Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Jan. 22, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'HORTON D R INC /DE/ | ' |
Entity Central Index Key | '0000882184 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 323,568,331 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $820.10 | $936.50 | ||
Inventories: | ' | ' | ||
Other assets | 492.9 | 517.4 | ||
Total assets | 8,927.20 | 8,856.40 | ||
LIABILITIES | ' | ' | ||
Notes payable | 3,461.90 | 3,509 | ||
Total liabilities | 4,727.30 | 4,795 | ||
Commitments and contingencies (Note L) | ' | ' | ||
EQUITY | ' | ' | ||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued | 0 | 0 | ||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 330,692,895 shares issued and 323,492,824 shares outstanding at December 31, 2013 and 330,143,689 shares issued and 322,943,618 shares outstanding at September 30, 2013 | 3.3 | 3.3 | ||
Additional paid-in capital | 2,057.20 | 2,042 | ||
Retained earnings | 2,268.70 | 2,145.60 | ||
Treasury stock, 7,200,071 shares at December 31, 2013 and September 30, 2013, at cost | -134.3 | -134.3 | ||
Accumulated other comprehensive income | 1.9 | 1.9 | ||
Total stockholders' equity | 4,196.80 | 4,058.50 | ||
Noncontrolling interests | 3.1 | 2.9 | ||
Total equity | 4,199.90 | 4,061.40 | ||
Total liabilities and equity | 8,927.20 | 8,856.40 | ||
Homebuilding | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 801.1 | 913.3 | ||
Restricted cash | 81.1 | 77.8 | ||
Inventories: | ' | ' | ||
Construction in progress and finished homes | 2,721.80 | 2,498 | ||
Residential land and lots - developed and under development | 3,300.50 | 3,227.30 | ||
Land held for development | 473.8 | 472.1 | ||
Total inventories | 6,496.10 | [1] | 6,197.40 | [1] |
Deferred income taxes, net of valuation allowance of $31.1 million and $31.0 million at December 31, 2013 and September 30, 2013, respectively | 578.5 | 586.6 | ||
Property and equipment, net | 117.5 | 106.7 | ||
Other assets | 441.1 | 460.5 | ||
Goodwill | 41.2 | 38.9 | ||
Total assets | 8,556.60 | 8,381.20 | ||
LIABILITIES | ' | ' | ||
Accounts Payable and Other Accrued Liabilities | 342.1 | 346.4 | ||
Accrued expenses and other liabilities | 884.3 | 886 | ||
Notes payable | 3,276.10 | 3,270.40 | ||
Total liabilities | 4,502.50 | 4,502.80 | ||
Financial Services | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 19 | 23.2 | ||
Inventories: | ' | ' | ||
Mortgage loans held for sale | 299.8 | 395.1 | ||
Other assets | 51.8 | 56.9 | ||
Total assets | 370.6 | 475.2 | ||
LIABILITIES | ' | ' | ||
Accounts payable and other liabilities | 39 | 53.6 | ||
Mortgage repurchase facility, maturing 2014 | 185.8 | 238.6 | ||
Total liabilities | $224.80 | $292.20 | ||
[1] | Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision maker. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Valuation allowance for deferred income taxes | $31.10 | $31 |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 330,692,895 | 330,143,689 |
Common stock, shares outstanding | 323,492,824 | 322,943,618 |
Treasury stock, shares | 7,200,071 | 7,200,071 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Gross profit: | ' | ' | ||
Interest expense | $0 | ($4.20) | ||
Income (loss) before income taxes | 189.7 | [1] | 107.9 | [1] |
Income tax expense (benefit) | 66.5 | 41.6 | ||
Net income | 123.2 | 66.3 | ||
Other comprehensive income (loss), net of income tax: | ' | ' | ||
Comprehensive income | 123.2 | 66.2 | ||
Basic net income per common share (in dollars per share) | $0.38 | $0.21 | ||
Net income per common share assuming dilution (in dollars per share) | $0.36 | $0.20 | ||
Cash dividends declared per common share (in dollars per share) | $0 | $0.19 | ||
Homebuilding [Member] | ' | ' | ||
Revenues: | ' | ' | ||
Home sales | 1,630.80 | 1,223.30 | ||
Land/lot sales | 4.8 | 9.9 | ||
Total revenues | 1,635.60 | 1,233.20 | ||
Cost of sales: | ' | ' | ||
Home sales | 1,266.70 | 992.8 | ||
Land/lot sales | 4.3 | 8.2 | ||
Inventory impairments and land option cost write-offs | 2.6 | 1.3 | ||
Total cost of sales | 1,273.60 | 1,002.30 | ||
Gross profit: | ' | ' | ||
Home sales | 364.1 | 230.5 | ||
Land/lot sales | 0.5 | 1.7 | ||
Inventory impairments and land option cost write-offs | -2.6 | -1.3 | ||
Gross profit | 362 | 230.9 | ||
Selling, general and administrative expense | 183.4 | 140.8 | ||
Interest expense | 0 | 3.2 | ||
Other (income) | -3.3 | -3.3 | ||
Income (loss) before income taxes | 181.9 | [1] | 90.2 | [1] |
Financial Services [Member] | ' | ' | ||
Gross profit: | ' | ' | ||
Financial Services Revenue | 35 | 41.9 | ||
General and administrative expense | 29.8 | 25.7 | ||
Interest and other (income) | -2.6 | -1.5 | ||
Income (loss) before income taxes | 7.8 | [1] | 17.7 | [1] |
Available-for-sale Securities [Member] | ' | ' | ||
Other comprehensive income (loss), net of income tax: | ' | ' | ||
Unrealized loss related to available-for-sale securities | $0 | ($0.10) | ||
[1] | Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net income | $123.20 | $66.30 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation | 7.8 | 4.8 |
Amortization of discounts and fees | 10.3 | 10.4 |
Stock based compensation expense | 5.4 | 3.5 |
Income tax benefit from employee stock awards | -0.9 | 0 |
Deferred income taxes | 8.1 | 35.2 |
Gain on sale of marketable securities | 0 | -0.2 |
Inventory impairments and land option cost write-offs | 2.6 | 1.3 |
Changes in operating assets and liabilities: | ' | ' |
Increase in construction in progress and finished homes | -194 | -226.8 |
(Increase) decrease in residential land and lots - developed, under development, and held for development | -77.3 | -612.8 |
(Increase) decrease in other assets | 26.1 | 22.8 |
(Increase) decrease in income taxes receivable | 0 | 14.4 |
Increase in mortgage loans held for sale | 95.3 | 37.4 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | -14.1 | -12.8 |
Net cash used in operating activities | -7.5 | -656.5 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -18.3 | -14 |
Purchases of marketable securities | 0 | -26.8 |
Proceeds from the sale or maturity of marketable securities | 0 | 226.7 |
Decrease in restricted cash | -3.3 | -5.5 |
Net principal increase of mortgage loans held in portfolio and real estate owned | -1.2 | -0.2 |
Payments to Acquire Other Investments | 0 | -18.6 |
Acquisition of a business | -34.5 | -9.4 |
Net cash used in investing activities | -57.3 | 152.2 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from notes payable | 0 | 100 |
Repayment of notes payable | -55.8 | -18.4 |
Proceeds from stock associated with certain employee benefit plans | 3.3 | 2.1 |
Income tax benefit from employee stock awards | 0.9 | 0 |
Cash dividends paid | 0 | -60.2 |
Net cash provided by (used in) financing activities | -51.6 | 23.5 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -116.4 | -480.8 |
Cash and cash equivalents at beginning of period | 936.5 | 1,047.70 |
Cash and cash equivalents at end of period | 820.1 | 566.9 |
Supplemental disclosures of non-cash activities: | ' | ' |
Notes payable issued for inventory | 0 | 11.4 |
Stock issued under Restricted Stock Unit and Performance Unit Plans | $5.50 | $3.90 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited, consolidated financial statements include the accounts of D.R. Horton, Inc. and all of its 100% owned, majority-owned and controlled subsidiaries (which are referred to as the Company, unless the context otherwise requires). All significant intercompany accounts, transactions and balances have been eliminated in consolidation. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair statement have been included. These financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2013. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
Reclassifications | |
See Note N for a discussion of the revision to the condensed consolidating statements of cash flows relating to intercompany advances. | |
Seasonality | |
Historically, the homebuilding industry has experienced seasonal fluctuations; therefore, the operating results for the three months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2014 or subsequent periods. | |
Variable Interests | |
The Company enters into land and lot option purchase contracts to acquire land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of many of the option purchase contracts, the option deposits are not refundable in the event the Company elects to terminate the contract. | |
Option purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under option. There were no variable interest entities reported in the consolidated balance sheets at December 31, 2013 and September 30, 2013 because the Company determined it did not control the activities that most significantly impact the variable interest entity’s economic performance, and it did not have an obligation to absorb losses of or the right to receive benefits from the entity. The maximum exposure to losses related to the Company’s variable interest entities is limited to the amounts of the Company’s related option deposits. At December 31, 2013 and September 30, 2013, the amount of option deposits related to these contracts totaled $38.9 million and $36.9 million, respectively, and are included in homebuilding other assets in the consolidated balance sheets. | |
Acquisitions | |
In October 2013, the Company acquired the homebuilding operations of Regent Homes, Inc. for $34.5 million in cash. Regent Homes operates in Charlotte, Greensboro and Winston-Salem, North Carolina. The assets acquired included approximately 240 homes in inventory, 300 lots and control of approximately 600 additional lots through option contracts. The Company also acquired a sales order backlog of 213 homes. All of the assets acquired were recorded at their estimated fair values by the Company. The acquisition of the homebuilding operations of Regent Homes was not material to the Company's results of operations or its financial condition. | |
Recent Accounting Pronouncements | |
In January 2014, the FASB issued ASU 2014-04, “Receivables - Troubled Debt Restructurings by Creditors,” which clarifies when an in substance repossession or foreclosure of residential real estate property collateralizing a consumer mortgage loan has occurred. By doing so, this guidance helps determine when the creditor should derecognize the loan receivable and recognize the real estate property. The guidance is effective for the Company beginning October 1, 2015 and is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
SEGMENT INFORMATION | |||||||||
The Company is a national homebuilder that is engaged in the acquisition and development of land and the construction and sale of residential homes on the land, with operations in 77 markets in 27 states across the United States. The Company designs, builds and sells single-family detached homes on lots it develops and on finished lots purchased ready for home construction. To a lesser extent, the Company also builds and sells attached homes, such as town homes, duplexes, triplexes and condominiums. Periodically, the Company sells land and lots to other developers and homebuilders where it has excess land and lot positions. The homebuilding segments generate most of their revenues from the sale of completed homes, and to a lesser extent from the sale of land and lots. | |||||||||
The Company also provides mortgage financing and title agency services, primarily to its homebuilding customers, and generally sells the mortgages it originates and the related servicing rights to third-party purchasers. The financial services segment generates its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. | |||||||||
The Company’s 35 homebuilding operating divisions and its financial services operation are its operating segments. The homebuilding operating segments are aggregated into six reporting segments and the financial services operating segment is its own reporting segment. The Company’s reportable homebuilding segments are: East, Midwest, Southeast, South Central, Southwest and West. These reporting segments have homebuilding operations located in the following states: | |||||||||
East: | Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia | ||||||||
Midwest: | Colorado, Illinois, Indiana and Minnesota | ||||||||
Southeast: | Alabama, Florida, Georgia, Mississippi and Tennessee | ||||||||
South Central: | Louisiana, New Mexico (Las Cruces only), Oklahoma and Texas | ||||||||
Southwest: | Arizona and New Mexico | ||||||||
West: | California, Hawaii, Nevada, Oregon, Utah and Washington | ||||||||
The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2013. Financial information relating to the Company's reporting segments is as follows: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Revenues | |||||||||
Homebuilding revenues: | |||||||||
East | $ | 190.1 | $ | 137.4 | |||||
Midwest | 105.8 | 89.4 | |||||||
Southeast | 447.3 | 291.5 | |||||||
South Central | 421.1 | 310.5 | |||||||
Southwest | 70.7 | 76 | |||||||
West | 400.6 | 328.4 | |||||||
Homebuilding revenues | 1,635.60 | 1,233.20 | |||||||
Financial services revenues | 35 | 41.9 | |||||||
Total revenues | $ | 1,670.60 | $ | 1,275.10 | |||||
Income Before Income Taxes (1) | |||||||||
Homebuilding pre-tax income (loss): | |||||||||
East | $ | 11.5 | $ | 7 | |||||
Midwest | 10 | (2.0 | ) | ||||||
Southeast | 51.5 | 19.4 | |||||||
South Central | 42.4 | 25.2 | |||||||
Southwest | 6 | 9.8 | |||||||
West | 60.5 | 30.8 | |||||||
Homebuilding pre-tax income | 181.9 | 90.2 | |||||||
Financial services pre-tax income | 7.8 | 17.7 | |||||||
Income before income taxes | $ | 189.7 | $ | 107.9 | |||||
____________________ | |||||||||
-1 | Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. | ||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Homebuilding Inventories (1) | |||||||||
East | $ | 781.8 | $ | 742.9 | |||||
Midwest | 440.2 | 412.2 | |||||||
Southeast | 1,605.90 | 1,508.50 | |||||||
South Central | 1,475.70 | 1,443.60 | |||||||
Southwest | 266.5 | 262.4 | |||||||
West | 1,739.40 | 1,668.20 | |||||||
Corporate and unallocated (2) | 186.6 | 159.6 | |||||||
Total homebuilding inventory | $ | 6,496.10 | $ | 6,197.40 | |||||
____________________ | |||||||||
-1 | Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision maker. | ||||||||
-2 | Corporate and unallocated consists primarily of capitalized interest and property taxes. |
Inventory_Impairments_and_Land
Inventory Impairments and Land Option Cost Write-Offs | 3 Months Ended |
Dec. 31, 2013 | |
Inventory Impairments and Land Option Cost Write-Offs [Abstract] | ' |
INVENTORY IMPAIRMENTS AND LAND OPTION COST WRITE-OFFS | ' |
INVENTORY | |
At December 31, 2013, the Company reviewed the performance and outlook for all of its land inventories and communities for indicators of potential impairment and performed detailed impairment evaluations and analyses when necessary. The Company performed detailed impairment evaluations of communities with a combined carrying value of $136.1 million and determined that no communities were impaired. Accordingly, no impairment charges were recorded during the three months ended December 31, 2013, and there were no impairment charges recorded in the same period of 2012. | |
During the three months ended December 31, 2013 and 2012, the Company wrote off $2.6 million and $1.3 million, respectively, of earnest money deposits and pre-acquisition costs related to land option contracts which are expected to be terminated. | |
At December 31, 2013 and September 30, 2013, the Company had $30.6 million and $34.0 million, respectively, of inventories that met the criteria of land held for sale, which is primarily included in land held for development and residential land and lots — developed and under development in the consolidated balance sheets. |
Notes_Payable
Notes Payable | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
NOTES PAYABLE | ' | ||||||||
NOTES PAYABLE | |||||||||
The Company’s notes payable at their principal amounts, net of any unamortized discounts, consist of the following: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Homebuilding: | |||||||||
Unsecured: | |||||||||
Revolving credit facility, maturing 2018 | $ | — | $ | — | |||||
6.125% senior notes due 2014, net | 145.8 | 145.8 | |||||||
2% convertible senior notes due 2014, net | 487 | 478.7 | |||||||
5.625% senior notes due 2014, net | 137.8 | 137.8 | |||||||
5.25% senior notes due 2015, net | 157.6 | 157.5 | |||||||
5.625% senior notes due 2016, net | 169.8 | 169.7 | |||||||
6.5% senior notes due 2016, net | 372.5 | 372.5 | |||||||
4.75% senior notes due 2017 | 350 | 350 | |||||||
3.625% senior notes due 2018 | 400 | 400 | |||||||
4.375% senior notes due 2022 | 350 | 350 | |||||||
4.75% senior notes due 2023 | 300 | 300 | |||||||
5.75% senior notes due 2023 | 400 | 400 | |||||||
