Segment Information

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

Since the beginning of fiscal 2019, the Company has managed its operations through its real estate segment, which is its core business and generates substantially all of its revenues. The real estate segment primarily acquires land and develops infrastructure for single-family residential communities, and its revenues generally come from sales of residential single-family finished lots to local, regional and national homebuilders. The Company has other business activities for which the related assets and operating results are immaterial, and therefore are included within the Company's real estate segment. As such, the operating results of the Company's real estate segment are consistent with its consolidated operating results and no separate disclosure is required as of and for the fiscal years ended September 30, 2020 and 2019.

During the nine months ended September 30, 2018, the Company managed its operations through its real estate segment and other segment (previously referred to as other natural resources). Additionally, certain costs and assets were not allocated to the Company’s segments. The accounting policies of the segments are the same as those described throughout Note 1. Segment results for the nine months ended September 30, 2018 were as follows:

	Nine Months Ended September 30, 2018
	Real Estate		Other		Items Not Allocated		Consolidated
	(In millions)
Revenues	$	78.3	$	—	$	—	$	78.3
Cost of sales	48.9		0.6		—		49.5
Selling, general and administrative expense	7.1		0.3		12.0		19.4
Equity in earnings of unconsolidated ventures	(4.8)		—		—		(4.8)
Gain on sale of assets (1)	(18.6)		(9.2)		—		(27.8)
Interest expense	—		—		3.7		3.7
Interest and other income	(1.8)		—		(4.6)		(6.4)
Income before income taxes	47.5		8.3		(11.1)		44.7
Net income attributable to noncontrolling interests	1.2		—		—		1.2
Income before income taxes attributable to Forestar Group Inc.	$	46.3	$	8.3	$	(11.1)	$	43.5

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(1)Gain on sale of assets within the real estate segment consisted primarily of a gain of $14.6 million related to the sale of the Company's interest in a multi-family venture near Denver. Gain on sale of assets within the other segment relates to the sale of non-core water interests in Texas, Louisiana, Georgia and Alabama.