10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-35873  

TAYLOR MORRISON HOME CORPORATION

(Exact name of registrant as specified in its Charter)

Delaware	83-2026677
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4900 N. Scottsdale Road, Suite 2000		85251
Scottsdale,	Arizona
(Address of principal executive offices)		(Zip Code)

(480) 840-8100

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value	TMHC	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	¨	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ¨ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding as of April 27, 2022
Common stock, $0.00001 par value	119,638,931

TAYLOR MORRISON HOME CORPORATION

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements of Taylor Morrison Home Corporation (Unaudited)	2
Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	2
Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021	3
Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021	4
Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2022 and 2021	5
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021	6
Notes to the Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	34
Item 4. Controls and Procedures	35
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	36
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	37
SIGNATURES	38

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PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	569,249	$	832,821
Restricted cash	1,578		3,519
Total cash, cash equivalents, and restricted cash	570,827		836,340
Owned inventory	5,699,709		5,444,207
Consolidated real estate not owned	43,418		55,314
Total real estate inventory	5,743,127		5,499,521
Land deposits	260,861		229,535
Mortgage loans held for sale	229,651		467,534
Derivative assets	5,501		2,110
Lease right of use assets	85,582		85,863
Prepaid expenses and other assets, net	271,180		314,986
Other receivables, net	155,660		150,864
Investments in unconsolidated entities	173,231		171,406
Deferred tax assets, net	151,240		151,240
Property and equipment, net	207,918		155,181
Goodwill	663,197		663,197
Total assets	$	8,517,975	$	8,727,777
Liabilities
Accounts payable	$	225,312	$	253,348
Accrued expenses and other liabilities	416,881		525,209
Lease liabilities	94,405		96,172
Income taxes payable	15,350		—
Customer deposits	540,916		485,705
Estimated development liabilities	38,522		38,923
Senior notes, net	2,452,311		2,452,322
Loans payable and other borrowings	395,400		404,386
Revolving credit facility borrowings	—		31,529
Mortgage warehouse borrowings	200,662		413,887
Liabilities attributable to consolidated real estate not owned	43,418		55,314
Total liabilities	$	4,423,177	$	4,756,795
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ Equity
Total stockholders’ equity	4,094,798		3,970,982
Total liabilities and stockholders’ equity	$	8,517,975	$	8,727,777

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

2

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts, unaudited)

	Three Months Ended March 31,
	2022		2021
Home closings revenue, net	$	1,644,409	$	1,363,429
Land closings revenue	15,610		4,889
Financial services revenue	35,199		44,065
Amenity and other revenue	7,906		5,429
Total revenue	1,703,124		1,417,812
Cost of home closings	1,264,974		1,110,242
Cost of land closings	14,364		4,027
Financial services expenses	24,214		23,999
Amenity and other expenses	6,444		5,103
Total cost of revenue	1,309,996		1,143,371
Gross margin	393,128		274,441
Sales, commissions and other marketing costs	89,123		85,952
General and administrative expenses	68,142		61,553
Equity in income of unconsolidated entities	(1,831)		(5,661)
Interest expense/(income), net	4,252		(119)
Other expense, net	542		975
Income before income taxes	232,900		131,741
Income tax provision	54,439		29,298
Net income before allocation to non-controlling interests	178,461		102,443
Net income attributable to non-controlling interests	(1,758)		(4,422)
Net income available to Taylor Morrison Home Corporation	$	176,703	$	98,021
Earnings per common share
Basic	$	1.46	$	0.76
Diluted	$	1.44	$	0.75
Weighted average number of shares of common stock:
Basic	121,186		128,883
Diluted	122,657		131,246

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

3

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, unaudited)

	Three Months Ended March 31,
	2022		2021
Comprehensive Income before non-controlling interests, net of tax	$	178,461	$	102,443
Comprehensive income attributable to non-controlling interests	(1,758)		(4,422)
Comprehensive income available to Taylor Morrison Home Corporation	$	176,703	$	98,021

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

4

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(In thousands, except share data, unaudited)

For the three months ended March 31, 2022
	Common Stock			Additional Paid-in Capital		Treasury Stock			Stockholders' Equity
	Shares	Amount		Amount		Shares	Amount		Retained Earnings		Accumulated  Other Comprehensive Loss		Non-controlling Interest		Total Stockholders’ Equity
Balance – December 31, 2021	121,833,649	$	1	$	2,997,211	36,828,559	$	(760,863)	$	1,688,815	$	689	$	45,129	$	3,970,982
Net income	—			—		—	—		176,703		—		1,758		178,461
Exercise of stock options	101,076			2,356		—	—		—		—		—		2,356
Issuance of restricted stock units, net of shares withheld for tax(1)	378,852			(3,621)		—	—		—		—		—		(3,621)
Repurchase of common stock	(1,948,187)			—		1,948,187	(58,029)		—		—		—		(58,029)
Stock compensation expense	—			6,863		—	—		—		—		—		6,863
Distributions to non-controlling interests of consolidated joint ventures	—			—		—	—		—		—		(1,752)		(1,752)
Changes in non-controlling interests of consolidated joint ventures	—			—		—	—		—		—		(462)		(462)
Balance – March 31, 2022	120,365,390	$	1	$	3,002,809	38,776,746	$	(818,892)	$	1,865,518	$	689	$	44,673	$	4,094,798

(1) Dollar amount represents the value of shares withheld for taxes.

For the three months ended March 31, 2021
	Common Stock			Additional Paid-in Capital		Treasury Stock			Stockholders' Equity
	Shares	Amount		Amount		Shares	Amount		Retained Earnings		Accumulated  Other Comprehensive Income		Non-controlling Interest		Total Stockholders’ Equity
Balance – December 31, 2020	129,476,914	$	1	$	2,926,773	25,884,756	$	(446,856)	$	1,025,789	$	(1,166)	$	89,209	$	3,593,750
Net income	—	—		—		—	—		98,021		—		4,422		102,443
Exercise of stock options	349,675	—		6,320		—	—		—		—		—		6,320
Issuance of restricted stock units, net of shares withheld for tax(1)	357,213	—		(4,664)		—	—		—		—		—		(4,664)
Repurchase of common stock	(1,447,309)	—		—		1,447,309	(38,418)		—		—		—		(38,418)
Stock compensation expense	—	—		5,682		—	—		—		—		—		5,682
Distributions to non-controlling interests of consolidated joint ventures	—	—		—		—	—		—		—		(7,961)		(7,961)
Changes in non-controlling interests of consolidated joint ventures	—	—		—		—	—		—		—		(1,588)		(1,588)
Balance – March 31, 2021	128,736,493	$	1	$	2,934,111	27,332,065	$	(485,274)	$	1,123,810	$	(1,166)	$	84,082	$	3,655,564

(1) Dollar amount represents the value of shares withheld for taxes.

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

5

TAYLOR MORRISON HOME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

	Three Months Ended March 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income before allocation to non-controlling interests	$	178,461	$	102,443
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Equity in income of unconsolidated entities	(1,831)		(5,661)
Stock compensation expense	6,863		5,682
Distributions of earnings from unconsolidated entities	2,058		3,162
Depreciation and amortization	8,841		9,636
Operating lease expense	6,913		3,969
Debt issuance costs amortization	191		118
Changes in operating assets and liabilities:
Real estate inventory and land deposits	(286,828)		(356,519)
Mortgages held for sale, prepaid expenses and other assets	171,618		(85,270)
Customer deposits	55,211		110,581
Accounts payable, accrued expenses and other liabilities	(138,247)		34,208
Income taxes payable	54,211		33,343
Net cash provided by/(used in) operating activities	57,461		(144,308)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(5,389)		(7,824)
Distributions of capital from unconsolidated entities	—		7,451
Investments of capital into unconsolidated entities	(2,052)		(13,102)
Net cash used in investing activities	(7,441)		(13,475)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in loans payable and other borrowings	18,287		36,868
Repayments on loans payable and other borrowings	(26,688)		(27,580)
Borrowings on revolving credit facilities	32,548		—
Repayments on revolving credit facilities	(64,077)		—
Borrowings on mortgage warehouse facilities	562,024		697,398
Repayments on mortgage warehouse facilities	(775,249)		(643,854)
Proceeds from stock option exercises	2,356		6,320
Payment of principle portion of finance lease	(1,332)		(1,325)
Repurchase of common stock, net	(58,029)		(38,418)
Payment of taxes related to net share settlement of equity awards	(3,621)		(5,288)
Cash and distributions to non-controlling interests of consolidated joint ventures, net	(1,752)		(6,971)
Net cash (used in)/provided by financing activities	(315,533)		17,150
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	(265,513)	$	(140,633)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period	836,340		534,109
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period	$	570,827	$	393,476
SUPPLEMENTAL CASH FLOW INFORMATION:
Income tax (payments)/refund, net	$	(228)	$	4,592
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Change in loans payable issued to sellers in connection with land purchase contracts	$	59,830	$	82,378
Change in inventory not owned	$	(11,896)	$	(64,916)
Net non-cash distributions from non-controlling interests	$	—	$	(990)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

6

TAYLOR MORRISON HOME CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BUSINESS

Description 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 developer of lifestyle communities. 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 (formerly referred to as active adult) 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 an exclusive partnership with Christopher Todd Communities, a growing Phoenix-based developer of innovative, luxury rental communities to operate a “Build-to-Rent” homebuilding business. We serve as a land acquirer, developer, and homebuilder while Christopher Todd Communities provides community design and property management consultation. 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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

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” on the Condensed Consolidated Statements of Operations.

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 unaudited Condensed Consolidated Financial Statements and these accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, 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.

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. We did not perform an impairment test during the first quarter of 2022 as indicators of impairment were not present.

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 sales 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

7

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. 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.

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 sales when the related inventory is charged to cost of sales.

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 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 three months ended March 31, 2022 and 2021, no impairment charges were recorded.

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. 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 subjective 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 March 31, 2022 and December 31, 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. We record fair value adjustments for land held for sale 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 may 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.

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 risks associated with land

8

ownership and development. In accordance with ASC Topic 810, Consolidation, we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because 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 will consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Consolidated Balance Sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 Equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in Investments in unconsolidated entities on the Consolidated Balance Sheets.

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 no impairment charges related to the investments in unconsolidated entities for the three months ended March 31, 2022 and 2021.

Revenue Recognition — We recognize revenue 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 the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we recognize revenue when (or as) we satisfy the performance obligation. For our home sales transactions, we 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 closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.       

•Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, 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 the 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 which include multi-use properties as part of our Urban Form 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

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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 are realized and unrealized gains and losses from hedging instruments.

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 may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. However, we do not believe the effect of adopting will have a material impact.

3. EARNINGS PER SHARE

Basic earnings per common 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 (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator:
Net income available to TMHC	$	176,703	$	98,021
Denominator:
Weighted average shares – basic	121,186		128,883
Restricted stock units	801		975
Stock Options	670		844
Warrants	—		544
Weighted average shares – diluted	122,657		131,246
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	1.46	$	0.76
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	1.44	$	0.75

The above calculations of weighted average shares exclude 1,045,290 and 811,658 anti-dilutive stock options and unvested restricted stock units (“RSUs”) for the three months ended March 31, 2022 and 2021, respectively.

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4. REAL ESTATE INVENTORY AND LAND DEPOSITS

Inventory consists of the following (in thousands):

	As of
	March 31, 2022		December 31, 2021
Real estate developed and under development	$	3,895,167	$	3,895,681
Real estate held for development or held for sale (1)	72,022		70,305
Operating communities (2)	1,554,551		1,309,551
Capitalized interest	177,969		168,670
Total owned inventory	5,699,709		5,444,207
Consolidated real estate not owned	43,418		55,314
Total real estate inventory	$	5,743,127	$	5,499,521

(1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets.

(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 (dollars in thousands):

	As of
	March 31, 2022			December 31, 2021
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Homebuilding owned lots
Raw	3,933	$	179,376	4,017	$	178,952
Partially developed	23,237	1,572,778		24,636	1,568,967
Finished	19,999	2,124,655		19,360	2,119,128
Total homebuilding owned lots	47,169	3,876,809		48,013	3,867,047
Other assets	5,298	90,380		5,298	98,939
Total owned lots	52,467	$	3,967,189	53,311	$	3,965,986

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the creditors generally only have recourse against us in the form of retaining any 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
	March 31, 2022					December 31, 2021
	Controlled Lots	Purchase Price		Land Deposit (1)		Controlled Lots	Purchase Price		Land Deposit (1)
Homebuilding controlled lots
Land option purchase contracts	7,831	$	457,796	$	52,213	8,360	$	507,161	$	57,554
Land banking arrangements	7,117	1,000,881		136,404		5,731	749,813		117,721
Other controlled lots	14,766	1,303,421		49,792		14,671	1,338,284		38,505
Total controlled lots	29,714	$	2,762,098	$	238,409	28,762	$	2,595,258	$	213,780

(1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at March 31, 2022 and December 31, 2021 we had refundable deposits of $22.5 million and $15.7 million respectively.

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Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Interest capitalized - beginning of period	$	168,670	$	163,780
Interest incurred and capitalized	39,729		37,719
Interest amortized to cost of home closings	(30,430)		(27,325)
Interest capitalized - end of period	$	177,969	$	174,174

5. 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 and/or mortgage lending activities. The real estate development joint ventures primary activity is 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.

Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands):

	As of
	March 31, 2022		December 31, 2021
Assets:
Real estate inventory	$	418,004	$	414,687
Other assets	134,890		118,990
Total assets	$	552,894	$	533,677
Liabilities and owners’ equity:
Debt	$	176,477	$	167,842
Other liabilities	23,231		16,245
Total liabilities	199,708		184,087
Owners’ equity:
TMHC	173,231		171,406
Others	179,955		178,184
Total owners’ equity	353,186		349,590
Total liabilities and owners’ equity	$	552,894	$	533,677

	Three Months Ended March 31,
	2022		2021
Revenues	$	30,401	$	49,880
Costs and expenses	(25,694)		(34,157)
Income of unconsolidated entities	$	4,707	$	15,723
TMHC’s share in income of unconsolidated entities	$	1,831	$	5,661
Distributions to TMHC from unconsolidated entities	$	2,058	$	10,613

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

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and rewards of the joint ventures. Therefore, we are the primary beneficiary of these joint venture VIEs, and these entities are consolidated.

As of March 31, 2022, the assets of the consolidated joint ventures totaled $260.0 million, of which $23.1 million was cash and cash equivalents and $79.0 million was owned inventory. 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 and $147.6 million was owned inventory. The liabilities of the consolidated joint ventures totaled $141.2 million and $165.1 million as of March 31, 2022 and December 31, 2021, respectively, and were primarily comprised of notes payable, accounts payable and accrued liabilities.

6. ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following (in thousands):

	As of March 31, 2022		As of December 31, 2021
Real estate development costs to complete	$	46,044	$	49,833
Compensation and employee benefits	78,849		166,272
Self-insurance and warranty reserves	140,970		141,839
Interest payable	39,241		48,551
Property and sales taxes payable	27,115		29,384
Other accruals	84,662		89,330
Total accrued expenses and other liabilities	$	416,881	$	525,209

Self-Insurance and Warranty Reserves – We accrue for the expected costs associated with our limited warranty, deductibles and self-insured amounts under our various insurance policies within Beneva Indemnity Company (“Beneva”), a wholly owned subsidiary. A summary of the changes in our reserves are as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Reserve - beginning of period	$	141,839	$	118,116
Other additions to reserves	8,884		12,391
Cost of claims incurred	(12,473)		(15,865)
Changes in estimates to pre-existing reserves	2,720		1,764
Reserve - end of period	$	140,970	$	116,406

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7. DEBT

Total debt consists of the following (in thousands):

	As of
	March 31, 2022						December 31, 2021
	Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value		Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value
5.875% Senior Notes due 2023	$	350,000	$	(591)	$	349,409	$	350,000	$	(733)	$	349,267
5.625% Senior Notes due 2024	350,000		(1,032)		348,968		350,000		(1,166)		348,834
5.875% Senior Notes due 2027	500,000		(4,047)		495,953		500,000		(4,243)		495,757
6.625% Senior Notes due 2027	300,000		16,919		316,919		300,000		17,718		317,718
5.75% Senior Notes due 2028	450,000		(3,656)		446,344		450,000		(3,814)		446,186
5.125% Senior Notes due 2030	500,000		(5,282)		494,718		500,000		(5,440)		494,560
Senior Notes subtotal	$	2,450,000	$	2,311	$	2,452,311	$	2,450,000	$	2,322	$	2,452,322
Loans payable and other borrowings	395,400		—		395,400		404,386		—		404,386
$800 Million Revolving Credit Facility	—		—		—		—		—		—
$100 Million Revolving Credit Facility	—		—		—		31,529		—		31,529
Mortgage warehouse borrowings	200,662		—		200,662		413,887		—		413,887
Total debt	$	3,046,062	$	2,311	$	3,048,373	$	3,299,802	$	2,322	$	3,302,124

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 March 31, 2022, we were in compliance with all of the covenants under the Senior Notes.

