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Supplemental Guarantor Information
 9 Months Ended
Jun. 30, 2019
Supplemental Guarantor Information [Abstract]  
SUPPLEMENTAL GUARANTOR INFORMATION SUPPLEMENTAL GUARANTOR INFORMATION

All of the Company’s homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by D.R. Horton, Inc. and other subsidiaries (Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by the Company. The Company’s subsidiaries associated with the Forestar land development operation, the financial services operations and certain other subsidiaries do not guarantee the Company’s homebuilding senior notes or the homebuilding revolving credit facility (collectively, Non-Guarantor Subsidiaries). In lieu of providing separate financial statements for the Guarantor Subsidiaries, consolidating condensed financial statements are presented below. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that they are not material to investors.

The guarantees by a Guarantor Subsidiary will be automatically and unconditionally released and discharged upon: (1) the sale or other disposition of its common stock whereby it is no longer a subsidiary of the Company; (2) the sale or other disposition of all or substantially all of its assets (other than to the Company or another Guarantor); (3) its merger or consolidation with an entity other than the Company or another Guarantor; or (4) its ceasing to guarantee any of the Company’s publicly traded debt securities and ceasing to guarantee any of the Company’s obligations under the homebuilding revolving credit facility.


NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Balance Sheet
June 30, 2019

 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
412.7


$
115.3


$
336.2


$
—

 
$
864.2

Restricted cash
 
7.7

 
2.1

 
11.3

 
—

 
21.1

Investment in subsidiaries
 
7,055.5

 
—

 
—

 
(7,055.5
)
 
—

Inventories
 
4,315.7

 
6,271.7

 
1,143.3

 
(28.4
)
 
11,702.3

Mortgage loans held for sale
 
—

 
—

 
954.9

 
—

 
954.9

Deferred income taxes, net
 
61.4

 
90.5

 
18.4

 
3.6

 
173.9

Property and equipment, net
 
124.8

 
76.2

 
257.6

 
(4.4
)
 
454.2

Other assets
 
382.2

 
440.7

 
150.7

 
(83.7
)
 
889.9

Goodwill
 
—

 
134.3

 
29.2

 
—

 
163.5

Intercompany receivables
 
58.7

 
211.7

 
—

 
(270.4
)
 
—

Total Assets
 
$
12,418.7

 
$
7,342.5

 
$
2,901.6

 
$
(7,438.8
)
 
$
15,224.0

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
 
$
646.2

 
$
1,074.1

 
$
330.8

 
$
(92.4
)
 
$
1,958.7

Intercompany payables
 
—

 
—

 
270.4

 
(270.4
)
 
—

Notes payable
 
2,107.2

 
6.7

 
1,336.7

 
—

 
3,450.6

Total Liabilities
 
2,753.4

 
1,080.8

 
1,937.9

 
(362.8
)
 
5,409.3

Stockholders’ equity
 
9,665.3

 
6,261.7

 
793.9

 
(7,078.5
)
 
9,642.4

Noncontrolling interests
 
—

 
—

 
169.8

 
2.5

 
172.3

Total Equity
 
9,665.3

 
6,261.7

 
963.7

 
(7,076.0
)
 
9,814.7

Total Liabilities & Equity
 
$
12,418.7

 
$
7,342.5

 
$
2,901.6

 
$
(7,438.8
)
 
$
15,224.0


NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Balance Sheet
September 30, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
908.1

 
$
158.7

 
$
406.3

 
$
—

 
$
1,473.1

Restricted cash
 
6.6

 
2.0

 
24.3

 
—

 
32.9

Investment in subsidiaries
 
6,344.9

 
—

 
—

 
(6,344.9
)
 
—

Inventories
 
4,037.1

 
5,824.1

 
545.0

 
(11.2
)
 
10,395.0

Mortgage loans held for sale
 
—

 
—

 
796.4

 
—

 
796.4

Deferred income taxes, net
 
69.2

 
105.0

 
17.3

 
2.5

 
194.0

Property and equipment, net
 
111.2

 
66.1

 
230.7

 
(6.9
)
 
