
|
0.73
|
|
Cash dividends declared
|
$
|
0.09
|
|
|
$
|
0.08
|
|
|
$
|
0.27
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
||||||||
Number of shares used in calculation:
|
|
|
|
|
|
|
|
||||||||
Basic
|
340,171
|
|
|
350,147
|
|
|
344,383
|
|
|
359,236
|
|
||||
Effect of dilutive securities
|
2,250
|
|
|
3,225
|
|
|
2,557
|
|
|
3,273
|
|
||||
Diluted
|
342,421
|
|
|
353,372
|
|
|
346,940
|
|
|
362,509
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
$
|
128,470
|
|
|
$
|
107,769
|
|
|
$
|
329,530
|
|
|
$
|
266,062
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Change in value of derivatives
|
20
|
|
|
21
|
|
|
61
|
|
|
63
|
|
||||
Other comprehensive income
|
20
|
|
|
21
|
|
|
61
|
|
|
63
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
128,490
|
|
|
$
|
107,790
|
|
|
$
|
329,591
|
|
|
$
|
266,125
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|
Retained
Earnings
|
|
Total
|
|||||||||||||
Shares
|
|
$
|
|
|||||||||||||||||||
Shareholders' Equity, January 1, 2016
|
349,149
|
|
|
$
|
3,491
|
|
|
$
|
3,093,802
|
|
|
$
|
(609
|
)
|
|
$
|
1,662,641
|
|
|
$
|
4,759,325
|
|
Stock option exercises
|
498
|
|
|
5
|
|
|
5,840
|
|
|
—
|
|
|
—
|
|
|
5,845
|
|
|||||
Share issuances, net of cancellations
|
523
|
|
|
5
|
|
|
8,851
|
|
|
—
|
|
|
—
|
|
|
8,856
|
|
|||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93,127
|
)
|
|
(93,127
|
)
|
|||||
Share repurchases
|
(17,856
|
)
|
|
(177
|
)
|
|
—
|
|
|
—
|
|
|
(350,669
|
)
|
|
(350,846
|
)
|
|||||
Share-based compensation
|
—
|
|
|
—
|
|
|
12,976
|
|
|
—
|
|
|
—
|
|
|
12,976
|
|
|||||
Excess tax benefits (deficiencies) from share-based awards
|
—
|
|
|
—
|
|
|
(588
|
)
|
|
—
|
|
|
—
|
|
|
(588
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329,530
|
|
|
329,530
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|||||
Shareholders' Equity, September 30, 2016
|
332,314
|
|
|
$
|
3,324
|
|
|
$
|
3,120,881
|
|
|
$
|
(548
|
)
|
|
$
|
1,548,375
|
|
|
$
|
4,672,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shareholders' Equity, January 1, 2015
|
369,459
|
|
|
$
|
3,695
|
|
|
$
|
3,072,996
|
|
|
$
|
(690
|
)
|
|
$
|
1,728,953
|
|
|
$
|
4,804,954
|
|
Stock option exercises
|
888
|
|
|
9
|
|
|
10,362
|
|
|
—
|
|
|
—
|
|
|
10,371
|
|
|||||
Share issuances, net of cancellations
|
431
|
|
|
4
|
|
|
7,419
|
|
|
—
|
|
|
—
|
|
|
7,423
|
|
|||||
Dividends declared
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(86,304
|
)
|
|
(86,296
|
)
|
|||||
Share repurchases
|
(21,641
|
)
|
|
(216
|
)
|
|
—
|
|
|
—
|
|
|
(442,522
|
)
|
|
(442,738
|
)
|
|||||
Share-based compensation
|
—
|
|
|
—
|
|
|
13,556
|
|
|
—
|
|
|
—
|
|
|
13,556
|
|
|||||
Excess tax benefits (deficiencies) from share-based awards
|
—
|
|
|
—
|
|
|
(1,790
|
)
|
|
—
|
|
|
—
|
|
|
(1,790
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
266,062
|
|
|
266,062
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|||||
Shareholders' Equity, September 30, 2015
|
349,137
|
|
|
$
|
3,492
|
|
|
$
|
3,102,551
|
|
|
$
|
(627
|
)
|
|
$
|
1,466,189
|
|
|
$
|
4,571,605
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
329,530
|
|
|
$
|
266,062
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
||||
Deferred income tax expense
|
198,974
|
|
|
171,364
|
|
||
Depreciation and amortization
|
40,218
|
|
|
33,719
|
|
||
Share-based compensation expense
|
19,813
|
|
|
20,139
|
|
||
Other, net
|
17,678
|
|
|
11,300
|
|
||
Increase (decrease) in cash due to:
|
|
|
|
||||
Restricted cash
|
(5,710
|
)
|
|
(13,293
|
)
|
||
Inventories
|
(1,100,173
|
)
|
|
(835,276
|
)
|
||
Residential mortgage loans available-for-sale
|
92,649
|
|
|
68,381
|
|
||
Other assets
|
11,502
|
|
|
(130,282
|
)
|
||
Accounts payable, accrued and other liabilities
|
83,303
|
|
|
162,987
|
|
||
Net cash provided by (used in) operating activities
|
(312,216
|
)
|
|
(244,899
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(30,551
|
)
|
|
(34,049
|
)
|
||
Cash used for business acquisition
|
(430,458
|
)
|
|
—
|
|
||
Other investing activities, net
|
(8,576
|
)
|
|
13,669
|
|
||
Net cash used in investing activities
|
(469,585
|
)
|
|
(20,380
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from debt issuance
|
1,995,961
|
|
|
498,087
|
|
||
Repayments of debt
|
(985,734
|
)
|
|
(238,520
|
)
|
||
Borrowings under revolving credit facility
|
619,000
|
|
|
125,000
|
|
||
Repayments under revolving credit facility
|
(619,000
|
)
|
|
(125,000
|
)
|
||
Financial Services borrowings (repayments)
|
(109,083
|
)
|
|
(32,733
|
)
|
||
Stock option exercises
|
5,845
|
|
|
10,371
|
|
||
Share repurchases
|
(350,846
|
)
|
|
(442,738
|
)
|
||
Dividends paid
|
(94,298
|
)
|
|
(87,897
|
)
|
||
Net cash provided by (used in) financing activities
|
461,845
|
|
|
(293,430
|
)
|
||
Net increase (decrease) in cash and equivalents
|
(319,956
|
)
|
|
(558,709
|
)
|
||
Cash and equivalents at beginning of period
|
754,161
|
|
|
1,292,862
|
|
||
Cash and equivalents at end of period
|
$
|
434,205
|
|
|
$
|
734,153
|
|
|
|
|
|
||||
Supplemental Cash Flow Information:
|
|
|
|
||||
Interest paid (capitalized), net
|
$
|
(11,324
|
)
|
|
$
|
(20,304
|
)
|
Income taxes paid (refunded), net
|
$
|
(74
|
)
|
|
$
|
740
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
September 30,
|
|
September 30,
|
|||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Write-off of deposits and pre-acquisition costs
|
$
|
2,541
|
|
|
$
|
522
|
|
|
$
|
12,996
|
|
|
$
|
3,633
|
|
Lease exit and related costs
(a)
|
4,644
|
|
|
275
|
|
|
10,589
|
|
|
497
|
|
||||
Amortization of intangible assets
|
3,450
|
|
|
3,225
|
|
|
10,350
|
|
|
9,675
|
|
||||
Interest income
|
(887
|
)
|
|
(504
|
)
|
|
(2,659
|
)
|
|
(2,458
|
)
|
||||
Interest expense
|
165
|
|
|
203
|
|
|
526
|
|
|
598
|
|
||||
Equity in earnings of unconsolidated entities
|
(485
|
)
|
|
(2,192
|
)
|
|
(4,489
|
)
|
|
(4,464
|
)
|
||||
Miscellaneous, net
(b)
|
14,189
|
|
|
19,804
|
|
|
15,089
|
|
|
16,157
|
|
||||
|
$
|
23,617
|
|
|
$
|
21,333
|
|
|
$
|
42,402
|
|
|
$
|
23,638
|
|
(a)
|
Lease exit and related costs for the three and nine months ended September 30, 2016, resulted from actions taken to reduce overheads and the substantial completion of our corporate headquarters relocation from Michigan to Georgia, which began in 2013.
|
(b)
|
Miscellaneous, net includes a charge of
$15.0 million
related to the settlement of a disputed land transaction for the
three and nine months ended
September 30, 2016
, and a charge of
$20.0 million
resulting from the Applecross matter for the
three and nine months ended
September 30, 2015
(see
Note 8
).