Other secured | 5.6 | 8.4 | |||||||
$ | 3,276.10 | $ | 3,270.40 | ||||||
Financial Services: | |||||||||
Mortgage repurchase facility, maturing 2014 | $ | 185.8 | $ | 238.6 | |||||
Homebuilding: | |||||||||
The Company has a $725 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $1.0 billion, subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit. Letters of credit issued under the facility reduce available borrowing capacity and may total no more than $362.5 million in the aggregate. The interest rate on borrowings under the revolving credit facility may be based on either the Prime Rate or London Interbank Offered Rate (LIBOR) plus an applicable margin, as defined in the credit agreement governing the facility. The maturity date of the facility is September 7, 2018. At December 31, 2013, there were no borrowings outstanding and $68.9 million of letters of credit issued under the revolving credit facility. | |||||||||
The Company's revolving credit facility imposes restrictions on its operations and activities, including requiring the maintenance of a minimum level of tangible net worth, a maximum allowable ratio of debt to tangible net worth and a borrowing base restriction if the Company's ratio of debt to tangible net worth exceeds a certain level. 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. In addition, the credit agreement governing the facility and the indentures governing the senior notes impose restrictions on the creation of secured debt and liens. At December 31, 2013, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and public debt obligations. | |||||||||
The Company has an automatically effective universal shelf registration statement, filed with the Securities and Exchange Commission (SEC) in September 2012, registering debt and equity securities that the Company may issue from time to time in amounts to be determined. | |||||||||
On January 15, 2014, the Company repaid the remaining $145.9 million principal amount of its 6.125% senior notes which were due on that date. | |||||||||
Holders of the 2% convertible senior notes may convert all or any portion of their notes at their option at any time prior to their maturity on May 15, 2014. The conversion rate is 77.18004 shares of the Company's common stock per $1,000 principal amount of senior notes, which is equivalent to a conversion price of approximately $12.96 per share of common stock. If all of the remaining 2% convertible senior notes were converted into the Company's common stock, the Company would issue 38.6 million shares of its common stock as a result of the conversion. Upon conversion, the Company may satisfy its conversion obligation with cash, shares of its common stock or a combination thereof at its election. The Company intends to satisfy any conversion obligations with shares of its common stock. | |||||||||
Effective August 1, 2013, the Board of Directors authorized the repurchase of up to $500 million of the Company's debt securities effective through July 31, 2014. All of the $500 million authorization was remaining at December 31, 2013. | |||||||||
Financial Services: | |||||||||
The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that is accounted for as a secured financing. The mortgage repurchase facility provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties against the transfer of funds by the counterparties, thereby becoming purchased loans. DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames from 45 to 120 days in accordance with the terms of the mortgage repurchase facility. The total capacity of the facility is $300 million; however, the capacity can be increased to $400 million subject to the availability of additional commitments. The Company is currently in discussions with its lenders and expects to renew and extend the term of the facility on similar terms prior to its maturity date of February 28, 2014. | |||||||||
As of December 31, 2013, $253.0 million of mortgage loans held for sale with a collateral value of $238.9 million were pledged under the mortgage repurchase facility. As a result of advance paydowns totaling $53.1 million, DHI Mortgage had an obligation of $185.8 million outstanding under the mortgage repurchase facility at December 31, 2013 at a 2.8% annual interest rate. | |||||||||
The mortgage repurchase facility is not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable ratio of debt to tangible net worth and its minimum required liquidity. These covenants are measured and reported monthly. At December 31, 2013, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. |
Capitalized_Interest
Capitalized Interest | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Interest Costs Incurred [Abstract] | ' | ||||||||
Capitalized Interest [Text Block] | ' | ||||||||
CAPITALIZED INTEREST | |||||||||
The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During much of the last few years, the Company’s active inventory was lower than its debt level and therefore, a portion of the interest incurred was reflected as interest expense. However, since the third quarter of fiscal 2013, the Company's active inventory has exceeded its debt level and all interest incurred during those periods was capitalized to inventory. | |||||||||
The following table summarizes the Company’s interest costs incurred, capitalized, expensed as interest expense and charged to cost of sales during the three months ended December 31, 2013 and 2012: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Capitalized interest, beginning of period | $ | 137.1 | $ | 82.3 | |||||
Interest incurred (1) | 49.3 | 38.1 | |||||||
Interest expensed: | |||||||||
Directly to interest expense | — | (4.2 | ) | ||||||
Amortized to cost of sales | (25.3 | ) | (24.9 | ) | |||||
Capitalized interest, end of period | $ | 161.1 | $ | 91.3 | |||||
_______________ | |||||||||
-1 | Interest incurred includes interest incurred on the Company's financial services mortgage repurchase facility of $0.9 million and $1.0 million in the three months ended December 31, 2013 and 2012, respectively. | ||||||||
Rollforward of capitalized interest | ' | ||||||||
The following table summarizes the Company’s interest costs incurred, capitalized, expensed as interest expense and charged to cost of sales during the three months ended December 31, 2013 and 2012: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Capitalized interest, beginning of period | $ | 137.1 | $ | 82.3 | |||||
Interest incurred (1) | 49.3 | 38.1 | |||||||
Interest expensed: | |||||||||
Directly to interest expense | — | (4.2 | ) | ||||||
Amortized to cost of sales | (25.3 | ) | (24.9 | ) | |||||
Capitalized interest, end of period | $ | 161.1 | $ | 91.3 | |||||
_______________ | |||||||||
-1 | Interest incurred includes interest incurred on the Company's financial services mortgage repurchase facility of $0.9 million and $1.0 million in the three months ended December 31, 2013 and 2012, respectively. |
Mortgage_Loans
Mortgage Loans | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
MORTGAGE LOANS | ' | ||||||||
MORTGAGE LOANS | |||||||||
Mortgage Loans Held for Sale | |||||||||
Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. At December 31, 2013, mortgage loans held for sale had an aggregate fair value of $299.8 million and an aggregate outstanding principal balance of $295.9 million. At September 30, 2013, mortgage loans held for sale had an aggregate fair value of $395.1 million and an aggregate outstanding principal balance of $381.1 million. The Company had net gains on sales of loans and servicing rights of $20.5 million during the three months ended December 31, 2013, compared to $27.5 million in the same period of 2012. Net gains on sales of loans and servicing rights are included in financial services revenues in the consolidated statements of operations. Approximately 65% of the mortgage loans sold by DHI Mortgage during the three months ended December 31, 2013 were sold to three major financial institutions, the largest of which represented 23% of the total loans sold. | |||||||||
To manage the interest rate risk inherent in its mortgage operations, the Company hedges its risk using derivative instruments, generally forward sales of mortgage-backed securities (MBS), which are referred to as “hedging instruments” in the following discussion. The Company does not enter into or hold derivatives for trading or speculative purposes. | |||||||||
Newly originated loans that have been closed but not committed to third-party purchasers are hedged to mitigate the risk of changes in their fair value. Hedged loans are committed to third-party purchasers typically within three days after origination. The notional amounts of the hedging instruments used to hedge mortgage loans held for sale vary in relationship to the underlying loan amounts, depending on the movements in the value of each hedging instrument relative to the value of the underlying mortgage loans. The fair value change related to the hedging instruments generally offsets the fair value change in the mortgage loans held for sale. The net fair value change, which for the three months ended December 31, 2013 and 2012 was not significant, is recognized in financial services revenues in the consolidated statements of operations. As of December 31, 2013, the Company had a notional amount of $140.9 million in mortgage loans held for sale not committed to third-party purchasers and the notional amounts of the hedging instruments related to those loans totaled $139.0 million. | |||||||||
Other Mortgage Loans and Loss Reserves | |||||||||
Mortgage loans are sold with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. Primarily, these representations and warranties involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market. Other mortgage loans generally consist of loans repurchased due to these limited recourse obligations. Typically, these loans are impaired and some become real estate owned through the foreclosure process. At December 31, 2013 and September 30, 2013, the Company’s total other mortgage loans and real estate owned, before loss reserves, were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Other mortgage loans | $ | 36.7 | $ | 35.9 | |||||
Real estate owned | 1.6 | 1.3 | |||||||
$ | 38.3 | $ | 37.2 | ||||||
The Company has recorded reserves for estimated losses on other mortgage loans, real estate owned and future loan repurchase obligations due to the limited recourse provisions, all of which are recorded as reductions of financial services revenue. The loss reserve for loan recourse obligations is estimated based on an analysis of loan repurchase requests received, actual repurchases and losses through the disposition of such loans or requests, discussions with mortgage purchasers and analysis of mortgages originated. The reserve balances at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Loss reserves related to: | |||||||||
Other mortgage loans | $ | 3.1 | $ | 3.2 | |||||
Real estate owned | 0.3 | 0.2 | |||||||
Loan repurchase and settlement obligations – known and expected | 25.8 | 25.9 | |||||||
$ | 29.2 | $ | 29.3 | ||||||
Other mortgage loans and real estate owned and the related loss reserves are included in financial services other assets, while loan repurchase obligations are included in financial services accounts payable and other liabilities in the accompanying consolidated balance sheets. | |||||||||
Loan Commitments and Related Derivatives | |||||||||
The Company is party to interest rate lock commitments (IRLCs) which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria. At December 31, 2013, the notional amount of IRLCs, which are accounted for as derivative instruments recorded at fair value, totaled $251.8 million. | |||||||||
The Company manages interest rate risk related to its IRLCs through the use of best-efforts whole loan delivery commitments and hedging instruments. These instruments are considered derivatives in an economic hedge and are accounted for at fair value with gains and losses recognized in financial services revenues in the consolidated statements of operations. As of December 31, 2013, the Company had a notional amount of approximately $20.5 million of best-efforts whole loan delivery commitments and a notional amount of $206.0 million of hedging instruments related to IRLCs not yet committed to purchasers. |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company’s income tax expense for the three months ended December 31, 2013 and 2012 was $66.5 million and $41.6 million, respectively. The effective tax rate was 35.1% for the three months ended December 31, 2013, compared to 38.6% in the same period of 2012. The lower tax rate for the three months ended December 31, 2013 resulted from the Company’s deduction for domestic production activities income. This deduction was limited in the prior year period because of the utilization of the net operating loss (NOL) carryforward. | |
At December 31, 2013 and September 30, 2013, the Company had deferred tax assets, net of deferred tax liabilities, of $609.6 million and $617.6 million, respectively, offset by valuation allowances of $31.1 million and $31.0 million, respectively. When assessing the realizability of deferred tax assets, the Company 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. 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 valuation allowance at both December 31, 2013 and September 30, 2013 relates to the Company's deferred tax assets for state NOL carryforwards, which expire at various times through fiscal 2031, because the Company concluded it was more likely than not that a portion of its state NOLs would not be realized due to the more limited carryforward periods that exist in certain states. At December 31, 2013, the Company determined it was more likely than not that all of the Company’s federal deferred tax assets will 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 result in changes in the Company's estimates of the valuation of its deferred tax assets and related valuation allowances, and could also 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. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
EARNINGS PER SHARE | |||||||||
The following table sets forth the numerators and denominators used in the computation of basic and diluted earnings per share. Options to purchase 6.7 million and 4.0 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended December 31, 2013 and 2012, respectively, because the exercise price of the options was greater than the average market price of the common shares and, therefore, their effect would have been antidilutive. | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Numerator: | |||||||||
Net income | $ | 123.2 | $ | 66.3 | |||||
Effect of dilutive securities: | |||||||||
Interest expense and amortization of issuance costs associated with convertible senior notes, net of tax, if applicable | 6.8 | 5.7 | |||||||
Numerator for diluted earnings per share after assumed conversions | $ | 130 | $ | 72 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share — weighted average common shares | 323.1 | 321.1 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock awards | 2.7 | 4.4 | |||||||
Convertible senior notes | 38.6 | 38.6 | |||||||
Denominator for diluted earnings per share — adjusted weighted average common shares | 364.4 | 364.1 | |||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS’ EQUITY | |
The Company has an automatically effective universal shelf registration statement, filed with the SEC in September 2012, registering debt and equity securities that it may issue from time to time in amounts to be determined. | |
Effective August 1, 2013, the Board of Directors authorized the repurchase of up to $100 million of the Company’s common stock effective through July 31, 2014. All of the $100 million authorization was remaining at December 31, 2013, and no common stock has been repurchased subsequent to December 31, 2013. | |
In December 2012, the Board of Directors approved total cash dividends of $0.1875 per common share, which included a quarterly cash dividend of $0.0375 per share and an additional cash dividend of $0.15 per share. The dividend of $0.15 per share was in lieu of and accelerated the payment of all quarterly dividends that would have otherwise been paid in calendar year 2013. | |
In January 2014, the Board of Directors approved a quarterly cash dividend of $0.0375 per common share, payable on February 18, 2014 to stockholders of record on February 7, 2014. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2013 | |
Compensation Related Costs [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | |
Restricted Stock Unit Agreement | |