5.875% Senior Notes due 2023

On April 16, 2015, Taylor Morrison Communities, Inc (“TM Communities”) issued $350.0 million aggregate principal amount of 5.875% Senior Notes due 2023 (the “2023 5.875% Senior Notes”), which mature on April 15, 2023. The 2023 5.875% 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 2023 5.875% 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 of control.

Prior to January 15, 2023, the 2023 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through January 15, 2023 (plus accrued and unpaid interest). Beginning January 15, 2023, the 2023 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest).

5.625% Senior Notes due 2024

On March 5, 2014, 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 the Guarantors. The change of control provisions in the indenture governing the 2024 Senior Notes are similar to those contained in the indentures governing our other Senior Notes.

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

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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, whereby TM Communities offered to exchange any and all outstanding senior notes issued by 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 “Exchange offer”). The 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 6.625% TM Communities Notes are similar to those contained in the indentures governing our other Senior Notes. 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.

The 2027 6.625% Senior Notes mature on July 15, 2027. Prior to July 15, 2022, the 2027 6.625% Senior Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest, if any, to, but not including, the redemption date. On or after July 15, 2022, the 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 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest).

In addition, at any time prior to July 15, 2022, we may, at our option, on one or more occasions, redeem the 2027 6.625% Senior Notes (including any additional notes that may be issued in the future under the 2027 6.625% Senior Notes Indenture) in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2027 6.625% Senior Notes at a redemption price (expressed as a percentage of principal amount) of 106.625%, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings.

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 5.875% 2025 Senior Notes

In July 2020, we partially redeemed $266.9 million of our 6.00% Senior Notes due 2023 (the “2023 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 Senior Notes and 2025 Senior Notes, respectively, using cash on hand. For the 2023 Senior Notes, the redemption price was equal to 100.0% 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 Senior Notes and 2025 Senior Notes, we

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recorded a total net loss on extinguishment of debt of approximately $10.2 million in 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).

$800 Million Revolving Credit Facility

On March 11, 2022, we amended our $800 Million Revolving Credit Facility, which extends the maturity date from February 6, 2024 to March 11, 2027 and includes reduced pricing upon meeting lower capitalization ratios. The facility remains guaranteed by the Guarantors.

We had no outstanding borrowings under our $800 Million Revolving Credit Facility as of March 31, 2022 or December 31, 2021.

As of March 31, 2022 and December 31, 2021, we had $3.2 million and $1.1 million, respectively, of unamortized debt issuance costs relating to our $800 Million Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, we had $52.9 million and $58.7 million, respectively, of utilized letters of credit, resulting in $747.1 million and $741.3 million, respectively, of availability under the $800 Million Revolving Credit Facility.

The $800 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 $2.5 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $800 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 $800 Million Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the $800 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 $800 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 $800 Million Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, 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 $800 Million 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 March 31, 2022, we were in compliance with all of the covenants under the $800 Million 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 (the $100 Million Revolving Credit Agreement together with the $800 Million Revolving Credit Agreement, the “Credit Facilities”). This facility is specific to our Build-to-Rent operations. We had no borrowings outstanding under our $100 Million Revolving Credit Facility as of March 31, 2022, and had $31.5 million in outstanding borrowings as of December 31, 2021.

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As of March 31, 2022 and December 31, 2021, we had $0.6 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 Condensed Consolidated Balance Sheets. As of March 31, 2022 we had no utilized letters of credit, resulting in $100.0 million of availability under the $100 Million Revolving Credit Facility. As of December 31, 2021, we had $68.5 million 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 $2.5 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 $800 Million Revolving Credit Facility, described above. As of March 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 warehouse borrowings (in thousands):

	As of March 31, 2022
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	2,553	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	21,618		75,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	69,898		125,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	30,556		100,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	76,037		100,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	200,662	$	410,000
	As of December 31, 2021
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	12	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	86,409		150,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	116,601		250,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	105,065		150,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	105,800		200,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	413,887	$	760,000

(1) Subject to certain interest rate floors.

(2) The mortgage warehouse borrowings outstanding as of March 31, 2022 and December 31, 2021 were collateralized by $229.7 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage loans held for sale, and approximately $1.6 million and $3.5 million, respectively, of cash which is restricted cash on our Condensed Consolidated Balance Sheet.

Loans Payable and Other Borrowings

Loans payable and other borrowings as of March 31, 2022 and December 31, 2021 consist of project-level debt due to various land sellers and financial institutions for specific projects. Project-level debt is generally secured by the land that was acquired

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and the principal payments generally coincide with corresponding project lot closings or a principal reduction schedule. Loans payable bear interest at rates that ranged from 0% to 8% at each of March 31, 2022 and December 31, 2021.

8. 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 interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, 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, the borrowings under our Revolving Credit Facility 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 March 31, 2022, when compared to December 31, 2021.

The carrying value and fair value of our financial instruments are as follows:

		March 31, 2022				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 sale	2	$	229,651	$	229,651	$	467,534	$	467,534
IRLCs	3	420		420		2,110		2,110
MBSs	2	5,080		5,080		(449)		(449)
Mortgage warehouse borrowings	2	200,662		200,662		413,887		413,887
Loans payable and other borrowings	2	395,400		395,400		404,386		404,386
5.875% Senior Notes due 2023 (1)	2	349,409		354,830		349,267		365,890
5.625% Senior Notes due 2024 (1)	2	348,968		360,150		348,834		372,750
5.875% Senior Notes due 2027 (1)	2	495,953		520,000		495,757		560,000
6.625% Senior Notes due 2027 (1)	2	316,919		308,250		317,718		315,750
5.75% Senior Notes due 2028(1)	2	446,344		463,500		446,186		502,875
5.125% Senior Notes due 2030(1)	2	494,718		490,000		494,560		550,000
$800 Million Revolving Credit Facility	2	—		—		—		—
$100 Million Revolving Credit Facility	2	—		—		31,529		31,529
Equity Security Investment	1	5,030		5,030		6,400		6,400

(1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs and premiums. Debt issuance costs are not factored into the fair value calculation for the Senior Notes.

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9. INCOME TAXES

The effective tax rate for the three months ended March 31, 2022 was 23.4%, compared to 22.2% for the same period in 2021. For both the three months ended March 31, 2022 and March 31, 2021 the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to stock-based compensation and special deductions and credits relating to prior homebuilding activities.

At both March 31, 2022 and December 31, 2021, there were no unrecognized tax benefits.

10. 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

The following table summarizes share repurchase activity for the periods presented:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Amount available for repurchase — beginning of period(1)	$	230,413	$	86,831
Amount repurchased	(58,029)		(38,418)
Amount available for repurchase — end of period	$	172,384	$	48,413

(1) Represents the amount available for repurchase as of January 1 for the years presented, adjusted for previously expired share repurchase authorizations.

The Company repurchased 1,948,187 shares under the share repurchase program during the three months ended March 31, 2022 and 1,447,309 during the three months ended March 31, 2021.

11. STOCK BASED COMPENSATION

Equity-Based Compensation

The following table provides the outstanding balance of time-based and performance based RSUs and stock options as of March 31, 2022:

	Restricted Stock Units  (time and performance)			Stock Options
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Exercise Price Per Share
Balance at March 31, 2022	1,641,411	$	27.28	3,582,800	$	23.10

The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended March 31,
	2022		2021
Restricted stock units (1)	$	5,780	$	4,748
Stock options	1,083		934
Total stock compensation	$	6,863	$	5,682

(1) Includes compensation expense related to time-based RSUs and performance-based RSUs.

At March 31, 2022 and December 31, 2021, the aggregate unrecognized value of all outstanding stock-based compensation awards was approximately $43.2 million and $26.5 million, respectively.

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12. REPORTING SEGMENTS

We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those 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:

East	Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
Central	Austin, Dallas, Denver, and Houston
West	Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial Services	Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services

Segment information is as follows (in thousands):

	Three Months Ended March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Total revenue	$	525,121	$	370,735	$	770,210	$	35,199	$	1,859	$	1,703,124
Gross margin	125,691		74,008		181,531		10,985		913		393,128
Selling, general and administrative expenses	(40,326)		(29,440)		(43,519)		—		(43,980)		(157,265)
Equity in (loss)/income of unconsolidated entities	—		85		(312)		2,058		—		1,831
Interest and other expense, net(2)	(432)		(1,860)		(1,966)		—		(536)		(4,794)
Income/(loss) before income taxes	$	84,933	$	42,793	$	135,734	$	13,043	$	(43,603)	$	232,900

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

	Three Months Ended March 31, 2021
	East		Central		West		Financial Services		Corporate and Unallocated (1)		Total
Total revenue	$	453,362	$	322,612	$	597,730	$	44,065	$	43	$	1,417,812
Gross margin	85,067		65,178		104,438		20,066		(308)		274,441
Selling, general and administrative expenses	(38,598)		(28,558)		(41,554)		—		(38,795)		(147,505)
Equity in (loss)/income of unconsolidated entities	—		(64)		1,992		3,743		(10)		5,661
Interest and other income/(expense), net (2)	42		(373)		(108)		—		(417)		(856)
Income/(loss) before income taxes	$	46,511	$	36,183	$	64,768	$	23,809	$	(39,530)	$	131,741

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

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	As of March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,905,120	$	1,389,070	$	2,709,798	$	—	$	—	$	6,003,988
Investments in unconsolidated entities	—		87,737		81,219		4,275		—		173,231
Other assets	153,946		198,151		550,998		334,568		1,103,093		2,340,756
Total assets	$	2,059,066	$	1,674,958	$	3,342,015	$	338,843	$	1,103,093	$	8,517,975

(1) Includes corporate cash and the assets from our Build-To-Rent and Urban Form operations.

	As of December 31, 2021
	East		Central		West		Financial 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 assets	196,126		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 corporate cash and the assets from our Build-To-Rent and Urban Form operations.

13. 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 as of March 31, 2022 and December 31, 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 letters of credit or surety bonds as of March 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 and/or letters of credit provided to obtain the options. At March 31, 2022 and December 31, 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 our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, title and insurance agency operations, safety and other employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. At March 31, 2022 and December 31, 2021, our legal accruals were $23.1 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 matters. 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

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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 March 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.

Leases — Our leases primarily consist of office space, construction trailers, model home leasebacks, a ground lease, equipment, and storage units. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases. Lease obligations were $94.4 million and $96.2 million as of March 31, 2022 and December 31, 2021, respectively. We recorded lease expense of approximately $6.9 million and $4.0 million for the three months ended March 31, 2022, and 2021, respectively, within general and administrative expenses on our Condensed Consolidated Statement of Operations.

14. MORTGAGE HEDGING ACTIVITIES

We enter into IRLCs to originate 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. These 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 Condensed Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets or liabilities, 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.

The following summarizes derivative instrument assets (liabilities) as of the periods presented:

	As of
	March 31, 2022				December 31, 2021
(Dollars in thousands)	Fair Value		Notional Amount (1)		Fair Value		Notional Amount (1)
IRLCs	$	420	$	386,707	$	2,110	$	158,299
MBSs	5,080		404,000		(449)		407,000
Total	$	5,500			$	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 $417.7 million and $173.7 million as of March 31, 2022 and December 31, 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 includes 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, placing contractual limits on the amount of unsecured credit extended to any single counterparty, and 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.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For purposes of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the terms “the Company,” “we,” “us,” or “our” refer to Taylor Morrison Home Corporation (“TMHC”) and its subsidiaries. The Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our condensed consolidated financial statements included elsewhere in this quarterly report.

Forward-Looking Statements

This quarterly report includes certain forward-looking statements within the meaning of the federal securities laws regarding, among other things, our or management’s intentions, plans, beliefs, expectations or predictions of future events, which are considered forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business and operations strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “can,” “could,” “might,” “project” or similar expressions. These statements are based upon assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read this quarterly report, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in the Annual Report and in our subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”). Although we believe that these forward-looking statements are based upon reasonable assumptions and currently available information, you should be aware that many factors, including those described under the heading “Risk Factors” in the Annual Report and in our subsequent filings with the SEC, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.

Our forward-looking statements made herein are made only as of the date of this quarterly report. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, except as required by applicable law.

Business Overview

Our principal business is residential homebuilding and the development of lifestyle communities with operations geographically focused in Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. We serve a wide array of consumer groups from coast to coast, including entry-level, move-up, and 55-plus active lifestyle (formerly referred to as active adult) buyers, building single and multi-family attached and detached homes. Our homebuilding company operates under our Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade brand names. We have an exclusive partnership with Christopher Todd Communities, a growing Phoenix-based developer of innovative, luxury rental communities to operate a “Build-to-Rent” homebuilding business. We serve as a land acquirer, developer, and homebuilder while Christopher Todd Communities provides community design and property management consultation. We also operate Urban Form Development, LLC (“Urban Form”), which primarily develops and constructs multi-use properties consisting of commercial space, retail, and multi-family units. We 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 as of March 31, 2022 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, as follows:

East	Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
Central	Austin, Dallas, Denver, and Houston
West	Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial Services	Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services

Community development includes the acquisition and development of land, which may include obtaining significant planning and entitlement approvals and completing construction of off-site and on-site utilities and infrastructure. We generally operate

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as community developers, but in some communities we operate solely as merchant builders, in which case we acquire fully entitled and developed lots. We remain disciplined in our underwriting to acquire land where we see opportunities to drive profitable growth over the full cycle, with the land acquisitions we are approving today largely expected to impact deliveries in the next 24 to 48 months.

In our homebuilding operations, we either directly, or indirectly through our subcontractors, purchase the significant materials necessary to construct a home such as drywall, cement, steel, lumber, insulation and the other building materials. While these materials are generally widely available from a variety of sources, from time to time we experience material shortages on a localized basis which can substantially increase the price for such materials and our construction process can be slowed.

As of March 31, 2022, we employed approximately 3,062 full-time equivalent persons. Of these, approximately 2,568 were engaged in corporate and homebuilding operations, and the remaining approximately 494 were engaged in financial services.

First Quarter 2022 Highlights (all comparisons are of the current quarter to the prior year quarter, unless otherwise indicated):

•Home closings revenue increased 21 percent to $1.6 billion.

•Home closings gross margin improved 450 basis points to 23.1 percent.

•SG&A as a percentage of home closings revenue improved 120 basis points to 9.6 percent.

•Backlog decreased seven percent to 9,400 with an average sales price of $659,000, up 24 percent.

•Homebuilding lot supply increased five percent to approximately 77,000 total lots owned and controlled.

•Controlled lots as a percentage of total lot supply increased approximately 700 basis points to 39 percent.

•Repurchased 1.9 million shares outstanding for $58 million.

•Return on equity improved 860 basis points to 19.1 percent.

