Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2021 | Jul. 20, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-14122 | |
Entity Registrant Name | D.R. Horton, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2386963 | |
Entity Address, Address Line One | 1341 Horton Circle | |
Entity Address, City or Town | Arlington | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76011 | |
City Area Code | 817 | |
Local Phone Number | 390-8200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 358,183,972 | |
Entity Central Index Key | 0000882184 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 | Jun. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,942.7 | $ 3,018.5 |
Restricted cash | 26.4 | 21.6 |
Total cash, cash equivalents and restricted cash | 1,969.1 | 3,040.1 |
Inventories: | ||
Construction in progress and finished homes | 7,744.1 | 5,984.1 |
Residential land and lots — developed and under development | 7,407.9 | 6,171.8 |
Land held for development | 113.9 | 53.2 |
Land held for sale | 23.5 | 28.3 |
Rental properties | 722.3 | 0 |
Total inventories | 16,011.7 | 12,237.4 |
Mortgage loans held for sale | 1,644.1 | 1,529 |
Deferred income taxes, net of valuation allowance of $7.3 million and $7.5 million at June 30, 2021 and September 30, 2020, respectively | 147.1 | 144.9 |
Property and equipment, net | 367 | 683.7 |
Other assets | 1,491 | 1,113.7 |
Goodwill | 163.5 | 163.5 |
Total assets | 21,793.5 | 18,912.3 |
LIABILITIES | ||
Accounts payable | 1,250.9 | 900.5 |
Accrued expenses and other liabilities | 2,001.3 | 1,607 |
Notes payable | 4,416.3 | 4,283.3 |
Total liabilities | 7,668.5 | 6,790.8 |
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, 396,959,567 shares issued and 358,124,810 shares outstanding at June 30, 2021 and 394,741,349 shares issued and 363,999,982 shares outstanding at September 30, 2020 | 4 | 3.9 |
Additional paid-in capital | 3,246 | 3,240.9 |
Retained earnings | 12,376.9 | 9,757.8 |
Treasury stock, 38,834,757 shares and 30,741,367 shares at June 30, 2021 and September 30, 2020, respectively, at cost | (1,824) | (1,162.6) |
Stockholders’ equity | 13,802.9 | 11,840 |
Noncontrolling interests | 322.1 | 281.5 |
Total equity | 14,125 | 12,121.5 |
Total liabilities and equity | $ 21,793.5 | $ 18,912.3 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 7,284.6 | $ 5,390 | $ 19,664.9 | $ 13,910.8 |
Cost of sales | 5,212.6 | 4,084.7 | 14,196 | 10,619.7 |
Selling, general and administrative expense | 655.7 | 527.5 | 1,863.2 | 1,450.1 |
Gain on sale of assets | 0 | 0 | (14) | (59.5) |
Loss on extinguishment of debt | 18.1 | 0 | 18.1 | 0 |
Other (income) expense | (17.4) | (4.6) | (28.2) | (26.4) |
Income before income taxes | 1,415.6 | 782.4 | 3,629.8 | 1,926.9 |
Income tax expense | 299.1 | 149.5 | 784.1 | 377.6 |
Net income | 1,116.5 | 632.9 | 2,845.7 | 1,549.3 |
Net income (loss) attributable to noncontrolling interests | 1 | 2.2 | 8.9 | 4.6 |
Net income attributable to D.R. Horton, Inc. | $ 1,115.5 | $ 630.7 | $ 2,836.8 | $ 1,544.7 |
Basic net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 3.10 | $ 1.73 | $ 7.83 | $ 4.22 |
Weighted average number of common shares | 359.7 | 363.8 | 362.2 | 366 |
Diluted net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 3.06 | $ 1.72 | $ 7.73 | $ 4.17 |
Adjusted weighted average number of common shares | 364 | 367.7 | 367.1 | 370.4 |
Consolidated Statements of Tota
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, 2019 | $ 10,295.1 | $ 3.9 | $ 3,179.1 | $ 7,640.1 | $ (802.2) | $ 274.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
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 | (64.6) | (64.6) | ||||
Repurchases of common stock | (163.1) | (163.1) | ||||
Distributions to noncontrolling interests | (0.4) | (0.4) | ||||
Change of ownership interest in Forestar | 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 |
Beginning Balances at Sep. 30, 2019 | 10,295.1 | 3.9 | 3,179.1 | 7,640.1 | (802.2) | 274.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,549.3 | |||||
Cash paid for shares withheld for taxes | (38.2) | |||||
Ending Balances at Jun. 30, 2020 | 11,327.1 | 3.9 | 3,214.2 | 8,992.5 | (1,162.6) | 279.1 |
Beginning Balances at Dec. 31, 2019 | 10,502.9 | 3.9 | 3,182 | 8,006.8 | (965.3) | 275.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 484 | 0 | 0 | 482.7 | 0 | 1.3 |
Exercise of stock options | 6.2 | 0 | 6.2 | |||
Stock issued under employee incentive plans | 2.6 | 2.6 | ||||
Cash paid for shares withheld for taxes | (20.8) | 0 | (20.8) | 0 | 0 | 0 |
Stock-based compensation expense | 21.3 | 21.3 | ||||
Cash dividends declared | (64.1) | (64.1) | ||||
Repurchases of common stock | (197.3) | (197.3) | ||||
Ending Balances at Mar. 31, 2020 | 10,734.8 | 3.9 | 3,191.3 | 8,425.4 | (1,162.6) | 276.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 632.9 | 0 | 0 | 630.7 | 0 | 2.2 |
Exercise of stock options | 2.1 | 0 | 2.1 | |||
Stock issued under employee incentive plans | 0 | |||||
Cash paid for shares withheld for taxes | (0.1) | 0 | (0.1) | 0 | 0 | 0 |
Stock-based compensation expense | 21.3 | 21.3 | ||||
Cash dividends declared | (63.6) | (63.6) | ||||
Distributions to noncontrolling interests | (0.3) | (0.3) | ||||
Change of ownership interest in Forestar | 0 | (0.4) | 0.4 | |||
Ending Balances at Jun. 30, 2020 | 11,327.1 | 3.9 | 3,214.2 | 8,992.5 | (1,162.6) | 279.1 |
Beginning Balances at Sep. 30, 2020 | 12,121.5 | 3.9 | 3,240.9 | 9,757.8 | (1,162.6) | 281.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 795.2 | 0 | 0 | 791.8 | 0 | 3.4 |
Exercise of stock options | 0.9 | 0 | 0.9 | |||
Stock issued under employee incentive plans | 0.1 | 0.1 | 0 | |||
Cash paid for shares withheld for taxes | (26.3) | 0 | (26.3) | 0 | 0 | 0 |
Stock-based compensation expense | 21.7 | 21.7 | ||||
Cash dividends declared | (72.9) | (72.9) | ||||
Repurchases of common stock | (69.8) | (69.8) | ||||
Distributions to noncontrolling interests | (0.1) | (0.1) | ||||
Change of ownership interest in Forestar | 0 | (0.3) | 0.3 | |||
Ending Balances at Dec. 31, 2020 | 12,770.3 | 4 | 3,236.9 | 10,476.7 | (1,232.4) | 285.1 |
Beginning Balances at Sep. 30, 2020 | 12,121.5 | 3.9 | 3,240.9 | 9,757.8 | (1,162.6) | 281.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,845.7 | |||||
Cash paid for shares withheld for taxes | (78.5) | |||||
Ending Balances at Jun. 30, 2021 | 14,125 | 4 | 3,246 | 12,376.9 | (1,824) | 322.1 |
Beginning Balances at Dec. 31, 2020 | 12,770.3 | 4 | 3,236.9 | 10,476.7 | (1,232.4) | 285.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 933.9 | 0 | 0 | 929.5 | 0 | 4.4 |
Exercise of stock options | 1.4 | 0 | 1.4 | |||
Stock issued under employee incentive plans | 3.2 | 3.2 | ||||
Cash paid for shares withheld for taxes | (56.6) | 0 | (56.6) | 0 | 0 | 0 |
Stock-based compensation expense | 25.4 | 25.4 | ||||
Cash dividends declared | (72.7) | (72.7) | ||||
Repurchases of common stock | (350.4) | (350.4) | ||||
Change of ownership interest in Forestar | 21.5 | (1.9) | 23.4 | |||
Ending Balances at Mar. 31, 2021 | 13,276 | 4 | 3,208.4 | 11,333.5 | (1,582.8) | 312.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,116.5 | 0 | 0 | 1,115.5 | 0 | 1 |
Exercise of stock options | 1.4 | 0 | 1.4 | |||
Stock issued under employee incentive plans | 8.5 | 8.5 | ||||
Cash paid for shares withheld for taxes | 4.4 | 0 | 4.4 | 0 | 0 | 0 |
Stock-based compensation expense | 22.6 | 22.6 | ||||
Cash dividends declared | (72.1) | (72.1) | ||||
Repurchases of common stock | (241.2) | (241.2) | ||||
Change of ownership interest in Forestar | 8.9 | 0.7 | 8.2 | |||
Ending Balances at Jun. 30, 2021 | $ 14,125 | $ 4 | $ 3,246 | $ 12,376.9 | $ (1,824) | $ 322.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 2,845.7 | $ 1,549.3 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 56.7 | 57.4 |
Amortization of discounts and fees | 6.9 | 7.8 |
Stock-based compensation expense | 69.7 | 59.2 |
Equity in earnings of unconsolidated entities | (1) | (0.6) |
Deferred income taxes | (2.1) | 1 |
Inventory and land option charges | 17.6 | 17.8 |
Gain on sale of assets | (14) | (59.5) |
Loss on extinguishment of debt | 18.1 | 0 |
Changes in operating assets and liabilities: | ||
Increase in construction in progress and finished homes | (1,739.7) | (602.3) |
Increase in residential land and lots – developed, under development, held for development and held for sale | (1,349.8) | (361.9) |
Increase in rental properties | (196) | 0 |
Increase in other assets | (367.2) | (62.2) |
Net increase in mortgage loans held for sale | (115.1) | (430.7) |
Increase in accounts payable, accrued expenses and other liabilities | 735.7 | 413.6 |
Cash provided by (used in) operating activities | (34.5) | 588.9 |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (46) | (66.8) |
Proceeds from sale of assets | 37.6 | 129.8 |
Expenditures related to rental properties | (173.9) | (153.6) |
Return of investment in unconsolidated entities | 2.2 | 2.4 |
Net principal increase of other mortgage loans and real estate owned | (2.4) | (3.7) |
Payments related to business acquisitions | (24.4) | (8.5) |
Net cash used in investing activities | (206.9) | (100.4) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 914.1 | 2,346.3 |
Repayment of notes payable | (792.8) | (1,679.5) |
(Payments) advances on mortgage repurchase facility, net | (39) | 284 |
Proceeds from stock associated with certain employee benefit plans | 15.5 | 15 |
Cash paid for shares withheld for taxes | (78.5) | (38.2) |
Cash dividends paid | (217.7) | (192.3) |
Repurchases of common stock | (661.4) | (360.4) |
Distributions to noncontrolling interests, net | (0.1) | (0.7) |
Net proceeds from issuance of Forestar common stock | 32.6 | 0 |
Other financing activities | (2.3) | (4) |
Net cash (used in) provided by financing activities | (829.6) | 370.2 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,071) | 858.7 |
Cash, cash equivalents and restricted cash at beginning of period | 3,040.1 | 1,514 |
Cash, cash equivalents and restricted cash at end of period | 1,969.1 | 2,372.7 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
Notes payable issued for inventory | 12.5 | 2.8 |
Stock issued under employee incentive plans | 124.7 | 84.4 |
Accrual for holdback payments related to acquisitions | $ 1.2 | $ 1.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 7.3 | $ 7.5 |
Preferred Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
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 | 396,959,567 | 394,741,349 |
Common Stock, Shares, Outstanding | 358,124,810 | 363,999,982 |
Treasury Stock, Shares | 38,834,757 | 30,741,367 |
Consolidated Statements of To_2
Consolidated Statements of Total Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Common Stock, Shares, Outstanding | 358,124,810 | ||||||
Divedends declared (in dollars per sh | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.175 | $ 0.175 | $ 0.175 | |
Common Stock [Member] | |||||||
Common Stock, Shares, Outstanding | 358,124,810 | 360,479,511 | 363,647,879 | 363,633,208 | 363,537,810 | 366,273,190 | 368,431,454 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 152,119 | 391,047 | 42,950 | 93,491 | 310,032 | 258,800 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 110,946 | 916,209 | 604,947 | 1,907 | 954,588 | 582,936 | |
Divedends declared (in dollars per sh | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.175 | $ 0.175 | $ 0.175 | |
Stock Repurchased and Retired During Period, Shares | (2,617,766) | (4,475,624) | (1,000,000) | (4,000,000) | (3,000,000) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
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 64% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 36% 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, 2020, 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, 2020. Reclassifications During the third quarter of fiscal 2021, the Company changed the presentation of its single and multi-family rental operations in its consolidated financial statements. Bulk sales of rental properties are now presented as revenues and cost of sales, rental assets previously recorded as property and equipment have been reclassified to inventory, and related cash flows for the single and multi-family rental operations are now included in operating activities. Prior to the third quarter of fiscal 2021, bulk sales of rental properties were presented on a net basis as a gain on sale of assets, and the majority of the cash flow activities were included in investing activities. This change in presentation was implemented as a result of the Company’s change in strategic focus during the third quarter of fiscal 2021, which included increased levels of activity in the current quarter and plans for future investment in the Company’s single and multi-family rental operations. This presentation was effected on a prospective basis beginning in the third quarter of fiscal 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Seasonality Historically, the homebuilding industry has experienced seasonal fluctuations; therefore, the operating results for the three and nine months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2021 or subsequent periods. Business Acquisition In October 2020, the Company acquired the homebuilding operations of Braselton Homes in Corpus Christi, Texas for approximately $23.0 million in cash. The assets acquired included approximately 90 homes in inventory, 95 lots and control of approximately 840 additional lots through purchase contracts. The Company also acquired a sales order backlog of approximately 125 homes. Pending Accounting Standards In December 2019, the Financial Accounting Standards Board (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 or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect them to have a material impact on its consolidated financial statements or related disclosures. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2021 | |