In November 2013, the Compensation Committee of the Company's Board of Directors approved and granted awards of 350,000 performance based units (Performance Units) to the Chairman of the Board and the Chief Executive Officer of the Company that will vest at the end of a three-year performance period ending September 30, 2016. The number of units that ultimately vest depends on the Company's relative position as compared to its peers at the end of the three-year period in achieving certain performance criteria and can range from 0% to 200% of the number of units granted. The performance criteria are based on total shareholder return, return on investment, selling, general and administrative (SG&A) expense containment and gross profit. The earned awards will have a value equal to the number of earned units multiplied by the closing price of the Company's common stock at the end of the performance period and may be paid in cash, equity or a combination of both. The Compensation Committee has the discretion to reduce the final payout on the Performance Units from the amount earned. The Performance Units have no dividend or voting rights during the performance period. These awards are accounted for as liability awards for which compensation expense is recognized over the vesting period with a corresponding increase in accrued liabilities. The liability for these awards of $1.1 million at December 31, 2013 was based on the Company's performance against the peer group, the elapsed portion of the performance period and the Company's stock price at December 31, 2013. Compensation expense related to this grant was $1.1 million for the three months ended December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Warranty Claims | ||||||||
The Company typically provides its homebuyers with a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty on major mechanical systems, and a one-year limited warranty on other construction components. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates, and is adjusted as appropriate to reflect qualitative risks associated with the types of homes built and the geographic areas in which they are built. | ||||||||
Changes in the Company’s warranty liability during the three months ended December 31, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Warranty liability, beginning of period | $ | 56.9 | $ | 56.8 | ||||
Warranties issued | 7.2 | 5.5 | ||||||
Changes in liability for pre-existing warranties | 1 | 3.6 | ||||||
Settlements made | (8.4 | ) | (9.3 | ) | ||||
Warranty liability, end of period | $ | 56.7 | $ | 56.6 | ||||
Legal Claims and Insurance | ||||||||
The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course of business. At any point in time, the Company is managing several hundred individual claims related to construction defect matters, personal injury claims, employment matters, land development issues and contract disputes. The Company has established reserves for these contingencies based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes. The estimated liabilities for these contingencies were $469.6 million and $482.0 million at December 31, 2013 and September 30, 2013, respectively, and are included in homebuilding accrued expenses and other liabilities in the consolidated balance sheets. At both December 31, 2013 and September 30, 2013, approximately 99% of these reserves related to construction defect matters. Expenses related to the Company’s legal contingencies were $5.5 million and $14.2 million in the three months ended December 31, 2013 and 2012, respectively. | ||||||||
The Company’s reserves for construction defect claims include the estimated costs of both known claims and anticipated future claims. As of December 31, 2013, no individual existing claim was material to the Company’s financial statements, and the majority of the Company’s total construction defect reserves consisted of the estimated exposure to future claims on previously closed homes. The Company has closed a significant number of homes during recent years, and as a result the Company may be subject to future construction defect claims on these homes. Although regulations vary from state to state, construction defect issues can generally be reported for up to ten years after the home has closed in many states in which the Company operates. Historical data and trends regarding the frequency of claims incurred and the costs to resolve claims relative to the types of products and markets where the Company operates are used to estimate the construction defect liabilities for both existing and anticipated future claims. These estimates are subject to ongoing revision as the circumstances of individual pending claims and historical data and trends change. Adjustments to estimated reserves are recorded in the accounting period in which the change in estimate occurs. | ||||||||
Historical trends in construction defect claims have been inconsistent, and the Company believes they may continue to fluctuate over the next several years. Housing market conditions have been volatile across most of the Company's markets over the past ten years, and the Company believes such conditions can affect the frequency and cost of construction defect claims. The Company closed a significant number of homes during its peak operating years from 2003 to 2007. If the ultimate resolution of construction defect claims resulting from closings in the Company's peak operating years varies from current expectations, it could significantly change the Company's estimates regarding the frequency and timing of claims incurred and the costs to resolve existing and anticipated future claims, which would impact the construction defect reserves in the future. If the frequency of claims incurred or costs of existing and future legal claims significantly exceed the Company's current estimates, they will have a significant negative impact on its future earnings and liquidity. | ||||||||
The Company's reserves for legal claims decreased from $482.0 million at September 30, 2013 to $469.6 million at December 31, 2013 primarily due to payments made for legal claims during the period, net of reimbursements received from subcontractors, and a decrease in the estimated cost to resolve future claims. These decreases were partially offset by an increase in reserves for homes closed during the current quarter that are subject to possible future construction defect claims. Changes in the Company’s legal claims reserves during the three months ended December 31, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Reserves for legal claims, beginning of period | $ | 482 | $ | 544.9 | ||||
Decrease in reserves | (6.8 | ) | (6.9 | ) | ||||
Payments | (5.6 | ) | (8.2 | ) | ||||
Reserves for legal claims, end of period | $ | 469.6 | $ | 529.8 | ||||
The Company estimates and records receivables under applicable insurance policies related to its estimated contingencies for known claims and anticipated future construction defect claims on previously closed homes and other legal claims and lawsuits incurred in the ordinary course of business when recovery is probable. Additionally, the Company may have the ability to recover a portion of its losses from its subcontractors and their insurance carriers when the Company has been named as an additional insured on their insurance policies. The Company's receivables related to its estimates of insurance recoveries from estimated losses from pending legal claims and anticipated future claims related to previously closed homes totaled $148.1 million, $162.1 million and $202.0 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively, and are included in homebuilding other assets in the consolidated balance sheets. The decrease in these receivables corresponds to the decrease in the reserve for legal claims. | ||||||||
The estimation of losses related to these reserves and the related estimates of recoveries from insurance policies are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to the Company's markets and the types of products built, claim frequency, claim settlement costs and patterns, insurance industry practices and legal interpretations, among others. Due to the high degree of judgment required in establishing reserves for these contingencies, actual future costs and recoveries from insurance could differ significantly from current estimated amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of loss in excess of its reserves. | ||||||||
Land and Lot Option Purchase Contracts | ||||||||
The Company enters into land and lot option purchase contracts to acquire land or lots for the construction of homes. At December 31, 2013, the Company had total deposits of $43.8 million, consisting of cash deposits of $36.9 million and promissory notes, letters of credit and surety bonds of $6.9 million, to purchase land and lots with a total remaining purchase price of approximately $1.9 billion. A limited number of the land and lot option purchase contracts at December 31, 2013, representing $13.1 million of remaining purchase price, were subject to specific performance clauses which may require the Company to purchase the land or lots upon the land sellers meeting their obligations. The majority of land and lots under contract are currently expected to be purchased within three years. | ||||||||
Other Commitments | ||||||||
At December 31, 2013, the Company had outstanding surety bonds of $736.1 million and letters of credit of $76.6 million to secure performance under various contracts. Of the total letters of credit, $68.9 million were issued under the Company's revolving credit facility and were cash collateralized to receive better pricing. The remaining $7.7 million of letters of credit were issued under secured letter of credit agreements requiring the Company to deposit cash as collateral with the issuing banks. At December 31, 2013 and September 30, 2013, the amount of cash restricted for these purposes totaled $77.3 million and $73.6 million, respectively, and is included in homebuilding restricted cash in the consolidated balance sheets. |
Other_Assets_and_Accrued_Expen
Other Assets and Accrued Expenses and Other Liabilities | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | ' | ||||||||
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES | ' | ||||||||
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||
The Company’s homebuilding other assets at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Insurance receivables | $ | 148.1 | $ | 162.1 | |||||
Earnest money and refundable deposits | 100.9 | 98.5 | |||||||
Accounts and notes receivable | 25 | 24.1 | |||||||
Prepaid assets | 47.5 | 49.4 | |||||||
Rental properties | 41.2 | 41.3 | |||||||
Debt securities collateralized by residential real estate | 20.3 | 20.3 | |||||||
Other assets | 58.1 | 64.8 | |||||||
$ | 441.1 | $ | 460.5 | ||||||
The Company’s homebuilding accrued expenses and other liabilities at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Reserves for legal claims | $ | 469.6 | $ | 482 | |||||
Employee compensation and related liabilities | 115.7 | 130.2 | |||||||
Warranty liability | 56.7 | 56.9 | |||||||
Accrued interest | 46.7 | 34 | |||||||
Federal and state income tax liabilities | 64.5 | 29.9 | |||||||
Inventory related accruals | 40.8 | 46.3 | |||||||
Homebuyer deposits | 37.4 | 39.3 | |||||||
Accrued property taxes | 17.4 | 30 | |||||||
Other liabilities | 35.5 | 37.4 | |||||||
$ | 884.3 | $ | 886 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||
Fair value measurements are used for the Company's mortgage loans held for sale, debt securities collateralized by residential real estate, IRLCs and other derivative instruments on a recurring basis, and are used for inventories, other mortgage loans and real estate owned on a nonrecurring basis, when events and circumstances indicate that the carrying value may not be recoverable. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows: | ||||||||||||||||||||||||||||
• | Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. | |||||||||||||||||||||||||||
• | Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. The Company’s assets and liabilities measured at fair value using Level 2 inputs on a recurring basis are as follows: | |||||||||||||||||||||||||||
▪ | mortgage loans held for sale; | |||||||||||||||||||||||||||
▪ | IRLCs; and | |||||||||||||||||||||||||||
▪ | loan sale commitments and hedging instruments. | |||||||||||||||||||||||||||
• | Level 3 – Valuation is typically derived from model-based techniques in which at least one significant input is unobservable and based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. The Company's assets measured at fair value using Level 3 inputs on a recurring basis are its debt securities collateralized by residential real estate and a limited number of mortgage loans held for sale with some degree of impairment affecting their marketability. | |||||||||||||||||||||||||||
The Company’s assets measured at fair value using Level 3 inputs that are typically reported at the lower of carrying value or fair value on a nonrecurring basis are as follows: | ||||||||||||||||||||||||||||
▪ | inventory held and used; | |||||||||||||||||||||||||||
▪ | inventory available for sale; | |||||||||||||||||||||||||||
▪ | certain mortgage loans; and | |||||||||||||||||||||||||||
▪ | real estate owned. | |||||||||||||||||||||||||||
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and September 30, 2013, and the changes in the fair value of the Level 3 assets during the three months ended December 31, 2013. | ||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | Other assets | $ | — | $ | — | $ | 20.3 | $ | 20.3 | |||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Mortgage loans held for sale (b) | Mortgage loans held for sale | — | 293.9 | 5.9 | 299.8 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments (c): | ||||||||||||||||||||||||||||
Interest rate lock commitments | Other assets | — | 0.4 | — | 0.4 | |||||||||||||||||||||||
Forward sales of MBS | Other assets | — | 2.7 | — | 2.7 | |||||||||||||||||||||||
Best-efforts and mandatory commitments | Other assets | — | 0.8 | — | 0.8 | |||||||||||||||||||||||
Fair Value at September 30, 2013 | ||||||||||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | Other assets | $ | — | $ | — | $ | 20.3 | $ | 20.3 | |||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Mortgage loans held for sale (b) | Mortgage loans held for sale | — | 389.4 | 5.7 | 395.1 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments (c): | ||||||||||||||||||||||||||||
Interest rate lock commitments | Other assets | — | 7 | — | 7 | |||||||||||||||||||||||
Forward sales of MBS | Other liabilities | — | (8.8 | ) | — | (8.8 | ) | |||||||||||||||||||||
Best-efforts and mandatory commitments | Other liabilities | — | (3.1 | ) | — | (3.1 | ) | |||||||||||||||||||||
Level 3 Assets at Fair Value for the | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | Net realized and unrealized gains/(losses) | Purchases | Sales and Settlements | Principal Reductions | Net transfers in/(out) | Balance at December 31, 2013 | ||||||||||||||||||||||
of Level 3 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | $ | 20.3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 20.3 | ||||||||||||||
Mortgage loans held for sale (b) | 5.7 | 0.1 | — | (0.2 | ) | — | 0.3 | 5.9 | ||||||||||||||||||||
(a) | In October 2012, the Company purchased defaulted debt securities which are secured by residential real estate. The Company intends to foreclose on the property or negotiate an agreement to obtain the right to take possession of the residential real estate in order to develop the property and ultimately build and sell homes. These securities, which are included in other assets in the consolidated balance sheets, are classified as available for sale and are reflected at fair value. The fair value of these securities was determined by estimating the future cash flows of the securities and the residential real estate utilizing discount rates of 6% and 18%, respectively. Unrealized gains or losses on these securities, net of tax, are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. | |||||||||||||||||||||||||||
(b) | Mortgage loans held for sale are reflected at fair value. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in financial services interest and other income. Mortgage loans held for sale at December 31, 2013 includes $5.9 million of originated loans for which the Company elected the fair value option upon origination and for which the Company has not sold into the secondary market, but plans to sell as market conditions permit. The fair value of these mortgage loans held for sale is generally calculated considering the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. | |||||||||||||||||||||||||||
