Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2021 | Jan. 28, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 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 | 354,358,165 | |
Entity Central Index Key | 0000882184 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | DHI | |
Security Exchange Name | NYSE | |
Senior Notes due 2023 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.750% Senior Notes due 2023 | |
Trading Symbol | DHI 23A | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 2,442.1 | $ 3,210.4 |
Restricted cash | 22.5 | 26.8 |
Total cash, cash equivalents and restricted cash | 2,464.6 | 3,237.2 |
Inventories: | ||
Construction in progress and finished homes | 8,742.9 | 7,739.2 |
Residential land and lots — developed and under development | 8,162.4 | 7,781.8 |
Land held for development | 131.4 | 110.9 |
Land held for sale | 24.8 | 25.4 |
Rental properties | 1,141 | 821.8 |
Total inventories | 18,202.5 | 16,479.1 |
Mortgage loans held for sale | 1,833.3 | 2,027.3 |
Deferred income taxes, net of valuation allowance of $4.1 million and $4.2 million at December 31, 2021 and September 30, 2021, respectively | 137.6 | 155.3 |
Property and equipment, net | 410.4 | 392.9 |
Other assets | 1,787.5 | 1,560.6 |
Goodwill | 163.5 | 163.5 |
Total assets | 24,999.4 | 24,015.9 |
LIABILITIES | ||
Accounts payable | 1,150.7 | 1,177 |
Accrued expenses and other liabilities | 2,580 | 2,210.3 |
Notes payable | 5,255.3 | 5,412.4 |
Total liabilities | 8,986 | 8,799.7 |
Commitments and contingencies (Note K) | ||
EQUITY | ||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 1,000,000,000 shares authorized, 398,162,095 shares issued and 354,277,601 shares outstanding at December 31, 2021 and 397,190,100 shares issued and 356,015,843 shares outstanding at September 30, 2021 | 4 | 4 |
Additional paid-in capital | 3,282.7 | 3,274.8 |
Retained earnings | 14,705.8 | 13,644.3 |
Treasury stock, 43,884,494 shares and 41,174,257 shares at December 31, 2021 and September 30, 2021, respectively, at cost | (2,314.8) | (2,036.6) |
Stockholders’ equity | 15,677.7 | 14,886.5 |
Noncontrolling interests | 335.7 | 329.7 |
Total equity | 16,013.4 | 15,216.2 |
Total liabilities and equity | $ 24,999.4 | $ 24,015.9 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 7,053.4 | $ 5,933.4 |
Cost of sales | 4,905.7 | 4,332.5 |
Selling, general and administrative expense | 665.9 | 585.9 |
Gain on sale of assets | 0 | (14) |
Other (income) expense | (15.5) | (5.3) |
Income before income taxes | 1,497.3 | 1,034.3 |
Income tax expense | 351.5 | 239.1 |
Net income | 1,145.8 | 795.2 |
Net income attributable to noncontrolling interests | 4.2 | 3.4 |
Net income attributable to D.R. Horton, Inc. | $ 1,141.6 | $ 791.8 |
Basic net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 3.21 | $ 2.17 |
Weighted average number of common shares | 356.1 | 364.4 |
Diluted net income per common share attributable to D.R. Horton, Inc. (in dollars per share) | $ 3.17 | $ 2.14 |
Adjusted weighted average number of common shares | 360.1 | 370 |
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, 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, 2021 | 15,216.2 | 4 | 3,274.8 | 13,644.3 | (2,036.6) | 329.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,145.8 | 0 | 0 | 1,141.6 | 0 | 4.2 |
Exercise of stock options | 5.8 | 0 | 5.8 | |||
Stock issued under employee incentive plans | 11.4 | 11.4 | ||||
Cash paid for shares withheld for taxes | (33) | 0 | (33) | 0 | 0 | 0 |
Stock-based compensation expense | 23.7 | 23.7 | ||||
Cash dividends declared | (80.1) | (80.1) | ||||
Repurchases of common stock | (278.2) | (278.2) | ||||
Change of ownership interest in Forestar | 1.8 | 1.8 | ||||
Ending Balances at Dec. 31, 2021 | $ 16,013.4 | $ 4 | $ 3,282.7 | $ 14,705.8 | $ (2,314.8) | $ 335.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,145.8 | $ 795.2 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 19.4 | 22.9 |
Stock-based compensation expense | 23.7 | 21.7 |
Deferred income taxes | 17.7 | 2.9 |
Inventory and land option charges | 4.8 | 8.3 |
Gain on sale of assets | 0 | (14) |
Changes in operating assets and liabilities: | ||
Increase in construction in progress and finished homes | (1,003.7) | (591.2) |
Increase in residential land and lots – developed, under development, held for development and held for sale | (340.7) | (716.8) |
Increase in rental properties | (319.5) | 0 |
Increase in other assets | (221.8) | (125.8) |
Decrease in mortgage loans held for sale | 194 | 90.1 |
Increase in accounts payable, accrued expenses and other liabilities | 306.2 | 254.6 |
Cash provided by (used in) operating activities | (174.1) | (252.1) |
INVESTING ACTIVITIES | ||
Expenditures for property and equipment | (30.9) | (16.3) |
Proceeds from sale of assets | 0 | 31.8 |
Expenditures related to rental properties | 0 | (86.2) |
Payments related to business acquisitions | 0 | (23) |
Other investing activities | 4.4 | 2.3 |
Net cash used in investing activities | (26.5) | (91.4) |
FINANCING ACTIVITIES | ||
Proceeds from notes payable | 0 | 494.1 |
Repayment of notes payable | (0.6) | (400.1) |
Payments on mortgage repurchase facility, net | (234.6) | (163.5) |
Proceeds from stock associated with certain employee benefit plans | 17.2 | 0.9 |
Cash paid for shares withheld for taxes | (33) | (26.3) |
Cash dividends paid | (80.1) | (72.9) |
Repurchases of common stock | (303.8) | (53.8) |
Net proceeds from issuance of Forestar common stock | 0.1 | 0 |
Other financing activities | 62.8 | (0.1) |
Net cash used in financing activities | (572) | (221.7) |
Net decrease in cash, cash equivalents and restricted cash | (772.6) | (565.2) |
Cash, cash equivalents and restricted cash at beginning of period | 3,237.2 | 3,040.1 |
Cash, cash equivalents and restricted cash at end of period | 2,464.6 | 2,474.9 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
Notes payable issued for inventory | 64.3 | 12.5 |
Stock issued under employee incentive plans | 66.2 | 44.7 |
Repurchase of common stock not settled | $ 0 | $ 16 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 4.1 | $ 4.2 |
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 | 398,162,095 | 397,190,100 |
Common Stock, Shares, Outstanding | 354,277,601 | 356,015,843 |
Treasury Stock, Shares | 43,884,494 | 41,174,257 |
Consolidated Statements of To_2
Consolidated Statements of Total Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Common Stock, Shares, Outstanding | 354,277,601 | ||
Divedends declared (in dollars per sh | $ 0.225 | $ 0.20 | |
Common Stock [Member] | |||
Common Stock, Shares, Outstanding | 354,277,601 | 363,647,879 | 363,999,982 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 244,182 | 42,950 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 727,813 | 604,947 | |
Divedends declared (in dollars per sh | $ 0.225 | $ 0.20 | |
Stock Repurchased and Retired During Period, Shares | (2,710,237) | (1,000,000) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | 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. As of December 31, 2021, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% 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, 2021, 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, 2021. Reclassifications During the fourth quarter of fiscal 2021, the Company changed its internal organization and reporting of its operating segments and reportable segments to combine its single-family rental operations and its multi-family rental operations into a new reporting segment and realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. The prior year presentation of the Company’s segment information in Note B and in Management’s Discussion and Analysis of Financial Condition and Results of Operations has been conformed to the current presentation for all periods presented. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Seasonality Historically, the homebuilding industry has experienced seasonal fluctuations; therefore, the operating results for the three months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2022 or subsequent periods. Pending Accounting Standards In March 2020, the Financial Accounting Standards Board (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. |
