3 unchanged sentences
($000’s omitted)
+Added: September 30,
2023 December 31,
25 unchanged sentences
(000’s omitted, except per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
10 unchanged sentences
Selling, general, and administrative expenses ( 353,167 ) ( 350,112 ) ( 1,004,323 ) ( 1,030,391 )
−Removed: Equity income from unconsolidated entities 944 723 3,456 1,944
+Added: Equity income from unconsolidated entities, net 891 446 4,348 2,390
+Added: Gain on debt retirement 362 — 362 —
Other income (expense), net 16,729 ( 25,640 ) 32,134 ( 33,220 )
13 unchanged sentences
($000’s omitted)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
12 unchanged sentences
Earnings Total
−Removed: Shareholders' equity, March 31, 2023 223,522 $ 2,235 $ 3,345,005 $ — $ 5,916,569 $ 9,263,809
+Added: Shareholders' equity, June 30, 2023 219,892 $ 2,199 $ 3,354,318 $ — $ 6,348,508 $ 9,705,025
Share issuances 1 — — — — —
5 unchanged sentences
Net income — — — — 638,775 638,775
−Removed: Other comprehensive income — — — — —
−Removed: Shareholders' equity, June 30, 2023 219,892 $ 2,199 $ 3,354,318 $ — $ 6,348,508 $ 9,705,025
+Added: Shareholders' equity, September 30, 2023 216,135 $ 2,161 $ 3,361,059 $ — $ 6,649,281 $ 10,012,501
Shareholders' equity, December 31, 2022 225,840 $ 2,258 $ 3,330,138 $ — $ 5,581,702 $ 8,914,098
6 unchanged sentences
Net income — — — — 1,891,379 1,891,379
−Removed: Other comprehensive income — — — — — —
−Removed: Shareholders' equity, June 30, 2023 219,892 $ 2,199 $ 3,354,318 $ — $ 6,348,508 $ 9,705,025
+Added: Shareholders' equity, September 30, 2023 216,135 $ 2,161 $ 3,361,059 $ — $ 6,649,281 $ 10,012,501
Capital Accumulated
2 unchanged sentences
Earnings Total
−Removed: Shareholders' equity, March 31, 2022 239,622 $ 2,396 $ 3,309,912 $ ( 20 ) $ 4,100,976 $ 7,413,264
+Added: Shareholders' equity, June 30, 2022 232,570 $ 2,326 $ 3,319,150 $ — $ 4,423,740 $ 7,745,216
Share issuances 41 — — — — —
4 unchanged sentences
Net income — — — — 627,928 627,928
−Removed: Other comprehensive income — — — 20 — 20
−Removed: Shareholders' equity, June 30, 2022 232,570 $ 2,326 $ 3,319,150 $ — $ 4,423,740 $ 7,745,216
+Added: Shareholders' equity, September 30, 2022 228,232 $ 2,282 $ 3,325,790 $ — $ 4,835,931 $ 8,164,003
Shareholders' equity, December 31, 2021 249,326 $ 2,493 $ 3,290,791 $ ( 45 ) $ 4,196,276 $ 7,489,515
6 unchanged sentences
Other comprehensive income — — — 45 — 45
−Removed: Shareholders' equity, June 30, 2022 232,570 $ 2,326 $ 3,319,150 $ — $ 4,423,740 $ 7,745,216
+Added: Shareholders' equity, September 30, 2022 228,232 $ 2,282 $ 3,325,790 $ — $ 4,835,931 $ 8,164,003
See accompanying Notes to Condensed Consolidated Financial Statements.
2 unchanged sentences
($000’s omitted)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Cash flows from operating activities:
3 unchanged sentences
Land-related charges 16,978 32,475
+Added: Gain on debt retirement ( 362 ) —
Depreciation and amortization 59,765 51,934
8 unchanged sentences
Accounts payable, accrued and other liabilities ( 177,050 ) 119,189
−Removed: Net cash provided by operating activities 1,450,583 102,343
+Added: Net cash provided by (used in) operating activities 1,908,344 ( 303,925 )
Cash flows from investing activities:
47 unchanged sentences
As a result, all sales incentives provided to customers are classified as a reduction of home sale revenues.
