XML 35 R24.htm IDEA: XBRL DOCUMENT

Segment Information (Tables)

9 Months Ended

Jun. 30, 2020

Schedule of segment reporting information, by segment

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


	June 30, 2020
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	1,896.8	$	355.6	$	75.1	$	26.0	$	—	$	—	$	2,353.5
Restricted cash	9.0		—		10.0		0.2		—		—		19.2
Inventories:
Construction in progress and finished homes	5,886.0		—		—		—		(38.7)		—		5,847.3
Residential land and lots — developed and under development	4,953.6		1,271.7		—		—		(28.0)		1.5		6,198.8
Land held for development	49.1		15.4		—		—		—		—		64.5
Land held for sale	28.1		—		—		—		—		—		28.1
	10,916.8		1,287.1		—		—		(66.7)		1.5		12,138.7
Mortgage loans held for sale	—		—		1,502.6		—		—		—		1,502.6
Deferred income taxes, net	154.6		—		—		—		10.0		(6.0)		158.6
Property and equipment, net	344.0		1.2		3.7		284.8		(1.8)		—		631.9
Other assets	880.7		41.5		128.9		50.3		(100.6)		5.1		1,005.9
Goodwill	134.3		—		—		—		—		29.2		163.5
	$	14,336.2	$	1,685.4	$	1,720.3	$	361.3	$	(159.1)	$	29.8	$	17,973.9
Liabilities
Accounts payable	$	720.7	$	26.0	$	0.1	$	14.4	$	—	$	—	$	761.2
Accrued expenses and other liabilities	1,423.1		171.9		103.7		8.7		(100.9)		(18.2)		1,588.3
Notes payable	2,490.3		640.6		1,172.9		—		(6.5)		—		4,297.3
	$	4,634.1	$	838.5	$	1,276.7	$	23.1	$	(107.4)	$	(18.2)	$	6,646.8

______________

(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.

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


	September 30, 2019
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	1,043.0	$	382.8	$	43.4	$	25.1	$	—	$	—	$	1,494.3
Restricted cash	8.0		—		11.6		0.1		—		—		19.7
Inventories:
Construction in progress and finished homes	5,249.0		—		—		—		(4.0)		—		5,245.0
Residential land and lots — developed and under development	4,956.1		1,011.8		—		—		(31.4)		2.9		5,939.4
Land held for development	60.7		17.1		—		—		—		—		77.8
Land held for sale	19.8		—		—		—		—		—		19.8
	10,285.6		1,028.9		—		—		(35.4)		2.9		11,282.0
Mortgage loans held for sale	—		—		1,072.0		—		—		—		1,072.0
Deferred income taxes, net	146.4		17.4		—		—		5.1		(5.8)		163.1
Property and equipment, net	272.4		2.4		3.2		221.2		—		—		499.2
Other assets	826.2		24.2		68.3		71.5		(88.5)		11.1		912.8
Goodwill	134.3		—		—		—		—		29.2		163.5
	$	12,715.9	$	1,455.7	$	1,198.5	$	317.9	$	(118.8)	$	37.4	$	15,606.6
Liabilities
Accounts payable	$	598.6	$	16.8	$	7.0	$	11.6	$	—	$	—	$	634.0
Accrued expenses and other liabilities	1,152.5		169.5		53.0		9.3		(93.6)		(12.6)		1,278.1
Notes payable	2,047.6		460.5		888.9		—		—		2.4		3,399.4
	$	3,798.7	$	646.8	$	948.9	$	20.9	$	(93.6)	$	(10.2)	$	5,311.5

______________

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

(3)Amounts represent the elimination of intercompany transactions.

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


	Three Months Ended June 30, 2020
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Revenues
Home sales	$	5,207.6	$	—	$	—	$	—	$	—	$	—	$	5,207.6
Land/lot sales and other	14.5		177.9		—		8.9		(175.5)		—		25.8
Financial services	—		—		156.6		—		—		—		156.6
	5,222.1		177.9		156.6		8.9		(175.5)		—		5,390.0
Cost of sales
Home sales (5)	4,082.3		—		—		—		(16.8)		—		4,065.5
Land/lot sales and other	10.2		157.0		—		—		(152.7)		(0.3)		14.2
Inventory and land option charges	4.9		0.1		—		—		—		—		5.0
	4,097.4		157.1		—		—		(169.5)		(0.3)		4,084.7
Selling, general and administrative expense	415.1		11.2		93.9		7.1		—		0.2		527.5
Other (income) expense	(0.2)		(0.7)		(6.1)		2.4		—		—		(4.6)
Income (loss) before income taxes	$	709.8	$	10.3	$	68.8	$	(0.6)	$	(6.0)	$	0.1	$	782.4

______________

(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.

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

(5)Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.


	Nine Months Ended June 30, 2020
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Revenues:
Home sales	$	13,434.2	$	—	$	—	$	—	$	—	$	—	$	13,434.2
Land/lot sales and other	49.7		584.3		—		27.2		(548.6)		—		112.6
Financial services	—		—		364.0		—		—		—		364.0
	13,483.9		584.3		364.0		27.2		(548.6)		—		13,910.8
Cost of sales:
Home sales (5)	10,569.2		—		—		—		(34.4)		—		10,534.8
Land/lot sales and other	34.9		509.8		—		—		(476.6)		(1.0)		67.1
Inventory and land option charges	17.3		0.5		—		—		—		—		17.8
	10,621.4		510.3		—		—		(511.0)		(1.0)		10,619.7
Selling, general and administrative expense	1,135.3		32.8		257.7		23.9		—		0.4		1,450.1
Gain on sale of assets	—		(0.1)		—		(59.4)		—		—		(59.5)
Other (income) expense	(9.7)		(4.8)		(17.7)		5.8		—		—		(26.4)
Income before income taxes	$	1,736.9	$	46.1	$	124.0	$	56.9	$	(37.6)	$	0.6	$	1,926.9
Summary Cash Flow Information:
Depreciation and amortization	$	49.8	$	0.2	$	1.2	$	5.8	$	—	$	0.4	$	57.4
Cash provided by (used in) operating activities	$	1,157.0	$	(205.7)	$	(347.7)	$	2.1	$	(16.8)	$	—	$	588.9

______________

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

(3)Amounts represent the elimination of intercompany transactions.