(c) | Fair value measurements of these derivatives represent changes in fair value since inception and are reflected in the balance sheet. Changes in these fair values during the periods presented are included in financial services revenues in the consolidated statements of operations. | |||||||||||||||||||||||||||
The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at December 31, 2013 and September 30, 2013: | ||||||||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | |||||||||||||||||||||||||||
Balance Sheet Location | Level 3 | Level 3 | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Inventory held and used (a) (b) | Inventories | $ | — | $ | 0.5 | |||||||||||||||||||||||
Inventory available for sale (a) (c) | Inventories | — | 10.8 | |||||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Other mortgage loans (a) (d) | Other assets | 22.1 | 22.6 | |||||||||||||||||||||||||
Real estate owned (a) (d) | Other assets | 1 | 0.7 | |||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||
(a) | The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value in the respective quarter. | |||||||||||||||||||||||||||
(b) | In performing its impairment analysis of communities, discount rates ranging from 14% to 18% were used in the periods presented. | |||||||||||||||||||||||||||
(c) | The fair value of inventory available for sale was determined based on recent offers received from outside third parties and actual contracts. | |||||||||||||||||||||||||||
(d) | The fair values of other mortgage loans and real estate owned are determined based on the value of the underlying collateral. | |||||||||||||||||||||||||||
For the financial assets and liabilities for which the Company has not elected the fair value option, the following tables present both their respective carrying value and fair value at December 31, 2013 and September 30, 2013: | ||||||||||||||||||||||||||||
Carrying Value | Fair Value at December 31, 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 801.1 | $ | 801.1 | $ | — | $ | — | $ | 801.1 | ||||||||||||||||||
Restricted cash (a) | 81.1 | 81.1 | — | — | 81.1 | |||||||||||||||||||||||
Senior notes (b) | 2,783.50 | — | 2,834.80 | — | 2,834.80 | |||||||||||||||||||||||
Convertible senior notes (b) | 487 | — | 859.7 | — | 859.7 | |||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | 19 | 19 | — | — | 19 | |||||||||||||||||||||||
Mortgage repurchase facility (a) | 185.8 | — | — | 185.8 | 185.8 | |||||||||||||||||||||||
Carrying Value | Fair Value at September 30, 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 913.3 | $ | 913.3 | $ | — | $ | — | $ | 913.3 | ||||||||||||||||||
Restricted cash (a) | 77.8 | 77.8 | — | — | 77.8 | |||||||||||||||||||||||
Senior notes (b) | 2,783.30 | — | 2,811.50 | — | 2,811.50 | |||||||||||||||||||||||
Convertible senior notes (b) | 478.7 | — | 762.4 | — | 762.4 | |||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | 23.2 | 23.2 | — | — | 23.2 | |||||||||||||||||||||||
Mortgage repurchase facility (a) | 238.6 | — | — | 238.6 | 238.6 | |||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||
(a) | The fair value approximates carrying value due to its short-term nature, short maturity or floating interest rate terms, as applicable. | |||||||||||||||||||||||||||
(b) | The fair value is determined based on quoted market prices of recent transactions of the notes, which is classified as Level 2 within the fair value hierarchy. |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 3 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ' | ||||||||||||||||||||
SUPPLEMENTAL GUARANTOR INFORMATION | ' | ||||||||||||||||||||
SUPPLEMENTAL GUARANTOR INFORMATION | |||||||||||||||||||||
All of the Company's senior and convertible senior notes and the unsecured revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by substantially all of the Company's homebuilding subsidiaries (collectively, Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by the Company. The Company's subsidiaries engaged in the financial services segment and certain other subsidiaries do not guarantee the Company's senior and convertible senior notes and the unsecured revolving credit facility (collectively, Non-Guarantor Subsidiaries). In lieu of providing separate financial statements for the Guarantor Subsidiaries, consolidating condensed financial statements are presented below. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that they are not material to investors. | |||||||||||||||||||||
The guarantees by a Guarantor Subsidiary will be automatically and unconditionally released and discharged upon: (1) the sale or other disposition of its common stock whereby it is no longer a subsidiary of the Company; (2) the sale or other disposition of all or substantially all of its assets (other than to the Company or another Guarantor); (3) its merger or consolidation with an entity other than the Company or another Guarantor; or (4) depending on the provisions of the applicable indenture, either (a) its proper designation as an unrestricted subsidiary, (b) its ceasing to guarantee any of the Company's publicly traded debt securities, or (c) its ceasing to guarantee any of the Company's obligations under the revolving credit facility. | |||||||||||||||||||||
The Company revised its condensed consolidating statement of cash flows for the three months ended December 31, 2012 to reflect the change in intercompany advances in the D.R. Horton, Inc. column as an investing activity. Such amount was previously labeled net change in intercompany receivables/payables and classified as a financing activity. The revision resulted in an increase in cash provided by financing activities and an increase in cash used in investing activities in the D.R. Horton, Inc. column in the amount of $458.1 million. This revision had no impact on any financial statements or notes, except for the D.R. Horton, Inc. and Eliminations columns of the condensed consolidating statement of cash flows in this Supplemental Guarantor Information note, and the Company determined the revision was not material. As other prior period financial information is presented, the Company will similarly revise the condensed consolidating statements of cash flows in its future filings. | |||||||||||||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 777.1 | $ | 19.8 | $ | 23.2 | $ | — | $ | 820.1 | |||||||||||
Restricted cash | 80.2 | 0.9 | — | — | 81.1 | ||||||||||||||||
Investments in subsidiaries | 2,538.70 | — | — | (2,538.7 | ) | — | |||||||||||||||
Inventories | 2,344.10 | 4,135.80 | 16.2 | — | 6,496.10 | ||||||||||||||||
Deferred income taxes | 205 | 373.5 | — | — | 578.5 | ||||||||||||||||
Property and equipment, net | 44.1 | 40 | 33.4 | — | 117.5 | ||||||||||||||||
Other assets | 152 | 230.2 | 110.7 | — | 492.9 | ||||||||||||||||
Mortgage loans held for sale | — | — | 299.8 | — | 299.8 | ||||||||||||||||
Goodwill | — | 41.2 | — | — | 41.2 | ||||||||||||||||
Intercompany receivables | 1,726.90 | — | — | (1,726.9 | ) | — | |||||||||||||||
Total Assets | $ | 7,868.10 | $ | 4,841.40 | $ | 483.3 | $ | (4,265.6 | ) | $ | 8,927.20 | ||||||||||
LIABILITIES & EQUITY | |||||||||||||||||||||
Accounts payable and other liabilities | $ | 398.9 | $ | 744.2 | $ | 122.3 | $ | — | $ | 1,265.40 | |||||||||||
Intercompany payables | — | 1,696.70 | 30.2 | (1,726.9 | ) | — | |||||||||||||||
Notes payable | 3,272.40 | 3.7 | 185.8 | — | 3,461.90 | ||||||||||||||||
Total Liabilities | 3,671.30 | 2,444.60 | 338.3 | (1,726.9 | ) | 4,727.30 | |||||||||||||||
Total stockholders’ equity | 4,196.80 | 2,396.80 | 141.9 | (2,538.7 | ) | 4,196.80 | |||||||||||||||
Noncontrolling interests | — | — | 3.1 | — | 3.1 | ||||||||||||||||
Total Equity | 4,196.80 | 2,396.80 | 145 | (2,538.7 | ) | 4,199.90 | |||||||||||||||
Total Liabilities & Equity | $ | 7,868.10 | $ | 4,841.40 | $ | 483.3 | $ | (4,265.6 | ) | $ | 8,927.20 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 871.4 | $ | 38.4 | $ | 26.7 | $ | — | $ | 936.5 | |||||||||||
Restricted cash | 76.5 | 1.2 | 0.1 | — | 77.8 | ||||||||||||||||
Investments in subsidiaries | 2,477.70 | — | — | (2,477.7 | ) | — | |||||||||||||||
Inventories | 2,177.40 | 4,002.90 | 17.1 | — | 6,197.40 | ||||||||||||||||
Deferred income taxes | 201.7 | 384.9 | — | — | 586.6 | ||||||||||||||||
Property and equipment, net | 41 | 34.5 | 31.2 | — | 106.7 | ||||||||||||||||
Other assets | 167 | 233.4 | 117 | — | 517.4 | ||||||||||||||||
Mortgage loans held for sale | — | — | 395.1 | — | 395.1 | ||||||||||||||||
Goodwill | — | 38.9 | — | — | 38.9 | ||||||||||||||||
Intercompany receivables | 1,697.00 | — | — | (1,697.0 | ) | — | |||||||||||||||
Total Assets | $ | 7,709.70 | $ | 4,734.20 | $ | 587.2 | $ | (4,174.7 | ) | $ | 8,856.40 | ||||||||||
LIABILITIES & EQUITY | |||||||||||||||||||||
Accounts payable and other liabilities | $ | 383.8 | $ | 766.5 | $ | 135.7 | $ | — | $ | 1,286.00 | |||||||||||
Intercompany payables | — | 1,664.20 | 32.8 | (1,697.0 | ) | — | |||||||||||||||
Notes payable | 3,267.40 | 3 | 238.6 | — | 3,509.00 | ||||||||||||||||
Total Liabilities | 3,651.20 | 2,433.70 | 407.1 | (1,697.0 | ) | 4,795.00 | |||||||||||||||
Total stockholders’ equity | 4,058.50 | 2,300.50 | 177.2 | (2,477.7 | ) | 4,058.50 | |||||||||||||||
Noncontrolling interests | — | — | 2.9 | — | 2.9 | ||||||||||||||||
Total Equity | 4,058.50 | 2,300.50 | 180.1 | (2,477.7 | ) | 4,061.40 | |||||||||||||||
Total Liabilities & Equity | $ | 7,709.70 | $ | 4,734.20 | $ | 587.2 | $ | (4,174.7 | ) | $ | 8,856.40 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Homebuilding: | |||||||||||||||||||||
Revenues | $ | 552.1 | $ | 1,080.20 | $ | 3.3 | $ | — | $ | 1,635.60 | |||||||||||
Cost of sales | 429.6 | 840.3 | 3.7 | — | 1,273.60 | ||||||||||||||||
Gross profit (loss) | 122.5 | 239.9 | (0.4 | ) | — | 362 | |||||||||||||||
Selling, general and administrative expense | 88.9 | 92.6 | 1.9 | — | 183.4 | ||||||||||||||||
Equity in (income) of subsidiaries | (155.6 | ) | — | — | 155.6 | — | |||||||||||||||
Other (income) | (0.5 | ) | (0.9 | ) | (1.9 | ) | — | (3.3 | ) | ||||||||||||
Homebuilding pre-tax income | 189.7 | 148.2 | (0.4 | ) | (155.6 | ) | 181.9 | ||||||||||||||
Financial Services: | |||||||||||||||||||||
Revenues, net of recourse and reinsurance expense | — | — | 35 | — | 35 | ||||||||||||||||
General and administrative expense | — | — | 29.8 | — | 29.8 | ||||||||||||||||
Interest and other (income) | — | — | (2.6 | ) | — | (2.6 | ) | ||||||||||||||
Financial services pre-tax income | — | — | 7.8 | — | 7.8 | ||||||||||||||||
Income before income taxes | 189.7 | 148.2 | 7.4 | (155.6 | ) | 189.7 | |||||||||||||||
Income tax expense | 66.5 | 52 | 2.6 | (54.6 | ) | 66.5 | |||||||||||||||
Net income | $ | 123.2 | $ | 96.2 | $ | 4.8 | $ | (101.0 | ) | $ | 123.2 | ||||||||||
Comprehensive income | $ | 123.2 | $ | 96.2 | $ | 4.8 | $ | (101.0 | ) | $ | 123.2 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Homebuilding: | |||||||||||||||||||||
Revenues | $ | 406.2 | $ | 823.6 | $ | 3.4 | $ | — | $ | 1,233.20 | |||||||||||
Cost of sales | 327 | 665.7 | 9.6 | — | 1,002.30 | ||||||||||||||||
Gross profit (loss) | 79.2 | 157.9 | (6.2 | ) | — | 230.9 | |||||||||||||||
Selling, general and administrative expense | 64 | 75.1 | 1.7 | — | 140.8 | ||||||||||||||||
Equity in (income) of subsidiaries | (94.9 | ) | — | — | 94.9 | — | |||||||||||||||
Interest expense | 3.2 | — | — | — | 3.2 | ||||||||||||||||
Other (income) | (1.0 | ) | (1.1 | ) | (1.2 | ) | — | (3.3 | ) | ||||||||||||
Homebuilding pre-tax income | 107.9 | 83.9 | (6.7 | ) | (94.9 | ) | 90.2 | ||||||||||||||
Financial Services: | |||||||||||||||||||||
Revenues, net of recourse and reinsurance expense | — | — | 41.9 | — | 41.9 | ||||||||||||||||
General and administrative expense | — | — | 25.7 | — | 25.7 | ||||||||||||||||
Interest and other (income) | — | — | (1.5 | ) | — | (1.5 | ) | ||||||||||||||
Financial services pre-tax income | — | — | 17.7 | — | 17.7 | ||||||||||||||||
Income before income taxes | 107.9 | 83.9 | 11 | (94.9 | ) | 107.9 | |||||||||||||||
Income tax expense | 41.6 | 26.8 | 1.5 | (28.3 | ) | 41.6 | |||||||||||||||
Net income | $ | 66.3 | $ | 57.1 | $ | 9.5 | $ | (66.6 | ) | $ | 66.3 | ||||||||||
Comprehensive income | $ | 66.2 | $ | 57.1 | $ | 9.5 | $ | (66.6 | ) | $ | 66.2 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (23.5 | ) | $ | (40.3 | ) | $ | 96.3 | $ | (40.0 | ) | $ | (7.5 | ) | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||||
Purchases of property and equipment | (6.4 | ) | (8.6 | ) | (3.3 | ) | — | (18.3 | ) | ||||||||||||
(Increase) decrease in restricted cash | (3.7 | ) | 0.3 | 0.1 | — | (3.3 | ) | ||||||||||||||
Net principal increase of other mortgage loans and real estate owned | — | — | (1.2 | ) | — | (1.2 | ) | ||||||||||||||
Intercompany advances | (27.4 | ) | — | — | 27.4 | — | |||||||||||||||
Payments related to acquisition of a business | (34.5 | ) | — | — | — | (34.5 | ) | ||||||||||||||
Net cash used in investing activities | (72.0 | ) | (8.3 | ) | (4.4 | ) | 27.4 | (57.3 | ) | ||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
Repayment of notes payable | (3.0 | ) | — | (52.8 | ) | — | (55.8 | ) | |||||||||||||
Intercompany advances | — | 30 | (2.6 | ) | (27.4 | ) | — | ||||||||||||||
Proceeds from stock associated with certain employee benefit plans | 3.3 | — | — | — | 3.3 | ||||||||||||||||
Income tax benefit from employee stock awards | 0.9 | — | — | — | 0.9 | ||||||||||||||||
Cash dividends paid | — | — | (40.0 | ) | 40 | — | |||||||||||||||
Net cash provided by (used in) financing activities | 1.2 | 30 | (95.4 | ) | 12.6 | (51.6 | ) | ||||||||||||||
Decrease in cash and cash equivalents | (94.3 | ) | (18.6 | ) | (3.5 | ) | — | (116.4 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 871.4 | 38.4 | 26.7 | — | 936.5 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 777.1 | $ | 19.8 | $ | 23.2 | $ | — | $ | 820.1 | |||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (186.2 | ) | $ | (491.3 | ) | $ | 51 | $ | (30.0 | ) | $ | (656.5 | ) | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||||
Purchases of property and equipment | (6.5 | ) | (3.7 | ) | (3.8 | ) | — | (14.0 | ) | ||||||||||||
Purchases of marketable securities | (26.8 | ) | — | — | — | (26.8 | ) | ||||||||||||||
Proceeds from the sale or maturity of marketable securities | 226.7 | — | — | — | 226.7 | ||||||||||||||||
Increase in restricted cash | (5.3 | ) | (0.2 | ) | — | — | (5.5 | ) | |||||||||||||
Net principal increase of other mortgage loans and real estate owned | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||
Purchase of debt securities collateralized by residential real estate | (18.6 | ) | — | — | — | (18.6 | ) | ||||||||||||||
Intercompany advances | (458.1 | ) | — | — | 458.1 | — | |||||||||||||||
Payments related to acquisition of a business | (9.4 | ) | — | — | — | (9.4 | ) | ||||||||||||||
Net cash (used in) provided by investing activities | (298.0 | ) | (3.9 | ) | (4.0 | ) | 458.1 | 152.2 | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
Proceeds from (repayment of) notes payable | 100 | — | (18.4 | ) | — | 81.6 | |||||||||||||||
Intercompany advances | — | 457.8 | 0.3 | (458.1 | ) | — | |||||||||||||||
Proceeds from stock associated with certain employee benefit plans | 2.1 | — | — | — | 2.1 | ||||||||||||||||
Cash dividends paid | (60.2 | ) | — | (30.0 | ) | 30 | (60.2 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 41.9 | 457.8 | (48.1 | ) | (428.1 | ) | 23.5 | ||||||||||||||
Decrease in cash and cash equivalents | (442.3 | ) | (37.4 | ) | (1.1 | ) | — | (480.8 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 968.9 | 56.3 | 22.5 | — | 1,047.70 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 526.6 | $ | 18.9 | $ | 21.4 | $ | — | $ | 566.9 | |||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
See Note N for a discussion of the revision to the condensed consolidating statements of cash flows relating to intercompany advances. | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' |
Variable Interests | |
The Company enters into land and lot option purchase contracts to acquire land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of many of the option purchase contracts, the option deposits are not refundable in the event the Company elects to terminate the contract. | |