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 96 markets across 30 states. The Company’s operating segments are its 55 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 lot 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, Kentucky, 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. During fiscal 2020, the Company began constructing and leasing homes as income-producing single-family rental communities. After a rental community is constructed and achieves a stabilized level of leased occupancy, the Company generally markets the community for a bulk sale of homes. These operations are reported in the Company’s homebuilding segment. During the third quarter of fiscal 2021, the Company sold a single-family rental community for $23.1 million in revenues and $11.4 million of gross profit. In the first quarter of fiscal 2021, the Company sold a single-family rental community for $31.8 million and recorded a gain on sale of $14.0 million. At June 30, 2021, the Company’s homebuilding inventory included $303.1 million of assets related to 44 single-family rental communities compared to $87.2 million of assets included in property and equipment related to 10 single-family rental communities at September 30, 2020. At June 30, 2021, the Company’s single-family rental properties included 2,340 homes and finished lots, of which 680 homes were completed, compared to 740 homes and finished lots, of which 440 homes were completed at September 30, 2020. The Forestar segment is a residential lot development company with operations in 55 markets across 22 states. Forestar has made significant investments in land acquisition and development to expand its business across the United States. 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 majority of the related servicing rights to third-party purchasers. In addition to its homebuilding, Forestar and financial services operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, constructs, owns and sells income-producing multi-family rental properties, owns non-residential real estate including ranch land and improvements and owns and operates oil and gas related assets. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented as other. The Company’s multi-family rental operations develop, construct, lease, own and sell multi-family rental properties, which are typically marketed for sale after achieving a stabilized level of leased occupancy. At June 30, 2021, the Company had eleven multi-family rental projects under active construction and four projects that were substantially complete and in the lease-up phase. These 15 projects represent 4,540 multi-family units, including 3,230 units under active construction and 1,310 completed units. At June 30, 2021, the consolidated balance sheet included $458.3 million of assets related to multi-family rental operations, which included $436.3 million of rental property inventory. At September 30, 2020, the consolidated balance sheet included $246.2 million of assets related to multi-family rental operations, which included $232.1 million of property and equipment. 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, 2020. Financial information relating to the Company’s reporting segments is as follows: June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Assets Cash and cash equivalents $ 1,673.8 $ 116.0 $ 101.1 $ 51.8 $ — $ 1,942.7 Restricted cash 11.5 — 14.6 0.3 — 26.4 Inventories: Construction in progress and finished homes 7,837.8 — — — (93.7) 7,744.1 Residential land and lots — developed and under development 5,675.4 1,777.9 — — (45.4) 7,407.9 Land held for development 30.4 83.5 — — — 113.9 Land held for sale 23.5 — — — — 23.5 Rental properties 303.1 — — 436.3 (17.1) 722.3 13,870.2 1,861.4 — 436.3 (156.2) 16,011.7 Mortgage loans held for sale — — 1,644.1 — — 1,644.1 Deferred income taxes, net 152.5 — — — (5.4) 147.1 Property and equipment, net 280.3 2.2 3.4 81.1 — 367.0 Other assets 1,381.5 35.4 122.6 62.7 (111.2) 1,491.0 Goodwill 134.3 — — — 29.2 163.5 $ 17,504.1 $ 2,015.0 $ 1,885.8 $ 632.2 $ (243.6) $ 21,793.5 Liabilities Accounts payable $ 1,171.1 $ 45.6 $ — $ 34.2 $ — $ 1,250.9 Accrued expenses and other liabilities 1,773.5 294.9 90.7 14.2 (172.0) 2,001.3 Notes payable 2,620.0 704.1 1,093.6 — (1.4) 4,416.3 $ 5,564.6 $ 1,044.6 $ 1,184.3 $ 48.4 $ (173.4) $ 7,668.5 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. September 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,551.1 $ 394.3 $ 55.6 $ 17.5 $ — $ 3,018.5 Restricted cash 9.5 — 11.9 0.2 — 21.6 Inventories: Construction in progress and finished homes 6,037.5 — — — (53.4) 5,984.1 Residential land and lots — developed and under development 4,901.4 1,304.3 — — (33.9) 6,171.8 Land held for development 47.8 5.4 — — — 53.2 Land held for sale 28.3 — — — — 28.3 11,015.0 1,309.7 — — (87.3) 12,237.4 Mortgage loans held for sale — — 1,529.0 — — 1,529.0 Deferred income taxes, net 142.3 — — — 2.6 144.9 Property and equipment, net 372.8 1.1 3.9 308.9 (3.0) 683.7 Other assets 996.4 34.8 125.8 52.8 (96.1) 1,113.7 Goodwill 134.3 — — — 29.2 163.5 $ 15,221.4 $ 1,739.9 $ 1,726.2 $ 379.4 $ (154.6) $ 18,912.3 Liabilities Accounts payable $ 859.3 $ 29.2 $ — $ 12.0 $ — $ 900.5 Accrued expenses and other liabilities 1,438.3 197.8 86.8 12.2 (128.1) 1,607.0 Notes payable 2,514.4 641.1 1,132.6 — (4.8) 4,283.3 $ 4,812.0 $ 868.1 $ 1,219.4 $ 24.2 $ (132.9) $ 6,790.8 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. Three Months Ended June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 7,040.1 $ — $ — $ — $ — $ 7,040.1 Land/lot sales and other (4) 30.2 312.9 — 15.9 (303.2) 55.8 Financial services — — 188.7 — — 188.7 7,070.3 312.9 188.7 15.9 (303.2) 7,284.6 Cost of sales Home sales (3) 5,219.2 — — — (40.0) 5,179.2 Land/lot sales and other (4) 14.4 256.4 — — (243.0) 27.8 Inventory and land option charges 4.9 0.7 — — — 5.6 5,238.5 257.1 — — (283.0) 5,212.6 Selling, general and administrative expense 502.0 16.9 127.0 9.6 0.2 655.7 Loss on extinguishment of debt — 18.1 — — — 18.1 Other (income) expense (7.1) (0.3) (8.6) (1.4) — (17.4) Income before income taxes $ 1,336.9 $ 21.1 $ 70.3 $ 7.7 $ (20.4) $ 1,415.6 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) Homebuilding segment other revenues and other cost of sales include the sale of a single-family rental community for $23.1 million in revenues and $11.4 million of gross profit. Nine Months Ended June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 18,909.2 $ — $ — $ — $ — $ 18,909.2 Land/lot sales and other (4) 67.4 907.1 — 45.9 (865.8) 154.6 Financial services — — 601.1 — — 601.1 18,976.6 907.1 601.1 45.9 (865.8) 19,664.9 Cost of sales Home sales (3) 14,196.3 — — — (103.3) 14,093.0 Land/lot sales and other (4) 40.9 752.2 — — (707.7) 85.4 Inventory and land option charges 16.0 1.6 — — — 17.6 14,253.2 753.8 — — (811.0) 14,196.0 Selling, general and administrative expense 1,422.7 48.7 360.4 30.9 0.5 1,863.2 Gain on sale of assets (5) (13.1) — — (0.9) — (14.0) Loss on extinguishment of debt — 18.1 — — — 18.1 Other (income) expense (10.4) (1.4) (21.4) 5.8 (0.8) (28.2) Income before income taxes $ 3,324.2 $ 87.9 $ 262.1 $ 10.1 $ (54.5) $ 3,629.8 Summary Cash Flow Information: Depreciation and amortization $ 44.2 $ 0.3 $ 1.3 $ 10.5 $ 0.4 $ 56.7 Cash provided by (used in) operating activities $ 276.1 $ (340.6) $ 96.2 $ (58.2) $ (8.0) $ (34.5) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) Homebuilding segment other revenues and other cost of sales include the third quarter sale of a single-family rental community for $23.1 million in revenues and $11.4 million of gross profit. (5) In December 2020, the Company sold a single-family rental community for $31.8 million, which resulted in a gain on sale of $13.1 million in the homebuilding segment and $0.9 million in the other businesses. Three Months Ended June 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 5,207.6 $ — $ — $ — $ — $ 5,207.6 Land/lot sales and other 14.5 177.9 — 8.9 (175.5) 25.8 Financial services — — 156.6 — — 156.6 5,222.1 177.9 156.6 8.9 (175.5) 5,390.0 Cost of sales Home sales (3) 4,082.3 — — — (16.8) 4,065.5 Land/lot sales and other 10.2 157.0 — — (153.0) 14.2 Inventory and land option charges 4.9 0.1 — — — 5.0 4,097.4 157.1 — — (169.8) 4,084.7 Selling, general and administrative expense 415.1 11.2 93.9 7.1 0.2 527.5 Other (income) expense (0.2) (0.7) (6.1) 2.4 — (4.6) Income (loss) before income taxes $ 709.8 $ 10.3 $ 68.8 $ (0.6) $ (5.9) $ 782.4 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Nine Months Ended June 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 13,434.2 $ — $ — $ — $ — $ 13,434.2 Land/lot sales and other 49.7 584.3 — 27.2 (548.6) 112.6 Financial services — — 364.0 — — 364.0 13,483.9 584.3 364.0 27.2 (548.6) 13,910.8 Cost of sales Home sales (3) 10,569.2 — — — (34.4) 10,534.8 Land/lot sales and other 34.9 509.8 — — (477.6) 67.1 Inventory and land option charges 17.3 0.5 — — — 17.8 10,621.4 510.3 — — (512.0) 10,619.7 Selling, general and administrative expense 1,135.3 32.8 257.7 23.9 0.4 1,450.1 Gain on sale of assets (4) — (0.1) — (59.4) — (59.5) Other (income) expense (9.7) (4.8) (17.7) 5.8 — (26.4) Income before income taxes $ 1,736.9 $ 46.1 $ 124.0 $ 56.9 $ (37.0) $ 1,926.9 Summary Cash Flow Information: Depreciation and amortization $ 49.8 $ 0.2 $ 1.2 $ 5.8 $ 0.4 $ 57.4 Cash provided by (used in) operating activities $ 1,157.0 $ (205.7) $ (347.7) $ 2.1 $ (16.8) $ 588.9 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) In the nine months ended June 30, 2020, the Company sold two multi-family rental properties for a total of $128.5 million, which resulted in gains on sale totaling $59.4 million in the other businesses. Homebuilding Inventories by Reporting Segment (1) June 30, September 30, (In millions) East (2) $ 1,605.6 $ 1,328.3 Midwest (2) 1,225.9 958.5 Southeast (2) 3,510.6 2,919.9 South Central (2) 3,824.6 2,879.9 Southwest (2) 955.7 695.8 West (2) 2,536.6 2,009.1 Corporate and unallocated (3) 211.2 223.5 $ 13,870.2 $ 11,015.0 ____________________________ (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) Single-family rental properties included in homebuilding inventories at June 30, 2021 totaled $303.1 million, of which $31.7 million were in the East region, $20.2 million were in the Midwest region, $156.3 million were in the Southeast region, $33.5 million were in the South Central region, $25.5 million were in the Southwest region and $35.9 million were in the West region. (3) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Revenues East $ 1,032.7 $ 736.3 $ 2,703.4 $ 1,836.5 Midwest 514.6 373.3 1,396.1 964.6 Southeast 2,300.1 1,629.1 6,133.4 4,096.4 South Central 1,709.8 1,376.4 4,688.8 3,401.5 Southwest 291.0 216.1 766.7 626.8 West 1,222.1 890.9 3,288.2 2,558.1 $ 7,070.3 $ 5,222.1 $ 18,976.6 $ 13,483.9 Inventory and Land Option Charges East $ 1.4 $ 0.2 $ 2.7 $ (0.1) Midwest 0.5 0.4 0.7 1.9 Southeast 1.0 2.0 8.8 6.3 South Central 1.5 1.9 2.1 6.3 Southwest — 0.1 0.4 0.1 West 0.5 0.3 1.3 2.8 $ 4.9 $ 4.9 $ 16.0 $ 17.3 Income before Income Taxes East $ 190.3 $ 106.9 $ 468.8 $ 240.1 Midwest 67.2 34.1 177.3 76.4 Southeast 465.3 233.5 1,147.8 567.4 South Central 323.1 201.8 854.6 490.7 Southwest 46.7 29.7 124.8 95.0 West 244.3 103.8 550.9 267.3 $ 1,336.9 $ 709.8 $ 3,324.2 $ 1,736.9 |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2021 | |
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. As of June 30, 2021, the Company determined that no communities were impaired, and no impairment charges were recorded during the three months ended June 30, 2021. During the nine months ended June 30, 2021, impairment charges totaled $5.6 million. There were no impairment charges recorded in the prior year quarter and $1.7 million of impairment charges recorded in the nine months ended June 30, 2020. During the three and nine months ended June 30, 2021, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $5.6 million and $12.0 million, respectively, compared to $5.0 million and $16.1 million in the same periods of fiscal 2020. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations. |
Notes Payable