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. As of December 31, 2021, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% 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, 2021, 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, 2021. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 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 102 markets across 32 states. The Company’s operating segments are its 77 homebuilding divisions, its majority-owned Forestar residential lot development operations, its financial services operations, its rental operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services segment and its rental operations segment. During the fourth quarter of fiscal 2021, the Company changed its internal organization and reporting of its operating segments and reportable segments to combine its single-family rental operations and its multi-family rental operations into a new reporting segment to reflect the method by which the chief operating decision makers manage the business, evaluate internal results and allocate financial resources. Additionally, during the fourth quarter of fiscal 2021, the Company realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. Segment information for the three months ended December 31, 2020 has been reclassified to conform to the current presentation. Homebuilding Based on the aggregation of the homebuilding operating segments, the Company’s six reporting segments and the states in which it has homebuilding operations are as follows: Northwest: Colorado, Oregon, Utah and Washington Southwest: Arizona, California, Hawaii, Nevada and New Mexico South Central: Oklahoma and Texas Southeast: Alabama, Florida, Louisiana and Mississippi East: Georgia, North Carolina, South Carolina and Tennessee North: Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Nebraska, 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. Forestar The Forestar segment is a residential lot development company with operations in 55 markets across 23 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. Financial Services The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. Rental The Company’s rental segment consists of multi-family and single-family rental operations. The multi-family rental operations develop, construct, lease and sell residential rental properties. The single-family rental operations primarily construct and lease single-family homes and then market the community for a bulk sale of rental homes. Other In addition to its homebuilding, Forestar, financial services and rental operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, owns non-residential real estate including ranch land and improvements and owns and operates energy-related assets. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented as other within the Eliminations and Other column in the tables that follow. 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, 2021. Financial information relating to the Company’s reporting segments is as follows: December 31, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,133.4 $ 162.5 $ 88.2 $ 44.2 $ 13.8 $ 2,442.1 Restricted cash 12.4 — 9.5 0.6 — 22.5 Inventories: Construction in progress and finished homes 8,879.5 — — — (136.6) 8,742.9 Residential land and lots — developed and under development 6,366.7 1,854.6 — — (58.9) 8,162.4 Land held for development 25.9 105.5 — — — 131.4 Land held for sale 24.8 — — — — 24.8 Rental properties — — — 1,161.1 (20.1) 1,141.0 15,296.9 1,960.1 — 1,161.1 (215.6) 18,202.5 Mortgage loans held for sale — — 1,833.3 — — 1,833.3 Deferred income taxes, net 141.6 — — — (4.0) 137.6 Property and equipment, net 315.5 4.2 3.3 0.7 86.7 410.4 Other assets 1,689.3 35.7 93.3 9.0 (39.8) 1,787.5 Goodwill 134.3 — — — 29.2 163.5 $ 19,723.4 $ 2,162.5 $ 2,027.6 $ 1,215.6 $ (129.7) $ 24,999.4 Liabilities Accounts payable $ 1,021.5 $ 53.5 $ — $ 75.7 $ — $ 1,150.7 Accrued expenses and other liabilities 2,316.4 345.7 75.7 8.9 (166.7) 2,580.0 Notes payable 3,291.0 704.9 1,260.0 — (0.6) 5,255.3 $ 6,628.9 $ 1,104.1 $ 1,335.7 $ 84.6 $ (167.3) $ 8,986.0 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. September 30, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,950.1 $ 153.6 $ 79.0 $ 16.8 $ 10.9 $ 3,210.4 Restricted cash 8.4 — 18.0 0.4 — 26.8 Inventories: Construction in progress and finished homes 7,848.0 — — — (108.8) 7,739.2 Residential land and lots — developed and under development 6,004.0 1,824.7 — — (46.9) 7,781.8 Land held for development 30.4 80.5 — — — 110.9 Land held for sale 25.4 — — — — 25.4 Rental properties — — — 840.9 (19.1) 821.8 13,907.8 1,905.2 — 840.9 (174.8) 16,479.1 Mortgage loans held for sale — — 2,027.3 — — 2,027.3 Deferred income taxes, net 159.2 — — — (3.9) 155.3 Property and equipment, net 303.3 2.9 3.5 0.6 82.6 392.9 Other assets 1,468.7 40.0 107.6 6.3 (62.0) 1,560.6 Goodwill 134.3 — — — 29.2 163.5 $ 18,931.8 $ 2,101.7 $ 2,235.4 $ 865.0 $ (118.0) $ 24,015.9 Liabilities Accounts payable $ 1,073.7 $ 47.4 $ — $ 55.9 $ — $ 1,177.0 Accrued expenses and other liabilities 1,941.3 333.9 88.6 15.0 (168.5) 2,210.3 Notes payable 3,214.0 704.5 1,494.6 — (0.7) 5,412.4 $ 6,229.0 $ 1,085.8 $ 1,583.2 $ 70.9 $ (169.2) $ 8,799.7 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. Three Months Ended December 31, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Revenues Home sales $ 6,656.4 $ — $ — $ — $ — $ 6,656.4 Land/lot sales and other 23.0 407.6 — — (374.4) 56.2 Rental property sales — — — 156.5 — 156.5 Financial services — — 184.3 — — 184.3 6,679.4 407.6 184.3 156.5 (374.4) 7,053.4 Cost of sales Home sales (3) 4,833.9 — — — (37.7) 4,796.2 Land/lot sales and other 17.1 333.6 — — (317.7) 33.0 Rental property sales — — — 72.5 (0.8) 71.7 Inventory and land option charges 3.9 0.6 — 0.3 — 4.8 4,854.9 334.2 — 72.8 (356.2) 4,905.7 Selling, general and administrative expense 497.7 21.5 125.3 18.5 2.9 665.9 Other (income) expense (6.2) (1.6) (8.1) (4.9) 5.3 (15.5) Income before income taxes $ 1,333.0 $ 53.5 $ 67.1 $ 70.1 $ (26.4) $ 1,497.3 Summary Cash Flow Information Depreciation and amortization $ 15.4 $ 0.5 $ 0.4 $ 0.1 $ 3.0 $ 19.4 Cash (used in) provided by operating activities $ (114.7) $ 5.8 $ 247.5 $ (255.9) $ (56.8) $ (174.1) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (3) Amount in the Eliminations and Other 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. Three Months Ended December 31, 2020 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Revenues Home sales $ 5,698.7 $ — $ — $ — $ — $ 5,698.7 Land/lot sales and other 17.9 307.1 — — (277.5) 47.5 Rental property sales — — — 31.8 (31.8) — Financial services — — 187.2 — — 187.2 5,716.6 307.1 187.2 31.8 (309.3) 5,933.4 Cost of sales Home sales (3) 4,325.1 — — — (27.7) 4,297.4 Land/lot sales and other 13.7 262.5 — — (249.4) 26.8 Rental property sales — — — 17.8 (17.8) — Inventory and land option charges 7.9 0.4 — — — 8.3 4,346.7 262.9 — 17.8 (294.9) 4,332.5 Selling, general and administrative expense 449.4 15.5 109.5 9.3 2.2 585.9 Gain on sale of assets — — — — (14.0) (14.0) Other (income) expense (2.1) (0.5) (6.4) (3.9) 7.6 (5.3) Income before income taxes $ 922.6 $ 29.2 $ 84.1 $ 8.6 $ (10.2) $ 1,034.3 Summary Cash Flow Information Depreciation and amortization $ 16.4 $ 0.7 $ 0.4 $ 2.7 $ 2.7 $ 22.9 Cash (used in) provided by operating activities $ (269.6) $ (158.7) $ 173.1 $ (58.9) $ 62.0 $ (252.1) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. (3) Amount in the Eliminations and Other 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. Homebuilding Inventories by Reporting Segment (1) December 31, September 30, (In millions) Northwest $ 1,450.8 $ 1,307.5 Southwest 2,743.3 2,445.6 South Central 3,772.2 3,479.3 Southeast 3,444.9 3,178.6 East 2,118.3 1,919.6 North 1,558.4 1,368.9 Corporate and unallocated (2) 209.0 208.3 $ 15,296.9 $ 13,907.8 ____________________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended 2021 2020 (In millions) Revenues Northwest $ 569.0 $ 548.0 Southwest 911.6 838.6 South Central 1,694.3 1,363.5 Southeast 1,810.9 1,465.0 East 1,074.9 1,007.7 North 618.7 493.8 $ 6,679.4 $ 5,716.6 Income before Income Taxes Northwest $ 111.8 $ 86.8 Southwest 159.3 115.2 South Central 354.3 240.0 Southeast 415.4 247.2 East 202.3 170.7 North 89.9 62.7 $ 1,333.0 $ 922.6 |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 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 December 31, 2021, the Company determined that no communities were impaired, and no impairment charges were recorded during the three months ended December 31, 2021, compared to $5.6 million of impairment charges recorded in the prior year period. During the three months ended December 31, 2021, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $4.8 million, compared to $2.7 million in the same period of fiscal 2021. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations. |
