Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 13, 2019 | Mar. 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FOR | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Entity Registrant Name | FORESTAR GROUP INC. | ||
Entity Central Index Key | 0001406587 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 48,006,672 | ||
Entity Public Float | $ 180,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | $ 382.8 | $ 318.8 |
Restricted cash | 0 | 16.2 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 382.8 | 335 |
Real estate | 1,028.9 | 498 |
Investment in unconsolidated ventures | 7.3 | 11.7 |
Income taxes receivable | 3.2 | 4.4 |
Property and equipment, net | 2.4 | 1.7 |
Deferred tax asset, net | 17.4 | 26.9 |
Other assets | 13.7 | 15.4 |
Total assets | 1,455.7 | 893.1 |
LIABILITIES | ||
Accounts payable | 16.8 | 7.9 |
Earnest money deposits on sales contracts | 89.9 | 49.4 |
Accrued expenses and other liabilities | 79.6 | 49.6 |
Debt | 460.5 | 111.7 |
Total liabilities | 646.8 | 218.6 |
Forestar Group Inc. shareholders’ equity: | ||
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 47,997,366 and 41,939,403 shares issued and outstanding at September 30, 2019 and 2018, respectively | 48 | 41.9 |
Additional paid-in capital | 602.2 | 506.3 |
Retained earnings | 158.1 | 125.1 |
Stockholders' equity | 808.3 | 673.3 |
Noncontrolling interests | 0.6 | 1.2 |
Total equity | 808.9 | 674.5 |
Total liabilities and equity | $ 1,455.7 | $ 893.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 47,997,366 | 41,939,403 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | $ 78.3 | $ 83.5 | $ 428.3 | $ 114.3 |
Cost of Goods and Services Sold | 49.5 | 90.1 | 362.7 | 112.6 | |||||||
Selling, General and Administrative Expense | 19.4 | 51.2 | 28.9 | 75.3 | |||||||
Equity in earnings of unconsolidated ventures | (4.8) | (10.9) | (0.5) | (17.8) | |||||||
GAIN ON SALE OF ASSETS | (27.8) | (113.4) | (3) | (113.4) | |||||||
Interest expense | (3.7) | (6.4) | 0 | (8.5) | |||||||
Loss on extinguishment of debt | 0 | 0 | 0.6 | ||||||||
Interest and other income | (6.4) | (2.4) | (5.5) | (3.6) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 16 | 8.4 | 16.4 | 4.9 | 29.6 | 10.4 | 4.7 | 44.7 | 62.5 | 45.7 | 52.1 |
Income tax expense (benefit) | (3.4) | (1.5) | (3.6) | (1) | 25.6 | (0.1) | (0.1) | 25.3 | (33.4) | (9.4) | (45.8) |
NET INCOME FROM CONTINUING OPERATIONS | 70 | 29.1 | 36.3 | 6.3 | |||||||
Income (loss) discontinued operations, net of taxes | 0 | 38.8 | 0 | 46 | |||||||
Net income | 12.6 | 6.9 | 12.8 | 3.9 | 55.2 | 10.3 | 4.6 | 70 | 67.9 | 36.3 | 52.3 |
Net Income (Loss) Attributable to Noncontrolling Interest | (0.1) | 0 | 2.7 | 0.6 | 0.3 | 0.9 | 0.1 | 1.2 | 0.1 | 3.3 | 2 |
Net income attributable to Forestar Group Inc. | $ 12.7 | $ 6.9 | $ 10.1 | $ 3.3 | $ 54.9 | $ 9.4 | $ 4.5 | $ 68.8 | $ 67.8 | $ 33 | $ 50.3 |
Weighted Average Common Shares Outstanding: | |||||||||||
Basic (shares) | 41,938,987 | 42,200,000 | 41,974,429 | 42,142,690 | |||||||
Diluted (shares) | 41,969,056 | 42,500,000 | 42,005,141 | 42,381,023 | |||||||
Net Income per Basic Share: | |||||||||||
Continuing operations, basic (usd per share) | $ 1.64 | $ 0.69 | $ 0.79 | $ 0.10 | |||||||
Discontinued operations, basic (usd per share) | 0 | 0.92 | 0 | 1.09 | |||||||
Basic (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | 1.64 | 1.61 | 0.79 | 1.19 |
Net Income per Diluted Share: | |||||||||||
Continuing operations, diluted (usd per share) | 1.64 | 0.68 | 0.79 | 0.10 | |||||||
Discontinued operations | 0 | 0.91 | 0 | 1.09 | |||||||
Diluted (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | $ 1.64 | $ 1.59 | $ 0.79 | $ 1.19 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Noncontrolling Interest |
Common Stock, Shares, Outstanding | 44,803,603 | |||||
Treasury Stock, Shares | 3,187,253 | |||||
Beginning Balances at Dec. 31, 2016 | $ 562,100 | $ 44,800 | $ 553,000 | $ 12,600 | $ (49,800) | $ 1,500 |
Net income | 52,300 | 0 | 0 | 50,300 | 0 | |
Proceeds from Issuance of Common Stock | 0 | |||||
Distributions to noncontrolling interests | (2,100) | 0 | 0 | 0 | 0 | 2,100 |
Issuances of common stock, Value | 0 | 0 | (5,300) | 0 | (5,300) | 0 |
Shares withheld for payroll taxes, Value | (1,000) | 0 | 0 | 0 | 1,000 | 0 |
Treasury Stock, Retired, Cost Method, Amount | 0 | (2,900) | (35,000) | (6,600) | 44,500 | 0 |
Stock-based compensation expense | 6,500 | 0 | 6,500 | 0 | 0 | 0 |
Settlement of equity awards | (12,800) | 0 | (12,800) | 0 | 0 | 0 |
Stock Issued During Period, Value, Treasury Stock Reissued | (600) | 0 | (400) | 0 | (1,000) | 0 |
Ending Balances at Dec. 31, 2017 | $ 605,600 | $ 41,900 | 506,000 | 56,300 | 0 | 1,400 |
Issuances of common stock under employee benefit plans, Shares | (335,261) | |||||
Stock Issued During Period, Shares, Treasury Stock Reissued | (63,195) | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 75,870 | |||||
Treasury Stock, Shares, Retired | (2,864,667) | |||||
Common Stock, Shares, Outstanding | 41,938,936 | |||||
Net income | $ 70,000 | $ 0 | 0 | 68,800 | 0 | |
Proceeds from Issuance of Common Stock | 0 | |||||
Distributions to noncontrolling interests | (1,400) | 0 | 0 | 0 | 0 | 1,400 |
Issuances of common stock, Value | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 300 | 0 | 300 | 0 | 0 | 0 |
Ending Balances at Sep. 30, 2018 | 674,500 | $ 41,900 | 506,300 | 125,100 | 0 | 1,200 |
Issuances of common stock under employee benefit plans, Shares | (467) | |||||
Common Stock, Shares, Outstanding | 41,939,403 | |||||
Net income | 36,300 | $ 0 | 0 | 33,000 | 0 | |
Proceeds from Issuance of Common Stock | 100,700 | 6,000 | 94,700 | 0 | 0 | 0 |
Distributions to noncontrolling interests | (3,900) | 0 | 0 | 0 | 0 | 3,900 |
Issuances of common stock, Value | 0 | (100) | 100 | 0 | 0 | 0 |
Stock-based compensation expense | 1,300 | 0 | 1,300 | 0 | 0 | 0 |
Ending Balances at Sep. 30, 2019 | $ 808,900 | $ 48,000 | $ 602,200 | $ 158,100 | $ 0 | $ 600 |
Issuances of common stock under employee benefit plans, Shares | (20,463) | |||||
Shares Issued During Period, New Issues | 6,037,500 | |||||
Common Stock, Shares, Outstanding | 47,997,366 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Consolidated net income | $ 70,000,000 | $ 36,300,000 | $ 52,300,000 |
Adjustments: | |||
Depreciation and amortization | 3,900,000 | 6,700,000 | 5,500,000 |
Increase (Decrease) in Deferred Income Taxes | (24,800,000) | 9,500,000 | (1,700,000) |
Equity in earnings of unconsolidated ventures | (4,800,000) | (500,000) | (17,800,000) |
Distributions of earnings of unconsolidated ventures | 3,500,000 | 4,900,000 | 23,000,000 |
Stock-based compensation expense | 300,000 | 1,300,000 | 6,600,000 |
Asset impairments | 300,000 | 1,300,000 | 47,200,000 |
Loss on extinguishment of debt | 0 | 0 | 600,000 |
Gain (Loss) on Disposition of Assets | 27,800,000 | 3,000,000 | 113,400,000 |
Other | (900,000) | (100,000) | (800,000) |
Changes in operating assets and liabilities: | |||
Increase (Decrease) in Inventories | (361,100,000) | (531,700,000) | (17,700,000) |
Increase (Decrease) in Other Operating Assets | (1,600,000) | 300,000 | 2,300,000 |
Increase (decrease) in accounts payable and other accrued liabilities | 18,400,000 | 41,900,000 | (7,800,000) |
Earnest money deposits on sales contracts | 37,500,000 | 40,500,000 | 600,000 |
Decrease in income taxes receivable | 2,300,000 | 1,200,000 | 4,200,000 |
Net cash used in operating activities | (283,000,000) | (391,200,000) | (15,300,000) |
INVESTING ACTIVITIES | |||
Property, equipment, software and other | (100,000) | (900,000) | (100,000) |
Oil and gas properties and equipment | 0 | 0 | (2,400,000) |
Investment in unconsolidated ventures | 0 | 0 | (4,500,000) |
Proceeds from sale of assets | 258,300,000 | 0 | 130,100,000 |
Return of investment in unconsolidated ventures | 800,000 | 100,000 | 11,400,000 |
Net cash (used in) provided by investing activities | 259,000,000 | (800,000) | 134,500,000 |
FINANCING ACTIVITIES | |||
Proceeds from Issuance of Common Stock | 0 | 100,700,000 | 0 |
Payments of debt | (500,000) | (85,000,000) | (10,000,000) |
Additions to debt | 200,000 | 435,000,000 | 3,000,000 |
Deferred financing fees | (2,300,000) | (6,900,000) | (300,000) |
Distributions to noncontrolling interests, net | (1,400,000) | (3,900,000) | (2,100,000) |
Settlement of equity awards | 0 | (100,000) | (13,100,000) |
Net cash provided by (used in) financing activities | (4,000,000) | 439,800,000 | (22,500,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (28,000,000) | 47,800,000 | 96,700,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 335,000,000 | 382,800,000 | 363,000,000 |
Cash paid during the year for: | |||
Interest paid, net of amounts capitalized | 900,000 | 0 | 3,300,000 |
Income taxes paid (refunded), net | $ (3,400,000) | $ (1,700,000) | $ (2,700,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. The Company divested substantially all of its oil and gas working interest properties in 2016 and completed the sale of all oil and gas assets and related entities in 2017. As a result of selling the entities, the Company recognized a tax benefit of $46.0 million during fiscal 2017 that was recorded as income from discontinued operations. There was no activity related to these discontinued operations during the nine months ended September 30, 2018 or in fiscal 2019. In October 2017 , Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton (the Merger). Immediately following the Merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the Merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement, and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. At September 30, 2019 , D.R. Horton owned approximately 66% of the Company's outstanding common stock. Change in Fiscal Year Following the Merger, the Company changed its fiscal year-end from December 31 to September 30, effective January 1, 2018. This change aligned Forestar's fiscal year-end reporting calendar with D.R. Horton. The Company's results of operations, cash flows, and all transactions impacting stockholders' equity presented in this Form 10-K are for the fiscal year ended September 30, 2019 , the nine months ended September 30, 2018 and the fiscal year ended December 31, 2017 unless otherwise noted. This Form 10-K also includes an unaudited statement of operations for the comparable stub period of January 1, 2017 to September 30, 2017 (see Note 17 — Transition Period Comparative Data ). Changes in Presentation and Reclassifications Certain items have been reclassified in the prior year financial statements to conform to the presentation and classifications used in the current year. Receivables, prepaid expenses, land purchase contract deposits, and intangible assets have been reclassified to other assets in the prior year consolidated balance sheet. Accrued employee compensation and benefits, accrued property taxes, accrued interest, other accrued expenses and other liabilities have been reclassified to accrued expenses and other liabilities in the prior year consolidated balance sheet. Other operating expense and general and administrative expense have been combined into one line item which is titled selling, general and administrative expense in the prior year consolidated statements of operations. In addition, certain items have been reclassified from selling, general and administrative expense to cost of sales in the prior year statements of operations to conform to classifications used in the current year. The Company has reclassified the change in earnest money deposits in the prior year statements of cash flows from change in accounts payable and other accrued liabilities to conform to the classifications used in the current year. The Company has reclassified real estate cost of sales, real estate development and acquisition expenditures and reimbursements from utility and improvement districts to change in real estate in the prior year statements of cash flows to conform to classifications used in the current year. The Company has reclassified proceeds from land and lot closings held for the Company’s benefit at title companies in the prior year consolidated balance sheet from receivables to cash and cash equivalents to conform to the classification used in the current year. These reclassifications had no effect on the Company's consolidated operating results, balance sheet or cash flows. In connection with the Company's adoption of Accounting Standards Update (ASU) 2016-18 on October 1, 2018, restricted cash is included with cash and cash equivalents when reconciling beginning and ending cash amounts in the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current year presentation, resulting in a decrease in cash provided by financing activities of $23.8 million in the nine months ended September 30, 2018 and a decrease in cash used in financing activities of $39.8 million in fiscal 2017 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Strategic Asset Sale In February 2018 , the Company entered into and closed on a Purchase and Sale Agreement with Starwood Land, L.P. (Starwood) to sell 24 legacy projects for $232.0 million which generated $217.5 million in net proceeds. This strategic asset sale included projects owned both directly and indirectly through ventures and consisted of approximately 750 developed and under development lots, over 4,000 future undeveloped lots, 730 unentitled acres in California, an interest in one multifamily operating property and a multifamily development site. Adoption of New Accounting Standards On October 1, 2018, the Company adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" (ASC 606), which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Results for the reporting period beginning on October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. Under ASC 606, the Company's performance obligations are typically satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. As of October 1, 2018, the Company established contract liabilities of $6.4 million related to its remaining unsatisfied performance obligations at the time of adoption of ASC 606. There was no impact to the amount or timing of revenues recognized as a result of applying ASC 606 during fiscal 2019 , and there have not been significant changes to the Company’s business processes, systems, or internal controls as a result of implementing the standard. A summary of items impacted as the result of adopting ASC 606 follows: As of September 30, 2019 As Reported Impact of Adoption As Adjusted (In millions) Real estate $ 1,028.9 $ 2.1 $ 1,026.8 Contract liabilities 2.5 2.5 — Deferred income 9.3 (0.4 ) 9.7 In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows - Restricted Cash,” which requires amounts generally described as restricted cash be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company adopted the guidance as of October 1, 2018 on a retrospective basis and made the required changes to its statements of cash flows as described in the “Changes in Presentation and Reclassifications” section above. Revenue Recognition Real estate revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon land or lots, is generally satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. Cash and Cash Equivalents Cash and cash equivalents include cash, other short-term instruments with original maturities of three months or less and proceeds from land and lot closings held for the Company’s benefit at title companies. Real Estate Real estate includes the costs of direct land and lot acquisition, land development, capitalized interest, and direct overhead costs incurred during land development. All indirect overhead costs, such as compensation of management personnel and insurance costs are charged to selling, general and administrative expense as incurred. Land and development costs are typically allocated to individual residential lots based on the relative sales value of the lot. Cost of sales includes applicable land and lot acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the project. Any changes to the estimated total development costs subsequent to the initial lot sales are generally allocated to the remaining lots. The Company receives earnest money deposits from homebuilders for purchases of developed lots. These earnest money deposits are typically released to the homebuilders as lots are sold. Earnest money deposits from D.R. Horton of $88.7 million and $45.3 million at September 30, 2019 and 2018 , respectively, are subject to mortgages which are secured by the real estate under contract with D.R. Horton. These mortgages expire when the earnest money is released to D.R. Horton as lots are sold. The Company had approximately 12,800 lots under contract to sell to D.R. Horton for a remaining purchase price of $953.8 million at September 30, 2019 . The Company had approximately 5,500 lots under contract to sell to D.R. Horton for a remaining purchase price of $522.2 million at September 30, 2018 . The Company has agreements with certain utility or improvement districts to convey water, sewer and other infrastructure-related assets it has constructed in connection with projects within their jurisdiction and receive reimbursements for the cost of these improvements. The amount of reimbursements for these improvements are defined by the district and are based on the allowable costs of the improvements. The transfer is consummated and the Company generally receives payment when the districts have a sufficient tax base to support funding of their bonds. The cost incurred by the Company in constructing these improvements, net of the amount expected to be collected in the future, is included in real estate. The Company reviews real estate assets held for use for impairment when events or circumstances indicate that their carrying value may not be recoverable. Impairment exists if the carrying amount of the asset is not recoverable from the undiscounted cash flows expected from its use and eventual disposition. The amount of the impairment loss is determined by comparing the carrying value of the asset to its estimated fair value, which is generally determined based on the present value of future cash flows expected from the sale of the asset. Real estate asset impairment charges were $0.8 million , $0.3 million and $3.4 million in fiscal 2019 , the nine months ended September 30, 2018 and fiscal 2017 , respectively, and are included in cost of sales in the consolidated statements of operations. Capitalized Interest The Company capitalizes interest costs throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2019, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate. The following table summarizes the Company’s interest costs incurred, capitalized and expensed for fiscal 2019 and the nine months ended September 30, 2018 . Year Ended Nine Months Ended (In millions) Capitalized interest, beginning of period $ 3.2 $ 0.5 Interest incurred 25.3 7.3 Interest expensed: Directly to interest expense — (3.7 ) Charged to cost of sales (4.8 ) (0.9 ) Capitalized interest, end of period $ 23.7 $ 3.2 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The cost of significant additions and improvements are capitalized and the cost of repairs and maintenance is expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset as follows: Estimated Useful Lives September 30, 2019 2018 (In millions) Buildings and building improvements 10 to 40 years $ 0.9 $ 0.3 Property and equipment 2 to 10 years 3.4 3.1 Total property and equipment 4.3 3.4 Accumulated depreciation (1.9 ) (1.7 ) Property and equipment, net $ 2.4 $ 1.7 Depreciation expense was $0.3 million in fiscal 2019 , $0.2 million in the nine months ended September 30, 2018 and $0.4 million in fiscal 2017 . Income Taxes The Company’s income tax expense is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement amounts of assets and liabilities and their respective tax bases and attributable to net operating losses and tax credit carryforwards. When assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income in future periods and in the jurisdictions in which those temporary differences become deductible. The Company records a valuation allowance when it determines it is more likely than not that a portion of the deferred tax assets will not be realized. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets and liabilities. Interest and penalties related to unrecognized tax benefits are recognized in the financial statements as a component of income tax expense. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a quarterly basis. The evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in increases or decreases in the Company’s income tax expense in the period in which the change is made. Stock-Based Compensation The Company’s stockholders formally authorize shares of its common stock to be available for future grants of stock-based compensation awards. From time to time, the Compensation Committee of the Company’s Board of Directors authorizes the grant of stock-based compensation to its employees and directors from these available shares. At September 30, 2019, the outstanding stock-based compensation awards consist of restricted stock units. Grants of restricted stock units vest over a certain number of years as determined by the Compensation Committee of the Board of Directors. Restricted stock units outstanding at September 30, 2019 have a remaining vesting period of 1 to 5 years. The compensation expense for stock-based awards is based on the fair value of the award and is recognized on a straight-line basis over the remaining vesting period. The fair values of restricted stock units are based on the Company’s stock price at the date of grant. Fair Value Measurements The Financial Accounting Standards Board’s (FASB) authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. When available, the Company uses quoted market prices in active markets to determine fair value. Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which the Company reviews for indicators of impairment when events and circumstances indicate that the carrying value is not recoverable. Discontinued Operations The Company has divested all of its oil and gas working interest properties. As a result of this significant change in operations, the Company has reported the results of operations as discontinued operations for the fiscal year ended December 31, 2017. The consolidated statements of cash flows for 2017 reflect cash flows from both continuing and discontinued operations. There was no activity related to discontinued operations during fiscal year 2019 or the nine months ended September 30, 2018. See Note 6 — Discontinued Operations . Pending Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner that is similar to today's accounting. This guidance also eliminates today's real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance is effective for the Company beginning October 1, 2019 and will not have a material impact on its consolidated financial position, results of operations or cash flows. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Historically, the Company managed its operations through its real estate segment, mineral resources segment (previously referred to as oil and gas) and other segment (previously referred to as other natural resources). During the first quarter of fiscal 2019, the Company began managing its operations through one real estate segment. As such, the operating results of the Company's real estate segment are consistent with its consolidated operating results and no separate disclosure is required as of and for the fiscal year ended September 30, 2019 . The Company's real estate segment is its core business and generated all of the Company’s revenues in fiscal 2019 . The real estate segment primarily acquires land and develops infrastructure for single-family residential communities. The Company's real estate segment generates its revenues principally from sales of residential single-family finished lots to local, regional and national homebuilders. The Company has other business activities which were presented in its other segment in prior periods. The assets and results of operations of these business activities are immaterial and are included within the Company's real estate segment in fiscal 2019 . Additionally, as of and for the fiscal year ended September 30, 2019 , all assets and results of operations have been included in the real estate segment. In prior periods, certain costs and assets were not allocated to the Company’s segments. During the first quarter of fiscal 2019, the Company began evaluating the results of operations of its real estate segment based on income from continuing operations before income taxes. As a result, all of the Company’s results of operations have been allocated to the real estate segment for the fiscal year ended September 30, 2019 . This change in the measure of segment profit (loss) was adopted prospectively and the prior period segment results have not been adjusted to conform to the current year. In prior periods, segment earnings (loss) consist of operating income, equity in earnings (loss) of unconsolidated ventures, gain on sales of assets, interest income and net income (loss) attributable to noncontrolling interests. Items not allocated to segments in prior periods consist of general and administrative expense, stock-based and long-term incentive compensation, gain on sale of timberland assets, interest expense, and other corporate interest and other income. The accounting policies of the segments are the same as those described in Note 1 — Summary of Significant Accounting Policies . The Company's revenues are derived from its real estate operations and all of its assets are located in the U.S. In fiscal 2019 , D.R. Horton accounted for $326.6 million of the Company's real estate revenues. Total assets by segment at September 30, 2018 were as follows: September 30, 2018 Real Estate Other Items Not Allocated Consolidated (In millions) Cash and cash equivalents $ — $ — $ 318.8 $ 318.8 Restricted cash — — 16.2 16.2 Real estate 498.0 — — 498.0 Investment in unconsolidated ventures 11.7 — — 11.7 Income taxes receivable — — 4.4 4.4 Property and equipment, net — 1.5 0.2 1.7 Deferred tax asset, net — — 26.9 26.9 Other assets 12.4 0.4 2.6 15.4 $ 522.1 $ 1.9 $ 369.1 $ 893.1 Segment results for the nine months ended September 30, 2018 were as follows: Nine Months Ended September 30, 2018 Real Estate Other Items Not Allocated Consolidated (In millions) Revenues $ 78.3 $ — $ — $ 78.3 Cost of sales 48.9 0.6 — 49.5 Selling, general and administrative expense 7.1 0.3 12.0 19.4 Equity in earnings of unconsolidated ventures (4.8 ) — — (4.8 ) Gain on sale of assets (18.6 ) (9.2 ) — (27.8 ) Interest expense — — 3.7 3.7 Interest and other income (1.8 ) — (4.6 ) (6.4 ) Income from continuing operations before taxes $ 47.5 $ 8.3 $ (11.1 ) $ 44.7 Net income attributable to noncontrolling interests 1.2 — — 1.2 Income from continuing operations before taxes attributable to Forestar Group Inc. $ 46.3 $ 8.3 $ (11.1 ) $ 43.5 Gain on sale of assets within the Company's real estate segment in the nine months ended September 30, 2018 consists primarily of a gain of $14.6 million related to the sale of its interest in a multifamily venture near Denver. In the nine months ended September 30, 2018, the Company's other segment sold non-core water interests in Texas, Louisiana, Georgia and Alabama for $10.5 million , which generated a gain on sale of assets of $9.2 million . Segment results for the fiscal year ended December 31, 2017 were as follows: Year Ended December 31, 2017 Real Estate Mineral Resources Other Items Not Allocated Consolidated (In millions) Revenues $ 112.7 $ 1.5 $ 0.1 $ — $ 114.3 Cost of sales 67.8 38.3 6.5 — 112.6 Selling, general and administrative expense 15.9 1.4 0.4 57.6 75.3 Equity in earnings of unconsolidated ventures (16.4 ) (1.4 ) — — (17.8 ) Gain on sale of assets (1.9 ) (82.4 ) (0.4 ) (28.7 ) (113.4 ) Interest expense — — — 8.5 8.5 Loss on extinguishment of debt — — — 0.6 0.6 Interest and other income (2.0 ) — — (1.6 ) (3.6 ) Income (loss) from continuing operations before taxes $ 49.3 $ 45.6 $ (6.4 ) $ (36.4 ) $ 52.1 Net income attributable to noncontrolling interests 2.0 — — — 2.0 Income (loss) from continuing operations before taxes attributable to Forestar Group Inc. $ 47.3 $ 45.6 $ (6.4 ) $ (36.4 ) $ 50.1 In fiscal 2017, the Company's mineral resources segment sold its remaining owned mineral assets for approximately $85.7 million , which generated gains of $82.4 million . These gains were partially offset by a $37.9 million impairment charge associated with the mineral resources reporting unit goodwill which is included in cost of sales in the consolidated statement of operations. In fiscal 2017, cost of sales in the Company's other segment includes impairment charges of $5.8 million primarily related to the Company's central Texas water assets. Items not allocated to segments consist of: Nine Months Ended Year Ended (In millions) Selling, general and administrative expense $ 11.5 $ 50.4 Stock-based and long-term incentive compensation expense 0.5 7.2 Gain on sale of assets — (28.7 ) Interest expense 3.7 8.5 Loss on extinguishment of debt — 0.6 Interest and other income (4.6 ) (1.6 ) $ 11.1 $ 36.4 Selling, general and administrative expense in fiscal 2017 includes Merger related transaction costs of $37.2 million which included a Merger termination fee of $20.0 million paid to Starwood Capital Group, $11.8 million in professional fees and other costs, and $5.4 million in executive severance and change in control costs. |
Real Estate
Real Estate | 12 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Real estate consists of: September 30, 2019 2018 (In millions) Developed and under development projects $ 1,011.8 $ 463.1 Undeveloped land 17.1 34.9 $ 1,028.9 $ 498.0 In fiscal 2019 , the Company invested $559.4 million for the acquisition of residential real estate and $290.3 million for the development of residential real estate. At September 30, 2019 and 2018 , undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton within approximately one year of its purchase or, if D.R. Horton elects, at an earlier date, at a sales price equal to the carrying value of the land at the time of sale plus additional consideration which ranges from 12% to 16% per annum. In fiscal 2019 , the Company sold approximately 63 acres of undeveloped land to a third party for approximately $44.2 million . In conjunction with the sale, the Company paid D.R. Horton a fee of approximately $2.1 million to terminate an existing purchase and sale agreement whereby D.R. Horton had the option to purchase the property at a fixed price. This termination fee is included in cost of sales in the Company's consolidated statements of operations. In February 2018 , the Company sold a portion of its assets to Starwood for $232.0 million . This strategic asset sale included projects owned both directly and indirectly through ventures. The total net proceeds after certain purchase price adjustments, closing costs and other costs associated with selling these projects was $217.5 million , and a gain on the sale of these assets of $0.7 million is included in the Company’s consolidated statement of operations for the nine months ended September 30, 2018. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues On October 1, 2018, the Company adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" (ASC 606), which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Results for the reporting period beginning on October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. Under ASC 606 the Company's performance obligations are typically satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. As of October 1, 2018, the Company established contract liabilities of $6.4 million related to its remaining unsatisfied performance obligations at the time of adoption of ASC 606. There was no impact to the amount or timing of revenues recognized during fiscal 2019 as a result of applying ASC 606. At September 30, 2019 , the Company had contract liabilities of $2.5 million related to its remaining unsatisfied performance obligations. Revenues consist of: Year Ended Nine Months Ended Year Ended (In millions) Residential lot sales $ 351.7 $ 72.0 $ 83.9 Residential tract sales 55.8 3.6 14.6 Commercial tract sales 18.5 2.0 13.0 Other 2.3 0.7 2.8 $ 428.3 $ 78.3 $ 114.3 |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 12 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures In the past, the Company has participated in real estate ventures for the purpose of acquiring and developing residential, multifamily and mixed-use communities in which it may or may not have a controlling financial interest. GAAP requires consolidation of variable interest entities (VIEs) in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb the VIE losses and right to receive benefits that are significant to the VIE. The Company examines specific criteria and uses judgment when determining whether a venture is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into venture agreements and reassesses upon reconsideration events. At September 30, 2019 , the Company had ownership interests in four ventures that it accounted for using the equity method. Combined summarized balance sheet and income statement information for these unconsolidated ventures follows: September 30, 2019 2018 (In millions) Assets: Cash and cash equivalents $ 1.6 $ 10.2 Real estate 13.6 17.2 Other assets 0.1 0.1 Total assets $ 15.3 $ 27.5 Liabilities and Equity: Accounts payable and other liabilities $ 0.3 $ 0.6 Equity 15.0 26.9 Total liabilities and equity $ 15.3 $ 27.5 Forestar's investment in unconsolidated ventures $ 7.3 $ 11.7 Year Ended Nine Months Ended Year Ended (In millions) Revenues $ 1.9 $ 22.2 $ 65.7 Earnings $ 1.3 $ 15.1 $ 39.2 Forestar's equity in earnings of unconsolidated ventures $ 0.5 $ 4.8 $ 17.8 During fiscal 2019 and the nine months ended September 30, 2018 , the Company made no further investments in these ventures and received $5.0 million and $4.3 million , respectively, in distributions. Distributions include both return of investments and distributions of earnings. In the nine months ended September 30, 2018, the Company's equity in earnings from one of its unconsolidated ventures in which it owns a 37.5% interest, LM Land Holdings, LP, accounted for over 10% of the Company's consolidated pre-tax income. At September 30, 2018, LM Land Holdings, LP had $21.6 million in venture assets, $0.4 million in accounts payable and other liabilities, and $21.2 million in venture equity on its balance sheet. At September 30, 2018, the Company's investment in this venture was $8.9 million . In the nine months ended September 30, 2018, LM Land Holdings, LP recognized $17.4 million of revenues and generated $18.1 million in earnings, which includes $5.7 million of earnings related to the recognition of a deferred gain. The Company's share of these earnings was $6.4 million . In the nine months ended September 30, 2018, the Company sold its ownership interest in eight of its unconsolidated ventures to Starwood as part of a strategic asset sale (See Note 3—Real Estate ). In the nine months ended September 30, 2018, the Company also sold its interest in a residential venture in Atlanta, generating $11.0 million in net proceeds and a gain of $2.0 million . The Company also sold its interest in a multifamily venture near Denver, generating $19.2 million in net proceeds and a gain of $14.6 million . In the nine months ended September 30, 2018, a venture in which the Company owns a 50% interest recognized a non-cash impairment charge of $3.0 million associated with a golf course near Atlanta. The Company's share of this non-cash impairment charge is included within equity in earnings of unconsolidated ventures in its consolidated statements of operations. In fiscal 2017, a multifamily venture in which the Company owned a 30% interest sold a 320-unit multifamily project in Nashville for $71.8 million and recognized a gain of $19.0 million . The Company's share of earnings was $7.8 million and it received a distribution of $12.0 million as a result of this sale. In fiscal 2017, a venture in which the Company owned a 50% interest benefited from the sale of 46 commercial acres in Houston for $9.7 million generating $6.6 million in earnings to the venture. The Company's pro-rata share of the earnings associated with this sale was $3.3 million and its pro-rata share of the total distributable cash was $4.3 million . |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations | 12 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations The Company has divested all of its oil and gas working interest properties. As a result of this significant change in operations, the Company has reported the results of operations as discontinued operations for the year ended December 31, 2017 . There was no activity related to these operations in fiscal 2019 or the nine months ended September 30, 2018 . Summarized results from discontinued operations were as follows: Year Ended (In millions) Revenues $ — Cost of sales — Selling, general and administrative expense (0.2 ) Income from discontinued operations before income taxes $ 0.2 Loss on sale of assets before income taxes 0.2 Income tax benefit 46.0 Income from discontinued operations, net of taxes $ 46.0 In 2017, the Company sold all common stock of Forestar Petroleum Corporation for $0.1 million , which completed the sale of all of its oil and gas assets and related entities. This transaction resulted in a significant tax loss, and the corresponding tax benefit is reported in discontinued operations in 2017. Operating activities and investing activities of discontinued operations included in the consolidated statements of cash flows were as follows: Year Ended (In millions) Operating activities: Decrease in accounts payable and other accrued liabilities $ (3.0 ) Loss on sale of assets 0.2 $ (2.8 ) Investing activities: Proceeds from sale of assets $ 0.2 |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |
Other Assets And Other Liabilities [Text Block] | Other Assets, Accrued Expenses and Other Liabilities The Company's other assets at September 30, 2019 and 2018 were as follows: September 30, 2019 2018 (In millions) Receivables, net $ 1.1 $ 2.7 Prepaid expenses 3.4 3.1 Land purchase contract deposits 5.1 4.1 Intangible assets — 0.5 Other assets 4.1 5.0 $ 13.7 $ 15.4 The Company's accrued expenses and other liabilities at September 30, 2019 and 2018 were as follows: September 30, 2019 2018 (In millions) Accrued employee compensation and benefits $ 5.6 $ 6.7 Accrued property taxes 2.1 1.7 Accrued interest 13.5 0.4 Contract liabilities 2.5 — Deferred income 9.3 11.6 Accrued development costs 35.4 17.6 Other accrued expenses 8.4 9.6 Other liabilities 2.8 2.0 $ 79.6 $ 49.6 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's notes payable at their principal amounts, net of unamortized discounts and debt issuance costs, consist of the following: September 30, 2019 2018 (In millions) Unsecured: 3.75% convertible senior notes due 2020 $ 116.7 $ 111.7 8.0% senior notes due 2024 343.8 — Revolving credit facility — — $ 460.5 $ 111.7 Bank Credit Facility The Company has a $380 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $570 million , subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the revolving credit commitment. Letters of credit issued under the facility reduce the available borrowing capacity. At September 30, 2019 , there were no borrowings outstanding and $29.7 million of letters of credit issued under the revolving credit facility. Borrowings under the revolving credit facility are subject to a borrowing base based on the book value of the Company's real estate assets and unrestricted cash. At September 30, 2019 , the borrowing base limited the available capacity under the revolving credit facility to $339.6 million . Borrowings and repayments under the facility totaled $85 million each during fiscal 2019 . In October 2019 , the revolving credit facility was amended to extend its maturity date from August 16, 2021 to October 2, 2022 . The maturity date may be extended by up to one year on up to two additional occasions, subject to the approval of lenders holding a majority of the commitments. The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require a minimum level of tangible net worth, a minimum level of liquidity, and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At September 30, 2019 , the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. 3.75% Convertible Senior Notes due 2020 At September 30, 2019 , the principal amount of the 3.75% convertible senior notes due March 2020 was $118.9 million and the unamortized debt discount was $2.0 million . The effective interest rate on the liability component was 8.0% and the carrying amount of the equity component was $16.8 million . The Company intends to settle the principal amount of these notes in cash in 2020, with any excess conversion value to be settled in shares of its common stock. At September 30, 2019 and 2018 , the Company had $0.2 million and $0.7 million in unamortized deferred financing fees that were deducted from the carrying value of these notes. 8.0% Senior Notes due 2024 In April 2019 , the Company issued $350 million principal amount of 8.0% senior notes pursuant to Rule 144A and Regulation S under the Securities Act. The notes mature April 15, 2024 , with interest payable semi-annually and represent senior unsecured obligations that rank equally in right of payment to all existing and future senior unsecured indebtedness. The notes may be redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreement. The notes are guaranteed by each of the Company's subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility. At September 30, 2019 , the Company had $6.2 million in unamortized deferred financing fees that were deducted from the carrying value of these notes. The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 8.5% . The indenture governing the notes requires that, upon the occurrence of both a Change of Control and a Rating Decline (each as defined in the indenture), the Company offer to purchase the notes at 101% of their principal amount. If the Company or its restricted subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash proceeds from such asset sales in its business within a specified period of time, repay certain senior secured debt or debt of its non-guarantor subsidiaries, or make an offer to purchase a principal amount of the notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount. The indenture contains covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments; incur additional debt or issue mandatorily redeemable equity; incur liens on assets; merge or consolidate with another company or sell or otherwise dispose of all or substantially all of the Company’s assets; enter into transactions with affiliates; and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments. At September 30, 2019 , the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations. |
Fair Value
Fair Value | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. In arriving at a fair value measurement, the Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of inputs used to establish fair value are the following: • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company elected not to use the fair value option for cash and cash equivalents, restricted cash and debt. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at September 30, 2019 and 2018 . Fair Value at September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 382.8 $ 382.8 $ — $ — $ 382.8 Debt (b) 460.5 — 497.3 — 497.3 Fair Value at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 318.8 $ 318.8 $ — $ — $ 318.8 Restricted cash (a) 16.2 16.2 — — 16.2 Debt (b) 112.4 — 113.2 — 113.2 _____________________ (a) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) At September 30, 2019 and 2018, debt consisted of the Company's senior and convertible senior notes. The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which the Company reviews for indicators of potential impairment and performs impairment evaluations when necessary. Real estate impairment charges are included in cost of sales in the Company's consolidated statements of operations. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Earnings per Share The computations of basic and diluted earnings per share are as follows: Year Ended Nine Months Ended Year Ended (In millions, except share data) Numerator: Continuing operations Net income from continuing operations attributable to Forestar Group Inc. $ 33.0 $ 68.8 $ 4.3 Discontinued operations Net income from discontinued operations available for diluted earnings per share $ — $ — $ 46.0 Denominator: Weighted average common shares outstanding — basic 41,974,429 41,938,987 42,142,690 Dilutive effect of stock-based compensation 30,712 30,069 238,333 Total weighted average shares outstanding — diluted 42,005,141 41,969,056 42,381,023 Anti-dilutive awards excluded from diluted weighted average shares — — 1,093,394 The Company intends to settle the principal amount of its convertible senior notes in cash with any excess conversion value to be settled in shares of its common stock. Therefore, only the amount in excess of the par value of the notes will be included in the calculation of diluted net income per share using the treasury stock method. As such, the notes have no impact on diluted net income per share until the price of the Company's common stock exceeds the conversion price of the notes of $51.42 . The price of the Company's common stock did not exceed the conversion price in any of the periods presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense from continuing operations consists of: Year Ended Nine Months Ended Year Ended (In millions) Current tax expense (benefit): U.S. Federal $ (0.3 ) $ (0.5 ) $ 44.2 State and other 0.3 — 3.4 — (0.5 ) 47.6 Deferred tax expense (benefit): U.S. Federal 9.1 (23.5 ) (1.7 ) State and other 0.3 (1.3 ) (0.1 ) 9.4 (24.8 ) (1.8 ) Income tax expense (benefit) $ 9.4 $ (25.3 ) $ 45.8 A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations follows: Year Ended Nine Months Ended Year Ended Federal statutory rate (benefit) 21 % 21 % 35 % State, net of federal benefit 1 4 3 Valuation allowance — (81 ) (42 ) Tax rate change due to new tax act — — 40 Noncontrolling interests (1 ) (1 ) (1 ) Stock based compensation — — 11 Goodwill — — 25 Merger costs — — 18 Other — — (1 ) Effective tax rate 21 % (57 )% 88 % The effective tax rate for all years includes an expense for state income taxes and non-deductible expenses, reduced by a tax benefit related to noncontrolling interests. The Company's effective tax rate for the nine months ended September 30, 2018 also includes a benefit for the release of its federal valuation allowance and a portion of its state valuation allowance associated with its deferred tax assets. The Company's effective tax rate for 2017 includes an expense for non-deductible goodwill related to the sale of its owned mineral interests and non-deductible transaction costs related to its merger with D.R. Horton. Other differences, including the remeasurement of the Company's deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act (Tax Act), are fully offset by a change in its valuation allowance. Significant components of deferred taxes are: September 30, 2019 September 30, 2018 (In millions) Deferred Tax Assets: Real estate $ 10.2 $ 11.0 Employee benefits 1.5 1.5 Net operating loss carryforwards 15.1 17.7 AMT credits 0.6 1.2 Accruals not deductible until paid 0.2 0.4 Gross deferred tax assets 27.6 31.8 Valuation allowance (3.3 ) (3.4 ) Deferred tax asset net of valuation allowance 24.3 28.4 Deferred Tax Liabilities: Deferral of profit on lot sales (6.4 ) — Convertible debt (0.5 ) (1.5 ) Gross deferred tax liabilities (6.9 ) (1.5 ) Net Deferred Tax Asset $ 17.4 $ 26.9 In October 2017 , D.R. Horton acquired 75% of the Company's common stock resulting in an ownership change under Section 382 of the Internal Revenue Code. Section 382 limits the Company's ability to use certain tax attributes and built-in losses and deductions in a given year. Any tax attributes or built-in losses and deductions that were limited in 2018 or 2019 are expected to be fully utilized in future years with the exception of some state net operating loss (NOL) carryforwards. At September 30, 2019 , the Company had tax benefits of $11.4 million related to federal NOL carryforwards, none of which have an expiration date. At September 30, 2019 , the Company had tax benefits of $3.7 million related to state NOL carryforwards, of which $3.3 million will expire between 2030 and 2038 while the remaining $0.4 million does not have an expiration date. At September 30, 2019 and 2018 , the Company has provided a valuation allowance for its deferred tax asset of $3.3 million and $3.4 million for the portion of the deferred tax assets that the Company has determined is more likely than not to be unrealizable. The valuation allowance was recorded because it is more likely than not that a portion of the Company's state deferred tax assets, primarily NOL carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets. Any reversal of the valuation allowance in future periods will impact the effective tax rate. The Company entered into a Tax Sharing Agreement with D.R. Horton. The Tax Sharing Agreement sets forth an equitable method for reimbursements of tax liabilities or benefits between the Company and D.R. Horton related to state and local income, margin or franchise tax returns that are filed on a unitary basis with D.R. Horton. In accordance with the tax sharing agreement, D.R. Horton reimbursed the Company $0.4 million in fiscal 2019 for its tax benefit generated in the nine months ended September 30, 2018 . The Company files income tax returns in the U.S. and in various state jurisdictions. The federal statute of limitations for tax years prior to 2017 is effectively closed and the statute of limitations in major state jurisdictions for tax years prior to 2015 is closed. The Internal Revenue Service (IRS) recently completed an audit of the Company's 2016 tax year with no changes. The Company is not currently being audited by the IRS or any state jurisdictions. A reconciliation of the beginning and ending amount of tax benefits not recognized for book purposes is as follows: Year Ended Nine Months Ended Year Ended (In millions) Balance at beginning of year $ 1.6 $ 1.1 $ 2.5 Increases (decreases) for dispositions and other — 0.5 (1.4 ) Balance at end of year $ 1.6 $ 1.6 $ 1.1 If the total amount of unrecognized tax benefits was recognized at September 30, 2019 , it would result in a $1.6 million tax benefit. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. In fiscal years 2019 , 2018 and 2017 , no significant interest related to unrecognized tax benefits was recognized. At September 30, 2019 , September 30, 2018 and December 31, 2017 , there were no significant accrued interest or penalties. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity The Company has an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on September 24, 2018 , which became effective on October 4, 2018 , registering $500 million of equity securities. On September 30, 2019 , the Company issued 6.0 million shares of its common stock for $17.50 per share in a public underwritten offering. Net proceeds from this offering after deducting underwriting discounts and commissions and other expenses were $100.7 million . As a result of the issuance, D.R. Horton's ownership of the Company's outstanding common shares decreased from 75% to approximately 66% . Following the offering, $394.3 million remains available for issuance under the shelf registration statement. |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Employee Benefit Plans Retirement Plans The Company has a 401(k) plan for all employees who have been with the Company for a period of six months or more. The Company matches portions of employees’ voluntary contributions. Additional employer contributions in the form of profit sharing may also be made at the Company’s discretion. The Company recorded expense of $0.2 million in fiscal 2019 , $0.1 million in the nine months ended September 30, 2018 and $0.7 million in fiscal 2017 for matching contributions. Restricted Stock Units (RSUs) The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit awards may be based on performance (performance-based) or on service over a requisite time period (time-based). Performance-based and time-based RSU equity awards represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions and/or performance criteria are satisfied. The Company granted time-based RSUs during fiscal 2019 and in the nine months ended September 30, 2018 . The time-based RSUs vest annually in equal installments over periods of three to five years and have no voting rights until vested. The following table provides additional information related to time-based RSU activity during fiscal 2019 and in the nine months ended September 30, 2018 . Year Ended Nine Months Ended Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of period 86,500 $ 18.09 85,994 $ 17.54 Granted 149,400 20.24 12,000 22.35 Vested (23,740 ) 18.03 (500 ) 18.40 Cancelled (11,200 ) 18.39 (10,994 ) 18.40 Outstanding at end of period 200,960 $ 19.68 86,500 $ 18.09 The total fair value of shares vested on the vesting date during fiscal 2019 , the nine months ended September 30, 2018 and fiscal 2017 was $0.4 million , $0.0 million and $14.9 million , respectively. For fiscal 2019 , the nine months ended September 30, 2018 , and fiscal 2017 , compensation expense related to time-based RSUs was $1.3 million , $0.3 million and $5.0 million respectively, and fiscal 2019 includes $0.6 million of stock based compensation expense related to employees that were retirement eligible on the date of grant. These expenses are included in selling, general and administrative expense in the Company's consolidated statements of operations. At September 30, 2019 , there was $2.6 million of unrecognized compensation expense related to unvested time-based RSU awards. This expense is expected to be recognized over a weighted average period of 2.3 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Other Contingencies | Commitments and Contingencies Contractual Obligations and Off-Balance Sheet Arrangements In support of the Company's residential lot development business, it issues letters of credit under the revolving credit facility and it has a surety bond program that provides financial assurance to beneficiaries related to the execution and performance of certain development obligations. At September 30, 2019 , the Company had outstanding letters of credit of $29.7 million under the revolving credit facility and surety bonds of $158.8 million , issued by third parties to secure performance under various contracts. The Company expects that its performance obligations secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in accordance with the applicable contractual terms. When the Company completes its performance obligations, the related letters of credit and bonds are generally released shortly thereafter, leaving the Company with no continuing obligations. The Company has no material third-party guarantees. Litigation The Company is involved in various legal proceedings that arise from time to time in the ordinary course of business and believes that adequate reserves have been established for any probable losses. The Company does not believe that the outcome of any of these proceedings will have a significant adverse effect on its financial position, long-term results of operations or cash flows. It is possible, however, that charges related to these matters could be significant to the Company's results or cash flows in any one accounting period. Other Commitments The Company leases facilities and equipment under non-cancelable long-term operating lease agreements. In addition, the Company has various obligations under other office space and equipment leases of less than one year. Rent expense for facilities and equipment was $0.7 million in fiscal 2019 , $0.6 million in the nine months ended September 30, 2018 and $2.1 million in fiscal 2017 . Future minimum rental commitments, by fiscal year, under non-cancelable operating leases having an initial or remaining term in excess of one year are: 2020 — $0.7 million ; 2021 — $0.6 million ; 2022 — $0.5 million ; 2023 — $0.4 million ; 2024 — $0.3 million ; and thereafter — $0.0 million . |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions In October 2017 , the Company entered into a Shared Services Agreement with D.R. Horton whereby D.R. Horton provides the Company with certain administrative, compliance, operational and procurement services. During fiscal 2019 and the nine months ended September 30, 2018 , the Company paid D.R. Horton $2.1 million and $0.9 million for these shared services and $1.4 million and $0.9 million for the cost of health insurance and other employee benefits. These expenses are included in selling, general and administrative expense in the consolidated statements of operations. The Company entered into a Tax Sharing Agreement with D.R. Horton. The Tax Sharing Agreement sets forth an equitable method for reimbursements of tax liabilities or benefits between the Company and D.R. Horton related to state and local income, margin or franchise tax returns that are filed on a unitary basis with D.R. Horton. In accordance with the tax sharing agreement, D.R. Horton reimbursed the Company $0.4 million in fiscal 2019 for its tax benefit generated in the nine months ended September 30, 2018. Under the terms of the Master Supply Agreement with D.R. Horton, both companies identify land development opportunities to expand Forestar's portfolio of assets. At September 30, 2019 and 2018 , the Company owned or controlled through option purchase contracts approximately 38,300 and 20,100 residential lots, of which D.R. Horton had the following involvement. September 30, 2019 2018 (Dollars in millions) Residential lots under contract to sell to D.R. Horton 12,800 5,500 Residential lots subject to right of first offer with D.R. Horton 10,600 8,100 Earnest money deposits from D.R. Horton for lots under contract $ 88.7 $ 45.3 Remaining purchase price of lots under contract with D.R. Horton $ 953.8 $ 522.2 During fiscal 2019 , the nine months ended September 30, 2018 and fiscal 2017 , the Company's residential lot sales totaled 4,132 , 1,024 and 937 , and lot sales revenues were $351.7 million , $72.0 million and $83.9 million . Lot and land sales to D.R. Horton during those periods were as follows. Year Ended Nine Months Ended Year Ended (Dollars in millions) Residential single-family lots sold to D.R. Horton 3,728 642 26 Residential lot sales revenues from sales to D.R. Horton $ 311.7 $ 43.6 $ 1.2 Residential tract acres sold to D.R. Horton 290 79 96 Residential tract sales revenues from sales to D.R. Horton $ 10.9 $ 2.0 $ 4.0 In addition, the net impact of the change in contract liabilities or revenue deferrals increased revenues on lot sales to D.R. Horton by $4.0 million in fiscal 2019 and decreased revenues by $6.4 million in the nine months ended September 30, 2018 . During the nine months ended September 30, 2018 , a venture in which the Company owns a 37.5% interest sold 40 residential tract acres to D.R. Horton for $7.8 million . The Company's share of these earnings was $2.5 million , which is included in equity in earnings of unconsolidated ventures in its consolidated statements of operations. During fiscal 2019 and the nine months ended September 30, 2018 , the Company reimbursed D.R. Horton approximately $34.5 million and $21.2 million for previously paid earnest money and $13.1 million and $15.2 million for pre-acquisition and other due diligence and development costs related to land purchase contracts whereby D.R. Horton assigned its rights under these land purchase contracts to the Company. During fiscal 2019 and the nine months ended September 30, 2018 , the Company paid D.R. Horton $2.4 million and $0.6 million for land development services. These amounts are included in cost of sales in the Company’s consolidated statements of operations. At September 30, 2019 and 2018 , undeveloped land was $17.1 million and $34.9 million . Undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton within approximately one year of its purchase or, if D.R. Horton elects, at an earlier date, at a sales price equal to the carrying value of the land at the time of sale plus additional consideration which ranges from 12% to 16% per annum. In fiscal 2019 , the Company sold approximately 63 acres of undeveloped land to a third party for approximately $44.2 million . In conjunction with the sale, the Company paid D.R. Horton a fee of approximately $2.1 million to terminate an existing purchase and sale agreement whereby D.R. Horton had the option to purchase the property at a fixed price. This termination fee is included in cost of sales in the Company's consolidated statements of operations. At September 30, 2019 and 2018 , accrued expenses and other liabilities on the Company's consolidated balance sheets included $2.2 million and $3.3 million owed to D.R. Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements. |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) Consolidated quarterly results of operations for fiscal year 2019 and the nine months ended September 30, 2018 were (in millions, except per share amounts): Three Months Ended December 31, 2018 Three Months Ended March 31, 2019 Three Months Ended June 30, 2019 Three Months Ended September 30, 2019 2019 Total revenues $ 38.5 $ 65.3 $ 88.2 $ 236.3 Income before income taxes 4.9 16.4 8.4 16.0 Income tax expense 1.0 3.6 1.5 3.4 Net income 3.9 12.8 6.9 12.6 Net income (loss) attributable to noncontrolling interests 0.6 2.7 — (0.1 ) Net income attributable to Forestar Group Inc. 3.3 10.1 6.9 12.7 Net income per share — basic $ 0.08 $ 0.24 $ 0.16 $ 0.30 Net income per share — diluted $ 0.08 $ 0.24 $ 0.16 $ 0.30 Three Months Ended March 31, 2018 Three Months Ended June 30, 2018 Three Months Ended September 30, 2018 2018 Total revenues $ 22.6 $ 23.6 $ 32.2 Income before income taxes 4.7 10.4 29.6 Income tax expense (benefit) 0.1 0.1 (25.6 ) Net income 4.6 10.3 55.2 Net income attributable to noncontrolling interests 0.1 0.9 0.3 Net income attributable to Forestar Group Inc. 4.5 9.4 54.9 Net income per share — basic $ 0.11 $ 0.22 $ 1.31 Net income per share — diluted $ 0.11 $ 0.22 $ 1.31 The income tax benefit in the three months ended September 30, 2018 was due to a reduction in the Company's valuation allowance on its deferred tax assets during the quarter. |
Transition Period Comparative D
Transition Period Comparative Data (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Transition Period Comparative Data [Abstract] | |
Transition Period Comparative Disclosures [Text Block] | Transition Period Comparative Data The following table presents certain financial information for the nine months ended September 30, 2018 and 2017 (in millions, except per share amounts). For the Nine Months Ended September 30, 2018 2017 (Unaudited) Revenues $ 78.3 $ 83.5 Cost of sales 49.5 90.1 Selling, general and administrative expense 19.4 51.2 Equity in earnings of unconsolidated ventures (4.8 ) (10.9 ) Gain on sale of assets (27.8 ) (113.4 ) Interest expense 3.7 6.4 Interest and other income (6.4 ) (2.4 ) Income from continuing operations before taxes 44.7 62.5 Income tax (benefit) expense (25.3 ) 33.4 Net income from continuing operations 70.0 29.1 Income from discontinued operations, net of taxes — 38.8 Net income 70.0 67.9 Net income attributable to noncontrolling interests 1.2 0.1 Net income attributable to Forestar Group Inc. $ 68.8 $ 67.8 Weighted Average Common Shares Outstanding: Basic 41.9 42.2 Diluted 42.0 42.5 Net Income per Basic Share: Continuing operations $ 1.64 $ 0.69 Discontinued operations $ — $ 0.92 Net income per basic share $ 1.64 $ 1.61 Net Income per Diluted Share: Continuing operations $ 1.64 $ 0.68 Discontinued operations $ — $ 0.91 Net income per diluted share $ 1.64 $ 1.59 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. The Company divested substantially all of its oil and gas working interest properties in 2016 and completed the sale of all oil and gas assets and related entities in 2017. As a result of selling the entities, the Company recognized a tax benefit of $46.0 million during fiscal 2017 that was recorded as income from discontinued operations. There was no activity related to these discontinued operations during the nine months ended September 30, 2018 or in fiscal 2019. In October 2017 , Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton (the Merger). Immediately following the Merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the Merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement, and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. At September 30, 2019 , D.R. Horton owned approximately 66% of the Company's outstanding common stock. |
