PULTEGROUP, INC. (NYSE:PHM) Files An 8-K Material ImpairmentsITEM 2.06 MATERIAL IMPAIRMENTS
PULTEGROUP, INC. (NYSE:PHM) Files An 8-K Material Impairments
On May 3, 2017, as further described in the press release discussed in Item 9.01 below and attached to this report, PulteGroup, Inc. (the “Company”) committed to a plan to sell select non-core and underutilized land parcels following a strategic review of its land portfolio. The Company determined that it will sell certain currently inactive land parcels, representing approximately 4,600 lots, and work to monetize two small communities representing an additional 400 lots. These land parcels are located in diverse geographic areas and no longer fit into the Company’s strategic plans. The land parcels identified for sale include: land requiring significant additional development spend that would not yield suitable returns; land in excess of near-term need; and land entitled for certain product types that are inconsistent with the Company’s primary offerings. Actions required to complete the planned sales have been or will soon be initiated, but the timing of completing the dispositions is unknown. The Company will seek to redeploy the proceeds and related tax benefits from these dispositions into higher returning projects.
As a consequence of its change in strategy with respect to the future use of these land parcels, the Company expects to recognize pretax impairment charges in the range of $95 million to $125 million in the second quarter ending June 30, 2017. The estimated fair values of these land parcels were generally based on comparisons to market comparable transactions, letters of intent, estimated future net cash flows discounted for inherent risk associated with each underlying asset, or similar information. The Company expects that the cash outflows, if any, required to complete the disposition of these assets will not be material.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 Press release dated May 8, 2017.
About PULTEGROUP, INC. (NYSE:PHM)
PulteGroup, Inc. is a homebuilder operating in the United States. The Company, through Pulte Mortgage LLC, is engaged in mortgage banking operations and title operations. The Company’s subsidiaries are also engaged in the homebuilding business. The Company operates through Homebuilding and Financial Services segments. The Company’s homebuilding business, includes the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on that land. The Company’s brands include Pulte Homes, Del Webb and Centex. The Company, through its brands, offer a range of home designs, including single-family detached, townhouses, condominiums and duplexes. Its Homebuilding Operations segment operates through six geographical segments: Northeast, Southeast, Florida, Midwest, Texas and West. The Company conducts its Financial Services operations, which includes mortgage and title operations, through Pulte Mortgage LLC and other subsidiaries. PULTEGROUP, INC. (NYSE:PHM) Recent Trading Information
PULTEGROUP, INC. (NYSE:PHM) closed its last trading session down -0.09 at 22.25 with 5,997,450 shares trading hands.
PulteGroup, Inc. is a homebuilder operating in the United States. The Company, through Pulte Mortgage LLC, is engaged in mortgage banking operations and title operations. The Company’s subsidiaries are also engaged in the homebuilding business. The Company operates through Homebuilding and Financial Services segments. The Company’s homebuilding business, includes the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on that land. The Company’s brands include Pulte Homes, Del Webb and Centex. The Company, through its brands, offer a range of home designs, including single-family detached, townhouses, condominiums and duplexes. Its Homebuilding Operations segment operates through six geographical segments: Northeast, Southeast, Florida, Midwest, Texas and West. The Company conducts its Financial Services operations, which includes mortgage and title operations, through Pulte Mortgage LLC and other subsidiaries. PULTEGROUP, INC. (NYSE:PHM) Recent Trading Information
PULTEGROUP, INC. (NYSE:PHM) closed its last trading session down -0.09 at 22.25 with 5,997,450 shares trading hands.