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
September 30,
|
|
September 30,
|
|||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
128,470
|
|
|
$
|
107,769
|
|
|
$
|
329,530
|
|
|
$
|
266,062
|
|
Less: earnings distributed to participating securities
|
(269
|
)
|
|
(181
|
)
|
|
(836
|
)
|
|
(554
|
)
|
||||
Less: undistributed earnings allocated to participating securities
|
(870
|
)
|
|
(516
|
)
|
|
(1,764
|
)
|
|
(1,169
|
)
|
||||
Numerator for basic earnings per share
|
$
|
127,331
|
|
|
$
|
107,072
|
|
|
$
|
326,930
|
|
|
$
|
264,339
|
|
Add back: undistributed earnings allocated to participating securities
|
870
|
|
|
516
|
|
|
1,764
|
|
|
1,169
|
|
||||
Less: undistributed earnings reallocated to participating securities
|
(865
|
)
|
|
(512
|
)
|
|
(1,751
|
)
|
|
(1,158
|
)
|
||||
Numerator for diluted earnings per share
|
$
|
127,336
|
|
|
$
|
107,076
|
|
|
$
|
326,943
|
|
|
$
|
264,350
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic shares outstanding
|
340,171
|
|
|
350,147
|
|
|
344,383
|
|
|
359,236
|
|
||||
Effect of dilutive securities
|
2,250
|
|
|
3,225
|
|
|
2,557
|
|
|
3,273
|
|
||||
Diluted shares outstanding
|
342,421
|
|
|
353,372
|
|
|
346,940
|
|
|
362,509
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
0.95
|
|
|
$
|
0.74
|
|
Diluted
|
$
|
0.37
|
|
|
$
|
0.30
|
|
|
$
|
0.94
|
|
|
$
|
0.73
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Other Assets
|
|
Accrued and Other Liabilities
|
|
Other Assets
|
|
Accrued and Other Liabilities
|
||||||||
Interest rate lock commitments
|
$
|
11,140
|
|
|
$
|
262
|
|
|
$
|
5,854
|
|
|
$
|
280
|
|
Forward contracts
|
159
|
|
|
2,457
|
|
|
1,178
|
|
|
840
|
|
||||
Whole loan commitments
|
117
|
|
|
713
|
|
|
358
|
|
|
345
|
|
||||
|
$
|
11,416
|
|
|
$
|
3,432
|
|
|
$
|
7,390
|
|
|
$
|
1,465
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Homes under construction
|
$
|
2,259,830
|
|
|
$
|
1,408,260
|
|
Land under development
|
3,946,132
|
|
|
3,259,066
|
|
||
Raw land
|
744,280
|
|
|
782,732
|
|
||
|
$
|
6,950,242
|
|
|
$
|
5,450,058
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest in inventory, beginning of period
|
$
|
167,488
|
|
|
$
|
164,384
|
|
|
$
|
149,498
|
|
|
$
|
167,638
|
|
Interest capitalized
|
42,030
|
|
|
28,006
|
|
|
115,545
|
|
|
90,105
|
|
||||
Interest expensed
|
(32,857
|
)
|
|
(36,609
|
)
|
|
(88,382
|
)
|
|
(101,962
|
)
|
||||
Interest in inventory, end of period
|
$
|
176,661
|
|
|
$
|
155,781
|
|
|
$
|
176,661
|
|
|
$
|
155,781
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Deposits and
Pre-acquisition Costs |
|
Remaining Purchase
Price |
|
Deposits and
Pre-acquisition Costs |
|
Remaining Purchase
Price |
||||||||
Land options with VIEs
|
$
|
69,279
|
|
|
$
|
922,624
|
|
|
$
|
77,641
|
|
|
$
|
1,064,506
|
|
Other land options
|
104,408
|
|
|
1,242,821
|
|
|
84,478
|
|
|
981,687
|
|
||||
|
$
|
173,687
|
|
|
$
|
2,165,445
|
|
|
$
|
162,119
|
|
|
$
|
2,046,193
|
|
Northeast:
|
|
Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia
|
Southeast:
|
|
Georgia, North Carolina, South Carolina, Tennessee
|
Florida:
|
|
Florida
|
Midwest:
|
|
Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio
|
Texas:
|
|
Texas
|
West:
|
|
Arizona, California, Nevada, New Mexico, Washington
|
|
Operating Data by Segment
($000’s omitted)
|
||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Northeast
|
$
|
155,226
|
|
|
$
|
182,547
|
|
|
$
|
426,397
|
|
|
$
|
430,881
|
|
Southeast
(a)
|
375,148
|
|
|
282,051
|
|
|
1,057,249
|
|
|
713,090
|
|
||||
Florida
|
307,588
|
|
|
247,528
|
|
|
860,869
|
|
|
659,330
|
|
||||
Midwest
|
342,709
|
|
|
256,676
|
|
|
819,250
|
|
|
662,817
|
|
||||
Texas
|
261,693
|
|
|
203,319
|
|
|
730,456
|
|
|
566,307
|
|
||||
West
|
452,521
|
|
|
295,659
|
|
|
1,154,226
|
|
|
790,592
|
|
||||
|
1,894,885
|
|
|
1,467,780
|
|
|
5,048,447
|
|
|
3,823,017
|
|
||||
Financial Services
|
48,020
|
|
|
38,967
|
|
|
126,950
|
|
|
97,319
|
|
||||
Consolidated revenues
|
$
|
1,942,905
|
|
|
$
|
1,506,747
|
|
|
$
|
5,175,397
|
|
|
$
|
3,920,336
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes:
|
|
|
|
|
|
|
|
||||||||
Northeast
(b)
|
$
|
6,056
|
|
|
$
|
13,208
|
|
|
$
|
34,884
|
|
|
$
|
38,065
|
|
Southeast
(a)
|
36,370
|
|
|
45,708
|
|
|
96,898
|
|
|
110,203
|
|
||||
Florida
|
45,891
|
|
|
49,046
|
|
|
130,546
|
|
|
121,585
|
|
||||
Midwest
|
36,792
|
|
|
25,270
|
|
|
68,665
|
|
|
41,080
|
|
||||
Texas
|
38,878
|
|
|
26,035
|
|
|
103,618
|
|
|
73,313
|
|
||||
West
|
55,347
|
|
|
36,633
|
|
|
130,683
|
|
|
100,154
|
|
||||
Other homebuilding
(c)
|
(28,271
|
)
|
|
(30,989
|
)
|
|
(93,252
|
)
|
|
(71,104
|
)
|
||||
|
191,063
|
|
|
164,911
|
|
|
472,042
|
|
|
413,296
|
|
||||
Financial Services
|
21,272
|
|
|
14,365
|
|
|
48,086
|
|
|
29,409
|
|
||||
Consolidated income before income taxes
|
$
|
212,335
|
|
|
$
|
179,276
|
|
|
$
|
520,128
|
|
|
$
|
442,705
|
|
(a)
|
Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see
Note 1
).
|
(b)
|
Northeast includes a charge of
$15.0 million
related to the settlement of a disputed land transaction for the
three and nine months ended
September 30, 2016
, and a charge of
$20.0 million
resulting from the Applecross matter for the
three and nine months ended
September 30, 2015
(see
Note 8
).
|
(c)
|
Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. For the
three and nine months ended
September 30, 2015
, Other homebuilding also includes a reserve reversal of
$5.7 million
and
$32.6 million
, respectively, resulting from a favorable legal settlement.
|
|
Operating Data by Segment
|
||||||||||||||||||
|
($000's omitted)
|
||||||||||||||||||
|
September 30, 2016
|
||||||||||||||||||
|
Homes Under
Construction |
|
Land Under
Development |
|
Raw Land
|
|
Total
Inventory |
|
Total
Assets |
||||||||||
Northeast
|
$
|
234,959
|
|
|
$
|
376,845
|
|
|
$
|
104,426
|
|
|
$
|
716,230
|
|
|
$
|
818,569
|
|
Southeast
(a)
|
407,586
|
|
|
574,702
|
|
|
195,619
|
|
|
1,177,907
|
|
|
1,267,731
|
|
|||||
Florida
|
346,839
|
|
|
678,518
|
|
|
129,639
|
|
|
1,154,996
|
|
|
1,293,934
|
|
|||||
Midwest
|
321,833
|
|
|
461,584
|
|
|
47,895
|
|
|
831,312
|
|
|
892,039
|
|
|||||
Texas
|
246,786
|
|
|
391,793
|
|
|
85,307
|
|
|
723,886
|
|
|
805,458
|
|
|||||
West
|
672,170
|
|
|
1,227,980
|
|
|
158,374
|
|
|
2,058,524
|
|
|
2,275,186
|
|
|||||
Other homebuilding
(b)
|
29,657
|
|
|
234,710
|
|
|
23,020
|
|
|
287,387
|
|
|
2,103,325
|
|
|||||
|
2,259,830
|
|
|
3,946,132
|
|
|
744,280
|
|
|
6,950,242
|
|
|
9,456,242
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415,290
|
|
|||||
|
$
|
2,259,830
|
|
|
$
|
3,946,132
|
|
|
$
|
744,280
|
|
|
$
|
6,950,242
|
|
|
$
|
9,871,532
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||||||||
|
Homes Under
Construction |
|
Land Under
Development |
|
Raw Land
|
|
Total
Inventory |
|
Total
Assets |
||||||||||
Northeast
|
$
|
163,173
|
|
|
$
|
292,631
|
|
|
$
|
121,522
|
|
|
$
|
577,326
|
|
|
$
|
688,610
|
|
Southeast
|
196,456
|
|
|
367,577
|
|
|
139,246
|
|
|
703,279
|
|
|
765,933
|
|
|||||
Florida
|
227,910
|
|
|
574,092
|
|
|
97,185
|
|
|
899,187
|
|
|
1,013,543
|
|
|||||
Midwest
|
197,738
|
|
|
414,386
|
|
|
68,918
|
|
|
681,042
|
|
|
734,834
|
|
|||||
Texas
|
191,424
|
|
|
317,702
|
|
|
107,737
|
|
|
616,863
|
|
|
691,342
|
|
|||||
West
|
413,208
|
|
|
1,094,112
|
|
|
222,920
|
|
|
1,730,240
|
|
|
1,924,958
|
|
|||||
Other homebuilding
(b)
|
18,351
|
|
|
198,566
|
|
|
25,204
|
|
|
242,121
|
|
|
2,628,687
|
|
|||||
|
1,408,260
|
|
|
3,259,066
|
|
|
782,732
|
|
|
5,450,058
|
|
|
8,447,907
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
508,989
|
|
|||||
|
$
|
1,408,260
|
|
|
$
|
3,259,066
|
|
|
$
|
782,732
|
|
|
$
|
5,450,058
|
|
|
$
|
8,956,896
|
|
(a)
|
Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see
Note 1
).
|
(b)
|
Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments.
