TAYLOR MORRISON HOME CORP, 10-K filed on 2/22/2023
Annual Report
v3.22.4
Cover - USD ($)
 12 Months Ended
Dec. 31, 2022
Feb. 22, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2022    
Document Transition Report false    
Entity File Number 001-35873    
Entity Registrant Name TAYLOR MORRISON HOME CORP    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 83-2026677    
Entity Address, Address Line One 4900 N. Scottsdale Road    
Entity Address, Address Line Two Suite 2000    
Entity Address, City or Town Scottsdale    
Entity Address, State or Province AZ    
Entity Address, Postal Zip Code 85251    
City Area Code 480    
Local Phone Number 840-8100    
Title of 12(b) Security Common Stock, $0.00001 par value    
Trading Symbol TMHC    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 2,617,578,029
Entity Common Stock, Shares Outstanding   108,298,630  
Amendment Flag false    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001562476    
Documents Incorporated by Reference
Documents Incorporated by Reference
Portions of Part III of this Form 10-K are incorporated by reference from the registrant’s definitive proxy statement for its 2023 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year.
    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Name DELOITTE & TOUCHE LLP
Auditor Firm ID 34
Auditor Location Tempe, Arizona
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 724,488 $ 832,821
Restricted cash 2,147 3,519
Total cash, cash equivalents, and restricted cash 726,635 836,340
Real estate inventory:    
Owned inventory 5,346,905 5,444,207
Consolidated real estate not owned 23,971 55,314
Total real estate inventory 5,370,876 5,499,521
Land deposits 263,356 229,535
Mortgage loans held for sale 346,364 467,534
Derivative assets 1,090 2,110
Lease right of use assets 90,446 85,863
Prepaid expenses and other assets, net 264,302 314,986
Other receivables, net 191,504 150,864
Investments in unconsolidated entities 282,900 171,406
Deferred tax assets, net 67,656 151,240
Property and equipment, net 202,398 155,181
Goodwill 663,197 663,197
Total assets 8,470,724 8,727,777
Liabilities    
Accounts payable 269,761 253,348
Accrued expenses and other liabilities 490,253 525,209
Lease liabilities 100,174 96,172
Customer deposits 412,092 485,705
Estimated development liabilities 43,753 38,923
Senior notes, net 1,816,303 2,452,322
Loans payable and other borrowings 361,486 404,386
Revolving credit facility borrowings 0 31,529
Mortgage warehouse borrowings 306,072 413,887
Liabilities attributable to consolidated real estate not owned 23,971 55,314
Total liabilities 3,823,865 4,756,795
COMMITMENTS AND CONTINGENCIES (Note 14)
Stockholders’ Equity    
Common stock, $0.00001 par value, 400,000,000 shares authorized, 159,392,185 and 158,662,208 shares issued, 107,995,262 and 121,883,649 shares outstanding as of December 31, 2022 and December 31, 2021, respectively 1 1
Additional paid-in capital 3,025,489 2,997,211
Treasury stock at cost, 51,396,923 and 36,828,559 shares as of December 31, 2022 and December 31, 2021, respectively (1,137,138) (760,863)
Retained Earnings 2,741,615 1,688,815
Accumulated other comprehensive income 359 689
Total stockholders' equity attributable to TMHC 4,630,326 3,925,853
Non-controlling interests — joint ventures 16,533 45,129
Total stockholders’ equity 4,646,859 3,970,982
Total liabilities and stockholders’ equity $ 8,470,724 $ 8,727,777
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 400,000,000 400,000,000
Common stock, shares, issued (in shares) 159,392,185 158,662,208
Common stock, shares, outstanding (in shares) 107,995,262 121,883,649
Treasury stock, shares (in shares) 51,396,923 36,828,559
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total revenue $ 8,224,917 $ 7,501,265 $ 6,129,320
Total cost of revenues 6,132,551 5,953,384 5,085,101
Gross margin 2,092,366 1,547,881 1,044,219
Sales, commissions and other marketing costs 398,074 400,376 377,496
General and administrative expenses 245,138 267,966 194,879
Net loss/(income) from unconsolidated entities 14,184 (11,130) (11,176)
Interest expense/(income), net 17,674 3,792 (1,606)
Other expense, net 38,497 23,769 23,092
(Gain)/loss on extinguishment of debt, net (13,876) 0 10,247
Transaction expenses 0 0 127,170
Income before income taxes 1,392,675 863,108 324,117
Income tax provision 336,428 180,741 74,590
Net income before allocation to non-controlling interests 1,056,247 682,367 249,527
Net income attributable to non-controlling interests — joint ventures (3,447) (19,341) (6,088)
Net income available to Taylor Morrison Home Corporation $ 1,052,800 $ 663,026 $ 243,439
Earnings per common share      
Basic (in dollars per share) $ 9.16 $ 5.26 $ 1.90
Diluted (in dollars per share) $ 9.06 $ 5.18 $ 1.88
Weighted average number of shares of common stock:      
Basic (in shares) 114,982 126,077 127,812
Diluted (in shares) 116,221 128,019 129,170
Home closings      
Total revenue $ 7,889,371 $ 7,171,433 $ 5,863,652
Total cost of revenues 5,904,458 5,713,905 4,887,757
Land closings      
Total revenue 81,070 99,444 65,269
Total cost of revenues 63,644 83,853 64,432
Financial services      
Total revenue 135,491 164,615 155,827
Total cost of revenues 83,960 101,848 88,910
Amenity and other      
Total revenue 118,985 65,773 44,572
Total cost of revenues $ 80,489 $ 53,778 $ 44,002
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Income before non-controlling interests, net of tax $ 1,056,247 $ 682,367 $ 249,527
Post-retirement benefits adjustments, net of tax (330) 1,855 (2,050)
Comprehensive income 1,055,917 684,222 247,477
Comprehensive income attributable to non-controlling interests — joint ventures (3,447) (19,341) (6,088)
Comprehensive income available to Taylor Morrison Home Corporation $ 1,052,470 $ 664,881 $ 241,389
v3.22.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Non-controlling Interest
Balance, beginning of period (in shares) at Dec. 31, 2019   105,851,285   19,943,432      
Balance, beginning of period at Dec. 31, 2019 $ 2,545,712 $ 1 $ 2,097,995 $ (343,524) $ 782,350 $ 884 $ 8,006
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 249,527       243,439   6,088
Other comprehensive income (loss) (2,050)         (2,050)  
Exercise of stock options (in shares)   551,845          
Exercise of stock options 9,579   9,579        
Issuance of restricted stock units, net of shares withheld for tax (in shares) [1]   687,818          
Issuance of restricted stock units, net of shares withheld for tax [1] (9,228)   (9,228)        
Issuance of equity in connection with business combinations (in shares)   28,327,290          
Issuance of equity in connection with business combinations 787,877   787,877        
Repurchase of common stock (shares)   (5,941,324)   (5,941,324)      
Repurchase of common stock (103,332)     $ (103,332)      
Common stock surrendered in connection with warrant exercise 0            
Stock compensation expense 27,023   27,023        
Stock compensation expense related to WLH acquisition 5,106   5,106        
WLH equity award accelerations due to change in control 8,421   8,421        
Distributions to non-controlling interests of consolidated joint ventures (46,938)           (46,938)
Changes in non-controlling interests of consolidated joint ventures 122,053           122,053
Balance, end of period (in shares) at Dec. 31, 2020   129,476,914   25,884,756      
Balance, end of period at Dec. 31, 2020 3,593,750 $ 1 2,926,773 $ (446,856) 1,025,789 (1,166) 89,209
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 682,367       663,026   19,341
Other comprehensive income (loss) 1,855         1,855  
Exercise of stock options (in shares)   1,204,283          
Exercise of stock options 23,331   23,331        
Issuance of restricted stock units, net of shares withheld for tax (in shares) [1]   392,050          
Issuance of restricted stock units, net of shares withheld for tax [1] (5,420)   (5,420)        
Warrant exercises (in shares)   1,704,205          
Warrant exercises $ 32,584   32,584        
Repurchase of common stock (shares) (9,918,104) (9,918,104)   (9,918,104)      
Repurchase of common stock $ (281,420)     $ (281,420)      
Common stock surrendered in connection with warrant exercise (in shares)   (1,025,699)   (1,025,699)      
Common stock surrendered in connection with warrant exercise (32,587)     $ (32,587)      
Stock compensation expense 19,943   19,943        
Distributions to non-controlling interests of consolidated joint ventures (62,734)           (62,734)
Changes in non-controlling interests of consolidated joint ventures (687)           (687)
Balance, end of period (in shares) at Dec. 31, 2021   121,833,649   36,828,559      
Balance, end of period at Dec. 31, 2021 3,970,982 $ 1 2,997,211 $ (760,863) 1,688,815 689 45,129
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,056,247       1,052,800   3,447
Other comprehensive income (loss) (330)         (330)  
Exercise of stock options (in shares)   323,625          
Exercise of stock options 6,697   6,697        
Issuance of restricted stock units, net of shares withheld for tax (in shares) [1]   406,352          
Issuance of restricted stock units, net of shares withheld for tax [1] $ (5,320)   (5,320)        
Repurchase of common stock (shares) (14,568,364) (14,568,364)   (14,568,364)      
Repurchase of common stock $ (376,275)     $ (376,275)      
Common stock surrendered in connection with warrant exercise 0            
Stock compensation expense 26,901   26,901        
Distributions to non-controlling interests of consolidated joint ventures (31,261)           (31,261)
Changes in non-controlling interests of consolidated joint ventures (782)           (782)
Balance, end of period (in shares) at Dec. 31, 2022   107,995,262   51,396,923      
Balance, end of period at Dec. 31, 2022 $ 4,646,859 $ 1 $ 3,025,489 $ (1,137,138) $ 2,741,615 $ 359 $ 16,533
[1] Dollar amount represents the value of shares withheld for taxes.
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income before allocation to non-controlling interests $ 1,056,247,000 $ 682,367,000 $ 249,527,000
Adjustments to reconcile net income to net cash provided by operating activities:      
Net loss/(income) from unconsolidated entities 14,184,000 (11,130,000) (11,176,000)
Stock compensation expense 26,901,000 19,943,000 32,129,000
Distributions of earnings from unconsolidated entities 5,270,000 10,740,000 11,564,000
(Gain)/loss on extinguishment of debt (13,876,000) 0 10,247,000
Gain on land transfers, net (14,508,000) 0 0
Depreciation and amortization 33,839,000 39,980,000 37,336,000
Lease expense 27,420,000 17,885,000 16,785,000
Debt issuance costs/(premium) amortization 2,260,000 539,000 (1,852,000)
Deferred income taxes 83,584,000 86,838,000 50,582,000
Inventory impairments and pre-acquisition abandonment charges 24,870,000 0 9,611,000
Land held for sale impairments 0 4,663,000 4,347,000
Change in Urban Form/BTR assets due to sales 42,046,000 20,440,000 0
Changes in operating assets and liabilities:      
Real estate inventory and land deposits (50,792,000) (343,127,000) 535,238,000
Mortgages held for sale, prepaid expenses and other assets 5,789,000 (511,220,000) (35,878,000)
Customer deposits (73,613,000) 174,448,000 132,446,000
Accounts payable, estimated development liabilities, and accrued expenses and other liabilities (61,849,000) 197,121,000 62,329,000
Income taxes payable 0 (12,841,000) 20,047,000
Net cash provided by operating activities 1,107,772,000 376,646,000 1,123,282,000
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of property and equipment (30,581,000) (21,199,000) (37,760,000)
Payments for business acquisitions, net of cash acquired 0 0 (279,048,000)
Distributions of capital from unconsolidated entities 125,275,000 31,915,000 40,062,000
Investments of capital into unconsolidated entities (109,574,000) (74,976,000) (36,058,000)
Payments to acquire investments and securities 0 (10,000,000) 0
Net cash used in investing activities (14,880,000) (74,260,000) (312,804,000)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Increase in loans payable and other borrowings 38,202,000 130,493,000 93,440,000
Repayments of loans payable and other borrowings (71,172,000) (124,786,000) (141,103,000)
Borrowings on revolving credit facility 381,019,000 131,529,000 830,000,000
Payments on revolving credit facility (412,548,000) (100,000,000) (830,000,000)
Borrowings on mortgage warehouse 2,662,241,000 3,327,954,000 2,448,980,000
Repayment on mortgage warehouse (2,770,056,000) (3,041,356,000) (2,489,867,000)
Proceeds from issuance of senior notes 0 0 500,000,000
Repayments on senior notes (622,780,000) 0 (861,775,000)
Payment of deferred financing costs 0 0 (6,351,000)
Proceeds from stock option exercises 6,697,000 23,331,000 9,579,000
Payment of principle portion of finance lease (1,344,000) (1,345,000) (1,325,000)
Repurchase of common stock, net (376,275,000) (281,420,000) (103,332,000)
Payment of taxes related to net share settlement of equity awards (5,320,000) (5,420,000) (9,228,000)
Distributions to non-controlling interests of consolidated joint ventures, net (31,261,000) (59,135,000) (8,291,000)
Payment to acquire non-controlling interests 0 0 (35,668,000)
Net cash used in financing activities (1,202,597,000) (155,000) (604,941,000)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (109,705,000) 302,231,000 205,537,000
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 836,340,000 534,109,000 328,572,000
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period 726,635,000 836,340,000 534,109,000
SUPPLEMENTAL CASH FLOW INFORMATION:      
Income taxes paid, net (270,034,000) (146,171,000) (3,357,000)
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Change in loans payable issued to sellers in connection with land purchase contracts 231,027,000 279,646,000 193,308,000
Change in inventory not owned (31,343,000) (67,459,000) (86,393,000)
Investments of land in unconsolidated joint ventures, net 146,649,000 0 0
Impairment in unconsolidated joint ventures (14,714,000) 0 0
Issuance of common stock in connection with business acquisition 0 0 797,970,000
Net non-cash (distributions)/contributions (to)/from unconsolidated entities 0 (3,599,000) 5,002,000
Non-cash portion of loss on debt extinguishment 0 0 1,723,000
Common stock surrendered in connection with warrant exercise 0 32,587,000 0
Common stock issued in connection with warrant exercise $ 0 $ (32,584,000) $ 0
v3.22.4
BUSINESS
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESSDescription of the Business — Taylor Morrison Home Corporation (“TMHC”), through its subsidiaries (together with TMHC referred to herein as “we,” “our,” “the Company” and “us”), owns and operates a residential homebuilding business and is a land developer. We operate in the states of Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. We provide an assortment of homes across a wide range of price points to appeal to an array of consumer groups. We design, build and sell single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and 55-plus active lifestyle buyers. We are the general contractors for all real estate projects and retain subcontractors for home construction and land development. Our homebuilding segments operate under our Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade brand names. We also have a “Build-to-Rent” homebuilding business which operates under the Yardly brand name. In addition, we develop and construct multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand. We also have operations which provide financial services to customers through our wholly owned mortgage subsidiary, Taylor Morrison Home Funding, INC (“TMHF”), title services through our wholly owned title services subsidiary, Inspired Title Services, LLC (“Inspired Title”), and homeowner’s insurance policies through our insurance agency, Taylor Morrison Insurance Services, LLC (“TMIS”). Our business is organized into multiple homebuilding operating components, and a financial services component, all of which are managed as four reportable segments: East, Central, West, and Financial Services.
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation.

Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests - joint ventures” on the Consolidated Statement of Operations. The assets, liabilities and equity from the percentage of the joint venture not owned by us is presented as “Non-controlling interests - joint ventures” on the Consolidated Balance Sheets and Consolidated Statement of Stockholders’ Equity. The balance of Non-Controlling interests - joint venture on the Consolidated Balance Sheets will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses, distributions or contributions associated with the partners within the joint venture.

Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, Business Combinations. In connection with our 2020 acquisition of William Lyon Homes, Inc. (“WLH”), we determined we obtained control of a business and inputs, processes and outputs in exchange for cash and equity consideration. All material assets and liabilities were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid, which resulted in goodwill. Refer to Note 16 - Business Combinations for further information regarding the purchase price allocation and related acquisition accounting.

Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of acquired assets, valuation of goodwill, valuation of development liabilities, valuation of equity awards, valuation allowance on deferred tax assets and reserves for warranty and self-insured risks. Actual results could differ from those estimates.

Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage receivables. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, there was no concentration of mortgage receivables with any one customer for the year ended December 31, 2022. No losses have been experienced to date.
In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the home sold with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination.

Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2022, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions.

Restricted Cash — For the years ended December 31, 2022 and 2021, restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits.

Leases — We recognize leases in accordance with ASC Topic 842, Leases. Our operating leases primarily consist of office space, construction trailers, model home leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification. Operating and finance leases are recorded in Lease right of use asset and Lease liabilities on the Consolidated Balance Sheets.

A summary of our leases is shown below:
Operating LeasesFinance Leases
As of December 31, As of December 31,
(Dollars in millions)202220212020202220212020
Weighted average discount rate5.9 %5.9 %6.1 %7.3 %7.3 %7.3 %
Weighted average remaining lease term (in years)4.14.15.286.086.987.9
Payments on lease liabilities$29.2$20.7$16.8$1.3$1.3$1.3
Recorded lease expense$25.4$15.9$14.8$2.0$2.0$2.0

The future minimum lease payments required under our leases as of December 31, 2022 are as follows (dollars in thousands):
Years Ending December 31,Operating Lease
Payments		Finance Lease
Payments		Total Lease
Payments
2023$27,598 $1,341 $28,939 
202420,676 1,334 22,010 
202514,847 1,325 16,172 
20269,883 1,325 11,208 
20276,688 1,325 8,013 
Thereafter(1)
5,705 263,660 269,365 
Total lease payments$85,397 $270,310 $355,707 
Less: Interest$9,548 $245,985 $255,533 
Present value of lease liabilities$75,849 $24,325 $100,174 
(1) Includes a 90 year land lease.

Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated to homes and units generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction of a home, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis.

The life cycle of a typical community generally ranges from two to five years, commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots.
We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings.

We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment. We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the year ended December 31, 2022, we recorded $24.9 million of impairment charges, all of which related to our West reporting segment. For the year ended December 31, 2021, we recorded no impairment charges. For the year ended December 31, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations.

In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes. Such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of December 31, 2022 and 2021, we had no inactive projects.

Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once management intends to actively sell a parcel within the next 12 months or the parcel is under contract to sell. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the year ended December 31, 2022 we had no fair value adjustments for land held for sale. For the years ended December 31, 2021 and 2020, we had $4.7 million and $4.3 million, respectively, of fair value adjustments for land held for sale. These charges are recorded within Cost of land closings on the Consolidated Statement of Operations.

Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable deposit. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the Consolidated Balance Sheets.

Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to other expense if the land acquisition process is terminated or no longer determined probable.

Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor
commitment prices, or broker quotations. The fair value for mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing.

Derivative Assets  — We enter into interest rate lock commitments (“IRLCs”) when originating residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. We are exposed to interest rate risk as a result of these IRLCs and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge.

The IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value with changes in fair value recognized in Financial Services revenue/expenses on the Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. Refer to Note 15 - Mortgage Hedging Activities for additional information.

Prepaid Expenses and Other Assets, net — Prepaid expenses and other assets, net consist of the following:

 As of December 31,
(Dollars in thousands)20222021
Prepaid expenses$45,872 $40,114 
Other assets138,755 118,697 
Build-to-Rent assets65,241 93,538 
Urban Form assets14,434 62,637 
Total prepaid expenses and other assets, net$264,302 $314,986 

Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the Revolving Credit Facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the homes to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivables, and other deferred costs. Build-to-Rent and Urban Form assets consist primarily of land and development costs relating to projects under construction.

Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued. Allowances at December 31, 2022 and 2021 were immaterial.

Investments in Consolidated and Unconsolidated Entities

Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation, when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) should be created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur.
If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the Consolidated Balance Sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net loss/(income) from unconsolidated entities on the Consolidated Statement of Operations when earned and distributions are credited against our Investment in unconsolidated entities on the Consolidated Balance Sheets when received.

We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment’s carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded. We recorded $14.7 million of impairment charges related to investments in unconsolidated entities for the year ended December 31, 2022 and no charges for the years ended December 31, 2021 and 2020.

Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted.

We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences.

Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows:

Buildings: 20 – 40 years
Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years
Information systems: over the term of the license
Furniture, fixtures and computer and equipment: 5 – 7 years
Model and sales office improvements: lesser of 3 years or the life of the community

Maintenance and repair costs are expensed as incurred.

Depreciation expense was $7.6 million, $7.5 million, and $6.3 million, respectively, for the years ended December 31, 2022, 2021, and 2020. Depreciation expense is recorded in General and administrative expenses in the Consolidated Statement of Operations.

Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other. ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present. For the years ended December 31, 2022, 2021 and 2020, goodwill was not impaired.
Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), a captive insurance company, which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home.