Notes Payable
Notes Payable | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE The Company’s notes payable at their carrying amounts consist of the following: December 31, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 4.375% senior notes due 2022 (1) 349.7 349.6 4.75% senior notes due 2023 (1) 299.6 299.5 5.75% senior notes due 2023 (1) 399.2 399.1 2.5% senior notes due 2024 (1) 497.5 497.3 2.6% senior notes due 2025 (1) 496.5 496.2 1.3% senior notes due 2026 (1) 594.8 594.5 1.4% senior notes due 2027 (1) 495.1 494.9 Other secured notes (2) 158.0 82.2 3,290.4 3,213.3 Forestar: Unsecured: Revolving credit facility — — 3.85% senior notes due 2026 (3) 395.7 395.5 5.0% senior notes due 2028 (3) 296.7 296.5 Other secured notes 12.5 12.5 704.9 704.5 Financial Services: Mortgage repurchase facility 1,260.0 1,494.6 Total (4) $ 5,255.3 $ 5,412.4 ____________________________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $15.4 million and $16.5 million at December 31, 2021 and September 30, 2021, respectively. (2) Homebuilding other secured notes excludes $0.6 million and $0.7 million of earnest money notes payable to Forestar at December 31, 2021 and September 30, 2021, respectively. These intercompany notes are eliminated in consolidation. (3) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $7.6 million and $8.0 million at December 31, 2021 and September 30, 2021, respectively. (4) The fair value of notes payable at December 31, 2021 totaled $5.3 billion, of which $3.9 billion was measured using Level 2 inputs and $1.4 billion was measured using Level 3 inputs. The fair value of notes payable at September 30, 2021 totaled $5.5 billion, of which $3.9 billion was measured using Level 2 inputs and $1.6 billion was measured using Level 3 inputs. Homebuilding: The Company has a $2.19 billion senior unsecured homebuilding revolving credit facility 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 is April 20, 2026. At December 31, 2021, there were no borrowings outstanding and $187.2 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $2.0 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 December 31, 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 Securities and Exchange Commission (SEC) in July 2021, registering debt and equity securities that the Company may issue from time to time in amounts to be determined. In July 2019, the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities. The authorization has no expiration date. All of the $500 million authorization was remaining at December 31, 2021. Forestar: Forestar has a $410 million senior unsecured revolving credit facility 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 is April 16, 2025. At December 31, 2021, there were no borrowings outstanding and $66.3 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $343.7 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. 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 December 31, 2021, Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and senior note obligations. In April 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 December 31, 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 automatically increases during certain higher volume periods and can be further increased through additional commitments. The total capacity of the facility at December 31, 2021 was $1.633 billion, and its maturity date is February 18, 2022. DHI Mortgage expects to renew and extend the maturity date of the facility. As of December 31, 2021, $1.7 billion of mortgage loans held for sale with a collateral value of $1.7 billion were pledged under the mortgage repurchase facility. As a result of advance paydowns totaling $436.5 million, DHI Mortgage had an obligation of $1.3 billion outstanding under the mortgage repurchase facility at December 31, 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 December 31, 2021, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. |
Capitalized Interest
Capitalized Interest | 3 Months Ended |
Dec. 31, 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 three months of fiscal 2022 and fiscal 2021, the Company’s active inventory exceeded its debt level, and all interest incurred was capitalized to inventory. The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three months ended December 31, 2021 and 2020: Three Months Ended 2021 2020 (In millions) Capitalized interest, beginning of period $ 217.7 $ 207.7 Interest incurred (1) 36.9 40.4 Interest charged to cost of sales (33.3) (33.0) Capitalized interest, end of period $ 221.3 $ 215.1 __________________ (1) Interest incurred includes interest on the Company's mortgage repurchase facility of $4.0 million and $4.5 million in the three months ended December 31, 2021 and 2020, respectively, and Forestar interest of $8.1 million and $11.5 million in those periods. |
Mortgage Loans
Mortgage Loans | 3 Months Ended |
Dec. 31, 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 December 31, 2021, mortgage loans held for sale of $1.83 billion had an aggregate outstanding principal balance of $1.79 billion. At September 30, 2021, mortgage loans held for sale of $2.03 billion had an aggregate outstanding principal balance of $1.97 billion. Mortgage loans held for sale at both dates were primarily composed of mortgage loans measured at fair value on a recurring basis using Level 2 inputs. During the three months ended December 31, 2021 and 2020, mortgage loans originated totaled $3.9 billion and $3.5 billion, respectively, and mortgage loans sold totaled $4.1 billion and $3.6 billion, respectively. The Company had gains on sales of loans and servicing rights of $134.1 million during the three months ended December 31, 2021 compared to $138.9 million in the prior year period. Net gains on sales of loans and servicing rights are included in revenues in the consolidated statements of operations. During the three months ended December 31, 2021, approximately 61% of the Company’s mortgage loans were sold directly to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or into securities backed by the Government National Mortgage Association (Ginnie Mae), and 30% were sold to one other major financial entity. The Company also uses hedging instruments as part of a program to offer below market interest rate financing to its homebuyers. At December 31, 2021 and September 30, 2021, the Company had mortgage-backed securities (MBS) totaling $1.2 billion and $834.6 million, respectively, that did not yet have interest rate lock commitments (IRLCs) or closed loans created or assigned and recorded an asset of $1.3 million and $1.1 million, respectively, for the fair value of such MBS position. The Company is party to IRLCs, which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria. At December 31, 2021 and September 30, 2021, the notional amount of IRLCs, which are accounted for as derivative instruments recorded at fair value using Level 2 inputs, totaled $1.8 billion and $1.5 billion, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense for the three months ended December 31, 2021 and 2020 was $351.5 million and $239.1 million, respectively. The effective tax rate was 23.5% for the three months ended December 31, 2021 compared to 23.1% in the prior year period. The effective tax rates for both periods include an expense for state income taxes and tax benefits related to stock-based compensation and the federal energy efficient homes tax credit. The federal energy efficient homes tax credit expires for homes closed after December 31, 2021. The Company’s deferred tax assets, net of deferred tax liabilities, were $141.7 million at December 31, 2021 compared to $159.5 million at September 30, 2021. The Company has a valuation allowance of $4.1 million and $4.2 million at December 31, 2021 and September 30, 2021, 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 | 3 Months Ended |
