Segment Information (Tables)

9 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	June 30, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	1,207.2	$	146.3	$	126.3	$	133.9	$	42.0	$	1,655.7
Restricted cash	16.2		—		11.5		0.9		—		28.6
Inventories:
Construction in progress and finished homes	10,974.0		—		—		—		(170.9)		10,803.1
Residential land and lots — developed and under development	6,909.4		1,950.6		—		—		(72.4)		8,787.6
Land held for development	20.8		103.7		—		—		—		124.5
Land held for sale	32.7		—		—		—		—		32.7
Rental properties	—		—		—		1,976.2		(25.2)		1,951.0
	17,936.9		2,054.3		—		1,976.2		(268.5)		21,698.9
Mortgage loans held for sale	—		—		2,082.5		—		—		2,082.5
Deferred income taxes, net	145.3		—		—		—		12.1		157.4
Property and equipment, net	346.2		5.5		4.0		1.6		124.0		481.3
Other assets	2,113.5		61.7		256.7		18.3		151.8		2,602.0
Goodwill	134.3		—		—		—		29.2		163.5
	$	21,899.6	$	2,267.8	$	2,481.0	$	2,130.9	$	90.6	$	28,869.9
Liabilities
Accounts payable	$	1,308.4	$	63.8	$	—	$	212.2	$	(77.1)	$	1,507.3
Accrued expenses and other liabilities	2,530.4		350.5		223.1		12.1		(164.2)		2,951.9
Notes payable	3,688.9		705.6		1,405.7		175.0		—		5,975.2
	$	7,527.7	$	1,119.9	$	1,628.8	$	399.3	$	(241.3)	$	10,434.4

______________

(1)Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments.

	September 30, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,950.1	$	153.6	$	79.0	$	16.8	$	10.9	$	3,210.4
Restricted cash	8.4		—		18.0		0.4		—		26.8
Inventories:
Construction in progress and finished homes	7,848.0		—		—		—		(108.8)		7,739.2
Residential land and lots — developed and under development	6,004.0		1,824.7		—		—		(46.9)		7,781.8
Land held for development	30.4		80.5		—		—		—		110.9
Land held for sale	25.4		—		—		—		—		25.4
Rental properties	—		—		—		840.9		(19.1)		821.8
	13,907.8		1,905.2		—		840.9		(174.8)		16,479.1
Mortgage loans held for sale	—		—		2,027.3		—		—		2,027.3
Deferred income taxes, net	159.2		—		—		—		(3.9)		155.3
Property and equipment, net	303.3		2.9		3.5		0.6		82.6		392.9
Other assets	1,468.7		40.0		107.6		6.3		(62.0)		1,560.6
Goodwill	134.3		—		—		—		29.2		163.5
	$	18,931.8	$	2,101.7	$	2,235.4	$	865.0	$	(118.0)	$	24,015.9
Liabilities
Accounts payable	$	1,073.7	$	47.4	$	—	$	55.9	$	—	$	1,177.0
Accrued expenses and other liabilities	1,941.3		333.9		88.6		15.0		(168.5)		2,210.3
Notes payable	3,214.0		704.5		1,494.6		—		(0.7)		5,412.4
	$	6,229.0	$	1,085.8	$	1,583.2	$	70.9	$	(169.2)	$	8,799.7

______________

(1)Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

	Three Months Ended June 30, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	8,336.4	$	—	$	—	$	—	$	—	$	8,336.4
Land/lot sales and other	11.4		308.5		—		—		(232.2)		87.7
Rental property sales	—		—		—		109.7		—		109.7
Financial services	—		—		254.3		—		—		254.3
	8,347.8		308.5		254.3		109.7		(232.2)		8,788.1
Cost of sales
Home sales (3)	5,826.8		—		—		—		(52.5)		5,774.3
Land/lot sales and other	7.3		233.6		—		—		(197.4)		43.5
Rental property sales	—		—		—		50.9		—		50.9
Inventory and land option charges	9.5		1.0		—		0.1		—		10.6
	5,843.6		234.6		—		51.0		(249.9)		5,879.3
Selling, general and administrative expense	553.2		24.1		137.3		22.8		3.2		740.6
Other (income) expense	(3.7)		(2.9)		(11.3)		(6.7)		9.5		(15.1)
Income before income taxes	$	1,954.7	$	52.7	$	128.3	$	42.6	$	5.0	$	2,183.3