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Results of Operations

The following table sets forth our results of operations for the periods presented:

	Three Months Ended March 31,
(Dollars in thousands)	2022			2021
Statements of Operations Data:
Home closings revenue, net	$	1,644,409		$	1,363,429
Land closings revenue	15,610			4,889
Financial services revenue	35,199			44,065
Amenity and other revenue	7,906			5,429
Total revenue	1,703,124			1,417,812
Cost of home closings	1,264,974			1,110,242
Cost of land closings	14,364			4,027
Financial services expenses	24,214			23,999
Amenity and other expenses	6,444			5,103
Gross margin	393,128			274,441
Sales, commissions and other marketing costs	89,123			85,952
General and administrative expenses	68,142			61,553
Equity in income of unconsolidated entities	(1,831)			(5,661)
Interest expense/(income), net	4,252			(119)
Other expense, net	542			975
Income before income taxes	232,900			131,741
Income tax provision	54,439			29,298
Net income before allocation to non-controlling interests	178,461			102,443
Net income attributable to non-controlling interests — joint ventures	(1,758)			(4,422)
Net income available to Taylor Morrison Home Corporation	$	176,703		$	98,021
Home closings gross margin	23.1		%	18.6		%
Sales, commissions and other marketing costs as a percentage of home closings revenue, net	5.4		%	6.3		%
General and administrative expenses as a percentage of home closings revenue, net	4.2		%	4.5		%

Non-GAAP Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we have provided information in this filing relating to: (i) EBITDA and adjusted EBITDA and (ii) net homebuilding debt to capitalization ratio.

EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude interest expense/(income), net, amortization of capitalized interest, income taxes, depreciation and amortization (EBITDA) and non-cash compensation expense, if any. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, less unamortized debt issuance premiums, net, and mortgage warehouse borrowings, net of unrestricted cash and cash equivalents, by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity).

Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our regions, and to set targets for performance-based compensation. We also use the ratio of net homebuilding debt to total capitalization as an indicator of overall leverage and to evaluate our performance against other companies in the homebuilding industry. In prior periods, we have disclosed additional non-GAAP financial measures beyond those listed above, including (i) adjusted net income and adjusted earnings per shares, (ii) adjusted income before income taxes and related margin and (iii) adjusted home closings gross margin. However, in the periods presented herein, no transactions exist to warrant presenting such measures. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors.

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We believe that EBITDA and adjusted EBITDA are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the ratio of net homebuilding debt to total capitalization to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason.

These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours.

EBITDA and Adjusted EBITDA Reconciliation
	Three Months Ended March 31,
(Dollars in thousands)	2022			2021
Net income before allocation to non-controlling interests	$	178,461		$	102,443
Interest expense/(income), net	4,252			(119)
Amortization of capitalized interest	30,430			27,325
Income tax provision	54,439			29,298
Depreciation and amortization	1,930			1,910
EBITDA	$	269,512		$	160,857
Non-cash compensation expense	6,863			5,682
Adjusted EBITDA	$	276,375		$	166,539
Total revenues	$	1,703,124		$	1,417,812
Net income before allocation to non-controlling interests as a percentage of total revenues	10.5		%	7.2		%
EBITDA as a percentage of total revenues	15.8		%	11.3		%
Adjusted EBITDA as a percentage of total revenues	16.2		%	11.7		%

Net Homebuilding Debt to Capitalization Ratio Reconciliation
(Dollars in thousands)	As of March 31, 2022			As of December 31, 2021
Total debt	$	3,048,373		$	3,302,124
Less unamortized debt issuance premiums, net	2,311			2,322
Less mortgage warehouse borrowings	200,662			413,887
Total homebuilding debt	$	2,845,400		$	2,885,915
Less cash and cash equivalents	569,249			832,821
Net homebuilding debt	$	2,276,151		$	2,053,094
Total equity	4,094,798			3,970,982
Total capitalization	$	6,370,949		$	6,024,076
Net homebuilding debt to capitalization ratio	35.7		%	34.1		%

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Three months ended March 31, 2022 Compared to Three months ended March 31, 2021

The results for the three months ended March 31, 2022 and 2021, were impacted by various macro economic conditions. Since the second half of 2020, demand for housing has increased nationwide, and has remained strong despite recent increases in interest rates. Through the first quarter of 2022, we continue to experience market-wide supply chain disruptions, trade labor shortages, and high costs related to materials due to inflationary impacts. The strong demand for housing has allowed us to utilize pricing strategies that partially mitigated increases in cost. The average sales price for net sales orders, backlog, and homes closed during the three months ended March 31, 2022 all increased compared to the three months ended March 31, 2021. However, the supply chain delays and labor shortages have extended our build cycle times. To combat this, several markets have shifted to a strategy of selling more spec homes, which allows the homes to be further along the cycle time before releasing them to be sold. Operational information related to each period is presented below:

Ending Active Selling Communities

	As of March 31, 2022	As of December 31, 2021	Change
East	121	123	(1.6)	%
Central	106	102	3.9
West	97	105	(7.6)
Total	324	330	(1.8)	%

Net Sales Orders

	Three Months Ended March 31,
	Net Sales Orders (1)				Sales Value (1)						Average Selling Price
(Dollars in thousands)	2022	2021	Change		2022		2021		Change		2022		2021		Change
East	1,027	1,777	(42.2)	%	$	606,210	$	878,584	(31.0)	%	$	590	$	494	19.4	%
Central	887	1,072	(17.3)		583,279		583,482		—		658		544		21.0
West	1,140	1,643	(30.6)		895,730		1,010,767		(11.4)		786		615		27.8
Total	3,054	4,492	(32.0)	%	$	2,085,219	$	2,472,833	(15.7)	%	$	683	$	550	24.2	%

(1) Net sales orders and sales value represent the number and dollar value, respectively, of new sales contracts executed with customers, net of cancellations.

Net sales orders and sales value decreased by 32.0% and 15.7%, respectively, for the three months ended March 31, 2022, compared to the same period in the prior year. The decreases were primarily the result of decreases in active selling communities, increasing interest rates, and inflationary impacts, partially offset by an increase of average selling prices of 24.2%. Average selling prices continued to increase as a result of market appreciation. In addition, in certain markets, we continue to strategically meter sales releases to better manage supply chain and labor constraints as well as shifting to a strategy of spec home sales allowing homes to get further along in the build cycle before releasing them to be sold.

Sales Order Cancellations

	Cancellation Rate(1)
	Three Months Ended March 31,
	2022		2021
East	4.8	%	5.9	%
Central	6.6	%	6.1	%
West	7.5	%	6.2	%
Total Company	6.4	%	6.0	%

(1) Cancellation rate represents the number of canceled sales orders divided by gross sales orders.

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The total company cancellation rate increased to 6.4% from 6.0% for the three months ended March 31, 2022, compared to the same period in the prior year. This increase in cancellations is due to extended build cycle times and recent increases in interest rates.

Sales Order Backlog

	As of March 31,
	Sold Homes in Backlog (1)				Sales Value						Average Selling Price
(Dollars in thousands)	2022	2021	Change		2022		2021		Change		2022		2021		Change
East	3,309	3,560	(7.1)	%	$	2,002,530	$	1,753,135	14.2	%	$	605	$	492	23.0	%
Central	3,010	2,779	8.3		1,962,538		1,463,453		34.1		652		527		23.7
West	3,081	3,735	(17.5)		2,232,878		2,120,260		5.3		725		568		27.6
Total	9,400	10,074	(6.7)	%	$	6,197,946	$	5,336,848	16.1	%	$	659	$	530	24.3	%

(1) Sales order backlog represents homes under contract for which revenue has not yet been recognized at the end of the period (including homes sold but not yet started). Some of the contracts in our sales order backlog are subject to contingencies including mortgage loan approval and buyers selling their existing homes, which can result in cancellations.

Total sold homes in backlog decreased by 6.7% and total sales value increased by 16.1% at March 31, 2022, compared to March 31, 2021. The decreases were primarily the result of decreases in active selling communities, increasing interest rates, and inflationary impacts, partially offset by an increase in average selling prices of 24.3%. In addition, we continue to strategically meter sales releases to better manage supply chain and labor constraints as well as shifting to a strategy of spec home sales allowing homes to get further along in the build cycle before releasing them to be sold. The increase in total sales value in backlog was driven by a 24.3% increase in average sales price.

Home Closings Revenue

	Three Months Ended March 31,
	Homes Closed				Home Closings Revenue, Net						Average Selling Price
(Dollars in thousands)	2022	2021	Change		2022		2021		Change		2022		2021		Change
East	937	1,052	(10.9)	%	$	505,998	$	445,885	13.5	%	$	540	$	424	27.4	%
Central	664	691	(3.9)		368,575		320,177		15.1		555		463		19.9
West	1,167	1,078	8.3		769,836		597,367		28.9		660		554		19.1
Total	2,768	2,821	(1.9)	%	$	1,644,409	$	1,363,429	20.6	%	$	594	$	483	23.0	%

The number of homes closed remained relatively flat while home closings revenue, net increased by 20.6% for the three months ended March 31, 2022, compared to the same period in the prior year. While overall homes closed remained flat, the homes that closed had an average sales price 23.0% higher year over year, driving the increase in total home building revenue.

Land Closings Revenue

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021		Change
East	$	13,440	$	2,454	$	10,986
Central	2,160		2,435		(275)
West	10		—		10
Total	$	15,610	$	4,889	$	10,721

We generally purchase land and lots with the intent to build and sell homes. However, 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 and lot sales occur at various intervals and varying degrees of profitability. Therefore, the revenue and gross margin from land closings will fluctuate from period to

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period, depending upon market opportunities and our land management strategy. The land closings revenue in the East for the three months ended March 31, 2022 was due to the sale of certain commercial assets as well as the sale of residential lots in our Florida market.

Amenity and Other Revenue

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021		Change
East	$	5,683	$	5,023	$	660
Central	—		—		—
West	364		363		1
Corporate	1,859		43		1,816
Total	$	7,906	$	5,429	$	2,477

Several of our communities operate amenities such as golf courses, club houses, and fitness centers. We provide club members access to the amenity facilities and other services in exchange for club dues and fees. Our Corporate region also includes the activity relating to our Urban Form operations which primarily develops and constructs multi-use properties consisting of commercial space, retail, and multi-family units.

Home Closings Gross Margin

	Three Months Ended March 31,
	East						Central						West						Consolidated
(Dollars in thousands)	2022			2021			2022			2021			2022			2021			2022			2021
Home closings revenue, net	$	505,998		$	445,885		$	368,575		$	320,177		$	769,836		$	597,367		$	1,644,409		$	1,363,429
Cost of home closings	381,946			361,977			295,057			255,399			587,971			492,866			1,264,974			1,110,242
Home closings gross margin	$	124,052		$	83,908		$	73,518		$	64,778		$	181,865		$	104,501		$	379,435		$	253,187
Home closings gross margin %	24.5		%	18.8		%	19.9		%	20.2		%	23.6		%	17.5		%	23.1		%	18.6		%

Home closings gross margin increased 450 basis points to 23.1% for the three months ended March 31, 2022, compared to 18.6% in the prior year. The increase is a reflection of operational enhancements, acquisition synergies and pricing power in excess of inflationary cost pressure. Low inventory levels, low interest rates and market appreciation have led to the ability to increase average selling prices to offset high material costs. We also continue to strategically meter sales and shift to an emphasis on spec homes to maximize profits and create margin protection as build cycle times extend due to supply chain issues and trade labor shortages.

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Financial Services

Our Financial Services segment provides mortgage lending through our subsidiary, TMHF, title services through our subsidiary, Inspired Title, and homeowner's insurance policies through our insurance agency, TMIS. The following is a summary for the periods presented of financial services income before income taxes as well as supplemental data:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021		Change
Financial services revenue	$	27,715	$	37,514	(26.1)	%
Title services revenue	5,999		5,054		18.7
Financial services revenue - other	1,485		1,497		(0.8)
Total financial services revenue	35,199		44,065		(20.1)	%
Financial services equity in income of unconsolidated entities	2,058		3,669		(43.9)
Total revenue	37,257		47,734		(21.9)
Financial services expenses	24,214		23,999		0.9
Financial services income before income taxes	$	13,043	$	23,735	(45.0)	%
Total originations:
Number of Loans	1,582		2,128		(25.7)	%
Principal	$	688,665	$	809,746	(15.0)	%

	Three Months Ended March 31,
	2022		2021
Supplemental data:
Average FICO score	753		750
Funded origination breakdown:
Government (FHA,VA,USDA)	16.6	%	19.5	%
Other agency	80.0	%	77.7	%
Total agency	96.6	%	97.2	%
Non-agency	3.4	%	2.8	%
Total funded originations	100.0	%	100	%

Total financial services revenue decreased by 20.1% for the three months ended March 31, 2022 compared to the same period in the prior year. The decrease in total financial services revenue was a result of lower home closings during the period.

Sales, Commissions and Other Marketing Costs

Sales, commissions and other marketing costs, as a percentage of home closings revenue, net, decreased to 5.4% from 6.3% for the three months ended March 31, 2022 compared to the same period in the prior year. The decrease was primarily driven by leverage from an increase in home closings revenue, net, as well as sustained leverage in our sales and marketing functions.

General and Administrative Expenses

General and administrative expenses as a percentage of home closings revenue, net, decreased to 4.2% from 4.5% for the three months ended March 31, 2022 compared to the same period in the prior year. The decrease was primarily due to the increase in home closings revenue, net, while general and administrative expenses remained relatively consistent.

Equity in Income of Unconsolidated Entities

Equity in income of unconsolidated entities was $1.8 million and $5.7 million for the three months ended March 31, 2022 and 2021, respectively. Our joint ventures relating to our financial services segment experienced a decrease in income for the three months ended March 31, 2022 compared to the same period in the prior year, coupled with a decrease in income related to joint ventures that are nearing close-out.

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Other Expense, Net

Other expense, net was $0.5 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively.

Income Tax Provision

The effective tax rate for the three months ended March 31, 2022 was 23.4%, compared to 22.2% for the same period in 2021. For both the three months ended March 31, 2022 and March 31, 2021, the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to stock-based compensation and special deductions and credits relating to prior homebuilding activities.

Net Income

Net income and diluted earnings per share for the three months ended March 31, 2022 was $176.7 million and $1.44, respectively. Net income and diluted earnings per share for the three months ended March 31, 2021 was $98.0 million and $0.75, respectively. The increases in net income and diluted earnings per share from the prior year were primarily attributable to higher homebuilding revenues, net, and higher gross margin dollars.

Liquidity and Capital Resources

Liquidity

We finance our operations through the following:

•Cash generated from operations;

•Borrowings under our Revolving Credit Facilities;

•Our various series of Senior Notes;

•Mortgage warehouse facilities;

•Project-level real estate financing (including non-recourse loans, land banking, and joint ventures); and

•Performance, payment and completion surety bonds, and letters of credit.

Cash flows for each of our communities depend on the status of the development cycle and can differ substantially from reported earnings. Early stages of development or expansion require significant cash expenditures for land acquisitions, on and off-site development, construction of model homes, general landscaping and other amenities. Because these costs are a component of our inventory and are not recognized in our statement of operations until a home closes, we incur significant cash outflows prior to recognition of earnings.

The table below summarizes our total cash and liquidity as of the dates indicated (in thousands):

	As of
(Dollars in thousands)	March 31, 2022		December 31, 2021
Total cash, excluding restricted cash	$	569,249	$	832,821
$800 Million Revolving Credit Facility	800,000		800,000
$100 Million Revolving Credit Facility	100,000		100,000
Letters of credit outstanding	(52,938)		(58,738)
$800 Million Revolving Credit Facility borrowings outstanding	—		—
$100 Million Revolving Credit Facility borrowings outstanding	—		(31,529)
Revolving credit facilities availability	847,062		809,733
Total liquidity	$	1,416,311	$	1,642,554

We believe we have adequate capital resources from cash generated from operations and sufficient access to external financing sources from borrowings under our Revolving Credit Facilities to conduct our operations for the next twelve months. This includes the repayment or refinancing of our 5.875% Senior Notes due 2023. Beyond the next twelve months, our primary demand for funds will be for payments of our long-term debt as it becomes due, land purchases, lot development, home and amenity construction, long-term capital investments, investments in our joint ventures, and repurchases of common stock. We believe we will generate sufficient cash from our operations to meet the demands for such payments, however we may also access the capital markets to obtain additional liquidity through debt and equity offerings or refinance debt to secure capital for such long-term demands.