Dec. 31, 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 2021 2020 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 1,141.6 $ 791.8 Denominator: Denominator for basic earnings per share — weighted average common shares 356.1 364.4 Effect of dilutive securities: Employee stock awards 4.0 5.6 Denominator for diluted earnings per share — adjusted weighted average common shares 360.1 370.0 Basic net income per common share attributable to D.R. Horton, Inc. $ 3.21 $ 2.17 Diluted net income per common share attributable to D.R. Horton, Inc. $ 3.17 $ 2.14 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY D.R. Horton has an automatically effective universal shelf registration statement, filed with the SEC in July 2021, registering debt and equity securities that it may issue from time to time in amounts to be determined. Forestar has an effective shelf registration statement, filed with the SEC in October 2021, registering $750 million of equity securities, of which $300 million was reserved for sales under its at-the-market equity offering program that became effective in November 2021. During the three months ended December 31, 2021, Forestar issued 84,547 shares of common stock under its at-the-market equity offering program for proceeds of $1.7 million, net of commissions and other issuance costs totaling $0.1 million. At December 31, 2021, $748.2 million remained available for issuance under Forestar’s shelf registration statement, of which $298.2 million was reserved for sales under its at-the-market equity offering program. In April 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. During the three months ended December 31, 2021, the Company repurchased 2.7 million shares of its common stock for $278.2 million. At December 31, 2021, there was $268.0 million remaining on the repurchase authorization. During the three months ended December 31, 2021, the Board of Directors approved a quarterly cash dividend of $0.225 per common share, which was paid on December 15, 2021 to stockholders of record on December 6, 2021. In January 2022, the Board of Directors approved a quarterly cash dividend of $0.225 per common share, payable on February 25, 2022 to stockholders of record on February 17, 2022. Cash dividends of $0.20 per common share were approved and paid in each quarter of fiscal 2021. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 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. RSU 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 October 2021, the Company granted 390,000 performance-based RSU equity awards to its executive officers. These awards vest at the end of a three Total stock-based compensation expense related to the Company’s performance-based and time-based RSUs was $21.9 million during the three months ended December 31, 2021 compared to $21.2 million during the three months ended December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2021 and 2020 were as follows: Three Months Ended 2021 2020 (In millions) Warranty liability, beginning of period $ 376.3 $ 310.2 Warranties issued 38.8 33.3 Changes in liability for pre-existing warranties 4.4 2.6 Settlements made (29.5) (22.1) Warranty liability, end of period $ 390.0 $ 324.0 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 $585.2 million and $577.5 million at December 31, 2021 and September 30, 2021, respectively, and are included in accrued expenses and other liabilities in the consolidated balance sheets. Approximately 99% of these reserves related to construction defect matters at both December 31, 2021 and September 30, 2021. Expenses related to the Company’s legal contingencies were $12.9 million and $17.4 million in the three months ended December 31, 2021 and 2020, respectively. Changes in the Company’s legal claims reserves during the three months ended December 31, 2021 and 2020 were as follows: Three Months Ended 2021 2020 (In millions) Reserves for legal claims, beginning of period $ 577.5 $ 473.8 Increase in reserves 14.5 24.2 Payments (6.8) (6.2) Reserves for legal claims, end of period $ 585.2 $ 491.8 The Company estimates and records receivables under its applicable insurance policies related to its estimated contingencies for known claims and anticipated future construction defect claims on previously closed homes and other legal claims and lawsuits incurred in the ordinary course of business when recovery is probable. 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 $107.0 million, $109.5 million and $82.2 million at December 31, 2021, September 30, 2021 and December 31, 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 December 31, 2021, the Company had total deposits of $1.3 billion, consisting of cash deposits of $1.2 billion and promissory notes and surety bonds of $91.9 million, related to contracts to purchase land and lots with a total remaining purchase price of approximately $17.1 billion. The majority of land and lots under contract are currently expected to be purchased within three years. Of these amounts, $141.5 million of the deposits related to contracts with Forestar to purchase land and lots with a remaining purchase price of $1.5 billion. A limited number of the homebuilding land and lot purchase contracts at December 31, 2021, representing $87.7 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 $87.7 million remaining purchase price subject to specific performance provisions, $64.8 million related to contracts between the homebuilding segment and Forestar. During the three months ended December 31, 2021 and 2020, Forestar reimbursed the homebuilding segment $2.7 million and $16.1 million, respectively, for previously paid earnest money and $21.6 million and $20.9 million, respectively, for pre-acquisition and other due diligence costs related to land purchase contracts whereby the homebuilding segment assigned its rights under contract to Forestar. Other Commitments At December 31, 2021, the Company had outstanding surety bonds of $2.4 billion and letters of credit of $253.5 million to secure performance under various contracts. Of the total letters of credit, $187.2 million were issued under the homebuilding revolving credit facility and $66.3 million were issued under Forestar’s revolving credit facility. |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities | 3 Months Ended |
Dec. 31, 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 December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, (In millions) Earnest money and refundable deposits $ 1,278.9 $ 1,079.8 Insurance receivables 107.0 109.5 Other receivables 154.3 153.6 Prepaid assets 70.4 51.6 Contract assets - insurance agency commissions 60.8 58.6 Lease right of use assets 38.1 35.6 Interest rate lock commitments 24.6 17.9 Mortgage servicing rights 8.3 4.1 Other 45.1 49.9 $ 1,787.5 $ 1,560.6 The Company’s accrued expenses and other liabilities at December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, (In millions) Reserves for legal claims $ 585.2 $ 577.5 Employee compensation and related liabilities 428.1 492.1 Warranty liability 390.0 376.3 Customer deposits 218.2 193.4 Inventory related accruals 274.5 261.2 Federal and state income tax liabilities 430.5 88.2 Accrued property taxes 32.2 51.0 Lease liabilities 39.3 37.0 Accrued interest 37.2 31.5 Other 144.8 102.1 $ 2,580.0 $ 2,210.3 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 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. As of December 31, 2021, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% 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, 2021, 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, 2021. |