−Removed: This reclassification had the effect of reducing both home sale revenues and home sale cost of revenues by the amount of such closing cost incentives, which totaled $ 46.4 million and $ 84.5 million for the three and six months ended June 30, 2022, respectively.
+Added: This reclassification had the effect of reducing both home sale revenues and home sale cost of revenues by the amount of such closing cost incentives, which totaled $ 48.8 million and $ 133.3 million for the three and nine months ended September 30, 2022, respectively.
Subsequent events
2 unchanged sentences
Other income (expense), net consists of the following ($000’s omitted):
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
10 unchanged sentences
Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash.
−Removed: Contract liabilities include customer deposits related to sold but undelivered homes, which totaled $ 797.2 million and $ 783.6 million at June 30, 2023 and December 31, 2022, respectively.
+Added: Contract liabilities include customer deposits related to sold but undelivered homes, which totaled $ 769.9 million and $ 783.6 million at September 30, 2023 and December 31, 2022, respectively.
Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit.
12 unchanged sentences
Our performance obligations for policy renewal commissions are considered satisfied upon issuance of the initial policy.
−Removed: The related contract assets for estimated future renewal commissions are included in other assets and totaled $ 66.3 million and $ 57.3 million at June 30, 2023 and December 31, 2022, respectively.
+Added: The related contract assets for estimated future renewal commissions are included in other assets and totaled $ 70.6 million and $ 57.3 million at September 30, 2023 and December 31, 2022, respectively.
Residential mortgage loans available-for-sale
Substantially all of the loans originated by us are sold in the secondary mortgage market within a short period of time after origination, generally within 30 days.
−Removed: At June 30, 2023 and December 31, 2022, residential mortgage loans available-for-sale had an aggregate fair value of $ 432.5 million and $ 677.2 million, respectively, and an aggregate outstanding principal balance of $ 435.5 million and $ 680.5 million, respectively.
−Removed: Net gains from the sale of mortgages were $ 48.6 million and $ 45.1 million for the three months ended June 30, 2023 and 2022, respectively, and $ 69.2 million and $ 97.5 million for the six months ended June 30, 2023 and 2022, respectively, and have been included in Financial Services revenues.
+Added: At September 30, 2023 and December 31, 2022, residential mortgage loans available-for-sale had an aggregate fair value of $ 414.4 million and $ 677.2 million, respectively, and an aggregate outstanding principal balance of $ 423.2 million and $ 680.5 million, respectively.
+Added: Net gains from the sale of mortgages were $ 33.7 million and $ 34.4 million for the three months ended September 30, 2023 and 2022, respectively, and $ 102.8 million and $ 131.9 million for the nine months ended September 30, 2023 and 2022, respectively, and have been included in Financial Services revenues.
Derivative instruments and hedging activities
We are party to IRLCs with customers resulting from our mortgage origination operations.
−Removed: At June 30, 2023 and December 31, 2022, we had aggregate IRLCs of $ 627.3 million and $ 653.2 million, respectively, which were originated at interest rates prevailing at the date of commitment.
+Added: At September 30, 2023 and December 31, 2022, we had aggregate IRLCs of $ 674.0 million and $ 653.2 million, respectively, which were originated at interest rates prevailing at the date of commitment.
Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements.
1 unchanged sentence
Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor.
−Removed: At June 30, 2023 and December 31, 2022, we had unexpired forward contracts of $ 908.0 million and $ 1.0 billion, respectively, and whole loan investor commitments of
+Added: At September 30, 2023 and December 31, 2022, we had unexpired forward contracts of $ 944.0 million and $ 1.0 billion, respectively, and whole loan investor
PULTEGROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: $ 95.7 million and $ 285.9 million, respectively.