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Cash Flow Activities

Operating Cash Flow Activities

Our net cash provided by operating activities was $57.5 million for the three months ended March 31, 2022, compared to $144.3 million of cash used in operating activities for the three months ended March 31, 2021. The year-over-year increase in cash provided by operating activities during the three months ended March 31, 2022 is primarily driven by a decrease in the cash flow effect from real estate inventory and land deposits, an increase in net income, and a decrease in mortgage loans held for sale. These increases were partially offset by a decrease in accounts payable and accrued liabilities and a decrease in the cash flow effect from customer deposits.

Investing Cash Flow Activities

Net cash used in investing activities was $7.4 million for the three months ended March 31, 2022, compared to $13.5 million for the three months ended March 31, 2021. The decrease in cash used in investing activities was primarily due to a decrease in the cash flow effect from our investments in unconsolidated entities combined with less purchases of property, plant and equipment in the current period.

Financing Cash Flow Activities

Net cash used in financing activities was $315.5 million for the three months ended March 31, 2022, compared to $17.2 million provided by financing activities for the three months ended March 31, 2021. During the three months ended March 31, 2022, we used cash for the repayment of our $100 Million Revolving Credit Facility and reduced our borrowings on our mortgage warehouse facilities. We also continue to use cash to repurchase our Common Stock.

Debt Instruments

For information regarding our debt instruments, including the terms governing our Senior Notes and our Revolving Credit Facilities, see Note 7 - Debt to the Unaudited Condensed Consolidated Financial Statements included in this quarterly report.

Off-Balance Sheet Arrangements as of March 31, 2022

Investments in Land Development and Homebuilding Joint Ventures or Unconsolidated Entities

We participate in strategic land development and homebuilding joint ventures with related and unrelated third parties. The use of these entities, in some instances, enables us to acquire land to which we could not otherwise obtain access, or could not obtain access on terms that are as favorable. Our partners in these joint ventures historically have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to sites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large or expensive land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners’ capital.

In certain of our unconsolidated joint ventures, we enter into loan agreements, whereby we or one of our subsidiaries will provide the lenders with customary guarantees, including completion, indemnity and environmental guarantees subject to usual non-recourse terms.

For the quarters ended, March 31, 2022 and 2021, total cash contributed to unconsolidated joint ventures was $2.1 million and $13.1 million, respectively.

Land Option Contracts and Land Banking Agreements

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 our routine 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 and/or letters of credit provided to obtain the options. At March 31, 2022 and December 31, 2021, the aggregate purchase price of these contracts was $1.5 billion and $1.3 billion, respectively.

Seasonality

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Our business is seasonal. We have historically experienced, and in the future expect to continue to experience, variability in our results on a quarterly basis. We generally have more homes under construction, close more homes and have greater revenues and operating income in the third and fourth quarters of the year. Therefore, although new home contracts are obtained throughout the year, a higher portion of our home closings occur during the third and fourth calendar quarters. Our revenue therefore may fluctuate significantly on a quarterly basis, and we must maintain sufficient liquidity to meet short-term operating requirements. Factors expected to contribute to these fluctuations include:

•the timing of the introduction and start of construction of new projects;

•the timing of project sales;

•the timing of closings of homes, lots and parcels;

•the timing of receipt of regulatory approvals for development and construction;

•the condition of the real estate market and general economic conditions in the areas in which we operate;

•mix of homes closed;

•construction timetables;

•the cost and availability of materials and labor; and

•weather conditions in the markets in which we build.

As a result of seasonal activity, our quarterly results of operations and financial position are not necessarily representative of the results we expect for the full year.

Inflation

We and the homebuilding industry in general may be adversely affected during periods of high inflation, primarily because of higher land, financing, labor and construction material costs. In addition, higher mortgage interest rates can significantly affect the affordability of mortgage financing to prospective homebuyers. We attempt to pass through to our customers increases in our costs through increased sales prices. However, during periods of soft housing market conditions, we may not be able to offset our cost increases with higher selling prices.

Critical Accounting Policies and Estimates

There have been no significant changes to our critical accounting policies and estimates during the three months ended March 31, 2022 compared to those disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Our operations are interest rate sensitive. We monitor our exposure to changes in interest rates and incur both fixed rate and variable rate debt. At March 31, 2022, approximately 93% of our debt was fixed rate and 7% was variable rate. None of our market sensitive instruments were entered into for trading purposes. For fixed rate debt, changes in interest rates generally affect the fair value of the debt instrument, but not our earnings or cash flows. Conversely, for variable rate debt, changes in interest rates generally do not impact the fair value of the debt instrument but may affect our future earnings and cash flows, and may also impact our variable rate borrowing costs, which principally relate to any borrowings under our Revolving Credit Facility and borrowings by TMHF under its various warehouse facilities. As of March 31, 2022, we had no outstanding borrowings under our $800 Million Revolving Credit Facility or $100 Million Revolving Credit Facility. We had $847.1 million of additional availability for borrowings under the Credit Facilities including $147.1 million of additional availability for letters of credit under our $800 Million Revolving Credit Facility as of March 31, 2022 (giving effect to $52.9 million of letters of credit outstanding as of such date). We are required to offer to purchase all of our outstanding senior unsecured notes, as described in Note 7, Debt to the Condensed Consolidated Financial Statements included in this quarterly report, at 101% of their aggregate principal amount plus accrued and unpaid interest upon the occurrence of specified change of control events. Other than in those circumstances, we do not have an obligation to prepay fixed rate debt prior to maturity and, as a result, we would not expect interest rate risk and changes in fair value to have a significant impact on our cash flows related to our fixed rate debt until such time as we are required to refinance, repurchase or repay such debt.

The following table sets forth principal payments by scheduled maturity and effective weighted average interest rates and estimated fair value of our debt obligations as of March 31, 2022. The interest rate for our variable rate debt represents the interest rate on our mortgage warehouse facilities. Because the mortgage warehouse facilities are secured by certain mortgage loans held for sale which are typically sold within approximately 20 - 30 days, its outstanding balance is included as a variable rate maturity in the most current period presented.

	Expected Maturity Date																					Fair Value
(In millions, except percentage data)	2022			2023			2024			2025			2026			Thereafter			Total
Fixed Rate Debt	$	162.4		$	487.7		$	392.8		$	30.9		$	14.3		$	1,757.3		$	2,845.4		$	2,892.1
Weighted average interest rate(1)	2.8		%	4.9		%	5.4		%	2.8		%	2.8		%	5.7		%	5.3		%
Variable Rate Debt(2)	$	200.7		$	—		$	—		$	—		$	—		$	—		$	200.7		$	200.7
Weighted average interest rate	1.3		%	—			—			—			—			—			—		%

(1) Represents the coupon rate of interest on the full principal amount of the debt.

(2) Based upon the amount of variable rate debt outstanding at March 31, 2022, and holding the variable rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $2.0 million per year.

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ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our principal executive officer, principal financial officer and principal accounting officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of March 31, 2022.  Based on this evaluation, our principal executive officer, principal financial officer and principal accounting officer concluded that, as of March 31, 2022, the Company's disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

35

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information required with respect to this item can be found in Note 13 - Commitments and Contingencies under “Legal Proceedings” in the Notes to the Consolidated Financial statements included in this report.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report. These risk factors may materially affect our business, financial condition or results of operations. You should carefully consider the risk factors set forth in our Annual Report and the other information set forth elsewhere in this quarterly report. You should be aware that these risk factors and other information may not describe every risk facing our Company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth information regarding repurchases by the Company of its Common Stock during the three months ended March 31, 2022.

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)
January 1 to January 31, 2022	157,166	$	34.44	157,166	$	225,000
February 1 to February 28, 2022	1,106,334	28.62		1,106,334	193,335
March 1 to March 31, 2022	684,687	30.60		684,687	172,384
Total	1,948,187			1,948,187

On December 13, 2021, we announced that our Board of Directors had authorized a $250.0 million renewal of the Company's stock repurchase program which expires on June 30, 2024. Repurchases of the Company's Common Stock under the program will occur from time to time, if at all, in open market purchases, privately negotiated transactions or other transactions.

Any stock repurchase program is subject to prevailing market conditions and other considerations, including our liquidity, the terms of our debt instruments, statutory 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.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 30, 2019).
3.2	Amended and Restated By-laws (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 13, 2021).
10.1	Amended and Restated Credit Agreement, dated as of March 11, 2022, among the Borrower, Taylor Morrison Home III Corporation, Taylor Morrison Holdings, Inc., Taylor Morrison Finance, Inc., each lender from time to time party thereto and Citibank, N.A., as administrative agent (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 14, 2022).
31.1*	Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.
31.2*	Certification of Louis Steffens, Chief Financial Officer, pursuant to Section 302 of the Sarbanes–Oxley Act of 2002.
32.1**	Certification of Sheryl D. Palmer, Chief Executive Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
32.2**	Certification of Louis Steffens, Chief Financial Officer, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104.1*	Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in inline XBRL (and contained in Exhibit 101).

* Filed herewith

** Furnished herewith

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them other than for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		TAYLOR MORRISON HOME CORPORATION
		Registrant
DATE:	April 27, 2022
		/s/ Sheryl D. Palmer
		Sheryl D. Palmer
		Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer)
		/s/ Louis Steffens
		Louis Steffens
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)
		/s/ Joseph Terracciano
		Joseph Terracciano
		Chief Accounting Officer (Principal Accounting Officer)

38

EX-31.1

EXHIBIT 31.1

CEO CERTIFICATION

PURSUANT TO SECTION 302 OF THE

SARBANES – OXLEY ACT OF 2002

I, Sheryl D. Palmer, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of Taylor Morrison Home Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2022

By:	/s/ Sheryl D. Palmer
	Sheryl D. Palmer
	Chairman of the Board of Directors and Chief Executive Officer
	Taylor Morrison Home Corporation

EX-31.2

EXHIBIT 31.2

CFO CERTIFICATION

PURSUANT TO SECTION 302 OF THE

SARBANES – OXLEY ACT OF 2002

I, Louis Steffens, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of Taylor Morrison Home Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2022

By:	/s/ Louis Steffens
	Louis Steffens
	Executive Vice President and Chief Financial Officer
	Taylor Morrison Home Corporation

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Taylor Morrison Home Corporation (the “Company”) for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sheryl D. Palmer, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

April 27, 2022	/s/ Sheryl D. Palmer
	Sheryl D. Palmer
	Chairman of the Board of Directors and Chief Executive Officer
	Taylor Morrison Home Corporation

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Taylor Morrison Home Corporation (the “Company”) for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Louis Steffens, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

April 27, 2022	/s/ Louis Steffens
	Louis Steffens
	Executive Vice President and Chief Financial Officer
	Taylor Morrison Home Corporation

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 27, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 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, Suite 2000
Entity Address, Postal Zip Code	85251
Entity Address, City or Town	Scottsdale,
Entity Address, State or Province	AZ
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Smaller Reporting	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		119,638,931
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001562476
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 569,249	$ 832,821
Restricted cash	1,578	3,519
Total cash, cash equivalents, and restricted cash	570,827	836,340
Owned inventory	5,699,709	5,444,207
Consolidated real estate not owned	43,418	55,314
Total real estate inventory	5,743,127	5,499,521
Land deposits	260,861	229,535
Mortgage loans held for sale	229,651	467,534
Derivative assets	5,501	2,110
Lease right of use assets	85,582	85,863
Prepaid expenses and other assets, net	271,180	314,986
Other receivables, net	155,660	150,864
Investments in unconsolidated entities	173,231	171,406
Deferred tax assets, net	151,240	151,240
Property and equipment, net	207,918	155,181
Goodwill	663,197	663,197
Total assets	8,517,975	8,727,777
Liabilities
Accounts payable	225,312	253,348
Accrued expenses and other liabilities	416,881	525,209
Lease liabilities	94,405	96,172
Income taxes payable	15,350	0
Customer deposits	540,916	485,705
Estimated development liabilities	38,522	38,923
Senior notes, net	2,452,311	2,452,322
Loans payable and other borrowings	395,400	404,386
Revolving credit facility borrowings	0	31,529
Mortgage warehouse borrowings	200,662	413,887
Liabilities attributable to consolidated real estate not owned	43,418	55,314
Total liabilities	4,423,177	4,756,795
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ Equity
Total stockholders’ equity	4,094,798	3,970,982
Total liabilities and stockholders’ equity	$ 8,517,975	$ 8,727,777

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total revenue	$ 1,703,124	$ 1,417,812
Total cost of revenue	1,309,996	1,143,371
Gross margin	393,128	274,441
Sales, commissions and other marketing costs	89,123	85,952
General and administrative expenses	68,142	61,553
Equity in income of unconsolidated entities	(1,831)	(5,661)
Interest expense/(income), net	4,252	(119)
Other expense, net	542	975
Income before income taxes	232,900	131,741
Income tax provision	54,439	29,298
Net income before allocation to non-controlling interests	178,461	102,443
Net income attributable to non-controlling interests	(1,758)	(4,422)
Net income available to Taylor Morrison Home Corporation	$ 176,703	$ 98,021
Earnings per common share
Basic (in dollars per share)	$ 1.46	$ 0.76
Diluted (in dollars per share)	$ 1.44	$ 0.75
Weighted average number of shares of common stock:
Basic (in shares)	121,186	128,883
Diluted (in shares)	122,657	131,246
Home closings
Total revenue	$ 1,644,409	$ 1,363,429
Total cost of revenue	1,264,974	1,110,242
Land closings
Total revenue	15,610	4,889
Total cost of revenue	14,364	4,027
Financial Services
Total revenue	35,199	44,065
Total cost of revenue	24,214	23,999
Amenity and other
Total revenue	7,906	5,429
Total cost of revenue	$ 6,444	$ 5,103

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Comprehensive Income before non-controlling interests, net of tax	$ 178,461	$ 102,443
Comprehensive income attributable to non-controlling interests	(1,758)	(4,422)
Comprehensive income available to Taylor Morrison Home Corporation	$ 176,703	$ 98,021

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated  Other Comprehensive Loss	Non-controlling Interest
Balance, beginning of period (in shares) at Dec. 31, 2020			129,476,914		25,884,756
Balance, beginning 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
Net income		102,443				98,021		4,422
Exercise of stock options (in shares)			349,675
Exercise of stock options		6,320		6,320
Issuance of restricted stock units, net of shares withheld for tax (in shares)	[1]		357,213
Issuance of restricted stock units, net of shares withheld for tax	[1]	$ (4,664)		(4,664)
Repurchase of common stock (in shares)		(1,447,309)	(1,447,309)		(1,447,309)
Repurchase of common stock		$ (38,418)			$ (38,418)
Stock compensation expense		5,682		5,682
Distributions to non-controlling interests of consolidated joint ventures		(7,961)						(7,961)
Changes in non-controlling interests of consolidated joint ventures		(1,588)						(1,588)
Balance, end of period (in shares) at Mar. 31, 2021			128,736,493		27,332,065
Balance, end of period at Mar. 31, 2021		3,655,564	$ 1	2,934,111	$ (485,274)	1,123,810	(1,166)	84,082
Balance, beginning of period (in shares) at Dec. 31, 2021			121,833,649		36,828,559
Balance, beginning 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
Net income		178,461				176,703		1,758
Exercise of stock options (in shares)			101,076
Exercise of stock options		2,356		2,356
Issuance of restricted stock units, net of shares withheld for tax (in shares)	[1]		378,852
Issuance of restricted stock units, net of shares withheld for tax	[1]	$ (3,621)		(3,621)
Repurchase of common stock (in shares)		(1,948,187)	(1,948,187)		(1,948,187)
Repurchase of common stock		$ (58,029)			$ (58,029)
Stock compensation expense		6,863		6,863
Distributions to non-controlling interests of consolidated joint ventures		(1,752)						(1,752)
Changes in non-controlling interests of consolidated joint ventures		(462)						(462)
Balance, end of period (in shares) at Mar. 31, 2022			120,365,390		38,776,746
Balance, end of period at Mar. 31, 2022		$ 4,094,798	$ 1	$ 3,002,809	$ (818,892)	$ 1,865,518	$ 689	$ 44,673

[1] Dollar amount represents the value of shares withheld for taxes.