Reclassifications | Reclassifications During the fourth quarter of fiscal 2021, the Company changed its internal organization and reporting of its operating segments and reportable segments to combine its single-family rental operations and its multi-family rental operations into a new reporting segment and realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. The prior year presentation of the Company’s segment information in Note B and in Management’s Discussion and Analysis of Financial Condition and Results of Operations has been conformed to the current presentation for all periods presented. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Pending Accounting Standards In March 2020, the Financial Accounting Standards Board (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 (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Financial information relating to the Company’s reporting segments is as follows: December 31, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,133.4 $ 162.5 $ 88.2 $ 44.2 $ 13.8 $ 2,442.1 Restricted cash 12.4 — 9.5 0.6 — 22.5 Inventories: Construction in progress and finished homes 8,879.5 — — — (136.6) 8,742.9 Residential land and lots — developed and under development 6,366.7 1,854.6 — — (58.9) 8,162.4 Land held for development 25.9 105.5 — — — 131.4 Land held for sale 24.8 — — — — 24.8 Rental properties — — — 1,161.1 (20.1) 1,141.0 15,296.9 1,960.1 — 1,161.1 (215.6) 18,202.5 Mortgage loans held for sale — — 1,833.3 — — 1,833.3 Deferred income taxes, net 141.6 — — — (4.0) 137.6 Property and equipment, net 315.5 4.2 3.3 0.7 86.7 410.4 Other assets 1,689.3 35.7 93.3 9.0 (39.8) 1,787.5 Goodwill 134.3 — — — 29.2 163.5 $ 19,723.4 $ 2,162.5 $ 2,027.6 $ 1,215.6 $ (129.7) $ 24,999.4 Liabilities Accounts payable $ 1,021.5 $ 53.5 $ — $ 75.7 $ — $ 1,150.7 Accrued expenses and other liabilities 2,316.4 345.7 75.7 8.9 (166.7) 2,580.0 Notes payable 3,291.0 704.9 1,260.0 — (0.6) 5,255.3 $ 6,628.9 $ 1,104.1 $ 1,335.7 $ 84.6 $ (167.3) $ 8,986.0 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. September 30, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Assets Cash and cash equivalents $ 2,950.1 $ 153.6 $ 79.0 $ 16.8 $ 10.9 $ 3,210.4 Restricted cash 8.4 — 18.0 0.4 — 26.8 Inventories: Construction in progress and finished homes 7,848.0 — — — (108.8) 7,739.2 Residential land and lots — developed and under development 6,004.0 1,824.7 — — (46.9) 7,781.8 Land held for development 30.4 80.5 — — — 110.9 Land held for sale 25.4 — — — — 25.4 Rental properties — — — 840.9 (19.1) 821.8 13,907.8 1,905.2 — 840.9 (174.8) 16,479.1 Mortgage loans held for sale — — 2,027.3 — — 2,027.3 Deferred income taxes, net 159.2 — — — (3.9) 155.3 Property and equipment, net 303.3 2.9 3.5 0.6 82.6 392.9 Other assets 1,468.7 40.0 107.6 6.3 (62.0) 1,560.6 Goodwill 134.3 — — — 29.2 163.5 $ 18,931.8 $ 2,101.7 $ 2,235.4 $ 865.0 $ (118.0) $ 24,015.9 Liabilities Accounts payable $ 1,073.7 $ 47.4 $ — $ 55.9 $ — $ 1,177.0 Accrued expenses and other liabilities 1,941.3 333.9 88.6 15.0 (168.5) 2,210.3 Notes payable 3,214.0 704.5 1,494.6 — (0.7) 5,412.4 $ 6,229.0 $ 1,085.8 $ 1,583.2 $ 70.9 $ (169.2) $ 8,799.7 ______________ (1) Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition. Three Months Ended December 31, 2021 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Revenues Home sales $ 6,656.4 $ — $ — $ — $ — $ 6,656.4 Land/lot sales and other 23.0 407.6 — — (374.4) 56.2 Rental property sales — — — 156.5 — 156.5 Financial services — — 184.3 — — 184.3 6,679.4 407.6 184.3 156.5 (374.4) 7,053.4 Cost of sales Home sales (3) 4,833.9 — — — (37.7) 4,796.2 Land/lot sales and other 17.1 333.6 — — (317.7) 33.0 Rental property sales — — — 72.5 (0.8) 71.7 Inventory and land option charges 3.9 0.6 — 0.3 — 4.8 4,854.9 334.2 — 72.8 (356.2) 4,905.7 Selling, general and administrative expense 497.7 21.5 125.3 18.5 2.9 665.9 Other (income) expense (6.2) (1.6) (8.1) (4.9) 5.3 (15.5) Income before income taxes $ 1,333.0 $ 53.5 $ 67.1 $ 70.1 $ (26.4) $ 1,497.3 Summary Cash Flow Information Depreciation and amortization $ 15.4 $ 0.5 $ 0.4 $ 0.1 $ 3.0 $ 19.4 Cash (used in) provided by operating activities $ (114.7) $ 5.8 $ 247.5 $ (255.9) $ (56.8) $ (174.1) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (3) Amount in the Eliminations and Other 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. Three Months Ended December 31, 2020 Homebuilding Forestar (1) Financial Services Rental Eliminations and Other (2) Consolidated (In millions) Revenues Home sales $ 5,698.7 $ — $ — $ — $ — $ 5,698.7 Land/lot sales and other 17.9 307.1 — — (277.5) 47.5 Rental property sales — — — 31.8 (31.8) — Financial services — — 187.2 — — 187.2 5,716.6 307.1 187.2 31.8 (309.3) 5,933.4 Cost of sales Home sales (3) 4,325.1 — — — (27.7) 4,297.4 Land/lot sales and other 13.7 262.5 — — (249.4) 26.8 Rental property sales — — — 17.8 (17.8) — Inventory and land option charges 7.9 0.4 — — — 8.3 4,346.7 262.9 — 17.8 (294.9) 4,332.5 Selling, general and administrative expense 449.4 15.5 109.5 9.3 2.2 585.9 Gain on sale of assets — — — — (14.0) (14.0) Other (income) expense (2.1) (0.5) (6.4) (3.9) 7.6 (5.3) Income before income taxes $ 922.6 $ 29.2 $ 84.1 $ 8.6 $ (10.2) $ 1,034.3 Summary Cash Flow Information Depreciation and amortization $ 16.4 $ 0.7 $ 0.4 $ 2.7 $ 2.7 $ 22.9 Cash (used in) provided by operating activities $ (269.6) $ (158.7) $ 173.1 $ (58.9) $ 62.0 $ (252.1) ______________ (1) Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. (2) Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. (3) Amount in the Eliminations and Other 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. Homebuilding Inventories by Reporting Segment (1) December 31, September 30, (In millions) Northwest $ 1,450.8 $ 1,307.5 Southwest 2,743.3 2,445.6 South Central 3,772.2 3,479.3 Southeast 3,444.9 3,178.6 East 2,118.3 1,919.6 North 1,558.4 1,368.9 Corporate and unallocated (2) 209.0 208.3 $ 15,296.9 $ 13,907.8 ____________________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Three Months Ended 2021 2020 (In millions) Revenues Northwest $ 569.0 $ 548.0 Southwest 911.6 838.6 South Central 1,694.3 1,363.5 Southeast 1,810.9 1,465.0 East 1,074.9 1,007.7 North 618.7 493.8 $ 6,679.4 $ 5,716.6 Income before Income Taxes Northwest $ 111.8 $ 86.8 Southwest 159.3 115.2 South Central 354.3 240.0 Southeast 415.4 247.2 East 202.3 170.7 North 89.9 62.7 $ 1,333.0 $ 922.6 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Dec. 31, 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: December 31, September 30, (In millions) Homebuilding: Unsecured: Revolving credit facility $ — $ — 4.375% senior notes due 2022 (1) 349.7 349.6 4.75% senior notes due 2023 (1) 299.6 299.5 5.75% senior notes due 2023 (1) 399.2 399.1 2.5% senior notes due 2024 (1) 497.5 497.3 2.6% senior notes due 2025 (1) 496.5 496.2 1.3% senior notes due 2026 (1) 594.8 594.5 1.4% senior notes due 2027 (1) 495.1 494.9 Other secured notes (2) 158.0 82.2 3,290.4 3,213.3 Forestar: Unsecured: Revolving credit facility — — 3.85% senior notes due 2026 (3) 395.7 395.5 5.0% senior notes due 2028 (3) 296.7 296.5 Other secured notes 12.5 12.5 704.9 704.5 Financial Services: Mortgage repurchase facility 1,260.0 1,494.6 Total (4) $ 5,255.3 $ 5,412.4 ____________________________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $15.4 million and $16.5 million at December 31, 2021 and September 30, 2021, respectively. (2) Homebuilding other secured notes excludes $0.6 million and $0.7 million of earnest money notes payable to Forestar at December 31, 2021 and September 30, 2021, respectively. These intercompany notes are eliminated in consolidation. (3) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $7.6 million and $8.0 million at December 31, 2021 and September 30, 2021, respectively. (4) The fair value of notes payable at December 31, 2021 totaled $5.3 billion, of which $3.9 billion was measured using Level 2 inputs and $1.4 billion was measured using Level 3 inputs. The fair value of notes payable at September 30, 2021 totaled $5.5 billion, of which $3.9 billion was measured using Level 2 inputs and $1.6 billion was measured using Level 3 inputs. |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 3 Months Ended |
Dec. 31, 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 months ended December 31, 2021 and 2020: Three Months Ended 2021 2020 (In millions) Capitalized interest, beginning of period $ 217.7 $ 207.7 Interest incurred (1) 36.9 40.4 Interest charged to cost of sales (33.3) (33.0) Capitalized interest, end of period $ 221.3 $ 215.1 __________________ (1) Interest incurred includes interest on the Company's mortgage repurchase facility of $4.0 million and $4.5 million in the three months ended December 31, 2021 and 2020, respectively, and Forestar interest of $8.1 million and $11.5 million in those periods. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 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 2021 2020 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 1,141.6 $ 791.8 Denominator: Denominator for basic earnings per share — weighted average common shares 356.1 364.4 Effect of dilutive securities: Employee stock awards 4.0 5.6 Denominator for diluted earnings per share — adjusted weighted average common shares 360.1 370.0 Basic net income per common share attributable to D.R. Horton, Inc. $ 3.21 $ 2.17 Diluted net income per common share attributable to D.R. Horton, Inc. $ 3.17 $ 2.14 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in warranty liability | Changes in the Company’s warranty liability during the three months ended December 31, 2021 and 2020 were as follows: Three Months Ended 2021 2020 (In millions) Warranty liability, beginning of period $ 376.3 $ 310.2 Warranties issued 38.8 33.3 Changes in liability for pre-existing warranties 4.4 2.6 Settlements made (29.5) (22.1) Warranty liability, end of period $ 390.0 $ 324.0 |
