Segment Information (Tables)

6 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	March 31, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,364.5	$	286.7	$	285.5	$	89.8	$	24.6	$	3,051.1
Restricted cash	8.5		—		12.6		2.4		—		23.5
Inventories:
Construction in progress and finished homes	9,437.0		—		—		—		(146.4)		9,290.6
Residential land and lots — developed and under development	8,093.0		1,920.4		—		—		(73.0)		9,940.4
Land held for development	20.7		67.6		—		—		—		88.3
Land held for sale	20.4		—		—		—		—		20.4
Rental properties	—		—		—		3,257.2		(25.2)		3,232.0
	17,571.1		1,988.0		—		3,257.2		(244.6)		22,571.7
Mortgage loans held for sale	—		—		2,124.0		—		—		2,124.0
Deferred income taxes, net	117.4		—		—		(7.1)		2.0		112.3
Property and equipment, net	381.0		5.6		4.0		2.5		116.5		509.6
Other assets	2,477.5		56.0		135.1		37.6		(91.1)		2,615.1
Goodwill	134.3		—		—		—		29.2		163.5
	$	23,054.3	$	2,336.3	$	2,561.2	$	3,382.4	$	(163.4)	$	31,170.8
Liabilities
Accounts payable	$	1,030.7	$	67.7	$	—	$	558.7	$	(405.8)	$	1,251.3
Accrued expenses and other liabilities	2,508.7		313.0		123.1		30.2		(144.2)		2,830.8
Notes payable	2,680.2		706.8		1,554.9		1,025.0		—		5,966.9
	$	6,219.6	$	1,087.5	$	1,678.0	$	1,613.9	$	(550.0)	$	10,049.0

______________

(1)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, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		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 include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments.

	Three Months Ended March 31, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	7,449.7	$	—	$	—	$	—	$	—	$	7,449.7
Land/lot sales and other	19.9		301.5		—		—		(238.7)		82.7
Rental property sales	—		—		—		224.1		—		224.1
Financial services	—		—		216.4		—		—		216.4
	7,469.6		301.5		216.4		224.1		(238.7)		7,972.9
Cost of sales
Home sales (2)	5,843.0		—		—		—		(61.8)		5,781.2
Land/lot sales and other	13.4		225.3		—		—		(204.3)		34.4
Rental property sales	—		—		—		157.6		(0.8)		156.8
Inventory and land option charges	14.2		20.3		—		0.4		(11.1)		23.8
	5,870.6		245.6		—		158.0		(278.0)		5,996.2
Selling, general and administrative expense	545.6		22.0		146.9		53.5		5.6		773.6
Other (income) expense	(14.5)		(2.0)		(16.1)		(22.0)		12.4		(42.2)
Income before income taxes	$	1,067.9	$	35.9	$	85.6	$	34.6	$	21.3	$	1,245.3

______________

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

(2)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.

	Six Months Ended March 31, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	14,158.9	$	—	$	—	$	—	$	—	$	14,158.9
Land/lot sales and other	54.7		518.2		—		—		(406.2)		166.7
Rental property sales	—		—		—		551.6		—		551.6
Financial services	—		—		353.4		—		—		353.4
	14,213.6		518.2		353.4		551.6		(406.2)		15,230.6
Cost of sales
Home sales (2)	10,949.7		—		—		—		(110.9)		10,838.8
Land/lot sales and other	18.3		392.1		—		—		(352.1)		58.3
Rental property sales	—		—		—		341.4		(2.4)		339.0
Inventory and land option charges	38.4		22.7		—		1.4		(11.1)		51.4
	11,006.4		414.8		—		342.8		(476.5)		11,287.5
Selling, general and administrative expense	1,072.6		44.9		281.0		101.0		11.0		1,510.5
Other (income) expense	(27.7)		(5.3)		(31.4)		(37.1)		21.6		(79.9)
Income before income taxes	$	2,162.3	$	63.8	$	103.8	$	144.9	$	37.7	$	2,512.5
Summary Cash Flow Information
Depreciation and amortization	$	30.7	$	1.5	$	1.1	$	1.0	$	12.2	$	46.5
Cash provided by (used in) operating activities	$	1,456.4	$	21.3	$	232.2	$	(263.3)	$	27.0	$	1,473.6