Option purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under option. There were no variable interest entities reported in the consolidated balance sheets at December 31, 2013 and September 30, 2013 because the Company determined it did not control the activities that most significantly impact the variable interest entity’s economic performance, and it did not have an obligation to absorb losses of or the right to receive benefits from the entity. The maximum exposure to losses related to the Company’s variable interest entities is limited to the amounts of the Company’s related option deposits. At December 31, 2013 and September 30, 2013, the amount of option deposits related to these contracts totaled $38.9 million and $36.9 million, respectively, and are included in homebuilding other assets in the consolidated balance sheets. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In January 2014, the FASB issued ASU 2014-04, “Receivables - Troubled Debt Restructurings by Creditors,” which clarifies when an in substance repossession or foreclosure of residential real estate property collateralizing a consumer mortgage loan has occurred. By doing so, this guidance helps determine when the creditor should derecognize the loan receivable and recognize the real estate property. The guidance is effective for the Company beginning October 1, 2015 and is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Revenues | |||||||||
Homebuilding revenues: | |||||||||
East | $ | 190.1 | $ | 137.4 | |||||
Midwest | 105.8 | 89.4 | |||||||
Southeast | 447.3 | 291.5 | |||||||
South Central | 421.1 | 310.5 | |||||||
Southwest | 70.7 | 76 | |||||||
West | 400.6 | 328.4 | |||||||
Homebuilding revenues | 1,635.60 | 1,233.20 | |||||||
Financial services revenues | 35 | 41.9 | |||||||
Total revenues | $ | 1,670.60 | $ | 1,275.10 | |||||
Income Before Income Taxes (1) | |||||||||
Homebuilding pre-tax income (loss): | |||||||||
East | $ | 11.5 | $ | 7 | |||||
Midwest | 10 | (2.0 | ) | ||||||
Southeast | 51.5 | 19.4 | |||||||
South Central | 42.4 | 25.2 | |||||||
Southwest | 6 | 9.8 | |||||||
West | 60.5 | 30.8 | |||||||
Homebuilding pre-tax income | 181.9 | 90.2 | |||||||
Financial services pre-tax income | 7.8 | 17.7 | |||||||
Income before income taxes | $ | 189.7 | $ | 107.9 | |||||
____________________ | |||||||||
-1 | Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. | ||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Homebuilding Inventories (1) | |||||||||
East | $ | 781.8 | $ | 742.9 | |||||
Midwest | 440.2 | 412.2 | |||||||
Southeast | 1,605.90 | 1,508.50 | |||||||
South Central | 1,475.70 | 1,443.60 | |||||||
Southwest | 266.5 | 262.4 | |||||||
West | 1,739.40 | 1,668.20 | |||||||
Corporate and unallocated (2) | 186.6 | 159.6 | |||||||
Total homebuilding inventory | $ | 6,496.10 | $ | 6,197.40 | |||||
____________________ | |||||||||
-1 | Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision maker. | ||||||||
-2 | Corporate and unallocated consists primarily of capitalized interest and property taxes. |
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of notes payable at principal amounts, net of unamortized discounts | ' | ||||||||
The Company’s notes payable at their principal amounts, net of any unamortized discounts, consist of the following: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Homebuilding: | |||||||||
Unsecured: | |||||||||
Revolving credit facility, maturing 2018 | $ | — | $ | — | |||||
6.125% senior notes due 2014, net | 145.8 | 145.8 | |||||||
2% convertible senior notes due 2014, net | 487 | 478.7 | |||||||
5.625% senior notes due 2014, net | 137.8 | 137.8 | |||||||
5.25% senior notes due 2015, net | 157.6 | 157.5 | |||||||
5.625% senior notes due 2016, net | 169.8 | 169.7 | |||||||
6.5% senior notes due 2016, net | 372.5 | 372.5 | |||||||
4.75% senior notes due 2017 | 350 | 350 | |||||||
3.625% senior notes due 2018 | 400 | 400 | |||||||
4.375% senior notes due 2022 | 350 | 350 | |||||||
4.75% senior notes due 2023 | 300 | 300 | |||||||
5.75% senior notes due 2023 | 400 | 400 | |||||||
Other secured | 5.6 | 8.4 | |||||||
$ | 3,276.10 | $ | 3,270.40 | ||||||
Financial Services: | |||||||||
Mortgage repurchase facility, maturing 2014 | $ | 185.8 | $ | 238.6 | |||||
Mortgage_Loans_Tables
Mortgage Loans (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Schedule of other mortgage loans and real estate owned | ' | ||||||||
At December 31, 2013 and September 30, 2013, the Company’s total other mortgage loans and real estate owned, before loss reserves, were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Other mortgage loans | $ | 36.7 | $ | 35.9 | |||||
Real estate owned | 1.6 | 1.3 | |||||||
$ | 38.3 | $ | 37.2 | ||||||
Schedule of mortgage loss reserves | ' | ||||||||
The reserve balances at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Loss reserves related to: | |||||||||
Other mortgage loans | $ | 3.1 | $ | 3.2 | |||||
Real estate owned | 0.3 | 0.2 | |||||||
Loan repurchase and settlement obligations – known and expected | 25.8 | 25.9 | |||||||
$ | 29.2 | $ | 29.3 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Numerator and denominator used to compute basic and diluted earnings per share | ' | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In millions) | |||||||||
Numerator: | |||||||||
Net income | $ | 123.2 | $ | 66.3 | |||||
Effect of dilutive securities: | |||||||||
Interest expense and amortization of issuance costs associated with convertible senior notes, net of tax, if applicable | 6.8 | 5.7 | |||||||
Numerator for diluted earnings per share after assumed conversions | $ | 130 | $ | 72 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share — weighted average common shares | 323.1 | 321.1 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock awards | 2.7 | 4.4 | |||||||
Convertible senior notes | 38.6 | 38.6 | |||||||
Denominator for diluted earnings per share — adjusted weighted average common shares | 364.4 | 364.1 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Changes in warranty liability | ' | |||||||
Changes in the Company’s warranty liability during the three months ended December 31, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Warranty liability, beginning of period | $ | 56.9 | $ | 56.8 | ||||
Warranties issued | 7.2 | 5.5 | ||||||
Changes in liability for pre-existing warranties | 1 | 3.6 | ||||||
Settlements made | (8.4 | ) | (9.3 | ) | ||||
Warranty liability, end of period | $ | 56.7 | $ | 56.6 | ||||
Rollforward of the reserve of legal claims | ' | |||||||
Changes in the Company’s legal claims reserves during the three months ended December 31, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Reserves for legal claims, beginning of period | $ | 482 | $ | 544.9 | ||||
Decrease in reserves | (6.8 | ) | (6.9 | ) | ||||
Payments | (5.6 | ) | (8.2 | ) | ||||
Reserves for legal claims, end of period | $ | 469.6 | $ | 529.8 | ||||
Other_Assets_and_Accrued_Expen1
Other Assets and Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | ' | ||||||||
Homebuilding other assets | ' | ||||||||
The Company’s homebuilding other assets at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Insurance receivables | $ | 148.1 | $ | 162.1 | |||||
Earnest money and refundable deposits | 100.9 | 98.5 | |||||||
Accounts and notes receivable | 25 | 24.1 | |||||||
Prepaid assets | 47.5 | 49.4 | |||||||
Rental properties | 41.2 | 41.3 | |||||||
Debt securities collateralized by residential real estate | 20.3 | 20.3 | |||||||
Other assets | 58.1 | 64.8 | |||||||
$ | 441.1 | $ | 460.5 | ||||||
Homebuilding accrued expenses and other liabilities | ' | ||||||||
The Company’s homebuilding accrued expenses and other liabilities at December 31, 2013 and September 30, 2013 were as follows: | |||||||||
December 31, | September 30, | ||||||||
2013 | 2013 | ||||||||
(In millions) | |||||||||
Reserves for legal claims | $ | 469.6 | $ | 482 | |||||
Employee compensation and related liabilities | 115.7 | 130.2 | |||||||
Warranty liability | 56.7 | 56.9 | |||||||
Accrued interest | 46.7 | 34 | |||||||
Federal and state income tax liabilities | 64.5 | 29.9 | |||||||
Inventory related accruals | 40.8 | 46.3 | |||||||
Homebuyer deposits | 37.4 | 39.3 | |||||||
Accrued property taxes | 17.4 | 30 | |||||||
Other liabilities | 35.5 | 37.4 | |||||||
$ | 884.3 | $ | 886 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair value measurements of assets and liabilities on a recurring basis | ' | |||||||||||||||||||||||||||
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and September 30, 2013, and the changes in the fair value of the Level 3 assets during the three months ended December 31, 2013. | ||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | Other assets | $ | — | $ | — | $ | 20.3 | $ | 20.3 | |||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Mortgage loans held for sale (b) | Mortgage loans held for sale | — | 293.9 | 5.9 | 299.8 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments (c): | ||||||||||||||||||||||||||||
Interest rate lock commitments | Other assets | — | 0.4 | — | 0.4 | |||||||||||||||||||||||
Forward sales of MBS | Other assets | — | 2.7 | — | 2.7 | |||||||||||||||||||||||
Best-efforts and mandatory commitments | Other assets | — | 0.8 | — | 0.8 | |||||||||||||||||||||||
Fair Value at September 30, 2013 | ||||||||||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | Other assets | $ | — | $ | — | $ | 20.3 | $ | 20.3 | |||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Mortgage loans held for sale (b) | Mortgage loans held for sale | — | 389.4 | 5.7 | 395.1 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments (c): | ||||||||||||||||||||||||||||
Interest rate lock commitments | Other assets | — | 7 | — | 7 | |||||||||||||||||||||||
Forward sales of MBS | Other liabilities | — | (8.8 | ) | — | (8.8 | ) | |||||||||||||||||||||
Best-efforts and mandatory commitments | Other liabilities | — | (3.1 | ) | — | (3.1 | ) | |||||||||||||||||||||
Level 3 Assets at Fair Value for the | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | Net realized and unrealized gains/(losses) | Purchases | Sales and Settlements | Principal Reductions | Net transfers in/(out) | Balance at December 31, 2013 | ||||||||||||||||||||||
of Level 3 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Debt securities collateralized by residential real estate (a) | $ | 20.3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 20.3 | ||||||||||||||
Mortgage loans held for sale (b) | 5.7 | 0.1 | — | (0.2 | ) | — | 0.3 | 5.9 | ||||||||||||||||||||
(a) | In October 2012, the Company purchased defaulted debt securities which are secured by residential real estate. The Company intends to foreclose on the property or negotiate an agreement to obtain the right to take possession of the residential real estate in order to develop the property and ultimately build and sell homes. These securities, which are included in other assets in the consolidated balance sheets, are classified as available for sale and are reflected at fair value. The fair value of these securities was determined by estimating the future cash flows of the securities and the residential real estate utilizing discount rates of 6% and 18%, respectively. Unrealized gains or losses on these securities, net of tax, are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. | |||||||||||||||||||||||||||
(b) | Mortgage loans held for sale are reflected at fair value. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in financial services interest and other income. Mortgage loans held for sale at December 31, 2013 includes $5.9 million of originated loans for which the Company elected the fair value option upon origination and for which the Company has not sold into the secondary market, but plans to sell as market conditions permit. The fair value of these mortgage loans held for sale is generally calculated considering the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. | |||||||||||||||||||||||||||
(c) | Fair value measurements of these derivatives represent changes in fair value since inception and are reflected in the balance sheet. Changes in these fair values during the periods presented are included in financial services revenues in the consolidated statements of operations. | |||||||||||||||||||||||||||
Fair value measurements of assets on a non-recurring basis | ' | |||||||||||||||||||||||||||
The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at December 31, 2013 and September 30, 2013: | ||||||||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | |||||||||||||||||||||||||||
Balance Sheet Location | Level 3 | Level 3 | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Inventory held and used (a) (b) | Inventories | $ | — | $ | 0.5 | |||||||||||||||||||||||
Inventory available for sale (a) (c) | Inventories | — | 10.8 | |||||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Other mortgage loans (a) (d) | Other assets | 22.1 | 22.6 | |||||||||||||||||||||||||
Real estate owned (a) (d) | Other assets | 1 | 0.7 | |||||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||
(a) | The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value in the respective quarter. | |||||||||||||||||||||||||||
(b) | In performing its impairment analysis of communities, discount rates ranging from 14% to 18% were used in the periods presented. | |||||||||||||||||||||||||||
(c) | The fair value of inventory available for sale was determined based on recent offers received from outside third parties and actual contracts. | |||||||||||||||||||||||||||
(d) | The fair values of other mortgage loans and real estate owned are determined based on the value of the underlying collateral. | |||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||||||||||||||
For the financial assets and liabilities for which the Company has not elected the fair value option, the following tables present both their respective carrying value and fair value at December 31, 2013 and September 30, 2013: | ||||||||||||||||||||||||||||
Carrying Value | Fair Value at December 31, 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 801.1 | $ | 801.1 | $ | — | $ | — | $ | 801.1 | ||||||||||||||||||
Restricted cash (a) | 81.1 | 81.1 | — | — | 81.1 | |||||||||||||||||||||||
Senior notes (b) | 2,783.50 | — | 2,834.80 | — | 2,834.80 | |||||||||||||||||||||||
Convertible senior notes (b) | 487 | — | 859.7 | — | 859.7 | |||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | 19 | 19 | — | — | 19 | |||||||||||||||||||||||
Mortgage repurchase facility (a) | 185.8 | — | — | 185.8 | 185.8 | |||||||||||||||||||||||
Carrying Value | Fair Value at September 30, 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 913.3 | $ | 913.3 | $ | — | $ | — | $ | 913.3 | ||||||||||||||||||
Restricted cash (a) | 77.8 | 77.8 | — | — | 77.8 | |||||||||||||||||||||||
Senior notes (b) | 2,783.30 | — | 2,811.50 | — | 2,811.50 | |||||||||||||||||||||||
Convertible senior notes (b) | 478.7 | — | 762.4 | — | 762.4 | |||||||||||||||||||||||
Financial Services: | ||||||||||||||||||||||||||||
Cash and cash equivalents (a) | 23.2 | 23.2 | — | — | 23.2 | |||||||||||||||||||||||
Mortgage repurchase facility (a) | 238.6 | — | — | 238.6 | 238.6 | |||||||||||||||||||||||
_______________________________________ | ||||||||||||||||||||||||||||
(a) | The fair value approximates carrying value due to its short-term nature, short maturity or floating interest rate terms, as applicable. | |||||||||||||||||||||||||||
(b) | The fair value is determined based on quoted market prices of recent transactions of the notes, which is classified as Level 2 within the fair value hierarchy. |
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ' | ||||||||||||||||||||
Supplemental Consolidating Balance Sheets | ' | ||||||||||||||||||||
nsolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 777.1 | $ | 19.8 | $ | 23.2 | $ | — | $ | 820.1 | |||||||||||
Restricted cash | 80.2 | 0.9 | — | — | 81.1 | ||||||||||||||||
Investments in subsidiaries | 2,538.70 | — | — | (2,538.7 | ) | — | |||||||||||||||
Inventories | 2,344.10 | 4,135.80 | 16.2 | — | 6,496.10 | ||||||||||||||||
Deferred income taxes | 205 | 373.5 | — | — | 578.5 | ||||||||||||||||
Property and equipment, net | 44.1 | 40 | 33.4 | — | 117.5 | ||||||||||||||||
Other assets | 152 | 230.2 | 110.7 | — | 492.9 | ||||||||||||||||
Mortgage loans held for sale | — | — | 299.8 | — | 299.8 | ||||||||||||||||
Goodwill | — | 41.2 | — | — | 41.2 | ||||||||||||||||
Intercompany receivables | 1,726.90 | — | — | (1,726.9 | ) | — | |||||||||||||||
Total Assets | $ | 7,868.10 | $ | 4,841.40 | $ | 483.3 | $ | (4,265.6 | ) | $ | 8,927.20 | ||||||||||
LIABILITIES & EQUITY | |||||||||||||||||||||
Accounts payable and other liabilities | $ | 398.9 | $ | 744.2 | $ | 122.3 | $ | — | $ | 1,265.40 | |||||||||||
Intercompany payables | — | 1,696.70 | 30.2 | (1,726.9 | ) | — | |||||||||||||||
Notes payable | 3,272.40 | 3.7 | 185.8 | — | 3,461.90 | ||||||||||||||||
Total Liabilities | 3,671.30 | 2,444.60 | 338.3 | (1,726.9 | ) | 4,727.30 | |||||||||||||||
Total stockholders’ equity | 4,196.80 | 2,396.80 | 141.9 | (2,538.7 | ) | 4,196.80 | |||||||||||||||
Noncontrolling interests | — | — | 3.1 | — | 3.1 | ||||||||||||||||
Total Equity | 4,196.80 | 2,396.80 | 145 | (2,538.7 | ) | 4,199.90 | |||||||||||||||
Total Liabilities & Equity | $ | 7,868.10 | $ | 4,841.40 | $ | 483.3 | $ | (4,265.6 | ) | $ | 8,927.20 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 871.4 | $ | 38.4 | $ | 26.7 | $ | — | $ | 936.5 | |||||||||||
