Segment Information (Tables)

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Reporting segment results

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

	September 30, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,040.7	$	264.8	$	103.3	$	109.9	$	21.8	$	2,540.5
Restricted cash	11.3		—		19.7		1.4		—		32.4
Inventories:
Construction in progress and finished homes	9,951.5		—		—		—		(153.3)		9,798.2
Residential land and lots — developed and under development	7,322.5		1,932.6		—		—		(82.0)		9,173.1
Land held for development	21.0		89.8		—		—		—		110.8
Land held for sale	29.4		—		—		—		—		29.4
Rental properties	—		—		—		2,572.1		(27.9)		2,544.2
	17,324.4		2,022.4		—		2,572.1		(263.2)		21,655.7
Mortgage loans held for sale	—		—		2,386.0		—		—		2,386.0
Deferred income taxes, net	146.3		—		—		(7.1)		1.9		141.1
Property and equipment, net	361.8		5.7		4.3		2.0		97.8		471.6
Other assets	2,266.5		50.1		492.5		18.4		132.8		2,960.3
Goodwill	134.3		—		—		—		29.2		163.5
	$	22,285.3	$	2,343.0	$	3,005.8	$	2,696.7	$	20.3	$	30,351.1
Liabilities
Accounts payable	$	1,149.1	$	72.2	$	0.2	$	233.6	$	(94.8)	$	1,360.3
Accrued expenses and other liabilities	2,365.7		365.4		596.2		25.0		(214.0)		3,138.3
Notes payable	2,942.6		706.0		1,618.3		800.0		—		6,066.9
	$	6,457.4	$	1,143.6	$	2,214.7	$	1,058.6	$	(308.8)	$	10,565.5

_____________

(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.

	Year Ended September 30, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	31,861.7	$	—	$	—	$	—	$	—	$	31,861.7
Land/lot sales and other	61.4		1,519.1		—		—		(1,267.4)		313.1
Rental property sales	—		—		—		510.2		—		510.2
Financial services	—		—		795.0		—		—		795.0
	31,923.1		1,519.1		795.0		510.2		(1,267.4)		33,480.0
Cost of sales
Home sales (3)	22,715.6		—		—		—		(197.9)		22,517.7
Land/lot sales and other	39.1		1,182.7		—		—		(1,072.3)		149.5
Rental property sales	—		—		—		243.4		(5.1)		238.3
Inventory and land option charges	57.2		12.4		—		0.8		—		70.4
	22,811.9		1,195.1		—		244.2		(1,275.3)		22,975.9
Selling, general and administrative expense	2,186.7		93.6		547.6		91.1		14.7		2,933.7
Other (income) expense	(16.4)		(5.4)		(43.2)		(27.1)		32.8		(59.3)
Income before income taxes	$	6,940.9	$	235.8	$	290.6	$	202.0	$	(39.6)	$	7,629.7
Summary Cash Flow Information
Depreciation and amortization	$	62.5	$	2.7	$	1.9	$	1.0	$	13.3	$	81.4
Cash provided by (used in) operating activities	$	1,916.7	$	108.7	$	(10.5)	$	(1,391.0)	$	(62.1)	$	561.8

_____________

(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.

	Year Ended September 30, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	26,502.6	$	—	$	—	$	—	$	—	$	26,502.6
Land/lot sales and other	75.0		1,325.8		—		—		(1,188.8)		212.0
Rental property sales	—		—		—		267.8		(31.8)		236.0
Financial services	—		—		823.6		—		—		823.6
	26,577.6		1,325.8		823.6		267.8		(1,220.6)		27,774.2
Cost of sales
Home sales (3)	19,748.4		—		—		—		(140.1)		19,608.3
Land/lot sales and other	56.2		1,093.6		—		—		(1,030.5)		119.3
Rental property sales	—		—		—		160.8		(17.8)		143.0
Inventory and land option charges	24.9		3.0		—		0.7		—		28.6
	19,829.5		1,096.6		—		161.5		(1,188.4)		19,899.2
Selling, general and administrative expense	1,945.6		68.4		488.3		44.6		9.3		2,556.2
Gain on sale of assets	—		(2.5)		—		—		(11.5)		(14.0)
Loss on extinguishment of debt	—		18.1		—		—		—		18.1
Other (income) expense	(10.3)		(1.4)		(29.3)		(24.8)		24.2		(41.6)
Income before income taxes	$	4,812.8	$	146.6	$	364.6	$	86.5	$	(54.2)	$	5,356.3
Summary Cash Flow Information
Depreciation and amortization	$	63.1	$	2.2	$	1.7	$	5.1	$	10.0	$	82.1
Cash provided by (used in) operating activities	$	1,239.8	$	(303.1)	$	(195.8)	$	(410.0)	$	203.5	$	534.4

