Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 24, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-14122 | |
Entity Registrant Name | HORTON D R INC /DE/ | |
Entity Central Index Key | 0000882184 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2386963 | |
Entity Address, Address Line One | 1341 Horton Circle | |
Entity Address, City or Town | Arlington | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76011 | |
City Area Code | 817 | |
Local Phone Number | 390-8200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 369,819,919 | |
Common Stock, par value $.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | DHI | |
Security Exchange Name | NYSE | |
5.750% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.750% Senior Notes due 2023 | |
Trading Symbol | DHI 23A | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 864.2 | $ 1,473.1 |
Restricted cash | 21.1 | 32.9 |
Total cash, cash equivalents and restricted cash | 885.3 | 1,506 |
Inventories: | ||
Construction in progress and finished homes | 5,722.6 | 5,086.3 |
Residential land and lots — developed and under development | 5,811.4 | 5,172.4 |
Land held for development | 125.7 | 96.1 |
Land held for sale | 42.6 | 40.2 |
Total inventories | 11,702.3 | 10,395 |
Mortgage loans held for sale | 954.9 | 796.4 |
Deferred income taxes, net of valuation allowance of $16.6 million and $17.7 million at June 30, 2019 and September 30, 2018, respectively | 173.9 | 194 |
Property and equipment, net | 454.2 | 401.1 |
Other assets | 889.9 | 712.9 |
Goodwill | 163.5 | 109.2 |
Total assets | 15,224 | 14,114.6 |
LIABILITIES | ||
Accounts payable | 681.2 | 624.7 |
Accrued expenses and other liabilities | 1,277.5 | 1,127.5 |
Notes payable | 3,450.6 | 3,203.5 |
Total liabilities | 5,409.3 | 4,955.7 |
Commitments and contingencies (Note K) | ||
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, 391,365,282 shares issued and 369,748,212 shares outstanding at June 30, 2019 and 388,120,243 shares issued and 376,261,635 shares outstanding at September 30, 2018 | 3.9 | 3.9 |
Additional paid-in capital | 3,146 | 3,085 |
Retained earnings | 7,190.4 | 6,217.9 |
Treasury stock, 21,617,070 shares and 11,858,608 shares at June 30, 2019 and September 30, 2018, respectively, at cost | (697.9) | (322.4) |
Stockholders’ equity | 9,642.4 | 8,984.4 |
Noncontrolling interests | 172.3 | 174.5 |
Total equity | 9,814.7 | 9,158.9 |
Total liabilities and equity | $ 15,224 | $ 14,114.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
ASSETS | ||
Valuation allowance for deferred income taxes | $ 16.6 | $ 17.7 |
Preferred Stock, Par or Stated Value Per Share | $ 0.1 | $ 0.1 |
Preferred Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 391,365,282 | 388,120,243 |
Common Stock, Shares, Outstanding | 369,748,212 | 376,261,635 |
EQUITY | ||
Treasury Stock, Shares | 21,617,070 | 11,858,608 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||||||
Revenues | $ 4,906.3 | $ 4,435.3 | $ 12,554 | $ 11,562.9 | ||||
Cost of sales | 3,831.6 | 3,397.2 | 9,839.4 | 8,939 | ||||
Selling, general and administrative expense | 480 | 434.9 | 1,327 | 1,219.9 | ||||
Gain on sale of assets | (22.6) | 0 | (53.9) | (14.5) | ||||
Other (income) expense | (9.4) | (13) | (23.7) | (33.8) | ||||
Income before income taxes | 626.7 | 616.2 | 1,465.2 | 1,452.3 | ||||
Income tax expense | 153.1 | 162.5 | 350.5 | 458.9 | ||||
Net income | 473.6 | $ 354.4 | $ 286.7 | 453.7 | $ 350.8 | $ 188.8 | 1,114.7 | 993.4 |
Net income (loss) attributable to noncontrolling interests | (1.2) | (0.1) | 1.5 | (0.7) | ||||
Net income attributable to D.R. Horton, Inc. | $ 474.8 | $ 453.8 | $ 1,113.2 | $ 994.1 | ||||
Basic net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 1.28 | $ 1.20 | $ 2.98 | $ 2.64 | ||||
Weighted average number of common shares | 372.3 | 377.4 | 373.5 | 376.6 | ||||
Diluted net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 1.26 | $ 1.18 | $ 2.94 | $ 2.59 | ||||
Adjusted weighted average number of common shares | 376.9 | 383.4 | 378.2 | 383.6 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity Consolidated Statements of Total Equity - USD ($) $ in Millions | Total | Common Stock, par value $.01 per share | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Beginning Balances at Sep. 30, 2017 | $ 7,747.6 | $ 3.8 | $ 2,992.2 | $ 4,946 | $ (194.9) | $ 0.5 |
Noncontrolling interests acquired | 175.2 | 175.2 | ||||
Net income | 188.8 | 0 | 0 | 189.3 | 0 | (0.5) |
Exercise of stock options | 14.8 | 0.1 | 14.7 | |||
Stock issued under employee incentive plans | 0 | |||||
Cash paid for shares withheld for taxes | (10.3) | 0 | 10.3 | 0 | 0 | 0 |
Stock-based compensation expense | 13.6 | 13.6 | ||||
Cash dividends declared | (47.1) | (47.1) | ||||
Repurchases of common stock | (25.4) | (25.4) | ||||
Distributions to noncontrolling interests | (1.8) | (1.8) | ||||
Ending Balances at Dec. 31, 2017 | 8,055.4 | 3.9 | 3,010.2 | 5,088.2 | (220.3) | 173.4 |
Beginning Balances at Sep. 30, 2017 | 7,747.6 | 3.8 | 2,992.2 | 4,946 | (194.9) | 0.5 |
Net income | 993.4 | |||||
Cash paid for shares withheld for taxes | (10.3) | |||||
Ending Balances at Jun. 30, 2018 | 8,769.9 | 3.9 | 3,064.4 | 5,798.8 | (269.8) | 172.6 |
Beginning Balances at Dec. 31, 2017 | 8,055.4 | 3.9 | 3,010.2 | 5,088.2 | (220.3) | 173.4 |
Net income | 350.8 | 0 | 0 | 351 | 0 | (0.2) |
Exercise of stock options | 16.3 | 0 | 16.3 | |||
Stock issued under employee incentive plans | 1.8 | 1.8 | ||||
Stock-based compensation expense | 17.4 | 17.4 | ||||
Cash dividends declared | (47.1) | (47.1) | ||||
Repurchases of common stock | (22.5) | (22.5) | ||||
Distributions to noncontrolling interests | (0.2) | (0.2) | ||||
Ending Balances at Mar. 31, 2018 | 8,371.9 | 3.9 | 3,045.7 | 5,392.1 | (242.8) | 173 |
Net income | 453.7 | 0 | 0 | 453.8 | 0 | (0.1) |
Exercise of stock options | 3.4 | 0 | 3.4 | |||
Stock issued under employee incentive plans | 0 | |||||
Stock-based compensation expense | 15.3 | 15.3 | ||||
Cash dividends declared | (47.1) | (47.1) | ||||
Repurchases of common stock | (27) | (27) | ||||
Distributions to noncontrolling interests | (0.3) | (0.3) | ||||
Ending Balances at Jun. 30, 2018 | 8,769.9 | 3.9 | 3,064.4 | 5,798.8 | (269.8) | 172.6 |
Beginning Balances at Sep. 30, 2018 | 9,158.9 | 3.9 | 3,085 | 6,217.9 | (322.4) | 174.5 |
Cumulative effect of adoption of ASC 606 | 27.1 | 27.1 | 0 | |||
Net income | 286.7 | 0 | 0 | 287.2 | 0 | (0.5) |
Exercise of stock options | 8.6 | 0 | 8.6 | |||
Stock issued under employee incentive plans | 0 | |||||
Cash paid for shares withheld for taxes | (4.1) | 0 | 4.1 | 0 | 0 | 0 |
Stock-based compensation expense | 18.1 | 18.1 | ||||
Cash dividends declared | (56) | (56) | ||||
Repurchases of common stock | (140.6) | (140.6) | ||||
Distributions to noncontrolling interests | (0.5) | 0.5 | ||||
Ending Balances at Dec. 31, 2018 | 9,298.2 | 3.9 | 3,107.6 | 6,476.2 | (463) | 173.5 |
Beginning Balances at Sep. 30, 2018 | 9,158.9 | 3.9 | 3,085 | 6,217.9 | (322.4) | 174.5 |
Net income | 1,114.7 | |||||
Cash paid for shares withheld for taxes | (19.5) | |||||
Ending Balances at Jun. 30, 2019 | 9,814.7 | 3.9 | 3,146 | 7,190.4 | (697.9) | 172.3 |
Beginning Balances at Dec. 31, 2018 | 9,298.2 | 3.9 | 3,107.6 | 6,476.2 | (463) | 173.5 |
Net income | 354.4 | 0 | 0 | 351.3 | 0 | 3.1 |
Exercise of stock options | 11.4 | 0 | 11.4 | |||
Stock issued under employee incentive plans | 2.3 | 2 | 0.3 | |||
Cash paid for shares withheld for taxes | (15.4) | 0 | 15.4 | 0 | 0 | 0 |
Stock-based compensation expense | 17.8 | 17.8 | ||||
Cash dividends declared | (55.9) | (55.9) | ||||
Repurchases of common stock | (75.6) | (75.6) | ||||
Distributions to noncontrolling interests | (3.2) | 3.2 | ||||
Ending Balances at Mar. 31, 2019 | 9,534 | 3.9 | 3,123.4 | 6,771.6 | (538.6) | 173.7 |
Net income | 473.6 | 0 | 0 | 474.8 | 0 | (1.2) |
Exercise of stock options | 4.6 | 0 | 4.6 | |||
Stock issued under employee incentive plans | 0 | |||||
Stock-based compensation expense | 18 | 18 | ||||
Cash dividends declared | (56) | (56) | ||||
Repurchases of common stock | (159.3) | (159.3) | ||||
Distributions to noncontrolling interests | (0.2) | 0.2 | ||||
Ending Balances at Jun. 30, 2019 | $ 9,814.7 | $ 3.9 | $ 3,146 | $ 7,190.4 | $ (697.9) | $ 172.3 |
Consolidated Statements of To_2
Consolidated Statements of Total Equity Consolidated Statements of Total Equity (Parenthetical) - shares | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Beginning Balances, shares | 376,261,635 | |||||
Ending Balances, shares | 369,748,212 | |||||
Common Stock, par value $.01 per share | ||||||
Beginning Balances, shares | 373,132,964 | 373,242,060 | 376,261,635 | 377,409,517 | 375,693,966 | 374,986,079 |
Exercise of stock options | 271,186 | 831,489 | 806,817 | 185,389 | 1,046,210 | 916,913 |
Stock issued under employee benefit plans | 2,524 | 1,059,415 | 273,608 | 6,796 | 1,169,341 | 290,974 |
Repurchases of common stock | (3,658,462) | (2,000,000) | (4,100,000) | (608,537) | (500,000) | (500,000) |
Ending Balances, shares | 369,748,212 | 373,132,964 | 373,242,060 | 376,993,165 | 377,409,517 | 375,693,966 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,114.7 | $ 993.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 52.4 | 46.6 |
Amortization of discounts and fees | 8.1 | 6.3 |
Stock-based compensation expense | 53.9 | 46.3 |
Equity in earnings of unconsolidated entities | (0.5) | (3.1) |
Distributions of earnings of unconsolidated entities | 0.5 | 0.2 |
Deferred income taxes | 11.7 | 160.3 |
Inventory and land option charges | 41 | 42.8 |
Gain on sale of assets | (53.9) | (14.5) |
Changes in operating assets and liabilities: | ||
Increase in construction in progress and finished homes | (393) | (590.6) |
Increase in residential land and lots – developed, under development, held for development and held for sale | (606.2) | (359.8) |
Increase in other assets | (138.1) | (34.6) |
Increase in mortgage loans held for sale | (158.5) | (92.4) |
Increase in accounts payable, accrued expenses and other liabilities | 148.6 | 105.6 |
Net cash provided by (used in) operating activities | 80.7 | 306.5 |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (105.3) | (54) |
Proceeds from sale of assets | 143.8 | 261.1 |
Expenditures related to multi-family rental properties | (56.3) | (56.1) |
Return of investment in unconsolidated entities | 4.4 | 15.4 |
Net principal increase of other mortgage loans and real estate owned | (2) | (0.8) |
Payments related to business acquisitions | (310.9) | (158.1) |
Net cash (used in) provided by investing activities | (326.3) | 7.5 |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 2,528.2 | 2,164.3 |
Repayment of notes payable | (2,536.1) | (2,179.5) |
Advances on mortgage repurchase facility, net | 158.8 | 106.3 |
Proceeds from stock associated with certain employee benefit plans | 26.8 | 36.2 |
Cash paid for shares withheld for taxes | (19.5) | (10.3) |
Cash dividends paid | (167.9) | (141.3) |
Repurchases of common stock | (361.5) | (74.9) |
Distributions to noncontrolling interests, net | (3.9) | (2.2) |
Net cash (used in) provided by financing activities | (375.1) | (101.4) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (620.7) | 212.6 |
Cash, cash equivalents and restricted cash at beginning of period | 1,506 | 1,024.3 |
Cash, cash equivalents and restricted cash at end of period | 885.3 | 1,236.9 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
Notes Issued | 83.6 | 0 |
Stock issued under employee incentive plans | 49.1 | 63.7 |
Accrual for holdback payment related to acquisition | 15 | 0 |
Repurchase Of Common Stock Not Settled | $ 14 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2019 | |
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 collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. The Company owns a 75% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 25% interest the Company does not own is accounted for as noncontrolling interests. All 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, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2018 , which was derived from audited 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, 2018 . Changes in Presentation and Reclassifications In connection with the adoption of Accounting Standards Update (ASU) 2016-18 in fiscal 2019, restricted cash is now included with cash and cash equivalents when reconciling beginning and ending amounts in the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current year presentation, resulting in a decrease in cash used in investing activities of $42.2 million for the nine months ended June 30, 2018 . In August 2018, the Securities and Exchange Commission (SEC) issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. In complying with the relevant aspects of the rule within the current year quarterly reports, the Company has removed the presentation of cash dividends declared per common share from the statements of operations and has added the consolidated statements of total equity. Certain other prior period amounts have been reclassified to conform to the current year presentation. Adoption of New Accounting Standard On October 1, 2018, the Company adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" (ASC 606), which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Results for the reporting period beginning after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. The Company recorded an increase to retained earnings of $27.1 million , net of tax, as of October 1, 2018, due to the cumulative effect of adopting ASC 606, which was primarily related to the recognition of contract assets totaling $32.4 million for insurance brokerage commission renewals. Under ASC 606, the Company recognizes revenue and a contract asset for estimated future renewals of these policies upon issuance of the initial policy, the date at which the performance obligation is satisfied. There was not a material impact to revenues as a result of applying ASC 606 for the three and nine months ended June 30, 2019 , and there have not been significant changes to the Company’s business processes, systems, or internal controls as a result of implementing the standard. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Seasonality Historically, the homebuilding industry has experienced seasonal fluctuations; therefore, the operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019 or subsequent periods. Revenue Recognition Homebuilding revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Proceeds from home closings held for the Company’s benefit at title companies are included in homebuilding cash and cash equivalents in the consolidated balance sheets. The Company rarely purchases land for resale, but periodically may elect to sell parcels of land that no longer fit into its strategic operating plans. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied. Financial services revenues associated with the Company’s title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur simultaneously as each home is closed. The Company transfers substantially all underwriting risk associated with title insurance policies to third-party insurers. The Company typically elects the fair value option for its mortgage loan originations. Mortgage loans held for sale are initially recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loans are sold. Net origination costs and fees associated with mortgage loans are recognized at the time of origination. The expected net future cash flows related to the associated servicing of a loan are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the loan is sold. The Company collects insurance commissions on homeowner policies placed with third party carriers through its wholly owned insurance agency. The Company recognizes revenue and a contract asset for estimated future renewals of these policies upon issuance of the initial policy, the date at which the performance obligation is satisfied. Business Acquisitions During the first quarter of fiscal 2019, the Company acquired the homebuilding operations of Westport Homes, Classic Builders and Terramor Homes for $325.9 million . The assets acquired included approximately 700 homes in inventory, 4,500 lots and control of approximately 4,300 additional lots through land purchase contracts. The Company also acquired a sales order backlog of approximately 700 homes. Westport Homes operates in Indianapolis and Fort Wayne, Indiana, and Columbus, Ohio; Classic Builders operates in Des Moines, Iowa; and Terramor Homes operates in Raleigh, North Carolina. The Company’s allocation of the aggregate purchase price of these transactions, which was finalized during the current quarter, was based on the estimated fair value of the assets and liabilities acquired as follows (in millions): Inventories $ 265.5 Other assets 23.3 Goodwill 54.3 Intangible assets 8.6 Other liabilities (25.8 ) Net assets acquired $ 325.9 As a result of these transactions, the Company recorded goodwill of $54.3 million , of which $49.7 million was allocated to the Midwest region and $4.6 million was allocated to the East region. The goodwill is tax deductible and relates to expected synergies from expanding the Company’s market presence in its Midwest and East regions, the experienced and knowledgeable workforce of these entities and their capital efficient operating processes. The intangible assets will be amortized on a straight-line basis to selling, general and administrative (SG&A) expense over their expected lives, which range from one to three years . Pending Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases,” which requires that lease assets and liabilities be recognized on the balance sheet and that key information about leasing arrangements be disclosed. The guidance is effective for the Company beginning October 1, 2019 and is not expected to have a material impact on its consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information in determining credit loss estimates. The guidance is effective for the Company beginning October 1, 2020 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other,” which simplifies the measurement of goodwill impairment by removing the second step of the goodwill impairment test and requires the determination of the fair value of individual assets and liabilities of a reporting unit. Under the new guidance, goodwill impairment is measured as the amount by which a reporting unit’s carrying amount exceeds its fair value with the loss recognized limited to the total amount of goodwill allocated to the reporting unit. The guidance is effective for the Company beginning October 1, 2020 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is a national homebuilder that is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 87 markets in 29 states across the United States. The Company’s operating segments are its 51 homebuilding divisions, its majority-owned Forestar residential lot development operations, its financial services operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar land development segment and its financial services segment. The homebuilding operating segments are aggregated into the following six reporting segments: 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, Iowa, Minnesota and Ohio Southeast: Alabama, Florida, Georgia, Mississippi and Tennessee South Central: Louisiana, Oklahoma and Texas Southwest: Arizona and New Mexico West: California, Hawaii, Nevada, Oregon, Utah and Washington The Company’s homebuilding divisions design, build and sell single-family detached homes on lots they develop and on fully developed lots purchased ready for home construction. To a lesser extent, the homebuilding divisions also build and sell attached homes, such as townhomes, duplexes and triplexes. Most of the revenue generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots. The Forestar segment is a residential lot development company with operations in 50 markets and 20 states. The Company’s homebuilding divisions and Forestar are identifying land development opportunities to expand Forestar’s platform, and the homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance. The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. In addition to its homebuilding, Forestar and financial services operations, the Company has subsidiaries that engage in other business activities. These subsidiaries conduct insurance-related operations, construct and own income-producing rental properties, own non-residential real estate including ranch land and improvements and own and operate oil and gas related assets. The operating results of these subsidiaries are immaterial for separate reporting and therefore are grouped together and presented as other. One of these subsidiaries, DHI Communities, constructs multi-family rental properties and has five projects under active construction and one project that was substantially complete at June 30, 2019 . In January 2019 , DHI Communities sold its first multi-family rental property for $73.4 million and recorded a gain on the sale of $29.3 million . In June 2019 , DHI Communities sold its second multi-family rental property for $60.0 million and recorded a gain on the sale of $22.6 million . At June 30, 2019 and September 30, 2018 , the consolidated balance sheets included $167.2 million and $173.2 million , respectively, of assets related to DHI Communities. 