401.1

Other assets
 
306.6

 
361.3

 
90.2

 
(45.2
)
 
712.9

Goodwill
 
—

 
80.0

 
29.2

 
—

 
109.2

Intercompany receivables
 
246.2

 
27.3

 
—

 
(273.5
)
 
—

Total Assets
 
$
12,029.9

 
$
6,624.5

 
$
2,139.4

 
$
(6,679.2
)
 
$
14,114.6

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
 
$
590.8

 
$
1,000.4

 
$
210.1

 
$
(49.1
)
 
$
1,752.2

Intercompany payables
 
—

 
—

 
273.5

 
(273.5
)
 
—

Notes payable
 
2,443.9

 
2.1

 
757.5

 
—

 
3,203.5

Total Liabilities
 
3,034.7

 
1,002.5

 
1,241.1

 
(322.6
)
 
4,955.7

Stockholders’ equity
 
8,995.2

 
5,622.0

 
722.8

 
(6,355.6
)
 
8,984.4

Noncontrolling interests
 
—

 
—

 
175.5

 
(1.0
)
 
174.5

Total Equity
 
8,995.2

 
5,622.0

 
898.3

 
(6,356.6
)
 
9,158.9

Total Liabilities & Equity
 
$
12,029.9

 
$
6,624.5

 
$
2,139.4

 
$
(6,679.2
)
 
$
14,114.6



 

NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Three Months Ended June 30, 2019
 


D.R.
Horton, Inc.

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminations

Total
 

(In millions)
Revenues

$
1,939.3


$
2,820.9


$
219.2


$
(73.1
)

$
4,906.3

Cost of sales

1,529.6


2,286.9


82.4


(67.3
)

3,831.6

Selling, general and administrative expense

191.8


193.4


94.8


—


480.0

Gain on sale of assets
 
—

 
(0.2
)
 
(22.4
)
 
—

 
(22.6
)
Other (income) expense

(0.9
)

(0.5
)

(8.0
)

—


(9.4
)
Income before income taxes

218.8


341.3


72.4


(5.8
)

626.7

Income tax expense

53.7


84.1


16.8


(1.5
)

153.1

Equity in net income of subsidiaries, net of tax
 
314.6

 
—

 
—

 
(314.6
)
 
—

Net income

479.7


257.2


55.6


(318.9
)

473.6

Net loss attributable to noncontrolling interests
 
—

 
—

 
(1.9
)
 
0.7

 
(1.2
)
Net income attributable to D.R. Horton, Inc.
 
$
479.7

 
$
257.2

 
$
57.5

 
$
(319.6
)
 
$
474.8




NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Nine Months Ended June 30, 2019
 


D.R.
Horton, Inc.

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminations

Total
 

(In millions)
Revenues

$
4,850.2


$
7,322.3


$
523.3


$
(141.8
)

$
12,554.0

Cost of sales

3,836.6


5,957.8


172.8


(127.8
)

9,839.4

Selling, general and administrative expense

543.3


523.9


259.8


—


1,327.0

Gain on sale of assets
 
(2.0
)
 
(0.2
)
 
(49.2
)
 
(2.5
)
 
(53.9
)
Other (income) expense

(2.9
)

(1.3
)

(19.5
)

—


(23.7
)
Income before income taxes

475.2


842.1


159.4


(11.5
)

1,465.2

Income tax expense

114.2


202.3


36.8


(2.8
)

350.5

Equity in net income of subsidiaries, net of tax
 
764.2

 
—

 
—

 
(764.2
)
 
—

Net income

1,125.2


639.8


122.6


(772.9
)

1,114.7

Net loss attributable to noncontrolling interests
 
—

 
—

 
(1.9
)
 
3.4

 
1.5

Net income attributable to D.R. Horton, Inc.
 