Restricted cash | 76.5 | 1.2 | 0.1 | — | 77.8 | ||||||||||||||||
Investments in subsidiaries | 2,477.70 | — | — | (2,477.7 | ) | — | |||||||||||||||
Inventories | 2,177.40 | 4,002.90 | 17.1 | — | 6,197.40 | ||||||||||||||||
Deferred income taxes | 201.7 | 384.9 | — | — | 586.6 | ||||||||||||||||
Property and equipment, net | 41 | 34.5 | 31.2 | — | 106.7 | ||||||||||||||||
Other assets | 167 | 233.4 | 117 | — | 517.4 | ||||||||||||||||
Mortgage loans held for sale | — | — | 395.1 | — | 395.1 | ||||||||||||||||
Goodwill | — | 38.9 | — | — | 38.9 | ||||||||||||||||
Intercompany receivables | 1,697.00 | — | — | (1,697.0 | ) | — | |||||||||||||||
Total Assets | $ | 7,709.70 | $ | 4,734.20 | $ | 587.2 | $ | (4,174.7 | ) | $ | 8,856.40 | ||||||||||
LIABILITIES & EQUITY | |||||||||||||||||||||
Accounts payable and other liabilities | $ | 383.8 | $ | 766.5 | $ | 135.7 | $ | — | $ | 1,286.00 | |||||||||||
Intercompany payables | — | 1,664.20 | 32.8 | (1,697.0 | ) | — | |||||||||||||||
Notes payable | 3,267.40 | 3 | 238.6 | — | 3,509.00 | ||||||||||||||||
Total Liabilities | 3,651.20 | 2,433.70 | 407.1 | (1,697.0 | ) | 4,795.00 | |||||||||||||||
Total stockholders’ equity | 4,058.50 | 2,300.50 | 177.2 | (2,477.7 | ) | 4,058.50 | |||||||||||||||
Noncontrolling interests | — | — | 2.9 | — | 2.9 | ||||||||||||||||
Total Equity | 4,058.50 | 2,300.50 | 180.1 | (2,477.7 | ) | 4,061.40 | |||||||||||||||
Total Liabilities & Equity | $ | 7,709.70 | $ | 4,734.20 | $ | 587.2 | $ | (4,174.7 | ) | $ | 8,856.40 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Homebuilding: | |||||||||||||||||||||
Revenues | $ | 552.1 | $ | 1,080.20 | $ | 3.3 | $ | — | $ | 1,635.60 | |||||||||||
Cost of sales | 429.6 | 840.3 | 3.7 | — | 1,273.60 | ||||||||||||||||
Gross profit (loss) | 122.5 | 239.9 | (0.4 | ) | — | 362 | |||||||||||||||
Selling, general and administrative expense | 88.9 | 92.6 | 1.9 | — | 183.4 | ||||||||||||||||
Equity in (income) of subsidiaries | (155.6 | ) | — | — | 155.6 | — | |||||||||||||||
Other (income) | (0.5 | ) | (0.9 | ) | (1.9 | ) | — | (3.3 | ) | ||||||||||||
Homebuilding pre-tax income | 189.7 | 148.2 | (0.4 | ) | (155.6 | ) | 181.9 | ||||||||||||||
Financial Services: | |||||||||||||||||||||
Revenues, net of recourse and reinsurance expense | — | — | 35 | — | 35 | ||||||||||||||||
General and administrative expense | — | — | 29.8 | — | 29.8 | ||||||||||||||||
Interest and other (income) | — | — | (2.6 | ) | — | (2.6 | ) | ||||||||||||||
Financial services pre-tax income | — | — | 7.8 | — | 7.8 | ||||||||||||||||
Income before income taxes | 189.7 | 148.2 | 7.4 | (155.6 | ) | 189.7 | |||||||||||||||
Income tax expense | 66.5 | 52 | 2.6 | (54.6 | ) | 66.5 | |||||||||||||||
Net income | $ | 123.2 | $ | 96.2 | $ | 4.8 | $ | (101.0 | ) | $ | 123.2 | ||||||||||
Comprehensive income | $ | 123.2 | $ | 96.2 | $ | 4.8 | $ | (101.0 | ) | $ | 123.2 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Homebuilding: | |||||||||||||||||||||
Revenues | $ | 406.2 | $ | 823.6 | $ | 3.4 | $ | — | $ | 1,233.20 | |||||||||||
Cost of sales | 327 | 665.7 | 9.6 | — | 1,002.30 | ||||||||||||||||
Gross profit (loss) | 79.2 | 157.9 | (6.2 | ) | — | 230.9 | |||||||||||||||
Selling, general and administrative expense | 64 | 75.1 | 1.7 | — | 140.8 | ||||||||||||||||
Equity in (income) of subsidiaries | (94.9 | ) | — | — | 94.9 | — | |||||||||||||||
Interest expense | 3.2 | — | — | — | 3.2 | ||||||||||||||||
Other (income) | (1.0 | ) | (1.1 | ) | (1.2 | ) | — | (3.3 | ) | ||||||||||||
Homebuilding pre-tax income | 107.9 | 83.9 | (6.7 | ) | (94.9 | ) | 90.2 | ||||||||||||||
Financial Services: | |||||||||||||||||||||
Revenues, net of recourse and reinsurance expense | — | — | 41.9 | — | 41.9 | ||||||||||||||||
General and administrative expense | — | — | 25.7 | — | 25.7 | ||||||||||||||||
Interest and other (income) | — | — | (1.5 | ) | — | (1.5 | ) | ||||||||||||||
Financial services pre-tax income | — | — | 17.7 | — | 17.7 | ||||||||||||||||
Income before income taxes | 107.9 | 83.9 | 11 | (94.9 | ) | 107.9 | |||||||||||||||
Income tax expense | 41.6 | 26.8 | 1.5 | (28.3 | ) | 41.6 | |||||||||||||||
Net income | $ | 66.3 | $ | 57.1 | $ | 9.5 | $ | (66.6 | ) | $ | 66.3 | ||||||||||
Comprehensive income | $ | 66.2 | $ | 57.1 | $ | 9.5 | $ | (66.6 | ) | $ | 66.2 | ||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (23.5 | ) | $ | (40.3 | ) | $ | 96.3 | $ | (40.0 | ) | $ | (7.5 | ) | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||||
Purchases of property and equipment | (6.4 | ) | (8.6 | ) | (3.3 | ) | — | (18.3 | ) | ||||||||||||
(Increase) decrease in restricted cash | (3.7 | ) | 0.3 | 0.1 | — | (3.3 | ) | ||||||||||||||
Net principal increase of other mortgage loans and real estate owned | — | — | (1.2 | ) | — | (1.2 | ) | ||||||||||||||
Intercompany advances | (27.4 | ) | — | — | 27.4 | — | |||||||||||||||
Payments related to acquisition of a business | (34.5 | ) | — | — | — | (34.5 | ) | ||||||||||||||
Net cash used in investing activities | (72.0 | ) | (8.3 | ) | (4.4 | ) | 27.4 | (57.3 | ) | ||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
Repayment of notes payable | (3.0 | ) | — | (52.8 | ) | — | (55.8 | ) | |||||||||||||
Intercompany advances | — | 30 | (2.6 | ) | (27.4 | ) | — | ||||||||||||||
Proceeds from stock associated with certain employee benefit plans | 3.3 | — | — | — | 3.3 | ||||||||||||||||
Income tax benefit from employee stock awards | 0.9 | — | — | — | 0.9 | ||||||||||||||||
Cash dividends paid | — | — | (40.0 | ) | 40 | — | |||||||||||||||
Net cash provided by (used in) financing activities | 1.2 | 30 | (95.4 | ) | 12.6 | (51.6 | ) | ||||||||||||||
Decrease in cash and cash equivalents | (94.3 | ) | (18.6 | ) | (3.5 | ) | — | (116.4 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 871.4 | 38.4 | 26.7 | — | 936.5 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 777.1 | $ | 19.8 | $ | 23.2 | $ | — | $ | 820.1 | |||||||||||
NOTE N – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) | |||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||
D.R. | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Horton, Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (186.2 | ) | $ | (491.3 | ) | $ | 51 | $ | (30.0 | ) | $ | (656.5 | ) | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||||
Purchases of property and equipment | (6.5 | ) | (3.7 | ) | (3.8 | ) | — | (14.0 | ) | ||||||||||||
Purchases of marketable securities | (26.8 | ) | — | — | — | (26.8 | ) | ||||||||||||||
Proceeds from the sale or maturity of marketable securities | 226.7 | — | — | — | 226.7 | ||||||||||||||||
Increase in restricted cash | (5.3 | ) | (0.2 | ) | — | — | (5.5 | ) | |||||||||||||
Net principal increase of other mortgage loans and real estate owned | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||
Purchase of debt securities collateralized by residential real estate | (18.6 | ) | — | — | — | (18.6 | ) | ||||||||||||||
Intercompany advances | (458.1 | ) | — | — | 458.1 | — | |||||||||||||||
Payments related to acquisition of a business | (9.4 | ) | — | — | — | (9.4 | ) | ||||||||||||||
Net cash (used in) provided by investing activities | (298.0 | ) | (3.9 | ) | (4.0 | ) | 458.1 | 152.2 | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
Proceeds from (repayment of) notes payable | 100 | — | (18.4 | ) | — | 81.6 | |||||||||||||||
Intercompany advances | — | 457.8 | 0.3 | (458.1 | ) | — | |||||||||||||||
Proceeds from stock associated with certain employee benefit plans | 2.1 | — | — | — | 2.1 | ||||||||||||||||
Cash dividends paid | (60.2 | ) | — | (30.0 | ) | 30 | (60.2 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 41.9 | 457.8 | (48.1 | ) | (428.1 | ) | 23.5 | ||||||||||||||
Decrease in cash and cash equivalents | (442.3 | ) | (37.4 | ) | (1.1 | ) | — | (480.8 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 968.9 | 56.3 | 22.5 | — | 1,047.70 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 526.6 | $ | 18.9 | $ | 21.4 | $ | — | $ | 566.9 | |||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2013 |
Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | RegentHomes [Member] | RegentHomes [Member] | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Home | |||||
Lot | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $34.50 | $9.40 | ' | ' | ' | $34.50 | ' |
Business Acquisition, Number of Homes Acquired | ' | ' | ' | ' | ' | ' | 240 |
Business Acquisition, Number of Finished Lots Acquired | ' | ' | ' | ' | ' | ' | 300 |
Business Acquisition, Number of Lots Under Option Contracts | ' | ' | ' | ' | ' | ' | 600 |
Business Acquisition, Sales Order Backlog Acquired (Homes) | ' | ' | ' | ' | ' | ' | 213 |
Business Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Earnest Money Deposits | ' | ' | $43.80 | $38.90 | $36.90 | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |||
Homebuilding revenues: | ' | ' | ' | |||
Consolidated revenues | $1,670.60 | $1,275.10 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 189.7 | [1] | 107.9 | [1] | ' | |
Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 1,635.60 | 1,233.20 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 181.9 | [1] | 90.2 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 6,496.10 | [2] | ' | 6,197.40 | [2] | |
Financial Services [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Financial Services Revenue | 35 | 41.9 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 7.8 | [1] | 17.7 | [1] | ' | |
East [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 190.1 | 137.4 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 11.5 | [1] | 7 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 781.8 | [2] | ' | 742.9 | [2] | |
Midwest [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 105.8 | 89.4 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 10 | [1] | -2 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 440.2 | [2] | ' | 412.2 | [2] | |
Southeast [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 447.3 | 291.5 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 51.5 | [1] | 19.4 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 1,605.90 | [2] | ' | 1,508.50 | [2] | |
South Central [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 421.1 | 310.5 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 42.4 | [1] | 25.2 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 1,475.70 | [2] | ' | 1,443.60 | [2] | |
Southwest [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 70.7 | 76 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 6 | [1] | 9.8 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 266.5 | [2] | ' | 262.4 | [2] | |
West [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding revenues: | ' | ' | ' | |||
Total homebuilding revenues | 400.6 | 328.4 | ' | |||
Income (Loss) before Income Taxes | ' | ' | ' | |||
Income (loss) before income taxes | 60.5 | [1] | 30.8 | [1] | ' | |
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | 1,739.40 | [2] | ' | 1,668.20 | [2] | |
Corporate and Unallocated [Member] | Homebuilding [Member] | ' | ' | ' | |||
Homebuilding inventories | ' | ' | ' | |||
Total homebuilding inventory | $186.60 | [2],[3] | ' | $159.60 | [2],[3] | |
[1] | Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. | |||||
[2] | Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision maker. | |||||
[3] | Corporate and unallocated consists primarily of capitalized interest and property taxes. |
Segment_Information_Details_Te
Segment Information (Details Textual) (Homebuilding [Member]) | 3 Months Ended |
Dec. 31, 2013 | |
Segments | |
OperatingDivisions | |
Market | |
State | |
Homebuilding [Member] | ' |
Segment information [Abstract] | ' |
Number Of Home Building Operating Divisions | 35 |
Number Of Homebuilding Reporting Segments | 6 |
Number Of Housing Construction States | 27 |
Number Of Housing Construction Markets | 77 |
Marketable_Securities_Details_
Marketable Securities (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Marketable Securities [Abstract] | ' | ' |
Proceeds from the sale or maturity of marketable securities | $0 | $226.70 |
Inventory_Impairments_and_Land1
Inventory Impairments and Land Option Cost Write-Offs (Details) (Homebuilding [Member], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Homebuilding [Member] | ' | ' | ' |
Inventory Impairments and Land Option Cost Write Offs [Abstract] | ' | ' | ' |
Carrying value of communities with impairment indicators | $136.10 | ' | ' |
Carrying value of communities impaired | 0 | ' | ' |
Impairment charges | 0 | 0 | ' |
Write-offs (recoveries) of earnest money deposits and pre-acquisition costs | 2.6 | 1.3 | ' |
Land held for sale | $30.60 | ' | $34 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Unsecured: | ' | ' |
Notes payable | $3,461.90 | $3,509 |
Homebuilding [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Amount Outstanding | 0 | 0 |
Unsecured: | ' | ' |
Notes payable | 3,276.10 | 3,270.40 |
Homebuilding [Member] | 6.125% senior notes due 2014, net [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 145.8 | 145.8 |
Stated interest rate | 6.13% | ' |
Homebuilding [Member] | 2% convertible senior notes [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 487 | 478.7 |
Stated interest rate | 2.00% | ' |
Homebuilding [Member] | 5.625% senior notes due 2014, net [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 137.8 | 137.8 |
Stated interest rate | 5.63% | ' |
Homebuilding [Member] | 5.25% senior notes due 2015 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 157.6 | 157.5 |
Stated interest rate | 5.25% | ' |
Homebuilding [Member] | 5.625% senior notes due 2016 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 169.8 | 169.7 |
Stated interest rate | 5.63% | ' |
Homebuilding [Member] | 6.50% senior notes due 2016 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 372.5 | 372.5 |
Stated interest rate | 6.50% | ' |
Homebuilding [Member] | 4.75% senior notes due 2017 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 350 | 350 |
Stated interest rate | 4.75% | ' |
Homebuilding [Member] | 3.625% senior notes due 2018 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 400 | 400 |
Stated interest rate | 3.63% | ' |
Homebuilding [Member] | 4.375% senior notes due 2022 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 350 | 350 |
Stated interest rate | 4.38% | ' |
Homebuilding [Member] | 4.75% senior notes due 2023 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 300 | 300 |
Stated interest rate | 4.75% | ' |
Homebuilding [Member] | 5.75% senior notes due 2023 [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 400 | 400 |
Stated interest rate | 5.75% | ' |
Homebuilding [Member] | Other secured [Member] | ' | ' |
Unsecured: | ' | ' |
Notes payable | 5.6 | 8.4 |
Financial Services [Member] | ' | ' |
Unsecured: | ' | ' |
Assets Sold under Agreements to Repurchase, Repurchase Liability | $185.80 | $238.60 |
Notes_Payable_Details_Textual
Notes Payable (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 24, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Letter of Credit One [Member] | 2% convertible senior notes [Member] | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Financial Services [Member] | Financial Services [Member] | |||
Senior Note Five [Member] | ||||||||||
Notes Payable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base capacity of mortgage repurchase facility | ' | ' | ' | ' | ' | $725,000,000 | ' | ' | $300,000,000 | ' |
Maximum capacity of mortgage repurchase facility | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | 400,000,000 | ' |
Letter of Credit, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | 362,500,000 | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Letters of Credit Outstanding, Amount | 76,600,000 | ' | 68,900,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 77.18004 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | $12.96 | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Conversion of Debt Securities | 38,600,000 | 38,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized repurchase of debt securities | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' |
Debt repurchase program, remaining authorized repurchase amount | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' |
Mortgage loans held for sale pledged under repurchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | 253,000,000 | ' |
Mortgage loans, collateral value | ' | ' | ' | ' | ' | ' | ' | ' | 238,900,000 | ' |
Advance pay downs on mortgage repurchase facility | ' | ' | ' | ' | ' | ' | ' | ' | 53,100,000 | ' |
Assets Sold under Agreements to Repurchase, Repurchase Liability | ' | ' | ' | ' | ' | ' | ' | ' | 185,800,000 | 238,600,000 |
Interest rate on mortgage repurchase facility | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' |
Maturities of Senior Debt | ' | ' | ' | ' | ' | ' | ' | $145,900,000 | ' | ' |
Capitalized_Interest_Details