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, 2018 . Financial information relating to the Company’s reporting segments is as follows: June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 577.9 $ 223.0 $ 44.7 $ 18.6 $ — $ — $ 864.2 Restricted cash 9.8 0.2 11.1 — — — 21.1 Inventories: Construction in progress and finished homes 5,723.5 — — — (0.9 ) — 5,722.6 Residential land and lots — developed and under development 4,847.4 988.7 — — (27.6 ) 2.9 5,811.4 Land held for development 64.9 60.8 — — — — 125.7 Land held for sale 42.6 — — — — — 42.6 10,678.4 1,049.5 — — (28.5 ) 2.9 11,702.3 Mortgage loans held for sale — — 954.9 — — — 954.9 Deferred income taxes, net 154.4 21.0 — — 3.7 (5.2 ) 173.9 Property and equipment, net 234.2 2.4 3.2 214.4 — — 454.2 Other assets 824.2 29.1 67.7 40.2 (83.0 ) 11.7 889.9 Goodwill 134.3 — — — — 29.2 163.5 $ 12,613.2 $ 1,325.2 $ 1,081.6 $ 273.2 $ (107.8 ) $ 38.6 $ 15,224.0 Liabilities Accounts payable $ 640.6 $ 19.5 $ 18.4 $ 3.4 $ (0.7 ) $ — $ 681.2 Accrued expenses and other liabilities 1,155.8 151.5 56.9 19.7 (93.7 ) (12.7 ) 1,277.5 Notes payable 2,191.3 458.9 796.5 — — 3.9 3,450.6 $ 3,987.7 $ 629.9 $ 871.8 $ 23.1 $ (94.4 ) $ (8.8 ) $ 5,409.3 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. September 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,111.8 $ 318.8 $ 33.7 $ 8.8 $ — $ — $ 1,473.1 Restricted cash 8.6 16.2 8.1 — — — 32.9 Inventories: Construction in progress and finished homes 5,084.4 — — — 1.9 — 5,086.3 Residential land and lots — developed and under development 4,689.3 463.1 — — (7.2 ) 27.2 5,172.4 Land held for development 61.2 34.9 — — — — 96.1 Land held for sale 40.2 — — — — — 40.2 9,875.1 498.0 — — (5.3 ) 27.2 10,395.0 Mortgage loans held for sale — — 796.4 — — — 796.4 Deferred income taxes, net 176.5 26.9 — — 1.1 (10.5 ) 194.0 Property and equipment, net 207.1 1.8 3.0 189.2 — — 401.1 Other assets 673.7 31.4 43.6 0.9 (48.6 ) 11.9 712.9 Goodwill 80.0 — — — — 29.2 109.2 $ 12,132.8 $ 893.1 $ 884.8 $ 198.9 $ (52.8 ) $ 57.8 $ 14,114.6 Liabilities Accounts payable $ 612.4 $ 11.2 $ 0.2 $ 4.2 $ (3.3 ) $ — $ 624.7 Accrued expenses and other liabilities 1,041.3 95.7 41.9 9.9 (46.1 ) (15.2 ) 1,127.5 Notes payable 2,445.9 111.7 637.7 — — 8.2 3,203.5 $ 4,099.6 $ 218.6 $ 679.8 $ 14.1 $ (49.4 ) $ (7.0 ) $ 4,955.7 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Three Months Ended June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 4,734.6 $ — $ — $ — $ — $ — $ 4,734.6 Land/lot sales and other 27.5 88.2 — 9.6 (73.2 ) — 52.1 Financial services — — 119.6 — — — 119.6 4,762.1 88.2 119.6 9.6 (73.2 ) — 4,906.3 Cost of sales: Home sales (5) 3,773.0 — — — (1.3 ) — 3,771.7 Land/lot sales and other 23.2 75.3 — — (66.0 ) 8.2 40.7 Inventory and land option charges 19.2 — — — — — 19.2 3,815.4 75.3 — — (67.3 ) 8.2 3,831.6 Selling, general and administrative expense 387.4 7.9 76.4 8.2 — 0.1 480.0 Gain on sale of assets — (1.5 ) — (22.6 ) — 1.5 (22.6 ) Other (income) expense (2.5 ) (1.9 ) (4.9 ) (0.1 ) — — (9.4 ) Income before income taxes $ 561.8 $ 8.4 $ 48.1 $ 24.1 $ (5.9 ) $ (9.8 ) $ 626.7 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. (5) Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Nine Months Ended June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 12,125.8 $ — $ — $ — $ — $ — $ 12,125.8 Land/lot sales and other 49.2 192.0 — 22.4 (141.8 ) — 121.8 Financial services — — 306.4 — — — 306.4 12,175.0 192.0 306.4 22.4 (141.8 ) — 12,554.0 Cost of sales: Home sales (5) 9,716.5 — — — (3.1 ) — 9,713.4 Land/lot sales and other 37.6 149.6 — — (122.2 ) 20.0 85.0 Inventory and land option charges 41.0 — — — — — 41.0 9,795.1 149.6 — — (125.3 ) 20.0 9,839.4 Selling, general and administrative expense 1,071.4 19.8 213.4 22.1 — 0.3 1,327.0 Gain on sale of assets (2.0 ) (2.4 ) — (51.9 ) — 2.4 (53.9 ) Other (income) expense (6.1 ) (4.6 ) (12.6 ) (0.4 ) — — (23.7 ) Income before income taxes $ 1,316.6 $ 29.6 $ 105.6 $ 52.6 $ (16.5 ) $ (22.7 ) $ 1,465.2 Summary Cash Flow Information: Depreciation and amortization $ 46.4 $ 0.2 $ 1.1 $ 4.3 $ — $ 0.4 $ 52.4 Cash provided by (used in) operating activities $ 605.7 $ (450.1 ) $ (65.5 ) $ (2.5 ) $ (2.5 ) $ (4.4 ) $ 80.7 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. (5) Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Three Months Ended June 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 4,265.5 $ — $ — $ — $ — $ — $ 4,265.5 Land/lot sales and other 59.1 23.6 — — (8.8 ) (1.2 ) 72.7 Financial services — — 97.1 — — — 97.1 4,324.6 23.6 97.1 — (8.8 ) (1.2 ) 4,435.3 Cost of sales: Home sales 3,332.8 — — — — — 3,332.8 Land/lot sales and other 45.4 10.0 — — (5.6 ) 5.7 55.5 Inventory and land option charges 8.9 — — — — — 8.9 3,387.1 10.0 — — (5.6 ) 5.7 3,397.2 Selling, general and administrative expense 349.1 6.5 71.1 8.1 — 0.1 434.9 Gain on sale of assets — (1.3 ) — — — 1.3 — Interest expense — 1.6 — — (1.6 ) — — Other (income) expense (1.3 ) (3.7 ) (4.3 ) (5.0 ) — 1.3 (13.0 ) Income (loss) before income taxes $ 589.7 $ 10.5 $ 30.3 $ (3.1 ) $ (1.6 ) $ (9.6 ) $ 616.2 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Nine Months Ended June 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 11,122.1 $ — $ — $ — $ — $ — $ 11,122.1 Land/lot sales and other 109.2 77.0 — — (17.3 ) (1.2 ) 167.7 Financial services — — 273.1 — — — 273.1 11,231.3 77.0 273.1 — (17.3 ) (1.2 ) 11,562.9 Cost of sales: Home sales 8,761.7 — — — — — 8,761.7 Land/lot sales and other 88.7 45.5 — — (12.3 ) 12.6 134.5 Inventory and land option charges 42.8 — — — — — 42.8 8,893.2 45.5 — — (12.3 ) 12.6 8,939.0 Selling, general and administrative expense 976.6 25.6 199.6 17.8 — 0.3 1,219.9 Gain on sale of assets (13.4 ) (4.0 ) — — — 2.9 (14.5 ) Interest expense — 5.8 — — (5.8 ) — — Other (income) expense (4.6 ) (15.0 ) (10.5 ) (11.4 ) — 7.7 (33.8 ) Income (loss) before income taxes $ 1,379.5 $ 19.1 $ 84.0 $ (6.4 ) $ 0.8 $ (24.7 ) $ 1,452.3 Summary Cash Flow Information: Depreciation and amortization $ 39.8 $ 0.2 $ 1.0 $ 5.2 $ — $ 0.4 $ 46.6 Cash provided by (used in) operating activities $ 565.2 $ (219.2 ) $ (27.0 ) $ (4.4 ) $ — $ (8.1 ) $ 306.5 ______________ (1) Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Homebuilding Inventories by Reporting Segment (1) June 30, September 30, (In millions) East $ 1,300.8 $ 1,192.0 Midwest 818.5 583.1 Southeast 2,733.1 2,668.7 South Central 2,660.5 2,439.4 Southwest 606.2 499.7 West 2,325.7 2,268.5 Corporate and unallocated (2) 233.6 223.7 $ 10,678.4 $ 9,875.1 _________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Revenues East $ 675.2 $ 529.1 $ 1,640.9 $ 1,357.9 Midwest 303.3 256.7 800.5 621.7 Southeast 1,388.1 1,263.3 3,607.2 3,293.9 South Central 1,178.0 1,005.4 3,040.8 2,733.2 Southwest 240.6 220.1 557.5 548.6 West 976.9 1,050.0 2,528.1 2,676.0 $ 4,762.1 $ 4,324.6 $ 12,175.0 $ 11,231.3 Inventory and Land Option Charges East $ 0.6 $ 0.3 $ 2.3 $ 0.9 Midwest 1.3 4.3 1.8 4.7 Southeast 5.1 1.1 8.6 27.3 South Central 3.0 1.5 4.9 3.5 Southwest 0.3 — 0.5 0.8 West 8.9 1.7 22.9 5.6 $ 19.2 $ 8.9 $ 41.0 $ 42.8 Income before Income Taxes (1) East $ 74.1 $ 67.1 $ 158.0 $ 158.7 Midwest 18.7 23.0 38.8 55.0 Southeast 168.4 156.1 411.6 374.9 South Central 164.3 143.3 389.6 365.2 Southwest 33.5 32.3 69.8 69.1 West 102.8 167.9 248.8 356.6 $ 561.8 $ 589.7 $ 1,316.6 $ 1,379.5 _________________ (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 homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances. |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORIES At June 30, 2019 , the Company reviewed the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performed detailed impairment evaluations and analyses when necessary. The Company performed detailed impairment evaluations of communities and land inventories with a combined carrying value of $63.1 million and recorded impairment charges of $6.8 million during the three months ended June 30, 2019 to reduce the carrying value of impaired communities to fair value. During the nine months ended June 30, 2019 , impairment charges totaled $18.6 million . There were $3.9 million and $8.3 million of impairment charges recorded in the three and nine months ended June 30, 2018 , respectively. Inventory impairments and the land option charges discussed below are included in cost of sales in the consolidated statements of operations. During the three and nine months ended June 30, 2019 , the Company wrote off $12.4 million and $22.4 million , respectively, of earnest money deposits and pre-acquisition costs related to land purchase contracts that the Company has terminated or expects to terminate. Earnest money and pre-acquisition cost write-offs for the three and nine months ended June 30, 2018 were $5.0 million and $10.0 million , respectively. Inventory and land option charges for the nine months ended June 30, 2018 also included a charge of $24.5 million related to the settlement of an outstanding dispute associated with a land transaction. In February 2018 , the Forestar land development segment sold a portion of its assets for $232 million . This strategic asset sale included projects owned both directly and indirectly through ventures. The total net proceeds after certain purchase price adjustments, closing costs and other costs associated with selling these projects was $217.5 million , and a gain on the sale of these assets of $0.7 million is included in the Company’s consolidated statement of operations for the nine months ended June 30, 2018 . |
Notes Payable
Notes Payable | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE The Company’s notes payable at their carrying amounts consist of the following: June 30, 2019 September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility, maturing 2023 $ 150.0 $ — 3.75% senior notes due 2019 (1) — 499.6 4.0% senior notes due 2020 (1) 499.4 498.8 2.55% senior notes due 2020 (1) 398.6 397.9 4.375% senior notes due 2022 (1) 348.7 348.4 4.75% senior notes due 2023 (1) 298.9 298.7 5.75% senior notes due 2023 (1) 398.2 398.0 Other secured notes 97.5 4.5 2,191.3 2,445.9 Forestar: Unsecured: Revolving credit facility, maturing 2021 — — 3.75% convertible senior notes due 2020 (2) 119.3 119.9 8.0% senior notes due 2024 (3) 343.5 — 462.8 119.9 Financial Services: Mortgage repurchase facility, maturing 2020 796.5 637.7 $ 3,450.6 $ 3,203.5 _______________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $6.1 million and $8.5 million at June 30, 2019 and September 30, 2018 , respectively. (2) Forestar’s 3.75% convertible senior notes due 2020 include an unamortized fair value adjustment of $3.9 million and $8.2 million at June 30, 2019 and September 30, 2018 , respectively. (3) Debt issuance costs that were deducted from the carrying amount of Forestar’s 8.0% senior notes totaled $6.5 million at June 30, 2019 . Homebuilding: The Company has a $1.325 billion senior unsecured homebuilding revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $1.9 billion , subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to approximately 50% of the revolving credit commitment. Letters of credit issued under the facility reduce the available borrowing capacity. 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 25, 2023 . Borrowings and repayments under the facility were $2.1 billion and $1.95 billion , respectively, during the nine months ended June 30, 2019 . At June 30, 2019 , there were $150 million of borrowings outstanding at a 3.6% annual interest rate and $138.9 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 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. The credit agreement governing the facility and the indenture governing the senior notes also impose restrictions on the creation of secured debt and liens. At June 30, 2019 , the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and public debt obligations. D.R. Horton has an automatically effective universal shelf registration statement filed with the SEC in August 2018 , registering debt and equity securities that the Company may issue from time to time in amounts to be determined. On March 1, 2019 , the Company repaid $500 million principal amount of its 3.75% senior notes at maturity. Effective August 1, 2018 , the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities effective through September 30, 2019 , all of which was remaining at June 30, 2019 . In July 2019 , the Board of Directors renewed the $500 million debt repurchase authorization with no expiration date. Forestar: Forestar has a $380 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $570 million , subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the revolving credit commitment. Borrowings under the revolving credit facility are subject to a borrowing base based on Forestar’s book value of its real estate assets and unrestricted cash. The maturity date of the facility is August 16, 2021 . The maturity date of the revolving credit facility may be extended by up to one year on up to three occasions, subject to the approval of lenders holding a majority of the commitments. Borrowings and repayments under the facility were $85 million each during the nine months ended June 30, 2019 . At June 30, 2019 , there were no borrowings outstanding and $21.7 million of letters of credit issued under the revolving credit facility. The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require Forestar to maintain a minimum level of tangible net worth, a minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At June 30, 2019 , Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. In April 2019 , Forestar issued $350 million principal amount of 8.0% senior notes pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The notes are due April 15, 2024 , with interest payable semi-annually, and represent unsecured obligations of Forestar. The annual effective interest rate of these notes after giving effect to the amortization of financing costs is 8.5% . These notes may be redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreement. Forestar’s revolving credit facility, its senior notes and its convertible senior notes are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. Financial Services: The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties upon receipt of funds from the counterparties. 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 60 days in accordance with the terms of the mortgage repurchase facility. In June 2019 , the mortgage repurchase facility was amended to increase its total capacity to $900 million ; however, the capacity increases, without requiring additional commitments, to $1.1 billion for approximately 30 days at the end of the third quarter and 45 days at fiscal year end. The capacity of the facility can also be increased to $1.2 billion subject to the availability of additional commitments. The maturity date of the facility is February 21, 2020 . As of June 30, 2019 , $906.2 million of mortgage loans held for sale with a collateral value of $874.7 million were pledged under the mortgage repurchase facility. DHI Mortgage had an obligation of $796.5 million outstanding under the mortgage repurchase facility at June 30, 2019 at a 4.1% 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 to the lenders monthly. At June 30, 2019 , DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. |
Capitalized Interest
Capitalized Interest | 9 Months Ended |
Jun. 30, 2019 | |
Interest Costs Incurred [Abstract] | |
CAPITALIZED INTEREST | 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 periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During the first nine months of fiscal 2019 and fiscal 2018 , the Company’s active inventory exceeded its debt level, and all interest incurred was capitalized to inventory. The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and nine months ended June 30, 2019 and 2018 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Capitalized interest, beginning of period $ 173.9 $ 170.1 $ 162.7 $ 167.9 Interest incurred (1) 38.1 31.0 104.8 93.8 Interest charged to cost of sales (34.3 ) (35.4 ) (89.8 ) (96.0 ) Capitalized interest, end of period $ 177.7 $ 165.7 $ 177.7 $ 165.7 _______________ (1) Interest incurred included interest on the Company's mortgage repurchase facility of $4.5 million and $10.8 million in the three and nine months ended June 30, 2019 , respectively, and $3.4 million and $7.9 million in the same periods of fiscal 2018 . Also included in interest incurred is Forestar interest of $7.9 million and $10.7 million in the three and nine months ended June 30, 2019 , respectively, and $0.9 million and $2.3 million in the same periods of fiscal 2018 . |
Mortgage Loans