Change in Fiscal Year | Change in Fiscal Year Following the Merger, the Company changed its fiscal year-end from December 31 to September 30, effective January 1, 2018. This change aligned Forestar's fiscal year-end reporting calendar with D.R. Horton. The Company's results of operations, cash flows, and all transactions impacting stockholders' equity presented in this Form 10-K are for the fiscal year ended September 30, 2019 , the nine months ended September 30, 2018 and the fiscal year ended December 31, 2017 unless otherwise noted. This Form 10-K also includes an unaudited statement of operations for the comparable stub period of January 1, 2017 to September 30, 2017 (see Note 17 — Transition Period Comparative Data ). |
Reclassifications | Changes in Presentation and Reclassifications Certain items have been reclassified in the prior year financial statements to conform to the presentation and classifications used in the current year. Receivables, prepaid expenses, land purchase contract deposits, and intangible assets have been reclassified to other assets in the prior year consolidated balance sheet. Accrued employee compensation and benefits, accrued property taxes, accrued interest, other accrued expenses and other liabilities have been reclassified to accrued expenses and other liabilities in the prior year consolidated balance sheet. Other operating expense and general and administrative expense have been combined into one line item which is titled selling, general and administrative expense in the prior year consolidated statements of operations. In addition, certain items have been reclassified from selling, general and administrative expense to cost of sales in the prior year statements of operations to conform to classifications used in the current year. The Company has reclassified the change in earnest money deposits in the prior year statements of cash flows from change in accounts payable and other accrued liabilities to conform to the classifications used in the current year. The Company has reclassified real estate cost of sales, real estate development and acquisition expenditures and reimbursements from utility and improvement districts to change in real estate in the prior year statements of cash flows to conform to classifications used in the current year. The Company has reclassified proceeds from land and lot closings held for the Company’s benefit at title companies in the prior year consolidated balance sheet from receivables to cash and cash equivalents to conform to the classification used in the current year. These reclassifications had no effect on the Company's consolidated operating results, balance sheet or cash flows. In connection with the Company's adoption of Accounting Standards Update (ASU) 2016-18 on October 1, 2018, restricted cash is included with cash and cash equivalents when reconciling beginning and ending cash amounts in the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current year presentation, resulting in a decrease in cash provided by financing activities of $23.8 million in the nine months ended September 30, 2018 and a decrease in cash used in financing activities of $39.8 million in fiscal 2017 . |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
New and Pending Accounting Pronouncements | Adoption of New Accounting Standards On October 1, 2018, the Company adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" (ASC 606), which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Results for the reporting period beginning on October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. Under ASC 606, the Company's performance obligations are typically satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. As of October 1, 2018, the Company established contract liabilities of $6.4 million related to its remaining unsatisfied performance obligations at the time of adoption of ASC 606. There was no impact to the amount or timing of revenues recognized as a result of applying ASC 606 during fiscal 2019 , and there have not been significant changes to the Company’s business processes, systems, or internal controls as a result of implementing the standard. A summary of items impacted as the result of adopting ASC 606 follows: As of September 30, 2019 As Reported Impact of Adoption As Adjusted (In millions) Real estate $ 1,028.9 $ 2.1 $ 1,026.8 Contract liabilities 2.5 2.5 — Deferred income 9.3 (0.4 ) 9.7 In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows - Restricted Cash,” which requires amounts generally described as restricted cash be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The Company adopted the guidance as of October 1, 2018 on a retrospective basis and made the required changes to its statements of cash flows as described in the “Changes in Presentation and Reclassifications” section above. |
Revenue | Revenue Recognition Real estate revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon land or lots, is generally satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash, other short-term instruments with original maturities of three months or less and proceeds from land and lot closings held for the Company’s benefit at title companies. |
Real Estate | Real Estate Real estate includes the costs of direct land and lot acquisition, land development, capitalized interest, and direct overhead costs incurred during land development. All indirect overhead costs, such as compensation of management personnel and insurance costs are charged to selling, general and administrative expense as incurred. Land and development costs are typically allocated to individual residential lots based on the relative sales value of the lot. Cost of sales includes applicable land and lot acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the project. Any changes to the estimated total development costs subsequent to the initial lot sales are generally allocated to the remaining lots. The Company receives earnest money deposits from homebuilders for purchases of developed lots. These earnest money deposits are typically released to the homebuilders as lots are sold. Earnest money deposits from D.R. Horton of $88.7 million and $45.3 million at September 30, 2019 and 2018 , respectively, are subject to mortgages which are secured by the real estate under contract with D.R. Horton. These mortgages expire when the earnest money is released to D.R. Horton as lots are sold. The Company had approximately 12,800 lots under contract to sell to D.R. Horton for a remaining purchase price of $953.8 million at September 30, 2019 . The Company had approximately 5,500 lots under contract to sell to D.R. Horton for a remaining purchase price of $522.2 million at September 30, 2018 . The Company has agreements with certain utility or improvement districts to convey water, sewer and other infrastructure-related assets it has constructed in connection with projects within their jurisdiction and receive reimbursements for the cost of these improvements. The amount of reimbursements for these improvements are defined by the district and are based on the allowable costs of the improvements. The transfer is consummated and the Company generally receives payment when the districts have a sufficient tax base to support funding of their bonds. The cost incurred by the Company in constructing these improvements, net of the amount expected to be collected in the future, is included in real estate. The Company reviews real estate assets held for use for impairment when events or circumstances indicate that their carrying value may not be recoverable. Impairment exists if the carrying amount of the asset is not recoverable from the undiscounted cash flows expected from its use and eventual disposition. The amount of the impairment loss is determined by comparing the carrying value of the asset to its estimated fair value, which is generally determined based on the present value of future cash flows expected from the sale of the asset. Real estate asset impairment charges were $0.8 million , $0.3 million and $3.4 million in fiscal 2019 , the nine months ended September 30, 2018 and fiscal 2017 , respectively, and are included in cost of sales in the consolidated statements of operations. |
Inventory, Interest Capitalization Policy [Policy Text Block] | Capitalized Interest The Company capitalizes interest costs throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2019, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate. The following table summarizes the Company’s interest costs incurred, capitalized and expensed for fiscal 2019 and the nine months ended September 30, 2018 . Year Ended Nine Months Ended (In millions) Capitalized interest, beginning of period $ 3.2 $ 0.5 Interest incurred 25.3 7.3 Interest expensed: Directly to interest expense — (3.7 ) Charged to cost of sales (4.8 ) (0.9 ) Capitalized interest, end of period $ 23.7 $ 3.2 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The cost of significant additions and improvements are capitalized and the cost of repairs and maintenance is expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset as follows: Estimated Useful Lives September 30, 2019 2018 (In millions) Buildings and building improvements 10 to 40 years $ 0.9 $ 0.3 Property and equipment 2 to 10 years 3.4 3.1 Total property and equipment 4.3 3.4 Accumulated depreciation (1.9 ) (1.7 ) Property and equipment, net $ 2.4 $ 1.7 Depreciation expense was $0.3 million in fiscal 2019 , $0.2 million in the nine months ended September 30, 2018 and $0.4 million in fiscal 2017 . |
Income Taxes | Income Taxes The Company’s income tax expense is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement amounts of assets and liabilities and their respective tax bases and attributable to net operating losses and tax credit carryforwards. When assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income in future periods and in the jurisdictions in which those temporary differences become deductible. The Company records a valuation allowance when it determines it is more likely than not that a portion of the deferred tax assets will not be realized. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets and liabilities. Interest and penalties related to unrecognized tax benefits are recognized in the financial statements as a component of income tax expense. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a quarterly basis. The evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in increases or decreases in the Company’s income tax expense in the period in which the change is made. |
Share-Based Compensation | Stock-Based Compensation The Company’s stockholders formally authorize shares of its common stock to be available for future grants of stock-based compensation awards. From time to time, the Compensation Committee of the Company’s Board of Directors authorizes the grant of stock-based compensation to its employees and directors from these available shares. At September 30, 2019, the outstanding stock-based compensation awards consist of restricted stock units. Grants of restricted stock units vest over a certain number of years as determined by the Compensation Committee of the Board of Directors. Restricted stock units outstanding at September 30, 2019 have a remaining vesting period of 1 to 5 years. The compensation expense for stock-based awards is based on the fair value of the award and is recognized on a straight-line basis over the remaining vesting period. The fair values of restricted stock units are based on the Company’s stock price at the date of grant. |
Fair Value Measurements | Fair Value Measurements The Financial Accounting Standards Board’s (FASB) authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. When available, the Company uses quoted market prices in active markets to determine fair value. Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which the Company reviews for indicators of impairment when events and circumstances indicate that the carrying value is not recoverable. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations The Company has divested all of its oil and gas working interest properties. As a result of this significant change in operations, the Company has reported the results of operations as discontinued operations for the fiscal year ended December 31, 2017. The consolidated statements of cash flows for 2017 reflect cash flows from both continuing and discontinued operations. There was no activity related to discontinued operations during fiscal year 2019 or the nine months ended September 30, 2018. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Pending Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner that is similar to today's accounting. This guidance also eliminates today's real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance is effective for the Company beginning October 1, 2019 and will not have a material impact on its consolidated financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | A summary of items impacted as the result of adopting ASC 606 follows: As of September 30, 2019 As Reported Impact of Adoption As Adjusted (In millions) Real estate $ 1,028.9 $ 2.1 $ 1,026.8 Contract liabilities 2.5 2.5 — Deferred income 9.3 (0.4 ) 9.7 |
Inventory, Interest Capitalization Policy [Table Text Block] | The following table summarizes the Company’s interest costs incurred, capitalized and expensed for fiscal 2019 and the nine months ended September 30, 2018 . Year Ended Nine Months Ended (In millions) Capitalized interest, beginning of period $ 3.2 $ 0.5 Interest incurred 25.3 7.3 Interest expensed: Directly to interest expense — (3.7 ) Charged to cost of sales (4.8 ) (0.9 ) Capitalized interest, end of period $ 23.7 $ 3.2 |
Schedule of Property, Plant and Equipment | Estimated Useful Lives September 30, 2019 2018 (In millions) Buildings and building improvements 10 to 40 years $ 0.9 $ 0.3 Property and equipment 2 to 10 years 3.4 3.1 Total property and equipment 4.3 3.4 Accumulated depreciation (1.9 ) (1.7 ) Property and equipment, net $ 2.4 $ 1.7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Revenues and Earnings | Total assets by segment at September 30, 2018 were as follows: September 30, 2018 Real Estate Other Items Not Allocated Consolidated (In millions) Cash and cash equivalents $ — $ — $ 318.8 $ 318.8 Restricted cash — — 16.2 16.2 Real estate 498.0 — — 498.0 Investment in unconsolidated ventures 11.7 — — 11.7 Income taxes receivable — — 4.4 4.4 Property and equipment, net — 1.5 0.2 1.7 Deferred tax asset, net — — 26.9 26.9 Other assets 12.4 0.4 2.6 15.4 $ 522.1 $ 1.9 $ 369.1 $ 893.1 Segment results for the nine months ended September 30, 2018 were as follows: Nine Months Ended September 30, 2018 Real Estate Other Items Not Allocated Consolidated (In millions) Revenues $ 78.3 $ — $ — $ 78.3 Cost of sales 48.9 0.6 — 49.5 Selling, general and administrative expense 7.1 0.3 12.0 19.4 Equity in earnings of unconsolidated ventures (4.8 ) — — (4.8 ) Gain on sale of assets (18.6 ) (9.2 ) — (27.8 ) Interest expense — — 3.7 3.7 Interest and other income (1.8 ) — (4.6 ) (6.4 ) Income from continuing operations before taxes $ 47.5 $ 8.3 $ (11.1 ) $ 44.7 Net income attributable to noncontrolling interests 1.2 — — 1.2 Income from continuing operations before taxes attributable to Forestar Group Inc. $ 46.3 $ 8.3 $ (11.1 ) $ 43.5 Gain on sale of assets within the Company's real estate segment in the nine months ended September 30, 2018 consists primarily of a gain of $14.6 million related to the sale of its interest in a multifamily venture near Denver. In the nine months ended September 30, 2018, the Company's other segment sold non-core water interests in Texas, Louisiana, Georgia and Alabama for $10.5 million , which generated a gain on sale of assets of $9.2 million . Segment results for the fiscal year ended December 31, 2017 were as follows: Year Ended December 31, 2017 Real Estate Mineral Resources Other Items Not Allocated Consolidated (In millions) Revenues $ 112.7 $ 1.5 $ 0.1 $ — $ 114.3 Cost of sales 67.8 38.3 6.5 — 112.6 Selling, general and administrative expense 15.9 1.4 0.4 57.6 75.3 Equity in earnings of unconsolidated ventures (16.4 ) (1.4 ) — — (17.8 ) Gain on sale of assets (1.9 ) (82.4 ) (0.4 ) (28.7 ) (113.4 ) Interest expense — — — 8.5 8.5 Loss on extinguishment of debt — — — 0.6 0.6 Interest and other income (2.0 ) — — (1.6 ) (3.6 ) Income (loss) from continuing operations before taxes $ 49.3 $ 45.6 $ (6.4 ) $ (36.4 ) $ 52.1 Net income attributable to noncontrolling interests 2.0 — — — 2.0 Income (loss) from continuing operations before taxes attributable to Forestar Group Inc. $ 47.3 $ 45.6 $ (6.4 ) $ (36.4 ) $ 50.1 In fiscal 2017, the Company's mineral resources segment sold its remaining owned mineral assets for approximately $85.7 million , which generated gains of $82.4 million . These gains were partially offset by a $37.9 million impairment charge associated with the mineral resources reporting unit goodwill which is included in cost of sales in the consolidated statement of operations. In fiscal 2017, cost of sales in the Company's other segment includes impairment charges of $5.8 million primarily related to the Company's central Texas water assets. Items not allocated to segments consist of: Nine Months Ended Year Ended (In millions) Selling, general and administrative expense $ 11.5 $ 50.4 Stock-based and long-term incentive compensation expense 0.5 7.2 Gain on sale of assets — (28.7 ) Interest expense 3.7 8.5 Loss on extinguishment of debt — 0.6 Interest and other income (4.6 ) (1.6 ) $ 11.1 $ 36.4 |