Changes in legal claims reserves | Changes in the Company’s legal claims reserves during the three months ended December 31, 2021 and 2020 were as follows: Three Months Ended 2021 2020 (In millions) Reserves for legal claims, beginning of period $ 577.5 $ 473.8 Increase in reserves 14.5 24.2 Payments (6.8) (6.2) Reserves for legal claims, end of period $ 585.2 $ 491.8 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Other assets | The Company’s other assets at December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, (In millions) Earnest money and refundable deposits $ 1,278.9 $ 1,079.8 Insurance receivables 107.0 109.5 Other receivables 154.3 153.6 Prepaid assets 70.4 51.6 Contract assets - insurance agency commissions 60.8 58.6 Lease right of use assets 38.1 35.6 Interest rate lock commitments 24.6 17.9 Mortgage servicing rights 8.3 4.1 Other 45.1 49.9 $ 1,787.5 $ 1,560.6 |
Accrued expenses and other liabilities | The Company’s accrued expenses and other liabilities at December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, (In millions) Reserves for legal claims $ 585.2 $ 577.5 Employee compensation and related liabilities 428.1 492.1 Warranty liability 390.0 376.3 Customer deposits 218.2 193.4 Inventory related accruals 274.5 261.2 Federal and state income tax liabilities 430.5 88.2 Accrued property taxes 32.2 51.0 Lease liabilities 39.3 37.0 Accrued interest 37.2 31.5 Other 144.8 102.1 $ 2,580.0 $ 2,210.3 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Dec. 31, 2021Segments | |
HomeBuildingMember | |
Entity Information [Line Items] | |
Number of homebuilding reporting segments | 6 |
Forestar Group [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 37.00% |
Entity Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 37.00% |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Dec. 31, 2021StateSegmentsMarketOperatingDivisions | |
Forestar Group [Member] | |
Segment Reporting Information [Line Items] | |
Number of housing construction markets | Market | 55 |
Number of housing construction states | State | 23 |
HomeBuildingMember | |
Segment Reporting Information [Line Items] | |
Number of housing construction markets | Market | 102 |
Number of housing construction states | State | 32 |
Number of home building operating divisions | OperatingDivisions | 77 |
Number of homebuilding reporting segments | Segments | 6 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Assets [Abstract] | |||
Cash and cash equivalents | $ 2,442.1 | $ 3,210.4 | |
Restricted cash | 22.5 | 26.8 | |
Inventories: | |||
Construction in progress and finished homes | 8,742.9 | 7,739.2 | |
Residential land and lots — developed and under development | 8,162.4 | 7,781.8 | |
Land held for development | 131.4 | 110.9 | |
Land held for sale | 24.8 | 25.4 | |
Rental properties | 1,141 | 821.8 | |
Total inventories | 18,202.5 | 16,479.1 | |
Mortgage loans held for sale | 1,833.3 | 2,027.3 | |
Deferred income taxes, net | 137.6 | 155.3 | |
Property and equipment, net | 410.4 | 392.9 | |
Other assets | 1,787.5 | 1,560.6 | |
Goodwill | 163.5 | 163.5 | |
Total assets | 24,999.4 | 24,015.9 | |
Liabilities [Abstract] | |||
Accounts payable | 1,150.7 | 1,177 | |
Accrued expenses and other liabilities | 2,580 | 2,210.3 | |
Notes payable | 5,255.3 | 5,412.4 | |
Total liabilities | 8,986 | 8,799.7 | |
Revenues | |||
Total revenues | 7,053.4 | $ 5,933.4 | |
Inventory and land option charges | 4.8 | 8.3 | |
Cost of sales | 4,905.7 | 4,332.5 | |
Selling, General and Administrative Expense | 665.9 | 585.9 | |
Gain on sale of assets | 0 | (14) | |
Other (income) expense | (15.5) | (5.3) | |
Income (loss) before income taxes | 1,497.3 | 1,034.3 | |
Depreciation and amortization | 19.4 | 22.9 | |
Cash provided by (used in) operating activities | (174.1) | (252.1) | |
HomeBuildingMember | |||
Revenues | |||
Home sales | 6,656.4 | 5,698.7 | |
Cost of Goods and Services Sold | 4,796.2 | 4,297.4 | |
Land [Member] | |||
Revenues | |||
Home sales | 56.2 | 47.5 | |
Cost of Goods and Services Sold | 33 | 26.8 | |
Financial Services [Member] | |||
Revenues | |||
Home sales | 184.3 | 187.2 | |
Rental | |||
Revenues | |||
Home sales | 156.5 | 0 | |
Cost of Goods and Services Sold | 71.7 | 0 | |
Intersegment Eliminations [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 13.8 | 10.9 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | (136.6) | (108.8) | |
Residential land and lots — developed and under development | (58.9) | (46.9) | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | (20.1) | (19.1) | |
Total inventories | (215.6) | (174.8) | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | (4) | (3.9) | |
Property and equipment, net | 86.7 | 82.6 | |
Other assets | (39.8) | (62) | |
Goodwill | 29.2 | 29.2 | |
Total assets | (129.7) | (118) | |
Liabilities [Abstract] | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | (166.7) | (168.5) | |
Notes payable | (0.6) | (0.7) | |
Total liabilities | (167.3) | (169.2) | |
Revenues | |||
Total revenues | (374.4) | (309.3) | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | (356.2) | (294.9) | |
Selling, General and Administrative Expense | 2.9 | 2.2 | |
Gain on sale of assets | (14) | ||
Other (income) expense | 5.3 | 7.6 | |
Income (loss) before income taxes | (26.4) | (10.2) | |
Depreciation and amortization | 3 | 2.7 | |
Cash provided by (used in) operating activities | (56.8) | 62 | |
Intersegment Eliminations [Member] | HomeBuildingMember | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | (37.7) | (27.7) | |
Intersegment Eliminations [Member] | Land [Member] | |||
Revenues | |||
Home sales | (374.4) | (277.5) | |
Cost of Goods and Services Sold | (317.7) | (249.4) | |
Intersegment Eliminations [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Intersegment Eliminations [Member] | Rental | |||
Revenues | |||
Home sales | 0 | (31.8) | |
Cost of Goods and Services Sold | (0.8) | (17.8) | |
HomeBuildingMember | |||
Assets [Abstract] | |||
Cash and cash equivalents | 2,133.4 | 2,950.1 | |
Restricted cash | 12.4 | 8.4 | |
Inventories: | |||
Construction in progress and finished homes | 8,879.5 | 7,848 | |
Residential land and lots — developed and under development | 6,366.7 | 6,004 | |
Land held for development | 25.9 | 30.4 | |
Land held for sale | 24.8 | 25.4 | |
Rental properties | 0 | 0 | |
Total inventories | 15,296.9 | 13,907.8 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 141.6 | 159.2 | |
Property and equipment, net | 315.5 | 303.3 | |
Other assets | 1,689.3 | 1,468.7 | |
Goodwill | 134.3 | 134.3 | |
Total assets | 19,723.4 | 18,931.8 | |
Liabilities [Abstract] | |||
Accounts payable | 1,021.5 | 1,073.7 | |
Accrued expenses and other liabilities | 2,316.4 | 1,941.3 | |
Notes payable | 3,291 | 3,214 | |
Total liabilities | 6,628.9 | 6,229 | |
Revenues | |||
Total revenues | 6,679.4 | 5,716.6 | |
Inventory and land option charges | 3.9 | 7.9 | |
Cost of sales | 4,854.9 | 4,346.7 | |
Selling, General and Administrative Expense | 497.7 | 449.4 | |
Gain on sale of assets | 0 | ||
Other (income) expense | (6.2) | (2.1) | |
Income (loss) before income taxes | 1,333 | 922.6 | |
Depreciation and amortization | 15.4 | 16.4 | |
Cash provided by (used in) operating activities | (114.7) | (269.6) | |
HomeBuildingMember | HomeBuildingMember | |||
Revenues | |||
Home sales | 6,656.4 | 5,698.7 | |
Cost of Goods and Services Sold | 4,833.9 | 4,325.1 | |
HomeBuildingMember | Land [Member] | |||
Revenues | |||
Home sales | 23 | 17.9 | |
Cost of Goods and Services Sold | 17.1 | 13.7 | |
HomeBuildingMember | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
HomeBuildingMember | Rental | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Forestar Group [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 162.5 | 153.6 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 1,854.6 | 1,824.7 | |
Land held for development | 105.5 | 80.5 | |
Land held for sale | 0 | 0 | |
Rental properties | 0 | 0 | |