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income before allocation to non-controlling interests	$ 178,461	$ 102,443
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Equity in income of unconsolidated entities	(1,831)	(5,661)
Stock compensation expense	6,863	5,682
Distributions of earnings from unconsolidated entities	2,058	3,162
Depreciation and amortization	8,841	9,636
Operating lease expense	6,913	3,969
Debt issuance costs amortization	191	118
Changes in operating assets and liabilities:
Real estate inventory and land deposits	(286,828)	(356,519)
Mortgages held for sale, prepaid expenses and other assets	171,618	(85,270)
Customer deposits	55,211	110,581
Accounts payable, accrued expenses and other liabilities	(138,247)	34,208
Income taxes payable	54,211	33,343
Net cash provided by/(used in) operating activities	57,461	(144,308)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(5,389)	(7,824)
Distributions of capital from unconsolidated entities	0	7,451
Investments of capital into unconsolidated entities	(2,052)	(13,102)
Net cash used in investing activities	(7,441)	(13,475)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in loans payable and other borrowings	18,287	36,868
Repayments on loans payable and other borrowings	(26,688)	(27,580)
Borrowings on revolving credit facilities	32,548	0
Repayments on revolving credit facilities	(64,077)	0
Borrowings on mortgage warehouse facilities	562,024	697,398
Repayments on mortgage warehouse facilities	(775,249)	(643,854)
Proceeds from stock option exercises	2,356	6,320
Payment of principle portion of finance lease	(1,332)	(1,325)
Repurchase of common stock, net	(58,029)	(38,418)
Payment of taxes related to net share settlement of equity awards	(3,621)	(5,288)
Cash and distributions to non-controlling interests of consolidated joint ventures, net	(1,752)	(6,971)
Net cash (used in)/provided by financing activities	(315,533)	17,150
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(265,513)	(140,633)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period	836,340	534,109
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period	570,827	393,476
SUPPLEMENTAL CASH FLOW INFORMATION:
Income tax (payments)/refund, net	(228)	4,592
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Change in loans payable issued to sellers in connection with land purchase contracts	59,830	82,378
Change in inventory not owned	(11,896)	(64,916)
Net non-cash distributions from non-controlling interests	$ 0	$ (990)

XML

BUSINESS	3 Months Ended
	Mar. 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 developer of lifestyle communities. 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 (formerly referred to as active adult) 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 an exclusive partnership with Christopher Todd Communities, a growing Phoenix-based developer of innovative, luxury rental communities to operate a “Build-to-Rent” homebuilding business. We serve as a land acquirer, developer, and homebuilder while Christopher Todd Communities provides community design and property management consultation. 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

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” on the Condensed Consolidated Statements of Operations.

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 unaudited Condensed Consolidated Financial Statements and these accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, 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.

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. We did not perform an impairment test during the first quarter of 2022 as indicators of impairment were not present.

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 sales 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. 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.

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 sales when the related inventory is charged to cost of sales.

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 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 three months ended March 31, 2022 and 2021, no impairment charges were recorded.

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. 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 subjective 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 March 31, 2022 and December 31, 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. We record fair value adjustments for land held for sale 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 may 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.

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 risks associated with land

ownership and development. In accordance with ASC Topic 810, Consolidation, we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because 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 will consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Consolidated Balance Sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 Equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in Investments in unconsolidated entities on the Consolidated Balance Sheets.

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 no impairment charges related to the investments in unconsolidated entities for the three months ended March 31, 2022 and 2021.

Revenue Recognition — We recognize revenue 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 the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we recognize revenue when (or as) we satisfy the performance obligation. For our home sales transactions, we 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 closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.       

•Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, 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 the 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 which include multi-use properties as part of our Urban Form 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 are realized and unrealized gains and losses from hedging instruments.

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 may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. However, we do not believe the effect of adopting will have a material impact.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per common 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 (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator:
Net income available to TMHC	$	176,703	$	98,021
Denominator:
Weighted average shares – basic	121,186		128,883
Restricted stock units	801		975
Stock Options	670		844
Warrants	—		544
Weighted average shares – diluted	122,657		131,246
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	1.46	$	0.76
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	1.44	$	0.75

The above calculations of weighted average shares exclude 1,045,290 and 811,658 anti-dilutive stock options and unvested restricted stock units (“RSUs”) for the three months ended March 31, 2022 and 2021, respectively.

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REAL ESTATE INVENTORY AND LAND DEPOSITS

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

REAL ESTATE INVENTORY AND LAND DEPOSITS

REAL ESTATE INVENTORY AND LAND DEPOSITS

Inventory consists of the following (in thousands):

	As of
	March 31, 2022		December 31, 2021
Real estate developed and under development	$	3,895,167	$	3,895,681
Real estate held for development or held for sale (1)	72,022		70,305
Operating communities (2)	1,554,551		1,309,551
Capitalized interest	177,969		168,670
Total owned inventory	5,699,709		5,444,207
Consolidated real estate not owned	43,418		55,314
Total real estate inventory	$	5,743,127	$	5,499,521

(1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets.

(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 (dollars in thousands):

	As of
	March 31, 2022			December 31, 2021
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Homebuilding owned lots
Raw	3,933	$	179,376	4,017	$	178,952
Partially developed	23,237	1,572,778		24,636	1,568,967
Finished	19,999	2,124,655		19,360	2,119,128
Total homebuilding owned lots	47,169	3,876,809		48,013	3,867,047
Other assets	5,298	90,380		5,298	98,939
Total owned lots	52,467	$	3,967,189	53,311	$	3,965,986

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the creditors generally only have recourse against us in the form of retaining any 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
	March 31, 2022					December 31, 2021
	Controlled Lots	Purchase Price		Land Deposit (1)		Controlled Lots	Purchase Price		Land Deposit (1)
Homebuilding controlled lots
Land option purchase contracts	7,831	$	457,796	$	52,213	8,360	$	507,161	$	57,554
Land banking arrangements	7,117	1,000,881		136,404		5,731	749,813		117,721
Other controlled lots	14,766	1,303,421		49,792		14,671	1,338,284		38,505
Total controlled lots	29,714	$	2,762,098	$	238,409	28,762	$	2,595,258	$	213,780

(1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at March 31, 2022 and December 31, 2021 we had refundable deposits of $22.5 million and $15.7 million respectively.

Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Interest capitalized - beginning of period	$	168,670	$	163,780
Interest incurred and capitalized	39,729		37,719
Interest amortized to cost of home closings	(30,430)		(27,325)
Interest capitalized - end of period	$	177,969	$	174,174

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INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES

3 Months Ended

Mar. 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 and/or mortgage lending activities. The real estate development joint ventures primary activity is 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.

Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands):

	As of
	March 31, 2022		December 31, 2021
Assets:
Real estate inventory	$	418,004	$	414,687
Other assets	134,890		118,990
Total assets	$	552,894	$	533,677
Liabilities and owners’ equity:
Debt	$	176,477	$	167,842
Other liabilities	23,231		16,245
Total liabilities	199,708		184,087
Owners’ equity:
TMHC	173,231		171,406
Others	179,955		178,184
Total owners’ equity	353,186		349,590
Total liabilities and owners’ equity	$	552,894	$	533,677

	Three Months Ended March 31,
	2022		2021
Revenues	$	30,401	$	49,880
Costs and expenses	(25,694)		(34,157)
Income of unconsolidated entities	$	4,707	$	15,723
TMHC’s share in income of unconsolidated entities	$	1,831	$	5,661
Distributions to TMHC from unconsolidated entities	$	2,058	$	10,613

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 joint venture VIEs, and these entities are consolidated.As of March 31, 2022, the assets of the consolidated joint ventures totaled $260.0 million, of which $23.1 million was cash and cash equivalents and $79.0 million was owned inventory. 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 and $147.6 million was owned inventory. The liabilities of the consolidated joint ventures totaled $141.2 million and $165.1 million as of March 31, 2022 and December 31, 2021, respectively, and were primarily comprised of notes payable, accounts payable and accrued liabilities.

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ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 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 (in thousands):

	As of March 31, 2022		As of December 31, 2021
Real estate development costs to complete	$	46,044	$	49,833
Compensation and employee benefits	78,849		166,272
Self-insurance and warranty reserves	140,970		141,839
Interest payable	39,241		48,551
Property and sales taxes payable	27,115		29,384
Other accruals	84,662		89,330
Total accrued expenses and other liabilities	$	416,881	$	525,209

Self-Insurance and Warranty Reserves – We accrue for the expected costs associated with our limited warranty, deductibles and self-insured amounts under our various insurance policies within Beneva Indemnity Company (“Beneva”), a wholly owned subsidiary. A summary of the changes in our reserves are as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Reserve - beginning of period	$	141,839	$	118,116
Other additions to reserves	8,884		12,391
Cost of claims incurred	(12,473)		(15,865)
Changes in estimates to pre-existing reserves	2,720		1,764
Reserve - end of period	$	140,970	$	116,406

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DEBT

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

Total debt consists of the following (in thousands):

	As of
	March 31, 2022						December 31, 2021
	Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value		Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value
5.875% Senior Notes due 2023	$	350,000	$	(591)	$	349,409	$	350,000	$	(733)	$	349,267
5.625% Senior Notes due 2024	350,000		(1,032)		348,968		350,000		(1,166)		348,834
5.875% Senior Notes due 2027	500,000		(4,047)		495,953		500,000		(4,243)		495,757
6.625% Senior Notes due 2027	300,000		16,919		316,919		300,000		17,718		317,718
5.75% Senior Notes due 2028	450,000		(3,656)		446,344		450,000		(3,814)		446,186
5.125% Senior Notes due 2030	500,000		(5,282)		494,718		500,000		(5,440)		494,560
Senior Notes subtotal	$	2,450,000	$	2,311	$	2,452,311	$	2,450,000	$	2,322	$	2,452,322
Loans payable and other borrowings	395,400		—		395,400		404,386		—		404,386
$800 Million Revolving Credit Facility	—		—		—		—		—		—
$100 Million Revolving Credit Facility	—		—		—		31,529		—		31,529
Mortgage warehouse borrowings	200,662		—		200,662		413,887		—		413,887
Total debt	$	3,046,062	$	2,311	$	3,048,373	$	3,299,802	$	2,322	$	3,302,124

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 March 31, 2022, we were in compliance with all of the covenants under the Senior Notes.

5.875% Senior Notes due 2023

On April 16, 2015, Taylor Morrison Communities, Inc (“TM Communities”) issued $350.0 million aggregate principal amount of 5.875% Senior Notes due 2023 (the “2023 5.875% Senior Notes”), which mature on April 15, 2023. The 2023 5.875% 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 2023 5.875% 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 of control.

Prior to January 15, 2023, the 2023 5.875% Senior Notes are redeemable at a price equal to 100% plus a “make-whole” premium for payments through January 15, 2023 (plus accrued and unpaid interest). Beginning January 15, 2023, the 2023 5.875% Senior Notes are redeemable at par (plus accrued and unpaid interest).

5.625% Senior Notes due 2024

On March 5, 2014, 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 the Guarantors. The change of control provisions in the indenture governing the 2024 Senior Notes are similar to those contained in the indentures governing our other Senior Notes.

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, whereby TM Communities offered to exchange any and all outstanding senior notes issued by 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 “Exchange offer”). The 2027 6.625% TM Communities Notes are obligations of TM Communities and are guaranteed by the Guarantors. The change of control provisions in the indenture governing the 2027 6.625% TM Communities Notes are similar to those contained in the indentures governing our other Senior Notes. 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.

The 2027 6.625% Senior Notes mature on July 15, 2027. Prior to July 15, 2022, the 2027 6.625% Senior Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest, if any, to, but not including, the redemption date. On or after July 15, 2022, the 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 2027 6.625% Senior Notes are redeemable at a price equal to 100% of principal (plus accrued and unpaid interest).

In addition, at any time prior to July 15, 2022, we may, at our option, on one or more occasions, redeem the 2027 6.625% Senior Notes (including any additional notes that may be issued in the future under the 2027 6.625% Senior Notes Indenture) in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2027 6.625% Senior Notes at a redemption price (expressed as a percentage of principal amount) of 106.625%, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings.

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 5.875% 2025 Senior Notes

In July 2020, we partially redeemed $266.9 million of our 6.00% Senior Notes due 2023 (the “2023 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 Senior Notes and 2025 Senior Notes, respectively, using cash on hand. For the 2023 Senior Notes, the redemption price was equal to 100.0% 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 Senior Notes and 2025 Senior Notes, we

recorded a total net loss on extinguishment of debt of approximately $10.2 million in 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).

$800 Million Revolving Credit Facility

On March 11, 2022, we amended our $800 Million Revolving Credit Facility, which extends the maturity date from February 6, 2024 to March 11, 2027 and includes reduced pricing upon meeting lower capitalization ratios. The facility remains guaranteed by the Guarantors.

We had no outstanding borrowings under our $800 Million Revolving Credit Facility as of March 31, 2022 or December 31, 2021.

As of March 31, 2022 and December 31, 2021, we had $3.2 million and $1.1 million, respectively, of unamortized debt issuance costs relating to our $800 Million Revolving Credit Facility, which are included in Prepaid expenses and other assets, net, on the Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, we had $52.9 million and $58.7 million, respectively, of utilized letters of credit, resulting in $747.1 million and $741.3 million, respectively, of availability under the $800 Million Revolving Credit Facility.

The $800 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 $2.5 billion. The financial covenants would be in effect for any fiscal quarter during which any (a) loans under the $800 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 $800 Million Revolving Credit Facility in an aggregate amount greater than $40.0 million or unreimbursed letters of credit issued under the $800 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 $800 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 $800 Million Revolving Credit Facility contains certain restrictive covenants including limitations on incurrence of liens, 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 $800 Million 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 March 31, 2022, we were in compliance with all of the covenants under the $800 Million 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 (the $100 Million Revolving Credit Agreement together with the $800 Million Revolving Credit Agreement, the “Credit Facilities”). This facility is specific to our Build-to-Rent operations. We had no borrowings outstanding under our $100 Million Revolving Credit Facility as of March 31, 2022, and had $31.5 million in outstanding borrowings as of December 31, 2021.

As of March 31, 2022 and December 31, 2021, we had $0.6 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 Condensed Consolidated Balance Sheets. As of March 31, 2022 we had no utilized letters of credit, resulting in $100.0 million of availability under the $100 Million Revolving Credit Facility. As of December 31, 2021, we had $68.5 million 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 $2.5 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 $800 Million Revolving Credit Facility, described above. As of March 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 warehouse borrowings (in thousands):

	As of March 31, 2022
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	2,553	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	21,618		75,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	69,898		125,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	30,556		100,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	76,037		100,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	200,662	$	410,000
	As of December 31, 2021
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	12	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	86,409		150,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	116,601		250,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	105,065		150,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	105,800		200,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	413,887	$	760,000

(1) Subject to certain interest rate floors.

(2) The mortgage warehouse borrowings outstanding as of March 31, 2022 and December 31, 2021 were collateralized by $229.7 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage loans held for sale, and approximately $1.6 million and $3.5 million, respectively, of cash which is restricted cash on our Condensed Consolidated Balance Sheet.

Loans Payable and Other Borrowings

Loans payable and other borrowings as of March 31, 2022 and December 31, 2021 consist of project-level debt due to various land sellers and financial institutions for specific projects. 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. Loans payable bear interest at rates that ranged from 0% to 8% at each of March 31, 2022 and December 31, 2021.

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FAIR VALUE DISCLOSURES

3 Months Ended

Mar. 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 interest rate lock commitments (“IRLCs”) and mortgage backed securities (“MBS”). The fair value of IRLCs is based on the value of the underlying mortgage loan, 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, the borrowings under our Revolving Credit Facility 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 March 31, 2022, when compared to December 31, 2021.