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
6.500% unsecured senior notes due May 2016
(a)
|
—
|
|
|
465,245
|
|
||
7.625% unsecured senior notes due October 2017
(b)
|
123,000
|
|
|
123,000
|
|
||
4.250% unsecured senior notes due March 2021
(a)
|
700,000
|
|
|
—
|
|
||
5.500% unsecured senior notes due March 2026
(a)
|
700,000
|
|
|
—
|
|
||
5.000% unsecured senior notes due January 2027
(a)
|
600,000
|
|
|
—
|
|
||
7.875% unsecured senior notes due June 2032
(a)
|
300,000
|
|
|
300,000
|
|
||
6.375% unsecured senior notes due May 2033
(a)
|
400,000
|
|
|
400,000
|
|
||
6.000% unsecured senior notes due February 2035
(a)
|
300,000
|
|
|
300,000
|
|
||
Net premiums, discounts, and issuance costs
(c)
|
(12,934
|
)
|
|
(12,163
|
)
|
||
Total senior notes
|
$
|
3,110,066
|
|
|
$
|
1,576,082
|
|
Estimated fair value
|
$
|
3,270,878
|
|
|
$
|
1,643,651
|
|
(a)
|
Redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.
|
(b)
|
Not redeemable prior to maturity; guaranteed on a senior basis by certain wholly-owned subsidiaries.
|
(c)
|
The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. As discussed in
Note 1
, we adopted ASU 2015-03 in January 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the 2016 presentation. As a result,
$10.3 million
of debt issuance costs at
December 31, 2015
, were reclassified from other assets to a reduction in senior notes.
|
Level 1
|
|
Fair value determined based on quoted prices in active markets for identical assets or liabilities.
|
|
|
|
Level 2
|
|
Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
|
|
|
|
Level 3
|
|
Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.
|
Financial Instrument
|
|
Fair Value
Hierarchy |
|
Fair Value
|
||||||
September 30,
2016 |
|
December 31,
2015 |
||||||||
|
|
|
|
|
|
|
||||
Measured at fair value on a recurring basis:
|
|
|
|
|
|
|
||||
Residential mortgage loans available-for-sale
|
|
Level 2
|
|
$
|
349,012
|
|
|
$
|
442,715
|
|
Interest rate lock commitments
|
|
Level 2
|
|
10,878
|
|
|
5,574
|
|
||
Forward contracts
|
|
Level 2
|
|
(2,298
|
)
|
|
338
|
|
||
Whole loan commitments
|
|
Level 2
|
|
(596
|
)
|
|
13
|
|
||
|
|
|
|
|
|
|
||||
Measured at fair value on a non-recurring basis:
|
|
|
|
|
|
|
||||
House and land inventory
|
|
Level 3
|
|
$
|
—
|
|
|
$
|
11,052
|
|
|
|
|
|
|
|
|
||||
Disclosed at fair value:
|
|
|
|
|
|
|
||||
Cash and equivalents (including restricted cash)
|
|
Level 1
|
|
$
|
461,189
|
|
|
$
|
775,435
|
|
Financial Services debt
|
|
Level 2
|
|
158,794
|
|
|
267,877
|
|
||
Term loan
|
|
Level 2
|
|
—
|
|
|
500,000
|
|
||
Senior notes
|
|
Level 2
|
|
3,270,878
|
|
|
1,643,651
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Liabilities, beginning of period
|
$
|
35,945
|
|
|
$
|
58,238
|
|
|
$
|
46,381
|
|
|
$
|
58,222
|
|
Reserves provided (released), net
|
(138
|
)
|
|
81
|
|
|
629
|
|
|
220
|
|
||||
Payments
|
(264
|
)
|
|
(23
|
)
|
|
(11,467
|
)
|
|
(146
|
)
|
||||
Liabilities, end of period
|
$
|
35,543
|
|
|
$
|
58,296
|
|
|
$
|
35,543
|
|
|
$
|
58,296
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Warranty liabilities, beginning of period
|
$
|
61,839
|
|
|
$
|
54,502
|
|
|
$
|
61,360
|
|
|
$
|
65,389
|
|
Reserves provided
|
19,221
|
|
|
12,575
|
|
|
45,744
|
|
|
32,586
|
|
||||
Payments
|
(14,886
|
)
|
|
(14,316
|
)
|
|
(40,729
|
)
|
|
(45,793
|
)
|
||||
Other adjustments
|
(1,753
|
)
|
|
1,773
|
|
|
(1,954
|
)
|
|
2,352
|
|
||||
Warranty liabilities, end of period
|
$
|
64,421
|
|
|
$
|
54,534
|
|
|
$
|
64,421
|
|
|
$
|
54,534
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance, beginning of period
|
$
|
707,306
|
|
|
$
|
700,133
|
|
|
$
|
692,053
|
|
|
$
|
710,245
|
|
Reserves provided, net
|
20,234
|
|
|
14,021
|
|
|
65,302
|
|
|
20,467
|
|
||||
Payments
|
(24,993
|
)
|
|
(11,670
|
)
|
|
(54,808
|
)
|
|
(28,228
|
)
|
||||
Balance, end of period
|
$
|
702,547
|
|
|
$
|
702,484
|
|
|
$
|
702,547
|
|
|
$
|
702,484
|
|
|
Unconsolidated
|
|
Eliminating
Entries |
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
—
|
|
|
$
|
373,539
|
|
|
$
|
60,666
|
|
|
$
|
—
|
|
|
$
|
434,205
|
|
Restricted cash
|
—
|
|
|
25,984
|
|
|
1,000
|
|
|
—
|
|
|
26,984
|
|
|||||
House and land inventory
|
—
|
|
|
6,895,174
|
|
|
55,068
|
|
|
—
|
|
|
6,950,242
|
|
|||||
Land held for sale
|
—
|
|
|
56,958
|
|
|
510
|
|
|
—
|
|
|
57,468
|
|
|||||
Residential mortgage loans available-
for-sale |
—
|
|
|
—
|
|
|
349,012
|
|
|
—
|
|
|
349,012
|
|
|||||
Investments in unconsolidated entities
|
103
|
|
|
46,679
|
|
|
4,986
|
|
|
—
|
|
|
51,768
|
|
|||||
Other assets
|
12,871
|
|
|
509,904
|
|
|
124,931
|
|
|
—
|
|
|
647,706
|
|
|||||
Intangible assets
|
—
|
|
|
158,242
|
|
|
—
|
|
|
—
|
|
|
158,242
|
|
|||||
Deferred tax assets, net
|
1,194,646
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|
1,195,905
|
|
|||||
Investments in subsidiaries and
intercompany accounts, net |
6,689,355
|
|
|
(565,940
|
)
|
|
6,521,080
|
|
|
(12,644,495
|
)
|
|
—
|
|
|||||
|
$
|
7,896,975
|
|
|
$
|
7,500,540
|
|
|
$
|
7,118,512
|
|
|
$
|
(12,644,495
|
)
|
|
$
|
9,871,532
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable, customer deposits,
accrued and other liabilities |
$
|
81,315
|
|
|
$
|
1,648,402
|
|
|
$
|
167,361
|
|
|
$
|
—
|
|
|
$
|
1,897,078
|
|
Income tax liabilities
|
33,562
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,562
|
|
|||||
Financial Services debt
|
—
|
|
|
—
|
|
|
158,794
|
|
|
—
|
|
|
158,794
|
|
|||||
Term loan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Senior notes
|
3,110,066
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,110,066
|
|
|||||
Total liabilities
|
3,224,943
|
|
|
1,648,402
|
|
|
326,155
|
|
|
—
|
|
|
5,199,500
|
|
|||||
Total shareholders’ equity
|
4,672,032
|
|
|
5,852,138
|
|
|
6,792,357
|
|
|
(12,644,495
|
)
|
|
4,672,032
|
|
|||||
|
$
|
7,896,975
|
|
|
$
|
7,500,540
|
|
|
$
|
7,118,512
|
|
|
$
|
(12,644,495
|
)
|
|
$
|
9,871,532
|
|
|
Unconsolidated
|
|
Eliminating
Entries |
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
—
|
|
|
$
|
638,602
|
|
|
$
|
115,559
|
|
|
$
|
—
|
|
|
$
|
754,161
|
|
Restricted cash
|
—
|
|
|
20,274
|
|
|
1,000
|
|
|
—
|
|
|
21,274
|
|
|||||
House and land inventory
|
—
|
|
|
5,450,058
|
|
|
—
|
|
|
—
|
|
|
5,450,058
|
|
|||||
Land held for sale
|
—
|
|
|
80,458
|
|
|
1,034
|
|
|
—
|
|
|
81,492
|
|
|||||
Residential mortgage loans available-
for-sale |
—
|
|
|
—
|
|
|
442,715
|
|
|
—
|
|
|
442,715
|
|
|||||
Investments in unconsolidated entities
|
93
|
|
|
36,499
|
|
|
4,675
|
|
|
—
|
|
|
41,267
|
|
|||||
Other assets
|
38,991
|
|
|
531,120
|
|
|
90,724
|
|
|
—
|
|
|
660,835
|
|
|||||
Intangible assets
|
—
|
|
|
110,215
|
|
|
—
|
|
|
—
|
|
|
110,215
|
|
|||||
Deferred tax assets, net
|
1,392,251
|
|
|
11
|
|
|
2,617
|
|
|
—
|
|
|
1,394,879
|
|
|||||
Investments in subsidiaries and
intercompany accounts, net |
5,529,606
|
|
|
465,644
|
|
|
6,293,018
|
|
|
(12,288,268
|
)
|
|
—
|
|
|||||
|
$
|
6,960,941
|
|
|
$
|
7,332,881
|
|
|
$
|
6,951,342
|
|
|
$
|
(12,288,268
|
)
|
|
$
|
8,956,896
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable, customer deposits,
accrued and other liabilities |
$
|
70,061
|
|
|
$
|
1,558,885
|
|
|
$
|
169,193
|
|
|
$
|
—
|
|
|
$
|
