Investment in Unconsolidated Entities

3 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

As a result of the Forestar acquisition, the Company obtained ownership interests in 15 entities that are accounted for by the equity method. The purpose of these entities is to acquire and develop residential, multi-family and mixed-use communities. At December 31, 2017, the Company’s investment in these unconsolidated entities was $86.1 million, which includes a purchase accounting adjustment of $21.0 million to increase the investments to their fair value at the acquisition date. The aggregate outstanding debt of these entities was $85.1 million, of which $79.5 million is non-recourse to the Company.

Summarized condensed financial information on a combined 100% basis related to the Company’s unconsolidated entities is as follows:

Balance Sheet



	December 31, 2017
	(In millions)
Assets:
Cash and cash equivalents	$	13.1
Inventories	168.9
Other assets	21.7
Total assets	$	203.7
Liabilities and Equity:
Accounts payable and other liabilities	$	13.1
Debt	85.1
Equity	105.5
Total liabilities and equity	$	203.7

Statement of Operations



	Three Months Ended December 31, 2017
	(In millions)
Revenues	$	8.7
Net earnings of unconsolidated entities (1)	$	17.4
D.R. Horton’s equity in earnings of unconsolidated entities (1)	$	2.3

___________________


(1)	Primarily relates to the gain on sale of a multi-family joint venture project in Nashville, Tennessee. D.R. Horton’s equity in earnings of unconsolidated entities of $2.3 million is after consideration of purchase accounting adjustments. Forestar’s equity in earnings of unconsolidated entities for the period from acquisition through December 31, 2017 was $7.6 million.