The carrying value and fair value of our financial instruments are as follows:

		March 31, 2022				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 sale	2	$	229,651	$	229,651	$	467,534	$	467,534
IRLCs	3	420		420		2,110		2,110
MBSs	2	5,080		5,080		(449)		(449)
Mortgage warehouse borrowings	2	200,662		200,662		413,887		413,887
Loans payable and other borrowings	2	395,400		395,400		404,386		404,386
5.875% Senior Notes due 2023 (1)	2	349,409		354,830		349,267		365,890
5.625% Senior Notes due 2024 (1)	2	348,968		360,150		348,834		372,750
5.875% Senior Notes due 2027 (1)	2	495,953		520,000		495,757		560,000
6.625% Senior Notes due 2027 (1)	2	316,919		308,250		317,718		315,750
5.75% Senior Notes due 2028(1)	2	446,344		463,500		446,186		502,875
5.125% Senior Notes due 2030(1)	2	494,718		490,000		494,560		550,000
$800 Million Revolving Credit Facility	2	—		—		—		—
$100 Million Revolving Credit Facility	2	—		—		31,529		31,529
Equity Security Investment	1	5,030		5,030		6,400		6,400

(1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs and premiums. Debt issuance costs are not factored into the fair value calculation for the Senior Notes.

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INCOME TAXES	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe effective tax rate for the three months ended March 31, 2022 was 23.4%, compared to 22.2% for the same period in 2021. For both the three months ended March 31, 2022 and March 31, 2021 the effective tax rate differed from the U.S. federal statutory income tax rate primarily due to state income taxes, non-deductible executive compensation, excess tax benefits related to stock-based compensation and special deductions and credits relating to prior homebuilding activities. At both March 31, 2022 and December 31, 2021, there were no unrecognized tax benefits.

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STOCKHOLDERS’ EQUITY

3 Months Ended

Mar. 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

The following table summarizes share repurchase activity for the periods presented:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Amount available for repurchase — beginning of period(1)	$	230,413	$	86,831
Amount repurchased	(58,029)		(38,418)
Amount available for repurchase — end of period	$	172,384	$	48,413

(1) Represents the amount available for repurchase as of January 1 for the years presented, adjusted for previously expired share repurchase authorizations.

The Company repurchased 1,948,187 shares under the share repurchase program during the three months ended March 31, 2022 and 1,447,309 during the three months ended March 31, 2021.

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STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

Equity-Based Compensation

The following table provides the outstanding balance of time-based and performance based RSUs and stock options as of March 31, 2022:

	Restricted Stock Units  (time and performance)			Stock Options
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Exercise Price Per Share
Balance at March 31, 2022	1,641,411	$	27.28	3,582,800	$	23.10

The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended March 31,
	2022		2021
Restricted stock units (1)	$	5,780	$	4,748
Stock options	1,083		934
Total stock compensation	$	6,863	$	5,682

(1) Includes compensation expense related to time-based RSUs and performance-based RSUs.

At March 31, 2022 and December 31, 2021, the aggregate unrecognized value of all outstanding stock-based compensation awards was approximately $43.2 million and $26.5 million, respectively.

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REPORTING SEGMENTS

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

REPORTING SEGMENTS

REPORTING SEGMENTS

We have multiple homebuilding operating components which are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those 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:

East	Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
Central	Austin, Dallas, Denver, and Houston
West	Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial Services	Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services

Segment information is as follows (in thousands):

	Three Months Ended March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Total revenue	$	525,121	$	370,735	$	770,210	$	35,199	$	1,859	$	1,703,124
Gross margin	125,691		74,008		181,531		10,985		913		393,128
Selling, general and administrative expenses	(40,326)		(29,440)		(43,519)		—		(43,980)		(157,265)
Equity in (loss)/income of unconsolidated entities	—		85		(312)		2,058		—		1,831
Interest and other expense, net(2)	(432)		(1,860)		(1,966)		—		(536)		(4,794)
Income/(loss) before income taxes	$	84,933	$	42,793	$	135,734	$	13,043	$	(43,603)	$	232,900

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

	Three Months Ended March 31, 2021
	East		Central		West		Financial Services		Corporate and Unallocated (1)		Total
Total revenue	$	453,362	$	322,612	$	597,730	$	44,065	$	43	$	1,417,812
Gross margin	85,067		65,178		104,438		20,066		(308)		274,441
Selling, general and administrative expenses	(38,598)		(28,558)		(41,554)		—		(38,795)		(147,505)
Equity in (loss)/income of unconsolidated entities	—		(64)		1,992		3,743		(10)		5,661
Interest and other income/(expense), net (2)	42		(373)		(108)		—		(417)		(856)
Income/(loss) before income taxes	$	46,511	$	36,183	$	64,768	$	23,809	$	(39,530)	$	131,741

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

	As of March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,905,120	$	1,389,070	$	2,709,798	$	—	$	—	$	6,003,988
Investments in unconsolidated entities	—		87,737		81,219		4,275		—		173,231
Other assets	153,946		198,151		550,998		334,568		1,103,093		2,340,756
Total assets	$	2,059,066	$	1,674,958	$	3,342,015	$	338,843	$	1,103,093	$	8,517,975

(1) Includes corporate cash and the assets from our Build-To-Rent and Urban Form operations.

	As of December 31, 2021
	East		Central		West		Financial 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 assets	196,126		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 corporate cash and the assets from our Build-To-Rent and Urban Form operations.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 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 as of March 31, 2022 and December 31, 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 letters of credit or surety bonds as of March 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 and/or letters of credit provided to obtain the options. At March 31, 2022 and December 31, 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 our business operations, including actions brought on behalf of various classes of claimants. We are also subject to a variety of local, state, and federal laws and regulations related to land development activities, house construction standards, sales practices, mortgage lending operations, title and insurance agency operations, safety and other employment practices, and protection of the environment. As a result, we are subject to periodic examination or inquiry by various governmental agencies that administer these laws and regulations.

We establish liabilities for legal claims and regulatory matters when such matters are both probable of occurring and any potential loss is reasonably estimable. At March 31, 2022 and December 31, 2021, our legal accruals were $23.1 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 matters. 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 March 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.

Leases — Our leases primarily consist of office space, construction trailers, model home leasebacks, a ground lease, equipment, and storage units. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases. Lease obligations were $94.4 million and $96.2 million as of March 31, 2022 and December 31, 2021, respectively. We recorded lease expense of approximately $6.9 million and $4.0 million for the three months ended March 31, 2022, and 2021, respectively, within general and administrative expenses on our Condensed Consolidated Statement of Operations.

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MORTGAGE HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

MORTGAGE HEDGING ACTIVITIES

MORTGAGE HEDGING ACTIVITIES

We enter into IRLCs to originate 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. These 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 Condensed Consolidated Statements of Operations and Comprehensive Income. Unrealized gains and losses on the IRLCs, reflected as derivative assets or liabilities, 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.

The following summarizes derivative instrument assets (liabilities) as of the periods presented:

	As of
	March 31, 2022				December 31, 2021
(Dollars in thousands)	Fair Value		Notional Amount (1)		Fair Value		Notional Amount (1)
IRLCs	$	420	$	386,707	$	2,110	$	158,299
MBSs	5,080		404,000		(449)		407,000
Total	$	5,500			$	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 $417.7 million and $173.7 million as of March 31, 2022 and December 31, 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 includes 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, placing contractual limits on the amount of unsecured credit extended to any single counterparty, and 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation — The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

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” on the Condensed Consolidated Statements of Operations.

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 unaudited Condensed Consolidated Financial Statements and these accompanying notes. Significant estimates include real estate development costs to complete, valuation of real estate, 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.

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. We did not perform an impairment test during the first quarter of 2022 as indicators of impairment were not present.

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 sales 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. 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.

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 sales when the related inventory is charged to cost of sales.

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 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 three months ended March 31, 2022 and 2021, no impairment charges were recorded.

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. 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 subjective 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 March 31, 2022 and December 31, 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. We record fair value adjustments for land held for sale 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 may 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.

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 risks associated with land

ownership and development. In accordance with ASC Topic 810, Consolidation, we have concluded that when we enter into these agreements to acquire land or lots and pay a non-refundable deposit, a Variable Interest Entity (“VIE”) may be created because 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 will consolidate the VIE and reflect such assets and liabilities as Consolidated real estate not owned within our real estate inventory balance in the Consolidated Balance Sheets.

Unconsolidated Joint Ventures — We use the equity method of accounting for entities over 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 Equity in income of unconsolidated entities when earned and distributions are credited against our investment in the joint venture when received. These joint ventures are recorded in Investments in unconsolidated entities on the Consolidated Balance Sheets.

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.

Revenue Recognition

Revenue Recognition — We recognize revenue 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 the proper home closings revenue and land closings revenue recognition: (1) we identify the contract(s) with our customer; (2) we identify the performance obligations in the contract; (3) we determine the transaction price; (4) we allocate the transaction price to the performance obligations in the contract; and (5) we recognize revenue when (or as) we satisfy the performance obligation. For our home sales transactions, we 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 closings have occurred, the buyer has made the required minimum down payment, obtained necessary financing, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives.       

•Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable, 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 the 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 which include multi-use properties as part of our Urban Form 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 are realized and unrealized gains and losses from hedging instruments.

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 may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect of adopting the new guidance on our consolidated financial statements and related disclosures. However, we do not believe the effect of adopting will have a material impact.

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Summary of Earnings Per Common Share

The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator:
Net income available to TMHC	$	176,703	$	98,021
Denominator:
Weighted average shares – basic	121,186		128,883
Restricted stock units	801		975
Stock Options	670		844
Warrants	—		544
Weighted average shares – diluted	122,657		131,246
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	1.46	$	0.76
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	1.44	$	0.75

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REAL ESTATE INVENTORY AND LAND DEPOSITS (Tables)

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Schedule of Inventory

Inventory consists of the following (in thousands):

	As of
	March 31, 2022		December 31, 2021
Real estate developed and under development	$	3,895,167	$	3,895,681
Real estate held for development or held for sale (1)	72,022		70,305
Operating communities (2)	1,554,551		1,309,551
Capitalized interest	177,969		168,670
Total owned inventory	5,699,709		5,444,207
Consolidated real estate not owned	43,418		55,314
Total real estate inventory	$	5,743,127	$	5,499,521

(1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets.

(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.

Schedule of Development Status of Land Inventory

The development status of our land inventory is as follows (dollars in thousands):

	As of
	March 31, 2022			December 31, 2021
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Homebuilding owned lots
Raw	3,933	$	179,376	4,017	$	178,952
Partially developed	23,237	1,572,778		24,636	1,568,967
Finished	19,999	2,124,655		19,360	2,119,128
Total homebuilding owned lots	47,169	3,876,809		48,013	3,867,047
Other assets	5,298	90,380		5,298	98,939
Total owned lots	52,467	$	3,967,189	53,311	$	3,965,986

Schedule of Controlled Lots

The table below presents a summary of our controlled lots for the following periods (dollars in thousands):

	As of
	March 31, 2022					December 31, 2021
	Controlled Lots	Purchase Price		Land Deposit (1)		Controlled Lots	Purchase Price		Land Deposit (1)
Homebuilding controlled lots
Land option purchase contracts	7,831	$	457,796	$	52,213	8,360	$	507,161	$	57,554
Land banking arrangements	7,117	1,000,881		136,404		5,731	749,813		117,721
Other controlled lots	14,766	1,303,421		49,792		14,671	1,338,284		38,505
Total controlled lots	29,714	$	2,762,098	$	238,409	28,762	$	2,595,258	$	213,780

(1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at March 31, 2022 and December 31, 2021 we had refundable deposits of $22.5 million and $15.7 million respectively.

Schedule of Interest Capitalized, Incurred, Expensed and Amortized

Interest capitalized, incurred and amortized is as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Interest capitalized - beginning of period	$	168,670	$	163,780
Interest incurred and capitalized	39,729		37,719
Interest amortized to cost of home closings	(30,430)		(27,325)
Interest capitalized - end of period	$	177,969	$	174,174

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INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Summarized Financial Information of Unconsolidated Entities Accounted by Equity Method

Summarized, unaudited combined financial information of unconsolidated entities that are accounted for by the equity method are as follows (in thousands):

	As of
	March 31, 2022		December 31, 2021
Assets:
Real estate inventory	$	418,004	$	414,687
Other assets	134,890		118,990
Total assets	$	552,894	$	533,677
Liabilities and owners’ equity:
Debt	$	176,477	$	167,842
Other liabilities	23,231		16,245
Total liabilities	199,708		184,087
Owners’ equity:
TMHC	173,231		171,406
Others	179,955		178,184
Total owners’ equity	353,186		349,590
Total liabilities and owners’ equity	$	552,894	$	533,677

	Three Months Ended March 31,
	2022		2021
Revenues	$	30,401	$	49,880
Costs and expenses	(25,694)		(34,157)
Income of unconsolidated entities	$	4,707	$	15,723
TMHC’s share in income of unconsolidated entities	$	1,831	$	5,661
Distributions to TMHC from unconsolidated entities	$	2,058	$	10,613

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ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Summary of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consist of the following (in thousands):

	As of March 31, 2022		As of December 31, 2021
Real estate development costs to complete	$	46,044	$	49,833
Compensation and employee benefits	78,849		166,272
Self-insurance and warranty reserves	140,970		141,839
Interest payable	39,241		48,551
Property and sales taxes payable	27,115		29,384
Other accruals	84,662		89,330
Total accrued expenses and other liabilities	$	416,881	$	525,209

Summary of Changes in Reserves

A summary of the changes in our reserves are as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Reserve - beginning of period	$	141,839	$	118,116
Other additions to reserves	8,884		12,391
Cost of claims incurred	(12,473)		(15,865)
Changes in estimates to pre-existing reserves	2,720		1,764
Reserve - end of period	$	140,970	$	116,406

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DEBT (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Summary of Total Debt

Total debt consists of the following (in thousands):

	As of
	March 31, 2022						December 31, 2021
	Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value		Principal		Unamortized Debt Issuance (Costs)/Premium		Carrying Value
5.875% Senior Notes due 2023	$	350,000	$	(591)	$	349,409	$	350,000	$	(733)	$	349,267
5.625% Senior Notes due 2024	350,000		(1,032)		348,968		350,000		(1,166)		348,834
5.875% Senior Notes due 2027	500,000		(4,047)		495,953		500,000		(4,243)		495,757
6.625% Senior Notes due 2027	300,000		16,919		316,919		300,000		17,718		317,718
5.75% Senior Notes due 2028	450,000		(3,656)		446,344		450,000		(3,814)		446,186
5.125% Senior Notes due 2030	500,000		(5,282)		494,718		500,000		(5,440)		494,560
Senior Notes subtotal	$	2,450,000	$	2,311	$	2,452,311	$	2,450,000	$	2,322	$	2,452,322
Loans payable and other borrowings	395,400		—		395,400		404,386		—		404,386
$800 Million Revolving Credit Facility	—		—		—		—		—		—
$100 Million Revolving Credit Facility	—		—		—		31,529		—		31,529
Mortgage warehouse borrowings	200,662		—		200,662		413,887		—		413,887
Total debt	$	3,046,062	$	2,311	$	3,048,373	$	3,299,802	$	2,322	$	3,302,124

Summary of Mortgage Subsidiary Borrowings

The following is a summary of our mortgage warehouse borrowings (in thousands):

	As of March 31, 2022
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	2,553	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	21,618		75,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	69,898		125,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	30,556		100,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	76,037		100,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	200,662	$	410,000
	As of December 31, 2021
Facility	Amount Drawn		Facility Amount		Interest Rate(1)	Expiration Date	Collateral (2)
Warehouse A	$	12	$	10,000	LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse B	86,409		150,000		LIBOR + 1.75%	On Demand	Mortgage Loans
Warehouse C	116,601		250,000		LIBOR + 2.05%	On Demand	Mortgage Loans and Restricted Cash
Warehouse D	105,065		150,000		LIBOR + 1.65%	November 20, 2022	Mortgage Loans
Warehouse E	105,800		200,000		LIBOR + 1.50%	On Demand	Mortgage Loans
Total	$	413,887	$	760,000

(1) Subject to certain interest rate floors.