Our loss reserves for structural defects (maintained by Beneva) are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets.

We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced separately from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations.

Stock Based Compensation — We have stock options, performance-based restricted stock units and non-performance-based restricted stock units, which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. Performance-based restricted stock units are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. Non-performance-based restricted stock units are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period.

Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the IRC (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. At December 31, 2022, we match 100% of employees’ voluntary contributions up to 4% of eligible compensation, and 50% for each dollar contributed between 4% and 5% of eligible compensation. We contributed $13.6 million, $11.3 million, and $4.7 million to the 401(k) Plan for the years ended December 31, 2022, 2021, and 2020, respectively. During the year ended December 31, 2020, the employee match portion of the plan was paused for one quarter as part of our efforts to reduce spending during the early onset of the COVID-19 pandemic.

Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity - Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. To date, we have not sold any treasury stock.

Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services.

Home and land closings revenue
Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the
transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue:

•Revenue from closings of residential real estate is recognized when 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, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.

Amenity and other revenue
We own and operate certain amenities such as golf courses, club houses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations.

Financial services revenue
Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. All of the loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the statement of operations in the period in which they occur.

Advertising Costs — We expense advertising costs as incurred. For the years ended December 31, 2022, 2021, and 2020, advertising costs were $33.9 million, $30.4 million, and $31.9 million, respectively. Such costs are included in General and administrative expenses on the Consolidated Statement of Operations.

Recently Issued Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients for applying U.S. GAAP to contracts affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and entities could elect to apply the amendments prospectively through December 31, 2022. In December 2022, FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848, which deferred the effective date deadline from December 31, 2022 to December 31, 2024. The use of LIBOR is primarily limited to our financial services mortgage warehouse facilities and our Revolving Credit Facilities. During 2022 our warehouse facilities were modified to directly replace the reference rate but did not change the amount or timing of contractual cash flows. As such, we have elected the use of the practical expedient and treated such modification as a continuation of the debt agreement. Our Revolving Credit Facilities provide the option to continue the use of LIBOR until its expiration. The adoption of ASU 2020-04 has not had a material impact on our consolidated financial statements and disclosures.
v3.22.4
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of Common Stock were exercised or settled.

The following is a summary of the components of basic and diluted earnings per share:
 Year Ended December 31,
(Dollars in thousands except per share data)202220212020
Numerator:
Net income available to TMHC— basic$1,052,800 $663,026 $243,439 
Denominator:
Weighted average shares — basic 114,982 126,077 127,812 
Restricted stock units707 920 865 
Stock options532 771 319 
Warrants— 251 174 
Weighted average shares — diluted116,221 128,019 129,170 
Earnings per common share — basic:
Net income available to Taylor Morrison Home Corporation $9.16 $5.26 $1.90 
Earnings per common share — diluted:
Net income available to Taylor Morrison Home Corporation $9.06 $5.18 $1.88 

The above calculations of weighted average shares exclude 1,485,064, 1,030,282, and 2,335,006 outstanding anti-dilutive stock options and unvested performance and non-performance restricted stock units for the years ended December 31, 2022, 2021, and 2020, respectively.
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS
 12 Months Ended
Dec. 31, 2022
Real Estate [Abstract]  
REAL ESTATE INVENTORY AND LAND DEPOSITS REAL ESTATE INVENTORY AND LAND DEPOSITS
Inventory consists of the following:
 As of December 31,
(Dollars in thousands)20222021
Real estate developed or under development$3,607,227 $3,895,681 
Real estate held for development or held for sale (1)

43,314 70,305 
Total owned lots3,650,541 3,965,986 
Operating communities (2)
1,506,241 1,309,551 
Capitalized interest190,123 168,670 
Total owned inventory5,346,905 5,444,207 
Consolidated real estate not owned 23,971 55,314 
Total real estate inventory$5,370,876 $5,499,521 
(1) Real estate held for development or held for sale includes properties which are not in active production.
(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.

The development status of our land inventory is as follows:

As of December 31,
20222021
(Dollars in thousands)Owned LotsBook Value of Land and DevelopmentOwned LotsBook Value of Land and Development
Homebuilding owned lots
Undeveloped14,985 $522,594 17,671 $636,385 
Under development10,716 1,106,751 11,446 964,353 
Finished18,366 2,018,062 18,896 2,266,309 
Total homebuilding owned lots44,067 3,647,407 48,013 3,867,047 
Other assets(1)
— 3,134 5,298 98,939 
Total owned lots44,067 $3,650,541 53,311 $3,965,986 
(1)The remaining book value of land and development as of December 31, 2022 relates to parcels of commercial assets which are. excluded from the owned lots presented in the table.

As of December 31, 2021, the homebuilding owned lots presented above have been recast as a result of an operational change in classification in the current period. Undeveloped lots are those where no phase specific development work has commenced. Under development lots include land where phase specific development has commenced. Finished lots are fully developed. Our current classification allows for multi-phase or master planned communities to be presented in more than one lot status based on their development compared to our prior process which grouped all phases of a multi-phase or master planned community into one category based on the phase that was most developed. We believe this operational change provides better transparency into lot status and the book value of such lots.

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the property owner and its creditors generally only have recourse against us in the form of retaining non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased. The table below presents a summary of our controlled lots for the following periods (dollars in thousands):

As of
December 31, 2022December 31, 2021
Controlled LotsPurchase Price
Land Deposits (1)
Controlled LotsPurchase Price
Land Deposits (1)
Homebuilding controlled lots
Land option purchase contracts6,582 $428,612 $47,678 8,360 $507,161 $57,554 
Land banking arrangements 7,369 $1,057,065 156,653 5,731 749,813 117,721 
Other controlled lots16,891 956,712 50,218 14,671 1,338,284 38,505 
Total controlled lots30,842 $2,442,389 $254,549 28,762 $2,595,258 $213,780 
(1) Land deposits are non-refundable and represent exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at December 31, 2022 and December 31, 2021 we had refundable deposits of $8.8 million and $15.7 million, respectively.

Capitalized Interest — Interest capitalized, incurred and amortized is as follows:
 Year Ended December 31,
(Dollars in thousands)202220212020
Interest capitalized — beginning of period$168,670 $163,780 $115,593 
Interest incurred(1)
159,913 154,623 164,085 
Interest amortized to cost of home closings(138,460)(149,733)(115,898)
Interest capitalized — end of period$190,123 $168,670 $163,780 
(1) Excludes Interest expense, net on the Consolidated Statement of Operations as such amounts are not capitalizable.
v3.22.4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES
Unconsolidated Entities — We have investments in a number of joint ventures with third parties. These entities are generally involved in real estate development, homebuilding, Build-to-Rent, and/or mortgage lending activities. The primary activity of the real estate development joint ventures is the development and sale of lots to joint venture partners and/or unrelated builders. Our share of the joint venture profit relating to lots we purchase from the joint ventures is deferred until homes are delivered by us and title passes to a homebuyer.

During the twelve months ended December 31, 2022, we contributed land as part of two initial investments in existing unconsolidated joint ventures. In accordance with ASC 606, when the transferee obtains title, physical possession and maintains the risks and rewards of ownership of the property and the transferor has no continuing involvement, the contribution is considered a transfer. To recognize the transfer, the difference between the fair value of the land and carrying value at the time of the contribution is recorded as a gain/loss on transfer. For the year ended December 31, 2022 we recognized gains of $14.5 million, related to land transferred to unconsolidated joint ventures.
Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands):

 As of December 31,
(Dollars in thousands)20222021
Assets:
Real estate inventory$749,942 $414,687 
Other assets146,770 118,990 
Total assets$896,712 $533,677 
Liabilities and owners’ equity:
Debt$238,263 $167,842 
Other liabilities31,824 16,245 
Total liabilities$270,087 $184,087 
Owners’ equity:
TMHC$282,900 $171,406 
Others343,725 178,184 
Total owners’ equity$626,625 $349,590 
Total liabilities and owners’ equity$896,712 $533,677 

 Year Ended December 31,
(Dollars in thousands)202220212020
Revenues$168,695 $130,640 $161,888 
Costs and expenses(163,488)(97,596)(129,764)
Income of unconsolidated entities$5,207 $33,044 $32,124 
TMHC’s share in net (loss)/income from unconsolidated entities
          $(14,184)(1)
$11,130 $11,176 
Distributions from unconsolidated entities$130,545 $42,655 $51,626 
(1) TMHC's share in net loss from unconsolidated entities relates to the impairment of our investment in one of our unconsolidated joint ventures.

Consolidated Entities — We have several joint ventures for the purpose of real estate development and homebuilding activities, which we have determined to be VIEs. As the managing member, we oversee the daily operations and have the power to direct the activities of the VIEs, or joint ventures. For this specific subset of joint ventures, based upon the allocation of income and loss per the applicable joint venture agreements and certain performance guarantees, we have potentially significant exposure to the risks and rewards of the joint ventures. Therefore, we are the primary beneficiary of these VIEs and the entities are consolidated.
As of December 31, 2022, the assets of the consolidated joint ventures totaled $277.6 million, of which $38.9 million was cash and cash equivalents, $72.0 million was owned inventory, and $123.2 million was fixed assets. The majority of the fixed asset balance is held for sale as of December 31, 2022. As of December 31, 2021, the assets of the consolidated joint ventures totaled $291.8 million, of which $22.3 million was cash and cash equivalents, $147.6 million was owned inventory, and $74.3 million was fixed assets. The liabilities of the consolidated joint ventures totaled $155.5 million and $165.1 million as of December 31, 2022 and December 31, 2021, respectively, and were primarily comprised of notes payable, accounts payable and accrued liabilities.
v3.22.4
ACCRUED EXPENSES AND OTHER LIABILITIES
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER LIABILITIES ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued expenses and other liabilities consist of the following:

 As of December 31,
(Dollars in thousands)20222021
Real estate development costs to complete$53,155 $49,833 
Compensation and employee benefits112,294 166,272 
Self-insurance and warranty reserves161,675 141,839 
Interest payable37,434 48,551 
Property and sales taxes payable30,046 29,384 
Other accruals95,649 89,330 
Total accrued expenses and other liabilities$490,253 $525,209 

Self-Insurance and Warranty Reserves — We accrue for the expected costs associated with our limited warranty, deductibles and self-insured exposure under our various insurance policies within Beneva. A summary of the changes in reserves are as follows:
 Year Ended December 31,
(Dollars in thousands)202220212020
Reserves — beginning of period$141,839 $118,116 $120,048 
Net additions to reserves due to WLH acquisition— — 9,984 
Additions to reserves76,643 77,827 62,722 
Costs and claims incurred(76,994)(67,704)(82,137)
Change in estimates to pre-existing reserves20,187 13,600 7,499 
Reserves — end of period$161,675 $141,839 $118,116 
v3.22.4
ESTIMATED DEVELOPMENT LIABILITIES
 12 Months Ended
Dec. 31, 2022
Real Estate Liabilities Associated with Assets Held for Development and Sale [Abstract]  
ESTIMATED DEVELOPMENT LIABILITIES ESTIMATED DEVELOPMENT LIABILITIESEstimated development liabilities consists primarily of estimated future utilities improvements in Poinciana, Florida and Rio Rico, Arizona for home sites previously sold, in most cases prior to 1980. Estimated development liabilities are reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management’s estimate of potential completion costs. At December 31, 2022 and 2021, these liabilities are based on third-party engineer cost estimates which reflect the estimated completion costs. The balance at December 31, 2022 increased from December 31, 2021 as a result of estimated cost increases to complete development. Future increases or decreases of costs for construction, material and labor, as well as other land development and utilities infrastructure costs, may have a significant effect on the estimated development liabilities.
v3.22.4
DEBT
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
DEBT DEBT
Total debt consists of the following:
As of December 31,
20222021
(Dollars in thousands)PrincipalUnamortized Debt Issuance (Costs) / PremiumCarrying ValuePrincipalUnamortized Debt Issuance (Costs) / PremiumCarrying Value
5.875% Senior Notes due 2023
— — — 350,000 (733)349,267 
5.625% Senior Notes due 2024
350,000 (628)349,372 350,000 (1,166)348,834 
5.875% Senior Notes due 2027
500,000 (3,459)496,541 500,000 (4,243)495,757 
6.625% Senior Notes due 2027(1)
27,070 1,310 28,380 300,000 17,718 317,718 
5.75% Senior Notes due 2028
450,000 (3,183)446,817 450,000 (3,814)446,186 
5.125% Senior Notes due 2030
500,000 (4,807)495,193 500,000 (5,440)494,560 
Senior Notes subtotal1,827,070 (10,767)1,816,303 2,450,000 2,322 2,452,322 
Loans payable and other borrowings361,486 — 361,486 404,386 — 404,386 
$1 Billion Revolving Credit Facility(2)(3)
— — — — — — 
$100 Million Revolving Credit Facility(2)(3)
— — — 31,529 — 31,529 
Mortgage warehouse borrowings306,072 — 306,072 413,887 — 413,887 
Total debt$2,494,628 $(10,767)$2,483,861 $3,299,802 $2,322 $3,302,124 
(1) Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting.
(2) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Consolidated Balance Sheets.
(3)The $1 Billion Revolving Credit Facility Agreement together with the $100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”.

Senior Notes
All of our senior notes (the “Senior Notes”) described below and the related guarantees are senior unsecured obligations and are not subject to registration rights. The indentures governing our senior notes (except for the remaining 2027 6.625% WLH Notes, as described below) contain covenants that limit our ability to incur debt secured by liens and enter into certain sale and leaseback transactions and contain customary events of default. None of the indentures for the senior notes have financial maintenance covenants. As of December 31, 2022, we were in compliance with all of the covenants under the Senior Notes.
5.875% Senior Notes due 2023
Our 5.875% Senior Notes due 2023 (the “2023 Senior Notes”) were redeemed in full on October 31, 2022 using cash on hand and borrowings on our $1 Billion Revolving Credit Facility at a price equal to 100%, plus the applicable premium and accrued and unpaid interest up to, but excluding, the settlement date. As a result of the redemption of the 2023 Senior Notes, we recorded a net loss on extinguishment of debt of $0.8 million for the year ended December 31, 2022 to (Gain)/loss on extinguishment of debt, net, on the Consolidated Statement of Operations, which included the write-off of net unamortized deferred financing fees and early payoff premium.

5.625% Senior Notes due 2024
On March 5, 2014, Taylor Morrison Communities, Inc. ( “TM Communities”) issued $350.0 million aggregate principal amount of 5.625% Senior Notes due 2024 (the “2024 Senior Notes”), which mature on March 1, 2024. The 2024 Senior Notes are guaranteed by Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc. and their homebuilding subsidiaries (collectively, the “Guarantors”). We are required to offer to repurchase the 2024 Senior Notes at a price equal to 101% of their aggregate principal amount (plus accrued and unpaid interest) upon certain change of control events where there is a credit rating downgrade that occurs in connection with the change in control.

Prior to December 1, 2023, the 2024 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through December 1, 2023 (plus accrued and unpaid interest). Beginning on December 1, 2023, the 2024 Senior Notes are redeemable at par (plus accrued and unpaid interest).

5.875% Senior Notes due 2027
On June 5, 2019, TM Communities issued $500.0 million aggregate principal amount of 5.875% Senior Notes due 2027 (the “2027 5.875% Senior Notes”), which mature on June 15, 2027. The 2027 5.875% Senior Notes are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 5.875% Senior Notes are similar to those contained in the indentures governing our other Senior Notes.

Prior to March 15, 2027, the 2027 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through March 15, 2027 (plus accrued and unpaid interest). Beginning on March 15, 2027, the 2027 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest).

6.625% Senior Notes due 2027
Following our exchange offer in the first quarter of 2020 (the "Exchange Offer"), whereby TM Communities offered to exchange any and all outstanding senior notes issued by William Lyon Homes ("WLH"), we had $290.4 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by TM Communities (the “2027 6.625% TM Communities Notes”) and $9.6 million aggregate principal amount of 6.625% Senior Notes due 2027 issued by WLH (the “2027 6.625% WLH Notes” and together with the 2027 6.625% TM Communities Notes, the “2027 6.625% Senior Notes”). The 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors.

In connection with the consummation of the exchange offer, WLH entered into a supplemental indenture to eliminate
substantially all of the covenants in the indenture governing the 2027 6.625% WLH Notes, including the requirements to offer
to purchase such notes upon a change of control, and to eliminate certain other restrictive provisions and events that constitute
an “Event of Default” in such indenture.

On June 13, 2022, TM Communities announced a cash tender offer to purchase any and all of the $290.4 million outstanding aggregate principal amount of the 2027 6.625% TM Communities Notes (the “Tender Offer”), which expired July 12, 2022. TM Communities purchased $264.1 million and an additional approximately $0.9 million of the 2027 6.625% TM Communities Notes pursuant to the Tender Offer using cash on hand and borrowings on our $1 Billion Revolving Credit Facility at a price equal to 100% and 97%, respectively, of the principal amounts, plus accrued and unpaid interest up to, but excluding, the settlement date. As a result of the Tender Offer, TM Communities repurchased a total of $265.0 million in aggregate principal amount of outstanding 2027 6.625% TM Communities Notes and we recorded a net gain on extinguishment of debt of approximately $13.6 million for the year ended December 31, 2022 to (Gain)/loss on extinguishment of debt, net, on the Consolidated Statement of Operations.

On November 3, 2022, we purchased $8.0 million of the 2027 6.625% WLH Notes using cash on hand and borrowings on our $1 Billion Revolving Credit Facility at a price equal to 91.25% of the principal amount, plus accrued and unpaid interest up to, but excluding, the settlement date. As a result of the redemption of the 2027 6.625% WLH Notes, we recorded a net gain on extinguishment of debt of approximately $1.1 million for the year ended December 31, 2022 to (Gain)/loss on extinguishment of debt, net, on the Consolidated Statement of Operations.

The remaining 2027 6.625% Senior Notes mature on July 15, 2027. As of December 31, 2022, the remaining 2027 6.625% Senior Notes are redeemable at a price equal to 103.313% of principal (plus accrued and unpaid interest). On or after July 15, 2023, the 2027 6.625% Senior Notes are redeemable at a price equal to 102.208% of principal (plus accrued and unpaid interest). On or after July 31, 2024, the 2027 6.625% Senior Notes are redeemable at a price equal to a 101.104% of principal (plus accrued and unpaid interest). On or after July 15, 2025, the remaining 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest).

5.75% Senior Notes due 2028
On August 1, 2019, TM Communities issued $450.0 million aggregate principal amount of 5.75% Senior Notes due 2028 (the “2028 Senior Notes”), which mature on January 15, 2028. The 2028 Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2028 Senior Notes are similar to those contained in the indentures governing our other Senior Notes.

Prior to October 15, 2027, the 2028 Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through October 15, 2027 (plus accrued and unpaid interest). Beginning on October 15, 2027, the 2028 Senior Notes are redeemable at par (plus accrued and unpaid interest).

5.125% Senior Notes due 2030 and Redemption of the 2023 6.00% Senior Notes and Redemption of the 2025 Senior Notes
In July, 2020, we partially redeemed $266.9 million of our 6.00% Senior Notes due 2023 (the “2023 6.00% Senior Notes”) and $333.1 million of our 5.875% Senior Notes due 2025 (the “2025 Senior Notes”) using the net proceeds from the issuance of $500.0 million aggregate principal amount of 5.125% Senior Notes due 2030 (the “2030 Senior Notes”). In September 2020, we redeemed the remaining $83.1 million and $103.8 million of 2023 6.00% Senior Notes and 2025 Senior Notes, respectively, using cash on hand. For the 2023 6.00% Senior Notes, the redemption price was equal to 100% of the principal amount, plus a make-whole premium of 0.11% plus 50 basis points, plus accrued and unpaid interest to, but excluding the redemption date. For the 2025 Senior Notes, the redemption price was equal to 102.938% of the principal amount, plus accrued and unpaid interest to, but excluding the redemption date. As a result of the early redemption of the 2023 and 2025 Senior Notes, we recorded a total net loss on extinguishment of debt of approximately $10.2 million in (Gain)/loss on extinguishment of debt, net in the Consolidated Statement of Operations for the year ended December 31, 2020.

The 2030 Senior Notes mature on August 1, 2030. The Senior Notes are guaranteed by the same Guarantors that guarantee our other Senior Notes. The change of control provisions in the indenture governing the 2030 Senior Notes are similar to those contained in the indentures governing our other Senior Notes.

Prior to February 1, 2030, the 2030 Senior Notes are redeemable at a price equal to 100.0% plus a “make-whole” premium for payments through February 1, 2030 (plus accrued and unpaid interest). Beginning on February 1, 2030, the 2030 Senior Notes are redeemable at par (plus accrued and unpaid interest).