______________

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

(2)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 March 31, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	7,499.2	$	—	$	—	$	—	$	—	$	7,499.2
Land/lot sales and other	7.6		421.6		—		—		(374.4)		54.8
Rental property sales	—		—		—		222.9		—		222.9
Financial services	—		—		222.1		—		—		222.1
	7,506.8		421.6		222.1		222.9		(374.4)		7,999.0
Cost of sales
Home sales (2)	5,335.2		—		—		—		(43.7)		5,291.5
Land/lot sales and other	3.3		328.7		—		—		(307.0)		25.0
Rental property sales	—		—		—		102.5		(4.3)		98.2
Inventory and land option charges	9.8		5.4		—		—		—		15.2
	5,348.3		334.1		—		102.5		(355.0)		5,429.9
Selling, general and administrative expense	507.3		24.3		138.0		22.8		2.7		695.1
Other (income) expense	(1.6)		—		(8.7)		(4.9)		5.9		(9.3)
Income before income taxes	$	1,652.8	$	63.2	$	92.8	$	102.5	$	(28.0)	$	1,883.3

______________

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

(2)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.

	Six Months Ended March 31, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	14,155.6	$	—	$	—	$	—	$	—	$	14,155.6
Land/lot sales and other	30.5		829.2		—		—		(748.7)		111.0
Rental property sales	—		—		—		379.4		—		379.4
Financial services	—		—		406.4		—		—		406.4
	14,186.1		829.2		406.4		379.4		(748.7)		15,052.4
Cost of sales
Home sales (2)	10,169.1		—		—		—		(81.3)		10,087.8
Land/lot sales and other	20.4		662.3		—		—		(624.8)		57.9
Rental property sales	—		—		—		175.0		(5.1)		169.9
Inventory and land option charges	13.7		6.0		—		0.3		—		20.0
	10,203.2		668.3		—		175.3		(711.2)		10,335.6
Selling, general and administrative expense	1,004.9		45.8		263.2		41.4		5.7		1,361.0
Other (income) expense	(7.9)		(1.6)		(16.7)		(9.8)		11.2		(24.8)
Income before income taxes	$	2,985.9	$	116.7	$	159.9	$	172.5	$	(54.4)	$	3,380.6
Summary Cash Flow Information
Depreciation and amortization	$	30.9	$	1.3	$	0.9	$	0.2	$	6.0	$	39.3
Cash (used in) provided by operating activities	$	(416.2)	$	76.6	$	(63.0)	$	(409.1)	$	(22.9)	$	(834.6)

______________

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

(2)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)	March 31, 2023		September 30, 2022
	(In millions)
Northwest	$	1,777.0	$	1,802.2
Southwest	3,020.0		2,801.7
South Central	3,801.4		3,931.7
Southeast	3,979.1		4,091.1
East	2,754.1		2,542.7
North	2,007.2		1,935.7
Corporate and unallocated (2)	232.3		219.3
	$	17,571.1	$	17,324.4

____________________________

(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 March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
	(In millions)
Revenues
Northwest	$	691.1	$	637.0	$	1,211.5	$	1,205.9
Southwest	920.9		1,135.1		1,723.9		2,046.7
South Central	1,805.8		1,838.4		3,447.9		3,532.7
Southeast	2,106.1		1,946.5		4,102.4		3,757.5
East	1,206.9		1,219.5		2,350.8		2,294.3
North	738.8		730.3		1,377.1		1,349.0
	$	7,469.6	$	7,506.8	$	14,213.6	$	14,186.1
Income before Income Taxes
Northwest	$	96.4	$	148.2	$	155.0	$	260.0
Southwest	81.7		226.6		165.7		385.9
South Central	267.9		416.0		549.5		770.3
Southeast	381.7		482.2		793.0		897.7
East	183.5		265.9		373.0		468.2
North	56.7		113.9		126.1		203.8
	$	1,067.9	$	1,652.8	$	2,162.3	$	2,985.9