Investment in Unconsolidated Entities

6 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

At March 31, 2018, the Company’s Forestar segment owned interests in 6 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. On February 8, 2018, Forestar sold its ownership interest in 8 entities as part of the strategic asset sale described in Note C. At March 31, 2018, the Company’s investment in these unconsolidated entities was $32.1 million, which includes a purchase accounting adjustment of $14.8 million. The aggregate outstanding debt of these entities was $45.8 million, of which $41.2 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



	March 31, 2018
	(In millions)
Assets:
Cash and cash equivalents	$	6.4
Real estate	88.8
Other assets	1.3
Total assets	$	96.5
Liabilities and Equity:
Accounts payable and other liabilities	$	5.2
Debt	45.8
Equity	45.5
Total liabilities and equity	$	96.5

Statement of Operations



	Three Months Ended March 31, 2018		Six Months Ended March 31, 2018
	(In millions)
Revenues	$	3.4	$	12.1
Net earnings of unconsolidated entities (1)	$	4.3	$	21.7
D.R. Horton’s equity in earnings of unconsolidated entities (1)	$	0.4	$	2.7

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(1)

Earnings in the six-month period primarily relate 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 $0.4 million and $2.7 million in the three and six months ended March 31, 2018, respectively, is after consideration of purchase accounting adjustments. Forestar’s equity in earnings of unconsolidated entities for the three months ended March 31, 2018 was $1.5 million and for the period from acquisition through March 31, 2018 was $9.1 million.