+Added: commitments of $ 145.2 million and $ 285.9 million, respectively.
Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.
4 unchanged sentences
The fair values of derivative instruments and their locations in the Condensed Consolidated Balance Sheets are summarized below ($000’s omitted):
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
Other Assets Accrued and Other Liabilities Other Assets Accrued and Other Liabilities
12 unchanged sentences
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
15 unchanged sentences
We assess and monitor each counterparty’s ability to pay amounts owed by considering contractual terms and conditions, the counterparty’s financial condition, macroeconomic factors, and business strategy.
−Removed: At June 30, 2023 and December 31, 2022, we reported $ 191.5 million and $ 222.9 million, respectively, of assets in-scope under ASC 326, "Financial Instruments - Credit Losses".
+Added: At September 30, 2023 and December 31, 2022, we reported $ 207.2 million and $ 222.9 million, respectively, of assets in-scope under ASC 326, "Financial Instruments - Credit Losses".
These assets consist primarily of insurance receivables, contract assets related to insurance brokerage commissions, and vendor rebate receivables.
Counterparties associated with these assets are generally highly rated.
−Removed: Allowances on the aforementioned in-scope assets were not material as of June 30, 2023.
+Added: Allowances on the aforementioned in-scope assets were not material as of September 30, 2023.
New accounting pronouncements
2 unchanged sentences
The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2024.
−Removed: We will adopt these standards when LIBOR is discontinued and do not expect that the adoption will have a material impact on our consolidated financial statements or related disclosures.
+Added: The adoption of ASU 2020-04 did not have a material impact on the Company's condensed consolidated financial statements.
PULTEGROUP, INC.
1 unchanged sentence
Major components of inventory were as follows ($000’s omitted):
+Added: September 30,
2023 December 31,
9 unchanged sentences
Information related to interest capitalized into inventory is as follows ($000’s omitted):
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
13 unchanged sentences
If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity.
−Removed: No VIEs required consolidation at either June 30, 2023 or December 31, 2022 because we determined that we were not any VIE's primary beneficiary.
+Added: No VIEs required consolidation at either September 30, 2023 or December 31, 2022 because we determined that we were not any VIE's primary beneficiary.
Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements.
−Removed: The following provides a summary of our interests in land option agreements as of June 30, 2023 and December 31, 2022 ($000’s omitted):
+Added: The following provides a summary of our interests in land option agreements as of September 30, 2023 and December 31, 2022 ($000’s omitted):
PULTEGROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
Pre-acquisition
20 unchanged sentences
($000’s omitted)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
13 unchanged sentences
($000’s omitted)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
−Removed: Income (loss) before income taxes:
+Added: Income (loss) before income taxes (a) :
Northeast $ 52,265 $ 52,682 $ 150,227 $ 140,052
11 unchanged sentences
(b) Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the other segments.
−Removed: Other homebuilding also includes insurance reserve reversals of $ 64.9 million in the three months ended June 30, 2023.
+Added: Other homebuilding also includes insurance reserve reversals of $ 66.2 million in the nine months ended September 30, 2023.
Operating Data by Segment
($000’s omitted)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
14 unchanged sentences
($000's omitted)
−Removed: June 30, 2023
+Added: September 30, 2023
Construction Land Under
34 unchanged sentences
Our notes payable are summarized as follows ($000’s omitted):
+Added: September 30,
2023 December 31,
18 unchanged sentences
(b) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.
+Added: In the three months ended September 30, 2023, we completed open market repurchases of $ 22.0 million and $ 43.0 million of our unsecured senior notes scheduled to mature in 2026 and 2027, respectively.
Other notes payable
−Removed: Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 42.2 million and $ 55.2 million at June 30, 2023 and December 31, 2022, respectively.
