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Segment Information (Tables)
9 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment Financial information relating to the Company’s reporting segments is as follows:
June 30, 2020
HomebuildingForestar (1)Financial ServicesOther (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
HomebuildingForestar (1)Financial ServicesOther (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  
______________
(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.
Three Months Ended June 30, 2020
HomebuildingForestar (1)Financial ServicesOther (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
HomebuildingForestar (1)Financial ServicesOther (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  
______________
(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.
Three Months Ended June 30, 2019
HomebuildingForestar (1)Financial ServicesOther (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  
______________
(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, 2019
HomebuildingForestar (1)Financial ServicesOther (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  
______________

(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.
Homebuilding Inventories by Reporting Segment (1)
June 30,
2020
September 30,
2019
 (In millions)
East$1,262.3  $1,288.8  
Midwest917.8  836.8  
Southeast2,805.1  2,768.0  
South Central2,903.2  2,533.2  
Southwest669.6  574.4  
West2,129.0  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 SegmentThree Months Ended
June 30,
Nine Months Ended
June 30,
 2020201920202019
 (In millions)
Revenues
East$736.3  $675.2  $1,836.5  $1,640.9  
Midwest373.3  303.3  964.6  800.5  
Southeast1,629.1  1,388.1  4,096.4  3,607.2  
South Central1,376.4  1,178.0  3,401.5  3,040.8  
Southwest216.1  240.6  626.8  557.5  
West890.9  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  
Midwest0.4  1.3  1.9  1.8  
Southeast2.0  5.1  6.3  8.6  
South Central1.9  3.0  6.3  4.9  
Southwest0.1  0.3  0.1  0.5  
West0.3  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  
Midwest34.1  18.7  76.4  38.8  
Southeast233.5  168.4  567.4  411.6  
South Central201.8  164.3  490.7  389.6  
Southwest29.7  33.5  95.0  69.8  
West103.8  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.