Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 22, 2020 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HORTON D R INC /DE/ | |
Entity Filer Category | Large Accelerated Filer | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Entity File Number | 1-14122 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 366,363,723 | |
Entity Central Index Key | 0000882184 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | DHI | |
Security Exchange Name | NYSE | |
Senior Notes due 2023 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.750% Senior Notes due 2023 | |
Trading Symbol | DHI 23A | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 1,583.3 | $ 1,494.3 |
Restricted cash | 12.6 | 19.7 |
Total cash, cash equivalents and restricted cash | 1,595.9 | 1,514 |
Inventories: | ||
Construction in progress and finished homes | 5,580.1 | 5,245 |
Residential land and lots — developed and under development | 6,214.1 | 5,939.4 |
Land held for development | 82.1 | 77.8 |
Land held for sale | 22.9 | 19.8 |
Total inventories | 11,899.2 | 11,282 |
Mortgage loans held for sale | 1,025.1 | 1,072 |
Deferred income taxes, net of valuation allowance of $18.3 million and $18.7 million at December 31, 2019 and September 30, 2019, respectively | 154.1 | 163.1 |
Property and equipment, net | 563.4 | 499.2 |
Other assets | 921.7 | 912.8 |
Goodwill | 163.5 | 163.5 |
Total assets | 16,322.9 | 15,606.6 |
LIABILITIES | ||
Accounts payable | 659.3 | 634 |
Accrued expenses and other liabilities | 1,377.4 | 1,278.1 |
Notes payable | 3,783.3 | 3,399.4 |
Total liabilities | 5,820 | 5,311.5 |
Commitments and contingencies (Note L) | ||
EQUITY | ||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 1,000,000,000 shares authorized, 393,014,557 shares issued and 366,273,190 shares outstanding at December 31, 2019 and 392,172,821 shares issued and 368,431,454 shares outstanding at September 30, 2019 | 3.9 | 3.9 |
Additional paid-in capital | 3,182 | 3,179.1 |
Retained earnings | 8,006.8 | 7,640.1 |
Treasury stock, 26,741,367 shares and 23,741,367 shares at December 31, 2019 and September 30, 2019, respectively, at cost | (965.3) | (802.2) |
Stockholders’ equity | 10,227.4 | 10,020.9 |
Noncontrolling interests | 275.5 | 274.2 |
Total equity | 10,502.9 | 10,295.1 |
Total liabilities and equity | $ 16,322.9 | $ 15,606.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
ASSETS | ||
Valuation allowance for deferred income taxes | $ 18.3 | $ 18.7 |
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 | 393,014,557 | 392,172,821 |
Common Stock, Shares, Outstanding | 366,273,190 | 368,431,454 |
EQUITY | ||
Treasury Stock, Shares | 26,741,367 | 23,741,367 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 4,020.7 | $ 3,519 |
Cost of Revenue | 3,084.2 | 2,751.1 |
Selling, general and administrative expense | 455.8 | 402.8 |
Gain on sale of assets | (31.1) | (2) |
Other (income) expense | (11.5) | (8.6) |
Income before income taxes | 523.3 | 375.7 |
Income tax expense | 90.8 | 89 |
Net income | 432.5 | 286.7 |
Net income (loss) attributable to noncontrolling interests | 1.2 | (0.5) |
Net income attributable to D.R. Horton, Inc. | $ 431.3 | $ 287.2 |
Basic net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 1.17 | $ 0.77 |
Weighted average number of common shares | 368.3 | 375.1 |
Diluted net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 1.16 | $ 0.76 |
Adjusted weighted average number of common shares | 373.4 | 380.1 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity Consolidated Statements of Total Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
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 | ||||
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 ($0.175 per share) | (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, 2019 | 10,295.1 | 3.9 | 3,179.1 | 7,640.1 | (802.2) | 274.2 |
Net income | 432.5 | 0 | 0 | 431.3 | 0 | 1.2 |
Exercise of stock options | 4.1 | 0 | 4.1 | |||
Stock issued under employee incentive plans | 0 | |||||
Cash paid for shares withheld for taxes | (17.3) | 0 | 17.3 | 0 | 0 | 0 |
Stock-based compensation expense | 16.6 | 16.6 | ||||
Cash dividends declared ($0.175 per share) | (64.6) | (64.6) | ||||
Repurchases of common stock | (163.1) | (163.1) | ||||
Distributions to noncontrolling interests | (0.4) | 0.4 | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests | 0 | (0.5) | 0.5 | |||
Ending Balances at Dec. 31, 2019 | $ 10,502.9 | $ 3.9 | $ 3,182 | $ 8,006.8 | $ (965.3) | $ 275.5 |
Consolidated Statements of To_2
Consolidated Statements of Total Equity Consolidated Statements of Total Equity (Parenthetical) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balances, shares | 368,431,454 | |
Ending Balances, shares | 366,273,190 | |
Common Stock [Member] | ||
Beginning Balances, shares | 368,431,454 | 376,261,635 |
Exercise of stock options | 258,800 | 806,817 |
Stock issued under employee benefit plans | 582,936 | 273,608 |
Repurchases of common stock | (3,000,000) | (4,100,000) |
Ending Balances, shares | 366,273,190 | 373,242,060 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 432.5 | $ 286.7 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 19 | 16.9 |
Amortization of discounts and fees | 3.1 | 2.6 |
Stock-based compensation expense | 16.6 | 18.1 |
Equity in earnings of unconsolidated entities | (0.5) | (0.6) |
Distributions of earnings of unconsolidated entities | 0 | 0.5 |
Deferred income taxes | 7.2 | 3.9 |
Inventory and land option charges | 3.8 | 8 |
Gain on sale of assets | (31.1) | (2) |
Changes in operating assets and liabilities: | ||
Increase in construction in progress and finished homes | (334.8) | (500.3) |
Increase in residential land and lots – developed, under development, held for development and held for sale | (373.1) | (435.9) |
Decrease (increase) in other assets | 2 | (34) |
Net decrease in mortgage loans held for sale | 46.9 | 174.2 |
Increase in accounts payable, accrued expenses and other liabilities | 94.6 | 88.8 |
Net cash (used in) provided by operating activities | (113.8) | (373.1) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (21.6) | (20.2) |
Proceeds from sale of assets | 62.8 | 10.4 |
Expenditures related to rental properties | (59.6) | (11.4) |
Return of investment in unconsolidated entities | 1.9 | 4.4 |
Net principal increase of other mortgage loans and real estate owned | (0.6) | (0.6) |
Payments related to business acquisitions | (0.7) | (293) |
Net cash (used in) provided by investing activities | (17.8) | (310.4) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 495.7 | 578.3 |
Repayment of notes payable | 0 | (276.1) |
Payments on mortgage repurchase facility, net | (38.6) | (163.8) |
Proceeds from stock associated with certain employee benefit plans | 4.1 | 8.6 |
Cash paid for shares withheld for taxes | (17.3) | (4.1) |
Cash dividends paid | (64.6) | (56) |
Repurchases of common stock | (163.1) | (140.6) |
Distributions to noncontrolling interests, net | (0.4) | (0.5) |
Proceeds from (Payments for) Other Financing Activities | (2.3) | 0 |
Net cash (used in) provided by financing activities | 213.5 | (54.2) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 81.9 | (737.7) |
Cash, cash equivalents and restricted cash at beginning of period | 1,514 | 1,506 |
Cash, cash equivalents and restricted cash at end of period | 1,595.9 | 768.3 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
Stock issued under employee incentive plans | 31.8 | 9.4 |
Capital Expenditures Incurred but Not yet Paid | 7.7 | 15.2 |
Accrual for holdback payment related to acquisition | $ 9.5 | $ 27.7 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 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 65% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 35% 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, 2019 , 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, 2019 . Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. At December 31, 2019 , the Company reclassified its single-family rental properties from other assets to property and equipment in its homebuilding segment. Reclassification of the prior period amount resulted in a $37.0 million decrease in other assets with a corresponding increase in property and equipment at September 30, 2019 . This reclassification had no effect on the Company’s consolidated financial position or results of operations. 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 months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020 or subsequent periods. Adoption of New Accounting Standard In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 was effective for the Company beginning October 1, 2019 and did not have a material impact on its consolidated financial position, results of operations or cash flows. As a result of the adoption of this standard on October 1, 2019, the Company recorded right of use assets of $39.0 million and lease liabilities of $40.3 million . Lease right of use assets are included in other assets and lease liabilities are included in accrued expenses and other liabilities in the consolidated balance sheet. Pending Accounting Standards 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. In December 2019, the FASB issued ASU 2019-12 related to simplifying the accounting for income taxes. The guidance is effective for the Company beginning October 1, 2021, although early adoption is permitted. The Company is currently evaluating the impact of this guidance, and it is not expected to have a material impact on its consolidated financial position, results of operations and cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 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 90 markets across 29 states. The Company’s operating segments are its 52 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 51 markets across 20 states. Forestar is making significant investments in land acquisition and development to expand its business across a geographically diversified national platform. 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 multi-family 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 four projects under active construction and one project that was substantially complete at December 31, 2019 . In November 2019, DHI Communities sold a multi-family rental property for $61.5 million and recorded a gain on the sale of $31.2 million . At December 31, 2019 and September 30, 2019 , the consolidated balance sheets included $209.8 million and $204.0 million , respectively, of assets owned by 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, 2019 . Financial information relating to the Company’s reporting segments is as follows: December 31, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,152.9 $ 373.3 $ 37.5 $ 19.6 $ — $ — $ 1,583.3 Restricted cash 6.6 — 5.9 0.1 — — 12.6 Inventories: Construction in progress and finished homes 5,603.3 — — — (23.2 ) — 5,580.1 Residential land and lots — developed and under development 5,192.7 1,051.4 — — (32.1 ) 2.1 6,214.1 Land held for development 66.7 15.4 — — — — 82.1 Land held for sale 22.9 — — — — — 22.9 10,885.6 1,066.8 — — (55.3 ) 2.1 11,899.2 Mortgage loans held for sale — — 1,025.1 — — — 1,025.1 Deferred income taxes, net 140.1 11.8 — — 8.2 (6.0 ) 154.1 Property and equipment, net 292.8 0.9 3.1 267.6 (1.0 ) — 563.4 Other assets 864.4 27.1 59.7 46.1 (86.1 ) 10.5 921.7 Goodwill 134.3 — — — — 29.2 163.5 $ 13,476.7 $ 1,479.9 $ 1,131.3 $ 333.4 $ (134.2 ) $ 35.8 $ 16,322.9 Liabilities Accounts payable $ 624.7 $ 19.8 $ 1.4 $ 13.4 $ — $ — $ 659.3 Accrued expenses and other liabilities 1,240.6 172.4 62.3 9.7 (94.5 ) (13.1 ) 1,377.4 Notes payable 2,470.0 462.1 850.2 — — 1.0 3,783.3 $ 4,335.3 $ 654.3 $ 913.9 $ 23.1 $ (94.5 ) $ (12.1 ) $ 5,820.0 ______________ (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, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,043.0 $ 382.8 $ 43.4 $ 25.1 $ — $ — $ 1,494.3 Restricted cash 8.0 — 11.6 0.1 — — 19.7 Inventories: Construction in progress and finished homes 5,249.0 — — — (4.0 ) — 5,245.0 Residential land and lots — developed and under development 4,956.1 1,011.8 — — (31.4 ) 2.9 5,939.4 Land held for development 60.7 17.1 — — — — 77.8 Land held for sale 19.8 — — — — — 19.8 10,285.6 1,028.9 — — (35.4 ) 2.9 11,282.0 Mortgage loans held for sale — — 1,072.0 — — — 1,072.0 Deferred income taxes, net 146.4 17.4 — — 5.1 (5.8 ) 163.1 Property and equipment, net 272.4 2.4 3.2 221.2 — — 499.2 Other assets 826.2 24.2 68.3 71.5 (88.5 ) 11.1 912.8 Goodwill 134.3 — — — — 29.2 163.5 $ 12,715.9 $ 1,455.7 $ 1,198.5 $ 317.9 $ (118.8 ) $ 37.4 $ 15,606.6 Liabilities Accounts payable $ 598.6 $ 16.8 $ 7.0 $ 11.6 $ — $ — $ 634.0 Accrued expenses and other liabilities 1,152.5 169.5 53.0 9.3 (93.6 ) (12.6 ) 1,278.1 Notes payable 2,047.6 460.5 888.9 — — 2.4 3,399.4 $ 3,798.7 $ 646.8 $ 948.9 $ 20.9 $ (93.6 ) $ (10.2 ) $ 5,311.5 ______________ (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. Three Months Ended December 31, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues Home sales $ 3,863.3 $ — $ — $ — $ — $ — $ 3,863.3 Land/lot sales and other 19.7 247.2 — 8.8 (221.2 ) — 54.5 Financial services — — 102.9 — — — 102.9 3,883.0 247.2 102.9 8.8 (221.2 ) — 4,020.7 Cost of sales Home sales (5) 3,051.6 — — — (6.7 ) — 3,044.9 Land/lot sales and other 13.3 216.3 — — (193.4 ) (0.7 ) 35.5 Inventory and land option charges 3.5 0.3 — — — — 3.8 3,068.4 216.6 — — (200.1 ) (0.7 ) 3,084.2 Selling, general and administrative expense 358.4 10.5 77.9 8.8 — 0.2 455.8 Loss (gain) on sale of assets — 0.1 — (31.2 ) — — (31.1 ) Other (income) expense (5.4 ) (2.2 ) (5.5 ) 1.6 — — (11.5 ) Income before income taxes $ 461.6 $ 22.2 $ 30.5 $ 29.6 $ (21.1 ) $ 0.5 $ 523.3 Summary Cash Flow Information Depreciation and amortization $ 16.5 $ 0.1 $ 0.4 $ 1.9 $ — $ 0.1 $ 19.0 Cash (used in) provided by operating activities $ (178.4 ) $ (11.7 ) $ 83.5 $ 3.9 $ (11.1 ) $ — $ (113.8 ) ______________ (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 December 31, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues Home sales $ 3,410.6 $ — $ — $ — $ — $ — $ 3,410.6 Land/lot sales and other 6.7 38.5 — 6.9 (29.0 ) — 23.1 Financial services — — 85.3 — — — 85.3 