PULTEGROUP, INC.TABLE OF CONTENTS ItemNo. We offer a broad product line to meet the needs of homebuyers in our targeted markets. Over our history, we have delivered nearly 750,000 homes. Accordingly, we remain active in our pursuit of new land investment. Our contracts may also include other contingencies, such as the sale of an existing home. Our employees are not represented by any union. The Tax Act also increased the standard deduction for individuals. Competition for homebuyers could reduce our deliveries or decrease our profitability. The U.S. housing industry is highly competitive. The homes we sell are built by employees of subcontractors and other contract parties. The capital and credit markets can experience significant volatility. We have significant intangible assets related to business combinations. ITEM 1B. UNRESOLVED STAFF COMMENTSNone. Net new orders increased 22%, which is attributable to all of our markets. The decrease in average selling prices was mixed among markets. In June 2020, we repaid the full outstanding balance of $700.0 million. As of December 31, 2020, we were in compliance with all covenants. Little to no estimation is involved in recognizing such revenues. Mortgage servicing fees represent fees earned for servicing loans for various investors. We capitalize interest cost into homebuilding inventories. Interest expense is allocated over the period based on the timing of home closings. Sales commissions are classified within selling, general, and administrative expenses. We conduct our evaluation by considering all available positive and negative evidence. Significant judgment is required to evaluate uncertain tax positions. There were no material adjustments to individual claims. Estimates of such amounts are recorded when recovery is considered probable. The acquisition also resulted in $48.7 million of tax deductible goodwill. Certain of these entities sell land to us. Such tradenames are generally being amortized over 20-year lives. Maintenance and repair costs are expensed as incurred. Refer to "New accounting pronouncements" within Note 1 for further discussion. Land held for sale is recorded at the lower of cost or fair value less costs to sell. However, we retain a significant portion of the overall risk for such claims. This strategy results in owning the servicing rights for only a short period of time. We establish reserves for this exposure at the time the sale is recorded. Subsequent payments received are applied according to the contractual terms of the loan. Counterparties associated with these assets are generally highly rated. The adoption of ASU 2016-02 had no impact on retained earnings. We adopted ASC 326 using the modified retrospective transition method. ASU 2019-12 is effective for the Company beginning January 1, 2021. Impairments for all other communities in 2018 totaled $11.8 million. See Note 2 for additional discussion of these charges. RSU holders receive cash dividends during the vesting period. Actual warranty costs in the future could differ from the current estimates. We believe that our audits provide a reasonable basis for our opinion. Holders of Common Shares are not entitled to cumulative voting rights. X/_B:/^%"/^A-\\/_P#@K@_^)H_X2C5_ M^A$\\0?\\ ?_ 4_P */^$=T7_H#V\'_ ("I_A0!HT5G M?\\([HO\\ T![#_P ! 4_PH_P"$=T7_ * ]A_X"I_A0!HT5G?\\ ".Z+_P! P_\\!4_PH_X1W1?^@/8?^ J?X4 :-%9W M_". MO2V(E*VBW+7A3PWJ7Q.\\1)XS\\;1%-+C/_$LTUONE\'-$ &CZ .@%JG^%+_ ,([HO\\ T