Real Estate (Tables)
Real Estate (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate | Real estate consists of: September 30, 2019 2018 (In millions) Developed and under development projects $ 1,011.8 $ 463.1 Undeveloped land 17.1 34.9 $ 1,028.9 $ 498.0 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | Revenues consist of: Year Ended Nine Months Ended Year Ended (In millions) Residential lot sales $ 351.7 $ 72.0 $ 83.9 Residential tract sales 55.8 3.6 14.6 Commercial tract sales 18.5 2.0 13.0 Other 2.3 0.7 2.8 $ 428.3 $ 78.3 $ 114.3 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information | Combined summarized balance sheet and income statement information for these unconsolidated ventures follows: September 30, 2019 2018 (In millions) Assets: Cash and cash equivalents $ 1.6 $ 10.2 Real estate 13.6 17.2 Other assets 0.1 0.1 Total assets $ 15.3 $ 27.5 Liabilities and Equity: Accounts payable and other liabilities $ 0.3 $ 0.6 Equity 15.0 26.9 Total liabilities and equity $ 15.3 $ 27.5 Forestar's investment in unconsolidated ventures $ 7.3 $ 11.7 Year Ended Nine Months Ended Year Ended (In millions) Revenues $ 1.9 $ 22.2 $ 65.7 Earnings $ 1.3 $ 15.1 $ 39.2 Forestar's equity in earnings of unconsolidated ventures $ 0.5 $ 4.8 $ 17.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Summarized results from discontinued operations were as follows: Year Ended (In millions) Revenues $ — Cost of sales — Selling, general and administrative expense (0.2 ) Income from discontinued operations before income taxes $ 0.2 Loss on sale of assets before income taxes 0.2 Income tax benefit 46.0 Income from discontinued operations, net of taxes $ 46.0 |
Significant Operation and Investing Activities of DIscontinued Operations [Table Text Block] | Operating activities and investing activities of discontinued operations included in the consolidated statements of cash flows were as follows: Year Ended (In millions) Operating activities: Decrease in accounts payable and other accrued liabilities $ (3.0 ) Loss on sale of assets 0.2 $ (2.8 ) Investing activities: Proceeds from sale of assets $ 0.2 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | The Company's other assets at September 30, 2019 and 2018 were as follows: September 30, 2019 2018 (In millions) Receivables, net $ 1.1 $ 2.7 Prepaid expenses 3.4 3.1 Land purchase contract deposits 5.1 4.1 Intangible assets — 0.5 Other assets 4.1 5.0 $ 13.7 $ 15.4 The Company's accrued expenses and other liabilities at September 30, 2019 and 2018 were as follows: September 30, 2019 2018 (In millions) Accrued employee compensation and benefits $ 5.6 $ 6.7 Accrued property taxes 2.1 1.7 Accrued interest 13.5 0.4 Contract liabilities 2.5 — Deferred income 9.3 11.6 Accrued development costs 35.4 17.6 Other accrued expenses 8.4 9.6 Other liabilities 2.8 2.0 $ 79.6 $ 49.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | The Company's notes payable at their principal amounts, net of unamortized discounts and debt issuance costs, consist of the following: September 30, 2019 2018 (In millions) Unsecured: 3.75% convertible senior notes due 2020 $ 116.7 $ 111.7 8.0% senior notes due 2024 343.8 — Revolving credit facility — — $ 460.5 $ 111.7 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value at September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 382.8 $ 382.8 $ — $ — $ 382.8 Debt (b) 460.5 — 497.3 — 497.3 Fair Value at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 318.8 $ 318.8 $ — $ — $ 318.8 Restricted cash (a) 16.2 16.2 — — 16.2 Debt (b) 112.4 — 113.2 — 113.2 |
Earnings per Share Earnings per
Earnings per Share Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Attributable to Common Shareholders and Weighted Average Common Shares Outstanding | The computations of basic and diluted earnings per share are as follows: Year Ended Nine Months Ended Year Ended (In millions, except share data) Numerator: Continuing operations Net income from continuing operations attributable to Forestar Group Inc. $ 33.0 $ 68.8 $ 4.3 Discontinued operations Net income from discontinued operations available for diluted earnings per share $ — $ — $ 46.0 Denominator: Weighted average common shares outstanding — basic 41,974,429 41,938,987 42,142,690 Dilutive effect of stock-based compensation 30,712 30,069 238,333 Total weighted average shares outstanding — diluted 42,005,141 41,969,056 42,381,023 Anti-dilutive awards excluded from diluted weighted average shares — — 1,093,394 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense from continuing operations consists of: Year Ended Nine Months Ended Year Ended (In millions) Current tax expense (benefit): U.S. Federal $ (0.3 ) $ (0.5 ) $ 44.2 State and other 0.3 — 3.4 — (0.5 ) 47.6 Deferred tax expense (benefit): U.S. Federal 9.1 (23.5 ) (1.7 ) State and other 0.3 (1.3 ) (0.1 ) 9.4 (24.8 ) (1.8 ) Income tax expense (benefit) $ 9.4 $ (25.3 ) $ 45.8 |
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate on Continuing Operations | A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations follows: Year Ended Nine Months Ended Year Ended Federal statutory rate (benefit) 21 % 21 % 35 % State, net of federal benefit 1 4 3 Valuation allowance — (81 ) (42 ) Tax rate change due to new tax act — — 40 Noncontrolling interests (1 ) (1 ) (1 ) Stock based compensation — — 11 Goodwill — — 25 Merger costs — — 18 Other — — (1 ) Effective tax rate 21 % (57 )% 88 % |
Significant Components of Deferred Taxes | Significant components of deferred taxes are: September 30, 2019 September 30, 2018 (In millions) Deferred Tax Assets: Real estate $ 10.2 $ 11.0 Employee benefits 1.5 1.5 Net operating loss carryforwards 15.1 17.7 AMT credits 0.6 1.2 Accruals not deductible until paid 0.2 0.4 Gross deferred tax assets 27.6 31.8 Valuation allowance (3.3 ) (3.4 ) Deferred tax asset net of valuation allowance 24.3 28.4 Deferred Tax Liabilities: Deferral of profit on lot sales (6.4 ) — Convertible debt (0.5 ) (1.5 ) Gross deferred tax liabilities (6.9 ) (1.5 ) Net Deferred Tax Asset $ 17.4 $ 26.9 |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of tax benefits not recognized for book purposes is as follows: Year Ended Nine Months Ended Year Ended (In millions) Balance at beginning of year $ 1.6 $ 1.1 $ 2.5 Increases (decreases) for dispositions and other — 0.5 (1.4 ) Balance at end of year $ 1.6 $ 1.6 $ 1.1 |
Employee Benefit Plans Employ_2
Employee Benefit Plans Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table provides additional information related to time-based RSU activity during fiscal 2019 and in the nine months ended September 30, 2018 . Year Ended Nine Months Ended Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of period 86,500 $ 18.09 85,994 $ 17.54 Granted 149,400 20.24 12,000 22.35 Vested (23,740 ) 18.03 (500 ) 18.40 Cancelled (11,200 ) 18.39 (10,994 ) 18.40 Outstanding at end of period 200,960 $ 19.68 86,500 $ 18.09 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | September 30, 2019 2018 (Dollars in millions) Residential lots under contract to sell to D.R. Horton 12,800 5,500 Residential lots subject to right of first offer with D.R. Horton 10,600 8,100 Earnest money deposits from D.R. Horton for lots under contract $ 88.7 $ 45.3 Remaining purchase price of lots under contract with D.R. Horton $ 953.8 $ 522.2 During fiscal 2019 , the nine months ended September 30, 2018 and fiscal 2017 , the Company's residential lot sales totaled 4,132 , 1,024 and 937 , and lot sales revenues were $351.7 million , $72.0 million and $83.9 million . Lot and land sales to D.R. Horton during those periods were as follows. Year Ended Nine Months Ended Year Ended (Dollars in millions) Residential single-family lots sold to D.R. Horton 3,728 642 26 Residential lot sales revenues from sales to D.R. Horton $ 311.7 $ 43.6 $ 1.2 Residential tract acres sold to D.R. Horton 290 79 96 Residential tract sales revenues from sales to D.R. Horton $ 10.9 $ 2.0 $ 4.0 |
Summary of Quarterly Results _2
Summary of Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | Consolidated quarterly results of operations for fiscal year 2019 and the nine months ended September 30, 2018 were (in millions, except per share amounts): Three Months Ended December 31, 2018 Three Months Ended March 31, 2019 Three Months Ended June 30, 2019 Three Months Ended September 30, 2019 2019 Total revenues $ 38.5 $ 65.3 $ 88.2 $ 236.3 Income before income taxes 4.9 16.4 8.4 16.0 Income tax expense 1.0 3.6 1.5 3.4 Net income 3.9 12.8 6.9 12.6 Net income (loss) attributable to noncontrolling interests 0.6 2.7 — (0.1 ) Net income attributable to Forestar Group Inc. 3.3 10.1 6.9 12.7 Net income per share — basic $ 0.08 $ 0.24 $ 0.16 $ 0.30 Net income per share — diluted $ 0.08 $ 0.24 $ 0.16 $ 0.30 Three Months Ended March 31, 2018 Three Months Ended June 30, 2018 Three Months Ended September 30, 2018 2018 Total revenues $ 22.6 $ 23.6 $ 32.2 Income before income taxes 4.7 10.4 29.6 Income tax expense (benefit) 0.1 0.1 (25.6 ) Net income 4.6 10.3 55.2 Net income attributable to noncontrolling interests 0.1 0.9 0.3 Net income attributable to Forestar Group Inc. 4.5 9.4 54.9 Net income per share — basic $ 0.11 $ 0.22 $ 1.31 Net income per share — diluted $ 0.11 $ 0.22 $ 1.31 |
Transition Period Comparative_2
Transition Period Comparative Data (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Transition Period Comparative Data [Abstract] | |
Transition Period Comparative Data Table Text Block [Table Text Block] | The following table presents certain financial information for the nine months ended September 30, 2018 and 2017 (in millions, except per share amounts). For the Nine Months Ended September 30, 2018 2017 (Unaudited) Revenues $ 78.3 $ 83.5 Cost of sales 49.5 90.1 Selling, general and administrative expense 19.4 51.2 Equity in earnings of unconsolidated ventures (4.8 ) (10.9 ) Gain on sale of assets (27.8 ) (113.4 ) Interest expense 3.7 6.4 Interest and other income (6.4 ) (2.4 ) Income from continuing operations before taxes 44.7 62.5 Income tax (benefit) expense (25.3 ) 33.4 Net income from continuing operations 70.0 29.1 Income from discontinued operations, net of taxes — 38.8 Net income 70.0 67.9 Net income attributable to noncontrolling interests 1.2 0.1 Net income attributable to Forestar Group Inc. $ 68.8 $ 67.8 Weighted Average Common Shares Outstanding: Basic 41.9 42.2 Diluted 42.0 42.5 Net Income per Basic Share: Continuing operations $ 1.64 $ 0.69 Discontinued operations $ — $ 0.92 Net income per basic share $ 1.64 $ 1.61 Net Income per Diluted Share: Continuing operations $ 1.64 $ 0.68 Discontinued operations $ — $ 0.91 Net income per diluted share $ 1.64 $ 1.59 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property and Equipment Table (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 4.3 | $ 3.4 |
Less: accumulated depreciation | (1.9) | (1.7) |
Property Plant And Equipment, Net | 2.4 | 1.7 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 0.9 | 0.3 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 3.4 | $ 3.1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Text (Detail) $ in Millions | Sep. 30, 2019USD ($)Lot | Feb. 08, 2018USD ($)aLotProject | Oct. 05, 2017 | Sep. 30, 2018USD ($)Lot | Sep. 30, 2017USD ($) | Sep. 30, 2019USD ($)Lot | Dec. 31, 2017USD ($) | Oct. 01, 2018USD ($) |
Significant Accounting Policies [Line Items] | ||||||||
Real estate | $ 1,028.9 | $ 498 | $ 1,028.9 | |||||
Contract with Customer, Liability | 2.5 | 0 | 2.5 | |||||
Income (loss) discontinued operations, net of taxes | 0 | $ 38.8 | 0 | $ 46 | ||||
Depreciation expense of property and equipment | 0.2 | 0.3 | 0.4 | |||||
Inventory Write-down | 0.3 | 0.8 | 3.4 | |||||
Deferred Revenue | $ 9.3 | $ 11.6 | $ 9.3 | |||||
Number of Units in Real Estate Property | Lot | 38,300 | 20,100 | 38,300 | |||||
Related Party Transaction, Purchase Obligation from Parent | $ 953.8 | $ 522.2 | $ 953.8 | |||||
Minimum | Building and Building Improvements | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||
Minimum | Property and Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 2 years | |||||||
Maximum | Building and Building Improvements | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||||
Maximum | Property and Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||
Land and Land Improvements [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Real estate | 1,011.8 | 463.1 | $ 1,011.8 | |||||
Land [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Real estate | $ 17.1 | 34.9 | 17.1 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Starwood Land, L.P.. [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of Projects Sold | Project | 24 | |||||||
Purchase price of properties sold | $ 232 | |||||||
Proceeds from Sale of Real Estate | $ 217.5 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Starwood Land, L.P.. [Member] | Residential Real Estate [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of Lots | Lot | 750 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Starwood Land, L.P.. [Member] | Land and Land Improvements [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of Lots | Lot | 4,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Starwood Land, L.P.. [Member] | Land [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Area of Land | a | 730 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Starwood Land, L.P.. [Member] | Multifamily [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of Projects Sold | Project | 1 | |||||||
D.R. Horton, Inc. [Member] | D.R. Horton Merger Agreement [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Sale of Stock, Percentage of Ownership after Transaction | 66.00% | 75.00% | ||||||
D.R. Horton, Inc. [Member] | Under Contract [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Related Party Deposit Liabilities | $ 88.7 | $ 45.3 | $ 88.7 | |||||
Number of Units in Real Estate Property | Lot | 12,800 | 5,500 | 12,800 | |||||
Accounting Standards Update 2016-18 [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Increase (Decrease) in Restricted Cash | $ (23.8) | $ 39.8 | ||||||
Accounting Standards Update 2014-09 [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Real estate | $ 2.1 | $ 2.1 | ||||||
Contract with Customer, Liability | 2.5 | 2.5 | $ 6.4 | |||||
Deferred Revenue | (0.4) | (0.4) | ||||||
Pro Forma [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Real estate | 1,026.8 | 1,026.8 | ||||||
Contract with Customer, Liability | 0 | 0 | ||||||
Deferred Revenue | $ 9.7 | $ 9.7 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of SIgnificant Accounting Policies - Capitalized Interest (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Interest Costs Incurred [Abstract] | ||||
Interest Costs Incurred | $ 7.3 | $ 25.3 | ||
Interest expense | (3.7) | $ (6.4) | 0 | $ (8.5) |
Real Estate Inventory, Capitalized Interest Costs | 3.2 | 23.7 | $ 0.5 | |
Real Estate Inventory, Capitalized Interest Costs, Cost of Sales | $ (0.9) | $ (4.8) |
Segment Information - Segment R
Segment Information - Segment Revenues and Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | $ 78.3 | $ 83.5 | $ 428.3 | $ 114.3 | |
Cost of Goods and Services Sold | 49.5 | 90.1 | 362.7 | 112.6 | ||||||||
Selling, General and Administrative Expense | 19.4 | 51.2 | 28.9 | 75.3 | ||||||||
Equity in earnings of unconsolidated ventures | (4.8) | (10.9) | (0.5) | (17.8) | ||||||||