3,417.3 38.5 85.3 6.9 (29.0 ) — 3,519.0 Cost of sales Home sales (5) 2,729.2 — — — (1.1 ) — 2,728.1 Land/lot sales and other 5.1 30.7 — — (24.4 ) 3.6 15.0 Inventory and land option charges 8.0 — — — — — 8.0 2,742.3 30.7 — — (25.5 ) 3.6 2,751.1 Selling, general and administrative expense 324.7 5.7 65.6 6.7 — 0.1 402.8 Gain on sale of assets (2.0 ) (0.9 ) — — — 0.9 (2.0 ) Other (income) expense (2.0 ) (1.9 ) (3.9 ) (0.8 ) — — (8.6 ) Income before income taxes $ 354.3 $ 4.9 $ 23.6 $ 1.0 $ (3.5 ) $ (4.6 ) $ 375.7 Summary Cash Flow Information Depreciation and amortization $ 14.7 $ 0.1 $ 0.4 $ 1.6 $ — $ 0.1 $ 16.9 Cash (used in) provided by operating activities $ (396.8 ) $ (164.1 ) $ 193.8 $ (1.6 ) $ — $ (4.4 ) $ (373.1 ) ______________ (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. Homebuilding Inventories by Reporting Segment (1) December 31, September 30, (In millions) East $ 1,305.4 $ 1,288.8 Midwest 919.0 836.8 Southeast 2,915.4 2,768.0 South Central 2,703.8 2,533.2 Southwest 612.1 574.4 West 2,195.6 2,056.0 Corporate and unallocated (2) 234.3 228.4 $ 10,885.6 $ 10,285.6 _________________ (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 2019 2018 (In millions) Revenues East $ 520.5 $ 447.5 Midwest 282.6 249.0 Southeast 1,150.6 1,013.9 South Central 958.7 872.5 Southwest 211.0 143.6 West 759.6 690.8 $ 3,883.0 $ 3,417.3 Inventory and Land Option Charges East $ 0.1 $ 1.4 Midwest 0.1 0.3 Southeast 1.4 1.2 South Central 1.5 0.5 Southwest 0.1 0.1 West 0.3 4.5 $ 3.5 $ 8.0 Income before Income Taxes (1) East $ 59.9 $ 38.0 Midwest 18.6 10.6 Southeast 146.3 112.3 South Central 132.6 106.0 Southwest 34.5 17.6 West 69.7 69.8 $ 461.6 $ 354.3 _________________ (1) Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each 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 | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORIES At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. At December 31, 2019 , the Company performed detailed impairment evaluations of communities and land inventories with a combined carrying value of $34.2 million and determined that no communities or land inventories were impaired. Accordingly, no impairment charges were recorded during the three months ended December 31, 2019 compared to $4.2 million of impairment charges recorded in the prior year period. Inventory impairments and the land option charges discussed below are included in cost of sales in the consolidated statements of operations. During the three months ended December 31, 2019 and 2018 , earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $3.8 million in both periods. |
Notes Payable
Notes Payable | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE The Company’s notes payable at their carrying amounts consist of the following: December 31, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 4.0% senior notes due 2020 (1) 499.9 499.6 2.55% senior notes due 2020 (1) 399.1 398.9 4.375% senior notes due 2022 (1) 348.9 348.8 4.75% senior notes due 2023 (1) 299.0 298.9 5.75% senior notes due 2023 (1) 398.4 398.4 2.5% senior notes due 2024 (1) 495.8 — Other secured notes 28.9 103.0 2,470.0 2,047.6 Forestar: Unsecured: Revolving credit facility — — 3.75% convertible senior notes due 2020 (2) 119.0 119.1 8.0% senior notes due 2024 (3) 344.1 343.8 463.1 462.9 Financial Services: Mortgage repurchase facility 850.2 888.9 $ 3,783.3 $ 3,399.4 _______________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $8.6 million and $5.4 million at December 31, 2019 and September 30, 2019 , respectively. (2) Forestar’s 3.75% convertible senior notes due March 2020 include an unamortized fair value adjustment of $1.0 million and $2.4 million at December 31, 2019 and September 30, 2019 , respectively. (3) Debt issuance costs that were deducted from the carrying amount of Forestar’s 8.0% senior notes totaled $5.9 million and $6.2 million at December 31, 2019 and September 30, 2019 , respectively. Homebuilding: The Company has a $1.59 billion senior unsecured homebuilding revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $2.5 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 100% 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 October 2, 2024 . At December 31, 2019 , there were no borrowings outstanding and $141.7 million of letters of credit issued under the revolving credit facility, resulting in available capacity of approximately $1.4 billion . There were no borrowings or repayments under the facility during the three months ended December 31, 2019 . The Company’s homebuilding revolving credit facility imposes restrictions on its operations and activities, including requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if the leverage ratio 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 December 31, 2019 , the Company was in compliance with all of the covenants, limitations and restrictions of its homebuilding revolving credit facility and public debt obligations. D.R. Horton has an automatically effective universal shelf registration statement filed with the Securities and Exchange Commission (SEC) in August 2018 , registering debt and equity securities that the Company may issue from time to time in amounts to be determined. In October 2019 , the Company issued $500 million principal amount of 2.5% senior notes due October 15, 2024 , with interest payable semi-annually. The annual effective interest rate of these notes after giving effect to the amortization of the discount and financing costs is 2.7% . Effective July 30, 2019 , the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities. The authorization has no expiration date. All of the $500 million authorization was remaining at December 31, 2019 . 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. Letters of credit issued under the facility reduce the available borrowing capacity. At December 31, 2019 , there were no borrowings outstanding and $28.7 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $351.3 million . The maturity date of the facility is October 2, 2022 , which can be extended by up to one year on up to two additional occasions, subject to the approval of lenders holding a majority of the commitments. The Forestar 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 December 31, 2019 , Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. At December 31, 2019 , the principal amount of Forestar’s 3.75% convertible senior notes was $118.9 million . Forestar intends to settle these notes in cash upon their maturity on March 1, 2020 , with any excess conversion value to be settled in shares of its common stock. At December 31, 2019 , Forestar was in compliance with all of the limitations and restrictions associated with its senior note obligations. 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. The total capacity of the facility is $900 million , which can be increased to $1.2 billion subject to the availability of additional commitments. In December 2019 , the Company received an additional commitment of $50 million increasing the total capacity of the facility to $950 million . The additional commitment expired on January 26, 2020 . The Company is currently in discussions with its lenders and expects to renew and extend the facility on similar terms prior to its February 21, 2020 maturity date. As of December 31, 2019 , $953.7 million of mortgage loans held for sale with a collateral value of $915.1 million were pledged under the mortgage repurchase facility. DHI Mortgage had an obligation of $850.2 million outstanding under the mortgage repurchase facility at December 31, 2019 at a 3.5% 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 leverage ratio and its minimum required liquidity. These covenants are measured and reported to the lenders monthly. At December 31, 2019 , DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. |
Capitalized Interest
Capitalized Interest | 3 Months Ended |
Dec. 31, 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 three months of fiscal 2020 and 2019 , 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 months ended December 31, 2019 and 2018 : Three Months Ended 2019 2018 (In millions) Capitalized interest, beginning of period $ 180.1 $ 162.7 Interest incurred (1) 37.7 31.7 Interest charged to cost of sales (25.7 ) (25.6 ) Capitalized interest, end of period $ 192.1 $ 168.8 _______________ (1) Interest incurred included interest on the Company's mortgage repurchase facility of $4.7 million and $3.3 million in the three months ended December 31, 2019 and 2018 , respectively, and Forestar interest of $8.7 million and $1.3 million , respectively. |
Property and Equipment (Notes)
Property and Equipment (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT The Company’s property and equipment balances and the related accumulated depreciation at December 31, 2019 and September 30, 2019 are summarized below. These balances include properties related to the operations of DHI Communities, which develops, constructs and owns multi-family residential properties that produce rental income. DHI Communities has four projects under active construction and one project that was substantially complete at December 31, 2019 . December 31, September 30, (In millions) Buildings and improvements (1) (2) $ 350.5 $ 329.4 Multi-family rental properties under construction 64.8 65.2 Single-family rental properties 62.4 37.0 Model home furniture 130.3 128.3 Office furniture and equipment 124.5 128.6 Land (1) (2) 90.7 71.6 Total property and equipment $ 823.2 $ 760.1 Accumulated depreciation (259.8 ) (260.9 ) Property and equipment, net $ 563.4 $ 499.2 _____________ (1) At December 31, 2019 , buildings and improvements included $74.9 million related to completed multi-family rental properties and $61.1 million related to the Company’s oil and gas related assets. Additionally, at December 31, 2019 , land included $57.0 million related to the Company’s multi-family rental operations. (2) At September 30, 2019 , buildings and improvements included $50.7 million related to completed multi-family rental properties and $56.9 million related to the Company’s oil and gas related assets. Additionally, at September 30, 2019 , land included $38.0 million related to the Company’s multi-family rental operations. Depreciation expense was $17.2 million and $15.9 million during the three months ended December 31, 2019 and 2018 , respectively. |
Mortgage Loans
Mortgage Loans | 3 Months Ended |
Dec. 31, 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 December 31, 2019 , mortgage loans held for sale had an aggregate carrying value and aggregate outstanding principal balance of $1.0 billion . At September 30, 2019 , mortgage loans held for sale had an aggregate carrying value of $1.1 billion and an aggregate outstanding principal balance of $1.0 billion . During the three months ended December 31, 2019 and 2018 , mortgage loans originated totaled $2.3 billion and $1.6 billion , respectively, and mortgage loans sold totaled $2.3 billion and $1.8 billion , respectively. The Company had gains on sales of loans and servicing rights of $73.6 million during the three months ended December 31, 2019 compared to $59.9 million in the prior year period. Net gains on sales of loans and servicing rights are included in revenues in the consolidated statements of operations. Approximately 86% of the mortgage loans sold by DHI Mortgage during the three months ended December 31, 2019 were sold to four major financial entities, of which one entity purchased 31% . The Company occasionally 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 December 31, 2019 , the Company had MBS totaling $594.4 million that did not yet have interest rate lock commitments or closed loans created or assigned and recorded a liability of $0.1 million for the fair value of such MBS position. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense for the three months ended December 31, 2019 and 2018 was $90.8 million and $89.0 million , respectively. The effective tax rate was 17.4% for the three months ended December 31, 2019 compared to 23.7% in the prior year period. The effective tax rate for the three months ended December 31, 2019 includes a tax benefit of $32.9 million from the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act). The Act retroactively reinstated the federal energy efficient homes tax credit that expired on December 31, 2017 to homes closed from January 1, 2018 to December 31, 2020 . The effective tax rates for both periods include an expense for state income taxes, reduced by tax benefits related to stock-based compensation. The Company’s deferred tax assets, net of deferred tax liabilities, were $172.4 million at December 31, 2019 compared to $181.8 million at September 30, 2019 . The Company has a valuation allowance of $18.3 million at December 31, 2019 and $18.7 million at September 30, 2019 related to state deferred tax assets for net operating loss (NOL) carryforwards that are more likely than not to expire before being realized. 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 | 3 Months Ended |