+Added: Other notes payable include non-recourse and limited recourse notes with third parties that totaled $ 54.8 million and $ 55.2 million at September 30, 2023 and December 31, 2022, respectively.
These notes have maturities ranging up to four years , are secured by the applicable land positions to which they relate, and generally have no recourse to other assets.
The stated interest rates on these notes range up to 6 %.
−Removed: We recorded $ 17.7 million and $ 4.5 million of inventory financed by sellers in the six months ended June 30, 2023 and 2022, respectively.
+Added: We recorded $ 35.3 million and $ 19.9 million of inventory financed by sellers in the nine months ended September 30, 2023 and 2022, respectively.
Revolving credit facility
3 unchanged sentences
The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility).
−Removed: As of June 30, 2023, we were in compliance with all covenants.
+Added: As of September 30, 2023, we were in compliance with all covenants.
Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries.
−Removed: At June 30, 2023, we had no borrowings outstanding, $ 285.0 million of letters of credit issued, and $ 965.0 million of remaining capacity under the Revolving Credit Facility.
+Added: At September 30, 2023, we had no borrowings outstanding, $ 304.6 million of letters of credit issued, and $ 945.4 million of remaining capacity under the Revolving Credit Facility.
At December 31, 2022, we had no borrowings outstanding, $ 303.4 million of letters of credit issued, and $ 946.6 million of remaining capacity under the Revolving Credit Facility.
−Removed: Joint venture debt
−Removed: At June 30, 2023, aggregate outstanding debt of unconsolidated joint ventures was $ 81.0 million, of which $ 39.4 million was related to one joint venture in which we have a 50 % interest.
−Removed: In connection with this loan, we and our joint venture partner provided customary limited recourse guaranties in which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding.
PULTEGROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: Joint venture debt
+Added: At September 30, 2023, aggregate outstanding debt of unconsolidated joint ventures was $ 79.5 million, of which $ 40.3 million was related to one joint venture in which we have a 50 % interest.
+Added: In connection with this loan, we and our joint venture partner provided customary limited recourse guaranties in which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding.
Financial Services debt
−Removed: Pulte Mortgage maintains a master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") that matures on July 27, 2023.
−Removed: The maximum aggregate commitment was $ 500.0 million at June 30, 2023, which continues through maturity.
+Added: Pulte Mortgage entered into a master repurchase agreement (the "Repurchase Agreement") in August 2023 that matures on August 14, 2024.
+Added: The Repurchase Agreement replaced a substantially similar agreement that previously existed with different lenders.
+Added: The maximum aggregate commitment under the Repurchase Agreement was $ 560.0 million at September 30, 2023, and will increase to $ 850.0 million during the seasonally high borrowing period from December 27, 2023 to January 15, 2024.
+Added: Thereafter, the maximum aggregate commitment ranges from $ 600.0 million to $ 700.0 million.
+Added: The Repurchase Agreement also contains an accordion feature that could increase the commitment by $ 50.0 million above its active commitment level.
Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale.
The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity.
−Removed: At June 30, 2023, Pulte Mortgage had $ 315.6 million outstanding at a weighted average interest rate of 6.68 % and $ 184.4 million of remaining capacity under the Repurchase Agreement.
−Removed: At December 31, 2022, Pulte Mortgage had $ 586.7 million outstanding at a weighted average interest rate of 5.39 % and $ 213.3 million of remaining capacity under the Repurchase Agreement.
+Added: At September 30, 2023, Pulte Mortgage had $ 425.5 million outstanding at a weighted average interest rate of 7.01 % and $ 134.5 million of remaining capacity under the Repurchase Agreement.
+Added: At December 31, 2022, Pulte Mortgage had $ 586.7 million outstanding at a weighted average interest rate of 5.39 % and $ 213.3 million of remaining capacity under the prior agreement replaced by the Repurchase Agreement.
Pulte Mortgage was in compliance with all of its covenants and requirements as of such dates.