Gain of sale of assets | (27.8) | (113.4) | (3) | (113.4) | ||||||||
Interest expense | (3.7) | (6.4) | 0 | (8.5) | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0.6 | |||||||||
Interest and other income | (6.4) | (2.4) | (5.5) | (3.6) | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 16 | 8.4 | 16.4 | 4.9 | 29.6 | 10.4 | 4.7 | 44.7 | 62.5 | 45.7 | 52.1 | |
Less: Net income attributable to noncontrolling interest | 0.1 | $ 0 | $ (2.7) | $ (0.6) | $ (0.3) | $ (0.9) | $ (0.1) | (1.2) | $ (0.1) | (3.3) | (2) | |
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc. | 43.5 | 50.1 | ||||||||||
Total assets | 1,455.7 | 893.1 | 1,455.7 | |||||||||
Investment in unconsolidated ventures | $ 7.3 | 11.7 | $ 7.3 | |||||||||
Operating Segments | Real Estate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 78.3 | 112.7 | ||||||||||
Cost of Goods and Services Sold | 48.9 | 67.8 | ||||||||||
Selling, General and Administrative Expense | 7.1 | 15.9 | ||||||||||
Equity in earnings of unconsolidated ventures | (4.8) | (16.4) | ||||||||||
Gain of sale of assets | (18.6) | (1.9) | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Interest and other income | (1.8) | (2) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 47.5 | 49.3 | ||||||||||
Less: Net income attributable to noncontrolling interest | (1.2) | (2) | ||||||||||
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc. | 46.3 | 47.3 | ||||||||||
Total assets | 522.1 | |||||||||||
Investment in unconsolidated ventures | 11.7 | |||||||||||
Operating Segments | Mineral [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 1.5 | |||||||||||
Cost of Goods and Services Sold | 38.3 | |||||||||||
Selling, General and Administrative Expense | 1.4 | |||||||||||
Equity in earnings of unconsolidated ventures | (1.4) | |||||||||||
Gain of sale of assets | (82.4) | |||||||||||
Interest expense | 0 | |||||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Interest and other income | 0 | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 45.6 | |||||||||||
Less: Net income attributable to noncontrolling interest | 0 | |||||||||||
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc. | 45.6 | |||||||||||
Operating Segments | Other Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 0 | 0.1 | ||||||||||
Cost of Goods and Services Sold | 0.6 | 6.5 | ||||||||||
Selling, General and Administrative Expense | 0.3 | 0.4 | ||||||||||
Equity in earnings of unconsolidated ventures | 0 | 0 | ||||||||||
Gain of sale of assets | (9.2) | (0.4) | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Interest and other income | 0 | 0 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 8.3 | (6.4) | ||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | ||||||||||
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc. | 8.3 | (6.4) | ||||||||||
Total assets | 1.9 | |||||||||||
Investment in unconsolidated ventures | 0 | |||||||||||
Items Not Allocated To Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 0 | 0 | ||||||||||
Cost of Goods and Services Sold | 0 | 0 | ||||||||||
Selling, General and Administrative Expense | 12 | 57.6 | ||||||||||
Equity in earnings of unconsolidated ventures | 0 | 0 | ||||||||||
Gain of sale of assets | 0 | (28.7) | ||||||||||
Interest expense | (3.7) | (8.5) | ||||||||||
Loss on extinguishment of debt | 0 | (0.6) | ||||||||||
Interest and other income | (4.6) | (1.6) | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (11.1) | (36.4) | ||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | ||||||||||
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc. | (11.1) | (36.4) | ||||||||||
Gain (Loss) on Sale of Properties | 0 | $ 28.7 | ||||||||||
Total assets | 369.1 | |||||||||||
Investment in unconsolidated ventures | $ 0 | |||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Oil and Gas Properties [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gain of sale of assets | $ (82.4) | |||||||||||
Purchase price of properties sold | 85.7 | |||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Oil and Gas Properties [Member] | Continuing Operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill, Impairment Loss | $ 37.9 |
Segment Information - Items Not
Segment Information - Items Not Allocated to Segments (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Gain of sale of assets | $ 27.8 | $ 113.4 | $ 3 | $ 113.4 |
Interest expense | 3.7 | 6.4 | 0 | 8.5 |
Loss on extinguishment of debt, net | 0 | 0 | (0.6) | |
Other corporate non-operating income | (6.4) | $ (2.4) | $ (5.5) | (3.6) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (43.5) | (50.1) | ||
Items Not Allocated To Segments | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expense | 11.5 | 50.4 | ||
Stock-based and long-term incentive compensation expense | 0.5 | 7.2 | ||
Gain (Loss) on Sale of Properties | 0 | (28.7) | ||
Gain of sale of assets | 0 | 28.7 | ||
Interest expense | 3.7 | 8.5 | ||
Loss on extinguishment of debt, net | 0 | 0.6 | ||
Other corporate non-operating income | (4.6) | (1.6) | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 11.1 | 36.4 | ||
General and Administrative Expense | Starwood Capital Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss on Contract Termination | 20 | |||
D.R. Horton Merger Agreement [Member] | General and Administrative Expense | ||||
Segment Reporting Information [Line Items] | ||||
Payments for Merger Related Costs | 37.2 | |||
Professional Fees | 11.8 | |||
Severance Costs | $ 5.4 |
Segment Information - Text (Det
Segment Information - Text (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)segment | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Asset impairments | $ 0.3 | $ 1.3 | $ 47.2 | ||||||||
Gain of sale of assets | 27.8 | $ 113.4 | $ 3 | 113.4 | |||||||
Number of business segments | segment | 1 | ||||||||||
Document Period End Date | Sep. 30, 2019 | ||||||||||
Revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | 78.3 | $ 83.5 | $ 428.3 | 114.3 |
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Asset impairments | $ 5.8 | ||||||||||
D.R. Horton, Inc. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 326.6 | ||||||||||
Other Segments [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain of sale of assets | 9.2 | ||||||||||
Purchase price of properties sold | 10.5 | ||||||||||
FMF Littleton [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain of sale of assets | $ 14.6 |
Segment Information Assets Allo
Segment Information Assets Allocated by Segment (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | $ 382.8 | $ 318.8 |
Restricted cash | 0 | 16.2 |
Real estate | 1,028.9 | 498 |
Investment in unconsolidated ventures | 7.3 | 11.7 |
Income taxes receivable | 3.2 | 4.4 |
Property and equipment, net | 2.4 | 1.7 |
Deferred tax asset, net | 17.4 | 26.9 |
Other assets | 13.7 | 15.4 |
Total assets | $ 1,455.7 | 893.1 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | 0 | |
Restricted cash | 0 | |
Real estate | 498 | |
Investment in unconsolidated ventures | 11.7 | |
Income taxes receivable | 0 | |
Property and equipment, net | 0 | |
Deferred tax asset, net | 0 | |
Other assets | 12.4 | |
Total assets | 522.1 | |
Operating Segments | Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | 0 | |
Restricted cash | 0 | |
Real estate | 0 | |
Investment in unconsolidated ventures | 0 | |
Income taxes receivable | 0 | |
Property and equipment, net | 1.5 | |
Deferred tax asset, net | 0 | |
Other assets | 0.4 | |
Total assets | 1.9 | |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | 318.8 | |
Restricted cash | 16.2 | |
Real estate | 0 | |
Investment in unconsolidated ventures | 0 | |
Income taxes receivable | 4.4 | |
Property and equipment, net | 0.2 | |
Deferred tax asset, net | 26.9 | |
Other assets | 2.6 | |
Total assets | $ 369.1 |
Real Estate - Real Estate Table
Real Estate - Real Estate Table (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Real Estate Properties [Line Items] | ||
Real estate | $ 1,028.9 | $ 498 |
Land and Land Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | 1,011.8 | 463.1 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | $ 17.1 | $ 34.9 |
Real Estate - Text (Detail)
Real Estate - Text (Detail) $ in Millions | Feb. 08, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)a |
Real Estate Properties [Line Items] | |||
Document Period End Date | Sep. 30, 2019 | ||
Payments to Acquire Residential Real Estate | $ 559.4 | ||
Payments to Develop Real Estate Assets | 290.3 | ||
Real estate | $ 498 | 1,028.9 | |
Land and Land Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate | 463.1 | $ 1,011.8 | |
Starwood Land, L.P.. [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Real Estate Properties [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 232 | ||
Proceeds from Sale of Real Estate | $ 217.5 | ||
Gain (Loss) on Sale of Project | $ 0.7 | ||
Equity Method Investments [Member] | Other Customer [Member] | |||
Real Estate Properties [Line Items] | |||
Area of Land | a | 63 | ||
Proceeds from Sale of Real Estate | $ 44.2 | ||
Maximum | D.R. Horton, Inc. [Member] | |||
Real Estate Properties [Line Items] | |||
Related Party Transaction, Rate | 16.00% | ||
Minimum | D.R. Horton, Inc. [Member] | |||
Real Estate Properties [Line Items] | |||
Related Party Transaction, Rate | 12.00% | ||
Contract Termination [Member] | D.R. Horton, Inc. [Member] | |||
Real Estate Properties [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 2.1 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Contract with Customer, Liability | $ 2.5 | $ 0 | $ 2.5 | ||||||||
Revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | 78.3 | $ 83.5 | 428.3 | $ 114.3 |
Other Revenue (Expense) from Real Estate Operations | 0.7 | 2.3 | 2.8 | ||||||||
Real Estate | Residential Real Estate [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 72 | 351.7 | 83.9 | ||||||||
Land [Member] | Residential Real Estate [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 3.6 | 55.8 | 14.6 | ||||||||
Land [Member] | Commercial Real Estate [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2 | $ 18.5 | $ 13 |
Investment In Unconsolidated _3
Investment In Unconsolidated Ventures - Summarized Balance Sheet Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Venture Assets | $ 15.3 | $ 27.5 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Venture Liabilities and Equity | 15.3 | 27.5 |
Investment in unconsolidated ventures | 7.3 | 11.7 |
Cash and Cash Equivalents [Member] | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Venture Assets | 1.6 | 10.2 |
Inventories [Member] | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Venture Assets | 13.6 | 17.2 |
Other Assets [Member] | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Venture Assets | 0.1 | 0.1 |
Accounts Payable and Accrued Liabilities [Member] | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Venture Liabilities | 0.3 | 0.6 |
Equity [Member] | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Venture Equity | $ 15 | $ 26.9 |
Investment In Unconsolidated _4
Investment In Unconsolidated Ventures - Summarized Income Statement Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Revenues | $ 22.2 | $ 1.9 | $ 65.7 | |
Earnings (Loss) | 15.1 | 1.3 | 39.2 | |
Income (Loss) from Equity Method Investments | $ 4.8 | $ 10.9 | $ 0.5 | $ 17.8 |
Investment In Unconsolidated _5
Investment In Unconsolidated Ventures - Text (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2019USD ($)venture | Dec. 31, 2017USD ($) | |
Gain (Loss) on Disposition of Assets | $ 27,800,000 | $ 113,400,000 | $ 3,000,000 | $ 113,400,000 |
Asset impairments | 300,000 | $ 1,300,000 | 47,200,000 | |
Number of Equity Method Investments | venture | 4 | |||
Payments to Acquire Equity Method Investments | 0 | $ 0 | 4,500,000 | |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 800,000 | 100,000 | 11,400,000 | |
Equity Method Investment, Summarized Financial Information, Assets | 27,500,000 | 15,300,000 | ||
Investment in unconsolidated ventures | 11,700,000 | 7,300,000 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 22,200,000 | 1,900,000 | 65,700,000 | |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 15,100,000 | 1,300,000 | 39,200,000 | |
Income (Loss) from Equity Method Investments | 4,800,000 | $ 10,900,000 | 500,000 | 17,800,000 |
Lm Land Holdings [Member] | ||||
Equity Method Investment, Summarized Financial Information, Assets | 21,600,000 | |||
Equity Method Investment Summarized Financial Information, Equity | 21,200,000 | |||
Investment in unconsolidated ventures | 8,900,000 | |||
Equity Method Investment, Summarized Financial Information, Revenue | 17,400,000 | |||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 18,100,000 | |||
Income (Loss) from Equity Method Investments | 6,400,000 | |||
FOR/SR Forsyth LLC [Member] | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 11,000,000 | |||
Gain (Loss) on Disposition of Assets | 2,000,000 | |||
FMF Littleton [Member] | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 19,200,000 | |||
Gain (Loss) on Disposition of Assets | 14,600,000 | |||
CREA FMF [Member] | ||||
Asset impairments | 3,000,000 | |||
Accounts Payable and Accrued Liabilities [Member] | ||||
Equity Method Investment, Summarized Financial Information, Liabilities | 600,000 | 300,000 | ||
Accounts Payable and Accrued Liabilities [Member] | Lm Land Holdings [Member] | ||||
Equity Method Investment, Summarized Financial Information, Liabilities | 400,000 | |||
Gain (Loss) on Investments [Member] | Lm Land Holdings [Member] | ||||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 5,700,000 | |||
Equity Method Investments [Member] | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 4,300,000 | $ 5,000,000 | ||
Equity Method Investments [Member] | Two Hundred Forty Two Llc [Member] | ||||
Gain (Loss) on Disposition of Assets | 19,000,000 | |||
Proceeds from Sale of Real Estate | 71,800,000 | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 12,000,000 | |||
Income (Loss) from Equity Method Investments | 7,800,000 | |||
Equity Method Investments [Member] | CL Realty [Member] | ||||
Gain (Loss) on Disposition of Assets | 6,600,000 | |||
Proceeds from Sale of Real Estate | 9,700,000 | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 4,300,000 | |||
Income (Loss) from Equity Method Investments | $ 3,300,000 | |||
Starwood Land, L.P.. [Member] | Equity Method Investments [Member] | ||||
Number of Equity Method Investments Sold | 8 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increase (decrease) in accounts payable and other accrued liabilities | $ 18,400,000 | $ 41,900,000 | $ (7,800,000) | |
Disposal Group, Including Discontinued Operation, Revenue | 0 | |||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 0 | |||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | (200,000) | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 200,000 | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 200,000 | |||
Discontinued Operation, Tax Effect of Discontinued Operation | 46,000,000 | |||
Net income from discontinued operations available for diluted earnings per share | 0 | $ 38,800,000 | 0 | 46,000,000 |
Gain (Loss) on Disposition of Assets | 27,800,000 | $ 113,400,000 | 3,000,000 | 113,400,000 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (2,800,000) | |||
Proceeds from Sales of Assets, Investing Activities | $ 258,300,000 | $ 0 | 130,100,000 | |
Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increase (decrease) in accounts payable and other accrued liabilities | (3,000,000) | |||
Gain (Loss) on Disposition of Assets | 200,000 | |||
Proceeds from Sales of Assets, Investing Activities | 200,000 | |||
Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale of Stock, Consideration Received on Transaction | $ 100,000 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | ||
Document Period End Date | Sep. 30, 2019 | |
Accounts and Financing Receivable, after Allowance for Credit Loss | $ 1.1 | $ 2.7 |
Prepaid Expense | 3.4 | 3.1 |
Deposits Assets | 5.1 | 4.1 |
Intangible Assets, Net (Excluding Goodwill) | 0 | 0.5 |
Other Assets, Miscellaneous | 4.1 | 5 |
Other assets | 13.7 | 15.4 |
Employee-related Liabilities | 5.6 | 6.7 |
Accrual for Taxes Other than Income Taxes | 2.1 | 1.7 |
Interest Payable | 13.5 | 0.4 |
Contract with Customer, Liability | 2.5 | 0 |
Deferred Revenue | 9.3 | 11.6 |
Accrued Development Costs | 35.4 | 17.6 |
Other Accrued Liabilities | 8.4 | 9.6 |