Dec. 31, 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 2019 2018 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 431.3 $ 287.2 Denominator: Denominator for basic earnings per share — weighted average common shares 368.3 375.1 Effect of dilutive securities: Employee stock awards 5.1 5.0 Denominator for diluted earnings per share — adjusted weighted average common shares 373.4 380.1 Basic net income per common share attributable to D.R. Horton, Inc. $ 1.17 $ 0.77 Diluted net income per common share attributable to D.R. Horton, Inc. $ 1.16 $ 0.76 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 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. On September 30, 2019 , Forestar issued approximately 6.0 million shares of its common stock for $17.50 per share in a public underwritten offering. Following the offering, $394.3 million remains available for issuance under Forestar’s shelf registration statement. Effective July 30, 2019 , the Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s common stock. The authorization has no expiration date. During the three months ended December 31, 2019 , the Company repurchased 3.0 million shares of its common stock for $163.1 million . The Company’s remaining authorization at December 31, 2019 was $732.6 million . During the three months ended December 31, 2019 , the Board of Directors approved a quarterly cash dividend of $0.175 per common share, which was paid on December 11, 2019 to stockholders of record on November 27, 2019 . In January 2020 , the Board of Directors approved a quarterly cash dividend of $0.175 per common share payable on February 24, 2020 to stockholders of record on February 10, 2020 . Cash dividends of $0.15 per common share were approved and paid in each quarter of fiscal 2019 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 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 2019 , a total of 360,000 performance-based RSU equity awards were granted to the Company’s executive officers. These awards vest at the end of a three-year performance period ending September 30, 2022 . 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 0% 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 $52.54 per unit. Compensation expense related to these grants was $2.1 million in the three months ended December 31, 2019 , 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 2018 (In millions) Warranty liability, beginning of period $ 247.3 $ 202.0 Warranties issued 21.2 18.0 Changes in liability for pre-existing warranties 2.7 5.5 Settlements made (19.6 ) (19.9 ) Warranty liability, end of period $ 251.6 $ 205.6 Legal Claims and Insurance The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course of business. At any point in time, the Company is managing several hundred individual claims related to construction defect matters, personal injury claims, employment matters, land development issues, 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 $432.5 million and $434.7 million at December 31, 2019 and September 30, 2019 , 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 December 31, 2019 and September 30, 2019 . Expenses related to the Company’s legal contingencies were $16.6 million and $5.8 million in the three months ended December 31, 2019 and 2018 , respectively. The Company’s reserves for legal claims were $432.5 million at December 31, 2019 compared to $434.7 million at September 30, 2019 . Changes in the Company’s legal claims reserves during the three months ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 2018 (In millions) Reserves for legal claims, beginning of period $ 434.7 $ 408.1 Increase in reserves 21.1 11.6 Payments (23.3 ) (7.5 ) Reserves for legal claims, end of period $ 432.5 $ 412.2 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 $76.9 million , $75.1 million and $57.8 million at December 31, 2019 , September 30, 2019 and December 31, 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 purchase contract deposits and capitalized pre-acquisition costs are expensed to inventory and land option charges when the Company believes it is probable that it will not acquire the property under contract and will not be able to recover these costs through other means. At December 31, 2019 , the Company’s homebuilding segment had total deposits of $538.5 million , consisting of cash deposits of $515.9 million and promissory notes of $22.6 million , related to contracts to purchase land and lots with a total remaining purchase price of approximately $7.6 billion . The majority of land and lots under contract are currently expected to be purchased within three years. Of these amounts, $88.8 million of the deposits related to contracts with Forestar to purchase land and lots with a remaining purchase price of $918.6 million . A limited number of the homebuilding land and lot purchase contracts at December 31, 2019 , representing $57.3 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 $57.3 million remaining purchase price subject to specific performance provisions, $12.3 million related to contracts between the homebuilding segment and Forestar. During the three months ended December 31, 2019 and 2018 , Forestar reimbursed the homebuilding segment $10.7 million and $12.1 million , respectively, for previously paid earnest money and $5.2 million and $3.0 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. Other Commitments At December 31, 2019 , the Company had outstanding surety bonds of $1.7 billion and letters of credit of $170.4 million to secure performance under various contracts. Of the total letters of credit, $141.7 million were issued under the homebuilding revolving credit facility and $28.7 million were issued under Forestar’s revolving credit facility. At December 31, 2019 , letters of credit issued under the homebuilding revolving credit facility were cash collateralized to improve pricing terms. This unrestricted cash can be withdrawn by the Company at its discretion. |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities | 3 Months Ended |
Dec. 31, 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 December 31, 2019 and September 30, 2019 were as follows: December 31, September 30, 2019 (In millions) Earnest money and refundable deposits $ 559.5 $ 540.0 Insurance receivables 76.9 75.1 Other receivables 94.9 103.6 Prepaid assets 58.6 49.6 Multi-family rental property held for sale — 28.9 Contract assets - insurance agency commissions 40.7 39.3 Lease right of use assets 36.2 — Other 54.9 76.3 $ 921.7 $ 912.8 The Company’s accrued expenses and other liabilities at December 31, 2019 and September 30, 2019 were as follows: December 31, September 30, 2019 (In millions) Reserves for legal claims $ 432.5 $ 434.7 Employee compensation and related liabilities 255.4 282.1 Warranty liability 251.6 247.3 Accrued interest 38.5 26.3 Federal and state income tax liabilities 118.0 33.4 Inventory related accruals 62.7 61.5 Customer deposits 54.3 57.7 Accrued property taxes 28.1 40.1 Lease liabilities 37.6 — Other 98.7 95.0 $ 1,377.4 $ 1,278.1 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 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 December 31, 2019 and September 30, 2019 . Changes in the fair value of the Level 3 assets during the three months ended December 31, 2019 and 2018 were not material. Fair Value at December 31, 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 — 1,005.6 11.8 1,017.4 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 18.7 — 18.7 Forward sales of mortgage-backed securities Other assets — 0.5 — 0.5 Fair Value at September 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 — 1,055.3 9.8 1,065.1 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 19.2 — 19.2 Forward sales of mortgage-backed securities Other liabilities — (4.1 ) — (4.1 ) Best-efforts and mandatory commitments Other liabilities — (1.0 ) — (1.0 ) ___________________ (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 December 31, 2019 and September 30, 2019 include $11.8 million and $9.8 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 December 31, 2019 and September 30, 2019 : 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 $ — $ — $ — $ 4.5 Mortgage loans held for sale (a) (c) Mortgage loans held for sale — 3.6 — 2.7 Other mortgage loans (a) (d) Other assets — 1.1 — 1.8 ___________________ (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 16% to 18% were used in the periods presented. (c) 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). (d) The fair values 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 December 31, 2019 and September 30, 2019 : Carrying Value Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,583.3 $ 1,583.3 $ — $ — $ 1,583.3 Restricted cash (a) 12.6 12.6 — — 12.6 Notes payable (b) (c) 3,783.3 — 3,035.1 879.1 3,914.2 Carrying Value Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,494.3 $ 1,494.3 $ — $ — $ 1,494.3 Restricted cash (a) 19.7 19.7 — — 19.7 Notes payable (b) (c) 3,399.4 — 2,533.9 991.9 3,525.8 ___________________ (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) | 3 Months Ended |
Dec. 31, 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 R. Horton, the Company’s Chairman. In March 2019 , R&R exercised its rights under the purchase contract and paid $77.5 million for 119 acres of undeveloped land in Arizona. In connection with the transaction, Donald R. 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% . In accordance with the Company’s policy on related party transactions, this transaction was reviewed and approved by a committee of the Board of Directors composed of independent directors. The Company determined that R&R was a variable interest entity, and the Company had the power through its rights in its land purchase contract with R&R 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 , and this amount was included in those balances at September 30, 2019. In October 2019, the Company paid R&R $84.2 million for all 119 acres of land and deconsolidated the variable interest entity from the financial statements. The purchase transaction was also reviewed and approved by a committee of the Board of Directors composed of independent directors. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Dec. 31, 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 certain subsidiaries of D.R. Horton, Inc. (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. As described in Note A, at December 31, 2019 , the Company reclassified its single-family rental properties from other assets to property and equipment in its homebuilding segment. Reclassification of prior period amounts resulted in decreases in other assets of $26.9 million and $10.1 million in the D.R. Horton, Inc. and Guarantor Subsidiaries columns, respectively, with corresponding increases in property and equipment at September 30, 2019 . NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 1,069.1 $ 30.3 $ 483.9 $ — $ 1,583.3 Restricted cash 4.8 1.8 6.0 — 12.6 Investment in subsidiaries 7,595.7 — — (7,595.7 ) — Inventories 4,527.1 6,207.5 1,219.9 (55.3 ) 11,899.2 Mortgage loans held for sale — — 1,025.1 — 1,025.1 Deferred income taxes, net 58.9 84.7 2.3 8.2 154.1 Property and equipment, net 158.3 99.9 313.6 (8.4 ) 563.4 Other assets 412.6 458.7 146.6 (96.2 ) 921.7 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables — 825.5 — (825.5 ) — Total Assets $ 13,826.5 $ 7,842.7 $ 3,226.6 $ (8,572.9 ) $ 16,322.9 LIABILITIES & EQUITY Accounts payable and other liabilities $ 719.7 $ 1,089.1 $ 329.5 $ (101.6 ) $ 2,036.7 Intercompany payables 372.8 — 452.7 (825.5 ) — Notes payable 2,452.5 17.4 1,313.4 — 3,783.3 Total Liabilities 3,545.0 1,106.5 2,095.6 (927.1 ) 5,820.0 Stockholders’ equity 10,281.5 6,736.2 860.4 (7,650.7 ) 10,227.4 Noncontrolling interests — — 270.6 4.9 275.5 Total Equity 10,281.5 6,736.2 1,131.0 (7,645.8 ) 10,502.9 Total Liabilities & Equity $ 13,826.5 $ 7,842.7 $ 3,226.6 $ (8,572.9 ) $ 16,322.9 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet September 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 877.1 $ 115.8 $ 501.4 $ — $ 1,494.3 Restricted cash 6.8 1.3 11.6 — 19.7 Investment in subsidiaries 7,349.8 — — (7,349.8 ) — Inventories 4,166.1 5,890.7 1,260.5 (35.3 ) 11,282.0 Mortgage loans held for sale — — 1,072.0 — 1,072.0 Deferred income taxes, net 60.6 89.4 8.0 5.1 163.1 Property and equipment, net 150.7 86.7 267.8 (6.0 ) 499.2 Other assets 371.8 449.6 180.9 (89.5 ) 912.8 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables — 825.9 — (825.9 ) — Total Assets $ 12,982.9 $ 7,593.7 $ 3,331.4 $ (8,301.4 ) $ 15,606.6 LIABILITIES & EQUITY Accounts payable and other liabilities $ 616.1 $ 1,071.3 $ 316.4 $ (91.7 ) $ 1,912.1 Intercompany payables 352.7 — 473.2 (825.9 ) — Notes payable 1,955.9 14.2 1,429.3 — 3,399.4 Total Liabilities 2,924.7 1,085.5 2,218.9 (917.6 ) 5,311.5 Stockholders’ equity 10,058.2 6,508.2 841.6 (7,387.1 ) 10,020.9 Noncontrolling interests — — 270.9 3.3 274.2 Total Equity 10,058.2 6,508.2 1,112.5 (7,383.8 ) 10,295.1 Total Liabilities & Equity $ 12,982.9 $ 7,593.7 $ 3,331.4 $ (8,301.4 ) $ 15,606.6 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,593.6 $ 2,294.4 $ 360.3 $ (227.6 ) $ 4,020.7 Cost of sales 1,232.4 1,841.0 217.7 (206.9 ) 3,084.2 Selling, general and administrative expense 177.3 180.3 98.2 — 455.8 Gain on sale of assets — — (29.3 ) (1.8 ) (31.1 ) Other (income) expense (4.1 ) (0.3 ) (7.1 ) — (11.5 ) Income before income taxes 188.0 273.4 80.8 (18.9 ) 523.3 Income tax expense 31.2 45.4 17.3 (3.1 ) 90.8 Equity in net income of subsidiaries, net of tax 291.4 — — (291.4 ) — Net income 448.2 228.0 63.5 (307.2 ) 432.5 Net income attributable to noncontrolling interests — — 0.1 1.1 1.2 Net income attributable to D.R. Horton, Inc. $ 448.2 $ 228.0 $ 63.4 $ (308.3 ) $ 431.3 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended December 31, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,335.7 $ 2,081.7 $ 130.6 $ (29.0 ) $ 3,519.0 Cost of sales 1,057.2 1,681.4 38.0 (25.5 ) 2,751.1 Selling, general and administrative expense 157.9 165.9 79.0 — 402.8 Gain on sale of assets (2.0 ) — — — (2.0 ) Other (income) expense (0.8 ) (0.4 ) (7.4 ) — (8.6 ) Income before income taxes 123.4 234.8 21.0 (3.5 ) 375.7 Income tax expense 29.2 55.8 4.8 (0.8 ) 89.0 Equity in net income of subsidiaries, net of tax 195.9 — — (195.9 ) — Net income 290.1 179.0 16.2 (198.6 ) 286.7 Net loss attributable to noncontrolling interests — — (0.7 ) 0.2 (0.5 ) Net income attributable to D.R. Horton, Inc. $ 290.1 $ 179.0 $ 16.9 $ (198.8 ) $ 287.2 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Three Months Ended December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (67.2 ) $ (64.6 ) $ 73.8 $ (55.8 ) $ (113.8 ) INVESTING ACTIVITIES Expenditures for property and equipment (8.6 ) (12.0 ) (1.0 ) — (21.6 ) Proceeds from sale of assets — — 62.8 — 62.8 Expenditures related to rental properties (7.3 ) (8.3 ) (54.8 ) 10.8 (59.6 ) Return of investment in unconsolidated entities — — 1.9 — 1.9 Net principal increase of other mortgage loans and real estate owned — — (0.6 ) — (0.6 ) Intercompany advances 20.7 — — (20.7 ) — Payments related to business acquisitions (0.7 ) — — — (0.7 ) Net cash provided by (used in) investing activities 4.1 (20.3 ) 8.3 (9.9 ) (17.8 ) FINANCING ACTIVITIES Proceeds from notes payable 495.7 — — — 495.7 Payments on mortgage repurchase facility, net — — (38.6 ) — (38.6 ) Intercompany advances — (0.1 ) (20.6 ) 20.7 — Proceeds from stock associated with certain employee benefit plans 4.1 — — — 4.1 Cash paid for shares withheld for taxes (17.3 ) — — — (17.3 ) Cash dividends paid (64.6 ) — (45.0 ) 45.0 (64.6 ) Repurchases of common stock (163.1 ) — — — (163.1 ) Distributions to noncontrolling interests, net — — (0.4 ) — (0.4 ) Other financing activities (1.7 ) — (0.6 ) — (2.3 ) Net cash provided by (used in) financing activities 253.1 (0.1 ) (105.2 ) 65.7 213.5 Net increase (decrease) in cash, cash equivalents and restricted cash 190.0 (85.0 ) (23.1 ) — 81.9 Cash, cash equivalents and restricted cash at beginning of period 883.9 117.1 513.0 — 1,514.0 Cash, cash equivalents and restricted cash at end of period $ 1,073.9 $ 32.1 $ 489.9 $ — $ 1,595.9 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Three Months Ended December 31, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (137.6 ) $ (244.2 ) $ 33.7 $ (25.0 ) $ (373.1 ) INVESTING ACTIVITIES Expenditures for property and equipment (10.2 ) (6.4 ) (3.6 ) — (20.2 ) Proceeds from sale of assets 10.4 — — — 10.4 Expenditures related to rental properties — — (11.4 ) — (11.4 ) Return of investment in unconsolidated entities — — 4.4 — 4.4 Net principal increase of other mortgage loans and real estate owned — — (0.6 ) — (0.6 ) Intercompany advances (129.9 ) — — 129.9 — Payments related to business acquisitions (293.0 ) — — — (293.0 ) Net cash used in investing activities (422.7 ) (6.4 ) (11.2 ) 129.9 (310.4 ) FINANCING ACTIVITIES Proceeds from notes payable 578.3 — — — 578.3 Repayment of notes payable (275.0 ) (1.1 ) — — (276.1 ) Payments on mortgage repurchase facility, net — — (163.8 ) — (163.8 ) Intercompany advances — 125.7 4.2 (129.9 ) — Proceeds from stock associated with certain employee benefit plans 8.6 — — — 8.6 Cash paid for shares withheld for taxes (4.1 ) — — — (4.1 ) Cash dividends paid (56.0 ) — (25.0 ) 25.0 (56.0 ) Repurchases of common stock (140.6 ) — — — (140.6 ) Distributions to noncontrolling interests, net — — (0.5 ) — (0.5 ) Net cash provided by (used in) financing activities 111.2 124.6 (185.1 ) (104.9 ) (54.2 ) Net decrease in cash, cash equivalents and restricted cash (449.1 ) (126.0 ) (162.6 ) — (737.7 ) 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 $ 465.6 $ 34.7 $ 268.0 $ — $ 768.3 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 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 65% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 35% 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, 2019 , 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, 2019 . |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. At December 31, 2019 , the Company reclassified its single-family rental properties from other assets to property and equipment in its homebuilding segment. Reclassification of the prior period amount resulted in a $37.0 million decrease in other assets with a corresponding increase in property and equipment at September 30, 2019 . This reclassification had no effect on the Company’s consolidated financial position or results of operations. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Adoption of New Accounting Standard In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 was effective for the Company beginning October 1, 2019 and did not have a material impact on its consolidated financial position, results of operations or cash flows. As a result of the adoption of this standard on October 1, 2019, the Company recorded right of use assets of $39.0 million and lease liabilities of $40.3 million . Lease right of use assets are included in other assets and lease liabilities are included in accrued expenses and other liabilities in the consolidated balance sheet. |
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. |
Recent Accounting Pronouncements | Pending Accounting Standards 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. In December 2019, the FASB issued ASU 2019-12 related to simplifying the accounting for income taxes. The guidance is effective for the Company beginning October 1, 2021, although early adoption is permitted. The Company is currently evaluating the impact of this guidance, and it is not expected to have a material impact on its consolidated financial position, results of operations and cash flows. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of segment reporting information, by segment | Financial information relating to the Company’s reporting segments is as follows: December 31, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,152.9 $ 373.3 $ 37.5 $ 19.6 $ — $ — $ 1,583.3 Restricted cash 6.6 — 5.9 0.1 — — 12.6 Inventories: Construction in progress and finished homes 5,603.3 — — — (23.2 ) — 5,580.1 Residential land and lots — developed and under development 5,192.7 1,051.4 — — (32.1 ) 2.1 6,214.1 Land held for development 66.7 15.4 — — — — 82.1 Land held for sale 22.9 — — — — — 22.9 10,885.6 1,066.8 — — (55.3 ) 2.1 11,899.2 Mortgage loans held for sale — — 1,025.1 — — — 1,025.1 Deferred income taxes, net 140.1 11.8 — — 8.2 (6.0 ) 154.1 Property and equipment, net 292.8 0.9 3.1 267.6 (1.0 ) — 563.4 Other assets 864.4 27.1 59.7 46.1 (86.1 ) 10.5 921.7 Goodwill 134.3 — — — — 29.2 163.5 $ 13,476.7 $ 1,479.9 $ 1,131.3 $ 333.4 $ (134.2 ) $ 35.8 $ 16,322.9 Liabilities Accounts payable $ 624.7 $ 19.8 $ 1.4 $ 13.4 $ — $ — $ 659.3 Accrued expenses and other liabilities 1,240.6 172.4 62.3 9.7 (94.5 ) (13.1 ) 1,377.4 Notes payable 2,470.0 462.1 850.2 — — 1.0 3,783.3 $ 4,335.3 $ 654.3 $ 913.9 $ 23.1 $ (94.5 ) $ (12.1 ) $ 5,820.0 ______________ (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, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Assets Cash and cash equivalents $ 1,043.0 $ 382.8 $ 43.4 $ 25.1 $ — $ — $ 1,494.3 Restricted cash 8.0 — 11.6 0.1 — — 19.7 Inventories: Construction in progress and finished homes 5,249.0 — — — (4.0 ) — 5,245.0 Residential land and lots — developed and under development 4,956.1 1,011.8 — — (31.4 ) 2.9 5,939.4 Land held for development 60.7 17.1 — — — — 77.8 Land held for sale 19.8 — — — — — 19.8 10,285.6 1,028.9 — — (35.4 ) 2.9 11,282.0 Mortgage loans held for sale — — 1,072.0 — — — 1,072.0 Deferred income taxes, net 146.4 17.4 — — 5.1 (5.8 ) 163.1 Property and equipment, net 272.4 2.4 3.2 221.2 — — 499.2 Other assets 826.2 24.2 68.3 71.5 (88.5 ) 11.1 912.8 Goodwill 134.3 — — — — 29.2 163.5 $ 12,715.9 $ 1,455.7 $ 1,198.5 $ 317.9 $ (118.8 ) $ 37.4 $ 15,606.6 Liabilities Accounts payable $ 598.6 $ 16.8 $ 7.0 $ 11.6 $ — $ — $ 634.0 Accrued expenses and other liabilities 1,152.5 169.5 53.0 9.3 (93.6 ) (12.6 ) 1,278.1 Notes payable 2,047.6 460.5 888.9 — — 2.4 3,399.4 $ 3,798.7 $ 646.8 $ 948.9 $ 20.9 $ (93.6 ) $ (10.2 ) $ 5,311.5 ______________ (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. Three Months Ended December 31, 2019 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues Home sales $ 3,863.3 $ — $ — $ — $ — $ — $ 3,863.3 Land/lot sales and other 19.7 247.2 — 8.8 (221.2 ) — 54.5 Financial services — — 102.9 — — — 102.9 3,883.0 247.2 102.9 8.8 (221.2 ) — 4,020.7 Cost of sales Home sales (5) 3,051.6 — — — (6.7 ) — 3,044.9 Land/lot sales and other 13.3 216.3 — — (193.4 ) (0.7 ) 35.5 Inventory and land option charges 3.5 0.3 — — — — 3.8 3,068.4 216.6 — — (200.1 ) (0.7 ) 3,084.2 Selling, general and administrative expense 358.4 10.5 77.9 8.8 — 0.2 455.8 Loss (gain) on sale of assets — 0.1 — (31.2 ) — — (31.1 ) Other (income) expense (5.4 ) (2.2 ) (5.5 ) 1.6 — — (11.5 ) Income before income taxes $ 461.6 $ 22.2 $ 30.5 $ 29.6 $ (21.1 ) $ 0.5 $ 523.3 Summary Cash Flow Information Depreciation and amortization $ 16.5 $ 0.1 $ 0.4 $ 1.9 $ — $ 0.1 $ 19.0 Cash (used in) provided by operating activities $ (178.4 ) $ (11.7 ) $ 83.5 $ 3.9 $ (11.1 ) $ — $ (113.8 ) ______________ (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 December 31, 2018 Homebuilding Forestar (1) Financial Services Other (2) Eliminations (3) Other Adjustments (4) Consolidated (In millions) Revenues Home sales $ 3,410.6 $ — $ — $ — $ — $ — $ 3,410.6 Land/lot sales and other 6.7 38.5 — 6.9 (29.0 ) — 23.1 Financial services — — 85.3 — — — 85.3 3,417.3 38.5 85.3 6.9 (29.0 ) — 3,519.0 Cost of sales Home sales (5) 2,729.2 — — — (1.1 ) — 2,728.1 Land/lot sales and other 5.1 30.7 — — (24.4 ) 3.6 15.0 Inventory and land option charges 8.0 — — — — — 8.0 2,742.3 30.7 — — (25.5 ) 3.6 2,751.1 Selling, general and administrative expense 324.7 5.7 65.6 6.7 — 0.1 402.8 Gain on sale of assets (2.0 ) (0.9 ) — — — 0.9 (2.0 ) Other (income) expense (2.0 ) (1.9 ) (3.9 ) (0.8 ) — — (8.6 ) Income before income taxes $ 354.3 $ 4.9 $ 23.6 $ 1.0 $ (3.5 ) $ (4.6 ) $ 375.7 Summary Cash Flow Information Depreciation and amortization $ 14.7 $ 0.1 $ 0.4 $ 1.6 $ — $ 0.1 $ 16.9 Cash (used in) provided by operating activities $ (396.8 ) $ (164.1 ) $ 193.8 $ (1.6 ) $ — $ (4.4 ) $ (373.1 ) ______________ (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. Homebuilding Inventories by Reporting Segment (1) December 31, September 30, (In millions) East $ 1,305.4 $ 1,288.8 Midwest 919.0 836.8 Southeast 2,915.4 2,768.0 South Central 2,703.8 2,533.2 Southwest 612.1 574.4 West 2,195.6 2,056.0 Corporate and unallocated (2) 234.3 228.4 $ 10,885.6 $ 10,285.6 _________________ (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 2019 2018 (In millions) Revenues East $ 520.5 $ 447.5 Midwest 282.6 249.0 Southeast 1,150.6 1,013.9 South Central 958.7 872.5 Southwest 211.0 143.6 West 759.6 690.8 $ 3,883.0 $ 3,417.3 Inventory and Land Option Charges East $ 0.1 $ 1.4 Midwest 0.1 0.3 Southeast 1.4 1.2 South Central 1.5 0.5 Southwest 0.1 0.1 West 0.3 4.5 $ 3.5 $ 8.0 Income before Income Taxes (1) East $ 59.9 $ 38.0 Midwest 18.6 10.6 Southeast 146.3 112.3 South Central 132.6 106.0 Southwest 34.5 17.6 West 69.7 69.8 $ 461.6 $ 354.3 _________________ (1) Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each 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) | 3 Months Ended |
Dec. 31, 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: December 31, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 4.0% senior notes due 2020 (1) 499.9 499.6 2.55% senior notes due 2020 (1) 399.1 398.9 4.375% senior notes due 2022 (1) 348.9 348.8 4.75% senior notes due 2023 (1) 299.0 298.9 5.75% senior notes due 2023 (1) 398.4 398.4 2.5% senior notes due 2024 (1) 495.8 — Other secured notes 28.9 103.0 2,470.0 2,047.6 Forestar: Unsecured: Revolving credit facility — — 3.75% convertible senior notes due 2020 (2) 119.0 119.1 8.0% senior notes due 2024 (3) 344.1 343.8 463.1 462.9 Financial Services: Mortgage repurchase facility 850.2 888.9 $ 3,783.3 $ 3,399.4 |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2019 and 2018 : Three Months Ended 2019 2018 (In millions) Capitalized interest, beginning of period $ 180.1 $ 162.7 Interest incurred (1) 37.7 31.7 Interest charged to cost of sales (25.7 ) (25.6 ) Capitalized interest, end of period $ 192.1 $ 168.8 _______________ (1) Interest incurred included interest on the Company's mortgage repurchase facility of $4.7 million and $3.3 million in the three months ended December 31, 2019 and 2018 , respectively, and Forestar interest of $8.7 million and $1.3 million , respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property and equipment balances and the related accumulated depreciation at December 31, 2019 and September 30, 2019 are summarized below. These balances include properties related to the operations of DHI Communities, which develops, constructs and owns multi-family residential properties that produce rental income. DHI Communities has four projects under active construction and one project that was substantially complete at December 31, 2019 . December 31, September 30, (In millions) Buildings and improvements (1) (2) $ 350.5 $ 329.4 Multi-family rental properties under construction 64.8 65.2 Single-family rental properties 62.4 37.0 Model home furniture 130.3 128.3 Office furniture and equipment 124.5 128.6 Land (1) (2) 90.7 71.6 Total property and equipment $ 823.2 $ 760.1 Accumulated depreciation (259.8 ) (260.9 ) Property and equipment, net $ 563.4 $ 499.2 _____________ (1) At December 31, 2019 , buildings and improvements included $74.9 million related to completed multi-family rental properties and $61.1 million related to the Company’s oil and gas related assets. Additionally, at December 31, 2019 , land included $57.0 million related to the Company’s multi-family rental operations. (2) At September 30, 2019 , buildings and improvements included $50.7 million related to completed multi-family rental properties and $56.9 million related to the Company’s oil and gas related assets. Additionally, at September 30, 2019 , land included $38.0 million related to the Company’s multi-family rental operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 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 2019 2018 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 431.3 $ 287.2 Denominator: Denominator for basic earnings per share — weighted average common shares 368.3 375.1 Effect of dilutive securities: Employee stock awards 5.1 5.0 Denominator for diluted earnings per share — adjusted weighted average common shares 373.4 380.1 Basic net income per common share attributable to D.R. Horton, Inc. $ 1.17 $ 0.77 Diluted net income per common share attributable to D.R. Horton, Inc. $ 1.16 $ 0.76 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in warranty liability | Changes in the Company’s warranty liability during the three months ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 2018 (In millions) Warranty liability, beginning of period $ 247.3 $ 202.0 Warranties issued 21.2 18.0 Changes in liability for pre-existing warranties 2.7 5.5 Settlements made (19.6 ) (19.9 ) Warranty liability, end of period $ 251.6 $ 205.6 |