$1 Billion Revolving Credit Facility
On September 9, 2022, we entered into an agreement to exercise the accordion feature under our existing Amended and Restated Credit Agreement (the “Credit Agreement”) increasing the aggregate commitments from $800 million to $1.0 billion.
Our $1 Billion Revolving Credit Facility has a maturity date of March 11, 2027. We had no outstanding borrowings under $1 Billion Revolving Credit Facility as of December 31, 2022 and December 31, 2021.

As of December 31, 2022 and December 31, 2021, we had $3.8 million and $1.1 million, respectively, of unamortized debt issuance costs relating to our credit facility, which are included in Prepaid expenses and other assets, net, on the Consolidated Balance Sheets. As of December 31, 2022 and December 31, 2021, we had $69.2 million and $58.7 million, respectively, of utilized letters of credit, resulting in $930.8 million and $741.3 million, respectively, of availability under the credit facility.
The $1 Billion Revolving Credit Facility contains certain “springing” financial covenants, requiring us and our subsidiaries to comply with a maximum debt to capitalization ratio of not more than 0.60 to 1.00 and a minimum consolidated tangible net worth level, currently of at least $2.9 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $1 Billion Revolving Credit Facility are outstanding during the last day of such fiscal quarter or on more than five separate days during such fiscal quarter or (b) undrawn letters of credit (except to the extent cash collateralized) issued under the $1 Billion Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the $1 Billion Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than five consecutive days during such fiscal quarter. For purposes of determining compliance with the financial covenants for any fiscal quarter, the $1 Billion Revolving Credit Facility provides that we may exercise an equity cure by issuing certain permitted securities for cash or otherwise recording cash contributions to our capital that will, upon the contribution of such cash to the borrower, be included in the calculation of consolidated tangible net worth and consolidated total capitalization. The equity cure right is exercisable up to twice in any period of four consecutive fiscal quarters and up to five times overall.

The $1 Billion Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, the payment of dividends and other distributions, asset dispositions and investments in entities that are not guarantors, limitations on prepayment of subordinated indebtedness and limitations on fundamental changes. The $1 Billion Revolving Credit Facility contains customary events of default, subject to applicable grace periods, including for nonpayment of principal, interest or other amounts, violation of covenants (including financial covenants, subject to the exercise of an equity cure), incorrectness of representations and warranties in any material respect, cross default and cross acceleration, bankruptcy, material monetary judgments, ERISA events with material adverse effect, actual or asserted invalidity of material guarantees and change of control.

As of December 31, 2022, we were in compliance with all of the covenants under the $1 Billion Revolving Credit Facility.

$100 Million Revolving Credit Facility
On September 17, 2021, we entered into a $100 Million Revolving Credit Facility, which matures on September 17, 2024 and is guaranteed by the Guarantors.

As of December 31, 2022 and December 31, 2021, we had $0.5 million and $0.7 million, respectively, of unamortized debt issuance costs relating to our $100 Million Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the Consolidated Balance Sheets. We had no utilized letters of credit as of December 31, 2022 and December 31, 2021, resulting in $100.0 million and $68.5 million, respectively, of availability under the $100 Million Revolving Credit Facility

The $100 Million Revolving Credit Facility contains certain “springing” financial covenants, requiring us and our subsidiaries
to comply with a maximum debt to capitalization ratio of not more than 0.60 to 1.00 and a minimum consolidated tangible net
worth level of at least $2.9 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans
under the $100 Million Revolving Credit Facility are outstanding during the last day of such fiscal quarter or on more than five
separate days during such fiscal quarter or (b) undrawn letters of credit (except to the extent cash collateralized) issued under
the $100 Million Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit
issued under the $100 Million Revolving Credit Facility are outstanding on the last day of such fiscal quarter or for more than
five consecutive days during such fiscal quarter. For purposes of determining compliance with the financial covenants for any
fiscal quarter, the $100 Million Revolving Credit Facility provides that we may exercise an equity cure by issuing certain
permitted securities for cash or otherwise recording cash contributions to our capital that will, upon the contribution of such
cash to the borrower, be included in the calculation of consolidated tangible net worth and consolidated total capitalization. The
equity cure right is exercisable up to twice in any period of four consecutive fiscal quarters and up to five times overall.

The $100 Million Revolving Credit Facility includes the same restrictive covenants as are included in the $1 Billion
Revolving Credit Facility, described above. As of December 31, 2022, we were in compliance with all of the covenants under
the $100 Million Revolving Credit Facility.

Mortgage Warehouse Borrowings
The following is a summary of our mortgage subsidiary warehouse borrowings:

(Dollars in thousands)December 31, 2022
FacilityAmount
Drawn		Facility
Amount
Interest Rate(1)
Expiration Date
Collateral (2)
Warehouse A
$29,066 $60,000 
Daily SOFR + 1.70%
On DemandMortgage Loans
Warehouse B
94,258 150,000 
BSBY 1M + 1.65%
On DemandMortgage Loans
Warehouse C
53,607 75,000 
Term SOFR + 1.65%
On DemandMortgage Loans and Restricted Cash
Warehouse D
83,259 140,000 
Daily SOFR + 1.50%
September 6, 2023Mortgage Loans
Warehouse E
45,882 70,000 
Term SOFR + 1.60%
On DemandMortgage Loans
Total$306,072 $495,000 
 December 31, 2021
FacilityAmount
Drawn		Facility
Amount
Interest Rate(3)
Expiration Date
Collateral (2)
Warehouse A
$12 $10,000 
LIBOR + 1.75%
On DemandMortgage Loans
Warehouse B
86,409 150,000 
LIBOR + 1.75%
On DemandMortgage Loans
Warehouse C
116,601 250,000 
LIBOR + 2.05%
On DemandMortgage Loans and Restricted Cash
Warehouse D
105,065 150,000 
LIBOR + 1.65%
November 20, 2022Mortgage Loans
Warehouse E
105,800 200,000 
LIBOR + 1.50%
On DemandMortgage Loans
Total$413,887 $760,000 
    

(1) Our warehouse borrowings have transitioned from LIBOR to the Secured Overnight Financing Rate (SOFR), and the Bloomberg Short-Term Bank Yield Index (BSBY).
(2) The mortgage warehouse borrowings outstanding as of December 31, 2022 and 2021, are collateralized by $346.4 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $2.1 million and $3.5 million, respectively, of cash, which is included in restricted cash on our Consolidated Balance Sheet.
(3) Subject to certain interest rate floors.

Loans Payable and Other Borrowings
Loans payable and other borrowings as of December 31, 2022 and 2021 consist of project-level debt due to various land sellers and financial institutions for specific communities. Project-level debt is generally secured by the land that was acquired and the principal payments generally coincide with corresponding project lot closings or a principal reduction schedule. These borrowings bear interest at rates that ranged from 0% to approximately 8% at each of December 31, 2022 and 2021.
Future Minimum Principal Payments on Total Debt
Principal maturities of total debt for the year ended December 31, 2022 are as follows (in thousands):
(Dollars in thousands)Year Ended December 31,
2023$503,367 
2024415,320 
202552,571 
202628,579 
2027537,105 
Thereafter957,686 
Total debt$2,494,628 
v3.22.4
FAIR VALUE DISCLOSURES
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES FAIR VALUE DISCLOSURES
ASC Topic 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 — Fair value is based on quoted prices for identical assets or liabilities in active markets.

Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable.

Level 3 — Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique.

The fair value of our mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. The fair value of our Equity Security Investment in a public company is based upon quoted prices for identical assets in an active market. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2022, when compared to December 31, 2021.

The carrying value and fair value of our financial instruments are as follows:
  As of December 31, 2022As of December 31, 2021
(Dollars in thousands)Level in
Fair Value
Hierarchy		Carrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
Description:
Mortgage loans held for sale2 $346,364 $346,364 $467,534 $467,534 
IRLCs3 2,386 2,386 2,110 2,110 
MBSs2 1,090 1,090 (449)(449)
Mortgage warehouse borrowings2 306,072 306,072 413,887 413,887 
Loans payable and other borrowings2 361,486 361,486 404,386 404,386 
5.875% Senior Notes due 2023 (1)
2 — — 349,267 365,890 
5.625% Senior Notes due 2024 (1)
2 349,372 347,375 348,834 372,750 
5.875% Senior Notes due 2027 (1)
2 496,541 480,060 495,757 560,000 
6.625% Senior Notes due 2027 (1)
2 28,380 26,123 317,718 315,750 
5.750% Senior Notes due 2028 (1)
2 446,817 421,358 446,186 502,875 
5.125% Senior Notes due 2030 (1)
2 495,193 434,330 494,560 550,000 
$100 Million Revolving Credit Facility
2 — — 31,529 31,529 
Equity Security Investment
1 460 460 6,400 6,400 
(1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes.

Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis:
(Dollars in thousands)Level in
Fair Value
Hierarchy		As of
December 31, 2022
Description:
Real estate inventories 348,360 
v3.22.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following:
 Year Ended December 31,
(Dollars in thousands)202220212020
Current:
Federal$203,119 $73,087 $11,621 
State48,134 23,493 11,733 
Current tax provision$251,253 $96,580 $23,354 
Deferred:
Federal$66,667 $75,044 $45,594 
State18,508 9,117 5,642 
Deferred tax provision$85,175 $84,161 $51,236 
Total income tax provision$336,428 $180,741 $74,590 
A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows:
Year Ended December 31,
202220212020
Tax at federal statutory rate21.0 %21.0 %21.0 %
State income taxes (net of federal benefit)3.9 3.8 4.6 
Non-controlling interest(0.1)(0.6)— 
Uncertain tax positions— (0.2)(0.1)
Energy tax credits(1.3)(1.4)(2.9)
Disallowed compensation expense0.4 0.2 0.9 
Disallowed acquisition expenses— — 2.1 
Impact of CARES Act— (1.3)(2.2)
Other0.3 (0.6)(0.4)
Effective Rate24.2 %20.9 %23.0 %

Our effective tax rate was 24.2% and 20.9% for the years ended December 31, 2022 and December 31, 2021, respectively. Our effective rate for both years was affected by a number of factors including state income taxes, and energy tax credits relating to homebuilding activities. The effective tax rate for the year ended December 31, 2021 was favorably impacted by tax benefits from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which contains a number of economic relief provisions in response to the COVID-19 pandemic.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted into law. The IRA contains significant law changes including the extension of federal energy efficient home credits through December 2032, a corporate alternative minimum tax of 15% on adjusted financial statement income for applicable corporations effective for tax years beginning after December 31, 2022, and a 1% excise tax on stock repurchases after December 31, 2022. The energy tax credits we recognized in 2022 include the impact of the extension of energy efficient home credits under the IRA. We are currently evaluating the other potential effects of the IRA on our consolidated financial statements.

We have certain tax attributes available to offset the impact of future income taxes. The components of net deferred tax assets and liabilities at December 31, 2022 and 2021, consisted of timing differences related to real estate inventory impairments, expense accruals and reserves, provisions for liabilities, and net operating loss carryforwards. A summary of these components for the years ending December 31, 2022 and 2021 is as follows:
Year Ended December 31,
(Dollars in thousands)20222021
Deferred tax assets:
Real estate inventory$62,990 $68,426 
Accruals and reserves48,391 56,244 
Other5,425 11,739 
Net operating losses (1)
62,150 76,119 
Capital loss carryforward36,054 36,054 
Total deferred tax assets$215,010 $248,582 
Deferred tax liabilities:
Real estate inventory, intangibles, other(10,632)(11,162)
Valuation allowance(36,054)(36,054)
Deferred income (2)
(100,668)(50,126)
Total net deferred tax assets$67,656 $151,240 
(1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of WLH. All three acquisitions were deemed to be a change in control as defined by Section 382.
(2) In prior years we presented the deferred tax assets on real estate inventory, net of deferred income. As of December 31, 2022, we presented the deferred tax liability for deferred income separate from real estate inventory deferred tax assets for the periods ended December 31, 2022 and 2021.

On both December 31, 2022 and 2021, we had a valuation allowance of $36.1 million against net deferred tax assets. The valuation allowance is the result of the 2018 corporate reorganization which triggered a capital loss carryforward which is not expected to be realized. We have approximately $206.1 million in available gross federal NOL carryforwards. Federal NOL carryforwards generated prior to January 1, 2018 may be used to offset future taxable income for a period of 20 years and begin
to expire in 2029. State NOL carryforwards may be used to offset future taxable income for a period of 20 years and begin to expire in 2026. On an ongoing basis, we will continue to review all available evidence to determine if we expect to realize our deferred tax assets and federal and state NOL carryovers or if a valuation allowance is necessary.
We account for uncertain tax positions in accordance with ASC 740. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is more likely than not based on the technical merits of the position that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken.

The following is a reconciliation of the total amounts of unrecognized tax benefits:
Year Ending December 31,
(Dollars in thousands)202220212020
Beginning of the period$— $5,762 $6,158 
Increases from current year acquisitions— — — 
Increases of prior year items— — — 
Settlement with tax authorities— — — 
Decreased for tax positions of prior years— (4,140)— 
Decreased due to statute of limitations— (1,622)(396)
End of the period$— $— $5,762 

As of December 31, 2022 and 2021 there are no unrecognized tax benefits. The decrease in unrecognized tax benefits for the year ending December 31, 2021 was primarily the result of management’s determination regarding the realizability of certain carryforward loss positions and the lapse in the statute of limitations on other positions.

We recognized no penalties or interest expense on our uncertain tax positions for the years ended December 31, 2022 and 2021. We recognized $0.5 million for the year ended December 31, 2020, which was included in income tax provision in the Consolidated Statements of Operations and income taxes payable in the Consolidated Balance Sheets.

We are not currently under examinations by any of our major taxing authorities. The statute of limitations for our major taxing jurisdictions remains open for examination for tax years 2017 through 2022.
v3.22.4
STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
Capital Stock

The Company’s authorized capital stock consists of 400,000,000 shares of common stock, par value $0.00001 per share (the “Common Stock”), and 50,000,000 shares of preferred stock, par value $0.00001 per share.

Stock Repurchase Program

On May 31, 2022, the Board of Directors authorized a new stock repurchase program which permits the Company to repurchase up to $500.0 million of the Company's Common Stock through December 31, 2023. The new stock repurchase program replaced the Company’s prior $250.0 million repurchase program, which had been scheduled to expire on June 30, 2024. Repurchases under the new program may occur from time to time through open market purchases, privately negotiated transactions or other transactions. The timing, manner, price and amount of any common stock repurchases will be determined by us in our discretion and will depend on a variety of factors, including prevailing market conditions, our liquidity, the terms of our debt instruments, legal requirements, planned land investment and development spending, acquisition and other investment opportunities and ongoing capital requirements. The program does not require us to repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or discontinued at any time.
The following table summarizes share repurchase activity for the program for the years ended December 31, 2022 and 2021:
 Year Ended December 31,
 (Dollars in thousands)20222021
Amount available for repurchase — beginning of period(1)

$230,413 $86,831 
Additional amount authorized for repurchase(2)
500,000 500,000 
Unused amount as part of authorization renewal(3)
(75,000)(74,998)
Amount repurchased at cost, 14,568,364 and 9,918,104 shares as of December 31, 2022 and December 31, 2021, respectively
(376,275)(281,420)
Amount available for repurchase — end of period$279,138 $230,413 
(1) Represents the amount available for repurchase as of January 1 for the years provided, adjusted for previously expired share repurchase authorizations.
(2) Amount in 2022 includes a $500.0 million new authorization announced on May 31, 2022. Amount in 2021 includes a $250.0 million renewal announced on each June 1, 2021 and December 13, 2021.
(3)Amount represents the unused value of the repurchase authorization from December 31, 2021, which was cancelled when the May 31, 2022 authorization was announced. Amount represents the unused value of the repurchase authorization from June 1, 2021, which was cancelled when the December 31, 2021 authorization was announced.
v3.22.4
STOCK BASED COMPENSATION
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION STOCK BASED COMPENSATION
In April 2013, we adopted the Taylor Morrison Home Corporation 2013 Omnibus Equity Award Plan (the “Plan”). The Plan was most recently amended and restated in May 2022. The Plan provides for the grant of stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), and other equity-based awards deliverable in shares of our Common Stock. As of December 31, 2022, we had an aggregate of 5,546,661 shares of Common Stock available for future grants under the Plan.
The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statement of Operations:
(Dollars in thousands)Year Ended December 31,
202220212020
Restricted stock units (1) (2)
$22,464 $15,856 $19,938 
Stock options4,437 4,087 7,085 
Total stock compensation$26,901 $19,943 $27,023 
(1) Includes compensation expense related to time-based RSUs and PRSUs.
(2) Stock-based compensation expense in 2021 and 2020 includes expense recognized for equity awards associated with the acquisition of WLH, which were converted from WLH to TMHC equity awards. An additional $5.1 million of stock based compensation expense relating to the accelerations of awards from the WLH acquisition were charged to Transaction expenses on the Consolidated Statement of Operations for the year ended December 31, 2020.

At December 31, 2022, 2021, and 2020, the aggregate unamortized value of all outstanding stock-based compensation awards was approximately $27.1 million, $26.5 million, and $23.8 million, respectively.

Stock Options — Options granted to employees generally vest and become exercisable ratably on the first, second, third, and fourth anniversary of the date of grant. Options granted to members of the Board of Directors vest and become exercisable ratably on the first, second and third anniversary of the date of grant. Vesting of the options is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates, and options expire within ten years from the date of grant.
The following table summarizes stock option activity for the Plan for each year presented:

 Year Ended December 31,
 202220212020
 Number of
Options		Weighted
Average
Exercise/Grant
Price
Number of
Options(1)
Weighted
Average
Exercise/Grant
Price		Number of
Options		Weighted
Average
Exercise/Grant
Price
Outstanding, beginning3,165,612 $22.02 3,772,775 $19.73 3,339,244 $18.98 
Granted(1)
519,799 29.30 712,910 28.64 1,139,583 21.95 
Exercised(323,625)20.69 (1,204,283)19.37 (551,845)17.91 
Cancelled/forfeited(1)
(88,528)24.64 (115,790)21.53 (154,207)20.93 
Balance, ending3,273,258 $23.35 3,165,612 $22.02 3,772,775 $19.73 
Options exercisable, at December 31,1,775,881 $20.50 1,407,618 $19.12 1,934,328 $18.73 
(1) Excludes the number of options granted and canceled in the same period.

 As of December 31,
(Dollars in thousands)202220212020
Unamortized value of unvested stock options (net of estimated forfeitures)$7,712 $7,515 $6,847 
Weighted-average period (in years) that expense is expected to be recognized2.52.52.5
Weighted-average remaining contractual life (in years) for options outstanding6.67.06.6
Weighted-average remaining contractual life (in years) for options exercisable5.25.34.9

The following table summarizes the weighted-average assumptions and fair value used for stock options grants:
 Year Ended December 31,
 202220212020
Expected dividend yield—%—%—%
Expected volatility(1)
30.46%24.65%24.19%
Risk-free interest rate(1)
1.91%0.75%1.19%
Expected term (in years)(1)
6.256.256.25
Weighted average fair value of options granted during the period$9.94$7.45$5.89
(1)Expected volatilities and expected term are based on the historical information of comparable publicly traded homebuilders. Due to the limited number and homogeneous nature of option holders, the expected term was evaluated using a single group. The risk-free rate is based on the U.S. Treasury yield curve for periods equivalent to the expected term of the options on the grant date.


The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2022, 2021 and 2020 (excluding options relating to the acquisition of WLH)

 As of December 31,
(Dollars in thousands)202220212020
Aggregate intrinsic value of options outstanding$21,439 $38,190 $21,399 
Aggregate intrinsic value of options exercisable$15,385 $18,897 $11,903 

The aggregate intrinsic value is based on the market price of our Common Stock on December 31, 2022, the last trading day in December 2022, which was $30.35, less the applicable exercise price of the underlying options. This aggregate intrinsic value represents the amount that would have been realized if all the option holders had exercised their options on December 31, 2022.

Performance-Based Restricted Stock Units – These awards will vest in full based on the achievement of certain performance goals over a three-year performance period, subject to the employee’s continued employment through the last date of the performance period and will be settled in shares of our Common Stock. The number of shares that may be issued in settlement of the PRSUs to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.
The following table summarizes the activity of our PRSUs:
 Year Ended December 31,
202220212020
Balance, beginning926,193 930,633 998,639 
Granted272,716 289,308 295,405 
Vested(380,632)(275,286)(319,732)
Forfeited(15,898)(18,462)(43,679)
Balance, ending802,379 926,193 930,633 

Year Ended December 31,
(Dollars in thousands):202220212020
PRSU expense recognized$12,642 $8,125 $5,692 
Unamortized value of PRSUs $8,911 $8,419 $7,848 
Weighted-average period expense is expected to be recognized (in years)1.81.81.8

Non-Performance-Based Restricted Stock Units — Our RSUs consist of shares of our Common Stock that have been awarded to our employees and members of our Board of Directors. Vesting of RSUs is subject to continued employment with TMHC or continued service on the Board of Directors, through the applicable vesting dates. Time-based RSUs granted to employees generally vest ratably over a three to four year period, based on the grant date. Time-based RSUs granted to members of the Board of Directors generally vest on the first anniversary of the grant date.