_____________

(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.

	Year Ended September 30, 2020
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	19,560.8	$	—	$	—	$	—	$	—	$	19,560.8
Land/lot sales and other	80.7		931.8		—		—		(847.1)		165.4
Rental property sales	—		—		—		128.5		(128.5)		—
Financial services	—		—		584.9		—		—		584.9
	19,641.5		931.8		584.9		128.5		(975.6)		20,311.1
Cost of sales
Home sales (3)	15,305.8		—		—		—		(58.6)		15,247.2
Land/lot sales and other	58.3		812.8		—		—		(768.9)		102.2
Rental property sales	—		—		—		69.0		(69.0)		—
Inventory and land option charges	22.9		0.9		—		—		—		23.8
	15,387.0		813.7		—		69.0		(896.5)		15,373.2
Selling, general and administrative expense	1,600.7		45.7		364.7		27.8		8.9		2,047.8
Gain on sale of assets	—		(0.1)		—		—		(59.4)		(59.5)
Other (income) expense	(11.7)		(5.6)		(25.0)		(8.1)		17.0		(33.4)
Income before income taxes	$	2,665.5	$	78.1	$	245.2	$	39.8	$	(45.6)	$	2,983.0
Summary Cash Flow Information
Depreciation and amortization	$	72.6	$	4.9	$	1.6	$	5.0	$	6.5	$	90.6
Cash provided by (used in) operating activities	$	1,888.4	$	(168.5)	$	(292.8)	$	(71.8)	$	66.3	$	1,421.6

_____________

(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, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

(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)	September 30,
	2022		2021
	(In millions)
Northwest	$	1,802.2	$	1,307.5
Southwest	2,801.7		2,445.6
South Central	3,931.7		3,479.3
Southeast	4,091.1		3,178.6
East	2,542.7		1,919.6
North	1,935.7		1,368.9
Corporate and unallocated (2)	219.3		208.3
	$	17,324.4	$	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	Year Ended September 30,
	2022		2021		2020
	(In millions)
Revenues
Northwest	$	2,658.4	$	2,516.6	$	1,953.4
Southwest	4,840.7		4,071.0		3,230.3
South Central	8,192.3		6,111.2		4,625.9
Southeast	7,951.2		7,079.6		4,871.5
East	5,318.1		4,459.0		3,410.1
North	2,962.4		2,340.2		1,550.3
	$	31,923.1	$	26,577.6	$	19,641.5
Inventory and Land Option Charges
Northwest	$	7.0	$	0.6	$	1.3
Southwest	6.3		3.0		3.5
South Central	9.9		5.3		6.4
Southeast	13.5		10.2		5.9
East	12.1		2.4		3.0
North	8.4		3.4		2.8
	$	57.2	$	24.9	$	22.9
Income before Income Taxes (1)
Northwest	$	560.8	$	510.8	$	264.5
Southwest	968.3		653.1		366.1
South Central	1,910.7		1,150.2		714.9
Southeast	1,918.5		1,371.9		709.5
East	1,126.3		795.1		484.3
North	456.3		331.7		126.2
	$	6,940.9	$	4,812.8	$	2,665.5

________________________

(1)Expenses maintained at the corporate level consist primarily of homebuilding 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.