Mortgage Loans | 9 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOANS | MORTGAGE LOANS Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. At June 30, 2019 , mortgage loans held for sale had an aggregate carrying value of $954.9 million and an aggregate outstanding principal balance of $924.8 million . At September 30, 2018 , mortgage loans held for sale had an aggregate carrying value of $796.4 million and an aggregate outstanding principal balance of $776.1 million . During the nine months ended June 30, 2019 and 2018 , mortgage loans originated totaled $6.0 billion and $5.5 billion , respectively, and mortgage loans sold totaled $5.8 billion and $5.4 billion , respectively. The Company had gains on sales of loans and servicing rights of $85.4 million and $218.3 million during the three and nine months ended June 30, 2019 , respectively, compared to $68.0 million and $193.7 million in the prior year periods. Net gains on sales of loans and servicing rights are included in revenues in the consolidated statements of operations. Approximately 93% of the mortgage loans sold by DHI Mortgage during the nine months ended June 30, 2019 were sold to four major financial entities, the largest of which purchased 32% of the total loans sold. From time to time, the Company enters into forward sales of mortgage-backed securities (MBS) as part of a program to offer below market interest rate financing to its homebuyers in certain markets. At June 30, 2019 , the Company had MBS totaling $227.1 million that did not yet have interest rate lock commitments or closed loans created or assigned and recorded a liability of $1.9 million |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense for the three and nine months ended June 30, 2019 was $153.1 million and $350.5 million , respectively, compared to $162.5 million and $458.9 million in the prior year periods. The effective tax rate was 24.4% and 23.9% for the three and nine months ended June 30, 2019 , respectively, compared to 26.4% and 31.6% in the prior year periods. The higher effective tax rate for the nine months ended June 30, 2018 was primarily due to the remeasurement of the Company’s deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act (Tax Act), which was enacted into law on December 22, 2017 . The effective tax rates for all periods include an expense for state income taxes, reduced by tax benefits related to stock-based compensation. The Tax Act reduced the federal corporate tax rate from 35% to 21% for all corporations effective January 1, 2018. For fiscal year companies, the change in law required the application of a blended tax rate in the year of change, which for the Company was 24.5% for the fiscal year ended September 30, 2018. For the fiscal year ending September 30, 2019 and thereafter, the applicable statutory federal tax rate is 21% . The Tax Act also repealed the domestic production activities deduction effective for the Company for fiscal 2019. The Company’s deferred tax assets, net of deferred tax liabilities, were $190.5 million at June 30, 2019 compared to $211.7 million at September 30, 2018 . The Company has a valuation allowance related to state deferred tax assets for net operating loss (NOL) carryforwards of $16.6 million at June 30, 2019 and $17.7 million at September 30, 2018 . The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance with respect to the remaining state NOL carryforwards. Any reversal of the valuation allowance in future periods will impact the Company’s effective tax rate. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2019 | |
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. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 474.8 $ 453.8 $ 1,113.2 $ 994.1 Denominator: Denominator for basic earnings per share — weighted average common shares 372.3 377.4 373.5 376.6 Effect of dilutive securities: Employee stock awards 4.6 6.0 4.7 7.0 Denominator for diluted earnings per share — adjusted weighted average common shares 376.9 383.4 378.2 383.6 Basic net income per common share attributable to D.R. Horton, Inc. $ 1.28 $ 1.20 $ 2.98 $ 2.64 Diluted net income per common share attributable to D.R. Horton, Inc. $ 1.26 $ 1.18 $ 2.94 $ 2.59 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY D.R. Horton has an automatically effective universal shelf registration statement, filed with the SEC in August 2018 , registering debt and equity securities that it may issue from time to time in amounts to be determined. Forestar also has an effective shelf registration statement filed with the SEC in September 2018 , registering $500 million of equity securities. Effective August 1, 2018 , the Board of Directors authorized the repurchase of up to $400 million of the Company’s common stock effective through September 30, 2019 . The Company had a remaining authorization of $375.5 million at September 30, 2018 . During the nine months ended June 30, 2019 , the Company used its remaining authorization to repurchase 9.8 million shares of its common stock. In July 2019 , the Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s common stock effective July 30, 2019 . The new authorization has no expiration date. During each of the first three quarters of fiscal 2019 , the Board of Directors approved and paid quarterly cash dividends of $0.15 per common share, the most recent of which was paid on May 28, 2019 to stockholders of record on May 13, 2019 . In July 2019 , the Board of Directors approved a quarterly cash dividend of $0.15 per common share, payable on August 26, 2019 to stockholders of record on August 12, 2019 . Cash dividends of $0.125 per common share were approved and paid in each quarter of fiscal 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Jun. 30, 2019 | |
Compensation Related Costs [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Restricted Stock Units (RSUs) The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit awards may be based on performance (performance-based) or on service over a requisite time period (time-based). Performance-based and time-based RSU equity awards represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions and/or performance criteria are satisfied. The RSUs have no dividend or voting rights until vested. In November 2018 , a total of 360,000 performance-based RSU equity awards were granted to the Company’s Chairman and executive officers. These awards vest at the end of a three-year performance period ending September 30, 2021 . The number of units that ultimately vest depends on the Company’s relative position as compared to its peers in achieving certain performance criteria and can range from 10% to 200% of the number of units granted. The performance criteria are total shareholder return; return on investment; selling, general and administrative expense containment; and gross profit. The grant date fair value of these equity awards was $37.75 per unit. Compensation expense related to these grants was $1.5 million and $4.6 million in the three and nine months ended June 30, 2019 , respectively, based on the Company’s performance against its peer group, the elapsed portion of the performance period and the grant date fair value of the award. During the nine months ended June 30, 2019 , a total of 1.8 million time-based RSUs were granted to approximately 900 recipients, including the Company’s executive officers, other key employees and non-management directors. The weighted average grant date fair value of these equity awards was $33.75 per unit, and they vest annually in equal installments over periods of three to five years . Compensation expense related to these grants was $3.0 million and $10.4 million in the three and nine months ended June 30, 2019 , respectively, of which $3.5 million in the nine month period related to expense recognized for employees that were retirement eligible on the date of grant. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Warranty Claims The Company 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 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 and nine months ended June 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Warranty liability, beginning of period $ 213.9 $ 162.6 $ 202.0 $ 143.7 Warranties issued 25.8 23.6 64.7 59.3 Changes in liability for pre-existing warranties 9.4 8.1 20.9 25.9 Settlements made (20.1 ) (17.9 ) (58.6 ) (52.5 ) Warranty liability, end of period $ 229.0 $ 176.4 $ 229.0 $ 176.4 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, contract disputes and other matters. 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 $440.9 million and $408.1 million at June 30, 2019 and September 30, 2018 , respectively, and are included in accrued expenses and other liabilities in the consolidated balance sheets. Approximately 99% of these reserves related to construction defect matters at both June 30, 2019 and September 30, 2018 . Expenses related to the Company’s legal contingencies were $19.9 million and $47.5 million in the nine months ended June 30, 2019 and 2018 , respectively. The Company’s reserves for legal claims increased from $408.1 million at September 30, 2018 to $440.9 million at June 30, 2019 due to an increase in known claims and the number of closed homes that are subject to possible future construction defect claims, partially offset by payments made for legal claims during the period, net of reimbursements received from subcontractors. Changes in the Company’s legal claims reserves during the nine months ended June 30, 2019 and 2018 were as follows: Nine Months Ended 2019 2018 (In millions) Reserves for legal claims, beginning of period $ 408.1 $ 420.6 Increase in reserves 45.5 47.2 Payments (12.7 ) (60.0 ) Reserves for legal claims, end of period $ 440.9 $ 407.8 The Company estimates and records receivables under its 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 for pending legal claims and anticipated future claims related to previously closed homes totaled $69.8 million , $54.6 million and $56.0 million at June 30, 2019 , September 30, 2018 and June 30, 2018 , respectively, and are included in other assets in the consolidated balance sheets. 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 Purchase Contracts The Company enters into land and lot 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 purchase contracts, the deposits are not refundable in the event the Company elects to terminate the contract. Land and lot purchase contract deposits are included in other assets in the consolidated balance sheets. At June 30, 2019 , the Company’s homebuilding segment had total deposits of $493.1 million , consisting of cash deposits of $480.4 million and promissory notes of $12.7 million , related to contracts to purchase land and lots with a total remaining purchase price of approximately $7.2 billion . The majority of land and lots under contract are currently expected to be purchased within three years. Of these amounts, $84.0 million of the deposits related to contracts with Forestar to purchase land and lots with a remaining purchase price of $1.0 billion . A limited number of the homebuilding land and lot purchase contracts at June 30, 2019 , representing $95.6 million of remaining purchase price, were subject to specific performance provisions that may require the Company to purchase the land or lots upon the land sellers meeting their respective contractual obligations. Of the $95.6 million remaining purchase price subject to specific performance provisions, $52.8 million related to contracts between the homebuilding segment and Forestar. During the three and nine months ended June 30, 2019 , Forestar reimbursed the Company’s homebuilding segment $10.8 million and $27.6 million , respectively, for previously paid earnest money and $4.7 million and $8.4 million , respectively, for pre-acquisition and other due diligence costs related to land purchase contracts whereby the homebuilding segment assigned its rights under contract to Forestar. During the three and nine months ended June 30, 2018 , Forestar reimbursed the Company’s homebuilding segment $2.9 million and $16.9 million , respectively, for previously paid earnest money and $4.6 million and $12.8 million , respectively, for pre-acquisition and other due diligence costs. Other Commitments At June 30, 2019 , the Company had outstanding surety bonds of $1.6 billion and letters of credit of $162.3 million to secure performance under various contracts. Of the total letters of credit, $138.9 million were issued under the homebuilding revolving credit facility and $21.7 million were issued under Forestar’s revolving credit facility. The remaining $1.7 million of letters of credit were issued under secured letter of credit agreements, of which $1.5 million related to homebuilding operations and $0.2 million related to Forestar. These agreements require the deposit of cash as collateral with the issuing banks, which is included in restricted cash in the consolidated balance sheets. |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities | 9 Months Ended |
Jun. 30, 2019 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES | OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES The Company’s other assets at June 30, 2019 and September 30, 2018 were as follows: June 30, September 30, 2018 (In millions) Earnest money and refundable deposits $ 522.7 $ 445.2 Insurance receivables 69.8 54.6 Other receivables 107.5 81.7 Prepaid assets 33.9 36.9 Rental properties 35.1 39.2 Contract assets - insurance agency commissions 36.3 — Other 84.6 55.3 $ 889.9 $ 712.9 The Company’s accrued expenses and other liabilities at June 30, 2019 and September 30, 2018 were as follows: June 30, September 30, 2018 (In millions) Reserves for legal claims $ 440.9 $ 408.1 Employee compensation and related liabilities 254.9 252.5 Warranty liability 229.0 202.0 Accrued interest 36.2 14.8 Federal and state income tax liabilities 52.2 35.2 Inventory related accruals 49.5 45.5 Customer deposits 67.4 58.1 Accrued property taxes 27.3 38.0 Other 120.1 73.3 $ 1,277.5 $ 1,127.5 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and September 30, 2018 . Changes in the fair value of the Level 3 assets during the nine months ended June 30, 2019 and 2018 were not material. Fair Value at June 30, 2019 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Debt securities collateralized by residential real estate Other assets $ — $ — $ 3.9 $ 3.9 Mortgage loans held for sale (a) Mortgage loans held for sale — 941.1 9.2 950.3 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 21.5 — 21.5 Forward sales of mortgage-backed securities Other liabilities — (14.9 ) — (14.9 ) Best-efforts and mandatory commitments Other liabilities — (0.6 ) — (0.6 ) Fair Value at September 30, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Debt securities collateralized by residential real estate Other assets $ — $ — $ 3.9 $ 3.9 Mortgage loans held for sale (a) Mortgage loans held for sale — 784.6 7.8 792.4 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 10.5 — 10.5 Forward sales of mortgage-backed securities Other assets — 3.3 — 3.3 Best-efforts and mandatory commitments Other assets — 0.2 — 0.2 ___________________ (a) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at June 30, 2019 and September 30, 2018 include $9.2 million and $7.8 million , respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit. (b) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in revenues in the consolidated statements of operations. The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at June 30, 2019 and September 30, 2018 : Fair Value at Fair Value at Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Inventory held and used (a) (b) Inventories $ — $ 14.6 $ — $ 4.4 Inventory available for sale (a) (c) Inventories — — — 1.4 Mortgage loans held for sale (a) (d) Mortgage loans held for sale — 1.0 — 2.9 Other mortgage loans (a) (e) Other assets — 1.0 — 1.0 ___________________ (a) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment in the respective period and were held at the end of the period. (b) In performing its impairment analysis of communities, discount rates ranging from 14% to 16% 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, comparable sales or actual contracts. (d) These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3). (e) The fair value of other mortgage loans was determined based on the value of the underlying collateral. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2019 and September 30, 2018 : Carrying Value Fair Value at June 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 864.2 $ 864.2 $ — $ — $ 864.2 Restricted cash (a) 21.1 21.1 — — 21.1 Notes payable (b) (c) 3,450.6 — 2,512.5 1,044.0 3,556.5 Carrying Value Fair Value at September 30, 2018 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,473.1 $ 1,473.1 $ — $ — $ 1,473.1 Restricted cash (a) 32.9 32.9 — — 32.9 Notes payable (b) (c) 3,203.5 — 2,602.6 642.2 3,244.8 ___________________ (a) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (c) The fair values of other secured notes and borrowings on the revolving credit facilities and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS In March 2019 , the Company assigned its rights under a land purchase contract it entered into in December 2017 to R&R Riverview LLC (R&R), an entity owned by Ryan Horton and Reagan Horton, the adult sons of Donald Horton, the Company’s Chairman. In March 2019 , R&R exercised its rights under the purchase contract and purchased 119 acres of undeveloped land in Arizona for $77.5 million . In connection with the transaction, Donald Horton loaned R&R $77.5 million at a 2.55% annual interest rate and obtained a security interest in the land. Concurrent with the contract assignment to R&R, the Company entered into a land purchase contract with R&R to purchase the 119 acres for R&R’s cost plus an annualized return of 16% . Based on the terms of the contract, the Company will purchase the land in two phases . The first purchase is currently expected in October 2019 . The Company has determined R&R is a variable interest entity, the Company has the power to control the activities that most significantly impact the entity’s economic performance, and the Company is the primary beneficiary. Accordingly, the Company consolidated the variable interest entity in its consolidated financial statements by increasing inventory and notes payable by $77.5 million . In accordance with the Company’s policy on related party transactions, this transaction was reviewed and approved by the independent members of the Board of Directors. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Jun. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION All of the Company’s homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by D.R. Horton, Inc. and other subsidiaries (Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by the Company. The Company’s subsidiaries associated with the Forestar land development operation, the financial services operations and certain other subsidiaries do not guarantee the Company’s homebuilding senior notes or the homebuilding 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) its ceasing to guarantee any of the Company’s publicly traded debt securities and ceasing to guarantee any of the Company’s obligations under the homebuilding revolving credit facility. NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 412.7 $ 115.3 $ 336.2 $ — $ 864.2 Restricted cash 7.7 2.1 11.3 — 21.1 Investment in subsidiaries 7,055.5 — — (7,055.5 ) — Inventories 4,315.7 6,271.7 1,143.3 (28.4 ) 11,702.3 Mortgage loans held for sale — — 954.9 — 954.9 Deferred income taxes, net 61.4 90.5 18.4 3.6 173.9 Property and equipment, net 124.8 76.2 257.6 (4.4 ) 454.2 Other assets 382.2 440.7 150.7 (83.7 ) 889.9 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables 58.7 211.7 — (270.4 ) — Total Assets $ 12,418.7 $ 7,342.5 $ 2,901.6 $ (7,438.8 ) $ 15,224.0 LIABILITIES & EQUITY Accounts payable and other liabilities $ 646.2 $ 1,074.1 $ 330.8 $ (92.4 ) $ 1,958.7 Intercompany payables — — 270.4 (270.4 ) — Notes payable 2,107.2 6.7 1,336.7 — 3,450.6 Total Liabilities 2,753.4 1,080.8 1,937.9 (362.8 ) 5,409.3 Stockholders’ equity 9,665.3 6,261.7 793.9 (7,078.5 ) 9,642.4 Noncontrolling interests — — 169.8 2.5 172.3 Total Equity 9,665.3 6,261.7 963.7 (7,076.0 ) 9,814.7 Total Liabilities & Equity $ 12,418.7 $ 7,342.5 $ 2,901.6 $ (7,438.8 ) $ 15,224.0 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet September 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 908.1 $ 158.7 $ 406.3 $ — $ 1,473.1 Restricted cash 6.6 2.0 24.3 — 32.9 Investment in subsidiaries 6,344.9 — — (6,344.9 ) — Inventories 4,037.1 5,824.1 545.0 (11.2 ) 10,395.0 Mortgage loans held for sale — — 796.4 — 796.4 Deferred income taxes, net 69.2 105.0 17.3 2.5 194.0 Property and equipment, net 111.2 66.1 230.7 (6.9 ) 401.1 Other assets 306.6 361.3 90.2 (45.2 ) 712.9 Goodwill — 80.0 29.2 — 109.2 Intercompany receivables 246.2 27.3 — (273.5 ) — Total Assets $ 12,029.9 $ 6,624.5 $ 2,139.4 $ (6,679.2 ) $ 14,114.6 LIABILITIES & EQUITY Accounts payable and other liabilities $ 590.8 $ 1,000.4 $ 210.1 $ (49.1 ) $ 1,752.2 Intercompany payables — — 273.5 (273.5 ) — Notes payable 2,443.9 2.1 757.5 — 3,203.5 Total Liabilities 3,034.7 1,002.5 1,241.1 (322.6 ) 4,955.7 Stockholders’ equity 8,995.2 5,622.0 722.8 (6,355.6 ) 8,984.4 Noncontrolling interests — — 175.5 (1.0 ) 174.5 Total Equity 8,995.2 5,622.0 898.3 (6,356.6 ) 9,158.9 Total Liabilities & Equity $ 12,029.9 $ 6,624.5 $ 2,139.4 $ (6,679.2 ) $ 14,114.6 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,939.3 $ 2,820.9 $ 219.2 $ (73.1 ) $ 4,906.3 Cost of sales 1,529.6 2,286.9 82.4 (67.3 ) 3,831.6 Selling, general and administrative expense 191.8 193.4 94.8 — 480.0 Gain on sale of assets — (0.2 ) (22.4 ) — (22.6 ) Other (income) expense (0.9 ) (0.5 ) (8.0 ) — (9.4 ) Income before income taxes 218.8 341.3 72.4 (5.8 ) 626.7 Income tax expense 53.7 84.1 16.8 (1.5 ) 153.1 Equity in net income of subsidiaries, net of tax 314.6 — — (314.6 ) — Net income 479.7 257.2 55.6 (318.9 ) 473.6 Net loss attributable to noncontrolling interests — — (1.9 ) 0.7 (1.2 ) Net income attributable to D.R. Horton, Inc. $ 479.7 $ 257.2 $ 57.5 $ (319.6 ) $ 474.8 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Nine Months Ended June 30, 2019 D.R. Guarantor Non-Guarantor Eliminations Total (In millions) Revenues $ 4,850.2 $ 7,322.3 $ 523.3 $ (141.8 ) $ 12,554.0 Cost of sales 3,836.6 5,957.8 172.8 (127.8 ) 9,839.4 Selling, general and administrative expense 543.3 523.9 259.8 — 1,327.0 Gain on sale of assets (2.0 ) (0.2 ) (49.2 ) (2.5 ) (53.9 ) Other (income) expense (2.9 ) (1.3 ) (19.5 ) — (23.7 ) Income before income taxes 475.2 842.1 159.4 (11.5 ) 1,465.2 Income tax expense 114.2 202.3 36.8 (2.8 ) 350.5 Equity in net income of subsidiaries, net of tax 764.2 — — (764.2 ) — Net income 1,125.2 639.8 122.6 (772.9 ) 1,114.7 Net loss attributable to noncontrolling interests — — (1.9 ) 3.4 1.5 Net income attributable to D.R. Horton, Inc. $ 1,125.2 $ 639.8 $ 124.5 $ (776.3 ) $ 1,113.2 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended June 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,630.8 $ 2,693.9 $ 119.5 $ (8.9 ) $ 4,435.3 Cost of sales 1,293.3 2,092.5 17.0 (5.6 ) 3,397.2 Selling, general and administrative expense 174.4 174.1 86.4 — 434.9 Other (income) expense (1.5 ) 0.5 (12.0 ) — (13.0 ) Income before income taxes 164.6 426.8 28.1 (3.3 ) 616.2 Income tax expense 43.8 113.6 5.1 — 162.5 Equity in net income of subsidiaries, net of tax 336.2 — — (336.2 ) — Net income 457.0 313.2 23.0 (339.5 ) 453.7 Net loss attributable to noncontrolling interests — — (3.5 ) 3.4 (0.1 ) Net income attributable to D.R. Horton, Inc. $ 457.0 $ 313.2 $ 26.5 $ (342.9 ) $ 453.8 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Nine Months Ended June 30, 2018 D.R. Guarantor Non-Guarantor Eliminations Total (In millions) Revenues $ 4,082.7 $ 7,149.0 $ 353.6 $ (22.4 ) $ 11,562.9 Cost of sales 3,235.0 5,659.4 61.1 (16.5 ) 8,939.0 Selling, general and administrative expense 483.4 490.6 245.9 — 1,219.9 Gain on sale of assets — — (14.5 ) — (14.5 ) Other (income) expense (3.5 ) (0.2 ) (30.1 ) — (33.8 ) Income before income taxes 367.8 999.2 91.2 (5.9 ) 1,452.3 Income tax expense 117.0 318.7 24.2 (1.0 ) 458.9 Equity in net income of subsidiaries, net of tax 747.5 — — (747.5 ) — Net income $ 998.3 $ 680.5 $ 67.0 $ (752.4 ) $ 993.4 Net loss attributable to noncontrolling interests — — (4.1 ) 3.4 (0.7 ) Net income attributable to D.R. Horton, Inc. $ 998.3 $ 680.5 $ 71.1 $ (755.8 ) $ 994.1 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Nine Months Ended June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 210.9 $ 467.4 $ (518.9 ) $ (78.7 ) $ 80.7 INVESTING ACTIVITIES Expenditures for property and equipment (37.9 ) (22.6 ) (44.8 ) — (105.3 ) Proceeds from sale of assets 10.4 — 133.4 — 143.8 Expenditures related to multi-family rental properties — — (56.3 ) — (56.3 ) Return of investment in unconsolidated entities — — 4.4 — 4.4 Net principal increase of other mortgage loans and real estate owned — — (2.0 ) — (2.0 ) Intercompany advances 497.0 — — (497.0 ) — Payments related to business acquisitions (302.6 ) — (8.3 ) — (310.9 ) Net cash provided by (used in) investing activities 166.9 (22.6 ) 26.4 (497.0 ) (326.3 ) FINANCING ACTIVITIES Proceeds from notes payable 2,100.0 — 428.2 — 2,528.2 Repayment of notes payable (2,450.0 ) (1.1 ) (85.0 ) — (2,536.1 ) Advances on mortgage repurchase facility, net — — 158.8 — 158.8 Intercompany advances — (487.0 ) (10.0 ) 497.0 — Proceeds from stock associated with certain employee benefit plans 26.8 — — — 26.8 Cash paid for shares withheld for taxes (19.5 ) — — — (19.5 ) Cash dividends paid (167.9 ) — (78.7 ) 78.7 (167.9 ) Repurchases of common stock (361.5 ) — — — (361.5 ) Distributions to noncontrolling interests, net — — (3.9 ) — (3.9 ) Net cash (used in) provided by financing activities (872.1 ) (488.1 ) 409.4 575.7 (375.1 ) Decrease in cash, cash equivalents and restricted cash (494.3 ) (43.3 ) (83.1 ) — (620.7 ) Cash, cash equivalents and restricted cash at beginning of period 914.7 160.7 430.6 — 1,506.0 Cash, cash equivalents and restricted cash at end of period $ 420.4 $ 117.4 $ 347.5 $ — $ 885.3 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Nine Months Ended June 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (17.9 ) $ 640.4 $ (254.0 ) $ (62.0 ) $ 306.5 INVESTING ACTIVITIES Expenditures for property and equipment (29.1 ) (21.5 ) (3.4 ) — (54.0 ) Proceeds from sale of assets — — 261.1 — 261.1 Expenditures related to multi-family rental properties — — (61.1 ) 5.0 (56.1 ) Return of investment in unconsolidated entities — — 15.4 — 15.4 Net principal increase of other mortgage loans and real estate owned — — (0.8 ) — (0.8 ) Intercompany advances 615.7 — — (615.7 ) — Payments related to business acquisitions, net of cash acquired (560.0 ) — 401.9 — (158.1 ) Net cash provided by (used in) investing activities 26.6 (21.5 ) 613.1 (610.7 ) 7.5 FINANCING ACTIVITIES Proceeds from notes payable 2,162.2 — 2.1 — 2,164.3 Repayment of notes payable (2,165.2 ) (3.7 ) (10.6 ) — (2,179.5 ) Advances on mortgage repurchase facility, net — — 106.3 — 106.3 Intercompany advances — (660.6 ) 44.9 615.7 — Proceeds from stock associated with certain employee benefit plans 36.2 — — — 36.2 Cash paid for shares withheld for taxes (10.3 ) — — — (10.3 ) Cash dividends paid (141.3 ) — (57.0 ) 57.0 (141.3 ) Repurchases of common stock (74.9 ) — — — (74.9 ) Distributions to noncontrolling interests, net — — (2.2 ) — (2.2 ) Net cash (used in) provided by financing activities (193.3 ) (664.3 ) 83.5 672.7 (101.4 ) (Decrease) increase in cash, cash equivalents and restricted cash (184.6 ) (45.4 ) 442.6 — 212.6 Cash, cash equivalents and restricted cash at beginning of period 788.7 156.0 79.6 — 1,024.3 Cash, cash equivalents and restricted cash at end of period $ 604.1 $ 110.6 $ 522.2 $ — $ 1,236.9 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. The Company owns a 75% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 25% interest the Company does not own is accounted for as noncontrolling interests. All 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, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2018 , which was derived from audited 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, 2018 . |
Reclassifications | Changes in Presentation and Reclassifications In connection with the adoption of Accounting Standards Update (ASU) 2016-18 in fiscal 2019, restricted cash is now included with cash and cash equivalents when reconciling beginning and ending amounts in the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current year presentation, resulting in a decrease in cash used in investing activities of $42.2 million for the nine months ended June 30, 2018 . In August 2018, the Securities and Exchange Commission (SEC) issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. In complying with the relevant aspects of the rule within the current year quarterly reports, the Company has removed the presentation of cash dividends declared per common share from the statements of operations and has added the consolidated statements of total equity. Certain other prior period amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Adoption of New Accounting Standard On October 1, 2018, the Company adopted Accounting Standards Codification 606, "Revenue from Contracts with Customers" (ASC 606), which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services and satisfaction of performance obligations to a customer in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Results for the reporting period beginning after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. The Company recorded an increase to retained earnings of $27.1 million , net of tax, as of October 1, 2018, due to the cumulative effect of adopting ASC 606, which was primarily related to the recognition of contract assets totaling $32.4 million for insurance brokerage commission renewals. Under ASC 606, the Company recognizes revenue and a contract asset for estimated future renewals of these policies upon issuance of the initial policy, the date at which the performance obligation is satisfied. There was not a material impact to revenues as a result of applying ASC 606 for the three and nine months ended June 30, 2019 , and there have not been significant changes to the Company’s business processes, systems, or internal controls as a result of implementing the standard. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue [Policy Text Block] | Revenue Recognition Homebuilding revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Proceeds from home closings held for the Company’s benefit at title companies are included in homebuilding cash and cash equivalents in the consolidated balance sheets. The Company rarely purchases land for resale, but periodically may elect to sell parcels of land that no longer fit into its strategic operating plans. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied. Financial services revenues associated with the Company’s title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur simultaneously as each home is closed. The Company transfers substantially all underwriting risk associated with title insurance policies to third-party insurers. The Company typically elects the fair value option for its mortgage loan originations. Mortgage loans held for sale are initially recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loans are sold. Net origination costs and fees associated with mortgage loans are recognized at the time of origination. The expected net future cash flows related to the associated servicing of a loan are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the loan is sold. The Company collects insurance commissions on homeowner policies placed with third party carriers through its wholly owned insurance agency. The Company recognizes revenue and a contract asset for estimated future renewals of these policies upon issuance of the initial policy, the date at which the performance obligation is satisfied. |
Business Combinations Policy [Policy Text Block] | Business Acquisitions During the first quarter of fiscal 2019, the Company acquired the homebuilding operations of Westport Homes, Classic Builders and Terramor Homes for $325.9 million . The assets acquired included approximately 700 homes in inventory, 4,500 lots and control of approximately 4,300 additional lots through land purchase contracts. The Company also acquired a sales order backlog of approximately 700 homes. Westport Homes operates in Indianapolis and Fort Wayne, Indiana, and Columbus, Ohio; Classic Builders operates in Des Moines, Iowa; and Terramor Homes operates in Raleigh, North Carolina. The Company’s allocation of the aggregate purchase price of these transactions, which was finalized during the current quarter, was based on the estimated fair value of the assets and liabilities acquired as follows (in millions): Inventories $ 265.5 Other assets 23.3 Goodwill 54.3 Intangible assets 8.6 Other liabilities (25.8 ) Net assets acquired $ 325.9 As a result of these transactions, the Company recorded goodwill of $54.3 million , of which $49.7 million was allocated to the Midwest region and $4.6 million was allocated to the East region. The goodwill is tax deductible and relates to expected synergies from expanding the Company’s market presence in its Midwest and East regions, the experienced and knowledgeable workforce of these entities and their capital efficient operating processes. The intangible assets will be amortized on a straight-line basis to selling, general and administrative (SG&A) expense over their expected lives, which range from one to three years . |
Recent Accounting Pronouncements | Pending Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases,” which requires that lease assets and liabilities be recognized on the balance sheet and that key information about leasing arrangements be disclosed. The guidance is effective for the Company beginning October 1, 2019 and is not expected to have a material impact on its consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information in determining credit loss estimates. The guidance is effective for the Company beginning October 1, 2020 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other,” which simplifies the measurement of goodwill impairment by removing the second step of the goodwill impairment test and requires the determination of the fair value of individual assets and liabilities of a reporting unit. Under the new guidance, goodwill impairment is measured as the amount by which a reporting unit’s carrying amount exceeds its fair value with the loss recognized limited to the total amount of goodwill allocated to the reporting unit. The guidance is effective for the Company beginning October 1, 2020 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company’s allocation of the aggregate purchase price of these transactions, which was finalized during the current quarter, was based on the estimated fair value of the assets and liabilities acquired as follows (in millions): Inventories $ 265.5 Other assets 23.3 Goodwill 54.3 Intangible assets 8.6 Other liabilities (25.8 ) Net assets acquired $ 325.9 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of segment reporting information, by segment | 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, 2018 . Financial information relating to the Company’s reporting segments is as follows: June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 577.9 $ 223.0 $ 44.7 $ 18.6 $ — $ — $ 864.2 Restricted cash 9.8 0.2 11.1 — — — 21.1 Inventories: Construction in progress and finished homes 5,723.5 — — — (0.9 ) — 5,722.6 Residential land and lots — developed and under development 4,847.4 988.7 — — (27.6 ) 2.9 5,811.4 Land held for development 64.9 60.8 — — — — 125.7 Land held for sale 42.6 — — — — — 42.6 10,678.4 1,049.5 — — (28.5 ) 2.9 11,702.3 Mortgage loans held for sale — — 954.9 — — — 954.9 Deferred income taxes, net 154.4 21.0 — — 3.7 (5.2 ) 173.9 Property and equipment, net 234.2 2.4 3.2 214.4 — — 454.2 Other assets 824.2 29.1 67.7 40.2 (83.0 ) 11.7 889.9 Goodwill 134.3 — — — — 29.2 163.5 $ 12,613.2 $ 1,325.2 $ 1,081.6 $ 273.2 $ (107.8 ) $ 38.6 $ 15,224.0 Liabilities Accounts payable $ 640.6 $ 19.5 $ 18.4 $ 3.4 $ (0.7 ) $ — $ 681.2 Accrued expenses and other liabilities 1,155.8 151.5 56.9 19.7 (93.7 ) (12.7 ) 1,277.5 Notes payable 2,191.3 458.9 796.5 — — 3.9 3,450.6 $ 3,987.7 $ 629.9 $ 871.8 $ 23.1 $ (94.4 ) $ (8.8 ) $ 5,409.3 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. September 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,111.8 $ 318.8 $ 33.7 $ 8.8 $ — $ — $ 1,473.1 Restricted cash 8.6 16.2 8.1 — — — 32.9 Inventories: Construction in progress and finished homes 5,084.4 — — — 1.9 — 5,086.3 Residential land and lots — developed and under development 4,689.3 463.1 — — (7.2 ) 27.2 5,172.4 Land held for development 61.2 34.9 — — — — 96.1 Land held for sale 40.2 — — — — — 40.2 9,875.1 498.0 — — (5.3 ) 27.2 10,395.0 Mortgage loans held for sale — — 796.4 — — — 796.4 Deferred income taxes, net 176.5 26.9 — — 1.1 (10.5 ) 194.0 Property and equipment, net 207.1 1.8 3.0 189.2 — — 401.1 Other assets 673.7 31.4 43.6 0.9 (48.6 ) 11.9 712.9 Goodwill 80.0 — — — — 29.2 109.2 $ 12,132.8 $ 893.1 $ 884.8 $ 198.9 $ (52.8 ) $ 57.8 $ 14,114.6 Liabilities Accounts payable $ 612.4 $ 11.2 $ 0.2 $ 4.2 $ (3.3 ) $ — $ 624.7 Accrued expenses and other liabilities 1,041.3 95.7 41.9 9.9 (46.1 ) (15.2 ) 1,127.5 Notes payable 2,445.9 111.7 637.7 — — 8.2 3,203.5 $ 4,099.6 $ 218.6 $ 679.8 $ 14.1 $ (49.4 ) $ (7.0 ) $ 4,955.7 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Three Months Ended June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 4,734.6 $ — $ — $ — $ — $ — $ 4,734.6 Land/lot sales and other 27.5 88.2 — 9.6 (73.2 ) — 52.1 Financial services — — 119.6 — — — 119.6 4,762.1 88.2 119.6 9.6 (73.2 ) — 4,906.3 Cost of sales: Home sales (5) 3,773.0 — — — (1.3 ) — 3,771.7 Land/lot sales and other 23.2 75.3 — — (66.0 ) 8.2 40.7 Inventory and land option charges 19.2 — — — — — 19.2 3,815.4 75.3 — — (67.3 ) 8.2 3,831.6 Selling, general and administrative expense 387.4 7.9 76.4 8.2 — 0.1 480.0 Gain on sale of assets — (1.5 ) — (22.6 ) — 1.5 (22.6 ) Other (income) expense (2.5 ) (1.9 ) (4.9 ) (0.1 ) — — (9.4 ) Income before income taxes $ 561.8 $ 8.4 $ 48.1 $ 24.1 $ (5.9 ) $ (9.8 ) $ 626.7 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. (5) Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Nine Months Ended June 30, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 12,125.8 $ — $ — $ — $ — $ — $ 12,125.8 Land/lot sales and other 49.2 192.0 — 22.4 (141.8 ) — 121.8 Financial services — — 306.4 — — — 306.4 12,175.0 192.0 306.4 22.4 (141.8 ) — 12,554.0 Cost of sales: Home sales (5) 9,716.5 — — — (3.1 ) — 9,713.4 