Capitalized Interest (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Rollforward of capitalized interest | ' | ' | ||
Capitalized interest, beginning of period | $137.10 | $82.30 | ||
Interest incurred | 49.3 | [1] | 38.1 | [1] |
Interest expensed: | ' | ' | ||
Directly to interest expense | 0 | 4.2 | ||
Amortized to cost of sales | -25.3 | -24.9 | ||
Capitalized interest, end of period | 161.1 | 91.3 | ||
Financial Services [Member] | ' | ' | ||
Rollforward of capitalized interest | ' | ' | ||
Interest incurred | $0.90 | $1 | ||
[1] | Interest incurred includes interest incurred on the Company's financial services mortgage repurchase facility of $0.9 million and $1.0 million in the three months ended December 31, 2013 and 2012, respectively. |
Mortgage_Loans_Details_1
Mortgage Loans (Details 1) (Financial Services [Member], USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Mortgage Loans on Real Estate, Write-down or Reserve [Line Items] | ' | ' |
Mortgage Loans on Real Estate | $36.70 | $35.90 |
Real Estate Acquired Through Foreclosure | 1.6 | 1.3 |
Loss reserves related to: | ' | ' |
Loans and Leases Receivable, Allowance | 29.2 | 29.3 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | 38.3 | 37.2 |
Mortgage Loans on Real Estate [Member] | ' | ' |
Loss reserves related to: | ' | ' |
Loans and Leases Receivable, Allowance | 3.1 | 3.2 |
Real Estate [Member] | ' | ' |
Loss reserves related to: | ' | ' |
Loans and Leases Receivable, Allowance | 0.3 | 0.2 |
Obligation to Repurchase Receivables Sold [Member] | ' | ' |
Loss reserves related to: | ' | ' |
Loans and Leases Receivable, Allowance | $25.80 | $25.90 |
Mortgage_Loans_Details_Textual
Mortgage Loans (Details Textual) (Financial Services [Member], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Mortgage Loans [Abstract] | ' | ' | ' |
Mortgage loans held for sale | $299.80 | ' | $395.10 |
Principal Amount Outstanding on Loans Held-for-sale or Securitization or Asset-backed Financing Arrangement | 295.9 | ' | 381.1 |
Net gain on sales of loans | 20.5 | 27.5 | ' |
Concentration Risk, Percentage | 65.00% | ' | ' |
Percentage Of Mortgage Loans Sold To Major Purchasers | 23.00% | ' | ' |
Interest rate lock commitments [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 251.8 | ' | ' |
Best-efforts and mandatory commitments [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 20.5 | ' | ' |
Hedging Instruments related to IRLCs [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 206 | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' |
Notional amounts of hedging instruments, Total | 139 | ' | ' |
Uncommitted Loans [Member] | ' | ' | ' |
Mortgage Loans [Abstract] | ' | ' | ' |
Mortgage loans held for sale | $140.90 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Income Tax Disclosures [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | $31.10 | ' | $31 |
Income tax expense (benefit) | 66.5 | 41.6 | ' |
Effective Income Tax Rate Reconciliation, Percent | 35.10% | 38.60% | ' |
Deferred tax assets net of DTL | $609.60 | ' | $617.60 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Number of shares excluded from computation of earnings per share | 6.7 | 4 |
Earnings Per Share Reconciliation [Abstract] | ' | ' |
Net income | $123.20 | $66.30 |
Interest expense and amortization of issuance costs associated with convertible senior notes | 6.8 | 5.7 |
Numerator for diluted earnings per share after assumed conversions | $130 | $72 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' |
Denominator for basic earnings per share - weighted average common shares | 323.1 | 321.1 |
Employee stock awards | 2.7 | 4.4 |
Incremental Common Shares Attributable to Conversion of Debt Securities | 38.6 | 38.6 |
Denominator for diluted earnings per share - adjusted weighted average common shares | 364.4 | 364.1 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||
Nov. 08, 2012 | Jul. 24, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends, Common Stock [Abstract] | ' | ' | ' | ' | ' |
Cash dividends declared per common share (in dollars per share) | $0.04 | ' | $0.04 | $0 | $0.19 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' |
Amount remaining under stock repurchase authorization | ' | ' | ' | $100,000,000 | ' |
Amount of stock repurchase authorization | ' | 100,000,000 | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | ' | 77.18004 | ' |
Incremental Common Shares Attributable to Conversion of Debt Securities | ' | ' | ' | 38,600,000 | 38,600,000 |
Accelerated Dividend [Member] | ' | ' | ' | ' | ' |
Dividends, Common Stock [Abstract] | ' | ' | ' | ' | ' |
Cash dividends declared per common share (in dollars per share) | $0.15 | ' | ' | ' | ' |
2% convertible senior notes [Member] | ' | ' | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | $1,000 | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | $12.96 | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (November Two Thousand Thirteen Grant [Member], USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Performance Based Unit [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 350,000 |
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Units Vesting Upon Achieving Performance Criteria Range Low | 0.00% |
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Units Vesting Upon Achieving Performance Criteria Range High | 200.00% |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Allocated Share-based Compensation Expense | 1.1 |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | 1.1 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Homebuilding [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding [Member] | ' | ' |
Changes in warranty liability | ' | ' |
Warranty liability, beginning of period | $56.90 | $56.80 |
Warranties issued | 7.2 | 5.5 |
Changes in liability for pre-existing warranties | 1 | 3.6 |
Settlements made | -8.4 | -9.3 |
Warranty liability, end of period | $56.70 | $56.60 |
Commitments_and_Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details 1) (Homebuilding [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding [Member] | ' | ' |
Rollforward of reserves for legal claims | ' | ' |
Reserves for legal claims, beginning of period | $482 | $544.90 |
Payments | -5.6 | -8.2 |
Increase (decrease) in reserve | -6.8 | -6.9 |
Reserves for legal claims, end of period | $469.60 | $529.80 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Surety Bonds | $736.10 | ' | ' | ' |
Outstanding letters of credit | 76.6 | ' | ' | ' |
Homebuilding [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Liabilities for various claims, complaints and other legal actions | 469.6 | 529.8 | 482 | 544.9 |
Expenses related to legal claims | 5.5 | 14.2 | ' | ' |
Estimated insurance recoveries related to legal claims | 148.1 | 202 | 162.1 | ' |
Earnest Money Deposits | 43.8 | ' | ' | ' |
Remaining purchase price of land under option contracts | 1,900 | ' | ' | ' |
Restricted Cash and Cash Equivalents | 81.1 | ' | 77.8 | ' |
Construction defect portion of loss contingency accrual | 99.00% | ' | 99.00% | ' |
Cash Deposits [Member] | Homebuilding [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Earnest Money Deposits | 36.9 | ' | ' | ' |
Promissory Notes and Surety Bonds [Member] | Homebuilding [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Earnest Money Deposits | 6.9 | ' | ' | ' |
Letter of Credit Two [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Outstanding letters of credit | 7.7 | ' | ' | ' |
Letter of Credit [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 77.3 | ' | 73.6 | ' |
Letter of Credit One [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Outstanding letters of credit | 68.9 | ' | ' | ' |
Option Contracts Subject to Specific Performance Clauses [Member] | Homebuilding [Member] | ' | ' | ' | ' |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Remaining purchase price of land under option contracts | $13.10 | ' | ' | ' |
Other_Assets_and_Accrued_Expen2
Other Assets and Accrued Expenses and Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||||
Homebuilding other assets | ' | ' | ' | ' |
Homebuilding other assets | $492.90 | $517.40 | ' | ' |
Homebuilding [Member] | ' | ' | ' | ' |
Homebuilding other assets | ' | ' | ' | ' |
Insurance receivables | 148.1 | 162.1 | 202 | ' |
Earnest money and refundable deposits | 100.9 | 98.5 | ' | ' |
Accounts and notes receivable | 25 | 24.1 | ' | ' |
Prepaid assets | 47.5 | 49.4 | ' | ' |
Rental Properties | 41.2 | 41.3 | ' | ' |
Other Investments | 20.3 | 20.3 | ' | ' |
Other assets | 58.1 | 64.8 | ' | ' |
Homebuilding other assets | 441.1 | 460.5 | ' | ' |
Homebuilding accrued expenses and other liabilities | ' | ' | ' | ' |
Construction defect and other litigation liabilities | 469.6 | 482 | 529.8 | 544.9 |
Employee compensation and related liabilities | 115.7 | 130.2 | ' | ' |
Warranty liability | 56.7 | 56.9 | 56.6 | 56.8 |
Accrued interest | 46.7 | 34 | ' | ' |
Federal and state income tax liabilities | 64.5 | 29.9 | ' | ' |
Construction Payable | 40.8 | 46.3 | ' | ' |
Customer Deposits, Current | 37.4 | 39.3 | ' | ' |
Accrual for Taxes Other than Income Taxes, Current | 17.4 | 30 | ' | ' |
Other liabilities | 35.5 | 37.4 | ' | ' |
Homebuilding accrued expenses and other liabilities | $884.30 | $886 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Homebuilding [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Other Investments | $20.30 | $20.30 | ||
Homebuilding [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Other Investments | 0 | [1] | 0 | |
Homebuilding [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Other Investments | 0 | [1] | 0 | |
Homebuilding [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Other Investments | 20.3 | [1] | 20.3 | [1] |
Homebuilding [Member] | Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Other Investments | 20.3 | [1] | 20.3 | [1] |
Financial Services [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Mortgage loans held for sale | 299.8 | 395.1 | ||
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Mortgage loans held for sale | 0 | 0 | ||
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate lock commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | 0 | ||
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Forward sales of MBS [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | 0 | ||
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Best-efforts and mandatory commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | 0 | ||
Financial Services [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Mortgage loans held for sale | 293.9 | [2] | 389.4 | [2] |
Financial Services [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate lock commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0.4 | [3] | 7 | [3] |
Financial Services [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward sales of MBS [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 2.7 | [3] | -8.8 | [3] |
Financial Services [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Best-efforts and mandatory commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0.8 | [3] | -3.1 | [3] |
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Mortgage loans held for sale | 5.9 | [2] | 5.7 | [2] |
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate lock commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | [3] | 0 | [3] |
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Forward sales of MBS [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | [3] | 0 | [3] |
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Best-efforts and mandatory commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0 | [3] | 0 | [3] |
Financial Services [Member] | Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Mortgage loans held for sale | 299.8 | [2] | 395.1 | [2] |
Financial Services [Member] | Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate lock commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 0.4 | [3] | 7 | [3] |
Financial Services [Member] | Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | Forward sales of MBS [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | 2.7 | [3] | -8.8 | [3] |
Financial Services [Member] | Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | Best-efforts and mandatory commitments [Member] | ' | ' | ||
Fair value balance sheet items measured on a recurring basis | ' | ' | ||
Fair value of interest rate derivatives | $0.80 | [3] | ($3.10) | [3] |
[1] | In October 2012, the Company purchased defaulted debt securities which are secured by residential real estate. The Company intends to foreclose on the property or negotiate an agreement to obtain the right to take possession of the residential real estate in order to develop the property and ultimately build and sell homes. These securities, which are included in other assets in the consolidated balance sheets, are classified as available for sale and are reflected at fair value. The fair value of these securities was determined by estimating the future cash flows of the securities and the residential real estate utilizing discount rates of 6% and 18%, respectively. Unrealized gains or losses on these securities, net of tax, are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. | |||
[2] | Mortgage loans held for sale are reflected at fair value. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in financial services interest and other income. Mortgage loans held for sale at December 31, 2013 includes $5.9 million of originated loans for which the Company elected the fair value option upon origination and for which the Company has not sold into the secondary market, but plans to sell as market conditions permit. The fair value of these mortgage loans held for sale is generally calculated considering the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. | |||
[3] | Fair value measurements of these derivatives represent changes in fair value since inception and are reflected in the balance sheet. Changes in these fair values during the periods presented are included in financial services revenues in the consolidated statements of operations. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements - Level 3 Rollforward (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |||||
In Millions, unless otherwise specified | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Financial Services [Member] | Financial Services [Member] | Financial Services [Member] | Financial Services [Member] | Debt Securities [Member] | Debt Securities [Member] | Residential Real Estate [Member] | Loans Receivable [Member] | |||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Homebuilding [Member] | Financial Services [Member] | ||||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | 18.00% | ' | |||||
Other Investments | $20.30 | $20.30 | $20.30 | [1] | $20.30 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | |||
Mortgage loans held for sale | ' | ' | ' | ' | 299.8 | 395.1 | 5.9 | [2] | 5.7 | [2] | ' | ' | ' | ' | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0.1 | [2] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | [2] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.30 | [2] | ||||
[1] | In October 2012, the Company purchased defaulted debt securities which are secured by residential real estate. The Company intends to foreclose on the property or negotiate an agreement to obtain the right to take possession of the residential real estate in order to develop the property and ultimately build and sell homes. These securities, which are included in other assets in the consolidated balance sheets, are classified as available for sale and are reflected at fair value. The fair value of these securities was determined by estimating the future cash flows of the securities and the residential real estate utilizing discount rates of 6% and 18%, respectively. Unrealized gains or losses on these securities, net of tax, are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. | ||||||||||||||||
[2] | Mortgage loans held for sale are reflected at fair value. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in financial services interest and other income. Mortgage loans held for sale at December 31, 2013 includes $5.9 million of originated loans for which the Company elected the fair value option upon origination and for which the Company has not sold into the secondary market, but plans to sell as market conditions permit. The fair value of these mortgage loans held for sale is generally calculated considering the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
In Millions, unless otherwise specified | Financial Services [Member] | Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Inventories [Member] | Inventories [Member] | ||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | Financial Services [Member] | Financial Services [Member] | Homebuilding [Member] | Homebuilding [Member] | |||||||||