The following tables summarize the activity of our RSUs:

 Year Ended December 31,
 202220212020
(Dollars in thousands except per share data):Number of
RSUs		Weighted
Average
Grant
Date Fair
Value
Number of
RSUs(1)
Weighted
Average
Grant
Date Fair
Value		Number of
RSUs		Weighted
Average
Grant
Date Fair
Value
Outstanding, beginning804,465 $24.73 881,272 $21.33 709,754 $18.11 
Granted359,993 29.04 370,762 28.62 1,228,451 23.07 
Vested(319,595)24.32 (390,358)21.28 (1,004,450)16.83 
Forfeited(30,029)26.90 (57,211)23.68 (52,483)19.65 
Balance, ending814,834 $26.74 804,465 $24.73 881,272 $21.33 



Year Ended December 31,
(Dollars in thousands):202220212020
RSU expense recognized(1)
$9,822 $7,731 $14,246 
Unamortized value of RSUs(1)
$10,486 $10,561 $9,116 
Weighted-average period expense is expected to be recognized (in years)(1)
1.71.71.8
(1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized an additional $7.1 million of RSU expense. As of December 31, 2022, there is no remaining unamortized expense related to WLH RSU's.
The Plan permits us to withhold from the total number of shares that would otherwise be distributed to a recipient on vesting of an RSU, an amount equal to the number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining RSU shares to the recipient.
v3.22.4
OPERATING AND REPORTING SEGMENTS
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
OPERATING AND REPORTING SEGMENTS OPERATING AND REPORTING SEGMENTSWe have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling homes, and providing warranty and customer service. We aggregate our homebuilding operating components into three reporting segments, East, Central, and West, based on similar long-term economic characteristics. The activity from our Build-to-Rent and Urban Form operations are included in our Corporate
segment. We also have a Financial Services reporting segment. We have no inter-segment sales as all sales are to external customers.

Our reporting segments are as follows:
EastAtlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
CentralAustin, Dallas, Denver, and Houston
WestBay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial ServicesTMHF, Inspired Title, and TMIS

Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. Segment information is as follows:
 Year Ended December 31, 2022
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$2,739,759 $2,024,730 $3,228,853 $135,491 $96,084 $8,224,917 
Gross margin$718,223 $493,006 $791,944 $51,531 $37,662 $2,092,366 
Selling, general and administrative expense(180,177)(137,824)(167,751)— (157,460)(643,212)
Net (loss)/income from unconsolidated entities— (55)(18,445)5,271 (955)(14,184)
Interest and other expense, net (6,725)(10,364)(23,881)— (15,201)(56,171)
Gain on extinguishment of debt— — — — 13,876 13,876 
Income/(loss) before income taxes$531,321 $344,763 $581,867 $56,802 $(122,078)$1,392,675 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.


Year Ended December 31, 2021
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$2,423,948 $1,741,689 $3,126,621 $164,615 $44,392 $7,501,265 
Gross margin$522,721 $336,896 $614,130 $62,767 $11,367 $1,547,881 
Selling, general and administrative expense(184,744)(133,991)(187,515)— (162,092)(668,342)
Net income/(loss) from unconsolidated entities— 306 2,190 8,644 (10)11,130 
Interest and other expense, net (923)(3,103)(7,228)— (16,307)(27,561)
Income/(loss) before income taxes
$337,054 $200,108 $421,577 $71,411 $(167,042)$863,108 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.
 Year Ended December 31, 2020
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$1,919,247 $1,633,428 $2,396,101 $155,827 $24,717 $6,129,320 
Gross margin$319,361 $306,158 $352,648 $66,918 $(866)$1,044,219 
Selling, general and administrative expense(160,222)(132,796)(165,682)— (113,675)(572,375)
Net income from unconsolidated entities— 23 683 10,470 — 11,176 
Interest and other expense, net (2)
(574)(4,471)(37,600)(8,971)(97,040)(148,656)
Loss on extinguishment of debt— — — — (10,247)(10,247)
Income/(loss) before income taxes
$158,565 $168,914 $150,049 $68,417 $(221,828)$324,117 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.
(2) Interest and other expense, net includes transaction related expenses for business acquisitions.

As of December 31, 2022
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,820,765 $1,359,805 $2,453,662 $— $— $5,634,232 
Investments in unconsolidated entities46,629 104,070 80,310 5,283 46,608 282,900 
Other assets216,816 251,727 613,029 431,535 1,040,485 2,553,592 
Total assets$2,084,210 $1,715,602 $3,147,001 $436,818 $1,087,093 $8,470,724 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
As of December 31, 2021
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,781,948 $1,282,024 $2,665,084 $— $— $5,729,056 
Investments in unconsolidated entities— 87,600 79,531 4,275 — 171,406 
Other assets196,126 221,906 588,520 559,233 1,261,530 2,827,315 
Total assets$1,978,074 $1,591,530 $3,333,135 $563,508 $1,261,530 $8,727,777 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
As of December 31, 2020
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,712,852 $1,176,604 $2,568,595 $— $— $5,458,051 
Investments in unconsolidated entities— 58,052 65,395 4,498 10 127,955 
Other assets170,382 192,981 578,231 284,265 926,130 2,151,989 
Total assets$1,883,234 $1,427,637 $3,212,221 $288,763 $926,140 $7,737,995 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
v3.22.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Letters of Credit and Surety Bonds — We are committed, under various letters of credit and surety bonds, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit and surety bonds under these arrangements totaled $1.2 billion at both December 31, 2022 and 2021. Although significant development and construction activities have been completed related to these site improvements, the bonds are generally not released until all development and construction activities are completed. We do not believe that it is probable that any outstanding bonds as of December 31, 2022 will be drawn upon.

Purchase Commitments — We are subject to the usual obligations associated with entering into contracts (including land option contracts and land banking arrangements) for the purchase, development, and sale of real estate in the routine conduct of our business. We have a number of land purchase option contracts and land banking agreements, generally through cash
deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property and the creditors generally have no recourse. Our obligations with respect to such contracts are generally limited to the forfeiture of the related non-refundable cash deposits. At December 31, 2022 and 2021, the aggregate purchase price of these contracts was $1.5 billion and $1.3 billion respectively.

Legal Proceedings — We are involved in various litigation and legal claims in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending
operations, employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss can be reasonably estimated. At December 31, 2022 and 2021, our legal accruals were $20.6 million and $21.7 million, respectively. We accrue for such matters based on the facts and circumstances specific to each matter and revise these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. Predicting the ultimate resolution of the pending matters, the related timing, or the eventual loss associated with these matters is inherently difficult. Accordingly, the liability arising from the ultimate resolution of any matter may exceed the estimate reflected in the recorded reserves relating to such matter. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows.

On April 26, 2017, a class action complaint was filed in the Circuit Court of the Tenth Judicial Circuit in and for Polk County, Florida by Norman Gundel, William Mann, and Brenda Taylor against Avatar Properties, Inc., (an acquired AV Homes entity), generally alleging that our collection of club membership fees in connection with the use of one of our amenities in our East homebuilding segment violates various laws relating to homeowner associations and other Florida-specific laws. The class action complaint seeks an injunction to prohibit future collection of club membership fees. On November 2, 2021, the court determined that the club membership fees were improper and that plaintiffs were entitled to $35.0 million in fee reimbursements. We appealed the court’s ruling to the Second District Court of Appeal on November 29, 2021, and as of December 31, 2022, our appeal remains pending. Plaintiffs have agreed to continue to pay club membership fees pending the outcome of the appeal. We believe, based on our assessment and the opinion of external legal counsel, that the court’s legal interpretation constitutes legal error and the court incorrectly ruled on this matter. In accordance with ASC Topic 450, Contingencies, we evaluated the range of loss and the likelihood of each potential amount of loss within the range.

While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, in evaluating the potential outcomes, we believe the more likely outcome is that we win the appeal. This belief is based on our review of the legal merit of the judgement, as well as the opinion of external legal counsel. Accordingly, in assessing the range of possible loss, we believe the more likely outcome is that we win on appeal and will have zero liability.
v3.22.4
MORTGAGE HEDGING ACTIVITIES
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
MORTGAGE HEDGING ACTIVITIES MORTGAGE HEDGING ACTIVITIES
The following summarizes derivative instrument assets (liabilities) as of the periods presented:

As of
December 31, 2022December 31, 2021
(Dollars in thousands)Fair Value
Notional Amount(1)
Fair Value
Notional Amount(1)
IRLCs$2,386 $375,030 $2,110 $158,299 
MBSs1,090 504,000 (449)407,000 
Total, net$3,476 $1,661 
(1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved.

Total commitments to originate loans approximated $419.6 million and $173.7 million at December 31, 2022 and 2021, respectively. This amount represents the commitments to originate loans that have been locked and approved by underwriting. The notional amounts in the table above include mandatory and best effort loans that have been locked and approved by underwriting.
We have exposure to credit loss in the event of contractual non-performance by our trading counterparties in derivative instruments that we use in our rate risk management activities. We manage this credit risk by selecting only counterparties that we believe to be financially strong, spreading the risk among multiple counterparties, by placing contractual limits on the amount of unsecured credit extended to any single counterparty, and by entering into netting agreements with counterparties, as appropriate. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon.
v3.22.4
BUSINESS COMBINATIONS
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
In accordance with ASC Topic 805, Business Combinations, all assets acquired and liabilities assumed from our acquisition of WLH on February 6, 2020 were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid. Upon finalization, total purchase consideration of the WLH acquisition was $1.1 billion, consisting of multiple components: (i) cash of $157.8 million, (ii) the issuance of approximately 28.3 million shares of TMHC Common Stock with a value of $773.9 million, (iii) the repayment of $160.8 million of borrowings under WLH's Revolving Credit Facility, and (iv) the conversion of WLH issued equity instruments consisting of restricted stock units, restricted stock awards, stock options and warrants to TMHC stock with a value of $24.1 million.

We determined the estimated fair value of inventory on a community-level basis, using a reasonable range of market comparable gross margins based on the inventory geography and product type. These estimates are significantly impacted by assumptions related to expected average home selling prices and sales incentives, expected sales paces and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. Such estimates were made for each individual community and varied significantly between communities. We believe our estimates and assumptions are reasonable.

The following is a summary of the final fair value of assets acquired and liabilities assumed.
(Dollars in thousands)
Acquisition DateFebruary 6, 2020
Assets acquired
Real estate inventory$2,069,323 
Prepaid expenses and other assets(1)
265,729 
Deferred tax assets, net148,193 
Goodwill(2)
513,768 
Total assets$2,997,013 
Less liabilities assumed
Accrued expenses and other liabilities$457,365 
Total debt(3)
1,306,578 
Non-controlling interest116,157 
Net assets acquired$1,116,913 
(1) Includes cash acquired.
(2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively.
(3) See Note 8 - Debt

Unaudited Pro Forma Results of Business Combination

The following unaudited pro forma information for the periods presented include the results of operations of our acquisition of WLH as if it was completed on January 1, 2019. The pro forma results are presented for informational purposes only and do not purport to be indicative of the results of operations or future results that would have been achieved if the acquisition had taken place one year prior to the acquisition year. The pro forma information combines the historical results of the Company with the historical results of our acquisition for the periods presented.

The unaudited pro forma results do not give effect to any synergies, operating efficiencies, or other costs savings that may result from the acquisition, or other significant non-reoccurring expenses or transactions that do not have a continuing impact. Earnings per share utilizes pro forma net income available to TMHC and total weighted average shares of common stock. The pro forma amounts are based on available information and certain assumptions that we believe are reasonable.

Pro forma presentation for the WLH acquisition
For the Year Ended December 31,
(Dollars in thousands except per share data)2020
Total revenue$6,216,418 
Net income before allocation to non-controlling interests309,022 
Net loss attributable to non-controlling interests — joint ventures6,975 
Net income available to TMHC$302,047 
Weighted average shares - Basic131,011 
Weighted average shares - Diluted132,370 
Earnings per share - Basic $2.31 
Earnings per share - Diluted$2.28 
For the year ended December 31, 2020, total revenue on the Consolidated Statement of Operations included $1.6 billion of revenues, and earnings before income taxes included $48.0 million of pre-tax earnings from WLH since the date of acquisition.
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Consolidation Basis of Presentation and Consolidation — The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP, include the accounts of TMHC and its consolidated subsidiaries, other entities where we have a controlling financial interest, and certain consolidated variable interest entities. Intercompany balances and transactions have been eliminated in consolidation.
Joint Ventures Joint Ventures - We consolidate certain joint ventures in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation. The income from the percentage of the joint venture not owned by us is presented as “Net income attributable to non-controlling interests - joint ventures” on the Consolidated Statement of Operations. The assets, liabilities and equity from the percentage of the joint venture not owned by us is presented as “Non-controlling interests - joint ventures” on the Consolidated Balance Sheets and Consolidated Statement of Stockholders’ Equity. The balance of Non-Controlling interests - joint venture on the Consolidated Balance Sheets will fluctuate from period to period as a result of activities within the respective joint ventures which may include the allocation of income or losses, distributions or contributions associated with the partners within the joint venture.
Business Combinations Business Combinations — Acquisitions are accounted for in accordance with ASC Topic 805-10, Business Combinations. In connection with our 2020 acquisition of William Lyon Homes, Inc. (“WLH”), we determined we obtained control of a business and inputs, processes and outputs in exchange for cash and equity consideration. All material assets and liabilities were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price paid, which resulted in goodwill.
Use of Estimates Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, valuation of acquired assets, valuation of goodwill, valuation of development liabilities, valuation of equity awards, valuation allowance on deferred tax assets and reserves for warranty and self-insured risks. Actual results could differ from those estimates.
Concentration of Credit Risk Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and mortgage receivables. Cash and cash equivalents include amounts on deposit with financial institutions in the U.S. that are in excess of the Federal Deposit Insurance Corporation federally insured limits of up to $250,000. Of the different types of mortgage receivables, there was no concentration of mortgage receivables with any one customer for the year ended December 31, 2022. No losses have been experienced to date.In addition, the Company is exposed to credit risk to the extent that borrowers may fail to meet their contractual obligations. This risk is mitigated by collateralizing the home sold with a mortgage, and entering into forward commitments to sell our mortgage loans held for sale, generally within 30 days of origination.
Cash and Cash Equivalents Cash and Cash Equivalents — Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions, and investments with original maturities of 90 days or less. At December 31, 2022, the majority of our cash and cash equivalents were invested in both highly liquid and high-quality money market funds or on deposit with major financial institutions.
Restricted Cash Restricted Cash — For the years ended December 31, 2022 and 2021, restricted cash consisted of cash pledged to collateralize mortgage credit lines and cash held in escrow deposits.
Leases Leases — We recognize leases in accordance with ASC Topic 842, Leases. Our operating leases primarily consist of office space, construction trailers, model home leasebacks, and equipment or storage units. Certain of our leases offer the option to renew or to increase rental square footage. The execution of such options are at our discretion and may result in a lease modification.
Real Estate Inventory
Real Estate Inventory — Inventory consists of raw land, land under development, homes under construction, completed homes, and model homes, all of which are stated at cost. In addition to direct carrying costs, we also capitalize interest, real estate taxes, and related development costs that benefit the entire community, such as field construction supervision and related direct overhead. Home vertical construction costs are accumulated and charged to Cost of home closings at the time of home closing using the specific identification method. Land acquisition, development, interest, and real estate taxes are allocated to homes and units generally using the relative sales value method. Generally, all overhead costs relating to purchasing, vertical construction of a home, and construction utilities are considered overhead costs and allocated on a per unit basis. These costs are capitalized to inventory from the point development begins to the point construction is completed. Changes in estimated costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis.

The life cycle of a typical community generally ranges from two to five years, commencing with the acquisition of unentitled or entitled land, continuing through the land development phase and concluding with the sale, construction and delivery of homes. Actual community duration will vary based on the size of the community, the sales absorption rate and whether we purchased the property as raw land or as finished lots.
We capitalize qualifying interest costs to inventory during the development and construction periods. Capitalized interest is charged to Cost of home closings when the related inventory is charged to Cost of home closings.

We assess the recoverability of our inventory in accordance with the provisions of ASC Topic 360, Property, Plant, and Equipment. We review our real estate inventory for indicators of impairment on a community-level basis during each reporting period. If indicators of impairment are present for a community, an undiscounted cash flow analysis is generally prepared in order to determine if the carrying value of the assets in that community exceeds the estimated undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the year ended December 31, 2022, we recorded $24.9 million of impairment charges, all of which related to our West reporting segment. For the year ended December 31, 2021, we recorded no impairment charges. For the year ended December 31, 2020, we recorded $9.6 million of impairment charges, all of which related to our East reporting segment. Impairment charges are recorded to Cost of home closings or Cost of land closings on the Consolidated Statement of Operations.

In certain cases, we may elect to cease development and/or marketing of an existing community if we believe the economic performance of the community would be maximized by deferring development for a period of time to allow for market conditions to improve. We refer to such communities as long-term strategic assets. The decision may be based on financial and/or operational metrics as determined by us. For those communities that have been temporarily closed or development has been discontinued, we do not allocate interest or other costs to the community’s inventory until activity resumes. Such costs are expensed as incurred. In addition, if we decide to cease development, we will evaluate the project for impairment and then cease future development and marketing activity until such a time when we believe that market conditions have improved and economic performance can be maximized. Our assessment of the carrying value of our long-term strategic assets typically includes estimates of future performance, including the timing of when development will recommence, the type of product to be offered, and the margin to be realized. In the future, some of these inactive communities may be re-opened while others may be sold. As of December 31, 2022 and 2021, we had no inactive projects.

Land held for sale — In some locations where we act as a developer, we occasionally purchase land that includes commercially zoned parcels or areas designated for school or government use, which we typically sell to commercial developers or municipalities, as applicable. We also sell residential lots or land parcels to manage our land and lot supply on larger tracts of land. Land is considered held for sale once management intends to actively sell a parcel within the next 12 months or the parcel is under contract to sell. Land held for sale is recorded at the lower of cost or fair value less costs to sell. In determining the value of land held for sale, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. For the year ended December 31, 2022 we had no fair value adjustments for land held for sale. For the years ended December 31, 2021 and 2020, we had $4.7 million and $4.3 million, respectively, of fair value adjustments for land held for sale. These charges are recorded within Cost of land closings on the Consolidated Statement of Operations.

Land banking arrangements — We have land purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources, we transfer our right under certain specific performance agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions from their owners and/or incur debt to finance the acquisition and development of the land. The entities grant us an option to acquire lots in staged takedowns. In consideration for this option, we make a non-refundable deposit. We are not legally obligated to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to financial and other penalties if the lots were not purchased. We do not have an ownership interest in these entities or title to their assets and do not guarantee their liabilities. These land banking arrangements help us manage the financial and market risk associated with land holdings which are not included in the Consolidated Balance Sheets.
Land Deposits Land Deposits — We make deposits related to land option contracts, land banking, and land purchase contracts. Non-refundable deposits are recorded as real estate inventory in the accompanying Consolidated Balance Sheets at the time the deposit is applied to the acquisition price of the land based on the terms of the underlying agreements. To the extent the deposits are non-refundable, they are charged to other expense if the land acquisition process is terminated or no longer determined probable.
Mortgages Loans Held for Sale Mortgage Loans Held for Sale — Mortgage loans held for sale consist of mortgages due from buyers of Taylor Morrison homes that are financed through our mortgage finance subsidiary, TMHF. Mortgage loans held for sale are carried at fair value, which is calculated using observable market information, including pricing from actual market transactions, investor commitment prices, or broker quotations. The fair value for mortgage loans held for sale covered by investor commitments is generally based on commitment prices. The fair value for mortgage loans held for sale not committed to be purchased by an investor is generally based on current delivery prices using best execution pricing.
Derivative Assets
Derivative Assets  — We enter into interest rate lock commitments (“IRLCs”) when originating residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 60 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. We are exposed to interest rate risk as a result of these IRLCs and originated mortgage loans held for sale until those loans are sold in the secondary market. The price risk related to changes in the fair value of IRLCs and mortgage loans held for sale not committed to be purchased by investors are subject to change primarily due to changes in market interest rates. We manage the interest rate and price risk associated with our outstanding IRLCs and mortgage loans held for sale not committed to be purchased by investors by entering into hedging instruments such as forward loan sales commitments and mandatory delivery commitments. We expect these instruments will experience changes in fair value inverse to changes in the fair value of the IRLCs and mortgage loans held for sale not committed to investors, thereby reducing earnings volatility. Best effort sale commitments are also executed for certain loans at the time the IRLC is locked with the borrower. The fair value of the best effort IRLC and mortgages receivable are valued using the commitment price to the investor. We take into account various factors and strategies in determining what portion of the IRLCs and mortgage loans held for sale to economically hedge.