Notes Payable | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE The Company’s notes payable at their carrying amounts consist of the following: June 30, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 364-day revolving credit facility (1) — — 2.55% senior notes due 2020 (2) — 399.8 4.375% senior notes due 2022 (2) 349.5 349.2 4.75% senior notes due 2023 (2) 299.5 299.2 5.75% senior notes due 2023 (2) 399.0 398.7 2.5% senior notes due 2024 (2) 497.1 496.5 2.6% senior notes due 2025 (2) 496.0 495.1 1.4% senior notes due 2027 (2) 494.7 — Other secured notes (3) 82.8 71.1 2,618.6 2,509.6 Forestar: Unsecured: Revolving credit facility — — 8.0% senior notes due 2024 (4)(5) — 345.2 3.85% senior notes due 2026 (5) 395.2 — 5.0% senior notes due 2028 (5) 296.4 295.9 Other secured notes 12.5 — 704.1 641.1 Financial Services: Mortgage repurchase facility 1,093.6 1,132.6 $ 4,416.3 $ 4,283.3 ____________________________ (1) The Company’s $375 million 364-day senior unsecured homebuilding revolving credit facility was not renewed upon its maturity on May 27, 2021. (2) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $12.3 million and $10.7 million at June 30, 2021 and September 30, 2020, respectively. (3) Homebuilding other secured notes excludes $1.4 million and $4.8 million of earnest money notes payable due to Forestar at June 30, 2021 and September 30, 2020, respectively. These intercompany notes are eliminated in consolidation. (4) Forestar’s 8.0% senior notes due April 15, 2024 were redeemed in May 2021. (5) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $8.4 million and $8.9 million at June 30, 2021 and September 30, 2020, respectively. Homebuilding: In April 2021, the Company’s senior unsecured homebuilding revolving credit facility was amended to increase its capacity to $2.19 billion with an uncommitted accordion feature that could increase the size of the facility to $3.0 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 LIBOR plus an applicable margin, as defined in the credit agreement governing the facility. The maturity date of the facility was extended to April 20, 2026. At June 30, 2021, there were no borrowings outstanding and $159.3 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $2.03 billion. 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 indentures governing the senior notes also impose restrictions on the creation of secured debt and liens. At June 30, 2021, 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 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 2020, the Company issued $500 million principal amount of 1.4% senior notes due October 15, 2027, 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 1.6%. In December 2020, the Company repaid $400 million principal amount of its 2.55% senior notes at maturity. 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 June 30, 2021. Forestar: In April 2021, Forestar’s senior unsecured revolving credit facility was amended to increase its capacity to $410 million with an uncommitted accordion feature that could increase the size of the facility to $600 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 calculation 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. The maturity date of the facility was extended to April 16, 2025. Borrowings and repayments under the facility were $25 million each during the nine months ended June 30, 2021. At June 30, 2021, there were no borrowings outstanding and $60.2 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $349.8 million. 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 June 30, 2021, Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. In April 2021, Forestar issued $400 million principal amount of 3.85% senior notes that mature May 15, 2026 with interest payable semi-annually. The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 4.1%. The net proceeds from this issuance were primarily used to redeem Forestar’s $350 million principal amount of 8.0% senior notes due 2024 in May 2021. The redemption price of $365.6 million included a call premium of $14.0 million and accrued and unpaid interest of $1.6 million. Forestar recognized an $18.1 million loss on extinguishment of debt upon redemption of the notes. Forestar’s revolving credit facility and its senior notes are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. At June 30, 2021, Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and senior note obligations. Effective April 30, 2020, Forestar’s Board of Directors authorized the repurchase of up to $30 million of Forestar’s debt securities. The authorization has no expiration date. All of the $30 million authorization was remaining at June 30, 2021. 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 $1.4 billion; however, the capacity increases, without requiring additional commitments, to $1.6 billion for approximately 30 days at each quarter end and 45 days at fiscal year end. The capacity of the facility can also be increased to $1.8 billion, subject to the availability of additional commitments. Through additional commitments, the total capacity of the facility was temporarily increased to $1.6 billion effective June 11, 2021 through November 4, 2021. During this period, the capacity increases, without requiring additional commitments, to $1.8 billion for approximately 30 days at the end of the third quarter and for 45 days at fiscal year end. The maturity date of the facility is February 18, 2022. As of June 30, 2021, $1.5 billion of mortgage loans held for sale with a collateral value of $1.5 billion were pledged under the mortgage repurchase facility. As a result of advance paydowns totaling $410.2 million, DHI Mortgage had an obligation of $1.1 billion outstanding under the mortgage repurchase facility at June 30, 2021 at a 2.1% annual interest rate. The mortgage repurchase facility is not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable leverage ratio and its minimum required liquidity. These covenants are measured and reported to the lenders monthly. At June 30, 2021, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. |
Capitalized Interest
Capitalized Interest | 9 Months Ended |
Jun. 30, 2021 | |
Interest Costs Incurred [Abstract] | |
CAPITALIZED INTEREST | CAPITALIZED INTEREST The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During the first nine months of fiscal 2021 and fiscal 2020, the Company’s active inventory exceeded its debt level, and all interest incurred was capitalized to inventory. The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and nine months ended June 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Capitalized interest, beginning of period $ 218.6 $ 200.5 $ 207.7 $ 180.1 Interest incurred (1) 37.7 38.0 116.0 113.3 Interest charged to cost of sales (35.4) (32.8) (102.8) (87.7) Capitalized interest, end of period $ 220.9 $ 205.7 $ 220.9 $ 205.7 __________________ (1) Interest incurred includes interest on the Company's mortgage repurchase facility of $4.7 million and $13.0 million in the three and nine months ended June 30, 2021, respectively, and $4.3 million and $14.0 million in the same periods of fiscal 2020. Also included in interest incurred is Forestar interest of $10.3 million and $33.3 million in the three and nine months ended June 30, 2021, respectively, and $11.4 million and $29.8 million in the same periods of fiscal 2020. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and September 30, 2020 are summarized below. June 30, September 30, (In millions) Homebuilding Buildings and improvements $ 277.0 $ 267.4 Model home furniture 133.9 134.0 Office furniture and equipment 105.6 108.1 Land 32.2 32.3 Single-family rental properties (1) Single-family rental properties — 68.1 Land — 19.1 Total single-family rental properties — 87.2 Accumulated depreciation (268.4) (256.2) Total homebuilding 280.3 372.8 Other Businesses Multi-family rental properties (1) Multi-family rental properties — 173.8 Land — 58.3 Total multi-family rental properties — 232.1 Oil and gas related assets 75.1 69.7 Office furniture and equipment 16.5 15.6 Land 16.1 19.7 Accumulated depreciation (26.6) (28.2) Total other businesses 81.1 308.9 Forestar, net 2.2 1.1 Financial services, net 3.4 3.9 Eliminations — (3.0) Property and equipment, net $ 367.0 $ 683.7 __________________ (1) Assets related to single-family and multi-family rental properties totaling $303.1 million and $436.3 million, respectively, are recorded as rental property inventory in the current year period. Depreciation expense was $14.7 million and $49.5 million during the three and nine months ended June 30, 2021, respectively, compared to $17.1 million and $51.6 million in the same periods of fiscal 2020. |
Mortgage Loans
Mortgage Loans | 9 Months Ended |
Jun. 30, 2021 | |
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. The Company typically sells the servicing rights for the majority of loans when the loans are sold. Servicing rights retained are typically sold within six months of loan origination. At June 30, 2021, mortgage loans held for sale had an aggregate carrying value of $1.64 billion and an aggregate outstanding principal balance of $1.60 billion. At September 30, 2020, mortgage loans held for sale had an aggregate carrying value of $1.53 billion and an aggregate outstanding principal balance of $1.46 billion. During the nine months ended June 30, 2021 and 2020, mortgage loans originated totaled $11.5 billion and $8.4 billion, respectively, and mortgage loans sold totaled $11.4 billion and $8.0 billion, respectively. The Company had gains on sales of loans and servicing rights of $135.4 million and $453.0 million during the three and nine months ended June 30, 2021, respectively, compared to $116.7 million and $263.7 million in the prior year periods. Net gains on sales of loans and servicing rights are included in revenues in the consolidated statements of operations. During the nine months ended June 30, 2021, approximately 55% of the Company’s mortgage loans were sold directly to the Federal National Mortgage Association (Fannie Mae) or into securities backed by the Government National Mortgage Association (Ginnie Mae), and 37% were sold to two other major financial entities. The Company also uses hedging instruments as part of a program to offer below market interest rate financing to its homebuyers. At June 30, 2021 and September 30, 2020, the Company had mortgage-backed securities (MBS) totaling $862.4 million and $1.1 billion, respectively, that did not yet have interest rate lock commitments or closed loans created or assigned and recorded a liability of $1.9 million and $5.3 million, respectively, for the fair value of such MBS position. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense for the three and nine months ended June 30, 2021 was $299.1 million and $784.1 million, respectively, compared to $149.5 million and $377.6 million in the prior year periods. The effective tax rate was 21.1% and 21.6% for the three and nine months ended June 30, 2021 compared to 19.1% and 19.6% in the prior year periods. The effective tax rates for all periods include an expense for state income taxes and tax benefits related to stock-based compensation and the federal energy efficient homes tax credit. For the three and nine months ended June 30, 2020, the fiscal 2020 retroactive reinstatement of the federal energy efficient homes tax credit reduced the effective tax rate by 3.1% and 2.8%, respectively. For the three and nine months ended June 30, 2021, a change in the estimate of homes qualifying for the fiscal 2020 energy efficient tax credit and the retroactive extension of the energy efficient tax credit reduced the effective tax rate by 1.9% and 0.9%, respectively. The Company’s deferred tax assets, net of deferred tax liabilities, were $154.4 million at June 30, 2021 compared to $152.4 million at September 30, 2020. The Company has a valuation allowance of $7.3 million and $7.5 million at June 30, 2021 and September 30, 2020, respectively, 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 | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the numerators and denominators used in the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 1,115.5 $ 630.7 $ 2,836.8 $ 1,544.7 Denominator: Denominator for basic earnings per share — weighted average common shares 359.7 363.8 362.2 366.0 Effect of dilutive securities: Employee stock awards 4.3 3.9 4.9 4.4 Denominator for diluted earnings per share — adjusted weighted average common shares 364.0 367.7 367.1 370.4 Basic net income per common share attributable to D.R. Horton, Inc. $ 3.10 $ 1.73 $ 7.83 $ 4.22 Diluted net income per common share attributable to D.R. Horton, Inc. $ 3.06 $ 1.72 $ 7.73 $ 4.17 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2021 | |
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, of which $100 million was reserved for sales under its at-the-market equity offering program that became effective in August 2020. During the nine months ended June 30, 2021, Forestar issued 1.4 million shares of common stock under its at-the-market equity offering program for proceeds of $32.6 million, net of commissions and other issuance costs. At June 30, 2021, $361.0 million remained available for issuance under Forestar’s shelf registration statement, of which $66.7 million is reserved for sales under its at-the-market equity offering program. Effective April 20, 2021, the Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s common stock, replacing the prior authorization. The authorization has no expiration date. The Company repurchased 2.6 million shares of its common stock for $241.2 million during the current quarter for a total of 8.1 million shares repurchased for $661.4 million during the nine months ended June 30, 2021. At June 30, 2021, there was $758.8 million remaining on the repurchase authorization. During each of the first three quarters of fiscal 2021, the Board of Directors approved and paid quarterly cash dividends of $0.20 per common share, the most recent of which was paid on May 20, 2021 to stockholders of record on May 10, 2021. In July 2021, the Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable on August 17, 2021 to stockholders of record on August 10, 2021. Cash dividends of $0.175 per common share were approved and paid in each quarter of fiscal 2020. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Jun. 30, 2021 | |
Compensation Related Costs [Abstract] | |