Shareholders’ equity
−Removed: In the six months ended June 30, 2023, we declared cash dividends totaling $ 71.8 million and repurchased 6.4 million shares under our repurchase authorization for $ 400.0 million.
−Removed: In the six months ended June 30, 2022, we declared cash dividends totaling $ 72.0 million and repurchased 17.4 million shares under our repurchase authorization for $ 794.2 million.
+Added: In the nine months ended September 30, 2023, we declared cash dividends totaling $ 106.8 million and repurchased 10.2 million shares under our repurchase authorization for $ 700.0 million.
+Added: In the nine months ended September 30, 2022, we declared cash dividends totaling $ 106.7 million and repurchased 21.8 million shares under our repurchase authorization for $ 974.7 million.
On April 24, 2023, the Board of Directors increased our share repurchase authorization by $ 1.0 billion.
−Removed: At June 30, 2023, we had remaining authorization to repurchase $ 982.9 million of common shares.
+Added: At September 30, 2023, we had remaining authorization to repurchase $ 682.9 million of common shares.
Under our share-based compensation plans, we accept shares as payment under certain conditions related to the vesting of shares, generally related to the payment of minimum tax obligations.
−Removed: In the six months ended June 30, 2023 and 2022, participants surrendered shares valued at $ 10.4 million and $ 13.6 million, respectively, under these plans.
+Added: In the nine months ended September 30, 2023 and 2022, participants surrendered shares valued at $ 10.4 million and $ 14.3 million, respectively, under these plans.
Such share transactions are excluded from the above noted share repurchase authorization.
−Removed: Our effective tax rate was 24.4 % and 24.3 % for the three and six months ended June 30, 2023, respectively, compared with 24.5 % and 24.4 %, respectively, for the same periods in 2022.
+Added: Our effective tax rate was 24.6 % and 24.4 % for the three and nine months ended September 30, 2023, respectively, compared with 22.6 % and 23.8 %, respectively, for the same periods in 2022.
Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense.
−Removed: At June 30, 2023 and December 31, 2022, we had net deferred tax liabilities of $ 226.5 million and $ 133.1 million, respectively.
+Added: The 2023 effective income tax rate for each of these periods was higher than the rate for the same period in 2022 due to the change in qualification standards for federal energy efficient home tax credits.
+Added: On August 16, 2022, the Inflation Reduction Act of 2022 (the "Inflation Reduction Act") was signed into law.
+Added: Notably, the Inflation Reduction Act retroactively extended the federal energy efficient home tax credits to January 1, 2022 using the same standards as prior years.
+Added: For 2023 through 2032, the credit is based on EnergyStar or Zero Energy Ready standards.
+Added: At September 30, 2023 and December 31, 2022, we had net deferred tax liabilities of $ 265.5 million and $ 133.1 million, respectively.
The accounting for deferred taxes is based upon estimates of future results.
1 unchanged sentence
Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time.
+Added: PULTEGROUP, INC.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes.
−Removed: We had $ 58.7 million and $ 23.6 million of gross unrecognized tax benefits at June 30, 2023 and December 31, 2022, respectively.
−Removed: Additionally, we had accrued interest and penalties of $ 5.1 million and $ 4.1 million at June 30, 2023 and December 31, 2022, respectively.
+Added: We had $ 58.7 million and $ 23.6 million of gross unrecognized tax benefits at September 30, 2023 and December 31, 2022, respectively.
+Added: Additionally, we had accrued interest and penalties of $ 5.7 million and $ 4.1 million at September 30, 2023 and December 31, 2022, respectively.
Fair value disclosures
4 unchanged sentences
Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.
−Removed: PULTEGROUP, INC.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted):
1 unchanged sentence
Hierarchy Fair Value
+Added: September 30,
2023 December 31,
18 unchanged sentences
If quoted market prices are not available, fair values are based on quoted market prices of similar issues.