The IRLCs meet the definition of a derivative and are reflected on the balance sheet at fair value with changes in fair value recognized in Financial Services revenue/expenses on the Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets, are measured based on the fair value of the underlying mortgage loan, quoted Agency MBS prices, estimates of the fair value of the mortgage servicing rights and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The fair value of the forward loan sales commitment and mandatory delivery commitments being used to hedge the IRLCs and mortgage loans held for sale not committed to be purchased by investors are based on quoted Agency MBS prices. Refer to Note 15 - Mortgage Hedging Activities for additional information.
Prepaid Expenses and Other Assets, net Prepaid Expenses and Other Assets, net — Prepaid expenses consist primarily of sales commissions, prepaid rent, impact fees and the unamortized issuance costs for the Revolving Credit Facilities. Prepaid sales commissions are recorded on pre-closing sales activities, which are recognized on the ultimate closing of the homes to which they relate. Other assets consist primarily of various operating and escrow deposits, pre-acquisition costs, rebate receivables, income tax receivables, and other deferred costs. Build-to-Rent and Urban Form assets consist primarily of land and development costs relating to projects under construction.
Other Receivables, net Other Receivables, net — Other receivables primarily consist of amounts expected to be recovered from various community development, municipality, and utility districts and utility deposits. Allowances are maintained for potential losses based on historical experience, present economic conditions, and other factors considered relevant. Allowances are recorded in other expense, net, when it becomes likely that some amount will not be collectible. Other receivables are written off when it is determined that collection efforts will no longer be pursued.
Investments in Consolidated and Unconsolidated Entities
Investments in Consolidated and Unconsolidated Entities

Consolidated Entities — In the ordinary course of business, we enter into land purchase contracts, lot option contracts and land banking arrangements in order to procure land or lots for the construction of homes. Such contracts enable us to control significant lot positions with a minimal initial capital investment and substantially reduce the risk associated with land ownership and development. In accordance with ASC Topic 810, Consolidation, when we enter into agreements to acquire land or lots and pay a non-refundable deposit, we evaluate if a Variable Interest Entity (“VIE”) should be created if we are deemed to have provided subordinated financial support that will absorb some or all of an entity’s expected losses if they occur.
If we are the primary beneficiary of the VIE, we consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned and Liabilities attributable to consolidated real estate not owned, respectively, in the Consolidated Balance Sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities which we exercise significant influence but do not have a controlling interest over the operating and financial policies of the investee. For unconsolidated entities in which we function as the managing member, we have evaluated the rights held by our joint venture partners and determined that the partners have substantive participating rights that preclude the presumption of control. Our share of net earnings or losses is included in Net loss/(income) from unconsolidated entities on the Consolidated Statement of Operations when earned and distributions are credited against our Investment in unconsolidated entities on the Consolidated Balance Sheets when received.
We evaluate our investments in unconsolidated entities for indicators of impairment semi-annually. A series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized, if any, is the excess of the investment’s carrying amount over its estimated fair value. Additionally, we consider various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, stage in its life cycle, intent and ability for us to recover our investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners. If we believe that the decline in the fair value of the investment is temporary, then no impairment is recorded.
Income Taxes
Income Taxes — We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted.

We periodically assess our deferred tax assets, including the benefit from net operating losses, to determine if a valuation allowance is required. A valuation allowance is established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. Realization of the deferred tax assets is dependent upon, among other matters, taxable income in prior years available for carryback, estimates of future income, tax planning strategies, and reversal of existing temporary differences.
Property and Equipment, net
Property and Equipment, net — Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is generally computed using the straight-line basis over the estimated useful lives of the assets as follows:

Buildings: 20 – 40 years
Building and leasehold improvements: 10 years or remaining life of building/lease term if less than 10 years
Information systems: over the term of the license
Furniture, fixtures and computer and equipment: 5 – 7 years
Model and sales office improvements: lesser of 3 years or the life of the community

Maintenance and repair costs are expensed as incurred.

Depreciation expense was $7.6 million, $7.5 million, and $6.3 million, respectively, for the years ended December 31, 2022, 2021, and 2020. Depreciation expense is recorded in General and administrative expenses in the Consolidated Statement of Operations.
Goodwill Goodwill — The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 350, Intangibles — Goodwill and Other. ASC 350 requires that goodwill and intangible assets that do not have finite lives not be amortized, but rather assessed for impairment at least annually or more frequently if certain impairment indicators are present. We perform our annual impairment test during the fourth quarter or whenever impairment indicators are present.
Insurance Costs, Self-Insurance Reserves and Warranty Reserves
Insurance Costs, Self-Insurance Reserves and Warranty Reserves — We have certain deductible limits for each of our policies under our workers’ compensation, automobile, and general liability insurance policies, and we record warranty expense and liabilities for the estimated costs of potential claims for construction defects. The excess liability is aggregated annually and applied in excess of automobile liability, employer’s liability under workers compensation and general liability policies. We also generally require our subcontractors and design professionals to indemnify us and provide evidence of insurance for liabilities arising from their work, subject to certain limitations. We are the parent of Beneva Indemnity Company (“Beneva”), a captive insurance company, which provides insurance coverage for construction defects discovered up to ten years following the close of a home, coverage for premise operations risk, and property damage. We accrue for the expected costs associated with the deductibles and self-insured amounts under our various insurance policies based on historical claims, estimates for claims incurred but not reported, and potential for recovery of costs from insurance and other sources. The estimates are subject to significant variability due to factors, such as claim settlement patterns, litigation trends, and the extended period of time in which a construction defect claim might be made after the closing of a home.

Our loss reserves for structural defects (maintained by Beneva) are based on factors that include an actuarial study for structural, historical and anticipated claims, trends related to similar product types, number of home closings, and geographical areas. We also provide third-party warranty coverage on homes where required by Federal Housing Administration or Veterans Administration lenders. We regularly review the reasonableness and adequacy of our reserves and make adjustments to the balance of the preexisting reserves to reflect changes in trends and historical data as information becomes available. Self-insurance and warranty reserves are included in Accrued expenses and other liabilities in the Consolidated Balance Sheets.

We offer a one year limited warranty to cover various defects in workmanship or materials, two year limited warranty on certain systems (such as electrical or cooling systems), and a ten year limited warranty on structural defects. Warranty reserves are established as homes close in an amount estimated to be adequate to cover expected costs of materials and outside labor during warranty periods. Our warranty is not considered a separate deliverable in the sales arrangement since it is not priced separately from the home, therefore, it is accounted for in accordance with ASC Topic 450, Contingencies, which states that warranties that are not separately priced are generally accounted for by accruing the estimated costs to fulfill the warranty obligation. The amount of revenue related to the product is recognized in full upon the delivery of the home if all other criteria for revenue recognition have been met. As a result, we accrue the estimated costs to fulfill the warranty obligation at the time a home closes, as a component of Cost of home closings on the Consolidated Statements of Operations.
Stock Based Compensation Stock Based Compensation — We have stock options, performance-based restricted stock units and non-performance-based restricted stock units, which we account for in accordance with ASC Topic 718-10, Compensation — Stock Compensation. The fair value for stock options is measured and estimated on the date of grant using the Black-Scholes option pricing model and recognized evenly over the vesting period of the options. Performance-based restricted stock units are measured using the closing price on the date of grant and expensed using a probability of attainment calculation which determines the likelihood of achieving the performance targets. Non-performance-based restricted stock units are time-based awards and measured using the closing price on the date of grant and are expensed ratably over the vesting period.
Employee Benefit Plans Employee Benefit Plans — We maintain a defined contribution plan pursuant to Section 401(k) of the IRC (“401(k) Plan”). Each eligible employee may elect to make before-tax contributions up to the current tax limits. At December 31, 2022, we match 100% of employees’ voluntary contributions up to 4% of eligible compensation, and 50% for each dollar contributed between 4% and 5% of eligible compensation.
Treasury Stock Treasury Stock — We account for treasury stock in accordance with ASC Topic 505-30, Equity - Treasury Stock. Repurchased shares are reflected as a reduction in stockholders' equity and subsequent sale of repurchased shares are recognized as a change in equity. To date, we have not sold any treasury stock.
Revenue Recognition
Revenue Recognition — Revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard's core principle requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services.

Home and land closings revenue
Under Topic 606, the following steps are applied to determine home closings revenue and land closings revenue recognition: (1) identify the contract(s) with our customer; (2) identify the performance obligations in the contract; (3) determine the
transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the performance obligation(s) are satisfied. Our home sales transactions, have one contract, with one performance obligation, with each customer to build and deliver the home purchased (or develop and deliver land). Based on the application of the five steps, the following summarizes the timing and manner of home and land sales revenue:

•Revenue from closings of residential real estate is recognized when 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, if any, is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow.

Amenity and other revenue
We own and operate certain amenities such as golf courses, club houses, and fitness centers, which require us to provide club members with access to the facilities in exchange for the payment of club dues. We collect club dues and other fees from club members, which are invoiced on a monthly basis. Revenue from our golf club operations is also included in amenity and other revenue. Amenity and other revenue also includes revenue from the sale of assets from our Urban Form operations and Build-to-Rent operations.

Financial services revenue
Mortgage operations and hedging activity related to financial services are not within the scope of Topic 606. Loan origination fees (including title fees, points, and closing costs) are recognized at the time the related real estate transactions are completed, which is usually upon the close of escrow. All of the loans TMHF originates are sold to third party investors within a short period of time, on a non-recourse basis. Gains and losses from the sale of mortgages are recognized in accordance with ASC Topic 860-20, Sales of Financial Assets. TMHF does not have continuing involvement with the transferred assets; therefore, we derecognize the mortgage loans at time of sale, based on the difference between the selling price and carrying value of the related loans upon sale, recording a gain/loss on sale in the period of sale. Also included in Financial services revenue/expenses is the realized and unrealized gains and losses from hedging instruments. ASC Topic 815-25, Derivatives and Hedging, requires that all hedging instruments be recognized as assets or liabilities on the balance sheet at their fair value. We do not meet the criteria for hedge accounting; therefore, we account for these instruments as free-standing derivatives, with changes in fair value recognized in Financial services revenue/expenses on the statement of operations in the period in which they occur.
Advertising Costs Advertising Costs — We expense advertising costs as incurred.
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements — In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients for applying U.S. GAAP to contracts affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and entities could elect to apply the amendments prospectively through December 31, 2022. In December 2022, FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848, which deferred the effective date deadline from December 31, 2022 to December 31, 2024. The use of LIBOR is primarily limited to our financial services mortgage warehouse facilities and our Revolving Credit Facilities. During 2022 our warehouse facilities were modified to directly replace the reference rate but did not change the amount or timing of contractual cash flows. As such, we have elected the use of the practical expedient and treated such modification as a continuation of the debt agreement. Our Revolving Credit Facilities provide the option to continue the use of LIBOR until its expiration. The adoption of ASU 2020-04 has not had a material impact on our consolidated financial statements and disclosures.
Earnings Per Share Basic earnings per share is computed by dividing net income available to TMHC by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all outstanding dilutive equity awards to issue shares of Common Stock were exercised or settled.
Fair Value Measurement
ASC Topic 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 — Fair value is based on quoted prices for identical assets or liabilities in active markets.

Level 2 — Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable.

Level 3 — Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique.
The fair value of our mortgage loans held for sale is derived from negotiated rates with partner lending institutions. The fair value of derivative assets and liabilities includes IRLCs and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loans, quoted MBS prices and the probability that the mortgage loan will fund within the terms of the IRLCs. We estimate the fair value of the forward sales commitments based on quoted MBS prices. The fair value of our mortgage warehouse borrowings, loans payable and other borrowings, and the borrowings under our Revolving Credit Facilities approximate carrying value due to their short term nature and variable interest rate terms. The fair value of our Senior Notes is derived from quoted market prices by independent dealers in markets that are not active. The fair value of our Equity Security Investment in a public company is based upon quoted prices for identical assets in an active market. There were no changes to or transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2022, when compared to December 31, 2021.
Segment Reporting
Our reporting segments are as follows:
EastAtlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
CentralAustin, Dallas, Denver, and Houston
WestBay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial ServicesTMHF, Inspired Title, and TMIS
Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity.
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Lease, Cost
A summary of our leases is shown below:
Operating LeasesFinance Leases
As of December 31, As of December 31,
(Dollars in millions)202220212020202220212020
Weighted average discount rate5.9 %5.9 %6.1 %7.3 %7.3 %7.3 %
Weighted average remaining lease term (in years)4.14.15.286.086.987.9
Payments on lease liabilities$29.2$20.7$16.8$1.3$1.3$1.3
Recorded lease expense$25.4$15.9$14.8$2.0$2.0$2.0
Schedule of Future Lease Payments
The future minimum lease payments required under our leases as of December 31, 2022 are as follows (dollars in thousands):
Years Ending December 31,Operating Lease
Payments		Finance Lease
Payments		Total Lease
Payments
2023$27,598 $1,341 $28,939 
202420,676 1,334 22,010 
202514,847 1,325 16,172 
20269,883 1,325 11,208 
20276,688 1,325 8,013 
Thereafter(1)
5,705 263,660 269,365 
Total lease payments$85,397 $270,310 $355,707 
Less: Interest$9,548 $245,985 $255,533 
Present value of lease liabilities$75,849 $24,325 $100,174 
(1) Includes a 90 year land lease.
Summary of Prepaid Expenses and Other Assets Prepaid expenses and other assets, net consist of the following:
 As of December 31,
(Dollars in thousands)20222021
Prepaid expenses$45,872 $40,114 
Other assets138,755 118,697 
Build-to-Rent assets65,241 93,538 
Urban Form assets14,434 62,637 
Total prepaid expenses and other assets, net$264,302 $314,986 
v3.22.4
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Summary of Components of Basic and Diluted Earnings Per Share The following is a summary of the components of basic and diluted earnings per share:
 Year Ended December 31,
(Dollars in thousands except per share data)202220212020
Numerator:
Net income available to TMHC— basic$1,052,800 $663,026 $243,439 
Denominator:
Weighted average shares — basic 114,982 126,077 127,812 
Restricted stock units707 920 865 
Stock options532 771 319 
Warrants— 251 174 
Weighted average shares — diluted116,221 128,019 129,170 
Earnings per common share — basic:
Net income available to Taylor Morrison Home Corporation $9.16 $5.26 $1.90 
Earnings per common share — diluted:
Net income available to Taylor Morrison Home Corporation $9.06 $5.18 $1.88 
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS (Tables)
 12 Months Ended
Dec. 31, 2022
Real Estate [Abstract]  
Schedule of Inventory
Inventory consists of the following:
 As of December 31,
(Dollars in thousands)20222021
Real estate developed or under development$3,607,227 $3,895,681 
Real estate held for development or held for sale (1)

43,314 70,305 
Total owned lots3,650,541 3,965,986 
Operating communities (2)
1,506,241 1,309,551 
Capitalized interest190,123 168,670 
Total owned inventory5,346,905 5,444,207 
Consolidated real estate not owned 23,971 55,314 
Total real estate inventory$5,370,876 $5,499,521 
(1) Real estate held for development or held for sale includes properties which are not in active production.
(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.
Summary of Development Status of Land Inventory
The development status of our land inventory is as follows:

As of December 31,
20222021
(Dollars in thousands)Owned LotsBook Value of Land and DevelopmentOwned LotsBook Value of Land and Development
Homebuilding owned lots
Undeveloped14,985 $522,594 17,671 $636,385 
Under development10,716 1,106,751 11,446 964,353 
Finished18,366 2,018,062 18,896 2,266,309 
Total homebuilding owned lots44,067 3,647,407 48,013 3,867,047 
Other assets(1)
— 3,134 5,298 98,939 
Total owned lots44,067 $3,650,541 53,311 $3,965,986 
(1)The remaining book value of land and development as of December 31, 2022 relates to parcels of commercial assets which are. excluded from the owned lots presented in the table.
Schedule Of Controlled Lots The table below presents a summary of our controlled lots for the following periods (dollars in thousands):
As of
December 31, 2022December 31, 2021
Controlled LotsPurchase Price
Land Deposits (1)
Controlled LotsPurchase Price
Land Deposits (1)
Homebuilding controlled lots
Land option purchase contracts6,582 $428,612 $47,678 8,360 $507,161 $57,554 
Land banking arrangements 7,369 $1,057,065 156,653 5,731 749,813 117,721 
Other controlled lots16,891 956,712 50,218 14,671 1,338,284 38,505 
Total controlled lots30,842 $2,442,389 $254,549 28,762 $2,595,258 $213,780 
(1) Land deposits are non-refundable and represent exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at December 31, 2022 and December 31, 2021 we had refundable deposits of $8.8 million and $15.7 million, respectively.
Schedule of Interest Capitalized, Incurred, Expensed and Amortized Interest capitalized, incurred and amortized is as follows:
 Year Ended December 31,
(Dollars in thousands)202220212020
Interest capitalized — beginning of period$168,670 $163,780 $115,593 
Interest incurred(1)
159,913 154,623 164,085 
Interest amortized to cost of home closings(138,460)(149,733)(115,898)
Interest capitalized — end of period$190,123 $168,670 $163,780 
(1) Excludes Interest expense, net on the Consolidated Statement of Operations as such amounts are not capitalizable.
v3.22.4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method
Summarized, unaudited condensed combined financial information of unconsolidated entities that are accounted for by the equity method is as follows (in thousands):

 As of December 31,
(Dollars in thousands)20222021
Assets:
Real estate inventory$749,942 $414,687 
Other assets146,770 118,990 
Total assets$896,712 $533,677 
Liabilities and owners’ equity:
Debt$238,263 $167,842 
Other liabilities31,824 16,245 
Total liabilities$270,087 $184,087 
Owners’ equity:
TMHC$282,900 $171,406 
Others343,725 178,184 
Total owners’ equity$626,625 $349,590 
Total liabilities and owners’ equity$896,712 $533,677 
 Year Ended December 31,
(Dollars in thousands)202220212020
Revenues$168,695 $130,640 $161,888 
Costs and expenses(163,488)(97,596)(129,764)
Income of unconsolidated entities$5,207 $33,044 $32,124 
TMHC’s share in net (loss)/income from unconsolidated entities
          $(14,184)(1)
$11,130 $11,176 
Distributions from unconsolidated entities$130,545 $42,655 $51,626 
(1) TMHC's share in net loss from unconsolidated entities relates to the impairment of our investment in one of our unconsolidated joint ventures.
v3.22.4
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Summary of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following:

 As of December 31,
(Dollars in thousands)20222021
Real estate development costs to complete$53,155 $49,833 
Compensation and employee benefits112,294 166,272 
Self-insurance and warranty reserves161,675 141,839 
Interest payable37,434 48,551 
Property and sales taxes payable30,046 29,384 
Other accruals95,649 89,330 
Total accrued expenses and other liabilities$490,253 $525,209 
Summary of Changes in Reserves A summary of the changes in reserves are as follows:
 Year Ended December 31,
(Dollars in thousands)202220212020
Reserves — beginning of period$141,839 $118,116 $120,048 
Net additions to reserves due to WLH acquisition— — 9,984 
Additions to reserves76,643 77,827 62,722 
Costs and claims incurred(76,994)(67,704)(82,137)
Change in estimates to pre-existing reserves20,187 13,600 7,499 
Reserves — end of period$161,675 $141,839 $118,116 
v3.22.4
DEBT (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Senior Notes and Other Borrowings
Total debt consists of the following:
As of December 31,
20222021
(Dollars in thousands)PrincipalUnamortized Debt Issuance (Costs) / PremiumCarrying ValuePrincipalUnamortized Debt Issuance (Costs) / PremiumCarrying Value
5.875% Senior Notes due 2023
— — — 350,000 (733)349,267 
5.625% Senior Notes due 2024
350,000 (628)349,372 350,000 (1,166)348,834 
5.875% Senior Notes due 2027
500,000 (3,459)496,541 500,000 (4,243)495,757 
6.625% Senior Notes due 2027(1)
27,070 1,310 28,380 300,000 17,718 317,718 
5.75% Senior Notes due 2028
450,000 (3,183)446,817 450,000 (3,814)446,186 
5.125% Senior Notes due 2030
500,000 (4,807)495,193 500,000 (5,440)494,560 
Senior Notes subtotal1,827,070 (10,767)1,816,303 2,450,000 2,322 2,452,322 
Loans payable and other borrowings361,486 — 361,486 404,386 — 404,386 
$1 Billion Revolving Credit Facility(2)(3)
— — — — — — 
$100 Million Revolving Credit Facility(2)(3)
— — — 31,529 — 31,529 
Mortgage warehouse borrowings306,072 — 306,072 413,887 — 413,887 
Total debt$2,494,628 $(10,767)$2,483,861 $3,299,802 $2,322 $3,302,124 
(1) Unamortized Debt Issuance (Cost)/Premium for such notes is reflective of fair value adjustments as a result of purchase accounting.
(2) Unamortized debt issuance costs are included in the Prepaid expenses and other assets, net on the Consolidated Balance Sheets.
(3)The $1 Billion Revolving Credit Facility Agreement together with the $100 Million Revolving Credit Facility Agreement, the “Revolving Credit Facilities”.
Summary of Mortgage Subsidiary Borrowings
The following is a summary of our mortgage subsidiary warehouse borrowings:

(Dollars in thousands)December 31, 2022
FacilityAmount
Drawn		Facility
Amount
Interest Rate(1)
Expiration Date
Collateral (2)
Warehouse A
$29,066 $60,000 
Daily SOFR + 1.70%
On DemandMortgage Loans
Warehouse B
94,258 150,000 
BSBY 1M + 1.65%
On DemandMortgage Loans
Warehouse C
53,607 75,000 
Term SOFR + 1.65%
On DemandMortgage Loans and Restricted Cash
Warehouse D
83,259 140,000 
Daily SOFR + 1.50%
September 6, 2023Mortgage Loans
Warehouse E
45,882 70,000 
Term SOFR + 1.60%
On DemandMortgage Loans
Total$306,072 $495,000 
 December 31, 2021
FacilityAmount
Drawn		Facility
Amount
Interest Rate(3)
Expiration Date
Collateral (2)
Warehouse A
$12 $10,000 
LIBOR + 1.75%
On DemandMortgage Loans
Warehouse B
86,409 150,000 
LIBOR + 1.75%
On DemandMortgage Loans
Warehouse C
116,601 250,000 
LIBOR + 2.05%
On DemandMortgage Loans and Restricted Cash
Warehouse D
105,065 150,000 
LIBOR + 1.65%
November 20, 2022Mortgage Loans
Warehouse E
105,800 200,000 
LIBOR + 1.50%
On DemandMortgage Loans
Total$413,887 $760,000 
    

(1) Our warehouse borrowings have transitioned from LIBOR to the Secured Overnight Financing Rate (SOFR), and the Bloomberg Short-Term Bank Yield Index (BSBY).
(2) The mortgage warehouse borrowings outstanding as of December 31, 2022 and 2021, are collateralized by $346.4 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage receivables, and $2.1 million and $3.5 million, respectively, of cash, which is included in restricted cash on our Consolidated Balance Sheet.
(3) Subject to certain interest rate floors.
Principal Maturities of Total Debt
Principal maturities of total debt for the year ended December 31, 2022 are as follows (in thousands):
(Dollars in thousands)Year Ended December 31,
2023$503,367 
2024415,320 
202552,571 
202628,579 
2027537,105 
Thereafter957,686 
Total debt$2,494,628 
v3.22.4
FAIR VALUE DISCLOSURES (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Carrying Value and Fair Value of Financial Instruments The carrying value and fair value of our financial instruments are as follows:
  As of December 31, 2022As of December 31, 2021
(Dollars in thousands)Level in
Fair Value
Hierarchy		Carrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
Description:
Mortgage loans held for sale2 $346,364 $346,364 $467,534 $467,534 
IRLCs3 2,386 2,386 2,110 2,110 
MBSs2 1,090 1,090 (449)(449)
Mortgage warehouse borrowings2 306,072 306,072 413,887 413,887 
Loans payable and other borrowings2 361,486 361,486 404,386 404,386 
5.875% Senior Notes due 2023 (1)
2 — — 349,267 365,890 
5.625% Senior Notes due 2024 (1)
2 349,372 347,375 348,834 372,750 
5.875% Senior Notes due 2027 (1)
2 496,541 480,060 495,757 560,000 
6.625% Senior Notes due 2027 (1)
2 28,380 26,123 317,718 315,750 
5.750% Senior Notes due 2028 (1)
2 446,817 421,358 446,186 502,875 
5.125% Senior Notes due 2030 (1)
2 495,193 434,330 494,560 550,000 
$100 Million Revolving Credit Facility
2 — — 31,529 31,529 
Equity Security Investment
1 460 460 6,400 6,400 
(1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs or bond premium. Debt issuance costs are not factored into the fair value calculation for the Senior Notes.
Fair Value of Assets Measured on a Nonrecurring Basis The following table presents the fair value for our inventories measured at fair value on a nonrecurring basis:
(Dollars in thousands)Level in
Fair Value
Hierarchy		As of
December 31, 2022
Description:
Real estate inventories 348,360 
v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes
The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following:
 Year Ended December 31,
(Dollars in thousands)202220212020
Current:
Federal$203,119 $73,087 $11,621 
State48,134 23,493 11,733 
Current tax provision$251,253 $96,580 $23,354 
Deferred:
Federal$66,667 $75,044 $45,594 
State18,508 9,117 5,642 
Deferred tax provision$85,175 $84,161 $51,236 
Total income tax provision$336,428 $180,741 $74,590 
Schedule of Reconciliation of Provision (Benefit) for Income Taxes
A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory income tax rate of 21% to income before provision for income taxes is as follows:
Year Ended December 31,
202220212020
Tax at federal statutory rate21.0 %21.0 %21.0 %
State income taxes (net of federal benefit)3.9 3.8 4.6 
Non-controlling interest(0.1)(0.6)— 
Uncertain tax positions— (0.2)(0.1)
Energy tax credits(1.3)(1.4)(2.9)
Disallowed compensation expense0.4 0.2 0.9 
Disallowed acquisition expenses— — 2.1 
Impact of CARES Act— (1.3)(2.2)
Other0.3 (0.6)(0.4)
Effective Rate24.2 %20.9 %23.0 %
Summary of Components of Deferred Tax Assets and Liabilities A summary of these components for the years ending December 31, 2022 and 2021 is as follows:
Year Ended December 31,
(Dollars in thousands)20222021
Deferred tax assets:
Real estate inventory$62,990 $68,426 
Accruals and reserves48,391 56,244 
Other5,425 11,739 
Net operating losses (1)
62,150 76,119 
Capital loss carryforward36,054 36,054 
Total deferred tax assets$215,010 $248,582 
Deferred tax liabilities:
Real estate inventory, intangibles, other(10,632)(11,162)
Valuation allowance(36,054)(36,054)
Deferred income (2)
(100,668)(50,126)
Total net deferred tax assets$67,656 $151,240 
(1) A portion of our net operating losses is limited by Section 382 of the Internal Revenue Code, stemming from three acquisitions: 1) the 2011 acquisition of the Company by our former principal equityholders, 2) the 2018 acquisition of AV Homes and 3) the 2020 acquisition of WLH. All three acquisitions were deemed to be a change in control as defined by Section 382.
(2) In prior years we presented the deferred tax assets on real estate inventory, net of deferred income. As of December 31, 2022, we presented the deferred tax liability for deferred income separate from real estate inventory deferred tax assets for the periods ended December 31, 2022 and 2021.
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits
The following is a reconciliation of the total amounts of unrecognized tax benefits:
Year Ending December 31,
(Dollars in thousands)202220212020
Beginning of the period$— $5,762 $6,158 
Increases from current year acquisitions— — — 
Increases of prior year items— — — 
Settlement with tax authorities— — — 
Decreased for tax positions of prior years— (4,140)— 
Decreased due to statute of limitations— (1,622)(396)
End of the period$— $— $5,762 
v3.22.4
STOCKHOLDERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stock Repurchases
The following table summarizes share repurchase activity for the program for the years ended December 31, 2022 and 2021:
 Year Ended December 31,
 (Dollars in thousands)20222021
Amount available for repurchase — beginning of period(1)

$230,413 $86,831 
Additional amount authorized for repurchase(2)
500,000 500,000 
Unused amount as part of authorization renewal(3)
(75,000)(74,998)
Amount repurchased at cost, 14,568,364 and 9,918,104 shares as of December 31, 2022 and December 31, 2021, respectively
(376,275)(281,420)
Amount available for repurchase — end of period$279,138 $230,413 
(1) Represents the amount available for repurchase as of January 1 for the years provided, adjusted for previously expired share repurchase authorizations.
(2) Amount in 2022 includes a $500.0 million new authorization announced on May 31, 2022. Amount in 2021 includes a $250.0 million renewal announced on each June 1, 2021 and December 13, 2021.
(3)Amount represents the unused value of the repurchase authorization from December 31, 2021, which was cancelled when the May 31, 2022 authorization was announced. Amount represents the unused value of the repurchase authorization from June 1, 2021, which was cancelled when the December 31, 2021 authorization was announced.
v3.22.4
STOCK BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation Expense
The following table provides information regarding the amount and components of stock-based compensation expense, which is included in general and administrative expenses in the Consolidated Statement of Operations:
(Dollars in thousands)Year Ended December 31,
202220212020
Restricted stock units (1) (2)
$22,464 $15,856 $19,938 
Stock options4,437 4,087 7,085 
Total stock compensation$26,901 $19,943 $27,023 
(1) Includes compensation expense related to time-based RSUs and PRSUs.
(2) Stock-based compensation expense in 2021 and 2020 includes expense recognized for equity awards associated with the acquisition of WLH, which were converted from WLH to TMHC equity awards. An additional $5.1 million of stock based compensation expense relating to the accelerations of awards from the WLH acquisition were charged to Transaction expenses on the Consolidated Statement of Operations for the year ended December 31, 2020.
Summary of Stock Option Activity
The following table summarizes stock option activity for the Plan for each year presented:

 Year Ended December 31,
 202220212020
 Number of
Options		Weighted
Average
Exercise/Grant
Price
Number of
Options(1)
Weighted
Average
Exercise/Grant
Price		Number of
Options		Weighted
Average
Exercise/Grant
Price
Outstanding, beginning3,165,612 $22.02 3,772,775 $19.73 3,339,244 $18.98 
Granted(1)
519,799 29.30 712,910 28.64 1,139,583 21.95 
Exercised(323,625)20.69 (1,204,283)19.37 (551,845)17.91 
Cancelled/forfeited(1)
(88,528)24.64 (115,790)21.53 (154,207)20.93 
Balance, ending3,273,258 $23.35 3,165,612 $22.02 3,772,775 $19.73 
Options exercisable, at December 31,1,775,881 $20.50 1,407,618 $19.12 1,934,328 $18.73 
(1) Excludes the number of options granted and canceled in the same period.

 As of December 31,
(Dollars in thousands)202220212020
Unamortized value of unvested stock options (net of estimated forfeitures)$7,712 $7,515 $6,847 
Weighted-average period (in years) that expense is expected to be recognized2.52.52.5
Weighted-average remaining contractual life (in years) for options outstanding6.67.06.6
Weighted-average remaining contractual life (in years) for options exercisable5.25.34.9
Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants
The following table summarizes the weighted-average assumptions and fair value used for stock options grants:
 Year Ended December 31,
 202220212020
Expected dividend yield—%—%—%
Expected volatility(1)
30.46%24.65%24.19%
Risk-free interest rate(1)
1.91%0.75%1.19%
Expected term (in years)(1)
6.256.256.25
Weighted average fair value of options granted during the period$9.94$7.45$5.89
(1)Expected volatilities and expected term are based on the historical information of comparable publicly traded homebuilders. Due to the limited number and homogeneous nature of option holders, the expected term was evaluated using a single group. The risk-free rate is based on the U.S. Treasury yield curve for periods equivalent to the expected term of the options on the grant date.
Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable
The following table provides information pertaining to the aggregate intrinsic value of options outstanding and exercisable at December 31, 2022, 2021 and 2020 (excluding options relating to the acquisition of WLH)

 As of December 31,
(Dollars in thousands)202220212020
Aggregate intrinsic value of options outstanding$21,439 $38,190 $21,399 
Aggregate intrinsic value of options exercisable$15,385 $18,897 $11,903 
Summary of Activity of Stock Units
The following table summarizes the activity of our PRSUs:
 Year Ended December 31,
202220212020
Balance, beginning926,193 930,633 998,639 
Granted272,716 289,308 295,405 
Vested(380,632)(275,286)(319,732)
Forfeited(15,898)(18,462)(43,679)
Balance, ending802,379 926,193 930,633 

Year Ended December 31,
(Dollars in thousands):202220212020
PRSU expense recognized$12,642 $8,125 $5,692 
Unamortized value of PRSUs $8,911 $8,419 $7,848 
Weighted-average period expense is expected to be recognized (in years)1.81.81.8
The following tables summarize the activity of our RSUs:

 Year Ended December 31,
 202220212020
(Dollars in thousands except per share data):Number of
RSUs		Weighted
Average
Grant
Date Fair
Value
Number of
RSUs(1)
Weighted
Average
Grant
Date Fair
Value		Number of
RSUs		Weighted
Average
Grant
Date Fair
Value
Outstanding, beginning804,465 $24.73 881,272 $21.33 709,754 $18.11 
Granted359,993 29.04 370,762 28.62 1,228,451 23.07 
Vested(319,595)24.32 (390,358)21.28 (1,004,450)16.83 
Forfeited(30,029)26.90 (57,211)23.68 (52,483)19.65 
Balance, ending814,834 $26.74 804,465 $24.73 881,272 $21.33 



Year Ended December 31,
(Dollars in thousands):202220212020
RSU expense recognized(1)
$9,822 $7,731 $14,246 
Unamortized value of RSUs(1)
$10,486 $10,561 $9,116 
Weighted-average period expense is expected to be recognized (in years)(1)
1.71.71.8
(1) RSUs relating to the WLH acquisition are excluded from the table above. As of December 31, 2020, we recognized an additional $7.1 million of RSU expense. As of December 31, 2022, there is no remaining unamortized expense related to WLH RSU's.
v3.22.4
OPERATING AND REPORTING SEGMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Excluding Discontinued Operations Segment information is as follows:
 Year Ended December 31, 2022
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$2,739,759 $2,024,730 $3,228,853 $135,491 $96,084 $8,224,917 
Gross margin$718,223 $493,006 $791,944 $51,531 $37,662 $2,092,366 
Selling, general and administrative expense(180,177)(137,824)(167,751)— (157,460)(643,212)
Net (loss)/income from unconsolidated entities— (55)(18,445)5,271 (955)(14,184)
Interest and other expense, net (6,725)(10,364)(23,881)— (15,201)(56,171)
Gain on extinguishment of debt— — — — 13,876 13,876 
Income/(loss) before income taxes$531,321 $344,763 $581,867 $56,802 $(122,078)$1,392,675 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.


Year Ended December 31, 2021
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$2,423,948 $1,741,689 $3,126,621 $164,615 $44,392 $7,501,265 
Gross margin$522,721 $336,896 $614,130 $62,767 $11,367 $1,547,881 
Selling, general and administrative expense(184,744)(133,991)(187,515)— (162,092)(668,342)
Net income/(loss) from unconsolidated entities— 306 2,190 8,644 (10)11,130 
Interest and other expense, net (923)(3,103)(7,228)— (16,307)(27,561)
Income/(loss) before income taxes
$337,054 $200,108 $421,577 $71,411 $(167,042)$863,108 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.
 Year Ended December 31, 2020
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated (1)
Total
Total revenue$1,919,247 $1,633,428 $2,396,101 $155,827 $24,717 $6,129,320 
Gross margin$319,361 $306,158 $352,648 $66,918 $(866)$1,044,219 
Selling, general and administrative expense(160,222)(132,796)(165,682)— (113,675)(572,375)
Net income from unconsolidated entities— 23 683 10,470 — 11,176 
Interest and other expense, net (2)
(574)(4,471)(37,600)(8,971)(97,040)(148,656)
Loss on extinguishment of debt— — — — (10,247)(10,247)
Income/(loss) before income taxes
$158,565 $168,914 $150,049 $68,417 $(221,828)$324,117 
(1) Includes the activity from our Build-To-Rent and Urban Form operations.
(2) Interest and other expense, net includes transaction related expenses for business acquisitions.
Assets from Segment
As of December 31, 2022
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,820,765 $1,359,805 $2,453,662 $— $— $5,634,232 
Investments in unconsolidated entities46,629 104,070 80,310 5,283 46,608 282,900 
Other assets216,816 251,727 613,029 431,535 1,040,485 2,553,592 
Total assets$2,084,210 $1,715,602 $3,147,001 $436,818 $1,087,093 $8,470,724 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
As of December 31, 2021
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,781,948 $1,282,024 $2,665,084 $— $— $5,729,056 
Investments in unconsolidated entities— 87,600 79,531 4,275 — 171,406 
Other assets196,126 221,906 588,520 559,233 1,261,530 2,827,315 
Total assets$1,978,074 $1,591,530 $3,333,135 $563,508 $1,261,530 $8,727,777 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
As of December 31, 2020
(Dollars in thousands)EastCentralWestFinancial Services
Corporate
and
Unallocated(1)
Total
Real estate inventory and land deposits$1,712,852 $1,176,604 $2,568,595 $— $— $5,458,051 
Investments in unconsolidated entities— 58,052 65,395 4,498 10 127,955 
Other assets170,382 192,981 578,231 284,265 926,130 2,151,989 
Total assets$1,883,234 $1,427,637 $3,212,221 $288,763 $926,140 $7,737,995 
(1) Includes the assets from our Build-To-Rent and Urban Form operations.
v3.22.4
MORTGAGE HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summaries of Derivative Instruments
The following summarizes derivative instrument assets (liabilities) as of the periods presented:

As of
December 31, 2022December 31, 2021
(Dollars in thousands)Fair Value
Notional Amount(1)
Fair Value
Notional Amount(1)
IRLCs$2,386 $375,030 $2,110 $158,299 
MBSs1,090 504,000 (449)407,000 
Total, net$3,476 $1,661 
(1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved.
v3.22.4
BUSINESS COMBINATIONS (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Summary of Fair Value of Assets Acquired and Liabilities Created The following is a summary of the final fair value of assets acquired and liabilities assumed.
(Dollars in thousands)
Acquisition DateFebruary 6, 2020
Assets acquired
Real estate inventory$2,069,323 
Prepaid expenses and other assets(1)
265,729 
Deferred tax assets, net148,193 
Goodwill(2)
513,768 
Total assets$2,997,013 
Less liabilities assumed
Accrued expenses and other liabilities$457,365 
Total debt(3)
1,306,578 
Non-controlling interest116,157 
Net assets acquired$1,116,913 
(1) Includes cash acquired.
(2) Goodwill is not deductible for tax purposes. We allocated $465.6 million and $48.2 million of goodwill to the West and Central homebuilding segments, respectively.
(3) See Note 8 - Debt
Unaudited Pro Forma Results of Business Combinations
For the Year Ended December 31,
(Dollars in thousands except per share data)2020
Total revenue$6,216,418 
Net income before allocation to non-controlling interests309,022 
Net loss attributable to non-controlling interests — joint ventures6,975 
Net income available to TMHC$302,047 
Weighted average shares - Basic131,011 
Weighted average shares - Diluted132,370 
Earnings per share - Basic $2.31 
Earnings per share - Diluted$2.28 
v3.22.4
BUSINESS (Details)
 12 Months Ended
Dec. 31, 2022
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 4
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Significant Accounting Policies [Line Items]      
Weighted average remaining lease term (in years) 86 years 86 years 10 months 24 days 87 years 10 months 24 days
Weighted average discount rate 7.30% 7.30% 7.30%
Inventory Write-down $ 24,870,000 $ 0 $ 9,611,000
Land held for sale impairments 0 4,663,000 4,347,000
Real estate inventory 5,370,876,000 5,499,521,000  
Impairment charges on unconsolidated entities 14,700,000 0 0
Depreciation expense 7,600,000 7,500,000 6,300,000
Impairment of goodwill $ 0 0 0
Insurance coverage period 10 years    
Warranty coverage period, workmanship or materials 1 year    
Warranty coverage period, systems 2 years    
Warranty coverage period, structural defects 10 years    
Contribution made to consolidated defined contribution plan $ 13,600,000 11,300,000 4,700,000
Advertising costs $ 33,900,000 30,400,000 31,900,000
Continuing Operations      
Significant Accounting Policies [Line Items]      
Inventory Write-down   $ 0  
Minimum      
Significant Accounting Policies [Line Items]      
Life cycle of communities (in years) 2 years    
Derivative term 30 days    
Maximum      
Significant Accounting Policies [Line Items]      
Life cycle of communities (in years) 5 years    
Derivative term 60 days    
Model and sales office improvements      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 3 years    
Buildings | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 20 years    
Buildings | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 40 years    
Building and Leasehold Improvements      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 10 years    
Furniture, fixtures and computer equipment | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 5 years    
Furniture, fixtures and computer equipment | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, useful life 7 years    
Employer Matching Contribution Tranche One      
Significant Accounting Policies [Line Items]      
Defined contribution plan employee matching contribution 100.00%    
Percentage of contribution based on participant's age and ranges 4.00%    
Employer Matching Contribution Tranche Two      
Significant Accounting Policies [Line Items]      
Defined contribution plan employee matching contribution 50.00%    
Employer Matching Contribution Tranche Two | Minimum      
Significant Accounting Policies [Line Items]      
Percentage of contribution based on participant's age and ranges 4.00%    
Employer Matching Contribution Tranche Two | Maximum      
Significant Accounting Policies [Line Items]      
Percentage of contribution based on participant's age and ranges 5.00%    
East | Continuing Operations      
Significant Accounting Policies [Line Items]      
Inventory Write-down     $ 9,600,000
West | Continuing Operations      
Significant Accounting Policies [Line Items]      
Inventory Write-down $ 24,900,000    
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Lease Details (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Leases      
Weighted average discount rate 5.90% 5.90% 6.10%
Weighted average remaining lease term (in years) 4 years 1 month 6 days 4 years 1 month 6 days 5 years 2 months 12 days
Payments on lease liabilities $ 29,200 $ 20,700 $ 16,800
Recorded lease expense $ 25,400 $ 15,900 $ 14,800
Finance Leases      
Weighted average discount rate 7.30% 7.30% 7.30%
Weighted average remaining lease term (in years) 86 years 86 years 10 months 24 days 87 years 10 months 24 days
Payments on lease liabilities $ 1,344 $ 1,345 $ 1,325
Recorded lease expense $ 2,000 $ 2,000 $ 2,000
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Future Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating Lease Payments    
2023 $ 27,598  
2024 20,676  
2025 14,847  
2026 9,883  
2027 6,688  
Thereafter 5,705  
Total lease payments 85,397  
Less: Interest 9,548  
Present value of lease liabilities 75,849  
Finance Lease Payments    
2023 1,341  
2024 1,334  
2025 1,325  
2026 1,325  
2027 1,325  
Thereafter 263,660  
Total lease payments 270,310  
Less: Interest 245,985  
Present value of lease liabilities 24,325  
2023 28,939  
2024 22,010  
2025 16,172  
2026 11,208  
2027 8,013  
Thereafter 269,365  
Total lease payments 355,707  
Less: Interest 255,533  
Present value of lease liabilities $ 100,174 $ 96,172
Operating lease, liability, statement of financial position [Extensible List] Present value of lease liabilities Present value of lease liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Present value of lease liabilities Present value of lease liabilities
v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Prepaid expenses $ 45,872 $ 40,114
Other assets 138,755 118,697
Build-to-Rent assets 65,241 93,538
Urban Form assets 14,434 62,637
Total prepaid expenses and other assets, net $ 264,302 $ 314,986
v3.22.4
EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator:      
Net income available to TMHC— basic $ 1,052,800 $ 663,026 $ 243,439
Denominator:      
Weighted average shares - basic (in shares) 114,982 126,077 127,812
Restricted stock units (in shares) 707 920 865
Stock options (in shares) 532 771 319
Warrants (in shares) 0 251 174
Weighted average shares - diluted (in shares) 116,221 128,019 129,170
Earnings per common share — basic:      
Net income available to Taylor Morrison Home Corporation (in dollars per share) $ 9.16 $ 5.26 $ 1.90
Earnings per common share — diluted:      
Net income available to Taylor Morrison Home Corporation (in dollars per share) $ 9.06 $ 5.18 $ 1.88
v3.22.4
EARNINGS PER SHARE - Narrative (Details) - shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock options and restricted stock units (RSUs)      
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from the calculation of earnings per share (in shares) 1,485,064 1,030,282 2,335,006
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Inventory [Line Items]        
Real estate developed or under development $ 3,607,227 $ 3,895,681    
Real estate held for development or held for sale 43,314 70,305    
Operating communities 1,506,241 1,309,551    
Capitalized interest 190,123 168,670 $ 163,780 $ 115,593
Total owned inventory 5,346,905 5,444,207    
Consolidated real estate not owned 23,971 55,314    
Total real estate inventory 5,370,876 5,499,521    
Book Value of Land and Development        
Inventory [Line Items]        
Total owned lots $ 3,650,541 $ 3,965,986    
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Development Status of Land Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Book Value of Land and Development    
Inventory [Line Items]    
Undeveloped $ 522,594 $ 636,385
Under development 1,106,751 964,353
Finished 2,018,062 2,266,309
Total homebuilding owned lots 3,647,407 3,867,047
Other assets 3,134 98,939
Total owned lots 3,650,541 3,965,986
Owned Lots    
Inventory [Line Items]    
Undeveloped 14,985 17,671
Under development 10,716 11,446
Finished 18,366 18,896
Total homebuilding owned lots 44,067 48,013
Other assets 0 5,298
Total owned lots $ 44,067 $ 53,311
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Controlled Lots (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
lot
Dec. 31, 2021
USD ($)
lot
Real Estate [Line Items]    
Controlled Lots (in lots) | lot 30,842 28,762
Purchase Price $ 2,442,389 $ 2,595,258
Land deposits $ 254,549 $ 213,780
Land option purchase contracts    
Real Estate [Line Items]    
Controlled Lots (in lots) | lot 6,582 8,360
Purchase Price $ 428,612 $ 507,161
Land deposits $ 47,678 $ 57,554
Land banking arrangements    
Real Estate [Line Items]    
Controlled Lots (in lots) | lot 7,369 5,731
Purchase Price $ 1,057,065 $ 749,813
Land deposits $ 156,653 $ 117,721
Other controlled lots    
Real Estate [Line Items]    
Controlled Lots (in lots) | lot 16,891 14,671
Purchase Price $ 956,712 $ 1,338,284
Land deposits 50,218 38,505
Refundable Land Deposits    
Real Estate [Line Items]    
Land deposits $ 8,800 $ 15,700
v3.22.4
REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Capitalized Interest Costs [Roll Forward]      
Interest capitalized — beginning of period $ 168,670 $ 163,780 $ 115,593
Interest incurred 159,913 154,623 164,085
Interest amortized to cost of home closings (138,460) (149,733) (115,898)
Interest capitalized — end of period $ 190,123 $ 168,670 $ 163,780
v3.22.4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]      
Gain on land transfers $ 14,508 $ 0 $ 0
Assets 8,470,724 8,727,777 $ 7,737,995
Cash and cash equivalents 724,488 832,821  
Fixed assets 202,398 155,181  
Liabilities 3,823,865 4,756,795  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Assets 277,600 291,800  
Cash and cash equivalents 38,900 22,300  
Owned inventory 72,000 147,600  
Fixed assets 123,200 74,300  
Liabilities $ 155,500 $ 165,100  
v3.22.4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets:      
Other assets $ 2,553,592 $ 2,827,315 $ 2,151,989
Total assets 8,470,724 8,727,777 $ 7,737,995
Liabilities and owners’ equity:      
Debt 2,483,861 3,302,124  
Total liabilities 3,823,865 4,756,795  
Owners’ equity:      
Total liabilities and stockholders’ equity 8,470,724 8,727,777  
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Assets:      
Real estate inventory 749,942 414,687  
Other assets 146,770 118,990  
Total assets 896,712 533,677  
Liabilities and owners’ equity:      
Debt 238,263 167,842  
Other liabilities 31,824 16,245  
Total liabilities 270,087 184,087  
Owners’ equity:      
TMHC 282,900 171,406  
Others 343,725 178,184  
Total owners’ equity 626,625 349,590  
Total liabilities and stockholders’ equity $ 896,712 $ 533,677  
v3.22.4
INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]      
Revenues $ 8,224,917 $ 7,501,265 $ 6,129,320
Costs and expenses (6,132,551) (5,953,384) (5,085,101)
Income of unconsolidated entities (14,184) 11,130 11,176
Distributions of earnings from unconsolidated entities 5,270 10,740 11,564
Equity Method Investments      
Schedule of Equity Method Investments [Line Items]      
Revenues 168,695 130,640 161,888
Costs and expenses (163,488) (97,596) (129,764)
Income of unconsolidated entities 5,207 33,044 32,124
TMHC’s share in net (loss)/income from unconsolidated entities (14,184) 11,130 11,176
Distributions of earnings from unconsolidated entities $ 130,545 $ 42,655 $ 51,626
v3.22.4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Payables and Accruals [Abstract]        
Real estate development costs to complete $ 53,155 $ 49,833    
Compensation and employee benefits 112,294 166,272    
Self-insurance and warranty reserves 161,675 141,839 $ 118,116 $ 120,048
Interest payable 37,434 48,551    
Property and sales taxes payable 30,046 29,384    
Other accruals 95,649 89,330    
Total accrued expenses and other liabilities $ 490,253 $ 525,209    
v3.22.4
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Summary of changes in warranty reserves      
Reserves — beginning of period $ 141,839 $ 118,116 $ 120,048
Net additions to reserves due to WLH acquisition 0 0 9,984
Additions to reserves 76,643 77,827 62,722
Costs and claims incurred (76,994) (67,704) (82,137)
Change in estimates to pre-existing reserves 20,187 13,600 7,499
Reserves — end of period $ 161,675 $ 141,839 $ 118,116
v3.22.4
DEBT - Senior Notes and Other Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Sep. 08, 2022
Dec. 31, 2021
Jun. 05, 2019
Mar. 05, 2014
Debt Instrument [Line Items]          
Principal $ 2,494,628   $ 3,299,802    
Unamortized Debt Issuance (Costs) / Premium (10,767)   2,322    
Carrying Value 2,483,861   3,302,124    
Facility Amount 495,000   760,000    
Loans payable and other borrowings          
Debt Instrument [Line Items]          
Principal 361,486   404,386    
Unamortized Debt Issuance (Costs) / Premium 0   0    
Carrying Value 361,486   404,386    
Mortgage warehouse borrowings          
Debt Instrument [Line Items]          
Principal 306,072   413,887    
Unamortized Debt Issuance (Costs) / Premium 0   0    
Carrying Value 306,072   413,887    
Senior Notes          
Debt Instrument [Line Items]          
Principal 1,827,070   2,450,000    
Unamortized Debt Issuance (Costs) / Premium (10,767)   2,322    
Carrying Value $ 1,816,303   2,452,322    
Senior Notes | 5.875% Senior Notes due 2023          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 5.875%        
Principal $ 0   350,000    
Unamortized Debt Issuance (Costs) / Premium 0   (733)    
Carrying Value $ 0   349,267    
Senior Notes | 5.625% Senior Notes due 2024          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 5.625%       5.625%
Principal $ 350,000   350,000    
Unamortized Debt Issuance (Costs) / Premium (628)   (1,166)    
Carrying Value $ 349,372   348,834    
Senior Notes | 5.875% Senior Notes due 2027          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 5.875%     5.875%  
Principal $ 500,000   500,000    
Unamortized Debt Issuance (Costs) / Premium (3,459)   (4,243)    
Carrying Value $ 496,541   495,757    
Senior Notes | 6.625% Senior Notes Due 2027          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 6.625%        
Principal $ 27,070   300,000    
Unamortized Debt Issuance (Costs) / Premium 1,310   17,718    
Carrying Value $ 28,380   317,718    
Senior Notes | 5.75% Senior Notes due 2028          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 5.75%        
Principal $ 450,000   450,000    
Unamortized Debt Issuance (Costs) / Premium (3,183)   (3,814)    
Carrying Value $ 446,817   446,186    
Senior Notes | 5.125% Senior Notes due 2030          
Debt Instrument [Line Items]          
Stated interest rate of senior notes 5.125%        
Principal $ 500,000   500,000    
Unamortized Debt Issuance (Costs) / Premium (4,807)   (5,440)    
Carrying Value 495,193   494,560    
Line of Credit | $1 Billion Revolving Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Principal 0   0    
Unamortized Debt Issuance (Costs) / Premium 0   0    
Carrying Value 0   0    
Facility Amount 1,000,000 $ 800,000      
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Principal 0   31,529    
Unamortized Debt Issuance (Costs) / Premium 0   0    
Carrying Value 0   $ 31,529    
Facility Amount $ 100,000        
v3.22.4
DEBT - 2023 Senior Notes (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 31, 2022
Jul. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]          
(Gain)/loss on extinguishment of debt, net     $ (13,876) $ 0 $ 10,247
Senior Notes | 5.875% Senior Notes due 2023          
Debt Instrument [Line Items]          
Stated interest rate of senior notes     5.875%    
Redemption price percentage 100.00% 100.00%      
(Gain)/loss on extinguishment of debt, net $ 800        
v3.22.4
DEBT - 2024 Senior Notes (Details) - 5.625% Senior Notes due 2024 - Senior Notes - USD ($)
$ in Millions
 12 Months Ended
Mar. 05, 2014
Dec. 31, 2022
Debt Instrument [Line Items]    
Stated interest rate of senior notes 5.625% 5.625%
Senior Notes issued amount $ 350.0  
Redemption price percentage 101.00% 100.00%
v3.22.4
DEBT - 2027 Senior Notes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Nov. 03, 2022
Jun. 13, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Feb. 10, 2020
Jun. 05, 2019
Debt Instrument [Line Items]              
Aggregate principal amount outstanding     $ 1,816,303 $ 2,452,322      
Gain on extinguishment of debt     $ 13,876 $ 0 $ (10,247)    
Senior Notes | 5.875% Senior Notes due 2027              
Debt Instrument [Line Items]              
Stated interest rate of senior notes     5.875%       5.875%
Senior Notes issued amount             $ 500,000
Senior Notes | 6.625% Senior Notes Due 2027              
Debt Instrument [Line Items]              
Stated interest rate of senior notes     6.625%        
Senior Notes | 6.625% Senior Notes Due 2027 | Tranche One              
Debt Instrument [Line Items]              
Redemption price percentage     100.00%        
Debt instrument, repurchase amount   $ 264,100          
Senior Notes | 6.625% Senior Notes Due 2027 | Tranche Two              
Debt Instrument [Line Items]              
Redemption price percentage     97.00%        
Debt instrument, repurchase amount   900          
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Two              
Debt Instrument [Line Items]              
Redemption price percentage     103.313%        
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Three              
Debt Instrument [Line Items]              
Redemption price percentage     102.208%        
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Four              
Debt Instrument [Line Items]              
Redemption price percentage     101.104%        
Senior Notes | 6.625% Senior Notes Due 2027 | Debt Instrument, Redemption, Period Five              
Debt Instrument [Line Items]              
Redemption price percentage     100.00%        
Senior Notes | 6.625% Senior Notes Due 2027 issued by TM Communities              
Debt Instrument [Line Items]              
Stated interest rate of senior notes     6.625%        
Aggregate principal amount outstanding   265,000       $ 290,400  
Gain on extinguishment of debt   $ 13,600          
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH              
Debt Instrument [Line Items]              
Stated interest rate of senior notes           6.625%  
Aggregate principal amount outstanding           $ 9,600  
Debt instrument, repurchase amount $ 8,000            
Gain on extinguishment of debt $ 1,100            
Senior Notes | 6.625% Senior Notes Due 2027 Issued By WLH | Debt Instrument, Redemption, Period One              
Debt Instrument [Line Items]              
Redemption price percentage 91.25%            
v3.22.4
DEBT - 2028 Senior Notes (Details) - Senior Notes - 5.75% Notes Due 2028 - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Aug. 01, 2019
Debt Instrument [Line Items]    
Stated interest rate of senior notes 5.75% 5.75%
Senior Notes issued amount   $ 450.0
Redemption price percentage 100.00%  
v3.22.4
DEBT - 2030 Senior Notes and Redemption of the 2023 and 2025 Senior Notes (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 31, 2022
Jul. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]          
Gain (loss) on extinguishment of debt     $ 13,876 $ 0 $ (10,247)
5.125% Senior Notes Due 2030 | Senior Notes          
Debt Instrument [Line Items]          
Long term debt interest rate   5.125%      
Senior Notes issued amount   $ 500,000      
Redemption price percentage     100.00%    
6.00% Senior Notes Due 2023 | Senior Notes          
Debt Instrument [Line Items]          
Long term debt interest rate   6.00%      
Debt instrument, redemption price, make-whole premium percentage     0.11%    
Debt instrument, redemption price, make-whole premium, basis percentage     5000.00%    
5.875% Senior Notes Due 2025 | Senior Notes          
Debt Instrument [Line Items]          
Long term debt interest rate   5.875%      
Senior Notes Due 2023 And 2025 | Senior Notes          
Debt Instrument [Line Items]          
Gain (loss) on extinguishment of debt         $ (10,200)
6.00% Senior Notes due 2023 | Senior Notes          
Debt Instrument [Line Items]          
Debt instrument, repurchase amount   $ 266,900   83,100  
5.875% Senior Notes due 2025 | Senior Notes          
Debt Instrument [Line Items]          
Debt instrument, repurchase amount   $ 333,100   $ 103,800  
Redemption price percentage     102.938%    
5.875% Senior Notes due 2023 | Senior Notes          
Debt Instrument [Line Items]          
Long term debt interest rate     5.875%    
Redemption price percentage 100.00% 100.00%      
Gain (loss) on extinguishment of debt $ (800)        
v3.22.4
DEBT - Revolving Credit Facility (Details)
 12 Months Ended
Dec. 31, 2022
USD ($)
equityCureRight
fiscalQuarter
Sep. 08, 2022
USD ($)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]      
Maximum borrowing capacity on line of credit $ 495,000,000   $ 760,000,000
Revolving credit facility borrowings 0   31,529,000
Outstanding letters of credit 1,200,000,000   1,200,000,000
Revolving Credit Facility | $800 Million Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity on line of credit $ 1,000,000,000    
Outstanding letters of credit     58,700,000
Availability under revolving credit facility     741,300,000
Capitalization ratio maximum 60.00%    
Maximum consecutive days for financial covenant 5 days    
Revolving Credit Facility | $1 Billion Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity on line of credit $ 1,000,000,000 $ 800,000,000  
Revolving credit facility borrowings 0   0
Unamortized debt issuance costs included in prepaid expenses and other assets, net 3,800,000   1,100,000
Outstanding letters of credit 69,200,000    
Availability under revolving credit facility 930,800,000    
Minimum consolidated tangible net worth requirement 2,900,000,000    
Undrawn letters of credit covenant $ 40,000,000    
Maximum consecutive days for financial covenant 5 days    
Number of consecutive fiscal quarters for equity cure right | fiscalQuarter 4    
Maximum number of times company can use equity cure right | fiscalQuarter 5    
Revolving Credit Facility | $100 Million Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity on line of credit $ 100,000,000    
Unamortized debt issuance costs included in prepaid expenses and other assets, net 500,000   700,000
Availability under revolving credit facility $ 100,000,000   $ 68,500,000
Number of consecutive fiscal quarters for equity cure right | fiscalQuarter 4    
Maximum number of times company can use equity cure right | equityCureRight 5    
v3.22.4
Debt - Mortgage Warehouse Borrowings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Line of Credit Facility [Line Items]    
Amount Drawn $ 306,072 $ 413,887
Facility Amount 495,000 760,000
Secured Debt    
Line of Credit Facility [Line Items]    
Restricted cash and investments, current 2,100 3,500
Secured Debt | Warehouse A    
Line of Credit Facility [Line Items]    
Amount Drawn 29,066 12
Facility Amount $ 60,000 $ 10,000
Collateral Mortgage Loans Mortgage Loans
Secured Debt | Warehouse B    
Line of Credit Facility [Line Items]    
Amount Drawn $ 94,258 $ 86,409
Facility Amount $ 150,000 $ 150,000
Collateral Mortgage Loans Mortgage Loans
Secured Debt | Warehouse C    