1,798,139
|
|
Income tax liabilities
|
57,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,050
|
|
|||||
Financial Services debt
|
—
|
|
|
—
|
|
|
267,877
|
|
|
—
|
|
|
267,877
|
|
|||||
Term loan
|
498,423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
498,423
|
|
|||||
Senior notes
|
1,576,082
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,576,082
|
|
|||||
Total liabilities
|
2,201,616
|
|
|
1,558,885
|
|
|
437,070
|
|
|
—
|
|
|
4,197,571
|
|
|||||
Total shareholders’ equity
|
4,759,325
|
|
|
5,773,996
|
|
|
6,514,272
|
|
|
(12,288,268
|
)
|
|
4,759,325
|
|
|||||
|
$
|
6,960,941
|
|
|
$
|
7,332,881
|
|
|
$
|
6,951,342
|
|
|
$
|
(12,288,268
|
)
|
|
$
|
8,956,896
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Homebuilding
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale revenues
|
$
|
—
|
|
|
$
|
1,871,284
|
|
|
$
|
10,434
|
|
|
$
|
—
|
|
|
$
|
1,881,718
|
|
Land sale revenues
|
—
|
|
|
13,167
|
|
|
—
|
|
|
—
|
|
|
13,167
|
|
|||||
|
—
|
|
|
1,884,451
|
|
|
10,434
|
|
|
—
|
|
|
1,894,885
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
48,020
|
|
|
—
|
|
|
48,020
|
|
|||||
|
—
|
|
|
1,884,451
|
|
|
58,454
|
|
|
—
|
|
|
1,942,905
|
|
|||||
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale cost of revenues
|
—
|
|
|
1,474,377
|
|
|
11,234
|
|
|
—
|
|
|
1,485,611
|
|
|||||
Land sale cost of revenues
|
—
|
|
|
11,428
|
|
|
—
|
|
|
—
|
|
|
11,428
|
|
|||||
|
—
|
|
|
1,485,805
|
|
|
11,234
|
|
|
—
|
|
|
1,497,039
|
|
|||||
Financial Services expenses
|
—
|
|
|
145
|
|
|
26,761
|
|
|
—
|
|
|
26,906
|
|
|||||
Selling, general, and administrative
expenses |
—
|
|
|
176,998
|
|
|
6,010
|
|
|
—
|
|
|
183,008
|
|
|||||
Other expense (income), net
|
823
|
|
|
26,166
|
|
|
(3,372
|
)
|
|
—
|
|
|
23,617
|
|
|||||
Intercompany interest
|
487
|
|
|
2,072
|
|
|
(2,559
|
)
|
|
—
|
|
|
—
|
|
|||||
Income (loss) before income taxes and
equity in income (loss) of subsidiaries |
(1,310
|
)
|
|
193,265
|
|
|
20,380
|
|
|
—
|
|
|
212,335
|
|
|||||
Income tax expense (benefit)
|
(498
|
)
|
|
76,552
|
|
|
7,811
|
|
|
—
|
|
|
83,865
|
|
|||||
Income (loss) before equity in income
(loss) of subsidiaries |
(812
|
)
|
|
116,713
|
|
|
12,569
|
|
|
—
|
|
|
128,470
|
|
|||||
Equity in income (loss) of subsidiaries
|
129,282
|
|
|
21,948
|
|
|
75,884
|
|
|
(227,114
|
)
|
|
—
|
|
|||||
Net income (loss)
|
128,470
|
|
|
138,661
|
|
|
88,453
|
|
|
(227,114
|
)
|
|
128,470
|
|
|||||
Other comprehensive income
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||
Comprehensive income (loss)
|
$
|
128,490
|
|
|
$
|
138,661
|
|
|
$
|
88,453
|
|
|
$
|
(227,114
|
)
|
|
$
|
128,490
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Homebuilding
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale revenues
|
$
|
—
|
|
|
$
|
1,464,131
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,464,131
|
|
Land sale revenues
|
—
|
|
|
3,649
|
|
|
—
|
|
|
—
|
|
|
3,649
|
|
|||||
|
—
|
|
|
1,467,780
|
|
|
—
|
|
|
—
|
|
|
1,467,780
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
38,967
|
|
|
—
|
|
|
38,967
|
|
|||||
|
—
|
|
|
1,467,780
|
|
|
38,967
|
|
|
—
|
|
|
1,506,747
|
|
|||||
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale cost of revenues
|
—
|
|
|
1,118,874
|
|
|
—
|
|
|
—
|
|
|
1,118,874
|
|
|||||
Land sale cost of revenues
|
—
|
|
|
3,301
|
|
|
—
|
|
|
—
|
|
|
3,301
|
|
|||||
|
—
|
|
|
1,122,175
|
|
|
—
|
|
|
—
|
|
|
1,122,175
|
|
|||||
Financial Services expenses
|
13
|
|
|
(13
|
)
|
|
24,602
|
|
|
—
|
|
|
24,602
|
|
|||||
Selling, general, and administrative
expenses |
—
|
|
|
158,975
|
|
|
386
|
|
|
—
|
|
|
159,361
|
|
|||||
Other expense (income), net
|
202
|
|
|
21,267
|
|
|
(136
|
)
|
|
—
|
|
|
21,333
|
|
|||||
Intercompany interest
|
594
|
|
|
2,039
|
|
|
(2,633
|
)
|
|
—
|
|
|
—
|
|
|||||
Income (loss) before income taxes and
equity in income (loss) of subsidiaries |
(809
|
)
|
|
163,337
|
|
|
16,748
|
|
|
—
|
|
|
179,276
|
|
|||||
Income tax expense (benefit)
|
(307
|
)
|
|
65,347
|
|
|
6,467
|
|
|
—
|
|
|
71,507
|
|
|||||
Income (loss) before equity in income
(loss) of subsidiaries |
(502
|
)
|
|
97,990
|
|
|
10,281
|
|
|
—
|
|
|
107,769
|
|
|||||
Equity in income (loss) of subsidiaries
|
108,271
|
|
|
9,913
|
|
|
82,484
|
|
|
(200,668
|
)
|
|
—
|
|
|||||
Net income (loss)
|
107,769
|
|
|
107,903
|
|
|
92,765
|
|
|
(200,668
|
)
|
|
107,769
|
|
|||||
Other comprehensive income
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Comprehensive income (loss)
|
$
|
107,790
|
|
|
$
|
107,903
|
|
|
$
|
92,765
|
|
|
$
|
(200,668
|
)
|
|
$
|
107,790
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Homebuilding
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale revenues
|
$
|
—
|
|
|
$
|
5,011,027
|
|
|
$
|
16,816
|
|
|
$
|
—
|
|
|
$
|
5,027,843
|
|
Land sale revenues
|
—
|
|
|
19,069
|
|
|
1,535
|
|
|
—
|
|
|
20,604
|
|
|||||
|
—
|
|
|
5,030,096
|
|
|
18,351
|
|
|
—
|
|
|
5,048,447
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
126,950
|
|
|
—
|
|
|
126,950
|
|
|||||
|
—
|
|
|
5,030,096
|
|
|
145,301
|
|
|
—
|
|
|
5,175,397
|
|
|||||
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale cost of revenues
|
—
|
|
|
3,930,546
|
|
|
18,903
|
|
|
—
|
|
|
3,949,449
|
|
|||||
Land sale cost of revenues
|
—
|
|
|
16,577
|
|
|
1,282
|
|
|
—
|
|
|
17,859
|
|
|||||
|
—
|
|
|
3,947,123
|
|
|
20,185
|
|
|
—
|
|
|
3,967,308
|
|
|||||
Financial Services expenses
|
—
|
|
|
405
|
|
|
78,799
|
|
|
—
|
|
|
79,204
|
|
|||||
Selling, general, and administrative
expenses |
—
|
|
|
549,094
|
|
|
17,261
|
|
|
—
|
|
|
566,355
|
|
|||||
Other expense (income), net
|
1,164
|
|
|
56,599
|
|
|
(15,361
|
)
|
|
—
|
|
|
42,402
|
|
|||||
Intercompany interest
|
1,487
|
|
|
6,290
|
|
|
(7,777
|
)
|
|
—
|
|
|
—
|
|
|||||
Income (loss) before income taxes and
equity in income (loss) of subsidiaries |
(2,651
|
)
|
|
470,585
|
|
|
52,194
|
|
|
—
|
|
|
520,128
|
|
|||||
Income tax expense (benefit)
|
(1,008
|
)
|
|
171,535
|
|
|
20,071
|
|
|
—
|
|
|
190,598
|
|
|||||
Income (loss) before equity in income
(loss) of subsidiaries |
(1,643
|
)
|
|
299,050
|
|
|
32,123
|
|
|
—
|
|
|
329,530
|
|
|||||
Equity in income (loss) of subsidiaries
|
331,173
|
|
|
31,827
|
|
|
261,777
|
|
|
(624,777
|
)
|
|
—
|
|
|||||
Net income (loss)
|
329,530
|
|
|
330,877
|
|
|
293,900
|
|
|
(624,777
|
)
|
|
329,530
|
|
|||||
Other comprehensive income
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||
Comprehensive income (loss)
|
$
|
329,591
|
|
|
$
|
330,877
|
|
|
$
|
293,900
|
|
|
$
|
(624,777
|
)
|
|
$
|
329,591
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Homebuilding
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale revenues
|
$
|
—
|
|
|
$
|
3,795,366
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,795,366
|
|
Land sale revenues
|
—
|
|
|
27,651
|
|
|
—
|
|
|
—
|
|
|
27,651
|
|
|||||
|
—
|
|
|
3,823,017
|
|
|
—
|
|
|
—
|
|
|
3,823,017
|
|
|||||
Financial Services
|
—
|
|
|
—
|
|
|
97,319
|
|
|
—
|
|
|
97,319
|
|
|||||
|
—
|
|
|
3,823,017
|
|
|
97,319
|
|
|
—
|
|
|
3,920,336
|
|
|||||
Homebuilding Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home sale cost of revenues
|
—
|
|
|
2,913,299
|
|
|
—
|
|
|
—
|
|
|
2,913,299
|
|
|||||
Land sale cost of revenues
