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, 2017. Financial information relating to the Company’s reporting segments is as follows:



	June 30, 2018
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)			Other Adjustments (4)			Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	748.0	$	367.7	$	43.1	$	19.4	$	—		$	—		$	1,178.2
Restricted cash	11.2		40.0		7.5		—		—			—			58.7
Inventories:
Construction in progress and finished homes	5,194.8		—		—		—		—			—			5,194.8
Residential land and lots — developed and under development	4,590.1		325.9		—		—		0.4			31.8			4,948.2
Land held for development	82.1		34.9		—		—		—			—			117.0
Land held for sale	43.3		—		—		—		—			—			43.3
	9,910.3		360.8		—		—		0.4			31.8			10,303.3
Investment in unconsolidated entities	—		18.0		—		—		—			14.2			32.2
Mortgage loans held for sale	—		—		679.9		—		—			—			679.9
Deferred income taxes, net	203.2		1.3		—		—		—			0.1			204.6
Property and equipment, net	205.5		1.8		3.0		174.9		—			—			385.2
Other assets	594.2		21.2		44.0		3.4		(39.5		)	18.8			642.1
Goodwill	80.0		—		—		—		—			29.2			109.2
	$	11,752.4	$	810.8	$	777.5	$	197.7	$	(39.1	)	$	94.1		$	13,593.4
Liabilities
Accounts payable	$	641.8	$	7.4	$	3.9	$	5.4	$	(3.2	)	$	—		$	655.3
Accrued expenses and other liabilities	1,007.6		72.8		38.9		12.8		(36.7		)	(20.8		)	1,074.6
Notes payable	2,447.1		110.5		526.3		—		—			9.7			3,093.6
	$	4,096.5	$	190.7	$	569.1	$	18.2	$	(39.9	)	$	(11.1	)	$	4,823.5

______________


(1)	Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.


(2)	Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.


(3)	Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.


(4)	Amounts represent purchase accounting adjustments related to the Forestar acquisition.



	September 30, 2017
	Homebuilding		Financial Services		Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	973.0	$	24.1	$	10.7	$	1,007.8
Restricted cash	9.3		7.2		—		16.5
Inventories:
Construction in progress and finished homes	4,606.0		—		—		4,606.0
Residential land and lots — developed and under development	4,519.7		—		—		4,519.7
Land held for development	101.0		—		—		101.0
Land held for sale	10.4		—		—		10.4
	9,237.1		—		—		9,237.1
Mortgage loans held for sale	—		587.3		—		587.3
Deferred income taxes, net	365.0		—		—		365.0
Property and equipment, net	194.4		3.0		127.6		325.0
Other assets	518.7		42.2		5.0		565.9
Goodwill	80.0		—		—		80.0
	$	11,377.5	$	663.8	$	143.3	$	12,184.6
Liabilities
Accounts payable	$	575.6	$	1.5	$	3.3	$	580.4
Accrued expenses and other liabilities	933.1		35.6		16.3		985.0
Notes payable	2,451.6		420.0		—		2,871.6
	$	3,960.3	$	457.1	$	19.6	$	4,437.0

______________


(1)	Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.



	Three Months Ended June 30, 2018
	Homebuilding			Forestar (1)			Financial Services			Other (2)			Eliminations (3)			Other Adjustments (4)			Consolidated
	(In millions)
Revenues:
Home sales	$	4,265.5		$	—		$	—		$	—		$	—		$	—		$	4,265.5
Land/lot sales and other	59.1			23.6			—			—			(8.8		)	(1.2		)	72.7
Financial services	—			—			97.1			—			—			—			97.1
	4,324.6			23.6			97.1			—			(8.8		)	(1.2		)	4,435.3
Cost of sales:
Home sales	3,332.8			—			—			—			—			—			3,332.8
Land/lot sales and other	45.4			10.0			—			—			(5.6		)	5.7			55.5
Inventory and land option charges	8.9			—			—			—			—			—			8.9
	3,387.1			10.0			—			—			(5.6		)	5.7			3,397.2
Selling, general and administrative expense	349.1			6.5			71.1			8.1			—			0.1			434.9
Equity in earnings of unconsolidated entities	—			(1.0		)	—			—			—			0.6			(0.4		)
Gain on sale of assets	—			(1.3		)	—			—			—			1.3			—
Interest expense	—			1.6			—			—			(1.6		)	—			—
Other (income) expense	(1.3		)	(2.7		)	(4.3		)	(5.0		)	—			0.7			(12.6		)
Income (loss) before income taxes	$	589.7		$	10.5		$	30.3		$	(3.1	)	$	(1.6	)	$	(9.6	)	$	616.2

______________


(1)	Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.


(2)	Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.


(3)	Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.


(4)	Amounts represent purchase accounting adjustments related to the Forestar acquisition.