Line of Credit Facility [Line Items]    
Amount Drawn $ 53,607 $ 116,601
Facility Amount $ 75,000 $ 250,000
Collateral Mortgage Loans and Restricted Cash Mortgage Loans and Restricted Cash
Secured Debt | Warehouse D    
Line of Credit Facility [Line Items]    
Amount Drawn $ 83,259 $ 105,065
Facility Amount $ 140,000 $ 150,000
Collateral Mortgage Loans Mortgage Loans
Secured Debt | Warehouse E    
Line of Credit Facility [Line Items]    
Amount Drawn $ 45,882 $ 105,800
Facility Amount $ 70,000 $ 200,000
Collateral Mortgage Loans Mortgage Loans
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse A    
Line of Credit Facility [Line Items]    
Interest rate 1.70%  
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse C    
Line of Credit Facility [Line Items]    
Interest rate 1.65%  
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse D    
Line of Credit Facility [Line Items]    
Interest rate 1.50%  
Secured Overnight Financing Rate (SOFR) | Secured Debt | Warehouse E    
Line of Credit Facility [Line Items]    
Interest rate 1.60%  
Bloomberg Short Term Bank Yield Index (BSBY) [Member] | Secured Debt | Warehouse B    
Line of Credit Facility [Line Items]    
Interest rate 1.65%  
LIBOR | Secured Debt | Warehouse A    
Line of Credit Facility [Line Items]    
Interest rate   1.75%
LIBOR | Secured Debt | Warehouse B    
Line of Credit Facility [Line Items]    
Interest rate   1.75%
LIBOR | Secured Debt | Warehouse C    
Line of Credit Facility [Line Items]    
Interest rate   2.05%
LIBOR | Secured Debt | Warehouse D    
Line of Credit Facility [Line Items]    
Interest rate   1.65%
LIBOR | Secured Debt | Warehouse E    
Line of Credit Facility [Line Items]    
Interest rate   1.50%
Mortgage loans    
Line of Credit Facility [Line Items]    
Mortgage loans held for sale $ 346,400 $ 467,500
v3.22.4
DEBT - Loans Payable and Other Borrowings (Details) - Loans Payable and Other Borrowings
Dec. 31, 2022
Dec. 31, 2021
Minimum    
Debt Instrument [Line Items]    
Long term debt interest rate 0.00% 0.00%
Maximum    
Debt Instrument [Line Items]    
Long term debt interest rate 8.00% 8.00%
v3.22.4
DEBT - Future Minimum Principal Payments on Total Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]    
2023 $ 503,367  
2024 415,320  
2025 52,571  
2026 28,579  
2027 537,105  
Thereafter 957,686  
Total debt $ 2,494,628 $ 3,299,802
v3.22.4
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Jun. 05, 2019
Mar. 05, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
IRLCs $ 1,090 $ 2,110    
Facility Amount $ 495,000 760,000    
Senior Notes | 5.875% Senior Notes due 2023        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 5.875%      
Senior Notes | 5.625% Senior Notes due 2024        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 5.625%     5.625%
Senior Notes | 5.875% Senior Notes due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 5.875%   5.875%  
Senior Notes | 6.625% Senior Notes Due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 6.625%      
Senior Notes | 5.75% Senior Notes due 2028        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 5.75%      
Senior Notes | 5.125% Senior Notes due 2030        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Long term debt interest rate 5.125%      
Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Facility Amount $ 100,000      
Carrying Value | Significant Other Observable Inputs (Level 2)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Mortgage loans held for sale 346,364 467,534    
Carrying Value | Significant Other Observable Inputs (Level 2) | Debt        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
MBSs 1,090 (449)    
Carrying Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 306,072 413,887    
Carrying Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 361,486 404,386    
Carrying Value | Significant Other Observable Inputs (Level 2) | $100 Million Revolving Credit Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 0 31,529    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 0 349,267    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 349,372 348,834    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 496,541 495,757    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 28,380 317,718    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 446,817 446,186    
Carrying Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 495,193 494,560    
Carrying Value | Significant Unobservable Inputs (Level 3) | IRLCs        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
IRLCs 2,386 2,110    
Carrying Value | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Equity Security Investment 460 6,400    
Fair Value | Significant Other Observable Inputs (Level 2)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Mortgage loans held for sale 346,364 467,534    
Fair Value | Significant Other Observable Inputs (Level 2) | Debt        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
MBSs 1,090 (449)    
Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage warehouse borrowings        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 306,072 413,887    
Fair Value | Significant Other Observable Inputs (Level 2) | Loans payable and other borrowings        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 361,486 404,386    
Fair Value | Significant Other Observable Inputs (Level 2) | $100 Million Revolving Credit Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 0 31,529    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2023        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 0 365,890    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.625% Senior Notes due 2024        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 347,375 372,750    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.875% Senior Notes due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 480,060 560,000    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 6.625% Senior Notes Due 2027        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 26,123 315,750    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.75% Senior Notes due 2028        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 421,358 502,875    
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.125% Senior Notes due 2030        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 434,330 550,000    
Fair Value | Significant Unobservable Inputs (Level 3) | IRLCs        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
IRLCs 2,386 2,110    
Fair Value | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Equity Security Investment $ 460 $ 6,400    
v3.22.4
FAIR VALUE DISCLOSURES - Summary of Assets Measure on a Nonrecurring Basis (Detail)
$ in Thousands
Dec. 31, 2021
USD ($)
Nonrecurring | Significant Unobservable Inputs (Level 3)  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Inventories $ 48,360
v3.22.4
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
Federal $ 203,119 $ 73,087 $ 11,621
State 48,134 23,493 11,733
Current tax provision 251,253 96,580 23,354
Deferred:      
Federal 66,667 75,044 45,594
State 18,508 9,117 5,642
Deferred tax provision 85,175 84,161 51,236
Total income tax provision $ 336,428 $ 180,741 $ 74,590
v3.22.4
INCOME TAXES - Schedule of Reconciliation of Provision (Benefit) for Income Taxes (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State income taxes (net of federal benefit) 3.90% 3.80% 4.60%
Non-controlling interest (0.10%) (0.60%) 0.00%
Uncertain tax positions 0.00% (0.20%) (0.10%)
Energy tax credits (1.30%) (1.40%) (2.90%)
Disallowed compensation expense 0.40% 0.20% 0.90%
Disallowed acquisition expenses 0.00% 0.00% 2.10%
Impact of CARES Act 0.00% (1.30%) (2.20%)
Other 0.30% (0.60%) (0.40%)
Effective Rate 24.20% 20.90% 23.00%
v3.22.4
INCOME TAXES - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax [Line Items]        
Effective rate 24.20% 20.90% 23.00%  
Deferred tax assets, valuation allowance $ 36,054,000 $ 36,054,000 $ 36,100,000  
Recognized potential penalties and interest expense on uncertain tax positions     500,000  
Unrecognized tax benefits 0 0 $ 5,762,000 $ 6,158,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense 0 $ 0    
Federal NOL Carryforwards        
Income Tax [Line Items]        
NOL carryforwards $ 206,100,000      
v3.22.4
INCOME TAXES - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:      
Real estate inventory $ 62,990 $ 68,426  
Accruals and reserves 48,391 56,244  
Other 5,425 11,739  
Net operating losses 62,150 76,119  
Capital loss carryforward 36,054 36,054  
Total deferred tax assets 215,010 248,582  
Deferred tax liabilities:      
Real estate inventory, intangibles, other (10,632) (11,162)  
Valuation allowance (36,054) (36,054) $ (36,100)
Deferred Income (100,668) (50,126)  
Total net deferred tax assets $ 67,656 $ 151,240  
v3.22.4
INCOME TAXES - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits      
Beginning of the period $ 0 $ 5,762,000 $ 6,158,000
Increases from current year acquisitions 0 0 0
Increases of prior year items 0 0 0
Settlement with tax authorities 0 0 0
Decreased for tax positions of prior years 0 (4,140,000) 0
Decreased due to statute of limitations 0 (1,622,000) (396,000)
End of the period $ 0 $ 0 $ 5,762,000
v3.22.4
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
Dec. 31, 2022
May 31, 2022
May 30, 2022
Dec. 31, 2021
Dec. 13, 2021
Equity [Abstract]          
Common stock, shares authorized (in shares) 400,000,000     400,000,000  
Common stock, par value (in dollars per share) $ 0.00001     $ 0.00001  
Preferred stock, shares authorized (in shares) 50,000,000        
Preferred stock, par value (in dollars per share) $ 0.00001        
Stock repurchase program, authorized amount   $ 500.0 $ 250.0   $ 250.0
v3.22.4
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
May 31, 2022
May 30, 2022
Dec. 13, 2021
Stock Repurchase Program, Increase (Decrease) [Roll Forward]            
Amount available for repurchase - beginning of period $ 230,413 $ 86,831        
Additional amount authorized for repurchase 500,000 500,000        
Unused amount as part of authorization renewal (75,000) (74,998)        
Amount repurchased at cost, 14,568,364 and 9,918,104 shares as of December 31, 2022 and December 31, 2021, respectively (376,275) (281,420) $ (103,332)      
Amount available for repurchase — end of period $ 279,138 $ 230,413 $ 86,831      
Repurchase of common stock (in shares) 14,568,364 9,918,104        
Stock repurchase program, authorized amount       $ 500,000 $ 250,000 $ 250,000
Previously Reported            
Stock Repurchase Program, Increase (Decrease) [Roll Forward]            
Amount available for repurchase - beginning of period $ 230,413          
Amount available for repurchase — end of period   $ 230,413        
v3.22.4
STOCK BASED COMPENSATION - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate unamortized outstanding stock based compensation   $ 27.1 $ 26.5 $ 23.8
Aggregate intrinsic value exercised based on market price (in dollars per share) $ 30.35      
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
Performance Shares | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
Performance Shares | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 4 years      
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expiration period 10 years      
2013 Omnibus Equity Award Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for future grant (in shares) 5,546,661      
v3.22.4
STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock compensation $ 26,901 $ 19,943 $ 27,023
Settlement of awards     5,100
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock compensation 4,437 4,087 7,085
Restricted Stock Units      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock compensation $ 22,464 $ 15,856 $ 19,938
v3.22.4
STOCK BASED COMPENSATION - Summary of Stock Option Plan (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock Options, Number of Options      
Outstanding, Beginning balance (in shares) 3,165,612 3,772,775 3,339,244
Granted (in shares) 519,799 712,910 1,139,583
Exercised (in shares) (323,625) (1,204,283) (551,845)
Cancelled (in shares) (88,528) (115,790) (154,207)
Outstanding, Ending balance (in shares) 3,273,258 3,165,612 3,772,775
Options exercisable (in shares) 1,775,881 1,407,618 1,934,328
Stock Options, Weighted Average Exercise Price      
Outstanding, Beginning balance (in dollars per share) $ 22.02 $ 19.73 $ 18.98
Granted (in dollars per share) 29.30 28.64 21.95
Exercised (in dollars per share) 20.69 19.37 17.91
Cancelled (in dollars per share) 24.64 21.53 20.93
Outstanding, Ending balance (in dollars per share) 23.35 22.02 19.73
Weighted Average Exercise Price, options exercisable (in dollars per share) $ 20.50 $ 19.12 $ 18.73
Unamortized value of unvested stock options (net of estimated forfeitures) (in dollars per share) $ 7,712 $ 7,515 $ 6,847
Weighted-average period (in years) that expense is expected to be recognized 2 years 6 months 2 years 6 months 2 years 6 months
Weighted-average remaining contractual (in years) life for options outstanding 6 years 7 months 6 days 7 years 6 years 7 months 6 days
Weighted-average remaining contractual life (in years) for options exercisable 5 years 2 months 12 days 5 years 3 months 18 days 4 years 10 months 24 days
v3.22.4
STOCK BASED COMPENSATION - Summary of Weighted-average Assumptions and Fair Value Used for Stock Options Grants (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]      
Expected dividend yield 0.00% 0.00% 0.00%
Expected volatility 30.46% 24.65% 24.19%
Risk-free interest rate 1.91% 0.75% 1.19%
Expected term (in years) 6 years 3 months 6 years 3 months 6 years 3 months
Weighted average fair value of options granted during the period (in dollars per share) $ 9.94 $ 7.45 $ 5.89
v3.22.4
STOCK BASED COMPENSATION - Summary of Aggregate Intrinsic Value of Options Outstanding and Exercisable (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]      
Aggregate intrinsic value of options outstanding $ 21,439 $ 38,190 $ 21,399
Aggregate intrinsic value of options exercisable $ 15,385 $ 18,897 $ 11,903
v3.22.4
STOCK BASED COMPENSATION - Summary of Activity of Performance Restricted Stock Units (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
PRSU Activity, Number of Awards      
Weighted-average period expense is expected to be recognized (in years) 2 years 6 months 2 years 6 months 2 years 6 months
Performance Restricted Stock Units      
PRSU Activity, Number of Awards      
Beginning balance (in shares) 926,193 930,633 998,639
Granted (in shares) 272,716 289,308 295,405
Vested (in shares) (380,632) (275,286) (319,732)
Forfeited (in shares) (15,898) (18,462) (43,679)
Ending balance (in shares) 802,379 926,193 930,633
PRSU expense recognized $ 12,642 $ 8,125 $ 5,692
Unamortized value of PRSUs $ 8,911 $ 8,419 $ 7,848
Weighted-average period expense is expected to be recognized (in years) 1 year 9 months 18 days 1 year 9 months 18 days 1 year 9 months 18 days
v3.22.4
STOCK BASED COMPENSATION - Summary of Activity of Restricted Stock Units (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
RSU Activity, Weighted Average Grant Date Fair Value      
Weighted-average period expense is expected to be recognized (in years) 2 years 6 months 2 years 6 months 2 years 6 months
Non-performance Restricted Stock Units (RSUs)      
RSU Activity, Number of Awards      
Beginning balance (in shares) 804,465 881,272 709,754
Granted (in shares) 359,993 370,762 1,228,451
Vested (in shares) (319,595) (390,358) (1,004,450)
Forfeited (in shares) (30,029) (57,211) (52,483)
Ending balance (in shares) 814,834 804,465 881,272
RSU Activity, Weighted Average Grant Date Fair Value      
Outstanding, Beginning balance (in dollars per share) $ 24.73 $ 21.33 $ 18.11
Granted (in dollars per share) 29.04 28.62 23.07
Vested (in dollars per share) 24.32 21.28 16.83
Forfeited (in dollars per share) 26.90 23.68 19.65
Outstanding, Ending balance (in dollars per share) $ 26.74 $ 24.73 $ 21.33
RSU expense recognized $ 9,822,000 $ 7,731,000 $ 14,246,000
Unamortized value of RSUs $ 10,486,000 $ 10,561,000 $ 9,116,000
Weighted-average period expense is expected to be recognized (in years) 1 year 8 months 12 days 1 year 8 months 12 days 1 year 9 months 18 days
Non-performance Restricted Stock Units (RSUs) | William Lyon Homes      
RSU Activity, Weighted Average Grant Date Fair Value      
RSU expense recognized $ 0   $ 7,100,000
v3.22.4
OPERATING AND REPORTING SEGMENTS - Narrative (Details)
 12 Months Ended
Dec. 31, 2022
segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.22.4
OPERATING AND REPORTING SEGMENTS - Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue $ 8,224,917 $ 7,501,265 $ 6,129,320
Gross margin 2,092,366 1,547,881 1,044,219
Selling, general and administrative expense (643,212) (668,342) (572,375)
Net (loss)/income from unconsolidated entities (14,184) 11,130 11,176
Interest and other expense, net (56,171) (27,561) (148,656)
Gain on extinguishment of debt 13,876 0 (10,247)
Income before income taxes 1,392,675 863,108 324,117
Corporate and Unallocated      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue 96,084 44,392 24,717
Gross margin 37,662 11,367 (866)
Selling, general and administrative expense (157,460) (162,092) (113,675)
Net (loss)/income from unconsolidated entities (955) (10) 0
Interest and other expense, net (15,201) (16,307) (97,040)
Gain on extinguishment of debt 13,876   (10,247)
Income before income taxes (122,078) (167,042) (221,828)
East | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue 2,739,759 2,423,948 1,919,247
Gross margin 718,223 522,721 319,361
Selling, general and administrative expense (180,177) (184,744) (160,222)
Net (loss)/income from unconsolidated entities 0 0 0
Interest and other expense, net (6,725) (923) (574)
Gain on extinguishment of debt 0   0
Income before income taxes 531,321 337,054 158,565
Central | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue 2,024,730 1,741,689 1,633,428
Gross margin 493,006 336,896 306,158
Selling, general and administrative expense (137,824) (133,991) (132,796)
Net (loss)/income from unconsolidated entities (55) 306 23
Interest and other expense, net (10,364) (3,103) (4,471)
Gain on extinguishment of debt 0   0
Income before income taxes 344,763 200,108 168,914
West | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue 3,228,853 3,126,621 2,396,101
Gross margin 791,944 614,130 352,648
Selling, general and administrative expense (167,751) (187,515) (165,682)
Net (loss)/income from unconsolidated entities (18,445) 2,190 683
Interest and other expense, net (23,881) (7,228) (37,600)
Gain on extinguishment of debt 0   0
Income before income taxes 581,867 421,577 150,049
Financial Services | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Total revenue 135,491 164,615 155,827
Gross margin 51,531 62,767 66,918
Selling, general and administrative expense 0 0 0
Net (loss)/income from unconsolidated entities 5,271 8,644 10,470
Interest and other expense, net 0 0 (8,971)
Gain on extinguishment of debt 0   0
Income before income taxes $ 56,802 $ 71,411 $ 68,417
v3.22.4
OPERATING AND REPORTING SEGMENTS - Assets from Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits $ 5,634,232 $ 5,729,056 $ 5,458,051
Investments in unconsolidated entities 282,900 171,406 127,955
Other assets 2,553,592 2,827,315 2,151,989
Total assets 8,470,724 8,727,777 7,737,995
Corporate and Unallocated      
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits 0 0 0
Investments in unconsolidated entities 46,608 0 10
Other assets 1,040,485 1,261,530 926,130
Total assets 1,087,093 1,261,530 926,140
East | Operating Segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits 1,820,765 1,781,948 1,712,852
Investments in unconsolidated entities 46,629 0 0
Other assets 216,816 196,126 170,382
Total assets 2,084,210 1,978,074 1,883,234
Central | Operating Segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits 1,359,805 1,282,024 1,176,604
Investments in unconsolidated entities 104,070 87,600 58,052
Other assets 251,727 221,906 192,981
Total assets 1,715,602 1,591,530 1,427,637
West | Operating Segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits 2,453,662 2,665,084 2,568,595
Investments in unconsolidated entities 80,310 79,531 65,395
Other assets 613,029 588,520 578,231
Total assets 3,147,001 3,333,135 3,212,221
Financial Services | Operating Segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Real estate inventory and land deposits 0 0 0
Investments in unconsolidated entities 5,283 4,275 4,498
Other assets 431,535 559,233 284,265
Total assets $ 436,818 $ 563,508 $ 288,763
v3.22.4
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Nov. 02, 2021
Loss Contingencies [Line Items]      
Outstanding letters of credit $ 1,200,000,000 $ 1,200,000,000  
Purchase Price 2,442,389,000 2,595,258,000  
Legal accruals 20,600,000 21,700,000  
Land Option Purchase Contracts And Land Banking Arrangements      
Loss Contingencies [Line Items]      
Purchase Price $ 1,500,000,000 $ 1,300,000,000  
Maximum      
Loss Contingencies [Line Items]      
Loss contingency     $ 35,000,000
Minimum      
Loss Contingencies [Line Items]      
Loss contingency     $ 0
v3.22.4
MORTGAGE HEDGING ACTIVITIES (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]    
Fair Value $ 3,476 $ 1,661
Total commitments to originate loans 419,600 173,700
IRLCs    
Derivative [Line Items]    
Fair Value 2,386 2,110
Notional amount 375,030 158,299
MBSs    
Derivative [Line Items]    
Fair Value 1,090 (449)
Notional amount $ 504,000 $ 407,000
v3.22.4
BUSINESS COMBINATIONS - Narrative (Details) - USD ($)
$ in Thousands, shares in Millions
 12 Months Ended
Jun. 29, 2020
Feb. 06, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]          
Payments to acquire business     $ 0 $ 0 $ 279,048
Issuance of common stock in connection with business acquisition     $ 0 $ 0 797,970
William Lyon Homes          
Business Acquisition [Line Items]          
Business combination, total purchase consideration   $ 1,100,000      
Payments to acquire business $ 157,800        
Common stock issued in merger consideration (in shares) 28.3        
Issuance of common stock in connection with business acquisition $ 773,900        
Business combination, liabilities incurred   160,800      
Business acquisition, conversion of equity instruments   $ 24,100      
Revenue of acquiree since acquisition date         1,600,000
Earnings of acquiree since acquisition date         $ 48,000
v3.22.4
BUSINESS COMBINATIONS - Summary of Fair Value of Assets Acquired and Liabilities Created (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Feb. 06, 2020
Assets acquired      
Goodwill $ 663,197 $ 663,197  
William Lyon Homes      
Assets acquired      
Real estate inventory     $ 2,069,323
Prepaid expenses and other assets     265,729
Deferred tax assets, net     148,193
Goodwill     513,768
Total assets     2,997,013
Less liabilities assumed      
Accrued expenses and other liabilities     457,365
Total Debt     1,306,578
Non-controlling interest     116,157
Net assets acquired     1,116,913
William Lyon Homes | Central      
Assets acquired      
Goodwill     48,200
William Lyon Homes | West      
Assets acquired      
Goodwill     $ 465,600
v3.22.4
BUSINESS COMBINATIONS - Pro Forma Results (Details) - William Lyon Homes
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
$ / shares
shares
Business Acquisition [Line Items]  
Net income available to TMHC $ 302,047
Weighted average shares - Basic (in shares) | shares 131,011
Weighted average shares - Diluted (in shares) | shares 132,370
Earnings per share - Basic (in dollars per share) | $ / shares $ 2.31
Earnings per share - Diluted (in dollars per share) | $ / shares $ 2.28
Joint Ventures  
Business Acquisition [Line Items]  
Total revenue $ 6,216,418
Net income before allocation to non-controlling interests 309,022
Net loss attributable to non-controlling interests — joint ventures $ 6,975