Compensation Related Costs, General | 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 2020, the Company granted 360,000 performance-based RSU equity awards to its executive officers. These awards vest at the end of a three During the nine months ended June 30, 2021, the Company granted approximately 860,000 time-based RSUs to 1,030 recipients, including executive officers, other key employees and non-management directors. The weighted average grant date fair value of these equity awards was $83.13 per unit, and they vest annually in equal installments over periods of three to five years. Compensation expense related to these grants was $4.0 million and $9.5 million in the three and nine months ended June 30, 2021, respectively. Compensation expense in the nine month period included $4.8 million of expense recognized for employees that were retirement eligible on the date of grant. Total stock-based compensation expense related to the Company’s performance-based and time-based restricted stock units was $21.4 million and $66.6 million during the three and nine months ended June 30, 2021, respectively, compared to $20.4 million and $56.6 million during the three and nine months ended June 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Warranty Claims The Company provides its homebuyers with a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty on major mechanical systems and a one-year limited warranty on other construction components. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates and is adjusted to reflect qualitative risks associated with the types of homes built and the geographic areas in which they are built. Changes in the Company’s warranty liability during the three and nine months ended June 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Warranty liability, beginning of period $ 340.7 $ 262.7 $ 310.2 $ 247.3 Warranties issued 41.8 29.4 111.5 75.1 Changes in liability for pre-existing warranties 1.7 5.7 5.4 14.0 Settlements made (22.7) (16.5) (65.6) (55.1) Warranty liability, end of period $ 361.5 $ 281.3 $ 361.5 $ 281.3 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 $543.1 million and $473.8 million at June 30, 2021 and September 30, 2020, respectively, and are included in accrued expenses and other liabilities in the consolidated balance sheets. Approximately 99% of these reserves related to construction defect matters at both June 30, 2021 and September 30, 2020. Expenses related to the Company’s legal contingencies were $46.2 million and $41.1 million in the nine months ended June 30, 2021 and 2020, respectively. Changes in the Company’s legal claims reserves during the nine months ended June 30, 2021 and 2020 were as follows: Nine Months Ended 2021 2020 (In millions) Reserves for legal claims, beginning of period $ 473.8 $ 434.7 Increase in reserves 88.8 57.1 Payments (19.5) (30.5) Reserves for legal claims, end of period $ 543.1 $ 461.3 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. However, because the self-insured retentions under these policies are significant, the Company anticipates it will largely be self-insured. The Company’s estimated insurance receivables from estimated losses for pending legal claims and anticipated future claims related to previously closed homes totaled $98.1 million, $81.2 million and $82.4 million at June 30, 2021, September 30, 2020 and June 30, 2020, respectively, and are included in other assets in the consolidated balance sheets. 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 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 June 30, 2021, the Company’s homebuilding segment had total deposits of $999.8 million, consisting of cash deposits of $918.9 million and promissory notes and surety bonds of $80.9 million, related to contracts to purchase land and lots with a total remaining purchase price of approximately $15.0 billion. The majority of land and lots under contract are currently expected to be purchased within three years. Of these amounts, $152.7 million of the deposits related to contracts with Forestar to purchase land and lots with a remaining purchase price of $1.6 billion. A limited number of the homebuilding land and lot purchase contracts at June 30, 2021, representing $136.9 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 $136.9 million remaining purchase price subject to specific performance provisions, $67.8 million related to contracts between the homebuilding segment and Forestar. During the three and nine months ended June 30, 2021, Forestar reimbursed the homebuilding segment $3.5 million and $27.7 million, respectively, for previously paid earnest money and $14.9 million and $43.1 million, respectively, for pre-acquisition and other due diligence costs related to land purchase contracts whereby the homebuilding segment assigned its rights under contract to Forestar. During the three and nine months ended June 30, 2020, Forestar reimbursed the homebuilding segment $7.0 million and $23.2 million, respectively, for previously paid earnest money and $12.9 million and $26.2 million, respectively, for pre-acquisition and other due diligence costs. Other Commitments At June 30, 2021, the Company had outstanding surety bonds of $2.1 billion and letters of credit of $219.5 million to secure performance under various contracts. Of the total letters of credit, $159.3 million were issued under the homebuilding revolving credit facility, and $60.2 million were issued under Forestar’s revolving credit facility. |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities | 9 Months Ended |
Jun. 30, 2021 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES | OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES The Company’s other assets at June 30, 2021 and September 30, 2020 were as follows: June 30, September 30, (In millions) Earnest money and refundable deposits $ 999.8 $ 657.1 Insurance receivables 98.1 81.2 Other receivables 152.3 143.1 Prepaid assets 54.7 46.0 Interest rate lock commitments 22.1 31.3 Margin deposits 20.0 16.2 Contract assets - insurance agency commissions 54.6 47.1 Lease right of use assets 35.0 34.7 Mortgage servicing rights 14.2 17.1 Other 40.2 39.9 $ 1,491.0 $ 1,113.7 The Company’s accrued expenses and other liabilities at June 30, 2021 and September 30, 2020 were as follows: June 30, September 30, (In millions) Reserves for legal claims $ 543.1 $ 473.8 Employee compensation and related liabilities 427.8 376.1 Warranty liability 361.5 310.2 Mortgage hedging instruments and commitments 18.9 16.5 Accrued interest 34.9 35.3 Federal and state income tax liabilities 39.1 42.6 Inventory related accruals 200.5 93.9 Customer deposits 201.3 93.1 Accrued property taxes 37.8 44.1 Lease liabilities 36.5 37.0 Other 99.9 84.4 $ 2,001.3 $ 1,607.0 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2021 and September 30, 2020. Changes in the fair value of the Level 3 assets during the nine months ended June 30, 2021 and 2020 were not material. Fair Value at June 30, 2021 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 1,624.7 $ 9.4 $ 1,634.1 Mortgage servicing rights (2) Other assets — 13.9 0.3 14.2 Derivatives not designated as hedging instruments (3): Interest rate lock commitments Other assets — 22.1 — 22.1 Forward sales of mortgage-backed securities Other liabilities — (16.9) — (16.9) Fair Value at September 30, 2020 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 (1) Mortgage loans held for sale — 1,503.2 15.1 1,518.3 Mortgage servicing rights (2) Other assets — — 17.1 17.1 Derivatives not designated as hedging instruments (3): Interest rate lock commitments Other assets — 31.3 — 31.3 Forward sales of mortgage-backed securities Other liabilities — (16.2) — (16.2) ___________________ (1) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at June 30, 2021 and September 30, 2020 included $9.4 million and $15.1 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. (2) Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the Company records them at fair value using third-party Level 3 valuations unless specific investor bids are available during the subsequent sale process resulting in a Level 2 valuation. The key assumptions used in third-party Level 3 valuations, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and delinquency rates, which were 10%, 11% and 6%, respectively, at June 30, 2021 and 13%, 11% and 5%, respectively, at September 30, 2020. (3) 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 net fair value change for the three and nine months ended June 30, 2021 and 2020 recognized in revenues in the consolidated statements of operations was not significant. The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at June 30, 2021 and September 30, 2020: Fair Value at Fair Value at Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Mortgage loans held for sale (1) (2) Mortgage loans held for sale $ 0.6 $ 0.6 $ 1.5 $ 2.2 Other mortgage loans (1) (3) Other assets 2.7 1.3 0.6 2.0 Real estate owned (1) (3) Other assets — 0.2 — — ___________________ (1) 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. (2) 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). (3) The fair values of other mortgage loans and real estate owned were determined based on the value of the underlying collateral. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2021 and September 30, 2020: Carrying Value Fair Value at June 30, 2021 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 1,942.7 $ 1,942.7 $ — $ — $ 1,942.7 Restricted cash (1) 26.4 26.4 — — 26.4 Notes payable (2) (3) 4,416.3 — 3,373.9 1,188.9 4,562.8 Carrying Value Fair Value at September 30, 2020 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 3,018.5 $ 3,018.5 $ — $ — $ 3,018.5 Restricted cash (1) 21.6 21.6 — — 21.6 Notes payable (2) (3) 4,283.3 — 3,285.5 1,203.7 4,489.2 ___________________ (1) 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. (2) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (3) 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
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 64% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 36% 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, 2020, 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, 2020. Reclassifications During the third quarter of fiscal 2021, the Company changed the presentation of its single and multi-family rental operations in its consolidated financial statements. Bulk sales of rental properties are now presented as revenues and cost of sales, rental assets previously recorded as property and equipment have been reclassified to inventory, and related cash flows for the single and multi-family rental operations are now included in operating activities. Prior to the third quarter of fiscal 2021, bulk sales of rental properties were presented on a net basis as a gain on sale of assets, and the majority of the cash flow activities were included in investing activities. This change in presentation was implemented as a result of the Company’s change in strategic focus during the third quarter of fiscal 2021, which included increased levels of activity in the current quarter and plans for future investment in the Company’s single and multi-family rental operations. This presentation was effected on a prospective basis beginning in the third quarter of fiscal 2021. |
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. |
Business Combinations Policy | Business Acquisition In October 2020, the Company acquired the homebuilding operations of Braselton Homes in Corpus Christi, Texas for approximately $23.0 million in cash. The assets acquired included approximately 90 homes in inventory, 95 lots and control of approximately 840 additional lots through purchase contracts. The Company also acquired a sales order backlog of approximately 125 homes. |
Recent Accounting Pronouncements | Pending Accounting Standards In December 2019, the Financial Accounting Standards Board (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 or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect them to have a material impact on its consolidated financial statements or related disclosures. |
Reclassifications | Reclassifications During the third quarter of fiscal 2021, the Company changed the presentation of its single and multi-family rental operations in its consolidated financial statements. Bulk sales of rental properties are now presented as revenues and cost of sales, rental assets previously recorded as property and equipment have been reclassified to inventory, and related cash flows for the single and multi-family rental operations are now included in operating activities. Prior to the third quarter of fiscal 2021, bulk sales of rental properties were presented on a net basis as a gain on sale of assets, and the majority of the cash flow activities were included in investing activities. This change in presentation was implemented as a result of the Company’s change in strategic focus during the third quarter of fiscal 2021, which included increased levels of activity in the current quarter and plans for future investment in the Company’s single and multi-family rental operations. This presentation was effected on a prospective basis beginning in the third quarter of fiscal 2021. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Financial information relating to the Company’s reporting segments is as follows: June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Assets Cash and cash equivalents $ 1,673.8 $ 116.0 $ 101.1 $ 51.8 $ — $ 1,942.7 Restricted cash 11.5 — 14.6 0.3 — 26.4 Inventories: Construction in progress and finished homes 7,837.8 — — — (93.7) 7,744.1 Residential land and lots — developed and under development 5,675.4 1,777.9 — — (45.4) 7,407.9 Land held for development 30.4 83.5 — — — 113.9 Land held for sale 23.5 — — — — 23.5 Rental properties 303.1 — — 436.3 (17.1) 722.3 13,870.2 1,861.4 — 436.3 (156.2) 16,011.7 Mortgage loans held for sale — — 1,644.1 — — 1,644.1 Deferred income taxes, net 152.5 — — — (5.4) 147.1 Property and equipment, net 280.3 2.2 3.4 81.1 — 367.0 Other assets 1,381.5 35.4 122.6 62.7 (111.2) 1,491.0 Goodwill 134.3 — — — 29.2 163.5 $ 17,504.1 $ 2,015.0 $ 1,885.8 $ 632.2 $ (243.6) $ 21,793.5 Liabilities Accounts payable $ 1,171.1 $ 45.6 $ — $ 34.2 $ — $ 1,250.9 Accrued expenses and other liabilities 1,773.5 294.9 90.7 14.2 (172.0) 2,001.3 Notes payable 2,620.0 704.1 1,093.6 — (1.4) 4,416.3 $ 5,564.6 $ 1,044.6 $ 1,184.3 $ 48.4 $ (173.4) $ 7,668.5 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. September 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,551.1 $ 394.3 $ 55.6 $ 17.5 $ — $ 3,018.5 Restricted cash 9.5 — 11.9 0.2 — 21.6 Inventories: Construction in progress and finished homes 6,037.5 — — — (53.4) 5,984.1 Residential land and lots — developed and under development 4,901.4 1,304.3 — — (33.9) 6,171.8 Land held for development 47.8 5.4 — — — 53.2 Land held for sale 28.3 — — — — 28.3 11,015.0 1,309.7 — — (87.3) 12,237.4 Mortgage loans held for sale — — 1,529.0 — — 1,529.0 Deferred income taxes, net 142.3 — — — 2.6 144.9 Property and equipment, net 372.8 1.1 3.9 308.9 (3.0) 683.7 Other assets 996.4 34.8 125.8 52.8 (96.1) 1,113.7 Goodwill 134.3 — — — 29.2 163.5 $ 15,221.4 $ 1,739.9 $ 1,726.2 $ 379.4 $ (154.6) $ 18,912.3 Liabilities Accounts payable $ 859.3 $ 29.2 $ — $ 12.0 $ — $ 900.5 Accrued expenses and other liabilities 1,438.3 197.8 86.8 12.2 (128.1) 1,607.0 Notes payable 2,514.4 641.1 1,132.6 — (4.8) 4,283.3 $ 4,812.0 $ 868.1 $ 1,219.4 $ 24.2 $ (132.9) $ 6,790.8 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. Three Months Ended June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 7,040.1 $ — $ — $ — $ — $ 7,040.1 Land/lot sales and other (4) 30.2 312.9 — 15.9 (303.2) 55.8 Financial services — — 188.7 — — 188.7 7,070.3 312.9 188.7 15.9 (303.2) 7,284.6 Cost of sales Home sales (3) 5,219.2 — — — (40.0) 5,179.2 Land/lot sales and other (4) 14.4 256.4 — — (243.0) 27.8 Inventory and land option charges 4.9 0.7 — — — 5.6 5,238.5 257.1 — — (283.0) 5,212.6 Selling, general and administrative expense 502.0 16.9 127.0 9.6 0.2 655.7 Loss on extinguishment of debt — 18.1 — — — 18.1 Other (income) expense (7.1) (0.3) (8.6) (1.4) — (17.4) Income before income taxes $ 1,336.9 $ 21.1 $ 70.3 $ 7.7 $ (20.4) $ 1,415.6 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) Homebuilding segment other revenues and other cost of sales include the sale of a single-family rental community for $23.1 million in revenues and $11.4 million of gross profit. Nine Months Ended June 30, 2021 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 18,909.2 $ — $ — $ — $ — $ 18,909.2 Land/lot sales and other (4) 67.4 907.1 — 45.9 (865.8) 154.6 Financial services — — 601.1 — — 601.1 18,976.6 907.1 601.1 45.9 (865.8) 19,664.9 Cost of sales Home sales (3) 14,196.3 — — — (103.3) 14,093.0 Land/lot sales and other (4) 40.9 752.2 — — (707.7) 85.4 Inventory and land option charges 16.0 1.6 — — — 17.6 14,253.2 753.8 — — (811.0) 14,196.0 Selling, general and administrative expense 1,422.7 48.7 360.4 30.9 0.5 1,863.2 Gain on sale of assets (5) (13.1) — — (0.9) — (14.0) Loss on extinguishment of debt — 18.1 — — — 18.1 Other (income) expense (10.4) (1.4) (21.4) 5.8 (0.8) (28.2) Income before income taxes $ 3,324.2 $ 87.9 $ 262.1 $ 10.1 $ (54.5) $ 3,629.8 Summary Cash Flow Information: Depreciation and amortization $ 44.2 $ 0.3 $ 1.3 $ 10.5 $ 0.4 $ 56.7 Cash provided by (used in) operating activities $ 276.1 $ (340.6) $ 96.2 $ (58.2) $ (8.0) $ (34.5) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) Homebuilding segment other revenues and other cost of sales include the third quarter sale of a single-family rental community for $23.1 million in revenues and $11.4 million of gross profit. (5) In December 2020, the Company sold a single-family rental community for $31.8 million, which resulted in a gain on sale of $13.1 million in the homebuilding segment and $0.9 million in the other businesses. Three Months Ended June 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 5,207.6 $ — $ — $ — $ — $ 5,207.6 Land/lot sales and other 14.5 177.9 — 8.9 (175.5) 25.8 Financial services — — 156.6 — — 156.6 5,222.1 177.9 156.6 8.9 (175.5) 5,390.0 Cost of sales Home sales (3) 4,082.3 — — — (16.8) 4,065.5 Land/lot sales and other 10.2 157.0 — — (153.0) 14.2 Inventory and land option charges 4.9 0.1 — — — 5.0 4,097.4 157.1 — — (169.8) 4,084.7 Selling, general and administrative expense 415.1 11.2 93.9 7.1 0.2 527.5 Other (income) expense (0.2) (0.7) (6.1) 2.4 — (4.6) Income (loss) before income taxes $ 709.8 $ 10.3 $ 68.8 $ (0.6) $ (5.9) $ 782.4 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Nine Months Ended June 30, 2020 Homebuilding Forestar (1) Financial Services Other Eliminations and Other Adjustments (2) Consolidated (In millions) Revenues Home sales $ 13,434.2 $ — $ — $ — $ — $ 13,434.2 Land/lot sales and other 49.7 584.3 — 27.2 (548.6) 112.6 Financial services — — 364.0 — — 364.0 13,483.9 584.3 364.0 27.2 (548.6) 13,910.8 Cost of sales Home sales (3) 10,569.2 — — — (34.4) 10,534.8 Land/lot sales and other 34.9 509.8 — — (477.6) 67.1 Inventory and land option charges 17.3 0.5 — — — 17.8 10,621.4 510.3 — — (512.0) 10,619.7 Selling, general and administrative expense 1,135.3 32.8 257.7 23.9 0.4 1,450.1 Gain on sale of assets (4) — (0.1) — (59.4) — (59.5) Other (income) expense (9.7) (4.8) (17.7) 5.8 — (26.4) Income before income taxes $ 1,736.9 $ 46.1 $ 124.0 $ 56.9 $ (37.0) $ 1,926.9 Summary Cash Flow Information: Depreciation and amortization $ 49.8 $ 0.2 $ 1.2 $ 5.8 $ 0.4 $ 57.4 Cash provided by (used in) operating activities $ 1,157.0 $ (205.7) $ (347.7) $ 2.1 $ (16.8) $ 588.9 ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. (3) Amount in the Eliminations and Other Adjustments column represents the recognition of 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. (4) In the nine months ended June 30, 2020, the Company sold two multi-family rental properties for a total of $128.5 million, which resulted in gains on sale totaling $59.4 million in the other businesses. Homebuilding Inventories by Reporting Segment (1) June 30, September 30, (In millions) East (2) $ 1,605.6 $ 1,328.3 Midwest (2) 1,225.9 958.5 Southeast (2) 3,510.6 2,919.9 South Central (2) 3,824.6 2,879.9 Southwest (2) 955.7 695.8 West (2) 2,536.6 2,009.1 Corporate and unallocated (3) 211.2 223.5 $ 13,870.2 $ 11,015.0 ____________________________ (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) Single-family rental properties included in homebuilding inventories at June 30, 2021 totaled $303.1 million, of which $31.7 million were in the East region, $20.2 million were in the Midwest region, $156.3 million were in the Southeast region, $33.5 million were in the South Central region, $25.5 million were in the Southwest region and $35.9 million were in the West region. (3) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Revenues East $ 1,032.7 $ 736.3 $ 2,703.4 $ 1,836.5 Midwest 514.6 373.3 1,396.1 964.6 Southeast 2,300.1 1,629.1 6,133.4 4,096.4 South Central 1,709.8 1,376.4 4,688.8 3,401.5 Southwest 291.0 216.1 766.7 626.8 West 1,222.1 890.9 3,288.2 2,558.1 $ 7,070.3 $ 5,222.1 $ 18,976.6 $ 13,483.9 Inventory and Land Option Charges East $ 1.4 $ 0.2 $ 2.7 $ (0.1) Midwest 0.5 0.4 0.7 1.9 Southeast 1.0 2.0 8.8 6.3 South Central 1.5 1.9 2.1 6.3 Southwest — 0.1 0.4 0.1 West 0.5 0.3 1.3 2.8 $ 4.9 $ 4.9 $ 16.0 $ 17.3 Income before Income Taxes East $ 190.3 $ 106.9 $ 468.8 $ 240.1 Midwest 67.2 34.1 177.3 76.4 Southeast 465.3 233.5 1,147.8 567.4 South Central 323.1 201.8 854.6 490.7 Southwest 46.7 29.7 124.8 95.0 West 244.3 103.8 550.9 267.3 $ 1,336.9 $ 709.8 $ 3,324.2 $ 1,736.9 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of notes payable at principal amounts, net of unamortized discounts | The Company’s notes payable at their carrying amounts consist of the following: June 30, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 364-day revolving credit facility (1) — — 2.55% senior notes due 2020 (2) — 399.8 4.375% senior notes due 2022 (2) 349.5 349.2 4.75% senior notes due 2023 (2) 299.5 299.2 5.75% senior notes due 2023 (2) 399.0 398.7 2.5% senior notes due 2024 (2) 497.1 496.5 2.6% senior notes due 2025 (2) 496.0 495.1 1.4% senior notes due 2027 (2) 494.7 — Other secured notes (3) 82.8 71.1 2,618.6 2,509.6 Forestar: Unsecured: Revolving credit facility — — 8.0% senior notes due 2024 (4)(5) — 345.2 3.85% senior notes due 2026 (5) 395.2 — 5.0% senior notes due 2028 (5) 296.4 295.9 Other secured notes 12.5 — 704.1 641.1 Financial Services: Mortgage repurchase facility 1,093.6 1,132.6 $ 4,416.3 $ 4,283.3 ____________________________ (1) The Company’s $375 million 364-day senior unsecured homebuilding revolving credit facility was not renewed upon its maturity on May 27, 2021. (2) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $12.3 million and $10.7 million at June 30, 2021 and September 30, 2020, respectively. (3) Homebuilding other secured notes excludes $1.4 million and $4.8 million of earnest money notes payable due to Forestar at June 30, 2021 and September 30, 2020, respectively. These intercompany notes are eliminated in consolidation. (4) Forestar’s 8.0% senior notes due April 15, 2024 were redeemed in May 2021. (5) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $8.4 million and $8.9 million at June 30, 2021 and September 30, 2020, respectively. |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Interest Costs Incurred [Abstract] | |
Rollforward of capitalized interest | The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and nine months ended June 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Capitalized interest, beginning of period $ 218.6 $ 200.5 $ 207.7 $ 180.1 Interest incurred (1) 37.7 38.0 116.0 113.3 Interest charged to cost of sales (35.4) (32.8) (102.8) (87.7) Capitalized interest, end of period $ 220.9 $ 205.7 $ 220.9 $ 205.7 __________________ (1) Interest incurred includes interest on the Company's mortgage repurchase facility of $4.7 million and $13.0 million in the three and nine months ended June 30, 2021, respectively, and $4.3 million and $14.0 million in the same periods of fiscal 2020. Also included in interest incurred is Forestar interest of $10.3 million and $33.3 million in the three and nine months ended June 30, 2021, respectively, and $11.4 million and $29.8 million in the same periods of fiscal 2020. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property and equipment balances and the related accumulated depreciation at June 30, 2021 and September 30, 2020 are summarized below. June 30, September 30, (In millions) Homebuilding Buildings and improvements $ 277.0 $ 267.4 Model home furniture 133.9 134.0 Office furniture and equipment 105.6 108.1 Land 32.2 32.3 Single-family rental properties (1) Single-family rental properties — 68.1 Land — 19.1 Total single-family rental properties — 87.2 Accumulated depreciation (268.4) (256.2) Total homebuilding 280.3 372.8 Other Businesses Multi-family rental properties (1) Multi-family rental properties — 173.8 Land — 58.3 Total multi-family rental properties — 232.1 Oil and gas related assets 75.1 69.7 Office furniture and equipment 16.5 15.6 Land 16.1 19.7 Accumulated depreciation (26.6) (28.2) Total other businesses 81.1 308.9 Forestar, net 2.2 1.1 Financial services, net 3.4 3.9 Eliminations — (3.0) Property and equipment, net $ 367.0 $ 683.7 __________________ (1) Assets related to single-family and multi-family rental properties totaling $303.1 million and $436.3 million, respectively, are recorded as rental property inventory in the current year period. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Numerator and denominator used to compute basic and diluted earnings per share | The following table sets forth the numerators and denominators used in the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 1,115.5 $ 630.7 $ 2,836.8 $ 1,544.7 Denominator: Denominator for basic earnings per share — weighted average common shares 359.7 363.8 362.2 366.0 Effect of dilutive securities: Employee stock awards 4.3 3.9 4.9 4.4 Denominator for diluted earnings per share — adjusted weighted average common shares 364.0 367.7 367.1 370.4 Basic net income per common share attributable to D.R. Horton, Inc. $ 3.10 $ 1.73 $ 7.83 $ 4.22 Diluted net income per common share attributable to D.R. Horton, Inc. $ 3.06 $ 1.72 $ 7.73 $ 4.17 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in warranty liability | Changes in the Company’s warranty liability during the three and nine months ended June 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In millions) Warranty liability, beginning of period $ 340.7 $ 262.7 $ 310.2 $ 247.3 Warranties issued 41.8 29.4 111.5 75.1 Changes in liability for pre-existing warranties 1.7 5.7 5.4 14.0 Settlements made (22.7) (16.5) (65.6) (55.1) Warranty liability, end of period $ 361.5 $ 281.3 $ 361.5 $ 281.3 |
Changes in legal claims reserves | Changes in the Company’s legal claims reserves during the nine months ended June 30, 2021 and 2020 were as follows: Nine Months Ended 2021 2020 (In millions) Reserves for legal claims, beginning of period $ 473.8 $ 434.7 Increase in reserves 88.8 57.1 Payments (19.5) (30.5) Reserves for legal claims, end of period $ 543.1 $ 461.3 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Other assets | The Company’s other assets at June 30, 2021 and September 30, 2020 were as follows: June 30, September 30, (In millions) Earnest money and refundable deposits $ 999.8 $ 657.1 Insurance receivables 98.1 81.2 Other receivables 152.3 143.1 Prepaid assets 54.7 46.0 Interest rate lock commitments 22.1 31.3 Margin deposits 20.0 16.2 Contract assets - insurance agency commissions 54.6 47.1 Lease right of use assets 35.0 34.7 Mortgage servicing rights 14.2 17.1 Other 40.2 39.9 $ 1,491.0 $ 1,113.7 |
Accrued expenses and other liabilities | The Company’s accrued expenses and other liabilities at June 30, 2021 and September 30, 2020 were as follows: June 30, September 30, (In millions) Reserves for legal claims $ 543.1 $ 473.8 Employee compensation and related liabilities 427.8 376.1 Warranty liability 361.5 310.2 Mortgage hedging instruments and commitments 18.9 16.5 Accrued interest 34.9 35.3 Federal and state income tax liabilities 39.1 42.6 Inventory related accruals 200.5 93.9 Customer deposits 201.3 93.1 Accrued property taxes 37.8 44.1 Lease liabilities 36.5 37.0 Other 99.9 84.4 $ 2,001.3 $ 1,607.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities on a recurring basis | The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2021 and September 30, 2020. Changes in the fair value of the Level 3 assets during the nine months ended June 30, 2021 and 2020 were not material. Fair Value at June 30, 2021 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 1,624.7 $ 9.4 $ 1,634.1 Mortgage servicing rights (2) Other assets — 13.9 0.3 14.2 Derivatives not designated as hedging instruments (3): Interest rate lock commitments Other assets — 22.1 — 22.1 Forward sales of mortgage-backed securities Other liabilities — (16.9) — (16.9) Fair Value at September 30, 2020 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 (1) Mortgage loans held for sale — 1,503.2 15.1 1,518.3 Mortgage servicing rights (2) Other assets — — 17.1 17.1 Derivatives not designated as hedging instruments (3): Interest rate lock commitments Other assets — 31.3 — 31.3 Forward sales of mortgage-backed securities Other liabilities — (16.2) — (16.2) ___________________ (1) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at June 30, 2021 and September 30, 2020 included $9.4 million and $15.1 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. (2) Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the Company records them at fair value using third-party Level 3 valuations unless specific investor bids are available during the subsequent sale process resulting in a Level 2 valuation. The key assumptions used in third-party Level 3 valuations, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and delinquency rates, which were 10%, 11% and 6%, respectively, at June 30, 2021 and 13%, 11% and 5%, respectively, at September 30, 2020. (3) 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 net fair value change for the three and nine months ended June 30, 2021 and 2020 recognized in revenues in the consolidated statements of operations was not significant. |