−Removed: The carrying value of senior notes was $ 2.0 billion at both June 30, 2023 and December 31, 2022 .
+Added: The carrying value of senior notes was $ 1.9 billion at September 30, 2023 and $ 2.0 billion at December 31, 2022.
+Added: PULTEGROUP, INC.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Commitments and contingencies
2 unchanged sentences
The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure.
−Removed: We had outstanding letters of credit and surety bonds totaling $ 285.0 million and $ 2.2 billion, respectively, at June 30, 2023 and $ 303.4 million and $ 2.2 billion, respectively, at December 31, 2022.
+Added: We had outstanding letters of credit and surety bonds totaling $ 304.6 million and $ 2.3 billion, respectively, at September 30, 2023 and $ 303.4 million and $ 2.2 billion, respectively, at December 31, 2022.
In the event any such letter of credit or surety bond is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond.
3 unchanged sentences
We do not believe that a material amount, if any, of the letters of credit or surety bonds will be drawn.
−Removed: PULTEGROUP, INC.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Litigation and regulatory matters
15 unchanged sentences
Changes to warranty liabilities were as follows ($000’s omitted):
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
4 unchanged sentences
Warranty liabilities, end of period $ 112,311 $ 110,332 $ 112,311 $ 110,332
+Added: PULTEGROUP, INC.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Self-insured risks
10 unchanged sentences
General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year.
−Removed: PULTEGROUP, INC.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Our insurance coverage requires a per occurrence retention up to an overall aggregate retention level.
6 unchanged sentences
IBNR represents losses related to claims incurred but not yet reported plus development on reported claims.
−Removed: Our recorded reserves for all such claims totaled $ 605.2 million and $ 635.9 million at June 30, 2023 and December 31, 2022, respectively.
+Added: Our recorded reserves for all such claims totaled $ 623.0 million and $ 635.9 million at September 30, 2023 and December 31, 2022, respectively.
The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses.
−Removed: Liabilities related to IBNR and related claim expenses represented approximately 77 % and 74 % of the total general liability reserves at June 30, 2023 and December 31, 2022, respectively.
+Added: Liabilities related to IBNR and related claim expenses represented approximately 74 % of the total general liability reserves at both September 30, 2023 and December 31, 2022.
The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data.
6 unchanged sentences
Adjustments to reserves are recorded in the period in which the change in estimate occurs.
−Removed: We reduced general liability reserves by $ 64.9 million during the three months ended June 30, 2023 as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections.
+Added: We reduced general liability reserves by $ 66.2 million during the nine months ended September 30, 2023 as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections.
The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims.
3 unchanged sentences
Changes in these liabilities were as follows ($000's omitted):
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: PULTEGROUP, INC.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2023 2022 2023 2022
7 unchanged sentences
Estimates of anticipated recoveries of our costs under various insurance policies or from subcontractors or other third parties are recorded when recovery is considered probable.
−Removed: Such receivables are recorded in other assets and totaled $ 39.7 million and $ 43.7 million at June 30, 2023 and December 31, 2022, respectively.
−Removed: Those receivables relate to costs incurred to perform
−Removed: PULTEGROUP, INC.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: corrective repairs, settle claims with customers, and other costs related to the continued progression of construction defect claims that we believe are insured.
+Added: Such receivables are recorded in other assets and totaled $ 39.7 million and $ 43.7 million at September 30, 2023 and December 31, 2022, respectively.
+Added: Those receivables relate to costs incurred to perform corrective repairs, settle claims with customers, and other costs related to the continued progression of construction defect claims that we believe are insured.
Given the complexity inherent with resolving construction defect claims in the homebuilding industry described above, there generally exists a significant lag between our payment of claims and our reimbursements from applicable insurance carriers or third parties.
9 unchanged sentences
Leases with an initial term of 12 months or less are not recorded on the balance sheet.