______________

(1)Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	22,492.0	$	—	$	—	$	—	$	—	$	22,492.0
Land/lot sales and other	42.0		1,137.7		—		—		(981.0)		198.7
Rental property sales	—		—		—		489.1		—		489.1
Financial services	—		—		660.8		—		—		660.8
	22,534.0		1,137.7		660.8		489.1		(981.0)		23,840.6
Cost of sales
Home sales (3)	15,996.0		—		—		—		(133.9)		15,862.1
Land/lot sales and other	27.7		895.9		—		—		(822.1)		101.5
Rental property sales	—		—		—		225.8		(5.1)		220.7
Inventory and land option charges	23.2		7.0		—		0.4		—		30.6
	16,046.9		902.9		—		226.2		(961.1)		16,214.9
Selling, general and administrative expense	1,558.1		69.9		400.6		64.2		8.8		2,101.6
Other (income) expense	(11.6)		(4.5)		(28.0)		(16.4)		20.7		(39.8)
Income before income taxes	$	4,940.6	$	169.4	$	288.2	$	215.1	$	(49.4)	$	5,563.9
Summary Cash Flow Information
Depreciation and amortization	$	47.0	$	2.0	$	1.4	$	0.5	$	9.3	$	60.2
Cash provided by (used in) operating activities	$	124.5	$	(10.2)	$	150.1	$	(826.4)	$	(0.8)	$	(562.8)

______________

(1)Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	7,040.1	$	—	$	—	$	—	$	—	$	7,040.1
Land/lot sales and other	7.1		312.9		—		—		(264.2)		55.8
Rental property sales	—		—		—		23.1		(23.1)		—
Financial services	—		—		188.7		—		—		188.7
	7,047.2		312.9		188.7		23.1		(287.3)		7,284.6
Cost of sales
Home sales (3)	5,219.2		—		—		—		(40.0)		5,179.2
Land/lot sales and other	2.7		256.4		—		—		(231.3)		27.8
Rental property sales	—		—		—		11.7		(11.7)		—
Inventory and land option charges	4.9		0.7		—		—		—		5.6
	5,226.8		257.1		—		11.7		(283.0)		5,212.6
Selling, general and administrative expense	500.7		16.9		127.0		8.8		2.3		655.7
Loss on extinguishment of debt	—		18.1		—		—		—		18.1
Other (income) expense	(4.9)		(0.3)		(8.6)		(7.3)		3.7		(17.4)
Income before income taxes	$	1,324.6	$	21.1	$	70.3	$	9.9	$	(10.3)	$	1,415.6

______________

(1)Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	18,909.2	$	—	$	—	$	—	$	—	$	18,909.2
Land/lot sales and other	40.5		907.1		—		—		(793.0)		154.6
Rental property sales	—		—		—		54.9		(54.9)		—
Financial services	—		—		601.1		—		—		601.1
	18,949.7		907.1		601.1		54.9		(847.9)		19,664.9
Cost of sales
Home sales (3)	14,196.3		—		—		—		(103.3)		14,093.0
Land/lot sales and other	29.0		752.2		—		—		(695.8)		85.4
Rental property sales	—		—		—		29.6		(29.6)		—
Inventory and land option charges	16.0		1.6		—		—		—		17.6
	14,241.3		753.8		—		29.6		(828.7)		14,196.0
Selling, general and administrative expense	1,417.8		48.7		360.4		29.6		6.7		1,863.2
Gain on sale of assets	—		—		—		—		(14.0)		(14.0)
Loss on extinguishment of debt	—		18.1		—		—		—		18.1
Other (income) expense	(8.7)		(1.4)		(21.4)		(16.3)		19.6		(28.2)
Income before income taxes	$	3,299.3	$	87.9	$	262.1	$	12.0	$	(31.5)	$	3,629.8
Summary Cash Flow Information
Depreciation and amortization	$	47.6	$	2.1	$	1.3	$	5.1	$	7.5	$	63.6
Cash provided by (used in) operating activities	$	450.7	$	(340.6)	$	96.2	$	(405.6)	$	164.8	$	(34.5)

______________

(1)Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2022		September 30, 2021
	(In millions)
Northwest	$	1,757.1	$	1,307.5
Southwest	2,985.4		2,445.6
South Central	4,408.8		3,479.3
Southeast	4,066.7		3,178.6
East	2,638.0		1,919.6
North	1,870.9		1,368.9
Corporate and unallocated (2)	210.0		208.3
	$	17,936.9	$	13,907.8

____________________________

(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 homebuilding capitalized interest and property taxes.

Homebuilding Results by Reporting Segment	Three Months Ended June 30,				Nine Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Revenues
Northwest	$	674.0	$	662.6	$	1,879.9	$	1,759.1
Southwest	1,289.2		1,021.7		3,335.9		2,773.3
South Central	2,080.4		1,547.5		5,613.1		4,295.7
Southeast	2,118.9		1,961.3		5,876.4		5,146.9
East	1,385.8		1,228.0		3,680.1		3,306.6
North	799.5		626.1		2,148.6		1,668.1
	$	8,347.8	$	7,047.2	$	22,534.0	$	18,949.7
Income before Income Taxes
Northwest	$	161.0	$	146.7	$	421.0	$	327.4
Southwest	288.3		167.5		674.2		413.2
South Central	527.2		299.0		1,297.5		790.9
Southeast	532.4		396.1		1,430.1		960.5
East	309.9		222.8		778.1		578.7
North	135.9		92.5		339.7		228.6
	$	1,954.7	$	1,324.6	$	4,940.6	$	3,299.3