Changes in legal claims reserves | Changes in the Company’s legal claims reserves during the three months ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 2018 (In millions) Reserves for legal claims, beginning of period $ 434.7 $ 408.1 Increase in reserves 21.1 11.6 Payments (23.3 ) (7.5 ) Reserves for legal claims, end of period $ 432.5 $ 412.2 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Other assets | The Company’s other assets at December 31, 2019 and September 30, 2019 were as follows: December 31, September 30, 2019 (In millions) Earnest money and refundable deposits $ 559.5 $ 540.0 Insurance receivables 76.9 75.1 Other receivables 94.9 103.6 Prepaid assets 58.6 49.6 Multi-family rental property held for sale — 28.9 Contract assets - insurance agency commissions 40.7 39.3 Lease right of use assets 36.2 — Other 54.9 76.3 $ 921.7 $ 912.8 |
Accrued expenses and other liabilities | The Company’s accrued expenses and other liabilities at December 31, 2019 and September 30, 2019 were as follows: December 31, September 30, 2019 (In millions) Reserves for legal claims $ 432.5 $ 434.7 Employee compensation and related liabilities 255.4 282.1 Warranty liability 251.6 247.3 Accrued interest 38.5 26.3 Federal and state income tax liabilities 118.0 33.4 Inventory related accruals 62.7 61.5 Customer deposits 54.3 57.7 Accrued property taxes 28.1 40.1 Lease liabilities 37.6 — Other 98.7 95.0 $ 1,377.4 $ 1,278.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, 2019 and September 30, 2019 . Changes in the fair value of the Level 3 assets during the three months ended December 31, 2019 and 2018 were not material. Fair Value at December 31, 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 — 1,005.6 11.8 1,017.4 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 18.7 — 18.7 Forward sales of mortgage-backed securities Other assets — 0.5 — 0.5 Fair Value at September 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 — 1,055.3 9.8 1,065.1 Derivatives not designated as hedging instruments (b): Interest rate lock commitments Other assets — 19.2 — 19.2 Forward sales of mortgage-backed securities Other liabilities — (4.1 ) — (4.1 ) Best-efforts and mandatory commitments Other liabilities — (1.0 ) — (1.0 ) ___________________ (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 December 31, 2019 and September 30, 2019 include $11.8 million and $9.8 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 December 31, 2019 and September 30, 2019 : 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 $ — $ — $ — $ 4.5 Mortgage loans held for sale (a) (c) Mortgage loans held for sale — 3.6 — 2.7 Other mortgage loans (a) (d) Other assets — 1.1 — 1.8 ___________________ (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 16% to 18% were used in the periods presented. (c) 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). (d) The fair values 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 December 31, 2019 and September 30, 2019 : Carrying Value Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,583.3 $ 1,583.3 $ — $ — $ 1,583.3 Restricted cash (a) 12.6 12.6 — — 12.6 Notes payable (b) (c) 3,783.3 — 3,035.1 879.1 3,914.2 Carrying Value Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (a) $ 1,494.3 $ 1,494.3 $ — $ — $ 1,494.3 Restricted cash (a) 19.7 19.7 — — 19.7 Notes payable (b) (c) 3,399.4 — 2,533.9 991.9 3,525.8 ___________________ (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) | 3 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Condensed Financial Statements | Consolidating Balance Sheet December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 1,069.1 $ 30.3 $ 483.9 $ — $ 1,583.3 Restricted cash 4.8 1.8 6.0 — 12.6 Investment in subsidiaries 7,595.7 — — (7,595.7 ) — Inventories 4,527.1 6,207.5 1,219.9 (55.3 ) 11,899.2 Mortgage loans held for sale — — 1,025.1 — 1,025.1 Deferred income taxes, net 58.9 84.7 2.3 8.2 154.1 Property and equipment, net 158.3 99.9 313.6 (8.4 ) 563.4 Other assets 412.6 458.7 146.6 (96.2 ) 921.7 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables — 825.5 — (825.5 ) — Total Assets $ 13,826.5 $ 7,842.7 $ 3,226.6 $ (8,572.9 ) $ 16,322.9 LIABILITIES & EQUITY Accounts payable and other liabilities $ 719.7 $ 1,089.1 $ 329.5 $ (101.6 ) $ 2,036.7 Intercompany payables 372.8 — 452.7 (825.5 ) — Notes payable 2,452.5 17.4 1,313.4 — 3,783.3 Total Liabilities 3,545.0 1,106.5 2,095.6 (927.1 ) 5,820.0 Stockholders’ equity 10,281.5 6,736.2 860.4 (7,650.7 ) 10,227.4 Noncontrolling interests — — 270.6 4.9 275.5 Total Equity 10,281.5 6,736.2 1,131.0 (7,645.8 ) 10,502.9 Total Liabilities & Equity $ 13,826.5 $ 7,842.7 $ 3,226.6 $ (8,572.9 ) $ 16,322.9 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Balance Sheet September 30, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) ASSETS Cash and cash equivalents $ 877.1 $ 115.8 $ 501.4 $ — $ 1,494.3 Restricted cash 6.8 1.3 11.6 — 19.7 Investment in subsidiaries 7,349.8 — — (7,349.8 ) — Inventories 4,166.1 5,890.7 1,260.5 (35.3 ) 11,282.0 Mortgage loans held for sale — — 1,072.0 — 1,072.0 Deferred income taxes, net 60.6 89.4 8.0 5.1 163.1 Property and equipment, net 150.7 86.7 267.8 (6.0 ) 499.2 Other assets 371.8 449.6 180.9 (89.5 ) 912.8 Goodwill — 134.3 29.2 — 163.5 Intercompany receivables — 825.9 — (825.9 ) — Total Assets $ 12,982.9 $ 7,593.7 $ 3,331.4 $ (8,301.4 ) $ 15,606.6 LIABILITIES & EQUITY Accounts payable and other liabilities $ 616.1 $ 1,071.3 $ 316.4 $ (91.7 ) $ 1,912.1 Intercompany payables 352.7 — 473.2 (825.9 ) — Notes payable 1,955.9 14.2 1,429.3 — 3,399.4 Total Liabilities 2,924.7 1,085.5 2,218.9 (917.6 ) 5,311.5 Stockholders’ equity 10,058.2 6,508.2 841.6 (7,387.1 ) 10,020.9 Noncontrolling interests — — 270.9 3.3 274.2 Total Equity 10,058.2 6,508.2 1,112.5 (7,383.8 ) 10,295.1 Total Liabilities & Equity $ 12,982.9 $ 7,593.7 $ 3,331.4 $ (8,301.4 ) $ 15,606.6 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,593.6 $ 2,294.4 $ 360.3 $ (227.6 ) $ 4,020.7 Cost of sales 1,232.4 1,841.0 217.7 (206.9 ) 3,084.2 Selling, general and administrative expense 177.3 180.3 98.2 — 455.8 Gain on sale of assets — — (29.3 ) (1.8 ) (31.1 ) Other (income) expense (4.1 ) (0.3 ) (7.1 ) — (11.5 ) Income before income taxes 188.0 273.4 80.8 (18.9 ) 523.3 Income tax expense 31.2 45.4 17.3 (3.1 ) 90.8 Equity in net income of subsidiaries, net of tax 291.4 — — (291.4 ) — Net income 448.2 228.0 63.5 (307.2 ) 432.5 Net income attributable to noncontrolling interests — — 0.1 1.1 1.2 Net income attributable to D.R. Horton, Inc. $ 448.2 $ 228.0 $ 63.4 $ (308.3 ) $ 431.3 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Operations Three Months Ended December 31, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) Revenues $ 1,335.7 $ 2,081.7 $ 130.6 $ (29.0 ) $ 3,519.0 Cost of sales 1,057.2 1,681.4 38.0 (25.5 ) 2,751.1 Selling, general and administrative expense 157.9 165.9 79.0 — 402.8 Gain on sale of assets (2.0 ) — — — (2.0 ) Other (income) expense (0.8 ) (0.4 ) (7.4 ) — (8.6 ) Income before income taxes 123.4 234.8 21.0 (3.5 ) 375.7 Income tax expense 29.2 55.8 4.8 (0.8 ) 89.0 Equity in net income of subsidiaries, net of tax 195.9 — — (195.9 ) — Net income 290.1 179.0 16.2 (198.6 ) 286.7 Net loss attributable to noncontrolling interests — — (0.7 ) 0.2 (0.5 ) Net income attributable to D.R. Horton, Inc. $ 290.1 $ 179.0 $ 16.9 $ (198.8 ) $ 287.2 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Three Months Ended December 31, 2019 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (67.2 ) $ (64.6 ) $ 73.8 $ (55.8 ) $ (113.8 ) INVESTING ACTIVITIES Expenditures for property and equipment (8.6 ) (12.0 ) (1.0 ) — (21.6 ) Proceeds from sale of assets — — 62.8 — 62.8 Expenditures related to rental properties (7.3 ) (8.3 ) (54.8 ) 10.8 (59.6 ) Return of investment in unconsolidated entities — — 1.9 — 1.9 Net principal increase of other mortgage loans and real estate owned — — (0.6 ) — (0.6 ) Intercompany advances 20.7 — — (20.7 ) — Payments related to business acquisitions (0.7 ) — — — (0.7 ) Net cash provided by (used in) investing activities 4.1 (20.3 ) 8.3 (9.9 ) (17.8 ) FINANCING ACTIVITIES Proceeds from notes payable 495.7 — — — 495.7 Payments on mortgage repurchase facility, net — — (38.6 ) — (38.6 ) Intercompany advances — (0.1 ) (20.6 ) 20.7 — Proceeds from stock associated with certain employee benefit plans 4.1 — — — 4.1 Cash paid for shares withheld for taxes (17.3 ) — — — (17.3 ) Cash dividends paid (64.6 ) — (45.0 ) 45.0 (64.6 ) Repurchases of common stock (163.1 ) — — — (163.1 ) Distributions to noncontrolling interests, net — — (0.4 ) — (0.4 ) Other financing activities (1.7 ) — (0.6 ) — (2.3 ) Net cash provided by (used in) financing activities 253.1 (0.1 ) (105.2 ) 65.7 213.5 Net increase (decrease) in cash, cash equivalents and restricted cash 190.0 (85.0 ) (23.1 ) — 81.9 Cash, cash equivalents and restricted cash at beginning of period 883.9 117.1 513.0 — 1,514.0 Cash, cash equivalents and restricted cash at end of period $ 1,073.9 $ 32.1 $ 489.9 $ — $ 1,595.9 NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued) Consolidating Statement of Cash Flows Three Months Ended December 31, 2018 D.R. Horton, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (In millions) OPERATING ACTIVITIES Net cash (used in) provided by operating activities $ (137.6 ) $ (244.2 ) $ 33.7 $ (25.0 ) $ (373.1 ) INVESTING ACTIVITIES Expenditures for property and equipment (10.2 ) (6.4 ) (3.6 ) — (20.2 ) Proceeds from sale of assets 10.4 — — — 10.4 Expenditures related to rental properties — — (11.4 ) — (11.4 ) Return of investment in unconsolidated entities — — 4.4 — 4.4 Net principal increase of other mortgage loans and real estate owned — — (0.6 ) — (0.6 ) Intercompany advances (129.9 ) — — 129.9 — Payments related to business acquisitions (293.0 ) — — — (293.0 ) Net cash used in investing activities (422.7 ) (6.4 ) (11.2 ) 129.9 (310.4 ) FINANCING ACTIVITIES Proceeds from notes payable 578.3 — — — 578.3 Repayment of notes payable (275.0 ) (1.1 ) — — (276.1 ) Payments on mortgage repurchase facility, net — — (163.8 ) — (163.8 ) Intercompany advances — 125.7 4.2 (129.9 ) — Proceeds from stock associated with certain employee benefit plans 8.6 — — — 8.6 Cash paid for shares withheld for taxes (4.1 ) — — — (4.1 ) Cash dividends paid (56.0 ) — (25.0 ) 25.0 (56.0 ) Repurchases of common stock (140.6 ) — — — (140.6 ) Distributions to noncontrolling interests, net — — (0.5 ) — (0.5 ) Net cash provided by (used in) financing activities 111.2 124.6 (185.1 ) (104.9 ) (54.2 ) Net decrease in cash, cash equivalents and restricted cash (449.1 ) (126.0 ) (162.6 ) — (737.7 ) 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 $ 465.6 $ 34.7 $ 268.0 $ — $ 768.3 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Oct. 01, 2019 | |
Entity Information [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 0 | $ 36.2 | $ 39 |
Noncontrolling Interest, Ownership Percentage by Parent | 65.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | ||
Operating Lease, Liability | 0 | $ 37.6 | $ 40.3 |
Assets Leased to Others [Member] | Single Family [Member] | |||
Entity Information [Line Items] | |||
Prior Period Reclassification Adjustment | $ 37 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019USD ($)ProjectsMarketStateSegmentsOperatingDivisions | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Proceeds from Sale of Buildings | $ 62.8 | $ 10.4 | |
Gain (Loss) on Sale of Properties | 31.1 | 2 | |
Total assets | 16,322.9 | $ 15,606.6 | |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Gain (Loss) on Sale of Properties | 31.2 | 0 | |
Total assets | $ 333.4 | 317.9 | |
Home Building [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of housing construction markets | Market | 90 | ||
Number of housing construction states | State | 29 | ||
Number of home building operating divisions | OperatingDivisions | 52 | ||
Number of homebuilding reporting segments | Segments | 6 | ||
Gain (Loss) on Sale of Properties | $ 0 | 2 | |
Total assets | $ 13,476.7 | 12,715.9 | |
Forestar Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of housing construction markets | Market | 51 | ||
Number of housing construction states | State | 20 | ||
Gain (Loss) on Sale of Properties | $ (0.1) | $ 0.9 | |
Total assets | 1,479.9 | 1,455.7 | |
Multifamily [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Proceeds from Sale of Buildings | 61.5 | ||
Gain (Loss) on Sale of Properties | 31.2 | ||
Total assets | $ 209.8 | $ 204 | |
Asset under Construction [Member] | Multifamily [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Projects | Projects | 4 | ||
Assets Leased to Others [Member] | Multifamily [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Projects | Projects | 1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Document Period End Date | Dec. 31, 2019 | ||
Assets [Abstract] | |||
Cash and cash equivalents | $ 1,583.3 | $ 1,494.3 | |
Restricted cash | 12.6 | 19.7 | |
Inventories: | |||
Construction in progress and finished homes | 5,580.1 | 5,245 | |
Residential land and lots — developed and under development | 6,214.1 | 5,939.4 | |
Land held for development | 82.1 | 77.8 | |
Land held for sale | 22.9 | 19.8 | |
Total inventories | 11,899.2 | 11,282 | |
Mortgage loans held for sale | 1,025.1 | 1,072 | |
Deferred income taxes, net | 154.1 | 163.1 | |
Property and equipment, net | 563.4 | 499.2 | |
Other Assets | 921.7 | 912.8 | |
Goodwill | 163.5 | 163.5 | |
Total assets | 16,322.9 | 15,606.6 | |
Liabilities [Abstract] | |||
Accounts payable | 659.3 | 634 | |
Accrued expenses and other liabilities | 1,377.4 | 1,278.1 | |
Notes payable | 3,783.3 | 3,399.4 | |
Total liabilities | 5,820 | 5,311.5 | |
Revenues | |||
Total revenues | 4,020.7 | $ 3,519 | |
Inventory and land option charges | 3.8 | 8 | |
Cost of sales | 3,084.2 | 2,751.1 | |
Selling, General and Administrative Expense | 455.8 | 402.8 | |
Gain on sale of assets | (31.1) | (2) | |
Other (income) expense | (11.5) | (8.6) | |
Income (loss) before income taxes | 523.3 | 375.7 | |
Depreciation and amortization | 19 | 16.9 | |
Net cash (used in) provided by operating activities | (113.8) | (373.1) | |
Segment Reconciling Items [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 2.1 | 2.9 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Total inventories | 2.1 | 2.9 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | (6) | (5.8) | |
Property and equipment, net | 0 | 0 | |