|
—
|
|
|
21,992
|
|
|
—
|
|
|
—
|
|
|
21,992
|
|
|||||
|
—
|
|
|
2,935,291
|
|
|
—
|
|
|
—
|
|
|
2,935,291
|
|
|||||
Financial Services expenses
|
300
|
|
|
(274
|
)
|
|
67,883
|
|
|
—
|
|
|
67,909
|
|
|||||
Selling, general, and administrative
expenses |
—
|
|
|
449,261
|
|
|
1,532
|
|
|
—
|
|
|
450,793
|
|
|||||
Other expense (income), net
|
572
|
|
|
23,702
|
|
|
(636
|
)
|
|
—
|
|
|
23,638
|
|
|||||
Intercompany interest
|
1,537
|
|
|
5,886
|
|
|
(7,423
|
)
|
|
—
|
|
|
—
|
|
|||||
Income (loss) before income taxes and
equity in income (loss) of subsidiaries |
(2,409
|
)
|
|
409,151
|
|
|
35,963
|
|
|
—
|
|
|
442,705
|
|
|||||
Income tax expense (benefit)
|
(917
|
)
|
|
163,713
|
|
|
13,847
|
|
|
—
|
|
|
176,643
|
|
|||||
Income (loss) before equity in income
(loss) of subsidiaries |
(1,492
|
)
|
|
245,438
|
|
|
22,116
|
|
|
—
|
|
|
266,062
|
|
|||||
Equity in income (loss) of subsidiaries
|
267,554
|
|
|
21,586
|
|
|
227,143
|
|
|
(516,283
|
)
|
|
—
|
|
|||||
Net income (loss)
|
266,062
|
|
|
267,024
|
|
|
249,259
|
|
|
(516,283
|
)
|
|
266,062
|
|
|||||
Other comprehensive income
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||
Comprehensive income (loss)
|
$
|
266,125
|
|
|
$
|
267,024
|
|
|
$
|
249,259
|
|
|
$
|
(516,283
|
)
|
|
$
|
266,125
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Net cash provided by (used in)
operating activities |
$
|
159,366
|
|
|
$
|
(567,875
|
)
|
|
$
|
96,293
|
|
|
$
|
—
|
|
|
$
|
(312,216
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(28,243
|
)
|
|
(2,308
|
)
|
|
—
|
|
|
(30,551
|
)
|
|||||
Cash used for business acquisitions
|
—
|
|
|
(430,458
|
)
|
|
—
|
|
|
—
|
|
|
(430,458
|
)
|
|||||
Other investing activities, net
|
—
|
|
|
(10,136
|
)
|
|
1,560
|
|
|
—
|
|
|
(8,576
|
)
|
|||||
Net cash provided by (used in)
investing activities |
—
|
|
|
(468,837
|
)
|
|
(748
|
)
|
|
—
|
|
|
(469,585
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt issuance
|
1,991,961
|
|
|
4,000
|
|
|
—
|
|
|
—
|
|
|
1,995,961
|
|
|||||
Repayments of debt
|
(965,245
|
)
|
|
(20,394
|
)
|
|
(95
|
)
|
|
—
|
|
|
(985,734
|
)
|
|||||
Borrowings under revolving credit facility
|
619,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
619,000
|
|
|||||
Repayments under revolving credit facility
|
(619,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(619,000
|
)
|
|||||
Financial Services borrowings (repayments)
|
—
|
|
|
—
|
|
|
(109,083
|
)
|
|
—
|
|
|
(109,083
|
)
|
|||||
Stock option exercises
|
5,845
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,845
|
|
|||||
Share repurchases
|
(350,846
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(350,846
|
)
|
|||||
Dividends paid
|
(94,298
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94,298
|
)
|
|||||
Intercompany activities, net
|
(746,783
|
)
|
|
788,043
|
|
|
(41,260
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in)
financing activities |
(159,366
|
)
|
|
771,649
|
|
|
(150,438
|
)
|
|
—
|
|
|
461,845
|
|
|||||
Net increase (decrease) in cash and
equivalents |
—
|
|
|
(265,063
|
)
|
|
(54,893
|
)
|
|
—
|
|
|
(319,956
|
)
|
|||||
Cash and equivalents at beginning of
period |
—
|
|
|
638,602
|
|
|
115,559
|
|
|
—
|
|
|
754,161
|
|
|||||
Cash and equivalents at end of period
|
$
|
—
|
|
|
$
|
373,539
|
|
|
$
|
60,666
|
|
|
$
|
—
|
|
|
$
|
434,205
|
|
|
Unconsolidated
|
|
|
|
Consolidated
PulteGroup, Inc. |
||||||||||||||
|
PulteGroup,
Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
|||||||||||
Net cash provided by (used in)
operating activities |
$
|
164,558
|
|
|
$
|
(468,838
|
)
|
|
$
|
59,381
|
|
|
$
|
—
|
|
|
$
|
(244,899
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(31,197
|
)
|
|
(2,852
|
)
|
|
—
|
|
|
(34,049
|
)
|
|||||
Other investing activities, net
|
3,710
|
|
|
785
|
|
|
9,174
|
|
|
—
|
|
|
13,669
|
|
|||||
Net cash provided by (used in) investing
activities |
3,710
|
|
|
(30,412
|
)
|
|
6,322
|
|
|
—
|
|
|
(20,380
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt issuance
|
498,087
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
498,087
|
|
|||||
Repayments of debt
|
(237,994
|
)
|
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
(238,520
|
)
|
|||||
Financial Services borrowings (repayments)
|
—
|
|
|
—
|
|
|
(32,733
|
)
|
|
—
|
|
|
(32,733
|
)
|
|||||
Stock option exercises
|
10,371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,371
|
|
|||||
Share repurchases
|
(442,738
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(442,738
|
)
|
|||||
Dividends paid
|
(87,897
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87,897
|
)
|
|||||
Intercompany activities, net
|
84,449
|
|
|
30,693
|
|
|
(115,142
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in)
financing activities |
(175,722
|
)
|
|
30,167
|
|
|
(147,875
|
)
|
|
—
|
|
|
(293,430
|
)
|
|||||
Net increase (decrease) in cash and
equivalents |
(7,454
|
)
|
|
(469,083
|
)
|
|
(82,172
|
)
|
|
—
|
|
|
(558,709
|
)
|
|||||
Cash and equivalents at beginning of
period |
7,454
|
|
|
1,157,307
|
|
|
128,101
|
|
|
—
|
|
|
1,292,862
|
|
|||||
Cash and equivalents at end of period
|
$
|
—
|
|
|
$
|
688,224
|
|
|
$
|
45,929
|
|
|
$
|
—
|
|
|
$
|
734,153
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Income before income taxes:
|
|
|
|
|
|
|
|
||||||||
Homebuilding
|
$
|
191,063
|
|
|
$
|
164,911
|
|
|
$
|
472,042
|
|
|
$
|
413,296
|
|
Financial Services
|
21,272
|
|
|
14,365
|
|
|
48,086
|
|
|
29,409
|
|
||||
Income before income taxes
|
212,335
|
|
|
179,276
|
|
|
520,128
|
|
|
442,705
|
|
||||
Income tax expense
|
83,865
|
|
|
71,507
|
|
|
190,598
|
|
|
176,643
|
|
||||
Net income
|
$
|
128,470
|
|
|
$
|
107,769
|
|
|
$
|
329,530
|
|
|
$
|
266,062
|
|
Per share data - assuming dilution:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
0.37
|
|
|
$
|
0.30
|
|
|
$
|
0.94
|
|
|
$
|
0.73
|
|
•
|
Homebuilding income before income taxes for the
three and nine months ended
September 30, 2016
increased compared with the prior year period as the result of higher revenues stemming from increased volume and a higher average selling price. The revenue increase was partially offset by lower gross margins and higher overhead costs, both of which were partially attributable to the assets acquired from Wieland in January 2016 (see
Note 1
). Income before income taxes also reflects: a charge of
$15.0 million
for the
three and nine months ended
September 30, 2016
, and a charge of
$20.0 million
resulting from the Applecross matter for the same periods in 2015 (see
Note 8
); a reserve reversal resulting from a favorable legal settlement of
$32.6 million
for the
nine months ended
September 30, 2015 (see
Note 8
); and severance, lease exit, and related costs of $12.2 million and $19.7 million for the three and nine months ended September 30, 2016, respectively.
|
•
|
Financial Services income before income taxes for the
three and nine months ended
September 30, 2016
increased compared with the prior year periods due to an increase in origination volume resulting from higher volumes in the Homebuilding segment combined with higher revenues per loan, which were largely attributable to a higher average loan size combined with favorable market conditions.