	Nine Months Ended June 30, 2018
	Homebuilding			Forestar (1)			Financial Services			Other (2)			Eliminations (3)			Other Adjustments (4)			Consolidated
	(In millions)
Revenues:
Home sales	$	11,122.1		$	—		$	—		$	—		$	—		$	—		$	11,122.1
Land/lot sales and other	109.2			77.0			—			—			(17.3		)	(1.2		)	167.7
Financial services	—			—			273.1			—			—			—			273.1
	11,231.3			77.0			273.1			—			(17.3		)	(1.2		)	11,562.9
Cost of sales:
Home sales	8,761.7			—			—			—			—			—			8,761.7
Land/lot sales and other	88.7			45.5			—			—			(12.3		)	12.6			134.5
Inventory and land option charges	42.8			—			—			—			—			—			42.8
	8,893.2			45.5			—			—			(12.3		)	12.6			8,939.0
Selling, general and administrative expense	976.6			25.6			199.6			17.8			—			0.3			1,219.9
Equity in earnings of unconsolidated entities	—			(10.1		)	—			—			—			7.0			(3.1		)
Gain on sale of assets	(13.4		)	(4.0		)	—			—			—			2.9			(14.5		)
Interest expense	—			5.8			—			—			(5.8		)	—			—
Other (income) expense	(4.6		)	(4.9		)	(10.5		)	(11.4		)	—			0.7			(30.7		)
Income (loss) before income taxes	$	1,379.5		$	19.1		$	84.0		$	(6.4	)	$	0.8		$	(24.7	)	$	1,452.3
Summary Cash Flow Information:
Depreciation and amortization	$	39.8		$	0.2		$	1.0		$	5.2		$	—		$	0.4		$	46.6
Cash provided by (used in) operating activities	$	565.2		$	(219.2	)	$	(27.0	)	$	(4.4	)	$	—		$	(8.1	)	$	306.5

______________


(1)	Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.


(2)	Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.


(3)	Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.


(4)	Amounts represent purchase accounting adjustments related to the Forestar acquisition.



	Three Months Ended June 30, 2017
	Homebuilding			Financial Services			Other (1)			Consolidated
	(In millions)
Revenues:
Home sales	$	3,662.3		$	—		$	—		$	3,662.3
Land/lot sales and other	22.2			—			—			22.2
Financial services	—			91.9			—			91.9
	3,684.5			91.9			—			3,776.4
Cost of sales:
Home sales	2,936.9			—			—			2,936.9
Land/lot sales and other	18.8			—			—			18.8
Inventory and land option charges	5.4			—			—			5.4
	2,961.1			—			—			2,961.1
Selling, general and administrative expense	309.5			62.1			2.9			374.5
Other (income) expense	(1.3		)	(4.1		)	1.7			(3.7		)
Income (loss) before income taxes	$	415.2		$	33.9		$	(4.6	)	$	444.5



	Nine Months Ended June 30, 2017
	Homebuilding			Financial Services			Other (1)			Consolidated
	(In millions)
Revenues:
Home sales	$	9,618.1		$	—		$	—		$	9,618.1
Land/lot sales and other	56.9			—			—			56.9
Financial services	—			256.9			—			256.9
	9,675.0			256.9			—			9,931.9
Cost of sales:
Home sales	7,713.8			—			—			7,713.8
Land/lot sales and other	45.2			—			—			45.2
Inventory and land option charges	19.9			—			—			19.9
	7,778.9			—			—			7,778.9
Selling, general and administrative expense	872.4			175.0			8.1			1,055.5
Other (income) expense	(7.8		)	(10.8		)	(0.4		)	(19.0		)
Income (loss) before income taxes	$	1,031.5		$	92.7		$	(7.7	)	$	1,116.5
Summary Cash Flow Information:
Depreciation and amortization	$	36.8		$	1.0		$	2.6		$	40.4
Cash (used in) provided by operating activities	$	(259.6	)	$	76.9		$	(3.0	)	$	(185.7	)

______________


(1)	Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.



Homebuilding Inventories by Reporting Segment (1)	June 30, 2018		September 30, 2017
	(In millions)
East	$	1,211.3	$	1,068.9
Midwest	540.3		492.6
Southeast	2,652.2		2,392.3
South Central	2,407.9		2,199.4
Southwest	527.5		506.1
West	2,346.1		2,352.5
Corporate and unallocated (2)	225.0		225.3
	$	9,910.3	$	9,237.1

_____________________________


(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 capitalized interest and property taxes.



Homebuilding Results by Reporting Segment	Three Months Ended June 30,				Nine Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Revenues
East	$	529.1	$	482.2	$	1,357.9	$	1,160.7
Midwest	256.7		202.2		621.7		522.0
Southeast	1,263.3		1,136.3		3,293.9		2,988.7
South Central	1,005.4		924.8		2,733.2		2,497.1
Southwest	220.1		152.6		548.6		387.8
West	1,050.0		786.4		2,676.0		2,118.7
	$	4,324.6	$	3,684.5	$	11,231.3	$	9,675.0
Inventory and Land Option Charges (1)
East	$	0.3	$	0.5	$	0.9	$	7.0
Midwest	4.3		1.3		4.7		1.6
Southeast	1.1		2.3		27.3		3.9
South Central	1.5		0.4		3.5		2.3
Southwest	—		—		0.8		0.1
West	1.7		0.9		5.6		5.0
	$	8.9	$	5.4	$	42.8	$	19.9
Income before Income Taxes (2)
East	$	67.1	$	54.2	$	158.7	$	106.4
Midwest	23.0		17.9		55.0		28.8
Southeast	156.1		128.6		374.9		341.3
South Central	143.3		119.1		365.2		321.4
Southwest	32.3		14.8		69.1		26.0
West	167.9		80.6		356.6		207.6
	$	589.7	$	415.2	$	1,379.5	$	1,031.5

_____________________________


(1)	To conform to the current year presentation, prior period amounts include earnest money and pre-acquisition cost write-offs.

(2)

Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.