Other Assets | 10.5 | 11.1 | |
Goodwill | 29.2 | 29.2 | |
Total assets | 35.8 | 37.4 | |
Liabilities [Abstract] | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | (13.1) | (12.6) | |
Notes payable | 1 | 2.4 | |
Total liabilities | (12.1) | (10.2) | |
Revenues | |||
Total revenues | 0 | 0 | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | (0.7) | 3.6 | |
Selling, General and Administrative Expense | 0.2 | 0.1 | |
Gain on sale of assets | 0 | 0.9 | |
Other (income) expense | 0 | 0 | |
Income (loss) before income taxes | 0.5 | (4.6) | |
Depreciation and amortization | 0.1 | 0.1 | |
Net cash (used in) provided by operating activities | 0 | (4.4) | |
Intersegment Eliminations [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | (23.2) | (4) | |
Residential land and lots — developed and under development | (32.1) | (31.4) | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Total inventories | (55.3) | (35.4) | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 8.2 | 5.1 | |
Property and equipment, net | (1) | 0 | |
Other Assets | (86.1) | (88.5) | |
Goodwill | 0 | 0 | |
Total assets | (134.2) | (118.8) | |
Liabilities [Abstract] | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | (94.5) | (93.6) | |
Notes payable | 0 | 0 | |
Total liabilities | (94.5) | (93.6) | |
Revenues | |||
Total revenues | (221.2) | (29) | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | (200.1) | (25.5) | |
Selling, General and Administrative Expense | 0 | 0 | |
Gain on sale of assets | 0 | 0 | |
Other (income) expense | 0 | 0 | |
Income (loss) before income taxes | (21.1) | (3.5) | |
Depreciation and amortization | 0 | 0 | |
Net cash (used in) provided by operating activities | (11.1) | 0 | |
Financial Services [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 37.5 | 43.4 | |
Restricted cash | 5.9 | 11.6 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Total inventories | 0 | 0 | |
Mortgage loans held for sale | 1,025.1 | 1,072 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 3.1 | 3.2 | |
Other Assets | 59.7 | 68.3 | |
Goodwill | 0 | 0 | |
Total assets | 1,131.3 | 1,198.5 | |
Liabilities [Abstract] | |||
Accounts payable | 1.4 | 7 | |
Accrued expenses and other liabilities | 62.3 | 53 | |
Notes payable | 850.2 | 888.9 | |
Total liabilities | 913.9 | 948.9 | |
Revenues | |||
Total revenues | 102.9 | 85.3 | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling, General and Administrative Expense | 77.9 | 65.6 | |
Gain on sale of assets | 0 | 0 | |
Other (income) expense | (5.5) | (3.9) | |
Income (loss) before income taxes | 30.5 | 23.6 | |
Depreciation and amortization | 0.4 | 0.4 | |
Net cash (used in) provided by operating activities | 83.5 | 193.8 | |
Home Building [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 1,152.9 | 1,043 | |
Restricted cash | 6.6 | 8 | |
Inventories: | |||
Construction in progress and finished homes | 5,603.3 | 5,249 | |
Residential land and lots — developed and under development | 5,192.7 | 4,956.1 | |
Land held for development | 66.7 | 60.7 | |
Land held for sale | 22.9 | 19.8 | |
Total inventories | 10,885.6 | 10,285.6 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 140.1 | 146.4 | |
Property and equipment, net | 292.8 | 272.4 | |
Other Assets | 864.4 | 826.2 | |
Goodwill | 134.3 | 134.3 | |
Total assets | 13,476.7 | 12,715.9 | |
Liabilities [Abstract] | |||
Accounts payable | 624.7 | 598.6 | |
Accrued expenses and other liabilities | 1,240.6 | 1,152.5 | |
Notes payable | 2,470 | 2,047.6 | |
Total liabilities | 4,335.3 | 3,798.7 | |
Revenues | |||
Total revenues | 3,883 | 3,417.3 | |
Inventory and land option charges | 3.5 | 8 | |
Cost of sales | 3,068.4 | 2,742.3 | |
Selling, General and Administrative Expense | 358.4 | 324.7 | |
Gain on sale of assets | 0 | (2) | |
Other (income) expense | (5.4) | (2) | |
Income (loss) before income taxes | 461.6 | 354.3 | |
Depreciation and amortization | 16.5 | 14.7 | |
Net cash (used in) provided by operating activities | (178.4) | (396.8) | |
Forestar Group [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 373.3 | 382.8 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 1,051.4 | 1,011.8 | |
Land held for development | 15.4 | 17.1 | |
Land held for sale | 0 | 0 | |
Total inventories | 1,066.8 | 1,028.9 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 11.8 | 17.4 | |
Property and equipment, net | 0.9 | 2.4 | |
Other Assets | 27.1 | 24.2 | |
Goodwill | 0 | 0 | |
Total assets | 1,479.9 | 1,455.7 | |
Liabilities [Abstract] | |||
Accounts payable | 19.8 | 16.8 | |
Accrued expenses and other liabilities | 172.4 | 169.5 | |
Notes payable | 462.1 | 460.5 | |
Total liabilities | 654.3 | 646.8 | |
Revenues | |||
Total revenues | 247.2 | 38.5 | |
Inventory and land option charges | 0.3 | 0 | |
Cost of sales | 216.6 | 30.7 | |
Selling, General and Administrative Expense | 10.5 | 5.7 | |
Gain on sale of assets | 0.1 | (0.9) | |
Other (income) expense | (2.2) | (1.9) | |
Income (loss) before income taxes | 22.2 | 4.9 | |
Depreciation and amortization | 0.1 | 0.1 | |
Net cash (used in) provided by operating activities | (11.7) | (164.1) | |
Other Segments [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 19.6 | 25.1 | |
Restricted cash | 0.1 | 0.1 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Total inventories | 0 | 0 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 267.6 | 221.2 | |
Other Assets | 46.1 | 71.5 | |
Goodwill | 0 | 0 | |
Total assets | 333.4 | 317.9 | |
Liabilities [Abstract] | |||
Accounts payable | 13.4 | 11.6 | |
Accrued expenses and other liabilities | 9.7 | 9.3 | |
Notes payable | 0 | 0 | |
Total liabilities | 23.1 | 20.9 | |
Revenues | |||
Total revenues | 8.8 | 6.9 | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling, General and Administrative Expense | 8.8 | 6.7 | |
Gain on sale of assets | (31.2) | 0 | |
Other (income) expense | 1.6 | (0.8) | |
Income (loss) before income taxes | 29.6 | 1 | |
Depreciation and amortization | 1.9 | 1.6 | |
Net cash (used in) provided by operating activities | 3.9 | (1.6) | |
East [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 1,305.4 | 1,288.8 | |
Revenues | |||
Total revenues | 520.5 | 447.5 | |
Inventory and land option charges | 0.1 | 1.4 | |
Income (loss) before income taxes | 59.9 | 38 | |
Midwest [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 919 | 836.8 | |
Revenues | |||
Total revenues | 282.6 | 249 | |
Inventory and land option charges | 0.1 | 0.3 | |
Income (loss) before income taxes | 18.6 | 10.6 | |
Southeast [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 2,915.4 | 2,768 | |
Revenues | |||
Total revenues | 1,150.6 | 1,013.9 | |
Inventory and land option charges | 1.4 | 1.2 | |
Income (loss) before income taxes | 146.3 | 112.3 | |
South Central [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 2,703.8 | 2,533.2 | |
Revenues | |||
Total revenues | 958.7 | 872.5 | |
Inventory and land option charges | 1.5 | 0.5 | |
Income (loss) before income taxes | 132.6 | 106 | |
Southwest [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 612.1 | 574.4 | |
Revenues | |||
Total revenues | 211 | 143.6 | |
Inventory and land option charges | 0.1 | 0.1 | |
Income (loss) before income taxes | 34.5 | 17.6 | |
West [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 2,195.6 | 2,056 | |
Revenues | |||
Total revenues | 759.6 | 690.8 | |
Inventory and land option charges | 0.3 | 4.5 | |
Income (loss) before income taxes | 69.7 | 69.8 | |
Corporate, Non-Segment [Member] | Home Building [Member] | |||
Inventories: | |||
Total inventories | 234.3 | 228.4 | |
Multifamily [Member] | Other Segments [Member] | |||
Inventories: | |||
Total assets | 209.8 | $ 204 | |
Revenues | |||
Gain on sale of assets | (31.2) | ||
Financial Service [Member] | |||
Revenues | |||
Home sales | 102.9 | 85.3 | |
Financial Service [Member] | Segment Reconciling Items [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Financial Service [Member] | Intersegment Eliminations [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Financial Service [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 102.9 | 85.3 | |
Financial Service [Member] | Home Building [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Financial Service [Member] | Forestar Group [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Financial Service [Member] | Other Segments [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Land [Member] | |||
Revenues | |||
Home sales | 54.5 | 23.1 | |
Cost of Goods and Services Sold | 35.5 | 15 | |
Land [Member] | Segment Reconciling Items [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | (0.7) | 3.6 | |
Land [Member] | Intersegment Eliminations [Member] | |||
Revenues | |||
Home sales | (221.2) | (29) | |
Cost of Goods and Services Sold | (193.4) | (24.4) | |
Land [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Land [Member] | Home Building [Member] | |||
Revenues | |||
Home sales | 19.7 | 6.7 | |
Cost of Goods and Services Sold | 13.3 | 5.1 | |
Land [Member] | Forestar Group [Member] | |||
Revenues | |||
Home sales | 247.2 | 38.5 | |
Cost of Goods and Services Sold | 216.3 | 30.7 | |
Land [Member] | Other Segments [Member] | |||
Revenues | |||
Home sales | 8.8 | 6.9 | |
Cost of Goods and Services Sold | 0 | 0 | |
Home Building [Member] | |||
Revenues | |||
Home sales | 3,863.3 | 3,410.6 | |
Cost of Goods and Services Sold | 3,044.9 | 2,728.1 | |
Home Building [Member] | Segment Reconciling Items [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Home Building [Member] | Intersegment Eliminations [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | (6.7) | (1.1) | |
Home Building [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Home Building [Member] | Home Building [Member] | |||
Revenues | |||
Home sales | 3,863.3 | 3,410.6 | |
Cost of Goods and Services Sold | 3,051.6 | 2,729.2 | |
Home Building [Member] | Forestar Group [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Home Building [Member] | Other Segments [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory [Line Items] | ||
Carrying value of communities with impairment indicators | $ 34.2 | |
Impairment charges | 0 | $ 4.2 |
Write-offs (recoveries) of earnest money deposits and pre-acquisition costs | $ 3.8 | $ 3.8 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Document Period End Date | Dec. 31, 2019 | ||
Unsecured: | |||
Notes payable | $ 3,783,300,000 | $ 3,399,400,000 | |
Home Building [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchase Authorization Remaining | 500,000,000 | ||
Unsecured: | |||
Notes payable | 2,470,000,000 | 2,047,600,000 | |
Revolving credit facility | 0 | 0 | |
Unamortized Debt Issuance Expense | 8,600,000 | 5,400,000 | |
Forestar Group [Member] | |||
Unsecured: | |||
Notes payable | 462,100,000 | 460,500,000 | |
Financial Services [Member] | |||
Unsecured: | |||
Notes payable | 850,200,000 | 888,900,000 | |
Forestar Group [Member] | |||
Unsecured: | |||
Notes payable | 463,100,000 | 462,900,000 | |
Revolving credit facility | $ 0 | 0 | |
4.0% senior notes due 2020 [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 4.00% | ||
Notes payable | $ 499,900,000 | 499,600,000 | |
2.55% senior notes due 2020 [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 2.55% | ||
Notes payable | $ 399,100,000 | 398,900,000 | |
4.375% senior notes due 2022 [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 4.375% | ||
Notes payable | $ 348,900,000 | 348,800,000 | |
4.75% senior notes due 2023 [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 4.75% | ||
Notes payable | $ 299,000,000 | 298,900,000 | |
5.75% senior notes due 2023 [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 5.75% | ||
Notes payable | $ 398,400,000 | 398,400,000 | |
SeniorNoteFortyTwo [Member] | Home Building [Member] | |||
Unsecured: | |||
Stated interest rate | 2.50% | 2.50% | |
Notes payable | $ 495,800,000 | $ 500,000,000 | 0 |
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | ||
3.75% convertible senior notes due 2020 [Member] | Forestar Group [Member] | |||
Unsecured: | |||
Stated interest rate | 3.75% | ||
3.75% convertible senior notes due 2020 [Member] | Forestar Group [Member] | |||
Unsecured: | |||
Notes payable | $ 119,000,000 | 119,100,000 | |
Senior Note Member Forty One [Member] | Forestar Group [Member] | |||
Unsecured: | |||
Stated interest rate | 8.00% | ||
Unamortized Debt Issuance Expense | $ 5,900,000 | 6,200,000 | |
Senior Note Member Forty One [Member] | Forestar Group [Member] | |||
Unsecured: | |||
Notes payable | 344,100,000 | 343,800,000 | |
Secured Debt [Member] | Home Building [Member] | |||
Unsecured: | |||
Notes payable | $ 28,900,000 | $ 103,000,000 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Oct. 01, 2019 | |
Debt Instrument [Line Items] | |||
Notes payable | $ 3,783,300,000 | $ 3,399,400,000 | |
Outstanding letters of credit | 170,400,000 | ||
Restricted Cash and Cash Equivalents | 12,600,000 | 19,700,000 | |
Home Building [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Lines of Credit | 0 | ||
Unamortized Debt Issuance Expense | 8,600,000 | 5,400,000 | |
Notes payable | 2,470,000,000 | 2,047,600,000 | |
Borrowing capacity on revolving credit facility | 1,590,000,000 | ||
Maximum borrowing capacity on revolving credit facility | $ 2,500,000,000 | ||
Letters of credit, sublimit borrowing capacity, as a percentage | 100.00% | ||
Proceeds from revolving credit facility | $ 0 | ||
Borrowings outstanding on revolving credit facility | 0 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 1,400,000,000 | ||
Authorized repurchase of debt securities | 500,000,000 | ||
Restricted Cash and Cash Equivalents | 6,600,000 | 8,000,000 | |
Home Building [Member] | 5.75% senior notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 398,400,000 | 398,400,000 | |
Stated interest rate | 5.75% | ||
Home Building [Member] | SeniorNoteFortyTwo [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 495,800,000 | 0 | $ 500,000,000 |
Stated interest rate | 2.50% | 2.50% | |
Financial Services [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 850,200,000 | 888,900,000 | |
Borrowing capacity on revolving credit facility | 900,000,000 | ||