Total inventories | 1,960.1 | 1,905.2 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 4.2 | 2.9 | |
Other assets | 35.7 | 40 | |
Goodwill | 0 | 0 | |
Total assets | 2,162.5 | 2,101.7 | |
Liabilities [Abstract] | |||
Accounts payable | 53.5 | 47.4 | |
Accrued expenses and other liabilities | 345.7 | 333.9 | |
Notes payable | 704.9 | 704.5 | |
Total liabilities | 1,104.1 | 1,085.8 | |
Revenues | |||
Total revenues | 407.6 | 307.1 | |
Inventory and land option charges | 0.6 | 0.4 | |
Cost of sales | 334.2 | 262.9 | |
Selling, General and Administrative Expense | 21.5 | 15.5 | |
Gain on sale of assets | 0 | ||
Other (income) expense | (1.6) | (0.5) | |
Income (loss) before income taxes | 53.5 | 29.2 | |
Depreciation and amortization | 0.5 | 0.7 | |
Cash provided by (used in) operating activities | 5.8 | (158.7) | |
Forestar Group [Member] | HomeBuildingMember | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Forestar Group [Member] | Land [Member] | |||
Revenues | |||
Home sales | 407.6 | 307.1 | |
Cost of Goods and Services Sold | 333.6 | 262.5 | |
Forestar Group [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Forestar Group [Member] | Rental | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Financial Services [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 88.2 | 79 | |
Restricted cash | 9.5 | 18 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | 0 | 0 | |
Total inventories | 0 | 0 | |
Mortgage loans held for sale | 1,833.3 | 2,027.3 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 3.3 | 3.5 | |
Other assets | 93.3 | 107.6 | |
Goodwill | 0 | 0 | |
Total assets | 2,027.6 | 2,235.4 | |
Liabilities [Abstract] | |||
Accounts payable | 0 | 0 | |
Accrued expenses and other liabilities | 75.7 | 88.6 | |
Notes payable | 1,260 | 1,494.6 | |
Total liabilities | 1,335.7 | 1,583.2 | |
Revenues | |||
Total revenues | 184.3 | 187.2 | |
Inventory and land option charges | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling, General and Administrative Expense | 125.3 | 109.5 | |
Gain on sale of assets | 0 | ||
Other (income) expense | (8.1) | (6.4) | |
Income (loss) before income taxes | 67.1 | 84.1 | |
Depreciation and amortization | 0.4 | 0.4 | |
Cash provided by (used in) operating activities | 247.5 | 173.1 | |
Financial Services [Member] | HomeBuildingMember | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Financial Services [Member] | Land [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Financial Services [Member] | Financial Services [Member] | |||
Revenues | |||
Home sales | 184.3 | 187.2 | |
Financial Services [Member] | Rental | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Rental | |||
Assets [Abstract] | |||
Cash and cash equivalents | 44.2 | 16.8 | |
Restricted cash | 0.6 | 0.4 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | 1,161.1 | 840.9 | |
Total inventories | 1,161.1 | 840.9 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 0.7 | 0.6 | |
Other assets | 9 | 6.3 | |
Goodwill | 0 | 0 | |
Total assets | 1,215.6 | 865 | |
Liabilities [Abstract] | |||
Accounts payable | 75.7 | 55.9 | |
Accrued expenses and other liabilities | 8.9 | 15 | |
Notes payable | 0 | 0 | |
Total liabilities | 84.6 | 70.9 | |
Revenues | |||
Total revenues | 156.5 | 31.8 | |
Inventory and land option charges | 0.3 | 0 | |
Cost of sales | 72.8 | 17.8 | |
Selling, General and Administrative Expense | 18.5 | 9.3 | |
Gain on sale of assets | 0 | ||
Other (income) expense | (4.9) | (3.9) | |
Income (loss) before income taxes | 70.1 | 8.6 | |
Depreciation and amortization | 0.1 | 2.7 | |
Cash provided by (used in) operating activities | (255.9) | (58.9) | |
Rental | HomeBuildingMember | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Rental | Land [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Rental | Financial Services [Member] | |||
Revenues | |||
Home sales | 0 | 0 | |
Rental | Rental | |||
Revenues | |||
Home sales | 156.5 | 31.8 | |
Cost of Goods and Services Sold | 72.5 | 17.8 | |
Northwest | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 1,450.8 | 1,307.5 | |
Revenues | |||
Total revenues | 569 | 548 | |
Income (loss) before income taxes | 111.8 | 86.8 | |
Southwest [Member] | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 2,743.3 | 2,445.6 | |
Revenues | |||
Total revenues | 911.6 | 838.6 | |
Income (loss) before income taxes | 159.3 | 115.2 | |
South Central [Member] | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 3,772.2 | 3,479.3 | |
Revenues | |||
Total revenues | 1,694.3 | 1,363.5 | |
Income (loss) before income taxes | 354.3 | 240 | |
Southeast [Member] | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 3,444.9 | 3,178.6 | |
Revenues | |||
Total revenues | 1,810.9 | 1,465 | |
Income (loss) before income taxes | 415.4 | 247.2 | |
East [Member] | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 2,118.3 | 1,919.6 | |
Revenues | |||
Total revenues | 1,074.9 | 1,007.7 | |
Income (loss) before income taxes | 202.3 | 170.7 | |
North | HomeBuildingMember | |||
Inventories: | |||
Total inventories | 1,558.4 | 1,368.9 | |
Revenues | |||
Total revenues | 618.7 | 493.8 | |
Income (loss) before income taxes | 89.9 | $ 62.7 | |
Corporate, Non-Segment [Member] | HomeBuildingMember | |||
Inventories: | |||
Total inventories | $ 209 | $ 208.3 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory [Line Items] | ||
Impairment charges | $ 0 | $ 5.6 |
Write-offs (recoveries) of earnest money deposits and pre-acquisition costs | $ 4.8 | $ 2.7 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 253.5 | |||
Notes payable | 5,255.3 | $ 5,412.4 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable, Fair value | 3,900 | 3,900 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable, Fair value | 1,400 | 1,600 | ||
Estimate of Fair Value Measurement [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable, Fair value | 5,300 | 5,500 | ||
Intersegment Eliminations [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | (0.6) | (0.7) | ||
Forestar Group [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized Debt Issuance Expense | 7.6 | 8 | ||
Notes payable | 704.9 | 704.5 | ||
Financial Services [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | 1,400 | |||
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Repurchase Agreements | 1,700 | |||
Participating Mortgage Loans, Mortgage Obligations, Amount | 1,700 | |||
Advance Pay Downs on Mortgage Repurchase Facility | $ 436.5 | |||
Assets Sold under Agreements to Repurchase, Interest Rate | 2.10% | |||
Notes payable | $ 1,260 | 1,494.6 | ||
Financial Services [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | 1,633 | |||
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% | |||
Revolving credit facility | $ 0 | 0 | ||
Letters of Credit Outstanding, Amount | 66.3 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 343.7 | |||
Debt Repurchase Authorization Remaining | 30 | |||
Authorized Repurchase Of Debt Securities | $ 30 | |||
Letter of Credit, Maximum Borrowing Capacity (in dollars) | 100 | |||
Notes payable | 704.9 | 704.5 | ||
Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Unamortized Debt Issuance Expense | 15.4 | 16.5 | ||
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% | |||
Revolving credit facility | $ 0 | 0 | ||
Letters of Credit Outstanding, Amount | 187.2 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 2,000 | |||
Debt Repurchase Authorization Remaining | 500 | |||
Authorized Repurchase Of Debt Securities | $ 500 | |||
Notes payable | 3,290.4 | 3,213.3 | ||
4.375% senior notes due 2022 [Member] | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 349.7 | 349.6 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | |||
4.75% senior notes due 2023 [Member] | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 299.6 | 299.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
5.75% senior notes due 2023 [Member] | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 399.2 | 399.1 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
SeniorNoteFortyTwo [Member] | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 497.5 | 497.3 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||
SeniorNoteFortyFour | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 496.5 | 496.2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | |||
Senior Note Forty Six | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 594.8 | 594.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | |||