$
1,125.2

 
$
639.8

 
$
124.5

 
$
(776.3
)
 
$
1,113.2



NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Three Months Ended June 30, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
Revenues
 
$
1,630.8

 
$
2,693.9

 
$
119.5

 
$
(8.9
)
 
$
4,435.3

Cost of sales
 
1,293.3

 
2,092.5

 
17.0

 
(5.6
)
 
3,397.2

Selling, general and administrative expense
 
174.4

 
174.1

 
86.4

 
—

 
434.9

Other (income) expense
 
(1.5
)
 
0.5

 
(12.0
)
 
—

 
(13.0
)
Income before income taxes
 
164.6

 
426.8

 
28.1

 
(3.3
)
 
616.2

Income tax expense
 
43.8

 
113.6

 
5.1

 
—

 
162.5

Equity in net income of subsidiaries, net of tax
 
336.2

 
—

 
—

 
(336.2
)
 
—

Net income
 
457.0

 
313.2

 
23.0

 
(339.5
)
 
453.7

Net loss attributable to noncontrolling interests
 
—

 
—

 
(3.5
)
 
3.4

 
(0.1
)
Net income attributable to D.R. Horton, Inc.
 
$
457.0

 
$
313.2

 
$
26.5

 
$
(342.9
)
 
$
453.8




NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Nine Months Ended June 30, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
Revenues
 
$
4,082.7

 
$
7,149.0

 
$
353.6

 
$
(22.4
)
 
$
11,562.9

Cost of sales
 
3,235.0

 
5,659.4

 
61.1

 
(16.5
)
 
8,939.0

Selling, general and administrative expense
 
483.4

 
490.6

 
245.9

 
—

 
1,219.9

Gain on sale of assets
 
—

 
—

 
(14.5
)
 
—

 
(14.5
)
Other (income) expense
 
(3.5
)
 
(0.2
)
 
(30.1
)
 
—

 
(33.8
)
Income before income taxes
 
367.8

 
999.2

 
91.2

 
(5.9
)
 
1,452.3

Income tax expense
 
117.0

 
318.7

 
24.2

 
(1.0
)
 
458.9

Equity in net income of subsidiaries, net of tax
 
747.5

 
—

 
—

 
(747.5
)
 
—

Net income
 
$
998.3

 
$
680.5

 
$
67.0

 
$
(752.4
)
 
$
993.4

Net loss attributable to noncontrolling interests
 
—

 
—

 
(4.1
)
 
3.4

 
(0.7
)
Net income attributable to D.R. Horton, Inc.
 
$
998.3

 
$
680.5

 
$
71.1

 
$
(755.8
)
 
$
994.1




NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Cash Flows
Nine Months Ended June 30, 2019
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
210.9

 
$
467.4

 
$
(518.9
)
 
$
(78.7
)
 
$
80.7

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Expenditures for property and equipment
 
(37.9
)
 
(22.6
)
 
(44.8
)
 
—

 
(105.3
)
Proceeds from sale of assets
 
10.4

 
—

 
133.4

 
—

 
143.8

Expenditures related to multi-family rental properties
 
—

 
—

 
(56.3
)
 
—

 
(56.3
)
Return of investment in unconsolidated entities
 
—

 
—

 
4.4

 
—

 
4.4

Net principal increase of other mortgage loans and real estate owned
 
—

 
—

 
(2.0
)
 
—

 
(2.0
)
Intercompany advances
 
497.0

 
—

 
—

 
(497.0
)
 
—

Payments related to business acquisitions
 
(302.6
)
 
—

 
(8.3
)
 
—

 
(310.9
)
Net cash provided by (used in) investing activities
 
166.9

 
(22.6
)
 
26.4

 
(497.0
)
 
(326.3
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable
 
2,100.0

 
—

 
428.2

 
—

 
2,528.2

Repayment of notes payable
 
(2,450.0
)
 
(1.1
)
 
(85.0
)
 