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


	Three Months Ended June 30, 2019
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Revenues
Home sales	$	4,734.6	$	—	$	—	$	—	$	—	$	—	$	4,734.6
Land/lot sales and other	27.5		88.2		—		9.6		(73.2)		—		52.1
Financial services	—		—		119.6		—		—		—		119.6
	4,762.1		88.2		119.6		9.6		(73.2)		—		4,906.3
Cost of sales
Home sales (5)	3,773.0		—		—		—		(1.3)		—		3,771.7
Land/lot sales and other	23.2		75.3		—		—		(66.0)		8.2		40.7
Inventory and land option charges	19.2		—		—		—		—		—		19.2
	3,815.4		75.3		—		—		(67.3)		8.2		3,831.6
Selling, general and administrative expense	387.4		7.9		76.4		8.2		—		0.1		480.0
Gain on sale of assets	—		(1.5)		—		(22.6)		—		1.5		(22.6)
Other (income) expense	(2.5)		(1.9)		(4.9)		(0.1)		—		—		(9.4)
Income before income taxes	$	561.8	$	8.4	$	48.1	$	24.1	$	(5.9)	$	(9.8)	$	626.7

______________

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

(3)Amounts represent the elimination of intercompany transactions.

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


	Nine Months Ended June 30, 2019
	Homebuilding		Forestar (1)		Financial Services		Other (2)		Eliminations (3)		Other Adjustments (4)		Consolidated
	(In millions)
Revenues:
Home sales	$	12,125.8	$	—	$	—	$	—	$	—	$	—	$	12,125.8
Land/lot sales and other	49.2		192.0		—		22.4		(141.8)		—		121.8
Financial services	—		—		306.4		—		—		—		306.4
	12,175.0		192.0		306.4		22.4		(141.8)		—		12,554.0
Cost of sales:
Home sales (5)	9,716.5		—		—		—		(3.1)		—		9,713.4
Land/lot sales and other	37.6		149.6		—		—		(122.2)		20.0		85.0
Inventory and land option charges	41.0		—		—		—		—		—		41.0
	9,795.1		149.6		—		—		(125.3)		20.0		9,839.4
Selling, general and administrative expense	1,071.4		19.8		213.4		22.1		—		0.3		1,327.0
Gain on sale of assets	(2.0)		(2.4)		—		(51.9)		—		2.4		(53.9)
Other (income) expense	(6.1)		(4.6)		(12.6)		(0.4)		—		—		(23.7)
Income before income taxes	$	1,316.6	$	29.6	$	105.6	$	52.6	$	(16.5)	$	(22.7)	$	1,465.2
Summary Cash Flow Information:
Depreciation and amortization	$	46.4	$	0.2	$	1.1	$	4.3	$	—	$	0.4	$	52.4
Cash provided by (used in) operating activities	$	605.7	$	(450.1)	$	(65.5)	$	(2.5)	$	(2.5)	$	(4.4)	$	80.7

______________

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

(3)Amounts represent the elimination of intercompany transactions.

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


Homebuilding Inventories by Reporting Segment (1)	June 30, 2020		September 30, 2019
	(In millions)
East	$	1,262.3	$	1,288.8
Midwest	917.8		836.8
Southeast	2,805.1		2,768.0
South Central	2,903.2		2,533.2
Southwest	669.6		574.4
West	2,129.0		2,056.0
Corporate and unallocated (2)	229.8		228.4
	$	10,916.8	$	10,285.6

_________________

(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,
	2020		2019		2020		2019
	(In millions)
Revenues
East	$	736.3	$	675.2	$	1,836.5	$	1,640.9
Midwest	373.3		303.3		964.6		800.5
Southeast	1,629.1		1,388.1		4,096.4		3,607.2
South Central	1,376.4		1,178.0		3,401.5		3,040.8
Southwest	216.1		240.6		626.8		557.5
West	890.9		976.9		2,558.1		2,528.1
	$	5,222.1	$	4,762.1	$	13,483.9	$	12,175.0
Inventory and Land Option Charges
East	$	0.2	$	0.6	$	(0.1)	$	2.3
Midwest	0.4		1.3		1.9		1.8
Southeast	2.0		5.1		6.3		8.6
South Central	1.9		3.0		6.3		4.9
Southwest	0.1		0.3		0.1		0.5
West	0.3		8.9		2.8		22.9
	$	4.9	$	19.2	$	17.3	$	41.0
Income before Income Taxes (1)
East	$	106.9	$	74.1	$	240.1	$	158.0
Midwest	34.1		18.7		76.4		38.8
Southeast	233.5		168.4		567.4		411.6
South Central	201.8		164.3		490.7		389.6
Southwest	29.7		33.5		95.0		69.8
West	103.8		102.8		267.3		248.8
	$	709.8	$	561.8	$	1,736.9	$	1,316.6

_________________

(1)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 homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.