Fair value measurements of assets on a non-recurring basis | The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at June 30, 2021 and September 30, 2020: Fair Value at Fair Value at Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Mortgage loans held for sale (1) (2) Mortgage loans held for sale $ 0.6 $ 0.6 $ 1.5 $ 2.2 Other mortgage loans (1) (3) Other assets 2.7 1.3 0.6 2.0 Real estate owned (1) (3) Other assets — 0.2 — — ___________________ (1) 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. (2) 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). (3) The fair values of other mortgage loans and real estate owned were determined based on the value of the underlying collateral. |
Carrying values and fair values of financial assets and liabilities not reflected at fair value | For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2021 and September 30, 2020: Carrying Value Fair Value at June 30, 2021 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 1,942.7 $ 1,942.7 $ — $ — $ 1,942.7 Restricted cash (1) 26.4 26.4 — — 26.4 Notes payable (2) (3) 4,416.3 — 3,373.9 1,188.9 4,562.8 Carrying Value Fair Value at September 30, 2020 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 3,018.5 $ 3,018.5 $ — $ — $ 3,018.5 Restricted cash (1) 21.6 21.6 — — 21.6 Notes payable (2) (3) 4,283.3 — 3,285.5 1,203.7 4,489.2 ___________________ (1) 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. (2) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (3) 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. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2020USD ($)Home | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 64.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 36.00% | ||
Payments related to business acquisitions | $ | $ 23 | $ 24.4 | $ 8.5 |
Business Acquisition, Number of Homes Acquired | 90 | ||
Business Acquisition, Number of Finished Lots Acquired | 95 | ||
Business Acquisition, Number of Lots Under Option Contracts | 840 | ||
Business Acquisition, Sales Order Backlog Acquired | 125 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021USD ($)HomeMarketOperatingDivisionsProjectsSegmentsState | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)HomeMarketProjectsState | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)Home | |
Segment Reporting Information [Line Items] | ||||||
Gain (Loss) on Sale of Properties | $ 0 | $ 0 | $ 14 | $ 59.5 | ||
Total assets | 21,793.5 | 21,793.5 | $ 18,912.3 | |||
Rental properties | 722.3 | 722.3 | 0 | |||
Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (Loss) on Sale of Properties | 0.9 | 59.4 | ||||
Total assets | $ 632.2 | $ 632.2 | 379.4 | |||
Forestar Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of housing construction markets | Market | 55 | 55 | ||||
Number of housing construction states | State | 22 | 22 | ||||
Gain (Loss) on Sale of Properties | $ 0 | 0.1 | ||||
Total assets | $ 2,015 | 2,015 | 1,739.9 | |||
Rental properties | $ 0 | $ 0 | ||||
HomeBuildingMember | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of housing construction markets | Market | 96 | 96 | ||||
Number of housing construction states | State | 30 | 30 | ||||
Number of home building operating divisions | OperatingDivisions | 55 | |||||
Number of homebuilding reporting segments | Segments | 6 | |||||
Gain (Loss) on Sale of Properties | $ 13.1 | $ 0 | ||||
Total assets | $ 17,504.1 | 17,504.1 | 15,221.4 | |||
MultifamilyMember | ||||||
Segment Reporting Information [Line Items] | ||||||
Property, Plant and Equipment, Gross | 0 | 0 | 232.1 | |||
Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Property, Plant and Equipment, Gross | 232.1 | |||||
Total assets | $ 458.3 | $ 458.3 | 246.2 | |||
Multi-Family Units, Total | Home | 4,540 | 4,540 | ||||
Multi-Family Units, Under Active Construction | Home | 3,230 | 3,230 | ||||
Multi-Family Units, Completed | Home | 1,310 | 1,310 | ||||
Rental properties | $ 436.3 | $ 436.3 | ||||
Single Family [Member] | HomeBuildingMember | ||||||
Segment Reporting Information [Line Items] | ||||||
Home sales | $ 23.1 | $ 31.8 | ||||
Gain (Loss) on Sale of Properties | $ 14 | |||||
Property, Plant and Equipment, Gross | $ 87.2 | |||||
Single Family Rental Units, Completed Homes | Home | 680 | 680 | 440 | |||
Single Family Rental Units, Homes and Lots, Total | Home | 2,340 | 2,340 | 740 | |||
Gross Profit | $ 11.4 | |||||
Rental properties | $ 303.1 | $ 303.1 | ||||
Asset under Construction [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of Projects | Projects | 11 | 11 | ||||
Inventories [Member] | Multifamily [Member] | Other Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of Projects | Projects | 4 | 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Assets [Abstract] | ||||||
Cash and cash equivalents | $ 1,942.7 | $ 1,942.7 | $ 3,018.5 | |||
Restricted cash | 26.4 | 26.4 | 21.6 | |||
Inventories: | ||||||
Construction in progress and finished homes | 7,744.1 | 7,744.1 | 5,984.1 | |||
Residential land and lots — developed and under development | 7,407.9 | 7,407.9 | 6,171.8 | |||
Land held for development | 113.9 | 113.9 | 53.2 | |||
Land held for sale | 23.5 | 23.5 | 28.3 | |||
Rental properties | 722.3 | 722.3 | 0 | |||
Total inventories | 16,011.7 | 16,011.7 | 12,237.4 | |||
Mortgage loans held for sale | 1,644.1 | 1,644.1 | 1,529 | |||
Deferred income taxes, net | 147.1 | 147.1 | 144.9 | |||
Property and equipment, net | 367 | 367 | 683.7 | |||
Other assets | 1,491 | 1,491 | 1,113.7 | |||
Goodwill | 163.5 | 163.5 | 163.5 | |||
Total assets | 21,793.5 | 21,793.5 | 18,912.3 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 1,250.9 | 1,250.9 | 900.5 | |||
Accrued expenses and other liabilities | 2,001.3 | 2,001.3 | 1,607 | |||
Notes payable | 4,416.3 | 4,416.3 | 4,283.3 | |||
Total liabilities | 7,668.5 | 7,668.5 | 6,790.8 | |||
Revenues | ||||||
Total revenues | 7,284.6 | $ 5,390 | 19,664.9 | $ 13,910.8 | ||
Inventory and land option charges | 5.6 | 5 | 17.6 | 17.8 | ||
Cost of sales | 5,212.6 | 4,084.7 | 14,196 | 10,619.7 | ||
Selling, General and Administrative Expense | 655.7 | 527.5 | 1,863.2 | 1,450.1 | ||
Gain on sale of assets | 0 | 0 | (14) | (59.5) | ||
Loss on extinguishment of debt | 18.1 | 0 | 18.1 | 0 | ||
Other (income) expense | (17.4) | (4.6) | (28.2) | (26.4) | ||
Income (loss) before income taxes | 1,415.6 | 782.4 | 3,629.8 | 1,926.9 | ||
Depreciation and amortization | 56.7 | 57.4 | ||||
Cash provided by (used in) operating activities | (34.5) | 588.9 | ||||
Intersegment Eliminations [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Restricted cash | 0 | 0 | 0 | |||
Inventories: | ||||||
Construction in progress and finished homes | (93.7) | (93.7) | (53.4) | |||
Residential land and lots — developed and under development | (45.4) | (45.4) | (33.9) | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Rental properties | (17.1) | (17.1) | ||||
Total inventories | (156.2) | (156.2) | (87.3) | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | (5.4) | (5.4) | 2.6 | |||
Property and equipment, net | 0 | 0 | (3) | |||
Other assets | (111.2) | (111.2) | (96.1) | |||
Goodwill | 29.2 | 29.2 | 29.2 | |||
Total assets | (243.6) | (243.6) | (154.6) | |||
Liabilities [Abstract] | ||||||
Accounts payable | 0 | 0 | 0 | |||
Accrued expenses and other liabilities | (172) | (172) | (128.1) | |||
Notes payable | (1.4) | (1.4) | (4.8) | |||
Total liabilities | (173.4) | (173.4) | (132.9) | |||
Revenues | ||||||
Total revenues | (303.2) | (175.5) | (865.8) | (548.6) | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | (283) | (169.8) | (811) | (512) | ||
Selling, General and Administrative Expense | 0.2 | 0.2 | 0.5 | 0.4 | ||
Gain on sale of assets | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Other (income) expense | 0 | 0 | (0.8) | 0 | ||
Income (loss) before income taxes | (20.4) | (5.9) | (54.5) | (37) | ||
Depreciation and amortization | 0.4 | 0.4 | ||||
Cash provided by (used in) operating activities | (8) | (16.8) | ||||
Financial Services [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 101.1 | 101.1 | 55.6 | |||
Restricted cash | 14.6 | 14.6 | 11.9 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 0 | 0 | 0 | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Rental properties | 0 | 0 | ||||
Total inventories | 0 | 0 | 0 | |||
Mortgage loans held for sale | 1,644.1 | 1,644.1 | 1,529 | |||
Deferred income taxes, net | 0 | 0 | 0 | |||
Property and equipment, net | 3.4 | 3.4 | 3.9 | |||
Other assets | 122.6 | 122.6 | 125.8 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 1,885.8 | 1,885.8 | 1,726.2 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 0 | 0 | 0 | |||
Accrued expenses and other liabilities | 90.7 | 90.7 | 86.8 | |||
Notes payable | 1,093.6 | 1,093.6 | 1,132.6 | |||
Total liabilities | 1,184.3 | 1,184.3 | 1,219.4 | |||
Revenues | ||||||
Total revenues | 188.7 | 156.6 | 601.1 | 364 | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Selling, General and Administrative Expense | 127 | 93.9 | 360.4 | 257.7 | ||
Gain on sale of assets | 0 | 0 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Other (income) expense | (8.6) | (6.1) | (21.4) | (17.7) | ||
Income (loss) before income taxes | 70.3 | 68.8 | 262.1 | 124 | ||
Depreciation and amortization | 1.3 | 1.2 | ||||
Cash provided by (used in) operating activities | 96.2 | (347.7) | ||||
Forestar Group [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 116 | 116 | 394.3 | |||
Restricted cash | 0 | 0 | 0 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 1,777.9 | 1,777.9 | 1,304.3 | |||
Land held for development | 83.5 | 83.5 | 5.4 | |||
Land held for sale | 0 | 0 | 0 | |||
Rental properties | 0 | 0 | ||||
Total inventories | 1,861.4 | 1,861.4 | 1,309.7 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 0 | 0 | 0 | |||
Property and equipment, net | 2.2 | 2.2 | 1.1 | |||
Other assets | 35.4 | 35.4 | 34.8 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 2,015 | 2,015 | 1,739.9 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 45.6 | 45.6 | 29.2 | |||
Accrued expenses and other liabilities | 294.9 | 294.9 | 197.8 | |||
Notes payable | 704.1 | 704.1 | 641.1 | |||
Total liabilities | 1,044.6 | 1,044.6 | 868.1 | |||
Revenues | ||||||
Total revenues | 312.9 | 177.9 | 907.1 | 584.3 | ||
Inventory and land option charges | 0.7 | 0.1 | 1.6 | 0.5 | ||
Cost of sales | 257.1 | 157.1 | 753.8 | 510.3 | ||
Selling, General and Administrative Expense | 16.9 | 11.2 | 48.7 | 32.8 | ||
Gain on sale of assets | 0 | (0.1) | ||||
Loss on extinguishment of debt | 18.1 | 18.1 | ||||
Other (income) expense | (0.3) | (0.7) | (1.4) | (4.8) | ||
Income (loss) before income taxes | 21.1 | 10.3 | 87.9 | 46.1 | ||
Depreciation and amortization | 0.3 | 0.2 | ||||
Cash provided by (used in) operating activities | (340.6) | (205.7) | ||||
Other Segments [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 51.8 | 51.8 | 17.5 | |||
Restricted cash | 0.3 | 0.3 | 0.2 | |||
Inventories: | ||||||
Construction in progress and finished homes | 0 | 0 | 0 | |||
Residential land and lots — developed and under development | 0 | 0 | 0 | |||
Land held for development | 0 | 0 | 0 | |||
Land held for sale | 0 | 0 | 0 | |||
Total inventories | 436.3 | 436.3 | 0 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 0 | 0 | 0 | |||
Property and equipment, net | 81.1 | 81.1 | 308.9 | |||
Other assets | 62.7 | 62.7 | 52.8 | |||
Goodwill | 0 | 0 | 0 | |||
Total assets | 632.2 | 632.2 | 379.4 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 34.2 | 34.2 | 12 | |||
Accrued expenses and other liabilities | 14.2 | 14.2 | 12.2 | |||
Notes payable | 0 | 0 | 0 | |||
Total liabilities | 48.4 | 48.4 | 24.2 | |||
Revenues | ||||||
Total revenues | 15.9 | 8.9 | 45.9 | 27.2 | ||
Inventory and land option charges | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Selling, General and Administrative Expense | 9.6 | 7.1 | 30.9 | 23.9 | ||
Gain on sale of assets | (0.9) | (59.4) | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Other (income) expense | (1.4) | 2.4 | 5.8 | 5.8 | ||
Income (loss) before income taxes | 7.7 | (0.6) | 10.1 | 56.9 | ||
Depreciation and amortization | 10.5 | 5.8 | ||||
Cash provided by (used in) operating activities | (58.2) | 2.1 | ||||
HomeBuildingMember | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 1,673.8 | 1,673.8 | 2,551.1 | |||
Restricted cash | 11.5 | 11.5 | 9.5 | |||
Inventories: | ||||||
Construction in progress and finished homes | 7,837.8 | 7,837.8 | 6,037.5 | |||
Residential land and lots — developed and under development | 5,675.4 | 5,675.4 | 4,901.4 | |||
Land held for development | 30.4 | 30.4 | 47.8 | |||
Land held for sale | 23.5 | 23.5 | 28.3 | |||