—

 
(2,536.1
)
Advances on mortgage repurchase facility, net
 
—

 
—

 
158.8

 
—

 
158.8

Intercompany advances
 
—

 
(487.0
)
 
(10.0
)
 
497.0

 
—

Proceeds from stock associated with certain employee benefit plans
 
26.8

 
—

 
—

 
—

 
26.8

Cash paid for shares withheld for taxes
 
(19.5
)
 
—

 
—

 
—

 
(19.5
)
Cash dividends paid
 
(167.9
)
 
—

 
(78.7
)
 
78.7

 
(167.9
)
Repurchases of common stock
 
(361.5
)
 
—

 
—

 
—

 
(361.5
)
Distributions to noncontrolling interests, net
 
—

 
—

 
(3.9
)
 
—

 
(3.9
)
Net cash (used in) provided by financing activities
 
(872.1
)
 
(488.1
)
 
409.4

 
575.7

 
(375.1
)
Decrease in cash, cash equivalents and restricted cash
 
(494.3
)
 
(43.3
)
 
(83.1
)
 
—

 
(620.7
)
Cash, cash equivalents and restricted cash at beginning of period
 
914.7

 
160.7

 
430.6

 
—

 
1,506.0

Cash, cash equivalents and restricted cash at end of period
 
$
420.4

 
$
117.4

 
$
347.5

 
$
—

 
$
885.3


NOTE O – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Cash Flows
Nine Months Ended June 30, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(17.9
)
 
$
640.4

 
$
(254.0
)
 
$
(62.0
)
 
$
306.5

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Expenditures for property and equipment
 
(29.1
)
 
(21.5
)
 
(3.4
)
 
—

 
(54.0
)
Proceeds from sale of assets
 
—

 
—

 
261.1

 
—

 
261.1

Expenditures related to multi-family rental properties
 
—

 
—

 
(61.1
)
 
5.0

 
(56.1
)
Return of investment in unconsolidated entities
 
—

 
—

 
15.4

 
—

 
15.4

Net principal increase of other mortgage loans and real estate owned
 
—

 
—

 
(0.8
)
 
—

 
(0.8
)
Intercompany advances
 
615.7

 
—

 
—

 
(615.7
)
 
—

Payments related to business acquisitions, net of cash acquired
 
(560.0
)
 
—

 
401.9

 
—

 
(158.1
)
Net cash provided by (used in) investing activities
 
26.6

 
(21.5
)
 
613.1

 
(610.7
)
 
7.5

FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable
 
2,162.2

 
—

 
2.1

 
—

 
2,164.3

Repayment of notes payable
 
(2,165.2
)
 
(3.7
)
 
(10.6
)
 
—

 
(2,179.5
)
Advances on mortgage repurchase facility, net
 
—

 
—

 
106.3

 
—

 
106.3

Intercompany advances
 
—

 
(660.6
)
 
44.9

 
615.7

 
—

Proceeds from stock associated with certain employee benefit plans
 
36.2

 
—

 
—

 
—

 
36.2

Cash paid for shares withheld for taxes
 
(10.3
)
 
—

 
—

 
—

 
(10.3
)
Cash dividends paid
 
(141.3
)
 
—

 
(57.0
)
 
57.0

 
(141.3
)
Repurchases of common stock
 
(74.9
)
 
—

 
—

 
—

 
(74.9
)
Distributions to noncontrolling interests, net
 
—

 
—

 
(2.2
)
 
—

 
(2.2
)
Net cash (used in) provided by financing activities
 
(193.3
)
 
(664.3
)
 
83.5

 
672.7

 
(101.4
)
(Decrease) increase in cash, cash equivalents and restricted cash
 
(184.6
)
 
(45.4
)
 
442.6

 
—

 
212.6

Cash, cash equivalents and restricted cash at beginning of period
 
788.7

 
156.0

 
79.6

 
—

 
1,024.3

Cash, cash equivalents and restricted cash at end of period
 
$
604.1

 
$
110.6

 
$
522.2

 
$
—

 
$
1,236.9