(2) The mortgage warehouse borrowings outstanding as of March 31, 2022 and December 31, 2021 were collateralized by $229.7 million and $467.5 million, respectively, of mortgage loans held for sale, which comprise the balance of mortgage loans held for sale, and approximately $1.6 million and $3.5 million, respectively, of cash which is restricted cash on our Condensed Consolidated Balance Sheet.

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FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Carrying Value and Fair Value of Financial Instruments

The carrying value and fair value of our financial instruments are as follows:

		March 31, 2022				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 sale	2	$	229,651	$	229,651	$	467,534	$	467,534
IRLCs	3	420		420		2,110		2,110
MBSs	2	5,080		5,080		(449)		(449)
Mortgage warehouse borrowings	2	200,662		200,662		413,887		413,887
Loans payable and other borrowings	2	395,400		395,400		404,386		404,386
5.875% Senior Notes due 2023 (1)	2	349,409		354,830		349,267		365,890
5.625% Senior Notes due 2024 (1)	2	348,968		360,150		348,834		372,750
5.875% Senior Notes due 2027 (1)	2	495,953		520,000		495,757		560,000
6.625% Senior Notes due 2027 (1)	2	316,919		308,250		317,718		315,750
5.75% Senior Notes due 2028(1)	2	446,344		463,500		446,186		502,875
5.125% Senior Notes due 2030(1)	2	494,718		490,000		494,560		550,000
$800 Million Revolving Credit Facility	2	—		—		—		—
$100 Million Revolving Credit Facility	2	—		—		31,529		31,529
Equity Security Investment	1	5,030		5,030		6,400		6,400

(1) Carrying value for Senior Notes, as presented, includes unamortized debt issuance costs and premiums. Debt issuance costs are not factored into the fair value calculation for the Senior Notes.

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STOCKHOLDERS’ EQUITY (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stock Repurchase Details

The following table summarizes share repurchase activity for the periods presented:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Amount available for repurchase — beginning of period(1)	$	230,413	$	86,831
Amount repurchased	(58,029)		(38,418)
Amount available for repurchase — end of period	$	172,384	$	48,413

(1) Represents the amount available for repurchase as of January 1 for the years presented, adjusted for previously expired share repurchase authorizations.

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STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Share-based Payment Arrangement Activity

The following table provides the outstanding balance of time-based and performance based RSUs and stock options as of March 31, 2022:

	Restricted Stock Units  (time and performance)			Stock Options
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Exercise Price Per Share
Balance at March 31, 2022	1,641,411	$	27.28	3,582,800	$	23.10

Summary of Stock-Based Compensation Expense

The following table provides information regarding the amount and components of stock-based compensation expense, all of which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended March 31,
	2022		2021
Restricted stock units (1)	$	5,780	$	4,748
Stock options	1,083		934
Total stock compensation	$	6,863	$	5,682

(1) Includes compensation expense related to time-based RSUs and performance-based RSUs.

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REPORTING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Summary of Reporting Segments

Our reporting segments are as follows:

East	Atlanta, Charlotte, Jacksonville, Naples, Orlando, Raleigh, Sarasota, and Tampa
Central	Austin, Dallas, Denver, and Houston
West	Bay Area, Las Vegas, Phoenix, Portland, Sacramento, Seattle, and Southern California
Financial Services	Taylor Morrison Home Funding, Inspired Title Services, and Taylor Morrison Insurance Services

Summary of Segment Information

Segment information is as follows (in thousands):

	Three Months Ended March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Total revenue	$	525,121	$	370,735	$	770,210	$	35,199	$	1,859	$	1,703,124
Gross margin	125,691		74,008		181,531		10,985		913		393,128
Selling, general and administrative expenses	(40,326)		(29,440)		(43,519)		—		(43,980)		(157,265)
Equity in (loss)/income of unconsolidated entities	—		85		(312)		2,058		—		1,831
Interest and other expense, net(2)	(432)		(1,860)		(1,966)		—		(536)		(4,794)
Income/(loss) before income taxes	$	84,933	$	42,793	$	135,734	$	13,043	$	(43,603)	$	232,900

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

	Three Months Ended March 31, 2021
	East		Central		West		Financial Services		Corporate and Unallocated (1)		Total
Total revenue	$	453,362	$	322,612	$	597,730	$	44,065	$	43	$	1,417,812
Gross margin	85,067		65,178		104,438		20,066		(308)		274,441
Selling, general and administrative expenses	(38,598)		(28,558)		(41,554)		—		(38,795)		(147,505)
Equity in (loss)/income of unconsolidated entities	—		(64)		1,992		3,743		(10)		5,661
Interest and other income/(expense), net (2)	42		(373)		(108)		—		(417)		(856)
Income/(loss) before income taxes	$	46,511	$	36,183	$	64,768	$	23,809	$	(39,530)	$	131,741

(1) Includes the activity from our Build-To-Rent and Urban Form operations.

(2) Interest and other expense, net includes pre-acquisition write-offs of terminated projects.

Summary of Assets by Segment

	As of March 31, 2022
	East		Central		West		Financial Services		Corporate and Unallocated(1)		Total
Real estate inventory and land deposits	$	1,905,120	$	1,389,070	$	2,709,798	$	—	$	—	$	6,003,988
Investments in unconsolidated entities	—		87,737		81,219		4,275		—		173,231
Other assets	153,946		198,151		550,998		334,568		1,103,093		2,340,756
Total assets	$	2,059,066	$	1,674,958	$	3,342,015	$	338,843	$	1,103,093	$	8,517,975

(1) Includes corporate cash and the assets from our Build-To-Rent and Urban Form operations.

	As of December 31, 2021
	East		Central		West		Financial 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 assets	196,126		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 corporate cash and the assets from our Build-To-Rent and Urban Form operations.

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MORTGAGE HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 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
	March 31, 2022				December 31, 2021
(Dollars in thousands)	Fair Value		Notional Amount (1)		Fair Value		Notional Amount (1)
IRLCs	$	420	$	386,707	$	2,110	$	158,299
MBSs	5,080		404,000		(449)		407,000
Total	$	5,500			$	1,661

(1) The notional amounts in the table above includes mandatory and best effort mortgages, that have been locked and approved.

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BUSINESS - Narrative (Details)	3 Months Ended
	Mar. 31, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	4

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Real Estate [Line Items]
Inventory impairment charges	$ 0	$ 0
Impairment charges on unconsolidated entities	$ 0	$ 0
Minimum
Real Estate [Line Items]
Life cycle of communities (in years)	2 years
Maximum
Real Estate [Line Items]
Life cycle of communities (in years)	5 years

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EARNINGS PER SHARE - Summary of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income available to TMHC	$ 176,703	$ 98,021
Denominator:
Weighted average shares - basic (in shares)	121,186	128,883
Restricted stock units (in shares)	801	975
Stock Options (in shares)	670	844
Warrants (in shares)	0	544
Weighted average shares - diluted (in shares)	122,657	131,246
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation (in dollars per share)	$ 1.46	$ 0.76
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation (in dollars per share)	$ 1.44	$ 0.75

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EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock options and time-vesting RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of earnings per share (in shares)	1,045,290	811,658

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REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Real Estate [Abstract]
Real estate developed and under development	$ 3,895,167	$ 3,895,681
Real estate held for development or held for sale	72,022	70,305
Operating communities	1,554,551	1,309,551
Capitalized interest	177,969	168,670	$ 174,174	$ 163,780
Total owned inventory	5,699,709	5,444,207
Consolidated real estate not owned	43,418	55,314
Total real estate inventory	$ 5,743,127	$ 5,499,521

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REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Development Status of Land Inventory (Details) $ in Thousands	Mar. 31, 2022 USD ($) lot	Dec. 31, 2021 USD ($) lot
Owned Lots
Inventory [Line Items]
Owned Lots | lot	52,467	53,311
Book Value of Land and Development
Inventory [Line Items]
Total owned lots | $	$ 3,967,189	$ 3,965,986
Raw | Owned Lots
Inventory [Line Items]
Owned Lots | lot	3,933	4,017
Raw | Book Value of Land and Development
Inventory [Line Items]
Raw | $	$ 179,376	$ 178,952
Partially developed | Owned Lots
Inventory [Line Items]
Owned Lots | lot	23,237	24,636
Partially developed | Book Value of Land and Development
Inventory [Line Items]
Partially developed | $	$ 1,572,778	$ 1,568,967
Finished | Owned Lots
Inventory [Line Items]
Owned Lots | lot	19,999	19,360
Finished | Book Value of Land and Development
Inventory [Line Items]
Finished | $	$ 2,124,655	$ 2,119,128
Total homebuilding owned lots | Owned Lots
Inventory [Line Items]
Owned Lots | lot	47,169	48,013
Total homebuilding owned lots | Book Value of Land and Development
Inventory [Line Items]
Total homebuilding owned lots | $	$ 3,876,809	$ 3,867,047
Other assets | Owned Lots
Inventory [Line Items]
Owned Lots | lot	5,298	5,298
Other assets | Book Value of Land and Development
Inventory [Line Items]
Other assets | $	$ 90,380	$ 98,939

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REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Controlled Lots (Details) $ in Thousands	Mar. 31, 2022 USD ($) lot	Dec. 31, 2021 USD ($) lot
Real Estate [Line Items]
Controlled Lots | lot	29,714	28,762
Purchase Price	$ 2,762,098	$ 2,595,258
Land Deposit	$ 238,409	$ 213,780
Land option purchase contracts
Real Estate [Line Items]
Controlled Lots | lot	7,831	8,360
Purchase Price	$ 457,796	$ 507,161
Land Deposit	$ 52,213	$ 57,554
Land banking arrangements
Real Estate [Line Items]
Controlled Lots | lot	7,117	5,731
Purchase Price	$ 1,000,881	$ 749,813
Land Deposit	$ 136,404	$ 117,721
Other controlled lots
Real Estate [Line Items]
Controlled Lots | lot	14,766	14,671
Purchase Price	$ 1,303,421	$ 1,338,284
Land Deposit	49,792	38,505
Refundable Land Deposits
Real Estate [Line Items]
Land Deposit	$ 22,500	$ 15,700

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REAL ESTATE INVENTORY AND LAND DEPOSITS - Schedule of Interest Capitalized, Incurred, Expensed and Amortized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Interest capitalized - beginning of period	$ 168,670	$ 163,780
Interest incurred and capitalized	39,729	37,719
Interest amortized to cost of home closings	(30,430)	(27,325)
Interest capitalized - end of period	$ 177,969	$ 174,174

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INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Balance Sheets of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Other assets	$ 2,340,756	$ 2,827,315
Total assets	8,517,975	8,727,777
Liabilities and owners’ equity:
Debt	3,048,373	3,302,124
Total liabilities	4,423,177	4,756,795
Owners’ equity:
Total liabilities and stockholders’ equity	8,517,975	8,727,777
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Assets
Real estate inventory	418,004	414,687
Other assets	134,890	118,990
Total assets	552,894	533,677
Liabilities and owners’ equity:
Debt	176,477	167,842
Other liabilities	23,231	16,245
Total liabilities	199,708	184,087
Owners’ equity:
TMHC	173,231	171,406
Others	179,955	178,184
Total owners’ equity	353,186	349,590
Total liabilities and stockholders’ equity	$ 552,894	$ 533,677

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INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Summarized Statements of Operations of Unconsolidated Entities Accounted by Equity Method (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of Equity Method Investments [Line Items]
Revenues	$ 1,703,124	$ 1,417,812
Costs and expenses	(1,309,996)	(1,143,371)
Net income	178,461	102,443
Equity Method Investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Revenues	30,401	49,880
Costs and expenses	(25,694)	(34,157)
Net income	4,707	15,723
TMHC’s share in income of unconsolidated entities	1,831	5,661
Distributions to TMHC from unconsolidated entities	$ 2,058	$ 10,613

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INVESTMENTS IN CONSOLIDATED AND UNCONSOLIDATED ENTITIES - Consolidated Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Assets	$ 8,517,975	$ 8,727,777
Cash and cash equivalents	569,249	832,821
Liabilities	4,423,177	4,756,795
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Cash and cash equivalents	23,100	22,300
Owned inventory	79,000	147,600
Liabilities	141,200	165,100
WLH | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	$ 260,000	$ 291,800

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ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Real estate development costs to complete	$ 46,044	$ 49,833
Compensation and employee benefits	78,849	166,272
Self-insurance and warranty reserves	140,970	141,839	$ 116,406	$ 118,116
Interest payable	39,241	48,551
Property and sales taxes payable	27,115	29,384
Other accruals	84,662	89,330
Total accrued expenses and other liabilities	$ 416,881	$ 525,209

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ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of Changes in Reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in Warranty Reserves
Reserve - beginning of period	$ 141,839	$ 118,116
Other additions to reserves	8,884	12,391
Cost of claims incurred	(12,473)	(15,865)
Changes in estimates to pre-existing reserves	2,720	1,764
Reserve - end of period	$ 140,970	$ 116,406

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DEBT - Summary of Total Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 17, 2021	Jul. 31, 2020	Feb. 10, 2020	Jun. 05, 2019	Apr. 16, 2015	Mar. 05, 2014
Debt Instrument [Line Items]
Principal	$ 3,046,062	$ 3,299,802
Unamortized Debt Issuance (Costs)/Premium	2,311	2,322
Carrying Value	3,048,373	3,302,124
Loans payable and other borrowings
Debt Instrument [Line Items]
Principal	395,400	404,386
Unamortized Debt Issuance (Costs)/Premium	0	0
Carrying Value	395,400	404,386
Mortgage warehouse borrowings
Debt Instrument [Line Items]
Principal	200,662	413,887
Unamortized Debt Issuance (Costs)/Premium	0	0
Carrying Value	200,662	413,887
Senior Notes
Debt Instrument [Line Items]
Principal	2,450,000	2,450,000
Unamortized Debt Issuance (Costs)/Premium	2,311	2,322
Carrying Value	$ 2,452,311	2,452,322
Senior Notes | 5.875% Senior Notes due 2023
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.875%						5.875%
Principal	$ 350,000	350,000
Unamortized Debt Issuance (Costs)/Premium	(591)	(733)
Carrying Value	$ 349,409	349,267
Senior Notes | 5.625% Senior Notes due 2024
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.625%							5.625%
Principal	$ 350,000	350,000
Unamortized Debt Issuance (Costs)/Premium	(1,032)	(1,166)
Carrying Value	$ 348,968	348,834
Senior Notes | 5.875% Senior Notes due 2027
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.875%					5.875%
Principal	$ 500,000	500,000
Unamortized Debt Issuance (Costs)/Premium	(4,047)	(4,243)
Carrying Value	$ 495,953	495,757
Senior Notes | 6.625% Senior Notes due 2027
Debt Instrument [Line Items]
Stated interest rate (as a percent)	6.625%				6.625%
Principal	$ 300,000	300,000
Unamortized Debt Issuance (Costs)/Premium	16,919	17,718
Carrying Value	$ 316,919	317,718
Senior Notes | 5.75% Senior Notes due 2028
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.75%
Principal	$ 450,000	450,000
Unamortized Debt Issuance (Costs)/Premium	(3,656)	(3,814)
Carrying Value	$ 446,344	446,186
Senior Notes | 5.125% Senior Notes due 2030
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.125%			5.125%
Principal	$ 500,000	500,000
Unamortized Debt Issuance (Costs)/Premium	(5,282)	(5,440)
Carrying Value	494,718	494,560
Line of Credit | Revolving Credit Facility | $800 Million Revolving Credit Facility
Debt Instrument [Line Items]
Facility Amount	800,000
Principal	0	0
Unamortized Debt Issuance (Costs)/Premium	0	0
Carrying Value	0	0
Line of Credit | Revolving Credit Facility | $100 Million Revolving Credit Facility
Debt Instrument [Line Items]
Facility Amount	100,000		$ 100,000
Principal	0	31,529
Unamortized Debt Issuance (Costs)/Premium	0	0
Carrying Value	$ 0	$ 31,529