Land/lot sales and other 37.6 149.6 — — (122.2 ) 20.0 85.0 Inventory and land option charges 41.0 — — — — — 41.0 9,795.1 149.6 — — (125.3 ) 20.0 9,839.4 Selling, general and administrative expense 1,071.4 19.8 213.4 22.1 — 0.3 1,327.0 Gain on sale of assets (2.0 ) (2.4 ) — (51.9 ) — 2.4 (53.9 ) Other (income) expense (6.1 ) (4.6 ) (12.6 ) (0.4 ) — — (23.7 ) Income before income taxes $ 1,316.6 $ 29.6 $ 105.6 $ 52.6 $ (16.5 ) $ (22.7 ) $ 1,465.2 Summary Cash Flow Information: Depreciation and amortization $ 46.4 $ 0.2 $ 1.1 $ 4.3 $ — $ 0.4 $ 52.4 Cash provided by (used in) operating activities $ 605.7 $ (450.1 ) $ (65.5 ) $ (2.5 ) $ (2.5 ) $ (4.4 ) $ 80.7 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. (5) Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Three Months Ended June 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 4,265.5 $ — $ — $ — $ — $ — $ 4,265.5 Land/lot sales and other 59.1 23.6 — — (8.8 ) (1.2 ) 72.7 Financial services — — 97.1 — — — 97.1 4,324.6 23.6 97.1 — (8.8 ) (1.2 ) 4,435.3 Cost of sales: Home sales 3,332.8 — — — — — 3,332.8 Land/lot sales and other 45.4 10.0 — — (5.6 ) 5.7 55.5 Inventory and land option charges 8.9 — — — — — 8.9 3,387.1 10.0 — — (5.6 ) 5.7 3,397.2 Selling, general and administrative expense 349.1 6.5 71.1 8.1 — 0.1 434.9 Gain on sale of assets — (1.3 ) — — — 1.3 — Interest expense — 1.6 — — (1.6 ) — — Other (income) expense (1.3 ) (3.7 ) (4.3 ) (5.0 ) — 1.3 (13.0 ) Income (loss) before income taxes $ 589.7 $ 10.5 $ 30.3 $ (3.1 ) $ (1.6 ) $ (9.6 ) $ 616.2 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Nine Months Ended June 30, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues: Home sales $ 11,122.1 $ — $ — $ — $ — $ — $ 11,122.1 Land/lot sales and other 109.2 77.0 — — (17.3 ) (1.2 ) 167.7 Financial services — — 273.1 — — — 273.1 11,231.3 77.0 273.1 — (17.3 ) (1.2 ) 11,562.9 Cost of sales: Home sales 8,761.7 — — — — — 8,761.7 Land/lot sales and other 88.7 45.5 — — (12.3 ) 12.6 134.5 Inventory and land option charges 42.8 — — — — — 42.8 8,893.2 45.5 — — (12.3 ) 12.6 8,939.0 Selling, general and administrative expense 976.6 25.6 199.6 17.8 — 0.3 1,219.9 Gain on sale of assets (13.4 ) (4.0 ) — — — 2.9 (14.5 ) Interest expense — 5.8 — — (5.8 ) — — Other (income) expense (4.6 ) (15.0 ) (10.5 ) (11.4 ) — 7.7 (33.8 ) Income (loss) before income taxes $ 1,379.5 $ 19.1 $ 84.0 $ (6.4 ) $ 0.8 $ (24.7 ) $ 1,452.3 Summary Cash Flow Information: Depreciation and amortization $ 39.8 $ 0.2 $ 1.0 $ 5.2 $ — $ 0.4 $ 46.6 Cash provided by (used in) operating activities $ 565.2 $ (219.2 ) $ (27.0 ) $ (4.4 ) $ — $ (8.1 ) $ 306.5 ______________ (1) Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. (2) Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. (3) Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. (4) Amounts represent purchase accounting adjustments related to the Forestar acquisition. Homebuilding Inventories by Reporting Segment (1) June 30, September 30, (In millions) East $ 1,300.8 $ 1,192.0 Midwest 818.5 583.1 Southeast 2,733.1 2,668.7 South Central 2,660.5 2,439.4 Southwest 606.2 499.7 West 2,325.7 2,268.5 Corporate and unallocated (2) 233.6 223.7 $ 10,678.4 $ 9,875.1 _________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Revenues East $ 675.2 $ 529.1 $ 1,640.9 $ 1,357.9 Midwest 303.3 256.7 800.5 621.7 Southeast 1,388.1 1,263.3 3,607.2 3,293.9 South Central 1,178.0 1,005.4 3,040.8 2,733.2 Southwest 240.6 220.1 557.5 548.6 West 976.9 1,050.0 2,528.1 2,676.0 $ 4,762.1 $ 4,324.6 $ 12,175.0 $ 11,231.3 Inventory and Land Option Charges East $ 0.6 $ 0.3 $ 2.3 $ 0.9 Midwest 1.3 4.3 1.8 4.7 Southeast 5.1 1.1 8.6 27.3 South Central 3.0 1.5 4.9 3.5 Southwest 0.3 — 0.5 0.8 West 8.9 1.7 22.9 5.6 $ 19.2 $ 8.9 $ 41.0 $ 42.8 Income before Income Taxes (1) East $ 74.1 $ 67.1 $ 158.0 $ 158.7 Midwest 18.7 23.0 38.8 55.0 Southeast 168.4 156.1 411.6 374.9 South Central 164.3 143.3 389.6 365.2 Southwest 33.5 32.3 69.8 69.1 West 102.8 167.9 248.8 356.6 $ 561.8 $ 589.7 $ 1,316.6 $ 1,379.5 _________________ (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 homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances. |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of notes payable at principal amounts, net of unamortized discounts | The Company’s notes payable at their carrying amounts consist of the following: June 30, 2019 September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility, maturing 2023 $ 150.0 $ — 3.75% senior notes due 2019 (1) — 499.6 4.0% senior notes due 2020 (1) 499.4 498.8 2.55% senior notes due 2020 (1) 398.6 397.9 4.375% senior notes due 2022 (1) 348.7 348.4 4.75% senior notes due 2023 (1) 298.9 298.7 5.75% senior notes due 2023 (1) 398.2 398.0 Other secured notes 97.5 4.5 2,191.3 2,445.9 Forestar: Unsecured: Revolving credit facility, maturing 2021 — — 3.75% convertible senior notes due 2020 (2) 119.3 119.9 8.0% senior notes due 2024 (3) 343.5 — 462.8 119.9 Financial Services: Mortgage repurchase facility, maturing 2020 796.5 637.7 $ 3,450.6 $ 3,203.5 _______________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $6.1 million and $8.5 million at June 30, 2019 and September 30, 2018 , respectively. (2) Forestar’s 3.75% convertible senior notes due 2020 include an unamortized fair value adjustment of $3.9 million and $8.2 million at June 30, 2019 and September 30, 2018 , respectively. (3) Debt issuance costs that were deducted from the carrying amount of Forestar’s 8.0% senior notes totaled $6.5 million at June 30, 2019 . |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Interest Costs Incurred [Abstract] | |
Rollforward of capitalized interest | The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and nine months ended June 30, 2019 and 2018 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Capitalized interest, beginning of period $ 173.9 $ 170.1 $ 162.7 $ 167.9 Interest incurred (1) 38.1 31.0 104.8 93.8 Interest charged to cost of sales (34.3 ) (35.4 ) (89.8 ) (96.0 ) Capitalized interest, end of period $ 177.7 $ 165.7 $ 177.7 $ 165.7 _______________ (1) Interest incurred included interest on the Company's mortgage repurchase facility of $4.5 million and $10.8 million in the three and nine months ended June 30, 2019 , respectively, and $3.4 million and $7.9 million in the same periods of fiscal 2018 . Also included in interest incurred is Forestar interest of $7.9 million and $10.7 million in the three and nine months ended June 30, 2019 , respectively, and $0.9 million and $2.3 million in the same periods of fiscal 2018 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Numerator and denominator used to compute basic and diluted earnings per share | The following table sets forth the numerators and denominators used in the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 474.8 $ 453.8 $ 1,113.2 $ 994.1 Denominator: Denominator for basic earnings per share — weighted average common shares 372.3 377.4 373.5 376.6 Effect of dilutive securities: Employee stock awards 4.6 6.0 4.7 7.0 Denominator for diluted earnings per share — adjusted weighted average common shares 376.9 383.4 378.2 383.6 Basic net income per common share attributable to D.R. Horton, Inc. $ 1.28 $ 1.20 $ 2.98 $ 2.64 Diluted net income per common share attributable to D.R. Horton, Inc. $ 1.26 $ 1.18 $ 2.94 $ 2.59 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in warranty liability | Changes in the Company’s warranty liability during the three and nine months ended June 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In millions) Warranty liability, beginning of period $ 213.9 $ 162.6 $ 202.0 $ 143.7 Warranties issued 25.8 23.6 64.7 59.3 Changes in liability for pre-existing warranties 9.4 8.1 20.9 25.9 Settlements made (20.1 ) (17.9 ) (58.6 ) (52.5 ) Warranty liability, end of period $ 229.0 $ 176.4 $ 229.0 $ 176.4 |
Changes in legal claims reserves | Changes in the Company’s legal claims reserves during the nine months ended June 30, 2019 and 2018 were as follows: Nine Months Ended 2019 2018 (In millions) Reserves for legal claims, beginning of period $ 408.1 $ 420.6 Increase in reserves 45.5 47.2 Payments (12.7 ) (60.0 ) Reserves for legal claims, end of period $ 440.9 $ 407.8 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Other assets | The Company’s other assets at June 30, 2019 and September 30, 2018 were as follows: June 30, September 30, 2018 (In millions) Earnest money and refundable deposits $ 522.7 $ 445.2 Insurance receivables 69.8 54.6 Other receivables 107.5 81.7 Prepaid assets 33.9 36.9 Rental properties 35.1 39.2 Contract assets - insurance agency commissions 36.3 — Other 84.6 55.3 $ 889.9 $ 712.9 |
Accrued expenses and other liabilities | The Company’s accrued expenses and other liabilities at June 30, 2019 and September 30, 2018 were as follows: June 30, September 30, 2018 (In millions) Reserves for legal claims $ 440.9 $ 408.1 Employee compensation and related liabilities 254.9 252.5 Warranty liability 229.0 202.0 Accrued interest 36.2 14.8 Federal and state income tax liabilities 52.2 35.2 Inventory related accruals 49.5 45.5 Customer deposits 67.4 58.1 Accrued property taxes 27.3 38.0 Other 120.1 73.3 $ 1,277.5 $ 1,127.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and September 30, 2018 . Changes in the fair value of the Level 3 assets during the nine months ended June 30, 2019 and 2018 were not material. Fair Value at June 30, 2019 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Debt securities collateralized by residential real estate Other assets $ — $ — $ 3.9 $ 3.9 Mortgage loans held for sale (a) Mortgage loans held for sale — 941.1 9.2 950.3 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 21.5 — 21.5 Forward sales of mortgage-backed securities Other liabilities — (14.9 ) — (14.9 ) Best-efforts and mandatory commitments Other liabilities — (0.6 ) — (0.6 ) Fair Value at September 30, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Debt securities collateralized by residential real estate Other assets $ — $ — $ 3.9 $ 3.9 Mortgage loans held for sale (a) Mortgage loans held for sale — 784.6 7.8 792.4 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 10.5 — 10.5 Forward sales of mortgage-backed securities Other assets — 3.3 — 3.3 Best-efforts and mandatory commitments Other assets — 0.2 — 0.2 ___________________ (a) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at June 30, 2019 and September 30, 2018 include $9.2 million and $7.8 million , respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit. (b) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in 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 June 30, 2019 and September 30, 2018 : Fair Value at Fair Value at Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Inventory held and used (a) (b) Inventories $ — $ 14.6 $ — $ 4.4 Inventory available for sale (a) (c) Inventories — — — 1.4 Mortgage loans held for sale (a) (d) Mortgage loans held for sale — 1.0 — 2.9 Other mortgage loans (a) (e) Other assets — 1.0 — 1.0 ___________________ (a) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment in the respective period and were held at the end of the period. (b) In performing its impairment analysis of communities, discount rates ranging from 14% to 16% 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, comparable sales or actual contracts. (d) These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3). (e) The fair value of other mortgage loans was determined based on the value of the underlying collateral. |
Carrying values and fair values of financial assets and liabilities not reflected at fair value | For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2019 and September 30, 2018 : Carrying Value Fair Value at June 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 864.2 $ 864.2 $ — $ — $ 864.2 Restricted cash (a) 21.1 21.1 — — 21.1 Notes payable (b) (c) 3,450.6 — 2,512.5 1,044.0 3,556.5 Carrying Value Fair Value at September 30, 2018 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,473.1 $ 1,473.1 $ — $ — $ 1,473.1 Restricted cash (a) 32.9 32.9 — — 32.9 Notes payable (b) (c) 3,203.5 — 2,602.6 642.2 3,244.8 ___________________ (a) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (c) The fair values of other secured notes and borrowings on the revolving credit facilities and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy. |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Condensed Financial Statements | Consolidating Balance Sheet June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 412.7 $ 115.3 $ 336.2 $ — $ 864.2 Restricted cash 7.7 2.1 11.3 — 21.1 Investment in subsidiaries 7,055.5 — — (7,055.5 ) — Inventories 4,315.7 6,271.7 1,143.3 (28.4 ) 11,702.3 Mortgage loans held for sale — — 954.9 — 954.9 Deferred income taxes, net 61.4 90.5 18.4 3.6 173.9 Property and equipment, net 124.8 76.2 257.6 (4.4 ) 454.2 Other assets 382.2 440.7 150.7 (83.7 ) 889.9 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables 58.7 211.7 — (270.4 ) — Total Assets $ 12,418.7 $ 7,342.5 $ 2,901.6 $ (7,438.8 ) $ 15,224.0 LIABILITIES & EQUITY Accounts payable and other liabilities $ 646.2 $ 1,074.1 $ 330.8 $ (92.4 ) $ 1,958.7 Intercompany payables — — 270.4 (270.4 ) — Notes payable 2,107.2 6.7 1,336.7 — 3,450.6 Total Liabilities 2,753.4 1,080.8 1,937.9 (362.8 ) 5,409.3 Stockholders’ equity 9,665.3 6,261.7 793.9 (7,078.5 ) 9,642.4 Noncontrolling interests — — 169.8 2.5 172.3 Total Equity 9,665.3 6,261.7 963.7 (7,076.0 ) 9,814.7 Total Liabilities & Equity $ 12,418.7 $ 7,342.5 $ 2,901.6 $ (7,438.8 ) $ 15,224.0 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet September 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 908.1 $ 158.7 $ 406.3 $ — $ 1,473.1 Restricted cash 6.6 2.0 24.3 — 32.9 Investment in subsidiaries 6,344.9 — — (6,344.9 ) — Inventories 4,037.1 5,824.1 545.0 (11.2 ) 10,395.0 Mortgage loans held for sale — — 796.4 — 796.4 Deferred income taxes, net 69.2 105.0 17.3 2.5 194.0 Property and equipment, net 111.2 66.1 230.7 (6.9 ) 401.1 Other assets 306.6 361.3 90.2 (45.2 ) 712.9 Goodwill — 80.0 29.2 — 109.2 Intercompany receivables 246.2 27.3 — (273.5 ) — Total Assets $ 12,029.9 $ 6,624.5 $ 2,139.4 $ (6,679.2 ) $ 14,114.6 LIABILITIES & EQUITY Accounts payable and other liabilities $ 590.8 $ 1,000.4 $ 210.1 $ (49.1 ) $ 1,752.2 Intercompany payables — — 273.5 (273.5 ) — Notes payable 2,443.9 2.1 757.5 — 3,203.5 Total Liabilities 3,034.7 1,002.5 1,241.1 (322.6 ) 4,955.7 Stockholders’ equity 8,995.2 5,622.0 722.8 (6,355.6 ) 8,984.4 Noncontrolling interests — — 175.5 (1.0 ) 174.5 Total Equity 8,995.2 5,622.0 898.3 (6,356.6 ) 9,158.9 Total Liabilities & Equity $ 12,029.9 $ 6,624.5 $ 2,139.4 $ (6,679.2 ) $ 14,114.6 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,939.3 $ 2,820.9 $ 219.2 $ (73.1 ) $ 4,906.3 Cost of sales 1,529.6 2,286.9 82.4 (67.3 ) 3,831.6 Selling, general and administrative expense 191.8 193.4 94.8 — 480.0 Gain on sale of assets — (0.2 ) (22.4 ) — (22.6 ) Other (income) expense (0.9 ) (0.5 ) (8.0 ) — (9.4 ) Income before income taxes 218.8 341.3 72.4 (5.8 ) 626.7 Income tax expense 53.7 84.1 16.8 (1.5 ) 153.1 Equity in net income of subsidiaries, net of tax 314.6 — — (314.6 ) — Net income 479.7 257.2 55.6 (318.9 ) 473.6 Net loss attributable to noncontrolling interests — — (1.9 ) 0.7 (1.2 ) Net income attributable to D.R. Horton, Inc. $ 479.7 $ 257.2 $ 57.5 $ (319.6 ) $ 474.8 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Nine Months Ended June 30, 2019 D.R. Guarantor Non-Guarantor Eliminations Total (In millions) Revenues $ 4,850.2 $ 7,322.3 $ 523.3 $ (141.8 ) $ 12,554.0 Cost of sales 3,836.6 5,957.8 172.8 (127.8 ) 9,839.4 Selling, general and administrative expense 543.3 523.9 259.8 — 1,327.0 Gain on sale of assets (2.0 ) (0.2 ) (49.2 ) (2.5 ) (53.9 ) Other (income) expense (2.9 ) (1.3 ) (19.5 ) — (23.7 ) Income before income taxes 475.2 842.1 159.4 (11.5 ) 1,465.2 Income tax expense 114.2 202.3 36.8 (2.8 ) 350.5 Equity in net income of subsidiaries, net of tax 764.2 — — (764.2 ) — Net income 1,125.2 639.8 122.6 (772.9 ) 1,114.7 Net loss attributable to noncontrolling interests — — (1.9 ) 3.4 1.5 Net income attributable to D.R. Horton, Inc. $ 1,125.2 $ 639.8 $ 124.5 $ (776.3 ) $ 1,113.2 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended June 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,630.8 $ 2,693.9 $ 119.5 $ (8.9 ) $ 4,435.3 Cost of sales 1,293.3 2,092.5 17.0 (5.6 ) 3,397.2 Selling, general and administrative expense 174.4 174.1 86.4 — 434.9 Other (income) expense (1.5 ) 0.5 (12.0 ) — (13.0 ) Income before income taxes 164.6 426.8 28.1 (3.3 ) 616.2 Income tax expense 43.8 113.6 5.1 — 162.5 Equity in net income of subsidiaries, net of tax 336.2 — — (336.2 ) — Net income 457.0 313.2 23.0 (339.5 ) 453.7 Net loss attributable to noncontrolling interests — — (3.5 ) 3.4 (0.1 ) Net income attributable to D.R. Horton, Inc. $ 457.0 $ 313.2 $ 26.5 $ (342.9 ) $ 453.8 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Nine Months Ended June 30, 2018 D.R. Guarantor Non-Guarantor Eliminations Total (In millions) Revenues $ 4,082.7 $ 7,149.0 $ 353.6 $ (22.4 ) $ 11,562.9 Cost of sales 3,235.0 5,659.4 61.1 (16.5 ) 8,939.0 Selling, general and administrative expense 483.4 490.6 245.9 — 1,219.9 Gain on sale of assets — — (14.5 ) — (14.5 ) Other (income) expense (3.5 ) (0.2 ) (30.1 ) — (33.8 ) Income before income taxes 367.8 999.2 91.2 (5.9 ) 1,452.3 Income tax expense 117.0 318.7 24.2 (1.0 ) 458.9 Equity in net income of subsidiaries, net of tax 747.5 — — (747.5 ) — Net income $ 998.3 $ 680.5 $ 67.0 $ (752.4 ) $ 993.4 Net loss attributable to noncontrolling interests — — (4.1 ) 3.4 (0.7 ) Net income attributable to D.R. Horton, Inc. $ 998.3 $ 680.5 $ 71.1 $ (755.8 ) $ 994.1 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Nine Months Ended June 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ 210.9 $ 467.4 $ (518.9 ) $ (78.7 ) $ 80.7 INVESTING ACTIVITIES Expenditures for property and equipment (37.9 ) (22.6 ) (44.8 ) — (105.3 ) Proceeds from sale of assets 10.4 — 133.4 — 143.8 Expenditures related to multi-family rental properties — — (56.3 ) — (56.3 ) Return of investment in unconsolidated entities — — 4.4 — 4.4 Net principal increase of other mortgage loans and real estate owned — — (2.0 ) — (2.0 ) Intercompany advances 497.0 — — (497.0 ) — Payments related to business acquisitions (302.6 ) — (8.3 ) — (310.9 ) Net cash provided by (used in) investing activities 166.9 (22.6 ) 26.4 (497.0 ) (326.3 ) FINANCING ACTIVITIES Proceeds from notes payable 2,100.0 — 428.2 — 2,528.2 Repayment of notes payable (2,450.0 ) (1.1 ) (85.0 ) — (2,536.1 ) Advances on mortgage repurchase facility, net — — 158.8 — 158.8 Intercompany advances — (487.0 ) (10.0 ) 497.0 — Proceeds from stock associated with certain employee benefit plans 26.8 — — — 26.8 Cash paid for shares withheld for taxes (19.5 ) — — — (19.5 ) Cash dividends paid (167.9 ) — (78.7 ) 78.7 (167.9 ) Repurchases of common stock (361.5 ) — — — (361.5 ) Distributions to noncontrolling interests, net — — (3.9 ) — (3.9 ) Net cash (used in) provided by financing activities (872.1 ) (488.1 ) 409.4 575.7 (375.1 ) Decrease in cash, cash equivalents and restricted cash (494.3 ) (43.3 ) (83.1 ) — (620.7 ) Cash, cash equivalents and restricted cash at beginning of period 914.7 160.7 430.6 — 1,506.0 Cash, cash equivalents and restricted cash at end of period $ 420.4 $ 117.4 $ 347.5 $ — $ 885.3 NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Nine Months Ended June 30, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (17.9 ) $ 640.4 $ (254.0 ) $ (62.0 ) $ 306.5 INVESTING ACTIVITIES Expenditures for property and equipment (29.1 ) (21.5 ) (3.4 ) — (54.0 ) Proceeds from sale of assets — — 261.1 — 261.1 Expenditures related to multi-family rental properties — — (61.1 ) 5.0 (56.1 ) Return of investment in unconsolidated entities — — 15.4 — 15.4 Net principal increase of other mortgage loans and real estate owned — — (0.8 ) — (0.8 ) Intercompany advances 615.7 — — (615.7 ) — Payments related to business acquisitions, net of cash acquired (560.0 ) — 401.9 — (158.1 ) Net cash provided by (used in) investing activities 26.6 (21.5 ) 613.1 (610.7 ) 7.5 FINANCING ACTIVITIES Proceeds from notes payable 2,162.2 — 2.1 — 2,164.3 Repayment of notes payable (2,165.2 ) (3.7 ) (10.6 ) — (2,179.5 ) Advances on mortgage repurchase facility, net — — 106.3 — 106.3 Intercompany advances — (660.6 ) 44.9 615.7 — Proceeds from stock associated with certain employee benefit plans 36.2 — — — 36.2 Cash paid for shares withheld for taxes (10.3 ) — — — (10.3 ) Cash dividends paid (141.3 ) — (57.0 ) 57.0 (141.3 ) Repurchases of common stock (74.9 ) — — — (74.9 ) Distributions to noncontrolling interests, net — — (2.2 ) — (2.2 ) Net cash (used in) provided by financing activities (193.3 ) (664.3 ) 83.5 672.7 (101.4 ) (Decrease) increase in cash, cash equivalents and restricted cash (184.6 ) (45.4 ) 442.6 — 212.6 Cash, cash equivalents and restricted cash at beginning of period 788.7 156.0 79.6 — 1,024.3 Cash, cash equivalents and restricted cash at end of period $ 604.1 $ 110.6 $ 522.2 $ — $ 1,236.9 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018USD ($)LotHome | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Oct. 01, 2018USD ($) | Sep. 30, 2018USD ($) | |