Total inventories | 13,870.2 | 13,870.2 | 11,015 | |||
Mortgage loans held for sale | 0 | 0 | 0 | |||
Deferred income taxes, net | 152.5 | 152.5 | 142.3 | |||
Property and equipment, net | 280.3 | 280.3 | 372.8 | |||
Other assets | 1,381.5 | 1,381.5 | 996.4 | |||
Goodwill | 134.3 | 134.3 | 134.3 | |||
Total assets | 17,504.1 | 17,504.1 | 15,221.4 | |||
Liabilities [Abstract] | ||||||
Accounts payable | 1,171.1 | 1,171.1 | 859.3 | |||
Accrued expenses and other liabilities | 1,773.5 | 1,773.5 | 1,438.3 | |||
Notes payable | 2,620 | 2,620 | 2,514.4 | |||
Total liabilities | 5,564.6 | 5,564.6 | 4,812 | |||
Revenues | ||||||
Total revenues | 7,070.3 | 5,222.1 | 18,976.6 | 13,483.9 | ||
Inventory and land option charges | 4.9 | 4.9 | 16 | 17.3 | ||
Cost of sales | 5,238.5 | 4,097.4 | 14,253.2 | 10,621.4 | ||
Selling, General and Administrative Expense | 502 | 415.1 | 1,422.7 | 1,135.3 | ||
Gain on sale of assets | (13.1) | 0 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||
Other (income) expense | (7.1) | (0.2) | (10.4) | (9.7) | ||
Income (loss) before income taxes | 1,336.9 | 709.8 | 3,324.2 | 1,736.9 | ||
Depreciation and amortization | 44.2 | 49.8 | ||||
Cash provided by (used in) operating activities | 276.1 | 1,157 | ||||
East [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 1,605.6 | 1,605.6 | 1,328.3 | |||
Revenues | ||||||
Total revenues | 1,032.7 | 736.3 | 2,703.4 | 1,836.5 | ||
Inventory and land option charges | 1.4 | 0.2 | 2.7 | (0.1) | ||
Income (loss) before income taxes | 190.3 | 106.9 | 468.8 | 240.1 | ||
Midwest [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 1,225.9 | 1,225.9 | 958.5 | |||
Revenues | ||||||
Total revenues | 514.6 | 373.3 | 1,396.1 | 964.6 | ||
Inventory and land option charges | 0.5 | 0.4 | 0.7 | 1.9 | ||
Income (loss) before income taxes | 67.2 | 34.1 | 177.3 | 76.4 | ||
Southeast [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 3,510.6 | 3,510.6 | 2,919.9 | |||
Revenues | ||||||
Total revenues | 2,300.1 | 1,629.1 | 6,133.4 | 4,096.4 | ||
Inventory and land option charges | 1 | 2 | 8.8 | 6.3 | ||
Income (loss) before income taxes | 465.3 | 233.5 | 1,147.8 | 567.4 | ||
South Central [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 3,824.6 | 3,824.6 | 2,879.9 | |||
Revenues | ||||||
Total revenues | 1,709.8 | 1,376.4 | 4,688.8 | 3,401.5 | ||
Inventory and land option charges | 1.5 | 1.9 | 2.1 | 6.3 | ||
Income (loss) before income taxes | 323.1 | 201.8 | 854.6 | 490.7 | ||
Southwest [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 955.7 | 955.7 | 695.8 | |||
Revenues | ||||||
Total revenues | 291 | 216.1 | 766.7 | 626.8 | ||
Inventory and land option charges | 0 | 0.1 | 0.4 | 0.1 | ||
Income (loss) before income taxes | 46.7 | 29.7 | 124.8 | 95 | ||
West [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 2,536.6 | 2,536.6 | 2,009.1 | |||
Revenues | ||||||
Total revenues | 1,222.1 | 890.9 | 3,288.2 | 2,558.1 | ||
Inventory and land option charges | 0.5 | 0.3 | 1.3 | 2.8 | ||
Income (loss) before income taxes | 244.3 | 103.8 | 550.9 | 267.3 | ||
Corporate, Non-Segment [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Total inventories | 211.2 | 211.2 | 223.5 | |||
Multifamily [Member] | Other Segments [Member] | ||||||
Inventories: | ||||||
Rental properties | 436.3 | 436.3 | ||||
Total assets | 458.3 | 458.3 | $ 246.2 | |||
Land [Member] | ||||||
Revenues | ||||||
Home sales | 55.8 | 25.8 | 154.6 | 112.6 | ||
Cost of Goods and Services Sold | 27.8 | 14.2 | 85.4 | 67.1 | ||
Land [Member] | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Home sales | (303.2) | (175.5) | (865.8) | (548.6) | ||
Cost of Goods and Services Sold | (243) | (153) | (707.7) | (477.6) | ||
Land [Member] | Financial Services [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Land [Member] | Forestar Group [Member] | ||||||
Revenues | ||||||
Home sales | 312.9 | 177.9 | 907.1 | 584.3 | ||
Cost of Goods and Services Sold | 256.4 | 157 | 752.2 | 509.8 | ||
Land [Member] | Other Segments [Member] | ||||||
Revenues | ||||||
Home sales | 15.9 | 8.9 | 45.9 | 27.2 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Land [Member] | HomeBuildingMember | ||||||
Revenues | ||||||
Home sales | 30.2 | 14.5 | 67.4 | 49.7 | ||
Cost of Goods and Services Sold | 14.4 | 10.2 | 40.9 | 34.9 | ||
HomeBuildingMember | ||||||
Revenues | ||||||
Home sales | 7,040.1 | 5,207.6 | 18,909.2 | 13,434.2 | ||
Cost of Goods and Services Sold | 5,179.2 | 4,065.5 | 14,093 | 10,534.8 | ||
HomeBuildingMember | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | (40) | (16.8) | (103.3) | (34.4) | ||
HomeBuildingMember | Financial Services [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
HomeBuildingMember | Forestar Group [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
HomeBuildingMember | Other Segments [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
HomeBuildingMember | HomeBuildingMember | ||||||
Revenues | ||||||
Home sales | 7,040.1 | 5,207.6 | 18,909.2 | 13,434.2 | ||
Cost of Goods and Services Sold | 5,219.2 | 4,082.3 | 14,196.3 | 10,569.2 | ||
Financial Services [Member] | ||||||
Revenues | ||||||
Home sales | 188.7 | 156.6 | 601.1 | 364 | ||
Financial Services [Member] | Intersegment Eliminations [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Financial Services [Member] | Financial Services [Member] | ||||||
Revenues | ||||||
Home sales | 188.7 | 156.6 | 601.1 | 364 | ||
Financial Services [Member] | Forestar Group [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Financial Services [Member] | Other Segments [Member] | ||||||
Revenues | ||||||
Home sales | 0 | 0 | 0 | 0 | ||
Financial Services [Member] | HomeBuildingMember | ||||||
Revenues | ||||||
Home sales | 0 | $ 0 | 0 | $ 0 | ||
Single Family [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 303.1 | 303.1 | ||||
Revenues | ||||||
Home sales | 23.1 | $ 31.8 | ||||
Gain on sale of assets | $ (14) | |||||
Single Family [Member] | East [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 31.7 | 31.7 | ||||
Single Family [Member] | Midwest [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 20.2 | 20.2 | ||||
Single Family [Member] | Southeast [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 156.3 | 156.3 | ||||
Single Family [Member] | South Central [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 33.5 | 33.5 | ||||
Single Family [Member] | Southwest [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 25.5 | 25.5 | ||||
Single Family [Member] | West [Member] | HomeBuildingMember | ||||||
Inventories: | ||||||
Rental properties | 35.9 | $ 35.9 | ||||
MultifamilyMember | HomeBuildingMember | ||||||
Revenues | ||||||
Home sales | $ 128.5 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory [Line Items] | ||||
Impairment charges | $ 0 | $ 0 | $ 5.6 | $ 1.7 |
Write-offs (recoveries) of earnest money deposits and pre-acquisition costs | $ 5.6 | $ 5 | $ 12 | $ 16.1 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 30, 2021 | Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||||||||
Letters of Credit Outstanding, Amount | $ 219.5 | $ 219.5 | |||||||
Notes payable | 4,416.3 | 4,416.3 | $ 4,283.3 | ||||||
Loss on extinguishment of debt | 18.1 | $ 0 | 18.1 | $ 0 | |||||
Intersegment Eliminations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes payable | (1.4) | (1.4) | (4.8) | ||||||
Loss on extinguishment of debt | 0 | 0 | |||||||
Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized Debt Issuance Expense | 8.4 | 8.4 | 8.9 | ||||||
Notes payable | 704.1 | 704.1 | 641.1 | ||||||
Loss on extinguishment of debt | 18.1 | 18.1 | |||||||
Financial Services [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 1,400 | 1,400 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,800 | 1,800 | |||||||
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Repurchase Agreements | 1,500 | 1,500 | |||||||
Participating Mortgage Loans, Mortgage Obligations, Amount | 1,500 | $ 1,500 | |||||||
Advance Pay Downs on Mortgage Repurchase Facility | $ 410.2 | ||||||||
Assets Sold under Agreements to Repurchase, Interest Rate | 2.10% | 2.10% | |||||||
Notes payable | $ 1,093.6 | $ 1,093.6 | 1,132.6 | ||||||
Loss on extinguishment of debt | 0 | 0 | |||||||
Line of Credit Facility, Temporary Increase of Current Borrowing Capacity | 1,600 | 1,600 | |||||||
Financial Services [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,600 | $ 1,600 | |||||||
Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 410 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 600 | ||||||||
Letters of credit, sublimit borrowing capacity, as a percentage | 50.00% | 50.00% | |||||||
Revolving credit facility | $ 0 | $ 0 | 0 | ||||||
Letters of Credit Outstanding, Amount | 60.2 | 60.2 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 349.8 | 349.8 | |||||||
Debt Repurchase Authorization Remaining | 30 | 30 | |||||||
Authorized Repurchase Of Debt Securities | $ 30 | $ 30 | |||||||
Letter of Credit, Maximum Borrowing Capacity (in dollars) | 100 | 100 | |||||||
Notes payable | 704.1 | 704.1 | 641.1 | ||||||
Proceeds from Lines of Credit | 25 | ||||||||
Repayments of Lines of Credit | 25 | ||||||||
Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized Debt Issuance Expense | $ 12.3 | $ 12.3 | 10.7 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 2,190 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 | ||||||||
Letters of credit, sublimit borrowing capacity, as a percentage | 100.00% | 100.00% | |||||||
Revolving credit facility | $ 0 | $ 0 | 0 | ||||||
Letters of Credit Outstanding, Amount | 159.3 | 159.3 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 2,030 | 2,030 | |||||||
Line of Credit, Current | 0 | 0 | 0 | ||||||
Debt Repurchase Authorization Remaining | 500 | 500 | |||||||
Authorized Repurchase Of Debt Securities | $ 500 | ||||||||
Notes payable | 2,618.6 | 2,618.6 | 2,509.6 | ||||||
Home Building Consolidated | Short-term Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 375 | $ 375 | |||||||
2.55% senior notes due 2020 [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturities of Senior Debt | $ 400 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.55% | 2.55% | 2.55% | ||||||
Notes payable | $ 0 | $ 0 | 399.8 | ||||||
4.375% senior notes due 2022 [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | 4.375% | |||||||
Notes payable | $ 349.5 | $ 349.5 | 349.2 | ||||||
4.75% senior notes due 2023 [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | |||||||
Notes payable | $ 299.5 | $ 299.5 | 299.2 | ||||||
5.75% senior notes due 2023 [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||||
Notes payable | $ 399 | $ 399 | 398.7 | ||||||
SeniorNoteFortyTwo [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | |||||||
Notes payable | $ 497.1 | $ 497.1 | 496.5 | ||||||
SeniorNoteFortyFour | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | |||||||
Notes payable | $ 496 | $ 496 | 495.1 | ||||||
Senior Note Forty Five | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.60% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.40% | 1.40% | 1.40% | ||||||
Notes payable | $ 494.7 | $ 494.7 | 0 | ||||||
Senior Note Member Forty One [Member] | Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 350 | $ 350 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||
Notes payable | $ 0 | $ 0 | 345.2 | ||||||
Debt Instrument, Redemption Price | 365.6 | 365.6 | |||||||
Debt Instrument, Redemption, Accrued and Unpaid Interest | 1.6 | 1.6 | |||||||
Debt Instrument, Redemption, Call Premium | $ 14 | $ 14 | |||||||
Senior Note Member Forty Three | Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||
Notes payable | $ 296.4 | $ 296.4 | 295.9 | ||||||
Secured Debt [Member] | Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes payable | 12.5 | 12.5 | 0 | ||||||
Secured Debt [Member] | Home Building Consolidated | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes payable | $ 82.8 | $ 82.8 | 71.1 | ||||||
Senior Note Forty Six | Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 400 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.10% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||||||
Senior Note Member Forty Six | Forestar Group [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | 3.85% | |||||||
Notes payable | $ 395.2 | $ 395.2 | $ 0 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Rollforward of capitalized interest | ||||
Capitalized interest, beginning of period | $ 218.6 | $ 200.5 | $ 207.7 | $ 180.1 |
Interest incurred | 37.7 | 38 | 116 | 113.3 |
Interest charged to cost of sales | (35.4) | (32.8) | (102.8) | (87.7) |
Capitalized interest, end of period | 220.9 | 205.7 | 220.9 | 205.7 |
Financial Services [Member] | ||||
Rollforward of capitalized interest | ||||
Interest incurred | 4.7 | 4.3 | 13 | 14 |
Forestar Group [Member] | ||||
Rollforward of capitalized interest | ||||
Interest incurred | $ 10.3 | $ 11.4 | $ 33.3 | $ 29.8 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Net | $ 367 | $ 367 | $ 683.7 | ||
Depreciation | 14.7 | $ 17.1 | 49.5 | $ 51.6 | |
Rental properties | 722.3 | 722.3 | 0 | ||
Intersegment Eliminations [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Net | 0 | 0 | (3) | ||
Rental properties | (17.1) | (17.1) | |||
Other Segments [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (26.6) | (26.6) | (28.2) | ||
Property, Plant and Equipment, Net | 81.1 | 81.1 | 308.9 | ||
Other Segments [Member] | Multifamily [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 232.1 | ||||
Rental properties | 436.3 | 436.3 | |||
Other Segments [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 16.5 | 16.5 | 15.6 | ||
Other Segments [Member] | Other Assets [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 75.1 | 75.1 | 69.7 | ||
Other Segments [Member] | LandMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 16.1 | 16.1 | 19.7 | ||
Forestar Group [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Net | 2.2 | 2.2 | 1.1 | ||
Rental properties | 0 | 0 | |||