|
•
|
Our effective tax rate for the
three and nine months ended
September 30, 2016
was
39.5%
and
36.6%
, respectively, compared to
39.9%
for the same periods in 2015.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||||||
|
2016
|
|
2016 vs. 2015
|
|
2015
|
|
2016
|
|
2016 vs. 2015
|
|
2015
|
||||||||||
Home sale revenues
|
$
|
1,881,718
|
|
|
29
|
%
|
|
$
|
1,464,131
|
|
|
$
|
5,027,843
|
|
|
32
|
%
|
|
$
|
3,795,366
|
|
Land sale revenues
|
13,167
|
|
|
261
|
%
|
|
3,649
|
|
|
20,604
|
|
|
(25
|
)%
|
|
27,651
|
|
||||
Total Homebuilding revenues
|
1,894,885
|
|
|
29
|
%
|
|
1,467,780
|
|
|
5,048,447
|
|
|
32
|
%
|
|
3,823,017
|
|
||||
Home sale cost of revenues
(a)
|
1,485,611
|
|
|
33
|
%
|
|
1,118,874
|
|
|
3,949,449
|
|
|
36
|
%
|
|
2,913,299
|
|
||||
Land sale cost of revenues
|
11,428
|
|
|
246
|
%
|
|
3,301
|
|
|
17,859
|
|
|
(19
|
)%
|
|
21,992
|
|
||||
Selling, general, and administrative
expenses ("SG&A") (b) |
183,008
|
|
|
15
|
%
|
|
159,361
|
|
|
566,355
|
|
|
26
|
%
|
|
450,793
|
|
||||
Other expense (income), net
(c)
|
23,775
|
|
|
11
|
%
|
|
21,333
|
|
|
42,742
|
|
|
81
|
%
|
|
23,637
|
|
||||
Income before income taxes
|
$
|
191,063
|
|
|
16
|
%
|
|
$
|
164,911
|
|
|
$
|
472,042
|
|
|
14
|
%
|
|
$
|
413,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Supplemental data
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin from home sales
|
21.1
|
%
|
|
(250 bps)
|
|
|
23.6
|
%
|
|
21.4
|
%
|
|
(180 bps)
|
|
|
23.2
|
%
|
||||
SG&A as a percentage of home
sale revenues |
9.7
|
%
|
|
(120) bps
|
|
|
10.9
|
%
|
|
11.3
|
%
|
|
(60) bps
|
|
|
11.9
|
%
|
||||
Closings (units)
|
5,037
|
|
|
16
|
%
|
|
4,356
|
|
|
13,754
|
|
|
20
|
%
|
|
11,465
|
|
||||
Average selling price
|
$
|
374
|
|
|
11
|
%
|
|
$
|
336
|
|
|
$
|
366
|
|
|
10
|
%
|
|
$
|
331
|
|
Net new orders
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Units
|
4,775
|
|
|
17
|
%
|
|
4,092
|
|
|
16,124
|
|
|
12
|
%
|
|
14,349
|
|
||||
Dollars
|
$
|
1,831,339
|
|
|
25
|
%
|
|
$
|
1,465,322
|
|
|
$
|
6,087,334
|
|
|
23
|
%
|
|
$
|
4,940,560
|
|
Cancellation rate
|
16
|
%
|
|
|
|
17
|
%
|
|
14
|
%
|
|
|
|
13
|
%
|
||||||
Active communities at September 30
|
|
|
|
|
|
|
709
|
|
|
16
|
%
|
|
611
|
|
|||||||
Backlog at September 30:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Units
|
|
|
|
|
|
|
9,417
|
|
|
8
|
%
|
|
8,734
|
|
|||||||
Dollars
|
|
|
|
|
|
|
$
|
3,698,920
|
|
|
20
|
%
|
|
$
|
3,089,055
|
|
(a)
|
Includes the amortization of capitalized interest.
|
(b)
|
Includes a reserve reversal of
$5.7 million
and
$32.6 million
resulting from a favorable legal settlement for the
three and nine months ended
September 30, 2015
, respectively (see
Note 8
). Also includes severance costs of $7.6 million and $9.1 million for the three and nine months ended September 30, 2016, respectively.
|
(c)
|
Includes a charge of
$15.0 million
related to the settlement of a disputed land transaction for the
three and nine months ended
September 30, 2016
, and a charge of
$20.0 million
resulting from the Applecross matter for the
three and nine months ended
September 30, 2015
(see
Note 8
). Also includes lease exit and related costs of $4.6 million and $10.6 million for the three and nine months ended September 30, 2016, respectively (see
Note 1
).
|
(d)
|
Net new orders excludes backlog acquired from Wieland in January 2016 (see
Note 1
). Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
September 30,
|
|
September 30,
|
|||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Write-off of deposits and pre-acquisition costs
|
$
|
2,541
|
|
|
$
|
522
|
|
|
$
|
12,996
|
|
|
$
|
3,633
|
|
Lease exit and related costs
|
4,644
|
|
|
275
|
|
|
10,589
|
|
|
497
|
|
||||
Amortization of intangible assets
|
3,450
|
|
|
3,225
|
|
|
10,350
|
|
|
9,675
|
|
||||
Interest income
|
(887
|
)
|
|
(504
|
)
|
|
(2,659
|
)
|
|
(2,458
|
)
|
||||
Interest expense
|
165
|
|
|
203
|
|
|
526
|
|
|
598
|
|
||||
Equity in earnings of unconsolidated entities
|
(485
|
)
|
|
(2,192
|
)
|
|
(4,489
|
)
|
|
(4,464
|
)
|
||||
Miscellaneous, net
|
14,347
|
|
|
19,804
|
|
|
15,429
|
|
|
16,157
|
|
||||
|
$
|
23,775
|
|
|
$
|
21,333
|
|
|
$
|
42,742
|
|
|
$
|
23,638
|
|
|
September 30,
2016 |
|
September 30,
2015 |
||
Sold
|
7,053
|
|
|
6,491
|
|
Unsold
|
|
|
|
||
Under construction
|
1,581
|
|
|
1,015
|
|
Completed
|
601
|
|
|
343
|
|
|
2,182
|
|
|
1,358
|
|
Models
|
1,059
|
|
|
967
|
|
Total
|
10,294
|
|
|
8,816
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||
|
Owned
|
|
Optioned
|
|
Controlled
|
|
Owned
|
|
Optioned
|
|
Controlled
|
||||||
Northeast
|
6,490
|
|
|
4,316
|
|
|
10,806
|
|
|
6,361
|
|
|
4,114
|
|
|
10,475
|
|
Southeast
(a)
|
16,867
|
|
|
8,284
|
|
|
25,151
|
|
|
11,161
|
|
|
7,933
|
|
|
19,094
|
|
Florida
|
21,592
|
|
|
9,787
|
|
|
31,379
|
|
|
21,230
|
|
|
9,636
|
|
|
30,866
|
|
Midwest
|
12,606
|
|
|
7,668
|
|
|
20,274
|
|
|
13,093
|
|
|
6,985
|
|
|
20,078
|
|
Texas
|
13,938
|
|
|
8,871
|
|
|
22,809
|
|
|
13,308
|
|
|
7,052
|
|
|
20,360
|
|
West
|
30,383
|
|
|
4,450
|
|
|
34,833
|
|
|
30,766
|
|
|
6,440
|
|
|
37,206
|
|
Total
|
101,876
|
|
|
43,376
|
|
|
145,252
|
|
|
95,919
|
|
|
42,160
|
|
|
138,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Developed (%)
|
30
|
%
|
|
18
|
%
|
|
27
|
%
|
|
28
|
%
|
|
12
|
%
|
|
23
|
%
|
(a)
|
Southeast includes the acquisition of substantially all of the assets of Wieland in January 2016 (see
Note 1
).