Maximum borrowing capacity on revolving credit facility | 1,200,000,000 | ||
Temporary Increase In Borrowing Capacity | 50,000,000 | ||
Restricted Cash and Cash Equivalents | 5,900,000 | 11,600,000 | |
Mortgage loans held for sale pledged under repurchase agreement | 953,700,000 | ||
Mortgage loans held for sale pledged under repurchase agreement, collateral value | $ 915,100,000 | ||
Interest rate on mortgage repurchase facility | 3.50% | ||
Forestar Group [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 462,100,000 | 460,500,000 | |
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% | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 351,300,000 | ||
Restricted Cash and Cash Equivalents | $ 0 | 0 | |
Forestar Group [Member] | 3.75% convertible senior notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.75% | ||
Debt Instrument, Face Amount | $ 118,900,000 | ||
Forestar Group [Member] | Senior Note Member Forty One [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ 5,900,000 | 6,200,000 | |
Stated interest rate | 8.00% | ||
Forestar Group [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 463,100,000 | 462,900,000 | |
Borrowings outstanding on revolving credit facility | 0 | 0 | |
Forestar Group [Member] | 3.75% convertible senior notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 119,000,000 | 119,100,000 | |
Forestar Group [Member] | Senior Note Member Forty One [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 344,100,000 | 343,800,000 | |
Line of Credit [Member] | Home Building [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | 141,700,000 | ||
Line of Credit [Member] | Forestar Group [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | 28,700,000 | ||
Maximum [Member] | Financial Services [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing capacity on revolving credit facility | 950,000,000 | ||
Segment Reconciling Items [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 1,000,000 | 2,400,000 | |
Restricted Cash and Cash Equivalents | $ 0 | $ 0 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of capitalized interest | ||
Capitalized interest, beginning of period | $ 180.1 | $ 162.7 |
Interest incurred | 37.7 | 31.7 |
Interest charged to cost of sales | (25.7) | (25.6) |
Capitalized interest, end of period | 192.1 | 168.8 |
Financial Services [Member] | ||
Rollforward of capitalized interest | ||
Interest incurred | 4.7 | 3.3 |
Forestar Group [Member] | ||
Rollforward of capitalized interest | ||
Interest incurred | $ 8.7 | $ 1.3 |
Property and Equipment (Details
Property and Equipment (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019USD ($)Projects | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 823.2 | $ 760.1 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (259.8) | (260.9) | |
Property, Plant and Equipment, Net | 563.4 | 499.2 | |
Depreciation | 17.2 | $ 15.9 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 350.5 | 329.4 | |
2510 Household Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 130.3 | 128.3 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 124.5 | 128.6 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 90.7 | 71.6 | |
Oil and Gas Properties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 61.1 | 56.9 | |
Multifamily [Member] | Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 64.8 | 65.2 | |
Multifamily [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 57 | 38 | |
Multifamily [Member] | Other Property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 74.9 | 50.7 | |
Other Segments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 267.6 | 221.2 | |
Single Family [Member] | Assets Leased to Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 62.4 | $ 37 | |
Multifamily [Member] | Other Segments [Member] | Asset under Construction [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of Projects | Projects | 4 | ||
Multifamily [Member] | Other Segments [Member] | Assets Leased to Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of Projects | Projects | 1 |
Mortgage Loans Mortgage Loans H
Mortgage Loans Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Mortgage loans held for sale | $ 1,025.1 | $ 1,072 | |
Mortgage loans held for sale, outstanding principal amount | 1,004 | 1,000 | |
Payments for Origination of Mortgage Loans Held-for-sale | 2,300 | $ 1,600 | |
Proceeds from Sale of Mortgage Loans Held-for-sale | 2,300 | 1,800 | |
Gain (Loss) on Sales of Loans, Net | $ 73.6 | $ 59.9 | |
Concentration Risk, Percentage | 86.00% | ||
Percentage Of Mortgage Loans Sold To Major Purchaser | 31.00% | ||
Loan Origination Commitments [Member] | |||
Derivative, Notional Amount | $ 594.4 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Mortgage loans held for sale | 1,005.6 | $ 1,055.3 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Loan Origination Commitments [Member] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 90.8 | $ 89 | |
Effective tax rate (percent) | 17.40% | 23.70% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | $ 32.9 | ||
Deferred tax assets net of DTL | 172.4 | $ 181.8 | |
Valuation allowance for deferred income taxes | $ 18.3 | $ 18.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Net Income (Loss) Attributable to Parent | $ 431.3 | $ 287.2 |
Denominator: | ||
Denominator for basic earnings per share — weighted average common shares | 368.3 | 375.1 |
Effect of dilutive securities: | ||
Employee stock awards (shares) | 5.1 | 5 |
Denominator for diluted earnings per share — adjusted weighted average common shares | 373.4 | 380.1 |
Basic net income per common share attributable to Parent (in dollars per share) | $ 1.17 | $ 0.77 |
Diluted net income per common share attributable to Parent (in dollars per share) | $ 1.16 | $ 0.76 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Amount of stock repurchase authorization | $ 1,000,000,000 | ||||||
Treasury Stock, Shares, Acquired | 3,000,000 | ||||||
Payments for Repurchase of Common Stock | $ 163,100,000 | $ 140,600,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 732,600,000 | ||||||
Dividends, Common Stock [Abstract] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.175 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||
Cash dividends paid per common share (in dollars per share) | $ 0.175 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||
Common Stock, Shares, Issued | 393,014,557 | 392,172,821 | |||||
Subsequent Event [Member] | |||||||
Dividends, Common Stock [Abstract] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.175 | ||||||
Forestar Group [Member] | |||||||
Class of Stock [Line Items] | |||||||
Equity Securities Registered, Value | $ 500,000,000 | ||||||
Dividends, Common Stock [Abstract] | |||||||
Common Stock, Shares, Issued | 6,000,000 | ||||||
Shares Issued, Price Per Share | $ 17.50 | ||||||
Common Stock Available for Issuance, Value Remaining | $ 394,300,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended |
Nov. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Period End Date | Dec. 31, 2019 | |
Performance Shares [Member] | November Two Thousand Nineteen Grant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs granted in the period | 360,000 | |
Award vesting period | 3 years | |
Fair value of equity awards on the date of grant (in US$ per unit) | $ 52.54 | |
Compensation expense | $ 2.1 | |
Performance Shares [Member] | November Two Thousand Nineteen 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 | 0.00% | |
Performance Shares [Member] | November Two Thousand Nineteen 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 Nineteen Grant [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Claims (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in warranty liability | ||
Warranty liability, beginning of period | $ 247.3 | $ 202 |
Warranties issued | 21.2 | 18 |
Changes in liability for pre-existing warranties | 2.7 | 5.5 |
Settlements made | (19.6) | (19.9) |
Warranty liability, end of period | $ 251.6 | $ 205.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | ||||
Liabilities for various claims, complaints and other legal actions | $ 432.5 | $ 412.2 | $ 434.7 | $ 408.1 |
Construction defect portion of loss contingency accrual, percentage | 99.00% | 99.00% | ||
Expenses related to legal claims | $ 16.6 | 5.8 | ||
Estimated insurance recoveries related to legal claims | 76.9 | 57.8 | $ 75.1 | |
Surety bonds | 1,700 | |||
Outstanding letters of credit | 170.4 | |||
Forestar Consolidated [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 88.8 | |||
Remaining purchase price of land under option contracts | 918.6 | |||
Forestar Consolidated [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Remaining purchase price of land under option contracts | 12.3 | |||
Home Building [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 538.5 | |||
Remaining purchase price of land under option contracts | 7,600 | |||
Home Building [Member] | Line of Credit [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Outstanding letters of credit | 141.7 | |||
Home Building [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Remaining purchase price of land under option contracts | 57.3 | |||
Home Building [Member] | Cash [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 515.9 | |||
Home Building [Member] | Notes Payable, Other Payables [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 22.6 | |||
Forestar Group [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Increase (Decrease) in Earnest Money Deposits Outstanding | 10.7 | 12.1 | ||
Increase (Decrease) in Prepaid Expenses, Other | 5.2 | $ 3 | ||
Forestar Group [Member] | Line of Credit [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Outstanding letters of credit | $ 28.7 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal Claims and Insurance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of reserves for legal claims | ||
Reserves for legal claims, beginning of period | $ 434.7 | $ 408.1 |
Increase in reserves | 21.1 | 11.6 |
Payments | (23.3) | (7.5) |
Reserves for legal claims, end of period | $ 432.5 | $ 412.2 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Other assets | |||||
Earnest money and refundable deposits | $ 559.5 | $ 540 | |||
Insurance receivables | 76.9 | 75.1 | $ 57.8 | ||
Other receivables | 94.9 | 103.6 | |||
Prepaid assets | 58.6 | 49.6 | |||
Contract Asset Insurance Renewals | 40.7 | 39.3 | |||
Operating Lease, Right-of-Use Asset | 36.2 | $ 39 | 0 | ||
Other | 54.9 | 76.3 | |||
Other assets | 921.7 | 912.8 | |||
Accrued expenses and other liabilities | |||||
Reserves for legal claims | 432.5 | 434.7 | 412.2 | $ 408.1 | |
Employee compensation and related liabilities | 255.4 | 282.1 | |||
Warranty liability | 251.6 | 247.3 | $ 205.6 | $ 202 | |
Accrued interest | 38.5 | 26.3 | |||
Federal and state income tax liabilities | 118 | 33.4 | |||
Inventory related accruals | 62.7 | 61.5 | |||
Customer deposits | 54.3 | 57.7 | |||
Accrued property taxes | 28.1 | 40.1 | |||
Operating Lease, Liability | 37.6 | $ 40.3 | 0 | ||
Other | 98.7 | 95 | |||
Accrued expenses and other liabilities | 1,377.4 | 1,278.1 | |||
Multifamily [Member] | |||||
Other assets | |||||
Real Estate Held-for-sale | 0 | 28.9 | |||
Other Segments [Member] | |||||
Other assets | |||||
Other assets | 46.1 | 71.5 | |||
Accrued expenses and other liabilities | |||||
Accrued expenses and other liabilities | $ 9.7 | $ 9.3 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 1,025.1 | $ 1,072 |
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 | 1,017.4 | 1,065.1 |
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 | 18.7 | 19.2 |
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 | 0.5 | (4.1) |
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 | (1) | |
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 | |
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 | 1,005.6 | 1,055.3 |
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 | 18.7 | 19.2 |
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 | 0.5 | (4.1) |
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 | (1) | |
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 | 11.8 | 9.8 |
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 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) $ in Millions | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 1,025.1 | $ 1,072 |
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] | ||
Inventories | 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 | 3.6 | 2.7 |
Other mortgage loans | 1.1 | 1.8 |
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] | ||
Inventories | 0 | 4.5 |
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] | Inventories [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.16 | |
Measurement Input, Discount Rate [Member] | Inventories [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.18 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Reflected at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 1,025.1 | $ 1,072 |
Cash and cash equivalents, Carrying value | 1,583.3 | 1,494.3 |
Restricted Cash and Cash Equivalents | 12.6 | 19.7 |
Notes payable | 3,783.3 | 3,399.4 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 1,583.3 | 1,494.3 |
Restricted cash, Fair value | 12.6 | 19.7 |
Notes payable, Fair value | 3,914.2 | 3,525.8 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Fair value | 1,583.3 | 1,494.3 |
Restricted cash, Fair value | 12.6 | 19.7 |
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 | 3,035.1 | 2,533.9 |
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 | 879.1 | 991.9 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 0 | 0 |
Loans Receivable, Fair Value Disclosure | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 3.6 | 2.7 |
Loans Receivable, Fair Value Disclosure | $ 1.1 | $ 1.8 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2019USD ($) | Mar. 31, 2019USD ($)a | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Related Party Transaction [Line Items] | ||||
Inventory, Real Estate, Land and Land Development Costs | $ 6,214.1 | $ 5,939.4 | ||
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 | |||
Payments to Acquire Land | $ 84.2 | |||