Financial Services [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Net | 3.4 | 3.4 | 3.9 | ||
Rental properties | 0 | 0 | |||
HomeBuildingMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (268.4) | (268.4) | (256.2) | ||
Property, Plant and Equipment, Net | 280.3 | 280.3 | 372.8 | ||
HomeBuildingMember | Single Family [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 87.2 | ||||
Rental properties | 303.1 | 303.1 | |||
HomeBuildingMember | Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 277 | 277 | 267.4 | ||
HomeBuildingMember | 2510 Household Furniture [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 133.9 | 133.9 | 134 | ||
HomeBuildingMember | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 105.6 | 105.6 | 108.1 | ||
HomeBuildingMember | LandMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 32.2 | 32.2 | 32.3 | ||
MultifamilyMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 0 | 0 | 232.1 | ||
MultifamilyMember | LandMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 0 | 0 | 58.3 | ||
MultifamilyMember | Property, Plant and Equipment, Other Types | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 0 | 0 | 173.8 | ||
SingleFamilyMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 0 | 0 | 87.2 | ||
SingleFamilyMember | LandMember | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 0 | 0 | 19.1 | ||
SingleFamilyMember | Property, Plant and Equipment, Other Types | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 0 | $ 0 | $ 68.1 |
Mortgage Loans Mortgage Loans H
Mortgage Loans Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Mortgage loans held for sale | $ 1,644.1 | $ 1,644.1 | $ 1,529 | ||
Mortgage loans held for sale, outstanding principal amount | 1,600 | 1,600 | 1,460 | ||
Payments for Origination of Mortgage Loans Held-for-sale | 11,500 | $ 8,400 | |||
Proceeds from Sale of Mortgage Loans Held-for-sale | 11,400 | 8,000 | |||
Gain (Loss) on Sales of Loans, Net | 135.4 | $ 116.7 | $ 453 | $ 263.7 | |
Loans Sold to FNMA or securities backed by GNMA [Member] | Customer Concentration Risk | Mortgage Loans | |||||
Concentration Risk, Percentage | 55.00% | ||||
Other Customer [Member] | Customer Concentration Risk | Mortgage Loans | |||||
Concentration Risk, Percentage | 37.00% | ||||
Loan Origination Commitments [Member] | |||||
Derivative, Notional Amount | 862.4 | $ 862.4 | 1,100 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Mortgage loans held for sale | 1,624.7 | 1,624.7 | 1,503.2 | ||
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 | $ (1.9) | $ (1.9) | $ (5.3) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 299.1 | $ 149.5 | $ 784.1 | $ 377.6 | |
Effective tax rate (percent) | 21.10% | 19.10% | 21.60% | 19.60% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Percent | 1.90% | 3.10% | 0.90% | 2.80% | |
Deferred tax assets net of DTL | $ 154.4 | $ 154.4 | $ 152.4 | ||
Valuation allowance for deferred income taxes | $ 7.3 | $ 7.3 | $ 7.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net Income (Loss) Attributable to Parent | $ 1,115.5 | $ 630.7 | $ 2,836.8 | $ 1,544.7 |
Denominator: | ||||
Denominator for basic earnings per share — weighted average common shares | 359.7 | 363.8 | 362.2 | 366 |
Effect of dilutive securities: | ||||
Employee stock awards (shares) | 4.3 | 3.9 | 4.9 | 4.4 |
Denominator for diluted earnings per share — adjusted weighted average common shares | 364 | 367.7 | 367.1 | 370.4 |
Basic net income per common share attributable to Parent (in dollars per share) | $ 3.10 | $ 1.73 | $ 7.83 | $ 4.22 |
Diluted net income per common share attributable to Parent (in dollars per share) | $ 3.06 | $ 1.72 | $ 7.73 | $ 4.17 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Apr. 30, 2021 | Sep. 30, 2018 | |
Class of Stock [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||||||||
Treasury Stock, Shares, Acquired | 2.6 | 8.1 | |||||||||
Payments for Repurchase of Common Stock | $ 241.2 | $ 661.4 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 758.8 | 758.8 | |||||||||
Divedends declared (in dollars per sh | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.175 | $ 0.175 | $ 0.175 | $ 0.175 | ||||
Cash dividends paid per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.175 | $ 0.175 | $ 0.175 | $ 0.175 | ||||
Subsequent Event [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Divedends declared (in dollars per sh | $ 0.20 | ||||||||||
Forestar Group [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Equity Securities Registered, Value | $ 500 | ||||||||||
At-the-market Equity Offering Program, Common Stock Available for Issuance | $ 66.7 | $ 100 | $ 66.7 | ||||||||
At-the-market Equity Offering Program, Common Stock Issued | 1.4 | ||||||||||
Stock Issued During Period, Value, New Issues | $ 32.6 | ||||||||||
Common Stock Available for Issuance, Value Remaining | $ 361 | $ 361 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020$ / sharesshares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)grant_recipient$ / sharesshares | Jun. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Noncash Expense | $ 69.7 | $ 59.2 | |||
Performance Shares [Member] | November Two Thousand Twenty Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSUs granted in the period | shares | 360,000 | ||||
Award vesting period | 3 years | ||||
Fair value of equity awards on the date of grant (in US$ per unit) | $ / shares | $ 70.60 | ||||
Share-based Payment Arrangement, Noncash Expense | $ 3.1 | 9.4 | |||
Performance Shares [Member] | November Two Thousand Twenty 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 Twenty 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 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Noncash Expense | 21.4 | $ 20.4 | $ 66.6 | $ 56.6 | |
Restricted Stock [Member] | March Two Thousand Twenty One Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSUs granted in the period | shares | 860,000 | ||||
Fair value of equity awards on the date of grant (in US$ per unit) | $ / shares | $ 83.13 | ||||
Share-based Payment Arrangement, Noncash Expense | $ 4 | $ 9.5 | |||
RSU Grant Recipients | grant_recipient | 1,030 | ||||
Restricted Stock [Member] | March Two Thousand Twenty One Grant | Retirement Eligible [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Noncash Expense | $ 4.8 |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||||||
Standard Product Warranty Accrual | $ 361.5 | $ 281.3 | $ 361.5 | $ 281.3 | $ 340.7 | $ 310.2 | $ 262.7 | $ 247.3 |
Standard Product Warranty Accrual, Increase for Warranties Issued | 41.8 | 29.4 | 111.5 | 75.1 | ||||
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 1.7 | 5.7 | 5.4 | 14 | ||||
Standard Product Warranty Accrual, Decrease for Payments | $ 22.7 | $ 16.5 | $ 65.6 | $ 55.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | ||||||
Liabilities for various claims, complaints and other legal actions | $ 543.1 | $ 461.3 | $ 543.1 | $ 461.3 | $ 473.8 | $ 434.7 |
Construction defect portion of loss contingency accrual, percentage | 99.00% | 99.00% | 99.00% | |||
Expenses related to legal claims | $ 46.2 | 41.1 | ||||
Estimated insurance recoveries related to legal claims | $ 98.1 | 82.4 | 98.1 | 82.4 | $ 81.2 | |
Surety bonds | 2,100 | 2,100 | ||||
Outstanding letters of credit | 219.5 | 219.5 | ||||
Home Building Consolidated | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 159.3 | 159.3 | ||||
Forestar Group [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Outstanding letters of credit | 60.2 | 60.2 | ||||
HomeBuildingMember | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 999.8 | 999.8 | ||||
Remaining purchase price of land under option contracts | 15,000 | 15,000 | ||||
HomeBuildingMember | Option Contracts Subject to Specific Performance Clauses [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Remaining purchase price of land under option contracts | 136.9 | 136.9 | ||||
HomeBuildingMember | Cash [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 918.9 | 918.9 | ||||
HomeBuildingMember | Notes Payable, Other Payables [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 80.9 | 80.9 | ||||
Forestar Group [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Earnest money deposits | 152.7 | 152.7 | ||||
Remaining purchase price of land under option contracts | 1,600 | 1,600 | ||||
Increase (Decrease) in Earnest Money Deposits Outstanding | 3.5 | 7 | 27.7 | 23.2 | ||
Increase (Decrease) in Prepaid Expenses, Other | 14.9 | $ 12.9 | 43.1 | $ 26.2 | ||
Forestar Group [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||||
Commitments and Contingencies [Abstract] | ||||||
Remaining purchase price of land under option contracts | $ 67.8 | $ 67.8 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal Claims and Insurance (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Rollforward of reserves for legal claims | ||
Reserves for legal claims, beginning of period | $ 473.8 | $ 434.7 |
Increase in reserves | 88.8 | 57.1 |
Payments | (19.5) | (30.5) |
Reserves for legal claims, end of period | $ 543.1 | $ 461.3 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Other assets | ||||||
Earnest money and refundable deposits | $ 999.8 | $ 657.1 | ||||
Insurance receivables | 98.1 | 81.2 | $ 82.4 | |||
Other receivables | 152.3 | 143.1 | ||||
Prepaid assets | 54.7 | 46 | ||||
Margin deposits | 20 | 16.2 | ||||
Contract assets - insurance agency commissions | 54.6 | 47.1 | ||||
Lease right of use assets | 35 | 34.7 | ||||
Mortgage servicing rights | 14.2 | 17.1 | ||||
Other | 40.2 | 39.9 | ||||
Other assets | 1,491 | 1,113.7 | ||||
Accrued expenses and other liabilities | ||||||
Reserves for legal claims | 543.1 | 473.8 | 461.3 | $ 434.7 | ||
Employee compensation and related liabilities | 427.8 | 376.1 | ||||
Warranty liability | 361.5 | $ 340.7 | 310.2 | $ 281.3 | $ 262.7 | $ 247.3 |
Mortgage hedging instruments and commitments | 18.9 | 16.5 | ||||
Accrued interest | 34.9 | 35.3 | ||||
Federal and state income tax liabilities | 39.1 | 42.6 | ||||
Inventory related accruals | 200.5 | 93.9 | ||||
Customer deposits | 201.3 | 93.1 | ||||
Accrued property taxes | 37.8 | 44.1 | ||||
Lease liabilities | 36.5 | 37 | ||||
Other | 99.9 | 84.4 | ||||
Accrued expenses and other liabilities | 2,001.3 | 1,607 | ||||
Interest rate lock commitments [Member] | ||||||
Other assets | ||||||
Interest rate lock commitments | $ 22.1 | $ 31.3 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | $ 1,644,100,000 | $ 1,529,000,000 |
Other Assets, Miscellaneous | 40,200,000 | 39,900,000 |
Other Accrued Liabilities | 99,900,000 | 84,400,000 |
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities collateralized by residential real estate | 3,900,000 | |
Mortgage loans held for sale | 1,634,100,000 | 1,518,300,000 |
Servicing Asset at Fair Value, Amount | 14,200,000 | 17,100,000 |
Fair Value, Recurring [Member] | Interest rate lock commitments [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 22,100,000 | 31,300,000 |
Fair Value, Recurring [Member] | Forward sales of MBS [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | (16,900,000) | (16,200,000) |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities collateralized by residential real estate | 0 | |
Mortgage loans held for sale | 0 | 0 |
Servicing Asset at Fair Value, Amount | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Forward sales of MBS [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities collateralized by residential real estate | 0 | |
Mortgage loans held for sale | 1,624,700,000 | 1,503,200,000 |
Servicing Asset at Fair Value, Amount | 13,900,000 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 22,100,000 | 31,300,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Forward sales of MBS [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | (16,900,000) | (16,200,000) |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities collateralized by residential real estate | 3,900,000 | |
Mortgage loans held for sale | 9,400,000 | 15,100,000 |
Servicing Asset at Fair Value, Amount | 300,000 | 17,100,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Measurement Input, Prepayment Rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing Asset at Fair Value, Amount | 0.10 | 0.13 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing Asset at Fair Value, Amount | 0.11 | 0.11 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Measurement Input, Default Rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Servicing Asset at Fair Value, Amount | 0.06 | 0.05 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Forward sales of MBS [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Bais (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | $ 1,644.1 | $ 1,529 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash, Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | 0.6 | 1.5 |
Loans Receivable, Fair Value Disclosure | 2.7 | 0.6 |
Restricted cash, Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash, Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | 0.6 | 2.2 |
Loans Receivable, Fair Value Disclosure | 1.3 | 2 |
Restricted cash, Fair value | $ 0.2 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Cash and cash equivalents, Fair value | $ 1,942.7 | $ 3,018.5 |
Restricted cash, Fair value | 26.4 | 21.6 |
Notes payable, Fair value | 4,562.8 | 4,489.2 |
Cash and cash equivalents, Carrying value | 1,942.7 | 3,018.5 |
Restricted Cash and Cash Equivalents | 26.4 | 21.6 |
Notes payable | 4,416.3 | 4,283.3 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Cash and cash equivalents, Fair value | 1,942.7 | 3,018.5 |
Restricted cash, Fair value | 26.4 | 21.6 |
Notes payable, Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Restricted cash, Fair value | 0 | 0 |
Notes payable, Fair value | 3,373.9 | 3,285.5 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Restricted cash, Fair value | 0 | 0 |
Notes payable, Fair value | $ 1,188.9 | $ 1,203.7 |