Entity Information [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 75.00% | ||||
Payments to Acquire Businesses | $ 310.9 | $ 158.1 | |||
Cumulative Effect on Retained Earnings, Net of Tax | $ 27.1 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% | ||||
Goodwill | $ 163.5 | $ 109.2 | |||
Contract Asset Insurance Renewals | 36.3 | 0 | |||
Accounting Standards Update 2016-18 [Member] | |||||
Entity Information [Line Items] | |||||
Increase (Decrease) in Restricted Cash | $ (42.2) | ||||
Accounting Standards Update 2014-09 [Member] | |||||
Entity Information [Line Items] | |||||
Contract Asset Insurance Renewals | $ 32.4 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
Entity Information [Line Items] | |||||
Payments to Acquire Businesses | 325.9 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 265.5 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 23.3 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (25.8) | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 325.9 | ||||
Goodwill | 54.3 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 8.6 | ||||
Business Acquisition, Number of Homes Acquired | Home | 700 | ||||
Business Acquisition, Number of Finished Lots Acquired | Lot | 4,500 | ||||
Business Acquisition, Number of Lots Under Option Contracts | Lot | 4,300 | ||||
Business Acquisition, Sales Order Backlog Acquired (Homes) | Home | 700 | ||||
Home Building [Member] | |||||
Entity Information [Line Items] | |||||
Goodwill | $ 134.3 | $ 80 | |||
Home Building [Member] | Midwest [Member] | |||||
Entity Information [Line Items] | |||||
Goodwill | $ 49.7 | ||||
Home Building [Member] | East [Member] | |||||
Entity Information [Line Items] | |||||
Goodwill | 4.6 | ||||
Minimum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Entity Information [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||
Maximum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Entity Information [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Retained Earnings [Member] | |||||
Entity Information [Line Items] | |||||
Cumulative Effect on Retained Earnings, Net of Tax | 27.1 | ||||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Entity Information [Line Items] | |||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 27.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019USD ($)ProjectsMarketStateSegmentsOperatingDivisions | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ProjectsMarketState | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Document Period End Date | Jun. 30, 2019 | |||||
Proceeds from Sale of Buildings | $ 143.8 | $ 261.1 | ||||
Gain (Loss) on Sale of Properties | $ 22.6 | $ 0 | 53.9 | 14.5 | ||
Total assets | 15,224 | 15,224 | $ 14,114.6 | |||
Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (Loss) on Sale of Properties | 22.6 | 0 | 51.9 | 0 | ||
Total assets | $ 273.2 | $ 273.2 | 198.9 | |||
Home Building [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of housing construction markets | Market | 87 | 87 | ||||
Number of housing construction states | State | 29 | 29 | ||||
Number of home building operating divisions | OperatingDivisions | 51 | |||||
Number of homebuilding reporting segments | Segments | 6 | |||||
Gain (Loss) on Sale of Properties | $ 0 | 0 | $ 2 | 13.4 | ||
Total assets | $ 12,613.2 | $ 12,613.2 | 12,132.8 | |||
Forestar Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of housing construction markets | Market | 50 | 50 | ||||
Number of housing construction states | State | 20 | 20 | ||||
Gain (Loss) on Sale of Properties | $ 1.5 | $ 1.3 | $ 2.4 | $ 4 | ||
Total assets | 1,325.2 | 1,325.2 | 893.1 | |||
Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | $ 167.2 | $ 167.2 | $ 173.2 | |||
Asset under Construction [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of Projects | Projects | 5 | 5 | ||||
Assets Leased to Others [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of Projects | Projects | 1 | 1 | ||||
DHIC2 [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Proceeds from Sale of Buildings | $ 60 | $ 60 | ||||
Gain (Loss) on Sale of Properties | $ 22.6 | $ 22.6 | ||||
DHIC1 [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Proceeds from Sale of Buildings | $ 73.4 | |||||
Gain (Loss) on Sale of Properties | $ 29.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Document Period End Date | Jun. 30, 2019 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | $ 864.2 | $ 864.2 | $ 1,473.1 | |||
Restricted cash | 21.1 | 21.1 | 32.9 | |||
Inventories: | ||||||
Construction in progress and finished homes | 5,722.6 | 5,722.6 | 5,086.3 | |||
Residential land and lots — developed and under development | 5,811.4 | 5,811.4 | 5,172.4 | |||
Land held for development | 125.7 | 125.7 | 96.1 | |||
Land held for sale | 42.6 | 42.6 | 40.2 | |||
Total inventories | 11,702.3 | 11,702.3 | 10,395 | |||
Mortgage loans held for sale | 954.9 | 954.9 | 796.4 | |||
Deferred income taxes, net | 173.9 | 173.9 | 194 | |||
Property and equipment, net | 454.2 | 454.2 | 401.1 | |||
Other Assets | 889.9 | 889.9 | 712.9 | |||
Goodwill | 163.5 | 163.5 | 109.2 | |||
Total assets | 15,224 | 15,224 | 14,114.6 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 681.2 | 681.2 | 624.7 | |||
Accrued expenses and other liabilities | 1,277.5 | 1,277.5 | 1,127.5 | |||
Notes payable | 3,450.6 | 3,450.6 | 3,203.5 | |||
Total liabilities | 5,409.3 | 5,409.3 | 4,955.7 | |||
Revenues | ||||||
Total revenues | 4,906.3 | $ 4,435.3 | 12,554 | $ 11,562.9 | ||
Cost of Goods and Services Sold | 3,831.6 | 3,397.2 | 9,839.4 | 8,939 | ||
Inventory and land option charges | 19.2 | 8.9 | 41 | 42.8 | ||
Cost of sales | 3,831.6 | 3,397.2 | 9,839.4 | 8,939 | ||
Selling, General and Administrative Expense | 480 | 434.9 | 1,327 | 1,219.9 | ||
Gain on sale of assets | (22.6) | 0 | (53.9) | (14.5) | ||
Interest Expense | 0 | 0 | ||||
Other (income) expense | (9.4) | (13) | (23.7) | (33.8) | ||
Income (loss) before income taxes | 626.7 | 616.2 | 1,465.2 | 1,452.3 | ||
Depreciation and amortization | 52.4 | 46.6 | ||||
Net cash provided by (used in) operating activities | 80.7 | 306.5 | ||||
Segment Reconciling Items [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Restricted cash | 0 | 0 | 0 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 2.9 | 2.9 | 27.2 | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | 2.9 | 2.9 | 27.2 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | (5.2) | (5.2) | (10.5) | |||
Property and equipment, net | 0 | 0 | 0 | |||
Other Assets | 11.7 | 11.7 | 11.9 | |||
Goodwill | 29.2 | 29.2 | 29.2 | |||
Total assets | 38.6 | 38.6 | 57.8 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 0 | 0 | 0 | |||
Accrued expenses and other liabilities | (12.7) | (12.7) | (15.2) | |||
Notes payable | 3.9 | 3.9 | 8.2 | |||
Total liabilities | (8.8) | (8.8) | (7) | |||
Revenues | ||||||
Total revenues | 0 | (1.2) | 0 | (1.2) | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 8.2 | 5.7 | 20 | 12.6 | ||
Selling, General and Administrative Expense | 0.1 | 0.1 | 0.3 | 0.3 | ||
Gain on sale of assets | 1.5 | 1.3 | 2.4 | 2.9 | ||
Interest Expense | 0 | 0 | ||||
Other (income) expense | 0 | 1.3 | 0 | 7.7 | ||
Income (loss) before income taxes | (9.8) | (9.6) | (22.7) | (24.7) | ||
Depreciation and amortization | 0.4 | 0.4 | ||||
Net cash provided by (used in) operating activities | (4.4) | (8.1) | ||||
Intersegment Eliminations [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Restricted cash | 0 | 0 | 0 | |||
Inventories: | ||||||
Construction in progress and finished homes | (0.9) | (0.9) | 1.9 | |||
Residential land and lots — developed and under development | (27.6) | (27.6) | (7.2) | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | (28.5) | (28.5) | (5.3) | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 3.7 | 3.7 | 1.1 | |||
Property and equipment, net | 0 | 0 | 0 | |||
Other Assets | (83) | (83) | (48.6) | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | (107.8) | (107.8) | (52.8) | |||
Liabilities [Abstract] | ||||||
Accounts payable | (0.7) | (0.7) | (3.3) | |||
Accrued expenses and other liabilities | (93.7) | (93.7) | (46.1) | |||
Notes payable | 0 | 0 | 0 | |||
Total liabilities | (94.4) | (94.4) | (49.4) | |||
Revenues | ||||||
Total revenues | (73.2) | (8.8) | (141.8) | (17.3) | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | (67.3) | (5.6) | (125.3) | (12.3) | ||
Selling, General and Administrative Expense | 0 | 0 | 0 | 0 | ||
Gain on sale of assets | 0 | 0 | 0 | 0 | ||
Interest Expense | (1.6) | (5.8) | ||||
Other (income) expense | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | (5.9) | (1.6) | (16.5) | 0.8 | ||
Depreciation and amortization | 0 | 0 | ||||
Net cash provided by (used in) operating activities | (2.5) | 0 | ||||
Financial Service [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 44.7 | 44.7 | 33.7 | |||
Restricted cash | 11.1 | 11.1 | 8.1 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 0 | 0 | 0 | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | 0 | 0 | 0 | |||
Mortgage loans held for sale | 954.9 | 954.9 | 796.4 | |||
Deferred income taxes, net | 0 | 0 | 0 | |||
Property and equipment, net | 3.2 | 3.2 | 3 | |||
Other Assets | 67.7 | 67.7 | 43.6 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 1,081.6 | 1,081.6 | 884.8 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 18.4 | 18.4 | 0.2 | |||
Accrued expenses and other liabilities | 56.9 | 56.9 | 41.9 | |||
Notes payable | 796.5 | 796.5 | 637.7 | |||
Total liabilities | 871.8 | 871.8 | 679.8 | |||
Revenues | ||||||
Total revenues | 119.6 | 97.1 | 306.4 | 273.1 | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Selling, General and Administrative Expense | 76.4 | 71.1 | 213.4 | 199.6 | ||
Gain on sale of assets | 0 | 0 | 0 | 0 | ||
Interest Expense | 0 | 0 | ||||
Other (income) expense | (4.9) | (4.3) | (12.6) | (10.5) | ||
Income (loss) before income taxes | 48.1 | 30.3 | 105.6 | 84 | ||
Depreciation and amortization | 1.1 | 1 | ||||
Net cash provided by (used in) operating activities | (65.5) | (27) | ||||
Home Building [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 577.9 | 577.9 | 1,111.8 | |||
Restricted cash | 9.8 | 9.8 | 8.6 | |||
Inventories: | ||||||
Construction in progress and finished homes | 5,723.5 | 5,723.5 | 5,084.4 | |||
Residential land and lots — developed and under development | 4,847.4 | 4,847.4 | 4,689.3 | |||
Land held for development | 64.9 | 64.9 | 61.2 | |||
Land held for sale | 42.6 | 42.6 | 40.2 | |||
Total inventories | 10,678.4 | 10,678.4 | 9,875.1 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 154.4 | 154.4 | 176.5 | |||
Property and equipment, net | 234.2 | 234.2 | 207.1 | |||
Other Assets | 824.2 | 824.2 | 673.7 | |||
Goodwill | 134.3 | 134.3 | 80 | |||
Total assets | 12,613.2 | 12,613.2 | 12,132.8 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 640.6 | 640.6 | 612.4 | |||
Accrued expenses and other liabilities | 1,155.8 | 1,155.8 | 1,041.3 | |||
Notes payable | 2,191.3 | 2,191.3 | 2,445.9 | |||
Total liabilities | 3,987.7 | 3,987.7 | 4,099.6 | |||
Revenues | ||||||
Total revenues | 4,762.1 | 4,324.6 | 12,175 | 11,231.3 | ||
Inventory and land option charges | 19.2 | 8.9 | 41 | 42.8 | ||
Cost of sales | 3,815.4 | 3,387.1 | 9,795.1 | 8,893.2 | ||
Selling, General and Administrative Expense | 387.4 | 349.1 | 1,071.4 | 976.6 | ||
Gain on sale of assets | 0 | 0 | (2) | (13.4) | ||
Interest Expense | 0 | 0 | ||||
Other (income) expense | (2.5) | (1.3) | (6.1) | (4.6) | ||
Income (loss) before income taxes | 561.8 | 589.7 | 1,316.6 | 1,379.5 | ||
Depreciation and amortization | 46.4 | 39.8 | ||||
Net cash provided by (used in) operating activities | 605.7 | 565.2 | ||||
Forestar Group [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 223 | 223 | 318.8 | |||
Restricted cash | 0.2 | 0.2 | 16.2 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 988.7 | 988.7 | 463.1 | |||
Land held for development | 60.8 | 60.8 | 34.9 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | 1,049.5 | 1,049.5 | 498 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 21 | 21 | 26.9 | |||
Property and equipment, net | 2.4 | 2.4 | 1.8 | |||
Other Assets | 29.1 | 29.1 | 31.4 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 1,325.2 | 1,325.2 | 893.1 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 19.5 | 19.5 | 11.2 | |||
Accrued expenses and other liabilities | 151.5 | 151.5 | 95.7 | |||
Notes payable | 458.9 | 458.9 | 111.7 | |||
Total liabilities | 629.9 | 629.9 | 218.6 | |||
Revenues | ||||||
Total revenues | 88.2 | 23.6 | 192 | 77 | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 75.3 | 10 | 149.6 | 45.5 | ||
Selling, General and Administrative Expense | 7.9 | 6.5 | 19.8 | 25.6 | ||
Gain on sale of assets | (1.5) | (1.3) | (2.4) | (4) | ||
Interest Expense | 1.6 | 5.8 | ||||
Other (income) expense | (1.9) | (3.7) | (4.6) | (15) | ||
Income (loss) before income taxes | 8.4 | 10.5 | 29.6 | 19.1 | ||
Depreciation and amortization | 0.2 | 0.2 | ||||
Net cash provided by (used in) operating activities | (450.1) | (219.2) | ||||
Other Segments [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 18.6 | 18.6 | 8.8 | |||
Restricted cash | 0 | 0 | 0 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 0 | 0 | 0 | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | 0 | 0 | 0 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 0 | 0 | 0 | |||
Property and equipment, net | 214.4 | 214.4 | 189.2 | |||
Other Assets | 40.2 | 40.2 | 0.9 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 273.2 | 273.2 | 198.9 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 3.4 | 3.4 | 4.2 | |||
Accrued expenses and other liabilities | 19.7 | 19.7 | 9.9 | |||
Notes payable | 0 | 0 | 0 | |||
Total liabilities | 23.1 | 23.1 | 14.1 | |||
Revenues | ||||||
Total revenues | 9.6 | 0 | 22.4 | 0 | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Selling, General and Administrative Expense | 8.2 | 8.1 | 22.1 | 17.8 | ||
Gain on sale of assets | (22.6) | 0 | (51.9) | 0 | ||
Interest Expense | 0 | 0 | ||||
Other (income) expense | (0.1) | (5) | (0.4) | (11.4) | ||
Income (loss) before income taxes | 24.1 | (3.1) | 52.6 | (6.4) | ||
Depreciation and amortization | 4.3 | 5.2 | ||||
Net cash provided by (used in) operating activities | (2.5) | (4.4) | ||||
East [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 1,300.8 | 1,300.8 | 1,192 | |||
Goodwill | $ 4.6 | |||||
Revenues | ||||||
Total revenues | 675.2 | 529.1 | 1,640.9 | 1,357.9 | ||
Inventory and land option charges | 0.6 | 0.3 | 2.3 | 0.9 | ||
Income (loss) before income taxes | 74.1 | 67.1 | 158 | 158.7 | ||
Midwest [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 818.5 | 818.5 | 583.1 | |||
Goodwill | $ 49.7 | |||||
Revenues | ||||||
Total revenues | 303.3 | 256.7 | 800.5 | 621.7 | ||
Inventory and land option charges | 1.3 | 4.3 | 1.8 | 4.7 | ||
Income (loss) before income taxes | 18.7 | 23 | 38.8 | 55 | ||
Southeast [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 2,733.1 | 2,733.1 | 2,668.7 | |||
Revenues | ||||||
Total revenues | 1,388.1 | 1,263.3 | 3,607.2 | 3,293.9 | ||
Inventory and land option charges | 5.1 | 1.1 | 8.6 | 27.3 | ||
Income (loss) before income taxes | 168.4 | 156.1 | 411.6 | 374.9 | ||
South Central [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 2,660.5 | 2,660.5 | 2,439.4 | |||
Revenues | ||||||
Total revenues | 1,178 | 1,005.4 | 3,040.8 | 2,733.2 | ||
Inventory and land option charges | 3 | 1.5 | 4.9 | 3.5 | ||
Income (loss) before income taxes | 164.3 | 143.3 | 389.6 | 365.2 | ||
Southwest [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 606.2 | 606.2 | 499.7 | |||
Revenues | ||||||
Total revenues | 240.6 | 220.1 | 557.5 | 548.6 | ||
Inventory and land option charges | 0.3 | 0 | 0.5 | 0.8 | ||
Income (loss) before income taxes | 33.5 | 32.3 | 69.8 | 69.1 | ||
West [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 2,325.7 | 2,325.7 | 2,268.5 | |||
Revenues | ||||||
Total revenues | 976.9 | 1,050 | 2,528.1 | 2,676 | ||
Inventory and land option charges | 8.9 | 1.7 | 22.9 | 5.6 | ||
Income (loss) before income taxes | 102.8 | 167.9 | 248.8 | 356.6 | ||
Corporate, Non-Segment [Member] | Home Building [Member] | ||||||
Inventories: | ||||||
Total inventories | 233.6 | 233.6 | $ 223.7 | |||
Land [Member] | ||||||
Revenues | ||||||
Sales | 52.1 | 72.7 | 121.8 | 167.7 | ||
Cost of Goods and Services Sold | 40.7 | 55.5 | 85 | 134.5 | ||
Land [Member] | Segment Reconciling Items [Member] | ||||||
Revenues | ||||||
Sales | 0 | (1.2) | 0 | (1.2) | ||
Cost of Goods and Services Sold | 8.2 | 5.7 | 20 | 12.6 | ||
Land [Member] | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Sales | (73.2) | (8.8) | (141.8) | (17.3) | ||
Cost of Goods and Services Sold | (66) | (5.6) | (122.2) | (12.3) | ||
Land [Member] | Financial Service [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Land [Member] | Home Building [Member] | ||||||
Revenues | ||||||
Sales | 27.5 | 59.1 | 49.2 | 109.2 | ||
Cost of Goods and Services Sold | 23.2 | 45.4 | 37.6 | 88.7 | ||
Land [Member] | Forestar Group [Member] | ||||||
Revenues | ||||||
Sales | 88.2 | 23.6 | 192 | 77 | ||
Cost of Goods and Services Sold | 75.3 | 10 | 149.6 | 45.5 | ||
Land [Member] | Other Segments [Member] | ||||||
Revenues | ||||||