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DEBT - 2023 Senior Notes (Details) - 5.875% Senior Notes due 2023 - Senior Notes - USD ($) $ in Millions		3 Months Ended
	Apr. 16, 2015	Mar. 31, 2022
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.875%	5.875%
Senior notes issued amount	$ 350.0
Redemption price (as a percent)	101.00%	100.00%

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DEBT - 2024 Senior Notes (Details) - 5.625% Senior Notes due 2024 - Senior Notes - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 05, 2014
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.625%	5.625%
Senior notes issued amount		$ 350.0
Redemption price (as a percent)	100.00%

XML

DEBT - 2027 Senior Notes (Details) - Senior Notes - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Feb. 10, 2020	Jun. 05, 2019
5.875% Senior Notes due 2027
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.875%		5.875%
Senior notes issued amount			$ 500.0
Redemption price (as a percent)	100.00%
6.625% Senior Notes due 2027
Debt Instrument [Line Items]
Stated interest rate (as a percent)	6.625%	6.625%
Senior notes issued amount		$ 290.4
Redemption price (as a percent)	106.625%
Redemption not to exceed aggregate principal amount (as a percent)	40.00%
6.625% Senior Notes due 2027 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percent)	100.00%
6.625% Senior Notes due 2027 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percent)	103.313%
6.625% Senior Notes due 2027 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percent)	102.208%
6.625% Senior Notes due 2027 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percent)	101.104%
6.625% Senior Notes due 2027 | Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percent)	100.00%
6.625% Senior Notes due 2027 issued by TM Communities
Debt Instrument [Line Items]
Stated interest rate (as a percent)		6.625%
6.625% Senior Notes due 2027 issued by WLH
Debt Instrument [Line Items]
Stated interest rate (as a percent)		6.625%
Senior notes issued amount		$ 9.6

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DEBT - 2028 Senior Notes (Details) - Senior Notes - 5.75% Notes due 2028 - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Aug. 01, 2019
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.75%	5.75%
Senior notes issued amount		$ 450.0
Redemption price (as a percent)	100.00%

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DEBT - 2030 Senior Notes and Redemption of the 2023 Senior Notes and Redemption of the 2025 Senior Notes (Details) - Senior Notes - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2020	Jul. 31, 2020
5.125% Senior Notes due 2030
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.125%			5.125%
Senior notes issued amount				$ 500.0
Redemption price (as a percent)	100.00%
6.00% Senior Notes due 2023
Debt Instrument [Line Items]
Stated interest rate (as a percent)				6.00%
Redemption amount			$ 83.1	$ 266.9
Redemption price (as a percent)	100.00%
5.875% Senior Notes due 2025
Debt Instrument [Line Items]
Stated interest rate (as a percent)				5.875%
Redemption amount			$ 103.8	$ 333.1
Redemption price (as a percent)	102.938%
Senior Notes Due 2023 and 2025
Debt Instrument [Line Items]
Loss on extinguishment of debt, net		$ 10.2
6.00% Senior Notes Due 2023
Debt Instrument [Line Items]
Make-whole premium percentage	0.11%
Make-whole premium basis percentage	0.50%

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DEBT - Revolving Credit Facility (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022 USD ($) fiscalQuarter equityCureRight	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Sep. 17, 2021 USD ($)
Debt Instrument [Line Items]
Borrowings on mortgage warehouse facilities	$ 562,024,000	$ 697,398,000
Letters of credit utilized	1,200,000,000		$ 1,200,000,000
Revolving credit facility borrowings	0		31,529,000
Revolving Credit Facility | $800 Million Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity on line of credit	800,000,000
Borrowings on mortgage warehouse facilities	0		0
Unamortized debt issuance costs	3,200,000		1,100,000
Letters of credit utilized	52,900,000		58,700,000
Line of credit available	$ 747,100,000		741,300,000
Maximum capitalization ratio	60.00%
Minimum net worth required	$ 2,500,000,000
Revolving credit facility borrowings	$ 40,000,000
Number of consecutive fiscal quarters in which equity cure right can be used twice (in fiscal quarter) | fiscalQuarter	4
Maximum number of times equity cure right can be exercised | equityCureRight	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			$ 100,000,000
Borrowings on mortgage warehouse facilities	0		31,500,000
Unamortized debt issuance costs	600,000		700,000
Letters of credit utilized	0
Line of credit available	$ 100,000,000		$ 68,500,000
Maximum capitalization ratio	60.00%
Minimum net worth required	$ 2,500,000,000
Revolving credit facility borrowings	$ 40,000,000
Maximum consecutive days for financial covenant	5 days
Number of consecutive fiscal quarters in which equity cure right can be used twice (in fiscal quarter) | fiscalQuarter	4
Maximum number of times equity cure right can be exercised | equityCureRight	5

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DEBT - Summary of Mortgage Warehouse Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Amount Drawn	$ 200,662	$ 413,887
Secured Debt
Line of Credit Facility [Line Items]
Amount Drawn	200,662	413,887
Facility Amount	410,000	760,000
Mortgage borrowings outstanding, collateralized amount	229,700	467,500
Collateralized amount of restricted short-term investments	1,600	3,500
Secured Debt | Warehouse A
Line of Credit Facility [Line Items]
Amount Drawn	2,553	12
Facility Amount	$ 10,000	$ 10,000
Secured Debt | Warehouse A | LIBOR
Line of Credit Facility [Line Items]
Interest Rate	1.75%	1.75%
Secured Debt | Warehouse B
Line of Credit Facility [Line Items]
Amount Drawn	$ 21,618	$ 86,409
Facility Amount	$ 75,000	$ 150,000
Secured Debt | Warehouse B | LIBOR
Line of Credit Facility [Line Items]
Interest Rate	1.75%	1.75%
Secured Debt | Warehouse C
Line of Credit Facility [Line Items]
Amount Drawn	$ 69,898	$ 116,601
Facility Amount	$ 125,000	$ 250,000
Secured Debt | Warehouse C | LIBOR
Line of Credit Facility [Line Items]
Interest Rate	2.05%	2.05%
Warehouse D | Secured Debt
Line of Credit Facility [Line Items]
Amount Drawn	$ 30,556	$ 105,065
Facility Amount	$ 100,000	$ 150,000
Warehouse D | Secured Debt | LIBOR
Line of Credit Facility [Line Items]
Interest Rate	1.65%	1.65%
Warehouse E | Secured Debt
Line of Credit Facility [Line Items]
Amount Drawn	$ 76,037	$ 105,800
Facility Amount	$ 100,000	$ 200,000
Warehouse E | Secured Debt | LIBOR
Line of Credit Facility [Line Items]
Interest Rate	1.50%	1.50%

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DEBT - Loans Payable and Other Borrowings (Details) - Loans Payables	Mar. 31, 2022	Dec. 31, 2021
Minimum
Debt Instrument [Line Items]
Stated interest rate (as a percent)	0.00%	0.00%
Maximum
Debt Instrument [Line Items]
Stated interest rate (as a percent)	8.00%	8.00%

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FAIR VALUE DISCLOSURES - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 17, 2021	Jul. 31, 2020	Feb. 10, 2020	Jun. 05, 2019	Apr. 16, 2015	Mar. 05, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
IRLCs	$ 5,501	$ 2,110
Senior Notes | 5.875% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (as a percent)	5.875%						5.875%
Senior Notes | 5.625% Senior Notes due 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (as a percent)	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]
Stated interest rate (as a percent)	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]
Stated interest rate (as a percent)	6.625%				6.625%
Senior Notes | 5.75% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (as a percent)	5.75%
Senior Notes | 5.125% Senior Notes due 2030
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (as a percent)	5.125%			5.125%
Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Facility Amount	$ 800,000
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		$ 100,000
Level 2 | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	229,651	467,534
Level 2 | Carrying Value | MBSs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MBSs	5,080	(449)
Level 2 | Carrying Value | Mortgage warehouse borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	200,662	413,887
Level 2 | Carrying Value | Loans payable and other borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	395,400	404,386
Level 2 | Carrying Value | Senior Notes | 5.875% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	349,409	349,267
Level 2 | Carrying Value | Senior Notes | 5.625% Senior Notes due 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	348,968	348,834
Level 2 | Carrying Value | Senior Notes | 5.875% Senior Notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	495,953	495,757
Level 2 | Carrying Value | Senior Notes | 6.625% Senior Notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	316,919	317,718
Level 2 | Carrying Value | Senior Notes | 5.75% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	446,344	446,186
Level 2 | Carrying Value | Senior Notes | 5.125% Senior Notes due 2030
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	494,718	494,560
Level 2 | Carrying Value | Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	0	0
Level 2 | Carrying Value | Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	0	31,529
Level 2 | Estimated Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	229,651	467,534
Level 2 | Estimated Fair Value | MBSs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
MBSs	5,080	(449)
Level 2 | Estimated Fair Value | Mortgage warehouse borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	200,662	413,887
Level 2 | Estimated Fair Value | Loans payable and other borrowings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	395,400	404,386
Level 2 | Estimated Fair Value | Senior Notes | 5.875% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	354,830	365,890
Level 2 | Estimated Fair Value | Senior Notes | 5.625% Senior Notes due 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	360,150	372,750
Level 2 | Estimated Fair Value | Senior Notes | 5.875% Senior Notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	520,000	560,000
Level 2 | Estimated Fair Value | Senior Notes | 6.625% Senior Notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	308,250	315,750
Level 2 | Estimated Fair Value | Senior Notes | 5.75% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	463,500	502,875
Level 2 | Estimated Fair Value | Senior Notes | 5.125% Senior Notes due 2030
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	490,000	550,000
Level 2 | Estimated Fair Value | Line of Credit | $800 Million Revolving Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	0	0
Level 2 | Estimated Fair Value | Line of Credit | $100 Million Revolving Credit Facility | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	0	31,529
Level 3 | Carrying Value | IRLCs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
IRLCs	420	2,110
Level 3 | Estimated Fair Value | IRLCs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
IRLCs	420	2,110
Level 1 | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Security Investment	5,030	6,400
Level 1 | Estimated Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Security Investment	$ 5,030	$ 6,400

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INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	23.40%	22.20%
Unrecognized tax benefits that would affect effective tax rate	$ 0		$ 0

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STOCKHOLDERS’ EQUITY - Narrative (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity [Abstract]
Common stock, shares authorized (in shares)	400,000,000
Common stock, par value (in dollars per share)	$ 0.00001
Preferred stock, shares authorized (in shares)	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.00001
Repurchase of common stock (in shares)	1,948,187	1,447,309

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STOCKHOLDERS’ EQUITY - Stock Repurchase Program (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock Repurchase Program, Increase (Decrease) [Roll Forward]
Amount available for repurchase - beginning of period	$ 230,413	$ 86,831
Amount repurchased	(58,029)	(38,418)
Amount available for repurchase — end of period	$ 172,384	$ 48,413

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STOCK BASED COMPENSATION - Summary of Restricted Stock Unit, Stock Options, and Stock Warrants Activity (Details)	Mar. 31, 2022 $ / shares shares
Restricted Stock Units and Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards other than options, balance (in shares) | shares	1,641,411
Weighted Average Grant Date Fair Value
Stock awards other than options, outstanding, balance (in dollars per share) | $ / shares	$ 27.28
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, balance (in shares) | shares	3,582,800
Weighted Average Grant Date Fair Value
Stock Options, outstanding balance (in dollars per share) | $ / shares	$ 23.10

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STOCK BASED COMPENSATION - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation	$ 6,863	$ 5,682
Restricted stock units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation	5,780	4,748
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation	$ 1,083	$ 934

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STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Aggregate unamortized outstanding stock based compensation	$ 43.2	$ 26.5

XML

REPORTING SEGMENTS - Narrative (Details)	3 Months Ended
	Mar. 31, 2022 segment
Segment Reporting [Abstract]
Number of reporting segments included in operating component	3

XML

REPORTING SEGMENTS - Reconciliation to Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	$ 1,703,124	$ 1,417,812
Gross margin	393,128	274,441
Selling, general and administrative expenses	(157,265)	(147,505)
Equity in (loss)/income of unconsolidated entities	1,831	5,661
Interest and other income/(expense), net	(4,794)	(856)
Income before income taxes	232,900	131,741
Operating Segments | East
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	525,121	453,362
Gross margin	125,691	85,067
Selling, general and administrative expenses	(40,326)	(38,598)
Equity in (loss)/income of unconsolidated entities	0	0
Interest and other income/(expense), net	(432)	42
Income before income taxes	84,933	46,511
Operating Segments | Central
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	370,735	322,612
Gross margin	74,008	65,178
Selling, general and administrative expenses	(29,440)	(28,558)
Equity in (loss)/income of unconsolidated entities	85	(64)
Interest and other income/(expense), net	(1,860)	(373)
Income before income taxes	42,793	36,183
Operating Segments | West
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	770,210	597,730
Gross margin	181,531	104,438
Selling, general and administrative expenses	(43,519)	(41,554)
Equity in (loss)/income of unconsolidated entities	(312)	1,992
Interest and other income/(expense), net	(1,966)	(108)
Income before income taxes	135,734	64,768
Operating Segments | Financial Services
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	35,199	44,065
Gross margin	10,985	20,066
Selling, general and administrative expenses	0	0
Equity in (loss)/income of unconsolidated entities	2,058	3,743
Interest and other income/(expense), net	0	0
Income before income taxes	13,043	23,809
Corporate and Unallocated
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total revenue	1,859	43
Gross margin	913	(308)
Selling, general and administrative expenses	(43,980)	(38,795)
Equity in (loss)/income of unconsolidated entities	0	(10)
Interest and other income/(expense), net	(536)	(417)
Income before income taxes	$ (43,603)	$ (39,530)

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REPORTING SEGMENTS - Summary of Assets by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	$ 6,003,988	$ 5,729,056
Investments in unconsolidated entities	173,231	171,406
Other assets	2,340,756	2,827,315
Total assets	8,517,975	8,727,777
Operating Segments | East
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	1,905,120	1,781,948
Investments in unconsolidated entities	0	0
Other assets	153,946	196,126
Total assets	2,059,066	1,978,074
Operating Segments | Central
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	1,389,070	1,282,024
Investments in unconsolidated entities	87,737	87,600
Other assets	198,151	221,906
Total assets	1,674,958	1,591,530
Operating Segments | West
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	2,709,798	2,665,084
Investments in unconsolidated entities	81,219	79,531
Other assets	550,998	588,520
Total assets	3,342,015	3,333,135
Operating Segments | Financial Services
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	0	0
Investments in unconsolidated entities	4,275	4,275
Other assets	334,568	559,233
Total assets	338,843	563,508
Corporate and Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate inventory and land deposits	0	0
Investments in unconsolidated entities	0	0
Other assets	1,103,093	1,261,530
Total assets	$ 1,103,093	$ 1,261,530

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Nov. 02, 2021
Loss Contingencies [Line Items]
Outstanding letters of credit and surety bonds	$ 1,200,000,000		$ 1,200,000,000
Aggregate purchase price	2,762,098,000		2,595,258,000
Legal accruals	23,100,000		21,700,000
Lease liabilities	94,405,000		96,172,000
Operating lease expense	6,900,000	$ 4,000,000
Land Option Purchase Contracts and Land Banking Arrangements
Loss Contingencies [Line Items]
Aggregate 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

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MORTGAGE HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Total commitments to extend credit	$ 417.7	$ 173.7
Minimum
Derivative [Line Items]
Derivative term	30 days
Maximum
Derivative [Line Items]
Derivative term	60 days

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MORTGAGE HEDGING ACTIVITIES - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value	$ 5,500	$ 1,661
IRLCs
Derivative [Line Items]
Fair Value	420	2,110
Notional Amount	386,707	158,299
MBSs
Derivative [Line Items]
Fair Value	5,080	(449)
Notional Amount	$ 404,000	$ 407,000