−Removed: ROU assets and lease liabilities were $ 73.0 million and $ 88.8 million at June 30, 2023, respectively, and $ 73.5 million and $ 90.1 million at December 31, 2022, respectively.
−Removed: In the three and six months ended June 30, 2023, we recorded an additional $ 4.4 million and $ 8.3 million, respectively, of lease liabilities under operating leases, and $ 3.7 million and $ 4.2 million in the comparable prior year periods.
−Removed: Payments on lease liabilities in the three and six months ended June 30, 2023 totaled $ 6.0 million and $ 11.3 million, respectively, and $ 5.6 million and $ 11.1 million in the comparable prior year periods.
+Added: ROU assets and lease liabilities were $ 69.9 million and $ 84.8 million at September 30, 2023, respectively, and $ 73.5 million and $ 90.1 million at December 31, 2022, respectively.
+Added: In the three and nine months ended September 30, 2023, we recorded an additional $ 1.3 million and $ 9.6 million, respectively, of lease liabilities under operating leases, and $ 3.3 million and $ 7.5 million in the comparable prior year periods.
+Added: Payments on lease liabilities in the three and nine months ended September 30, 2023 totaled $ 6.1 million and $ 17.4 million, respectively, and $ 5.0 million and $ 16.1 million in the comparable prior year periods.
Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of less than one year.
−Removed: In the three and six months ended June 30, 2023 our total lease expense was $ 14.3 million and $ 28.5 million, respectively, and $ 13.4 million and $ 26.2 million in the comparable prior year periods.
−Removed: Our total lease expense is inclusive of variable lease costs of $ 3.2 million and $ 6.2 million in the three and six months ended June 30, 2023, respectively, and $ 2.2 million and $ 4.4 million in the comparable prior year periods, as well as short-term lease costs of $ 4.5 million and $ 8.7 million in the three and six months ended June 30, 2023 respectively, and $ 5.5 million and $ 10.5 million in the comparable prior year periods.
+Added: In the three and nine months ended September 30, 2023 our total lease expense was $ 13.5 million and $ 42.0 million, respectively, and $ 14.3 million and $ 40.5 million in the comparable prior year periods.
+Added: Our total lease expense is inclusive of variable lease costs of $ 2.7 million and $ 8.9 million in the three and nine months ended September 30, 2023, respectively, and $ 3.3 million and $ 7.7 million in the comparable prior year periods, as well as short-term lease costs of $ 4.0 million and $ 12.8 million in the three and nine months ended September 30, 2023, respectively, and $ 5.2 million and $ 15.8 million in the comparable prior year periods.
Sublease income was de minimis.
−Removed: The future minimum lease payments required under our leases as of June 30, 2023 were as follows ($000's omitted):
+Added: PULTEGROUP, INC.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: The future minimum lease payments required under our leases as of September 30, 2023 were as follows ($000's omitted):
Years Ending December 31,
2 unchanged sentences
Present value of lease liabilities (d)
−Removed: (a) Remaining payments are for the six months ending December 31, 2023.
−Removed: (b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 5.8 million of legally binding minimum lease payments for leases signed but not yet commenced at June 30, 2023.
+Added: (a) Remaining payments are for the three months ending December 31, 2023.
+Added: (b) Lease payments include options to extend lease terms that are reasonably certain of being exercised and exclude $ 6.2 million of legally binding minimum lease payments for leases signed but not yet commenced at September 30, 2023.
(c) Our leases do not provide a readily determinable implicit rate.
As a result, we must estimate our discount rate for such leases to determine the present value of lease payments at the lease commencement date.
−Removed: (d) The weighted average remaining lease term and weighted average discount rate used in calculating our lease liabilities were 4.9 years and 4.0 %, respectively, at June 30, 2023.
+Added: (d) The weighted average remaining lease term and weighted average discount rate used in calculating our lease liabilities were 4.8 years and 3.8 %, respectively, at September 30, 2023.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.