Inventories [Member] | Inventories [Member] | Assets Held-for-sale [Member] | Assets Held-for-sale [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 18.00% | ||||||
Assets, Fair Value Disclosure, Nonrecurring | ' | ' | $0 | [1],[2] | $0.50 | [1],[2] | $0 | [1],[3] | $10.80 | [1],[3] | ' | ' | ' | ' | ||
Other mortgage loans | ' | ' | ' | ' | ' | ' | 22.1 | [1],[4] | 22.6 | [1],[4] | ' | ' | ||||
Real Estate Acquired Through Foreclosure | $1.60 | $1.30 | ' | ' | ' | ' | $1 | [1],[4] | $0.70 | [1],[4] | ' | ' | ||||
[1] | The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value in the respective quarter. | |||||||||||||||
[2] | In performing its impairment analysis of communities, discount rates ranging from 14% to 18% were used in the periods presented. | |||||||||||||||
[3] | The fair value of inventory available for sale was determined based on recent offers received from outside third parties and actual contracts. | |||||||||||||||
[4] | The fair values of other mortgage loans and real estate owned are determined based on the value of the underlying collateral. |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements Fair Value Measurement (Details 2) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
In Millions, unless otherwise specified | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, at Carrying Value | $820.10 | $936.50 | $566.90 | $1,047.70 | ||
Notes Payable | 3,461.90 | 3,509 | ' | ' | ||
Homebuilding [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, at Carrying Value | 801.1 | 913.3 | ' | ' | ||
Restricted Cash and Cash Equivalents | 81.1 | 77.8 | ' | ' | ||
Notes Payable | 3,276.10 | 3,270.40 | ' | ' | ||
Homebuilding [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 801.1 | [1] | 913.3 | [1] | ' | ' |
Restricted Cash, Fair Value Disclosure | 81.1 | [1] | 77.8 | [1] | ' | ' |
Homebuilding [Member] | Estimated Fair Value [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 801.1 | [1] | 913.3 | [1] | ' | ' |
Restricted Cash, Fair Value Disclosure | 81.1 | [1] | 77.8 | [1] | ' | ' |
Financial Services [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, at Carrying Value | 19 | 23.2 | ' | ' | ||
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 19 | [1] | 23.2 | [1] | ' | ' |
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 185.8 | [1] | 238.6 | [1] | ' | ' |
Financial Services [Member] | Estimated Fair Value [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 185.8 | [1] | 238.6 | [1] | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 19 | [1] | 23.2 | [1] | ' | ' |
Senior Notes [Member] | Homebuilding [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable | 2,783.50 | 2,783.30 | ' | ' | ||
Senior Notes [Member] | Homebuilding [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable, Fair Value Disclosure | 2,834.80 | [2] | 2,811.50 | [2] | ' | ' |
Senior Notes [Member] | Homebuilding [Member] | Estimated Fair Value [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable, Fair Value Disclosure | 2,834.80 | [2] | 2,811.50 | [2] | ' | ' |
2% convertible senior notes [Member] | Homebuilding [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable | 487 | 478.7 | ' | ' | ||
2% convertible senior notes [Member] | Homebuilding [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable, Fair Value Disclosure | 859.7 | [2] | 762.4 | [2] | ' | ' |
2% convertible senior notes [Member] | Homebuilding [Member] | Estimated Fair Value [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Notes Payable, Fair Value Disclosure | $859.70 | [2] | $762.40 | [2] | ' | ' |
[1] | The fair value approximates carrying value due to its short-term nature, short maturity or floating interest rate terms, as applicable. | |||||
[2] | The fair value is determined based on quoted market prices of recent transactions of the notes, which is classified as Level 2 within the fair value hierarchy. |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
In Millions, unless otherwise specified | ||||||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | $820.10 | $936.50 | $566.90 | $1,047.70 | ||
Other assets | 492.9 | 517.4 | ' | ' | ||
Total assets | 8,927.20 | 8,856.40 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Accounts payable and other liabilities | 1,265.40 | 1,286 | ' | ' | ||
Notes payable | 3,461.90 | 3,509 | ' | ' | ||
Total liabilities | 4,727.30 | 4,795 | ' | ' | ||
Total stockholders' equity | 4,196.80 | 4,058.50 | ' | ' | ||
Noncontrolling interests | 3.1 | 2.9 | ' | ' | ||
Total equity | 4,199.90 | 4,061.40 | ' | ' | ||
Total liabilities and equity | 8,927.20 | 8,856.40 | ' | ' | ||
D.R. Horton, Inc. [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 777.1 | 871.4 | 526.6 | 968.9 | ||
Investments in subsidiaries | 2,538.70 | 2,477.70 | ' | ' | ||
Other assets | 152 | 167 | ' | ' | ||
Advances to Affiliate | 1,726.90 | 1,697 | ' | ' | ||
Total assets | 7,868.10 | 7,709.70 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Accounts payable and other liabilities | 398.9 | 383.8 | ' | ' | ||
Notes payable | 3,272.40 | 3,267.40 | ' | ' | ||
Total liabilities | 3,671.30 | 3,651.20 | ' | ' | ||
Total stockholders' equity | 4,196.80 | 4,058.50 | ' | ' | ||
Total equity | 4,196.80 | 4,058.50 | ' | ' | ||
Total liabilities and equity | 7,868.10 | 7,709.70 | ' | ' | ||
Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 19.8 | 38.4 | 18.9 | 56.3 | ||
Other assets | 230.2 | 233.4 | ' | ' | ||
Total assets | 4,841.40 | 4,734.20 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Accounts payable and other liabilities | 744.2 | 766.5 | ' | ' | ||
Intercompany payables | 1,696.70 | 1,664.20 | ' | ' | ||
Notes payable | 3.7 | 3 | ' | ' | ||
Total liabilities | 2,444.60 | 2,433.70 | ' | ' | ||
Total stockholders' equity | 2,396.80 | 2,300.50 | ' | ' | ||
Total equity | 2,396.80 | 2,300.50 | ' | ' | ||
Total liabilities and equity | 4,841.40 | 4,734.20 | ' | ' | ||
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 23.2 | 26.7 | 21.4 | 22.5 | ||
Other assets | 110.7 | 117 | ' | ' | ||
Total assets | 483.3 | 587.2 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Accounts payable and other liabilities | 122.3 | 135.7 | ' | ' | ||
Intercompany payables | 30.2 | 32.8 | ' | ' | ||
Notes payable | 185.8 | 238.6 | ' | ' | ||
Total liabilities | 338.3 | 407.1 | ' | ' | ||
Total stockholders' equity | 141.9 | 177.2 | ' | ' | ||
Noncontrolling interests | 3.1 | 2.9 | ' | ' | ||
Total equity | 145 | 180.1 | ' | ' | ||
Total liabilities and equity | 483.3 | 587.2 | ' | ' | ||
Eliminations [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Investments in subsidiaries | -2,538.70 | -2,477.70 | ' | ' | ||
Advances to Affiliate | -1,726.90 | -1,697 | ' | ' | ||
Total assets | -4,265.60 | -4,174.70 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Intercompany payables | -1,726.90 | -1,697 | ' | ' | ||
Total liabilities | -1,726.90 | -1,697 | ' | ' | ||
Total stockholders' equity | -2,538.70 | -2,477.70 | ' | ' | ||
Total equity | -2,538.70 | -2,477.70 | ' | ' | ||
Total liabilities and equity | -4,265.60 | -4,174.70 | ' | ' | ||
Homebuilding [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 801.1 | 913.3 | ' | ' | ||
Restricted cash | 81.1 | 77.8 | ' | ' | ||
Inventories | 6,496.10 | [1] | 6,197.40 | [1] | ' | ' |
Deferred income taxes | 578.5 | 586.6 | ' | ' | ||
Property and equipment, net | 117.5 | 106.7 | ' | ' | ||
Other assets | 441.1 | 460.5 | ' | ' | ||
Goodwill | 41.2 | 38.9 | ' | ' | ||
Total assets | 8,556.60 | 8,381.20 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Notes payable | 3,276.10 | 3,270.40 | ' | ' | ||
Total liabilities | 4,502.50 | 4,502.80 | ' | ' | ||
Homebuilding [Member] | D.R. Horton, Inc. [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Restricted cash | 80.2 | 76.5 | ' | ' | ||
Inventories | 2,344.10 | 2,177.40 | ' | ' | ||
Deferred income taxes | 205 | 201.7 | ' | ' | ||
Property and equipment, net | 44.1 | 41 | ' | ' | ||
Homebuilding [Member] | Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Restricted cash | 0.9 | 1.2 | ' | ' | ||
Inventories | 4,135.80 | 4,002.90 | ' | ' | ||
Deferred income taxes | 373.5 | 384.9 | ' | ' | ||
Property and equipment, net | 40 | 34.5 | ' | ' | ||
Goodwill | 41.2 | 38.9 | ' | ' | ||
Homebuilding [Member] | Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Restricted cash | 0 | 0.1 | ' | ' | ||
Inventories | 16.2 | 17.1 | ' | ' | ||
Property and equipment, net | 33.4 | 31.2 | ' | ' | ||
Financial Services [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 19 | 23.2 | ' | ' | ||
Other assets | 51.8 | 56.9 | ' | ' | ||
Mortgage loans held for sale | 299.8 | 395.1 | ' | ' | ||
Total assets | 370.6 | 475.2 | ' | ' | ||
LIABILITIES & EQUITY | ' | ' | ' | ' | ||
Total liabilities | 224.8 | 292.2 | ' | ' | ||
Financial Services [Member] | Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Mortgage loans held for sale | $299.80 | $395.10 | ' | ' | ||
[1] | Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision maker. |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information (Details 1) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Homebuilding: | ' | ' | ||
Interest expense | $0 | ($4.20) | ||
Financial Services [Abstract] | ' | ' | ||
Interest expense | 0 | -4.2 | ||
Income (loss) before income taxes | 189.7 | [1] | 107.9 | [1] |
Income tax expense (benefit) | 66.5 | 41.6 | ||
Net income | 123.2 | 66.3 | ||
Comprehensive income | 123.2 | 66.2 | ||
Homebuilding [Member] | ' | ' | ||
Homebuilding: | ' | ' | ||
Revenues | 1,635.60 | 1,233.20 | ||
Cost of sales | 1,273.60 | 1,002.30 | ||
Gross profit | 362 | 230.9 | ||
Selling, general and administrative expense | 183.4 | 140.8 | ||
Interest expense | 0 | 3.2 | ||
Other (income) | -3.3 | -3.3 | ||
Financial Services [Abstract] | ' | ' | ||
Interest expense | 0 | 3.2 | ||
Income (loss) before income taxes | 181.9 | [1] | 90.2 | [1] |
Financial Services [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Financial Services Revenue | 35 | 41.9 | ||
General and administrative expense | 29.8 | 25.7 | ||
Interest and other (income) | -2.6 | -1.5 | ||
Income (loss) before income taxes | 7.8 | [1] | 17.7 | [1] |
D.R. Horton, Inc. [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Income tax expense (benefit) | 66.5 | 41.6 | ||
Net income | 123.2 | 66.3 | ||
Comprehensive income | 123.2 | 66.2 | ||
D.R. Horton, Inc. [Member] | Homebuilding [Member] | ' | ' | ||
Homebuilding: | ' | ' | ||
Revenues | 552.1 | 406.2 | ||
Cost of sales | 429.6 | 327 | ||
Gross profit | 122.5 | 79.2 | ||
Selling, general and administrative expense | 88.9 | 64 | ||
Equity in (income) of subsidiaries | -155.6 | -94.9 | ||
Interest expense | ' | 3.2 | ||
Other (income) | -0.5 | -1 | ||
Financial Services [Abstract] | ' | ' | ||
Interest expense | ' | 3.2 | ||
Guarantor Subsidiaries [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Income tax expense (benefit) | 52 | 26.8 | ||
Net income | 96.2 | 57.1 | ||
Comprehensive income | 96.2 | 57.1 | ||
Guarantor Subsidiaries [Member] | Homebuilding [Member] | ' | ' | ||
Homebuilding: | ' | ' | ||
Revenues | 1,080.20 | 823.6 | ||
Cost of sales | 840.3 | 665.7 | ||
Gross profit | 239.9 | 157.9 | ||
Selling, general and administrative expense | 92.6 | 75.1 | ||
Other (income) | -0.9 | -1.1 | ||
Non-Guarantor Subsidiaries [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Income tax expense (benefit) | 2.6 | 1.5 | ||
Net income | 4.8 | 9.5 | ||
Comprehensive income | 4.8 | 9.5 | ||
Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ' | ' | ||
Homebuilding: | ' | ' | ||
Revenues | 3.3 | 3.4 | ||
Cost of sales | 3.7 | 9.6 | ||
Gross profit | -0.4 | -6.2 | ||
Selling, general and administrative expense | 1.9 | 1.7 | ||
Other (income) | -1.9 | -1.2 | ||
Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Financial Services Revenue | 35 | 41.9 | ||
General and administrative expense | 29.8 | 25.7 | ||
Interest and other (income) | -2.6 | -1.5 | ||
Income (loss) before income taxes | 7.8 | 17.7 | ||
Eliminations [Member] | ' | ' | ||
Financial Services [Abstract] | ' | ' | ||
Income tax expense (benefit) | -54.6 | -28.3 | ||
Net income | -101 | -66.6 | ||
Comprehensive income | -101 | -66.6 | ||
Eliminations [Member] | Homebuilding [Member] | ' | ' | ||
Homebuilding: | ' | ' | ||
Equity in (income) of subsidiaries | $155.60 | $94.90 | ||
[1] | Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net cash used in operating activities | ($7.50) | ($656.50) |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -18.3 | -14 |
Purchases of marketable securities | 0 | -26.8 |
Proceeds from the sale or maturity of marketable securities | 0 | 226.7 |
Decrease (increase) in restricted cash | -3.3 | -5.5 |
Net principal increase of mortgage loans held in portfolio and real estate owned | -1.2 | -0.2 |
Payments to Acquire Other Investments | 0 | 18.6 |
Payment related to acquisition of a business | -34.5 | -9.4 |
Net cash (used in) provided by investing activities | -57.3 | 152.2 |
FINANCING ACTIVITIES | ' | ' |
Net change in notes payable | -55.8 | 81.6 |
Proceeds from stock associated with certain employee benefit plans | 3.3 | 2.1 |
Income tax benefit from employee stock awards | 0.9 | 0 |
Cash dividends paid | 0 | -60.2 |
Net cash provided by (used in) financing activities | -51.6 | 23.5 |
(Decrease) increase in cash and cash equivalents | -116.4 | -480.8 |
Cash and cash equivalents at beginning of period | 936.5 | 1,047.70 |
Cash and cash equivalents at end of period | 820.1 | 566.9 |
D.R. Horton, Inc. [Member] | ' | ' |
OPERATING ACTIVITIES | ' | ' |
Net cash used in operating activities | -23.5 | -186.2 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -6.4 | -6.5 |
Purchases of marketable securities | ' | -26.8 |
Proceeds from the sale or maturity of marketable securities | ' | 226.7 |
Decrease (increase) in restricted cash | -3.7 | -5.3 |
Payments to Acquire Other Investments | ' | 18.6 |
Payments for (Proceeds from) Other Investing Activities | -27.4 | -458.1 |
Payment related to acquisition of a business | -34.5 | -9.4 |
Net cash (used in) provided by investing activities | -72 | -298 |
FINANCING ACTIVITIES | ' | ' |
Net change in notes payable | -3 | 100 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Proceeds from stock associated with certain employee benefit plans | 3.3 | 2.1 |
Income tax benefit from employee stock awards | 0.9 | ' |
Cash dividends paid | 0 | -60.2 |
Net cash provided by (used in) financing activities | 1.2 | 41.9 |
(Decrease) increase in cash and cash equivalents | -94.3 | -442.3 |
Cash and cash equivalents at beginning of period | 871.4 | 968.9 |
Cash and cash equivalents at end of period | 777.1 | 526.6 |
Guarantor Subsidiaries [Member] | ' | ' |
OPERATING ACTIVITIES | ' | ' |
Net cash used in operating activities | -40.3 | -491.3 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -8.6 | -3.7 |
Decrease (increase) in restricted cash | 0.3 | -0.2 |
Payment related to acquisition of a business | 0 | ' |
Net cash (used in) provided by investing activities | -8.3 | -3.9 |
FINANCING ACTIVITIES | ' | ' |
Net change in notes payable | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | 30 | 457.8 |
Net cash provided by (used in) financing activities | 30 | 457.8 |
(Decrease) increase in cash and cash equivalents | -18.6 | -37.4 |
Cash and cash equivalents at beginning of period | 38.4 | 56.3 |
Cash and cash equivalents at end of period | 19.8 | 18.9 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
OPERATING ACTIVITIES | ' | ' |
Net cash used in operating activities | 96.3 | 51 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -3.3 | -3.8 |
Decrease (increase) in restricted cash | 0.1 | 0 |
Net principal increase of mortgage loans held in portfolio and real estate owned | -1.2 | -0.2 |
Net cash (used in) provided by investing activities | -4.4 | -4 |
FINANCING ACTIVITIES | ' | ' |
Net change in notes payable | -52.8 | -18.4 |
Proceeds from (Payments for) Other Financing Activities | -2.6 | 0.3 |
Cash dividends paid | -40 | -30 |
Net cash provided by (used in) financing activities | -95.4 | -48.1 |
(Decrease) increase in cash and cash equivalents | -3.5 | -1.1 |
Cash and cash equivalents at beginning of period | 26.7 | 22.5 |
Cash and cash equivalents at end of period | 23.2 | 21.4 |
Eliminations [Member] | ' | ' |
OPERATING ACTIVITIES | ' | ' |
Net cash used in operating activities | -40 | -30 |
INVESTING ACTIVITIES | ' | ' |
Payments for (Proceeds from) Other Investing Activities | 27.4 | 458.1 |
Net cash (used in) provided by investing activities | 27.4 | 458.1 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from (Payments for) Other Financing Activities | -27.4 | -458.1 |
Cash dividends paid | 40 | 30 |
Net cash provided by (used in) financing activities | $12.60 | ($428.10) |