Other Liabilities | 2.8 | 2 |
Accrued expenses and other liabilities | $ 79.6 | $ 49.6 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Line of Credit Facility [Line Items] | ||
Debt | $ 460.5 | $ 111.7 |
Long-term Line of Credit | 0 | |
Convertible Debt | ||
Line of Credit Facility [Line Items] | ||
Debt | 116.7 | 111.7 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt | $ 343.8 | 0 |
Other Indebtedness | ||
Line of Credit Facility [Line Items] | ||
Debt | $ 0 |
Debt - Text (Detail)
Debt - Text (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 380 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 570 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 339.6 | |||
Letter of Credit, Maximum Borrowing Capacity | $ 100 | |||
Letter of Credit, Maximum Borrowing Capacity, Percentage of Revolving Credit Commitment | 50.00% | |||
Proceeds from Long-term Lines of Credit | $ 85 | |||
Long-term Line of Credit | 0 | |||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 29.7 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Maturity Date | Aug. 16, 2021 | |||
Convertible Debt | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 118.9 | |||
Debt Instrument, Unamortized Discount | $ 2 | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.00% | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 16.8 | |||
Debt Issuance Costs, Net | $ 0.2 | $ 0.7 | ||
Debt Instrument, Maturity Date | Mar. 1, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||
Senior Notes [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 350 | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | |||
Debt Issuance Costs, Net | $ 6.2 | |||
Debt Instrument, Maturity Date | Apr. 15, 2024 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Maturity Date | Oct. 2, 2022 |
Debt Debt - Phantom (Details)
Debt Debt - Phantom (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Repayments of Long-term Lines of Credit | $ 85 |
Senior Notes [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Debt Instrument, Maturity Date | Apr. 15, 2024 |
Convertible Debt | |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% |
Debt Instrument, Maturity Date | Mar. 1, 2020 |
Fair Value, Not Measured at Fai
Fair Value, Not Measured at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | $ 382.8 | $ 318.8 |
Cash and Cash Equivalents, Fair Value Disclosure | 382.8 | 318.8 |
Restricted cash | 0 | 16.2 |
Other Assets, Fair Value Disclosure | 16.2 | |
Debt | 460.5 | 111.7 |
Long-term Debt, Fair Value | 497.3 | 113.2 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 382.8 | 318.8 |
Other Assets, Fair Value Disclosure | 16.2 | |
Long-term Debt, Fair Value | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | |
Long-term Debt, Fair Value | 497.3 | 113.2 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | |
Long-term Debt, Fair Value | 0 | 0 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 460.5 | $ 112.4 |
Earnings per Share Earnings p_2
Earnings per Share Earnings per Share - Table (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Continuing operations | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 70 | $ 29.1 | $ 36.3 | $ 6.3 | |||||||
Less: Net income attributable to noncontrolling interest | $ 0.1 | $ 0 | $ (2.7) | $ (0.6) | $ (0.3) | $ (0.9) | $ (0.1) | (1.2) | (0.1) | (3.3) | (2) |
Net Income (Loss) Available to Common Stockholders, Basic | 68.8 | 33 | 4.3 | ||||||||
Discontinued operations | |||||||||||
Income (loss) discontinued operations, net of taxes | $ 0 | $ 38.8 | $ 0 | $ 46 | |||||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | 41,938,987 | 42,200,000 | 41,974,429 | 42,142,690 | |||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 30,069 | 30,712 | 238,333 | ||||||||
Weighted average common shares outstanding - diluted | 41,969,056 | 42,500,000 | 42,005,141 | 42,381,023 | |||||||
Anti-dilutive awards excluded from diluted weighted average shares outstanding | 0 | 0 | 1,093,394 |
Earnings per Share Earnings p_3
Earnings per Share Earnings per Share - Text (Details) | Sep. 30, 2019$ / shares |
Convertible Debt | |
Debt Instrument [Line Items] | |
Exercise price of unit | $ 51.42 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Table (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Current tax provision: | |||||||||||
U.S. Federal | $ (0.5) | $ (0.3) | $ 44.2 | ||||||||
State and other | 0 | 0.3 | 3.4 | ||||||||
Total | (0.5) | 0 | 47.6 | ||||||||
Deferred tax provision: | |||||||||||
U.S. Federal | (23.5) | 9.1 | (1.7) | ||||||||
State and other | (1.3) | 0.3 | (0.1) | ||||||||
Total | (24.8) | 9.4 | (1.8) | ||||||||
Income tax expense | $ 3.4 | $ 1.5 | $ 3.6 | $ 1 | $ (25.6) | $ 0.1 | $ 0.1 | $ (25.3) | $ 33.4 | $ 9.4 | $ 45.8 |
Income Taxes - Reconciliation T
Income Taxes - Reconciliation Table (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate (benefit) | 21.00% | 21.00% | 35.00% |
State, net of federal benefit | 4.00% | 1.00% | 3.00% |
Valuation allowance | (81.00%) | 0.00% | (42.00%) |
Tax rate change due to new tax act | 0.00% | 0.00% | 40.00% |
Noncontrolling interests | (1.00%) | (1.00%) | (1.00%) |
Stock based compensation | 0.00% | 0.00% | 11.00% |
Goodwill | 0.00% | 0.00% | 25.00% |
Merger costs | 0.00% | 0.00% | 18.00% |
Other | 0.00% | 0.00% | (1.00%) |
Effective tax rate | (57.00%) | 21.00% | 88.00% |
Income Taxes - Deferred Taxes T
Income Taxes - Deferred Taxes Table (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred Tax Assets: | ||
Real estate | $ 10.2 | $ 11 |
Employee benefits | 1.5 | 1.5 |
Net operating loss carryforwards | 15.1 | 17.7 |
AMT credits | 0.6 | 1.2 |
Accruals not deductible until paid | 0.2 | 0.4 |
Gross deferred tax assets | 27.6 | 31.8 |
Valuation allowance | (3.3) | (3.4) |
Deferred tax asset net of valuation allowance | 24.3 | 28.4 |
Deferred Tax Liabilities, Tax Deferred Income | (6.4) | 0 |
Deferred Tax Liabilities: | ||
Convertible debt | (0.5) | (1.5) |
Gross deferred tax liabilities | (6.9) | (1.5) |
Deferred tax asset, net | $ 17.4 | $ 26.9 |
Income Taxes Income Taxes - Unr
Income Taxes Income Taxes - Unrecognized Tax Benefits Table (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 1.1 | $ 1.6 | $ 2.5 |
Increases (decreases) for dispositions and other | 0.5 | 0 | (1.4) |
Balance at end of year | $ 1.6 | $ 1.6 | $ 1.1 |
Income Taxes - Text (Detail)
Income Taxes - Text (Detail) - USD ($) | Sep. 30, 2019 | Oct. 05, 2017 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,600,000 | $ 1,600,000 | |||
Federal statutory rate (benefit) | 21.00% | 21.00% | 35.00% | ||
Net operating loss carryforwards | 15,100,000 | $ 17,700,000 | $ 15,100,000 | ||
Deferred Tax Assets, Valuation Allowance | (3,300,000) | (3,400,000) | (3,300,000) | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0 | 0 | $ 0 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 0 | $ 0 | 0 | $ 0 | |
D.R. Horton Merger Agreement [Member] | D.R. Horton, Inc. [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 66.00% | 75.00% | |||
Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 11,400,000 | 11,400,000 | |||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 3,700,000 | 3,700,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 3,300,000 | 3,300,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 400,000 | 400,000 | |||
D.R. Horton, Inc. [Member] | Reimbursement From Parent [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $ 400,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2019 | Oct. 05, 2017 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||
Equity Securities Registered, Value | $ 500 | ||||
Proceeds from Issuance of Common Stock | $ 0 | $ 100.7 | $ 0 | ||
Common Stock, Shares Authorized | $ 394.3 | $ 394.3 | |||
Shares Issued, Price Per Share | $ 17.50 | $ 17.50 | |||
D.R. Horton Merger Agreement [Member] | D.R. Horton, Inc. [Member] | |||||
Class of Stock [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 66.00% | 75.00% | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Proceeds from Issuance of Common Stock | $ 6 | ||||
Shares Issued During Period, New Issues | 6,037,500 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 86,500 | 200,960 | 85,994 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 18.09 | $ 19.68 | $ 17.54 |
Defined Contribution Plan, Cost | $ 0.1 | $ 0.2 | $ 0.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | 0.4 | 14.9 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 2.6 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 12,000 | 149,400 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 22.35 | $ 20.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 500 | 23,740 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 18.40 | $ 18.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 10,994 | 11,200 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 18.40 | $ 18.39 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Payment Arrangement, Expense | $ 0.3 | $ 1.3 | $ 5 |
Restricted Stock Units (RSUs) [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Restricted Stock Units (RSUs) [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Other [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Payment Arrangement, Expense | $ 0.6 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Special Assessment Bond | $ 158.8 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 0.6 | 0.7 | $ 2.1 |
Operating lease future payments, 2019 | 0.7 | ||
Operating lease future payments, 2020 | 0.6 | ||
Operating lease future payments, 2021 | 0.5 | ||
Operating lease future payments, 2022 | 0.4 | ||
Operating lease future payments, 2023 | 0.3 | ||
Operating lease future payments, thereafter | 0 | ||
Line of Credit [Member] | |||
Operating Leased Assets [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 29.7 |
Related Party Transactions Re_2
Related Party Transactions Related Party Transactions - Text (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)aLot | Sep. 30, 2017USD ($) | Sep. 30, 2019USD ($)aLot | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||
Gain of sale of assets | $ 27,800,000 | $ 113,400,000 | $ 3,000,000 | $ 113,400,000 |
Income (Loss) from Equity Method Investments | $ 4,800,000 | $ 10,900,000 | $ 500,000 | $ 17,800,000 |
Number of Units in Real Estate Property | Lot | 20,100 | 38,300 | ||
Number of Lots Sold | 1,024 | 4,132 | 937 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 43,500,000 | $ 50,100,000 | ||
Deferred Revenue | 11,600,000 | $ 9,300,000 | ||
Real estate | 498,000,000 | 1,028,900,000 | ||
Due to Related Parties, Current | 3,300,000 | 2,200,000 | ||
Related Party Transaction, Purchase Obligation from Parent | 522,200,000 | 953,800,000 | ||
D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 900,000 | 2,100,000 | ||
Related Party Transaction, Purchases from Related Party | 600,000 | 2,400,000 | ||
Deferred Revenue, Period Increase (Decrease) | (6,400,000) | 4,000,000 | ||
General and Administrative Expense | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 900,000 | $ 1,400,000 | ||
D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of Lots Sold | 642 | 3,728 | 26 | |
Revenue from Related Parties | $ 43,600,000 | $ 311,700,000 | $ 1,200,000 | |
Under Contract [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of Units in Real Estate Property | Lot | 5,500 | 12,800 | ||
Related Party Deposit Liabilities | $ 45,300,000 | $ 88,700,000 | ||
Right of First Offer [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of Units in Real Estate Property | Lot | 8,100 | 10,600 | ||
Land and Land Improvements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate | $ 463,100,000 | $ 1,011,800,000 | ||
Land [Member] | ||||
Related Party Transaction [Line Items] | ||||
Real estate | $ 34,900,000 | $ 17,100,000 | ||
Land [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of Lots Sold | 79 | 290 | 96 | |
Revenue from Related Parties | $ 2,000,000 | $ 10,900,000 | $ 4,000,000 | |
Other Expense [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 15,200,000 | 13,100,000 | ||
Deposits [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 21,200,000 | $ 34,500,000 | ||
Equity Method Investments [Member] | Other Customer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Area of Land | a | 63 | |||
Proceeds from Sale of Real Estate | $ 44,200,000 | |||
Lm Land Holdings [Member] | ||||
Related Party Transaction [Line Items] | ||||
Income (Loss) from Equity Method Investments | $ 6,400,000 | |||
Lm Land Holdings [Member] | Equity Method Investments [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 37.50% | |||
Income (Loss) from Equity Method Investments | $ 2,500,000 | |||
Area of Land | a | 40 | |||
Proceeds from Sale of Real Estate | $ 7,800,000 | |||
Real Estate | Residential Real Estate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 72,000,000 | 351,700,000 | $ 83,900,000 | |
Reimbursement From Parent [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 400,000 | |||
Contract Termination [Member] | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 2,100,000 | |||
Maximum | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Rate | 16.00% | |||
Minimum | D.R. Horton, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Rate | 12.00% |
Summary of Quarterly Results _3
Summary of Quarterly Results of Operations (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | $ 78.3 | $ 83.5 | $ 428.3 | $ 114.3 |
Income (loss) before taxes | 16 | 8.4 | 16.4 | 4.9 | 29.6 | 10.4 | 4.7 | 44.7 | 62.5 | 45.7 | 52.1 |
Income Tax Expense (Benefit) | 3.4 | 1.5 | 3.6 | 1 | (25.6) | 0.1 | 0.1 | (25.3) | 33.4 | 9.4 | 45.8 |
Consolidated net income | 12.6 | 6.9 | 12.8 | 3.9 | 55.2 | 10.3 | 4.6 | 70 | 67.9 | 36.3 | 52.3 |
Net Income (Loss) Attributable to Noncontrolling Interest | (0.1) | 0 | 2.7 | 0.6 | 0.3 | 0.9 | 0.1 | 1.2 | 0.1 | 3.3 | 2 |
Net income (loss) attributable to Forestar Group Inc. | $ 12.7 | $ 6.9 | $ 10.1 | $ 3.3 | $ 54.9 | $ 9.4 | $ 4.5 | $ 68.8 | $ 67.8 | $ 33 | $ 50.3 |
Net income (loss) per share -- basic | |||||||||||
Basic (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | $ 1.64 | $ 1.61 | $ 0.79 | $ 1.19 |
Net income (loss) per share -- diluted | |||||||||||
Diluted (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | $ 1.64 | $ 1.59 | $ 0.79 | $ 1.19 |
Transition Period Comparative_3
Transition Period Comparative Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2017 | |
Transition Period Comparative Data [Abstract] | |||||||||||
Total revenues | $ 236.3 | $ 88.2 | $ 65.3 | $ 38.5 | $ 32.2 | $ 23.6 | $ 22.6 | $ 78.3 | $ 83.5 | $ 428.3 | $ 114.3 |
Cost of Goods and Services Sold | 49.5 | 90.1 | 362.7 | 112.6 | |||||||
Selling, General and Administrative Expense | 19.4 | 51.2 | 28.9 | 75.3 | |||||||
Equity in earnings of unconsolidated ventures | (4.8) | (10.9) | (0.5) | (17.8) | |||||||
Gain of sale of assets | (27.8) | (113.4) | (3) | (113.4) | |||||||
Interest expense | 3.7 | 6.4 | 0 | 8.5 | |||||||
Other Nonoperating Income | 6.4 | 2.4 | 5.5 | 3.6 | |||||||
Income (loss) before taxes | 16 | 8.4 | 16.4 | 4.9 | 29.6 | 10.4 | 4.7 | 44.7 | 62.5 | 45.7 | 52.1 |
Income tax expense (benefit) | (3.4) | (1.5) | (3.6) | (1) | 25.6 | (0.1) | (0.1) | 25.3 | (33.4) | (9.4) | (45.8) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 70 | 29.1 | 36.3 | 6.3 | |||||||
Income (loss) discontinued operations, net of taxes | 0 | 38.8 | 0 | 46 | |||||||
Consolidated net income | 12.6 | 6.9 | 12.8 | 3.9 | 55.2 | 10.3 | 4.6 | 70 | 67.9 | 36.3 | 52.3 |
Net Income (Loss) Attributable to Noncontrolling Interest | (0.1) | 0 | 2.7 | 0.6 | 0.3 | 0.9 | 0.1 | 1.2 | 0.1 | 3.3 | 2 |
Net income (loss) attributable to Forestar Group Inc. | $ 12.7 | $ 6.9 | $ 10.1 | $ 3.3 | $ 54.9 | $ 9.4 | $ 4.5 | $ 68.8 | $ 67.8 | $ 33 | $ 50.3 |
Basic (shares) | 41,938,987 | 42,200,000 | 41,974,429 | 42,142,690 | |||||||
Diluted (shares) | 41,969,056 | 42,500,000 | 42,005,141 | 42,381,023 | |||||||
Continuing operations, basic (usd per share) | $ 1.64 | $ 0.69 | $ 0.79 | $ 0.10 | |||||||
Discontinued operations, basic (usd per share) | 0 | 0.92 | 0 | 1.09 | |||||||
Basic (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | 1.64 | 1.61 | 0.79 | 1.19 |
Continuing operations, diluted (usd per share) | 1.64 | 0.68 | 0.79 | 0.10 | |||||||
Discontinued operations, diluted (usd per share) | 0 | 0.91 | 0 | 1.09 | |||||||
Diluted (usd per share) | $ 0.30 | $ 0.16 | $ 0.24 | $ 0.08 | $ 1.31 | $ 0.22 | $ 0.11 | $ 1.64 | $ 1.59 | $ 0.79 | $ 1.19 |