|
Northeast:
|
|
Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia
|
Southeast:
|
|
Georgia, North Carolina, South Carolina, Tennessee
|
Florida:
|
|
Florida
|
Midwest:
|
|
Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio
|
Texas:
|
|
Texas
|
West:
|
|
Arizona, California, Nevada, New Mexico, Washington
|
|
Operating Data by Segment ($000's omitted)
|
||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||||||
|
2016
|
|
2016 vs. 2015
|
|
2015
|
|
2016
|
|
2016 vs. 2015
|
|
2015
|
||||||||||
Home sale revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
$
|
155,076
|
|
|
(14
|
)%
|
|
$
|
181,157
|
|
|
$
|
426,212
|
|
|
—
|
%
|
|
$
|
427,851
|
|
Southeast
(a)
|
372,639
|
|
|
32
|
%
|
|
282,051
|
|
|
1,052,689
|
|
|
48
|
%
|
|
713,090
|
|
||||
Florida
|
306,323
|
|
|
24
|
%
|
|
247,159
|
|
|
856,703
|
|
|
30
|
%
|
|
657,555
|
|
||||
Midwest
|
342,332
|
|
|
34
|
%
|
|
255,884
|
|
|
817,709
|
|
|
24
|
%
|
|
657,393
|
|
||||
Texas
|
261,693
|
|
|
29
|
%
|
|
203,243
|
|
|
729,170
|
|
|
29
|
%
|
|
565,179
|
|
||||
West
|
443,655
|
|
|
51
|
%
|
|
294,637
|
|
|
1,145,360
|
|
|
48
|
%
|
|
774,298
|
|
||||
|
$
|
1,881,718
|
|
|
29
|
%
|
|
$
|
1,464,131
|
|
|
$
|
5,027,843
|
|
|
32
|
%
|
|
$
|
3,795,366
|
|
Income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
(b)
|
$
|
6,056
|
|
|
(54
|
)%
|
|
$
|
13,208
|
|
|
$
|
34,884
|
|
|
(8
|
)%
|
|
$
|
38,065
|
|
Southeast
(a)
|
36,370
|
|
|
(20
|
)%
|
|
45,708
|
|
|
96,898
|
|
|
(12
|
)%
|
|
110,203
|
|
||||
Florida
|
45,891
|
|
|
(6
|
)%
|
|
49,046
|
|
|
130,546
|
|
|
7
|
%
|
|
121,585
|
|
||||
Midwest
|
36,792
|
|
|
46
|
%
|
|
25,270
|
|
|
68,665
|
|
|
67
|
%
|
|
41,080
|
|
||||
Texas
|
38,878
|
|
|
49
|
%
|
|
26,035
|
|
|
103,618
|
|
|
41
|
%
|
|
73,313
|
|
||||
West
|
55,347
|
|
|
51
|
%
|
|
36,633
|
|
|
130,683
|
|
|
30
|
%
|
|
100,154
|
|
||||
Other homebuilding
(c)
|
(28,271
|
)
|
|
9
|
%
|
|
(30,989
|
)
|
|
(93,252
|
)
|
|
(31
|
)%
|
|
(71,104
|
)
|
||||
|
$
|
191,063
|
|
|
16
|
%
|
|
$
|
164,911
|
|
|
$
|
472,042
|
|
|
14
|
%
|
|
$
|
413,296
|
|
Closings (units):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
317
|
|
|
(21
|
)%
|
|
401
|
|
|
889
|
|
|
(8
|
)%
|
|
965
|
|
||||
Southeast
(a)
|
948
|
|
|
10
|
%
|
|
865
|
|
|
2,799
|
|
|
24
|
%
|
|
2,249
|
|
||||
Florida
|
836
|
|
|
17
|
%
|
|
712
|
|
|
2,348
|
|
|
23
|
%
|
|
1,910
|
|
||||
Midwest
|
938
|
|
|
24
|
%
|
|
756
|
|
|
2,276
|
|
|
15
|
%
|
|
1,984
|
|
||||
Texas
|
948
|
|
|
15
|
%
|
|
821
|
|
|
2,646
|
|
|
14
|
%
|
|
2,321
|
|
||||
West
|
1,050
|
|
|
31
|
%
|
|
801
|
|
|
2,796
|
|
|
37
|
%
|
|
2,036
|
|
||||
|
5,037
|
|
|
16
|
%
|
|
4,356
|
|
|
13,754
|
|
|
20
|
%
|
|
11,465
|
|
||||
Average selling price:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
$
|
489
|
|
|
8
|
%
|
|
$
|
452
|
|
|
$
|
479
|
|
|
8
|
%
|
|
$
|
443
|
|
Southeast
(a)
|
393
|
|
|
21
|
%
|
|
326
|
|
|
376
|
|
|
19
|
%
|
|
317
|
|
||||
Florida
|
366
|
|
|
6
|
%
|
|
347
|
|
|
365
|
|
|
6
|
%
|
|
344
|
|
||||
Midwest
|
365
|
|
|
8
|
%
|
|
338
|
|
|
359
|
|
|
8
|
%
|
|
331
|
|
||||
Texas
|
276
|
|
|
12
|
%
|
|
248
|
|
|
276
|
|
|
13
|
%
|
|
244
|
|
||||
West
|
423
|
|
|
15
|
%
|
|
368
|
|
|
410
|
|
|
8
|
%
|
|
380
|
|
||||
|
$
|
374
|
|
|
11
|
%
|
|
$
|
336
|
|
|
$
|
366
|
|
|
10
|
%
|
|
$
|
331
|
|
(a)
|
Southeast includes the acquisition in January 2016 of substantially all of the assets of Wieland (see
Note 1
).
|
(b)
|
Northeast includes a charge of
$15.0 million
related to the settlement of a disputed land transaction for the
three and nine months ended
September 30, 2016
, and a charge of
$20.0 million
resulting from the Applecross matter for the
three and nine months ended
September 30, 2015
(see
Note 8
).
|
(c)
|
Other homebuilding includes the amortization of intangible assets, amortization of capitalized interest, and other items not allocated to the operating segments. For the
three and nine months ended
September 30, 2015
, Other homebuilding also includes a reserve reversal of
$5.7 million
and
$32.6 million
, respectively resulting from a favorable legal settlement.
|
|
Operating Data by Segment ($000's omitted)
|
||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||||||
|
2016
|
|
2016 vs. 2015
|
|
2015
|
|
2016
|
|
2016 vs. 2015
|
|
2015
|
||||||||||
Net new orders - units:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
325
|
|
|
(6
|
)%
|
|
346
|
|
|
1,055
|
|
|
(14
|
)%
|
|
1,226
|
|
||||
Southeast
(a)
|
938
|
|
|
20
|
%
|
|
780
|
|
|
3,006
|
|
|
9
|
%
|
|
2,759
|
|
||||
Florida
|
946
|
|
|
25
|
%
|
|
755
|
|
|
2,880
|
|
|
17
|
%
|
|
2,471
|
|
||||
Midwest
|
817
|
|
|
28
|
%
|
|
639
|
|
|
2,870
|
|
|
29
|
%
|
|
2,232
|
|
||||
Texas
|
852
|
|
|
22
|
%
|
|
698
|
|
|
3,009
|
|
|
7
|
%
|
|
2,808
|
|
||||
West
|
897
|
|
|
3
|
%
|
|
874
|
|
|
3,304
|
|
|
16
|
%
|
|
2,853
|
|
||||
|
4,775
|
|
|
17
|
%
|
|
4,092
|
|
|
16,124
|
|
|
12
|
%
|
|
14,349
|
|
||||
Net new orders - dollars:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
$
|
154,551
|
|
|
(3
|
)%
|
|
$
|
159,054
|
|
|
$
|
517,282
|
|
|
(5
|
)%
|
|
$
|
546,356
|
|
Southeast
(a)
|
381,992
|
|
|
42
|
%
|
|
268,591
|
|
|
1,165,970
|
|
|
28
|
%
|
|
911,631
|
|
||||
Florida
|
349,962
|
|
|
31
|
%
|
|
266,893
|
|
|
1,069,220
|
|
|
21
|
%
|
|
884,506
|
|
||||
Midwest
|
304,948
|
|
|
34
|
%
|
|
227,138
|
|
|
1,048,700
|
|
|
31
|
%
|
|
800,855
|
|
||||
Texas
|
241,242
|
|
|
24
|
%
|
|
194,272
|
|
|
834,874
|
|
|
14
|
%
|
|
735,354
|
|
||||
West
|
398,644
|
|
|
14
|
%
|
|
349,374
|
|
|
1,451,288
|
|
|
37
|
%
|
|
1,061,858
|
|
||||
|
$
|
1,831,339
|
|
|
25
|
%
|
|
$
|
1,465,322
|
|
|
$
|
6,087,334
|
|
|
23
|
%
|
|
$
|
4,940,560
|
|
Cancellation rates:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
11
|
%
|
|
|
|
15
|
%
|
|
11
|
%
|
|
|
|
12
|
%
|
||||||
Southeast
(a)
|
15
|
%
|
|
|
|
12
|
%
|
|
14
|
%
|
|
|
|
9
|
%
|
||||||
Florida
|
11
|
%
|
|
|
|
10
|
%
|
|
11
|
%
|
|
|
|
10
|
%
|
||||||
Midwest
|
15
|
%
|
|
|
|
15
|
%
|
|
12
|
%
|
|
|
|
13
|
%
|
||||||
Texas
|
20
|
%
|
|
|
|
26
|
%
|
|
17
|
%
|
|
|
|
18
|
%
|
||||||
West
|
21
|
%
|
|
|
|
22
|
%
|
|
18
|
%
|
|
|
|
17
|
%
|
||||||
|
16
|
%
|
|
|
|
17
|
%
|
|
14
|
%
|
|
|
|
13
|
%
|
||||||
Unit backlog:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
|
|
|
|
|
|
610
|
|
|
(16
|
)%
|
|
722
|
|
|||||||
Southeast
(a)
|
|
|
|
|
|
|
1,669
|
|
|
13
|
%
|
|
1,478
|
|
|||||||
Florida
|
|
|
|
|
|
|
1,806
|
|
|
16
|
%
|
|
1,563
|
|
|||||||
Midwest
|
|
|
|
|
|
|
1,683
|
|
|
17
|
%
|
|
1,436
|
|
|||||||
Texas
|
|
|
|
|
|
|
1,708
|
|
|
(3
|
)%
|
|
1,760
|
|
|||||||
West
|
|
|
|
|
|
|
1,941
|
|
|
9
|
%
|
|
1,775
|
|
|||||||
|
|
|
|
|
|
|
9,417
|
|
|
8
|
%
|
|
8,734
|
|
|||||||
Backlog dollars:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Northeast
|
|
|
|
|
|
|
$
|
302,602
|
|
|
(10
|
)%
|
|
$
|
334,482
|
|
|||||
Southeast
(a)
|
|
|
|
|
|
|
699,710
|
|
|
40
|
%
|
|
499,574
|
|
|||||||
Florida
|
|
|
|
|
|
|
702,801
|
|
|
22
|
%
|
|
576,919
|
|
|||||||
Midwest
|
|
|
|
|
|
|
613,351
|
|
|
19
|
%
|
|
513,498
|
|
|||||||
Texas
|
|
|
|
|
|
|
481,364
|
|
|
—
|
%
|
|
481,599
|
|
|||||||
West
|
|
|
|
|
|
|
899,092
|
|
|
32
|
%
|
|
682,983
|
|
|||||||
|
|
|
|
|
|
|
$
|
3,698,920
|
|
|
20
|
%
|
|
$
|
3,089,055
|
|
(a)
|
Southeast includes the acquisition of substantially all of the assets of Wieland in January 2016 (see
Note 1
).