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 | $ 1,051.4 | $ 1,011.8 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
ASSETS | ||||
Cash and cash equivalents | $ 1,494.3 | $ 1,583.3 | ||
Restricted cash | 19.7 | 12.6 | ||
Investment in subsidiaries | 0 | 0 | ||
Inventories | 11,282 | 11,899.2 | ||
Mortgage loans held for sale | 1,072 | 1,025.1 | ||
Deferred income taxes, net | 163.1 | 154.1 | ||
Property and equipment, net | 499.2 | 563.4 | ||
Other assets | 912.8 | 921.7 | ||
Goodwill | 163.5 | 163.5 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 15,606.6 | 16,322.9 | ||
LIABILITIES & EQUITY | ||||
Accounts payable and other liabilities | 1,912.1 | 2,036.7 | ||
Intercompany payables | 0 | 0 | ||
Notes payable | 3,399.4 | 3,783.3 | ||
Total liabilities | 5,311.5 | 5,820 | ||
Stockholders’ equity | 10,020.9 | 10,227.4 | ||
Noncontrolling interests | 274.2 | 275.5 | ||
Total equity | 10,295.1 | 10,502.9 | $ 9,298.2 | $ 9,158.9 |
Total liabilities and equity | 15,606.6 | 16,322.9 | ||
Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Investment in subsidiaries | (7,349.8) | (7,595.7) | ||
Inventories | (35.3) | (55.3) | ||
Mortgage loans held for sale | 0 | 0 | ||
Deferred income taxes, net | 5.1 | 8.2 | ||
Property and equipment, net | (6) | (8.4) | ||
Other assets | (89.5) | (96.2) | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | (825.9) | (825.5) | ||
Total assets | (8,301.4) | (8,572.9) | ||
LIABILITIES & EQUITY | ||||
Accounts payable and other liabilities | (91.7) | (101.6) | ||
Intercompany payables | (825.9) | (825.5) | ||
Notes payable | 0 | 0 | ||
Total liabilities | (917.6) | (927.1) | ||
Stockholders’ equity | (7,387.1) | (7,650.7) | ||
Noncontrolling interests | 3.3 | 4.9 | ||
Total equity | (7,383.8) | (7,645.8) | ||
Total liabilities and equity | (8,301.4) | (8,572.9) | ||
D.R. Horton, Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 877.1 | 1,069.1 | ||
Restricted cash | 6.8 | 4.8 | ||
Investment in subsidiaries | 7,349.8 | 7,595.7 | ||
Inventories | 4,166.1 | 4,527.1 | ||
Mortgage loans held for sale | 0 | 0 | ||
Deferred income taxes, net | 60.6 | 58.9 | ||
Property and equipment, net | 150.7 | 158.3 | ||
Other assets | 371.8 | 412.6 | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 12,982.9 | 13,826.5 | ||
LIABILITIES & EQUITY | ||||
Accounts payable and other liabilities | 616.1 | 719.7 | ||
Intercompany payables | 352.7 | 372.8 | ||
Notes payable | 1,955.9 | 2,452.5 | ||
Total liabilities | 2,924.7 | 3,545 | ||
Stockholders’ equity | 10,058.2 | 10,281.5 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 10,058.2 | 10,281.5 | ||
Total liabilities and equity | 12,982.9 | 13,826.5 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 115.8 | 30.3 | ||
Restricted cash | 1.3 | 1.8 | ||
Investment in subsidiaries | 0 | 0 | ||
Inventories | 5,890.7 | 6,207.5 | ||
Mortgage loans held for sale | 0 | 0 | ||
Deferred income taxes, net | 89.4 | 84.7 | ||
Property and equipment, net | 86.7 | 99.9 | ||
Other assets | 449.6 | 458.7 | ||
Goodwill | 134.3 | 134.3 | ||
Intercompany receivables | 825.9 | 825.5 | ||
Total assets | 7,593.7 | 7,842.7 | ||
LIABILITIES & EQUITY | ||||
Accounts payable and other liabilities | 1,071.3 | 1,089.1 | ||
Intercompany payables | 0 | 0 | ||
Notes payable | 14.2 | 17.4 | ||
Total liabilities | 1,085.5 | 1,106.5 | ||
Stockholders’ equity | 6,508.2 | 6,736.2 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 6,508.2 | 6,736.2 | ||
Total liabilities and equity | 7,593.7 | 7,842.7 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 501.4 | 483.9 | ||
Restricted cash | 11.6 | 6 | ||
Investment in subsidiaries | 0 | 0 | ||
Inventories | 1,260.5 | 1,219.9 | ||
Mortgage loans held for sale | 1,072 | 1,025.1 | ||
Deferred income taxes, net | 8 | 2.3 | ||
Property and equipment, net | 267.8 | 313.6 | ||
Other assets | 180.9 | 146.6 | ||
Goodwill | 29.2 | 29.2 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 3,331.4 | 3,226.6 | ||
LIABILITIES & EQUITY | ||||
Accounts payable and other liabilities | 316.4 | 329.5 | ||
Intercompany payables | 473.2 | 452.7 | ||
Notes payable | 1,429.3 | 1,313.4 | ||
Total liabilities | 2,218.9 | 2,095.6 | ||
Stockholders’ equity | 841.6 | 860.4 | ||
Noncontrolling interests | 270.9 | 270.6 | ||
Total equity | 1,112.5 | 1,131 | ||
Total liabilities and equity | 3,331.4 | $ 3,226.6 | ||
Single Family [Member] | Assets Leased to Others [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Prior Period Reclassification Adjustment | 37 | |||
Single Family [Member] | Assets Leased to Others [Member] | D.R. Horton, Inc. [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Prior Period Reclassification Adjustment | 26.9 | |||
Single Family [Member] | Assets Leased to Others [Member] | Guarantor Subsidiaries [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Prior Period Reclassification Adjustment | $ 10.1 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidating Statement of Operations | ||
Revenues | $ 4,020.7 | $ 3,519 |
Cost of sales | 3,084.2 | 2,751.1 |
Selling, general and administrative expense | 455.8 | 402.8 |
Gain on sale of assets | (31.1) | (2) |
Other (income) expense | (11.5) | (8.6) |
Income before income taxes | 523.3 | 375.7 |
Income tax expense | 90.8 | 89 |
Equity in net income of subsidiaries, net of tax | 0 | 0 |
Net income | 432.5 | 286.7 |
Net income (loss) attributable to noncontrolling interests | 1.2 | (0.5) |
Net Income (Loss) Attributable to Parent | 431.3 | 287.2 |
Eliminations [Member] | ||
Consolidating Statement of Operations | ||
Revenues | (227.6) | (29) |
Cost of sales | (206.9) | (25.5) |
Selling, general and administrative expense | 0 | 0 |
Gain on sale of assets | (1.8) | 0 |
Other (income) expense | 0 | 0 |
Income before income taxes | (18.9) | (3.5) |
Income tax expense | (3.1) | (0.8) |
Equity in net income of subsidiaries, net of tax | (291.4) | (195.9) |
Net income | (307.2) | (198.6) |
Net income (loss) attributable to noncontrolling interests | 1.1 | 0.2 |
Net Income (Loss) Attributable to Parent | (308.3) | (198.8) |
D.R. Horton, Inc. [Member] | ||
Consolidating Statement of Operations | ||
Revenues | 1,593.6 | 1,335.7 |
Cost of sales | 1,232.4 | 1,057.2 |
Selling, general and administrative expense | 177.3 | 157.9 |
Gain on sale of assets | 0 | (2) |
Other (income) expense | (4.1) | (0.8) |
Income before income taxes | 188 | 123.4 |
Income tax expense | 31.2 | 29.2 |
Equity in net income of subsidiaries, net of tax | 291.4 | 195.9 |
Net income | 448.2 | 290.1 |
Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Net Income (Loss) Attributable to Parent | 448.2 | 290.1 |
Guarantor Subsidiaries [Member] | ||
Consolidating Statement of Operations | ||
Revenues | 2,294.4 | 2,081.7 |
Cost of sales | 1,841 | 1,681.4 |
Selling, general and administrative expense | 180.3 | 165.9 |
Gain on sale of assets | 0 | 0 |
Other (income) expense | (0.3) | (0.4) |
Income before income taxes | 273.4 | 234.8 |
Income tax expense | 45.4 | 55.8 |
Equity in net income of subsidiaries, net of tax | 0 | 0 |
Net income | 228 | 179 |
Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Net Income (Loss) Attributable to Parent | 228 | 179 |
Non-Guarantor Subsidiaries [Member] | ||
Consolidating Statement of Operations | ||
Revenues | 360.3 | 130.6 |
Cost of sales | 217.7 | 38 |
Selling, general and administrative expense | 98.2 | 79 |
Gain on sale of assets | (29.3) | 0 |
Other (income) expense | (7.1) | (7.4) |
Income before income taxes | 80.8 | 21 |
Income tax expense | 17.3 | 4.8 |
Equity in net income of subsidiaries, net of tax | 0 | 0 |
Net income | 63.5 | 16.2 |
Net income (loss) attributable to noncontrolling interests | 0.1 | (0.7) |
Net Income (Loss) Attributable to Parent | $ 63.4 | $ 16.9 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | $ (113.8) | $ (373.1) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (21.6) | (20.2) |
Proceeds from sale of assets | 62.8 | 10.4 |
Expenditures related to rental properties | (59.6) | (11.4) |
Return of investment in unconsolidated entities | 1.9 | 4.4 |
Net principal increase of other mortgage loans and real estate owned | (0.6) | (0.6) |
Intercompany advances | 0 | 0 |
Payments related to business acquisitions | 0.7 | 293 |
Net cash (used in) provided by investing activities | (17.8) | (310.4) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 495.7 | 578.3 |
Repayment of notes payable | 0 | (276.1) |
Advances (payments) on mortgage repurchase facility, net | (38.6) | (163.8) |
Other Financing Activity - Intercompany Advances | 0 | 0 |
Proceeds from stock associated with certain employee benefit plans | 4.1 | 8.6 |
Cash paid for shares withheld for taxes | (17.3) | (4.1) |
Cash dividends paid | (64.6) | (56) |
Repurchases of common stock | (163.1) | (140.6) |
Distributions to noncontrolling interests, net | (0.4) | (0.5) |
Proceeds from (Payments for) Other Financing Activities | (2.3) | 0 |
Net cash (used in) provided by financing activities | 213.5 | (54.2) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 81.9 | (737.7) |
Cash, cash equivalents and restricted cash at beginning of period | 1,514 | 1,506 |
Cash, cash equivalents and restricted cash at end of period | 1,595.9 | 768.3 |
Eliminations [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | (55.8) | (25) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Expenditures related to rental properties | 10.8 | 0 |
Return of investment in unconsolidated entities | 0 | 0 |
Net principal increase of other mortgage loans and real estate owned | 0 | 0 |
Intercompany advances | (20.7) | 129.9 |
Payments related to business acquisitions | 0 | 0 |
Net cash (used in) provided by investing activities | (9.9) | 129.9 |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 0 | 0 |
Repayment of notes payable | 0 | |
Advances (payments) on mortgage repurchase facility, net | 0 | 0 |
Other Financing Activity - Intercompany Advances | 20.7 | (129.9) |
Proceeds from stock associated with certain employee benefit plans | 0 | 0 |
Cash paid for shares withheld for taxes | 0 | 0 |
Cash dividends paid | 45 | 25 |
Repurchases of common stock | 0 | 0 |
Distributions to noncontrolling interests, net | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | |
Net cash (used in) provided by financing activities | 65.7 | (104.9) |
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 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
D.R. Horton, Inc. [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | (67.2) | (137.6) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (8.6) | (10.2) |
Proceeds from sale of assets | 0 | 10.4 |
Expenditures related to rental properties | (7.3) | 0 |
Return of investment in unconsolidated entities | 0 | 0 |
Net principal increase of other mortgage loans and real estate owned | 0 | 0 |
Intercompany advances | 20.7 | (129.9) |
Payments related to business acquisitions | 0.7 | 293 |
Net cash (used in) provided by investing activities | 4.1 | (422.7) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 495.7 | 578.3 |
Repayment of notes payable | (275) | |
Advances (payments) on mortgage repurchase facility, net | 0 | 0 |
Other Financing Activity - Intercompany Advances | 0 | 0 |
Proceeds from stock associated with certain employee benefit plans | 4.1 | 8.6 |
Cash paid for shares withheld for taxes | (17.3) | (4.1) |
Cash dividends paid | (64.6) | (56) |
Repurchases of common stock | (163.1) | (140.6) |
Distributions to noncontrolling interests, net | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | (1.7) | |
Net cash (used in) provided by financing activities | 253.1 | 111.2 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 190 | (449.1) |
Cash, cash equivalents and restricted cash at beginning of period | 883.9 | 914.7 |
Cash, cash equivalents and restricted cash at end of period | 1,073.9 | 465.6 |
Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | (64.6) | (244.2) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (12) | (6.4) |
Proceeds from sale of assets | 0 | 0 |
Expenditures related to rental properties | (8.3) | 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 | (20.3) | (6.4) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 0 | 0 |
Repayment of notes payable | (1.1) | |
Advances (payments) on mortgage repurchase facility, net | 0 | 0 |
Other Financing Activity - Intercompany Advances | (0.1) | 125.7 |
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 |
Proceeds from (Payments for) Other Financing Activities | 0 | |
Net cash (used in) provided by financing activities | (0.1) | 124.6 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (85) | (126) |
Cash, cash equivalents and restricted cash at beginning of period | 117.1 | 160.7 |
Cash, cash equivalents and restricted cash at end of period | 32.1 | 34.7 |
Non-Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities | 73.8 | 33.7 |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (1) | (3.6) |
Proceeds from sale of assets | 62.8 | 0 |
Expenditures related to rental properties | (54.8) | (11.4) |
Return of investment in unconsolidated entities | 1.9 | 4.4 |
Net principal increase of other mortgage loans and real estate owned | (0.6) | (0.6) |
Intercompany advances | 0 | 0 |
Payments related to business acquisitions | 0 | 0 |
Net cash (used in) provided by investing activities | 8.3 | (11.2) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 0 | 0 |
Repayment of notes payable | 0 | |
Advances (payments) on mortgage repurchase facility, net | (38.6) | (163.8) |
Other Financing Activity - Intercompany Advances | (20.6) | 4.2 |
Proceeds from stock associated with certain employee benefit plans | 0 | 0 |
Cash paid for shares withheld for taxes | 0 | 0 |
Cash dividends paid | (45) | (25) |
Repurchases of common stock | 0 | 0 |
Distributions to noncontrolling interests, net | (0.4) | (0.5) |
Proceeds from (Payments for) Other Financing Activities | (0.6) | |
Net cash (used in) provided by financing activities | (105.2) | (185.1) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (23.1) | (162.6) |
Cash, cash equivalents and restricted cash at beginning of period | 513 | 430.6 |
Cash, cash equivalents and restricted cash at end of period | $ 489.9 | $ 268 |