Senior Note Forty Five | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 495.1 | 494.9 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.40% | |||
Senior Note Member Forty Six | Forestar Group [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 395.7 | 395.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | |||
Senior Note Member Forty Three | Forestar Group [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 296.7 | 296.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
Secured Debt [Member] | Forestar Group [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 12.5 | 12.5 | ||
Secured Debt [Member] | Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 158 | $ 82.2 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Rollforward of capitalized interest | ||
Capitalized interest, beginning of period | $ 217.7 | $ 207.7 |
Interest incurred | 36.9 | 40.4 |
Interest charged to cost of sales | (33.3) | (33) |
Capitalized interest, end of period | 221.3 | 215.1 |
Financial Services [Member] | ||
Rollforward of capitalized interest | ||
Interest incurred | 4 | 4.5 |
Forestar Group [Member] | ||
Rollforward of capitalized interest | ||
Interest incurred | $ 8.1 | $ 11.5 |
Mortgage Loans Mortgage Loans H
Mortgage Loans Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Mortgage loans held for sale | $ 1,833.3 | $ 2,027.3 | |
Mortgage loans held for sale, outstanding principal amount | 1,790 | 1,970 | |
Payments for Origination of Mortgage Loans Held-for-sale | 3,900 | $ 3,500 | |
Proceeds from Sale of Mortgage Loans Held-for-sale | 4,100 | 3,600 | |
Gain (Loss) on Sales of Loans, Net | 134.1 | $ 138.9 | |
Interest rate lock commitments [Member] | |||
Derivative, Notional Amount | $ 1,800 | 1,500 | |
Loans Sold to FNMA or securities backed by GNMA [Member] | Customer Concentration Risk | Mortgage Loans | |||
Concentration Risk, Percentage | 61.00% | ||
Other Customer [Member] | Customer Concentration Risk | Mortgage Loans | |||
Concentration Risk, Percentage | 30.00% | ||
Loan Origination Commitments [Member] | |||
Derivative, Notional Amount | $ 1,200 | 834.6 | |
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 | $ 1.3 | $ 1.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 351.5 | $ 239.1 | |
Effective tax rate (percent) | 23.50% | 23.10% | |
Deferred tax assets net of DTL | $ 141.7 | $ 159.5 | |
Valuation allowance for deferred income taxes | $ 4.1 | $ 4.2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net Income (Loss) Attributable to Parent | $ 1,141.6 | $ 791.8 |
Denominator: | ||
Denominator for basic earnings per share — weighted average common shares | 356.1 | 364.4 |
Effect of dilutive securities: | ||
Employee stock awards (shares) | 4 | 5.6 |
Denominator for diluted earnings per share — adjusted weighted average common shares | 360.1 | 370 |
Basic net income per common share attributable to Parent (in dollars per share) | $ 3.21 | $ 2.17 |
Diluted net income per common share attributable to Parent (in dollars per share) | $ 3.17 | $ 2.14 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2021 | Apr. 30, 2021 | |
Class of Stock [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | |||||||
Treasury Stock, Shares, Acquired | 2,700,000 | |||||||
Payments for Repurchase of Common Stock | $ 278.2 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 268 | |||||||
Divedends declared (in dollars per sh | $ 0.225 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |||
Cash dividends paid per common share (in dollars per share) | $ 0.225 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Divedends declared (in dollars per sh | $ 0.225 | |||||||
Forestar Group [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Equity Securities Registered, Value | $ 750 | |||||||
At-the-market Equity Offering Program, Common Stock Available for Issuance | $ 298.2 | $ 300 | ||||||
At-the-market Equity Offering Program, Common Stock Issued | 84,547 | |||||||
Stock Issued During Period, Value, New Issues | $ 1.7 | |||||||
Common Stock Available for Issuance, Value Remaining | 748.2 | |||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 0.1 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Noncash Expense | $ 23.7 | $ 21.7 |
Performance Shares [Member] | October Two Thousand Twenty One Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs granted in the period | 390,000 | |
Award vesting period | 3 years | |
Fair value of equity awards on the date of grant (in US$ per unit) | $ 89.95 | |
Share-based Payment Arrangement, Noncash Expense | $ 4.1 | |
Performance Shares [Member] | October Two Thousand Twenty One Grant | 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] | October Two Thousand Twenty One Grant | 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 | $ 21.9 | $ 21.2 |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Claims (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Standard Product Warranty Accrual | $ 390 | $ 324 | $ 376.3 | $ 310.2 |
Standard Product Warranty Accrual, Increase for Warranties Issued | 38.8 | 33.3 | ||
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 4.4 | 2.6 | ||
Standard Product Warranty Accrual, Decrease for Payments | $ 29.5 | $ 22.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies [Abstract] | ||||
Liabilities for various claims, complaints and other legal actions | $ 585.2 | $ 491.8 | $ 577.5 | $ 473.8 |
Construction defect portion of loss contingency accrual, percentage | 99.00% | 99.00% | ||
Expenses related to legal claims | $ 12.9 | 17.4 | ||
Estimated insurance recoveries related to legal claims | 107 | 82.2 | $ 109.5 | |
Earnest money deposits | 1,300 | |||
Remaining purchase price of land under option contracts | 17,100 | |||
Surety bonds | 2,400 | |||
Outstanding letters of credit | 253.5 | |||
Option Contracts Subject to Specific Performance Clauses [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Remaining purchase price of land under option contracts | 87.7 | |||
Cash [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 1,200 | |||
Notes Payable, Other Payables [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 91.9 | |||
Home Building Consolidated | ||||
Commitments and Contingencies [Abstract] | ||||
Outstanding letters of credit | 187.2 | |||
Forestar Group [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Outstanding letters of credit | 66.3 | |||
Forestar Group [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Earnest money deposits | 141.5 | |||
Remaining purchase price of land under option contracts | 1,500 | |||
Increase (Decrease) in Earnest Money Deposits Outstanding | 2.7 | 16.1 | ||
Increase (Decrease) in Prepaid Expenses, Other | 21.6 | $ 20.9 | ||
Forestar Group [Member] | Option Contracts Subject to Specific Performance Clauses [Member] | ||||
Commitments and Contingencies [Abstract] | ||||
Remaining purchase price of land under option contracts | $ 64.8 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal Claims and Insurance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Rollforward of reserves for legal claims | ||
Reserves for legal claims, beginning of period | $ 577.5 | $ 473.8 |
Increase in reserves | 14.5 | 24.2 |
Payments | (6.8) | (6.2) |
Reserves for legal claims, end of period | $ 585.2 | $ 491.8 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Other assets | ||||
Earnest money and refundable deposits | $ 1,278.9 | $ 1,079.8 | ||
Insurance receivables | 107 | 109.5 | $ 82.2 | |
Other receivables | 154.3 | 153.6 | ||
Prepaid assets | 70.4 | 51.6 | ||
Contract assets - insurance agency commissions | 60.8 | 58.6 | ||
Lease right of use assets | 38.1 | 35.6 | ||
Mortgage servicing rights | 8.3 | 4.1 | ||
Other | 45.1 | 49.9 | ||
Other assets | 1,787.5 | 1,560.6 | ||
Accrued expenses and other liabilities | ||||
Reserves for legal claims | 585.2 | 577.5 | 491.8 | $ 473.8 |
Employee compensation and related liabilities | 428.1 | 492.1 | ||
Warranty liability | 390 | 376.3 | $ 324 | $ 310.2 |
Customer deposits | 218.2 | 193.4 | ||
Inventory related accruals | 274.5 | 261.2 | ||
Federal and state income tax liabilities | 430.5 | 88.2 | ||
Accrued property taxes | 32.2 | 51 | ||
Lease liabilities | 39.3 | 37 | ||
Accrued interest | 37.2 | 31.5 | ||
Other | 144.8 | 102.1 | ||
Accrued expenses and other liabilities | 2,580 | 2,210.3 | ||
Interest rate lock commitments [Member] | ||||
Other assets | ||||
Interest rate lock commitments | $ 24.6 | $ 17.9 |