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||||||
|
2016
|
|
2016 vs. 2015
|
|
2015
|
|
2016
|
|
2016 vs. 2015
|
|
2015
|
||||||||||
Mortgage operations revenues
|
$
|
38,320
|
|
|
21
|
%
|
|
$
|
31,714
|
|
|
$
|
100,162
|
|
|
28
|
%
|
|
$
|
78,106
|
|
Title services revenues
|
9,700
|
|
|
34
|
%
|
|
7,253
|
|
|
26,788
|
|
|
39
|
%
|
|
19,213
|
|
||||
Total Financial Services revenues
|
48,020
|
|
|
23
|
%
|
|
38,967
|
|
|
126,950
|
|
|
30
|
%
|
|
97,319
|
|
||||
Expenses
|
26,906
|
|
|
9
|
%
|
|
24,602
|
|
|
79,204
|
|
|
17
|
%
|
|
67,909
|
|
||||
Other expense (income), net
|
(158
|
)
|
|
100
|
%
|
|
—
|
|
|
(340
|
)
|
|
100
|
%
|
|
1
|
|
||||
Income before income taxes
|
$
|
21,272
|
|
|
48
|
%
|
|
$
|
14,365
|
|
|
$
|
48,086
|
|
|
64
|
%
|
|
$
|
29,409
|
|
Total originations
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
3,417
|
|
|
14
|
%
|
|
2,992
|
|
|
9,123
|
|
|
20
|
%
|
|
7,615
|
|
||||
Principal
|
$
|
945,859
|
|
|
23
|
%
|
|
$
|
766,450
|
|
|
$
|
2,481,177
|
|
|
29
|
%
|
|
$
|
1,916,391
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Supplemental data:
|
|
|
|
||||
Capture rate
|
80.9
|
%
|
|
82.9
|
%
|
||
Average FICO score
|
750
|
|
|
749
|
|
||
Loan application backlog
|
$
|
2,057,460
|
|
|
$
|
1,683,300
|
|
Funded origination breakdown:
|
|
|
|
||||
FHA
|
10
|
%
|
|
12
|
%
|
||
VA
|
13
|
%
|
|
13
|
%
|
||
USDA
|
1
|
%
|
|
1
|
%
|
||
Other agency
|
70
|
%
|
|
68
|
%
|
||
Total agency
|
94
|
%
|
|
94
|
%
|
||
Non-agency
|
6
|
%
|
|
6
|
%
|
||
Total funded originations
|
100
|
%
|
|
100
|
%
|
|
As of September 30, 2016 for the
Years ending December 31, |
||||||||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
|
Fair
Value |
||||||||||||||||
Rate-sensitive liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed rate debt
|
$
|
2,033
|
|
|
$
|
133,634
|
|
|
$
|
—
|
|
|
$
|
3,900
|
|
|
$
|
3,900
|
|
|
$
|
3,000,000
|
|
|
$
|
3,143,467
|
|
|
$
|
3,291,345
|
|
Average interest rate
|
2.86
|
%
|
|
7.16
|
%
|
|
—
|
%
|
|
5.00
|
%
|
|
5.00
|
%
|
|
5.51
|
%
|
|
5.58
|
%
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Variable rate debt (a)
|
$
|
—
|
|
|
$
|
158,793
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158,793
|
|
|
$
|
158,793
|
|
Average interest rate
|
—
|
%
|
|
2.90
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.90
|
%
|
|
|
|
Total number
of shares
purchased (1)
|
|
Average
price paid
per share (1)
|
|
Total number of
shares purchased
as part of publicly
announced plans
or programs
|
|
Approximate dollar
value of shares
that may yet be
purchased under
the plans or
programs
($000’s omitted)
|
|||||||
July 1, 2016 to July 30, 2016
|
770,178
|
|
|
$
|
20.26
|
|
|
770,178
|
|
|
$
|
1,491,505
|
|
(2)
|
August 1, 2016 to August 31, 2016
|
5,425,006
|
|
|
$
|
21.35
|
|
|
5,425,006
|
|
|
$
|
1,375,665
|
|
(2)
|
September 1, 2016 to September 30, 2016
|
5,842,475
|
|
|
$
|
20.30
|
|
|
5,841,642
|
|
|
$
|
1,257,084
|
|
(2)
|
Total
|
12,037,659
|
|
|
$
|
20.77
|
|
|
12,036,826
|
|
|
|
|
(1)
|
During the
third
quarter of
2016
, participants surrendered
833
shares for payment of minimum tax obligations upon the vesting or exercise of previously granted share-based compensation awards. Such shares were not repurchased as part of our publicly-announced share repurchase programs.
|
(2)
|
The Board of Directors approved share repurchase authorizations totaling $300.0 million and $1.0 billion in December 2015 and July 2016, respectively. During the
nine months ended
September 30, 2016
, we repurchased
17.7 million
shares for a total of
$347.7 million
. The share repurchase authorization has
$1.3 billion
remaining as of
September 30, 2016
. There is no expiration date for this program.
|
3
|
|
(a)
|
|
Restated Articles of Incorporation, of PulteGroup, Inc. (Incorporated by reference to Exhibit 3.1 of our Current Report on Form 8-K, filed with the SEC on August 18, 2009)
|
|
|
|
|
|
|
|
(b)
|
|
Certificate of Amendment to the Articles of Incorporation, dated March 18, 2010 (Incorporated by reference to Exhibit 3(b) of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010)
|
|
|
|
|
|
|
|
(c)
|
|
Certificate of Amendment to the Articles of Incorporation, dated May 21, 2010 (Incorporated by reference to Exhibit 3(c) of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2010)
|
|
|
|
|
|
|
|
(d)
|
|
By-laws, as amended, of PulteGroup, Inc. (Incorporated by reference to Exhibit 3.2 of our Current Report on Form 8-K, filed with the SEC on May 6, 2016)
|
|
|
|
|
|
|
|
(e)
|
|
Certificate of Designation of Series A Junior Participating Preferred Shares, dated August 6, 2009 (Incorporated by reference to Exhibit 3(b) of our Registration Statement on Form 8-A, filed with the SEC on August 18, 2009)
|
|
|
|
|
|
4
|
|
(a)
|
|
Any instrument with respect to long-term debt, where the securities authorized thereunder do not exceed 10% of the total assets of PulteGroup, Inc. and its subsidiaries, has not been filed. The Company agrees to furnish a copy of such instruments to the SEC upon request.
|
|
|
|
|
|
|
|
(b)
|
|
Amended and Restated Section 382 Rights Agreement, dated as of March 18, 2010, between PulteGroup, Inc. and Computershare Trust Company, N.A., as rights agent, which includes the Form of Rights Certificate as Exhibit B thereto (Incorporated by reference to Exhibit 4 of PulteGroup, Inc.’s Registration Statement on Form 8-A/A, filed with the SEC on March 23, 2010)
|
|
|
|
|
|
|
|
(c)
|
|
Second Amendment to Amended and Restated Section 382 Rights Agreement, dated as of March 10, 2016, between PulteGroup, Inc. and Computershare Trust Company, N.A., as rights agent (Incorporated by reference to Exhibit 4.1 of PulteGroup, Inc.’s Current Report on Form 8-K, filed with the SEC on March 10, 2016)
|
|
|
|
|
|
10
|
|
(a)
|
|
Letter Agreement, dated July 20, 2016, by and between Elliott Associates, L.P., Elliott International, L.P.
and PulteGroup, Inc. (Incorporated by reference to Exhibit 10(d) of PulteGroup, Inc.'s Form 10-Q ,filed
with the SEC on July 21, 2016)
|
|
|
|
|
|
|
|
(b)
|
|
Third Amendment to Amended and Restated Master Repurchase Agreement dated August 15, 2016
(Incorporated by reference to Exhibit 10.1 of PulteGroup, Inc.'s Current Report on Form 8-K, filed with
the SEC on August 17, 2016)
|
|
|
|
|
|
|
|
(c)
|
|
Letter Agreement by and among William J. Pulte (grandson of the founder), William J. Pulte (founder), William J. Pulte Trust dtd 01/26/90, Joan B. Pulte Trust dtd 01/26/90 and PulteGroup, Inc., dated September 8, 2016 (Incorporated by reference to Exhibit 10.1 of PulteGroup, Inc.'s Current Report on Form 8-K, filed with the SEC on September 8, 2016)
|
|
|
|
|
|
|
|
(d)
|
|
Transition Agreement by and between PulteGroup, Inc. and Richard J. Dugas, Jr., dated September 8, 2016 (Incorporated by reference to Exhibit 10.2 of PulteGroup, Inc.'s Current Report on Form 8-K, filed with the SEC on September 8, 2016)
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12
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(a)
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Computation of Ratio of Earnings to Fixed Charges for the six months ended June 30, 2016 and 2015 (Incorporated by reference to Exhibit 12.1 of PulteGroup, Inc.'s Current Report on Form 8-K, filed with the SEC on July 26, 2016)
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31
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(a)
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Rule 13a-14(a) Certification by Ryan R. Marshall, President and Chief Executive Officer (Filed herewith)
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(b)
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Rule 13a-14(a) Certification by Robert T. O'Shaughnessy, Executive Vice President and Chief Financial Officer (Filed herewith)
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32
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Certification Pursuant to 18 United States Code § 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934 (Filed herewith)
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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PULTEGROUP, INC.
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/s/ Robert T. O'Shaughnessy
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Robert T. O'Shaughnessy
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer and duly authorized officer)
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Date:
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October 20, 2016
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1 Year PulteGroup Chart |
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