Sales | 9.6 | 0 | 22.4 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Sales [Member] | ||||||
Revenues | ||||||
Sales | 4,734.6 | 4,265.5 | 12,125.8 | 11,122.1 | ||
Cost of Goods and Services Sold | 3,771.7 | 3,332.8 | 9,713.4 | 8,761.7 | ||
Sales [Member] | Segment Reconciling Items [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Sales [Member] | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | (1.3) | 0 | (3.1) | 0 | ||
Sales [Member] | Financial Service [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Sales [Member] | Home Building [Member] | ||||||
Revenues | ||||||
Sales | 4,734.6 | 4,265.5 | 12,125.8 | 11,122.1 | ||
Cost of Goods and Services Sold | 3,773 | 3,332.8 | 9,716.5 | 8,761.7 | ||
Sales [Member] | Forestar Group [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Sales [Member] | Other Segments [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Financial Service [Member] | ||||||
Revenues | ||||||
Sales | 119.6 | 97.1 | 306.4 | 273.1 | ||
Financial Service [Member] | Segment Reconciling Items [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Financial Service [Member] | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Financial Service [Member] | Financial Service [Member] | ||||||
Revenues | ||||||
Sales | 119.6 | 97.1 | 306.4 | 273.1 | ||
Financial Service [Member] | Home Building [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Financial Service [Member] | Forestar Group [Member] | ||||||
Revenues | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Financial Service [Member] | Other Segments [Member] | ||||||
Revenues | ||||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Inventory [Line Items] | |||||
Carrying value of communities with impairment indicators | $ 63.1 | $ 63.1 | |||
Impairment charges | 6.8 | $ 3.9 | 18.6 | $ 8.3 | |
Write-offs (recoveries) of earnest money deposits and pre-acquisition costs | $ 12.4 | $ 5 | $ 22.4 | 10 | |
Payments for Legal Settlements | 24.5 | ||||
Forestar Group [Member] | |||||
Inventory [Line Items] | |||||
Proceeds from Sale of Productive Assets | $ 232 | ||||
Payments for (Proceeds from) Productive Assets | $ (217.5) | ||||
Gain (Loss) on Sale of Interest in Projects | $ 0.7 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Document Period End Date | Jun. 30, 2019 | |
Unsecured: | ||
Notes payable | $ 3,450.6 | $ 3,203.5 |
Home Building [Member] | ||
Unsecured: | ||
Notes payable | 2,191.3 | 2,445.9 |
Revolving credit facility | 150 | 0 |
Financial Services [Member] | ||
Unsecured: | ||
Notes payable | 796.5 | 637.7 |
Forestar Group [Member] | ||
Unsecured: | ||
Notes payable | 462.8 | 119.9 |
Revolving credit facility | $ 0 | 0 |
3.75% senior notes due 2019 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 3.75% | |
Notes payable | $ 0 | 499.6 |
4.0% senior notes due 2020 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 4.00% | |
Notes payable | $ 499.4 | 498.8 |
2.55% senior notes due 2020 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 2.55% | |
Notes payable | $ 398.6 | 397.9 |
4.375% senior notes due 2022 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 4.375% | |
Notes payable | $ 348.7 | 348.4 |
4.75% senior notes due 2023 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 4.75% | |
Notes payable | $ 298.9 | 298.7 |
5.75% senior notes due 2023 [Member] | Home Building [Member] | ||
Unsecured: | ||
Stated interest rate | 5.75% | |
Notes payable | $ 398.2 | 398 |
3.75% convertible senior notes due 2020 [Member] | Forestar Group [Member] | ||
Unsecured: | ||
Notes payable | 119.3 | 119.9 |
Senior Note Member Forty One [Member] | Forestar Group [Member] | ||
Unsecured: | ||
Notes payable | 343.5 | 0 |
Secured Debt [Member] | Home Building [Member] | ||
Unsecured: | ||
Notes payable | $ 97.5 | $ 4.5 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | Aug. 01, 2018 | Sep. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||||
Document Period End Date | Jun. 30, 2019 | ||||
Notes payable | $ 3,450,600,000 | $ 3,203,500,000 | |||
Outstanding letters of credit | 162,300,000 | ||||
Restricted Cash and Cash Equivalents | 21,100,000 | 32,900,000 | |||
Home Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | 6,100,000 | 8,500,000 | |||
Notes payable | 2,191,300,000 | 2,445,900,000 | |||
Borrowing capacity on revolving credit facility | 1,325,000,000 | ||||
Maximum borrowing capacity on revolving credit facility | $ 1,900,000,000 | ||||
Letters of credit, sublimit borrowing capacity, as a percentage | 50.00% | ||||
Proceeds from revolving credit facility | $ 2,100,000,000 | ||||
Repayments of revolving credit facility | 1,950,000,000 | ||||
Borrowings outstanding on revolving credit facility | $ 150,000,000 | 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.60% | ||||
Authorized repurchase of debt securities | $ 500,000,000 | ||||
Debt repurchase program, remaining authorized repurchase amount | $ 500,000,000 | ||||
Restricted Cash and Cash Equivalents | 9,800,000 | 8,600,000 | |||
Home Building [Member] | Senior Note Twenty Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 0 | 499,600,000 | |||
Maturities of Senior Debt | $ 500,000,000 | ||||
Stated interest rate | 3.75% | ||||
Financial Services [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 796,500,000 | 637,700,000 | |||
Borrowing capacity on revolving credit facility | 900,000,000 | ||||
Maximum borrowing capacity on revolving credit facility | 1,200,000,000 | ||||
Mortgage loans held for sale pledged under repurchase agreement | 906,200,000 | ||||
Mortgage loans held for sale pledged under repurchase agreement, collateral value | $ 874,700,000 | ||||
Interest rate on mortgage repurchase facility | 4.10% | ||||
Forestar Group [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 458,900,000 | 111,700,000 | |||
Borrowing capacity on revolving credit facility | 380,000,000 | ||||
Letter of Credit, Maximum Borrowing Capacity (in dollars) | 100,000,000 | ||||
Maximum borrowing capacity on revolving credit facility | $ 570,000,000 | ||||
Letters of credit, sublimit borrowing capacity, as a percentage | 50.00% | ||||
Restricted Cash and Cash Equivalents | $ 200,000 | 16,200,000 | |||
Forestar Group [Member] | 3.75% convertible senior notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.75% | ||||
Forestar Group [Member] | Senior Note Member Forty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 6,500,000 | ||||
Stated interest rate | 8.00% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | ||||
Debt Instrument, Face Amount | $ 350,000,000 | ||||
Forestar Consolidated [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | 462,800,000 | 119,900,000 | |||
Proceeds from revolving credit facility | 85,000,000 | ||||
Repayments of revolving credit facility | 85,000,000 | ||||
Borrowings outstanding on revolving credit facility | 0 | 0 | |||
Forestar Consolidated [Member] | 3.75% convertible senior notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | 119,300,000 | 119,900,000 | |||
Forestar Consolidated [Member] | Senior Note Member Forty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | 343,500,000 | 0 | |||
Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 1,700,000 | ||||
Standby Letters of Credit [Member] | Home Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 1,500,000 | ||||
Standby Letters of Credit [Member] | Forestar Group [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 200,000 | ||||
Line of Credit [Member] | Home Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 138,900,000 | ||||
Line of Credit [Member] | Forestar Group [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 21,700,000 | ||||
Maximum [Member] | Financial Services [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity on revolving credit facility | 1,100,000,000 | ||||
Segment Reconciling Items [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | 3,900,000 | 8,200,000 | |||
Restricted Cash and Cash Equivalents | $ 0 | $ 0 | |||
Subsequent Event [Member] | Home Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Authorized repurchase of debt securities | $ 500,000,000 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Rollforward of capitalized interest | ||||
Capitalized interest, beginning of period | $ 173.9 | $ 170.1 | $ 162.7 | $ 167.9 |
Interest incurred | 38.1 | 31 | 104.8 | 93.8 |
Interest charged to cost of sales | (34.3) | (35.4) | (89.8) | (96) |
Capitalized interest, end of period | 177.7 | 165.7 | 177.7 | 165.7 |
Financial Services [Member] | ||||
Rollforward of capitalized interest | ||||
Interest incurred | 4.5 | 3.4 | 10.8 | 7.9 |
Forestar Group [Member] | ||||
Rollforward of capitalized interest | ||||
Interest incurred | $ 7.9 | $ 0.9 | $ 10.7 | $ 2.3 |
Mortgage Loans Mortgage Loans H
Mortgage Loans Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held for sale | $ 954.9 | $ 954.9 | $ 796.4 | ||
Mortgage loans held for sale, outstanding principal amount | 924.8 | 924.8 | 776.1 | ||
Payments for Origination of Mortgage Loans Held-for-sale | 6,000 | $ 5,500 | |||
Proceeds from Sale of Mortgage Loans Held-for-sale | 5,800 | 5,400 | |||
Gain (Loss) on Sales of Loans, Net | 85.4 | $ 68 | $ 218.3 | $ 193.7 | |
Concentration Risk, Percentage | 93.00% | ||||
Percentage Of Mortgage Loans Sold To Major Purchaser | 32.00% | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held for sale | 941.1 | $ 941.1 | 784.6 | ||
Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | (14.9) | (14.9) | $ 3.3 | ||
Loan Origination Commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Notional Amount | 227.1 | 227.1 | |||
Loan Origination Commitments [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ (1.9) | $ (1.9) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense | $ 153.1 | $ 162.5 | $ 350.5 | $ 458.9 | ||
Effective tax rate (percent) | 24.40% | 26.40% | 23.90% | 31.60% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 24.50% | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 21.00% | |||||
Deferred tax assets net of DTL | $ 190.5 | $ 190.5 | $ 211.7 | |||
Valuation allowance for deferred income taxes | $ 16.6 | $ 16.6 | $ 17.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net Income (Loss) Attributable to Parent | $ 474.8 | $ 453.8 | $ 1,113.2 | $ 994.1 |
Denominator: | ||||
Denominator for basic earnings per share — weighted average common shares | 372.3 | 377.4 | 373.5 | 376.6 |
Effect of dilutive securities: | ||||
Employee stock awards (shares) | 4.6 | 6 | 4.7 | 7 |
Denominator for diluted earnings per share — adjusted weighted average common shares | 376.9 | 383.4 | 378.2 | 383.6 |
Basic net income per common share attributable to Parent (in dollars per share) | $ 1.28 | $ 1.20 | $ 2.98 | $ 2.64 |
Diluted net income per common share attributable to Parent (in dollars per share) | $ 1.26 | $ 1.18 | $ 2.94 | $ 2.59 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 30, 2019 | Aug. 01, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Amount of stock repurchase authorization | $ 400,000,000 | |||||||||||
Document Period End Date | Jun. 30, 2019 | |||||||||||
Treasury Stock, Shares, Acquired | 9.8 | |||||||||||
Payments for Repurchase of Common Stock | $ 361,500,000 | $ 74,900,000 | ||||||||||
Amount remaining under stock repurchase authorization | $ 375,500,000 | |||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||
Cash dividends paid per common share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||
Subsequent Event [Member] | ||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Amount of stock repurchase authorization | $ 1,000,000,000 | |||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 0.15 | |||||||||||
Forestar Group [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Equity Securities Registered, Value | $ 500,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Nov. 30, 2018$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)grant_recipient$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | Jun. 30, 2019 | ||
Performance Shares [Member] | November Two Thousand Eighteen Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted in the period | shares | 360,000 | ||
Award vesting period | 3 years | ||
Fair value of equity awards on the date of grant (in US$ per unit) | $ / shares | $ 37.75 | ||
Compensation expense | $ 1.5 | $ 4.6 | |
Performance Shares [Member] | November Two Thousand Eighteen Grant [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total units granted that vest in the period | 10.00% | ||
Performance Shares [Member] | November Two Thousand Eighteen Grant [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total units granted that vest in the period | 200.00% | ||
Restricted Stock Units (RSUs) [Member] | November Two Thousand Eighteen Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted in the period | shares | 1,800,000 | ||
Fair value of equity awards on the date of grant (in US$ per unit) | $ / shares | $ 33.75 | ||
Compensation expense | $ 3 | $ 10.4 | |
RSU Grant Recipients | grant_recipient | 900 | ||
Restricted Stock Units (RSUs) [Member] | November Two Thousand Eighteen Grant [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | November Two Thousand Eighteen Grant [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Retirement Eligible [Member] | Restricted Stock Units (RSUs) [Member] | November Two Thousand Eighteen Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 3.5 |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in warranty liability | ||||
Warranty liability, beginning of period | $ 213.9 | $ 162.6 | $ 202 | $ 143.7 |
Warranties issued | 25.8 | 23.6 | 64.7 | 59.3 |
Changes in liability for pre-existing warranties | 9.4 | 8.1 | 20.9 | 25.9 |
Settlements made | (20.1) | (17.9) | (58.6) | (52.5) |
Warranty liability, end of period | $ 229 | $ 176.4 | $ 229 | $ 176.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies [Abstract] | ||||||
Liabilities for various claims, complaints and other legal actions | $ 440.9 | $ 407.8 | $ 440.9 | $ 407.8 | $ 408.1 | $ 420.6 |
Construction defect portion of loss contingency accrual, percentage | 99.00% | 99.00% | 99.00% | |||
Expenses related to legal claims | $ 19.9 | 47.5 | ||||
Estimated insurance recoveries related to legal claims | $ 69.8 | 56 | 69.8 | 56 | $ 54.6 | |
Surety bonds | 1,600 | 1,600 | ||||
Outstanding letters of credit | 162.3 | 162.3 | ||||
Standby Letters of Credit [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 1.7 | 1.7 | ||||
Forestar Consolidated [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 84 | 84 | ||||
Remaining purchase price of land under option contracts | 1,000 | 1,000 | ||||
Forestar Consolidated [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Remaining purchase price of land under option contracts | 52.8 | 52.8 | ||||
Home Building [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 493.1 | 493.1 | ||||
Remaining purchase price of land under option contracts | 7,200 | 7,200 | ||||
Home Building [Member] | Line of Credit [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 138.9 | 138.9 | ||||
Home Building [Member] | Standby Letters of Credit [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 1.5 | 1.5 | ||||
Home Building [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Remaining purchase price of land under option contracts | 95.6 | 95.6 | ||||
Home Building [Member] | Cash [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 480.4 | 480.4 | ||||
Home Building [Member] | Notes Payable, Other Payables [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 12.7 | 12.7 | ||||
Forestar Group [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Increase (Decrease) in Earnest Money Deposits Outstanding | 10.8 | 2.9 | 27.6 | 16.9 | ||
Increase (Decrease) in Prepaid Expenses, Other | 4.7 | $ 4.6 | 8.4 | $ 12.8 | ||
Forestar Group [Member] | Line of Credit [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 21.7 | 21.7 | ||||
Forestar Group [Member] | Standby Letters of Credit [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | $ 0.2 | $ 0.2 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal Claims and Insurance (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Rollforward of reserves for legal claims | ||
Reserves for legal claims, beginning of period | $ 408.1 | $ 420.6 |
Increase in reserves | 45.5 | 47.2 |
Payments | (12.7) | (60) |
Reserves for legal claims, end of period | $ 440.9 | $ 407.8 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Other assets | ||||||
Earnest money and refundable deposits | $ 522.7 | $ 445.2 | ||||
Insurance receivables | 69.8 | 54.6 | $ 56 | |||
Other receivables | 107.5 | 81.7 | ||||
Prepaid assets | 33.9 | 36.9 | ||||
Rental properties | 35.1 | 39.2 | ||||
Contract Asset Insurance Renewals | 36.3 | 0 | ||||
Other | 84.6 | 55.3 | ||||
Other assets | 889.9 | 712.9 | ||||
Accrued expenses and other liabilities | ||||||
Reserves for legal claims | 440.9 | 408.1 | 407.8 | $ 420.6 | ||
Employee compensation and related liabilities | 254.9 | 252.5 | ||||
Warranty liability | 229 | $ 213.9 | 202 | $ 176.4 | $ 162.6 | $ 143.7 |
Accrued interest | 36.2 | 14.8 | ||||
Federal and state income tax liabilities | 52.2 | 35.2 | ||||
Inventory related accruals | 49.5 | 45.5 | ||||
Customer deposits | 67.4 | 58.1 | ||||
Accrued property taxes | 27.3 | 38 | ||||
Other | 120.1 | 73.3 | ||||
Accrued expenses and other liabilities | 1,277.5 | 1,127.5 | ||||
Other Segments [Member] | ||||||
Other assets | ||||||
Other assets | 40.2 | 0.9 | ||||
Accrued expenses and other liabilities | ||||||
Accrued expenses and other liabilities | $ 19.7 | $ 9.9 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 954.9 | $ 796.4 |
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities collateralized by residential real estate | 3.9 | 3.9 |
Mortgage loans held for sale | 950.3 | 792.4 |
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 21.5 | 10.5 |
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Forward sales of MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | (14.9) | 3.3 |
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Best-efforts and mandatory commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | (0.6) | 0.2 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities collateralized by residential real estate | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Forward sales of MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Best-efforts and mandatory commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities collateralized by residential real estate | 0 | 0 |
Mortgage loans held for sale | 941.1 | 784.6 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 21.5 | 10.5 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward sales of MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | (14.9) | 3.3 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Best-efforts and mandatory commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | (0.6) | 0.2 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities collateralized by residential real estate | 3.9 | 3.9 |
Mortgage loans held for sale | 9.2 | 7.8 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Forward sales of MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Best-efforts and mandatory commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate derivatives | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) $ in Millions | 9 Months Ended | |
Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Document Period End Date | Jun. 30, 2019 | |
Mortgage loans held for sale | $ 954.9 | $ 796.4 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 0 | 0 |
Other mortgage loans | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Inventories [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Assets Held-for-sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 1 | 2.9 |
Other mortgage loans | 1 | 1 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Inventories [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 14.6 | 4.4 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Assets Held-for-sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 1.4 |
Home Building [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 0 | $ 0 |
Measurement Input, Discount Rate [Member] | Home Building [Member] | Inventories [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 0.14 | |
Measurement Input, Discount Rate [Member] | Home Building [Member] | Inventories [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 0.16 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Reflected at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 954.9 | $ 796.4 |
Cash and cash equivalents, Carrying value | 864.2 | 1,473.1 |
Restricted Cash and Cash Equivalents | 21.1 | 32.9 |
Notes payable | 3,450.6 | 3,203.5 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 864.2 | 1,473.1 |
Restricted cash, Fair value | 21.1 | 32.9 |
Notes payable, Fair value | 3,556.5 | 3,244.8 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 864.2 | 1,473.1 |
Restricted cash, Fair value | 21.1 | 32.9 |
Notes payable, Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Restricted cash, Fair value | 0 | 0 |
Notes payable, Fair value | 2,512.5 | 2,602.6 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Restricted cash, Fair value | 0 | 0 |
Notes payable, Fair value | $ 1,044 | $ 642.2 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)a | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Inventory, Real Estate, Land and Land Development Costs | $ 5,811.4 | $ 5,172.4 | |
Immediate Family Member of Management or Principal Owner [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | $ 77.5 | ||
Area of Land | a | 119 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 2.55% | ||
Inventory, Real Estate, Land and Land Development Costs | 77.5 | ||
Land under Purchase Options, Recorded | $ 77.5 | ||
Related Party Transaction, Rate | 16.00% | ||
Forestar Group [Member] | |||
Related Party Transaction [Line Items] | |||
Inventory, Real Estate, Land and Land Development Costs | $ 988.7 | $ 463.1 | |
Forestar Group [Member] | Senior Note Member Forty One [Member] | |||
Related Party Transaction [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | ||||||||
Cash and cash equivalents | $ 864.2 | $ 1,473.1 | ||||||
Restricted cash | 21.1 | 32.9 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Inventories | 11,702.3 | 10,395 | ||||||
Mortgage loans held for sale | 954.9 | 796.4 | ||||||
Deferred income taxes, net | 173.9 | 194 | ||||||
Property and equipment, net | 454.2 | 401.1 | ||||||
Other assets | 889.9 | 712.9 | ||||||
Goodwill | 163.5 | 109.2 | ||||||
Intercompany receivables | 0 | 0 | ||||||
Total assets | 15,224 | 14,114.6 | ||||||
LIABILITIES & EQUITY | ||||||||
Accounts payable and other liabilities | 1,958.7 | 1,752.2 | ||||||
Intercompany payables | 0 | 0 | ||||||
Notes payable | 3,450.6 | 3,203.5 | ||||||
Total liabilities | 5,409.3 | 4,955.7 | ||||||
Stockholders’ equity | 9,642.4 | 8,984.4 | ||||||
Noncontrolling interests | 172.3 | 174.5 | ||||||
Total equity | 9,814.7 | $ 9,534 | $ 9,298.2 | 9,158.9 | $ 8,769.9 | $ 8,371.9 | $ 8,055.4 | $ 7,747.6 |
Total liabilities and equity | 15,224 | 14,114.6 | ||||||
Eliminations [Member] | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Restricted cash | 0 | 0 | ||||||
Investment in subsidiaries | (7,055.5) | (6,344.9) | ||||||
Inventories | (28.4) | (11.2) | ||||||
Mortgage loans held for sale | 0 | 0 | ||||||
Deferred income taxes, net | 3.6 | 2.5 | ||||||
Property and equipment, net | (4.4) | (6.9) | ||||||
Other assets | (83.7) | (45.2) | ||||||
Goodwill | 0 | 0 | ||||||
Intercompany receivables | (270.4) | (273.5) | ||||||
Total assets | (7,438.8) | (6,679.2) | ||||||
LIABILITIES & EQUITY | ||||||||
Accounts payable and other liabilities | (92.4) | (49.1) | ||||||
Intercompany payables | (270.4) | (273.5) | ||||||
Notes payable | 0 | 0 | ||||||
Total liabilities | (362.8) | (322.6) | ||||||
Stockholders’ equity | (7,078.5) | (6,355.6) | ||||||
Noncontrolling interests | 2.5 | (1) | ||||||
Total equity | (7,076) | (6,356.6) | ||||||
Total liabilities and equity | (7,438.8) | (6,679.2) | ||||||
D.R. Horton, Inc. [Member] | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | 412.7 | 908.1 | ||||||
Restricted cash | 7.7 | 6.6 | ||||||
Investment in subsidiaries | 7,055.5 | 6,344.9 | ||||||
Inventories | 4,315.7 | 4,037.1 | ||||||
Mortgage loans held for sale | 0 | 0 | ||||||
Deferred income taxes, net | 61.4 | 69.2 | ||||||
Property and equipment, net | 124.8 | 111.2 | ||||||
Other assets | 382.2 | 306.6 | ||||||
Goodwill | 0 | 0 | ||||||
Intercompany receivables | 58.7 | 246.2 | ||||||
Total assets | 12,418.7 | 12,029.9 | ||||||
LIABILITIES & EQUITY | ||||||||
Accounts payable and other liabilities | 646.2 | 590.8 | ||||||
Intercompany payables | 0 | 0 | ||||||
Notes payable | 2,107.2 | 2,443.9 | ||||||
Total liabilities | 2,753.4 | 3,034.7 | ||||||
Stockholders’ equity | 9,665.3 | 8,995.2 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total equity | 9,665.3 | 8,995.2 | ||||||
Total liabilities and equity | 12,418.7 | 12,029.9 | ||||||
Guarantor Subsidiaries [Member] | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | 115.3 | 158.7 | ||||||
Restricted cash | 2.1 | 2 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Inventories | 6,271.7 | 5,824.1 | ||||||
Mortgage loans held for sale | 0 | 0 | ||||||
Deferred income taxes, net | 90.5 | 105 | ||||||
Property and equipment, net | 76.2 | 66.1 | ||||||
Other assets | 440.7 | 361.3 | ||||||
Goodwill | 134.3 | 80 | ||||||
Intercompany receivables | 211.7 | 27.3 | ||||||
Total assets | 7,342.5 | 6,624.5 | ||||||
LIABILITIES & EQUITY | ||||||||
Accounts payable and other liabilities | 1,074.1 | 1,000.4 | ||||||
Intercompany payables | 0 | 0 | ||||||
Notes payable | 6.7 | 2.1 | ||||||
Total liabilities | 1,080.8 | 1,002.5 | ||||||
Stockholders’ equity | 6,261.7 | 5,622 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total equity | 6,261.7 | 5,622 | ||||||
Total liabilities and equity | 7,342.5 | 6,624.5 | ||||||
Non-Guarantor Subsidiaries [Member] | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | 336.2 | 406.3 | ||||||
Restricted cash | 11.3 | 24.3 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Inventories | 1,143.3 | 545 | ||||||
Mortgage loans held for sale | 954.9 | 796.4 | ||||||
Deferred income taxes, net | 18.4 | 17.3 | ||||||
Property and equipment, net | 257.6 | 230.7 | ||||||
Other assets | 150.7 | 90.2 | ||||||
Goodwill | 29.2 | 29.2 | ||||||
Intercompany receivables | 0 | 0 | ||||||
Total assets | 2,901.6 | 2,139.4 | ||||||
LIABILITIES & EQUITY | ||||||||
Accounts payable and other liabilities | 330.8 | 210.1 | ||||||
Intercompany payables | 270.4 | 273.5 | ||||||
Notes payable | 1,336.7 | 757.5 | ||||||
Total liabilities | 1,937.9 | 1,241.1 | ||||||
Stockholders’ equity | 793.9 | 722.8 | ||||||
Noncontrolling interests | 169.8 | 175.5 | ||||||
Total equity | 963.7 | 898.3 | ||||||
Total liabilities and equity | $ 2,901.6 | $ 2,139.4 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidating Statement of Operations | ||||||||
Revenues | $ 4,906.3 | $ 4,435.3 | $ 12,554 | $ 11,562.9 | ||||
Cost of sales | 3,831.6 | 3,397.2 | 9,839.4 | 8,939 | ||||
Selling, general and administrative expense | 480 | 434.9 | 1,327 | 1,219.9 | ||||
Gain on sale of assets | (22.6) | 0 | (53.9) | (14.5) | ||||
Other (income) expense | (9.4) | (13) | (23.7) | (33.8) | ||||
Income before income taxes | 626.7 | 616.2 | 1,465.2 | 1,452.3 | ||||
Income tax expense | 153.1 | 162.5 | 350.5 | 458.9 | ||||
Equity in net income of subsidiaries, net of tax | 0 | 0 | 0 | 0 | ||||
Net income | 473.6 | $ 354.4 | $ 286.7 | 453.7 | $ 350.8 | $ 188.8 | 1,114.7 | 993.4 |
Net income (loss) attributable to noncontrolling interests | (1.2) | (0.1) | 1.5 | (0.7) | ||||
Net Income (Loss) Attributable to Parent | 474.8 | 453.8 | 1,113.2 | 994.1 | ||||
Eliminations [Member] | ||||||||
Consolidating Statement of Operations | ||||||||
Revenues | (73.1) | (8.9) | (141.8) | (22.4) | ||||
Cost of sales | (67.3) | (5.6) | (127.8) | (16.5) | ||||
Selling, general and administrative expense | 0 | 0 | 0 | 0 | ||||
Gain on sale of assets | 0 | (2.5) | 0 | |||||
Other (income) expense | 0 | 0 | 0 | 0 | ||||
Income before income taxes | (5.8) | (3.3) | (11.5) | (5.9) | ||||
Income tax expense | (1.5) | 0 | (2.8) | (1) | ||||
Equity in net income of subsidiaries, net of tax | (314.6) | (336.2) | (764.2) | (747.5) | ||||
Net income | (318.9) | (339.5) | (772.9) | (752.4) | ||||
Net income (loss) attributable to noncontrolling interests | 0.7 | 3.4 | 3.4 | 3.4 | ||||
Net Income (Loss) Attributable to Parent | (319.6) | (342.9) | (776.3) | (755.8) | ||||
D.R. Horton, Inc. [Member] | ||||||||
Consolidating Statement of Operations | ||||||||
Revenues | 1,939.3 | 1,630.8 | 4,850.2 | 4,082.7 | ||||
Cost of sales | 1,529.6 | 1,293.3 | 3,836.6 | 3,235 | ||||
Selling, general and administrative expense | 191.8 | 174.4 | 543.3 | 483.4 | ||||
Gain on sale of assets | 0 | (2) | 0 | |||||
Other (income) expense | (0.9) | (1.5) | (2.9) | (3.5) | ||||
Income before income taxes | 218.8 | 164.6 | 475.2 | 367.8 | ||||
Income tax expense | 53.7 | 43.8 | 114.2 | 117 | ||||
Equity in net income of subsidiaries, net of tax | 314.6 | 336.2 | 764.2 | 747.5 | ||||
Net income | 479.7 | 457 | 1,125.2 | 998.3 | ||||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net Income (Loss) Attributable to Parent | 479.7 | 457 | 1,125.2 | 998.3 | ||||
Guarantor Subsidiaries [Member] | ||||||||
Consolidating Statement of Operations | ||||||||
Revenues | 2,820.9 | 2,693.9 | 7,322.3 | 7,149 | ||||
Cost of sales | 2,286.9 | 2,092.5 | 5,957.8 | 5,659.4 | ||||
Selling, general and administrative expense | 193.4 | 174.1 | 523.9 | 490.6 | ||||
Gain on sale of assets | (0.2) | (0.2) | 0 | |||||
Other (income) expense | (0.5) | 0.5 | (1.3) | (0.2) | ||||
Income before income taxes | 341.3 | 426.8 | 842.1 | 999.2 | ||||
Income tax expense | 84.1 | 113.6 | 202.3 | 318.7 | ||||
Equity in net income of subsidiaries, net of tax | 0 | 0 | 0 | 0 | ||||
Net income | 257.2 | 313.2 | 639.8 | 680.5 | ||||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net Income (Loss) Attributable to Parent | 257.2 | 313.2 | 639.8 | 680.5 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||||
Consolidating Statement of Operations | ||||||||
Revenues | 219.2 | 119.5 | 523.3 | 353.6 | ||||
Cost of sales | 82.4 | 17 | 172.8 | 61.1 | ||||
Selling, general and administrative expense | 94.8 | 86.4 | 259.8 | 245.9 | ||||
Gain on sale of assets | (22.4) | (49.2) | (14.5) | |||||
Other (income) expense | (8) | (12) | (19.5) | (30.1) | ||||
Income before income taxes | 72.4 | 28.1 | 159.4 | 91.2 | ||||
Income tax expense | 16.8 | 5.1 | 36.8 | 24.2 | ||||
Equity in net income of subsidiaries, net of tax | 0 | 0 | 0 | 0 | ||||
Net income | 55.6 | 23 | 122.6 | 67 | ||||
Net income (loss) attributable to noncontrolling interests | (1.9) | (3.5) | (1.9) | (4.1) | ||||
Net Income (Loss) Attributable to Parent | $ 57.5 | $ 26.5 | $ 124.5 | $ 71.1 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | |||||
Net cash provided by (used in) operating activities | $ 80.7 | $ 306.5 | |||
INVESTING ACTIVITIES | |||||
Expenditures for property and equipment | (105.3) | (54) | |||
Proceeds from sale of assets | 143.8 | 261.1 | |||
Expenditures related to multi-family rental properties | (56.3) | (56.1) | |||
Return of investment in unconsolidated entities | 4.4 | 15.4 | |||
Net principal increase of other mortgage loans and real estate owned | (2) | (0.8) | |||
Intercompany advances | 0 | 0 | |||
Payments related to business acquisitions | 310.9 | 158.1 | |||
Net cash (used in) provided by investing activities | (326.3) | 7.5 | |||
FINANCING ACTIVITIES | |||||
Proceeds from notes payable | 2,528.2 | 2,164.3 | |||
Repayment of notes payable | (2,536.1) | (2,179.5) | |||
Advances (payments) on mortgage repurchase facility, net | 158.8 | 106.3 | |||
Intercompany advances | 0 | 0 | |||
Proceeds from stock associated with certain employee benefit plans | 26.8 | 36.2 | |||
Cash paid for shares withheld for taxes | $ (15.4) | $ (4.1) | $ (10.3) | (19.5) | (10.3) |
Cash dividends paid | (167.9) | (141.3) | |||
Repurchases of common stock | (361.5) | (74.9) | |||
Distributions to noncontrolling interests, net | (3.9) | (2.2) | |||
Net cash (used in) provided by financing activities | (375.1) | (101.4) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (620.7) | 212.6 | |||
Cash, cash equivalents and restricted cash at beginning of period | 1,506 | 1,024.3 | 1,506 | 1,024.3 | |
Cash, cash equivalents and restricted cash at end of period | 885.3 | 1,236.9 | |||
Eliminations [Member] | |||||
OPERATING ACTIVITIES | |||||
Net cash provided by (used in) operating activities | (78.7) | (62) | |||
INVESTING ACTIVITIES | |||||
Expenditures for property and equipment | 0 | 0 | |||
Proceeds from sale of assets | 0 | 0 | |||
Expenditures related to multi-family rental properties | 0 | 5 | |||
Return of investment in unconsolidated entities | 0 | 0 | |||
Net principal increase of other mortgage loans and real estate owned | 0 | 0 | |||
Intercompany advances | (497) | (615.7) | |||
Payments related to business acquisitions | 0 | 0 | |||
Net cash (used in) provided by investing activities | (497) | (610.7) | |||
FINANCING ACTIVITIES | |||||
Proceeds from notes payable | 0 | 0 | |||
Repayment of notes payable | 0 | 0 | |||
Advances (payments) on mortgage repurchase facility, net | 0 | 0 | |||
Intercompany advances | 497 | 615.7 | |||
Proceeds from stock associated with certain employee benefit plans | 0 | 0 | |||
Cash paid for shares withheld for taxes | 0 | 0 | |||
Cash dividends paid | 78.7 | 57 | |||
Repurchases of common stock | 0 | 0 | |||
Distributions to noncontrolling interests, net | 0 | 0 | |||
Net cash (used in) provided by financing activities | 575.7 | 672.7 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | |||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |||
D.R. Horton, Inc. [Member] | |||||
OPERATING ACTIVITIES | |||||
Net cash provided by (used in) operating activities | 210.9 | (17.9) | |||
INVESTING ACTIVITIES | |||||
Expenditures for property and equipment | (37.9) | (29.1) | |||
Proceeds from sale of assets | 10.4 | 0 | |||
Expenditures related to multi-family rental properties | 0 | 0 | |||
Return of investment in unconsolidated entities | 0 | 0 | |||
Net principal increase of other mortgage loans and real estate owned | 0 | 0 | |||
Intercompany advances | 497 | 615.7 | |||
Payments related to business acquisitions | 302.6 | 560 | |||
Net cash (used in) provided by investing activities | 166.9 | 26.6 | |||
FINANCING ACTIVITIES | |||||
Proceeds from notes payable | 2,100 | 2,162.2 | |||
Repayment of notes payable | (2,450) | (2,165.2) | |||
Advances (payments) on mortgage repurchase facility, net | 0 | 0 | |||
Intercompany advances | 0 | 0 | |||
Proceeds from stock associated with certain employee benefit plans | 26.8 | 36.2 | |||
Cash paid for shares withheld for taxes | (19.5) | (10.3) | |||
Cash dividends paid | (167.9) | (141.3) | |||
Repurchases of common stock | (361.5) | (74.9) | |||
Distributions to noncontrolling interests, net | 0 | 0 | |||
Net cash (used in) provided by financing activities | (872.1) | (193.3) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (494.3) | (184.6) | |||
Cash, cash equivalents and restricted cash at beginning of period | 914.7 | 788.7 | 914.7 | 788.7 | |
Cash, cash equivalents and restricted cash at end of period | 420.4 | 604.1 | |||
Guarantor Subsidiaries [Member] | |||||
OPERATING ACTIVITIES | |||||
Net cash provided by (used in) operating activities | 467.4 | 640.4 | |||
INVESTING ACTIVITIES | |||||
Expenditures for property and equipment | (22.6) | (21.5) | |||
Proceeds from sale of assets | 0 | 0 | |||
Expenditures related to multi-family rental properties | 0 | 0 | |||
Return of investment in unconsolidated entities | 0 | 0 | |||
Net principal increase of other mortgage loans and real estate owned | 0 | 0 | |||
Intercompany advances | 0 | 0 | |||
Payments related to business acquisitions | 0 | 0 | |||
Net cash (used in) provided by investing activities | (22.6) | (21.5) | |||
FINANCING ACTIVITIES | |||||
Proceeds from notes payable | 0 | 0 | |||
Repayment of notes payable | (1.1) | (3.7) | |||
Advances (payments) on mortgage repurchase facility, net | 0 | 0 | |||
Intercompany advances | (487) | (660.6) | |||
Proceeds from stock associated with certain employee benefit plans | 0 | 0 | |||
Cash paid for shares withheld for taxes | 0 | 0 | |||
Cash dividends paid | 0 | 0 | |||
Repurchases of common stock | 0 | 0 | |||
Distributions to noncontrolling interests, net | 0 | 0 | |||
Net cash (used in) provided by financing activities | (488.1) | (664.3) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (43.3) | (45.4) | |||
Cash, cash equivalents and restricted cash at beginning of period | 160.7 | 156 | 160.7 | 156 | |
Cash, cash equivalents and restricted cash at end of period | 117.4 | 110.6 | |||
Non-Guarantor Subsidiaries [Member] | |||||
OPERATING ACTIVITIES | |||||
Net cash provided by (used in) operating activities | (518.9) | (254) | |||
INVESTING ACTIVITIES | |||||
Expenditures for property and equipment | (44.8) | (3.4) | |||
Proceeds from sale of assets | 133.4 | 261.1 | |||
Expenditures related to multi-family rental properties | (56.3) | (61.1) | |||
Return of investment in unconsolidated entities | 4.4 | 15.4 | |||
Net principal increase of other mortgage loans and real estate owned | (2) | (0.8) | |||
Intercompany advances | 0 | 0 | |||
Payments related to business acquisitions | 8.3 | 401.9 | |||
Net cash (used in) provided by investing activities | 26.4 | 613.1 | |||
FINANCING ACTIVITIES | |||||
Proceeds from notes payable | 428.2 | 2.1 | |||
Repayment of notes payable | (85) | (10.6) | |||
Advances (payments) on mortgage repurchase facility, net | 158.8 | 106.3 | |||
Intercompany advances | (10) | 44.9 | |||
Proceeds from stock associated with certain employee benefit plans | 0 | 0 | |||
Cash paid for shares withheld for taxes | 0 | 0 | |||
Cash dividends paid | (78.7) | (57) | |||
Repurchases of common stock | 0 | 0 | |||
Distributions to noncontrolling interests, net | (3.9) | (2.2) | |||
Net cash (used in) provided by financing activities | 409.4 | 83.5 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (83.1) | 442.6 | |||
Cash, cash equivalents and restricted cash at beginning of period | $ 430.6 | $ 79.6 | 430.6 | 79.6 | |
Cash, cash equivalents and restricted cash at end of period | $ 347.5 | $ 522.2 |