Segment Information (Tables)

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Reporting segment results

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

	September 30, 2023
	Homebuilding		Rental		Forestar		Financial Services		Eliminations and Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,920.2	$	136.1	$	616.0	$	189.1	$	12.2	$	3,873.6
Restricted cash	6.5		3.3		—		16.7		—		26.5
Inventories:
Construction in progress and finished homes	9,134.3		—		—		—		(132.9)		9,001.4
Residential land and lots — developed and under development	8,992.3		—		1,760.8		—		(131.2)		10,621.9
Land held for development	20.5		—		29.5		—		—		50.0
Land held for sale	8.7		—		—		—		—		8.7
Rental properties	—		2,708.4		—		—		(17.1)		2,691.3
	18,155.8		2,708.4		1,790.3		—		(281.2)		22,373.3
Mortgage loans held for sale	—		—		—		2,519.9		—		2,519.9
Deferred income taxes, net	229.8		(19.9)		—		—		(22.7)		187.2
Property and equipment, net	415.0		2.4		5.9		4.1		18.0		445.4
Other assets	2,838.5		29.8		58.5		250.3		(184.1)		2,993.0
Goodwill	134.3		—		—		—		29.2		163.5
	$	24,700.1	$	2,860.1	$	2,470.7	$	2,980.1	$	(428.6)	$	32,582.4
Liabilities
Accounts payable	$	1,033.7	$	698.6	$	68.4	$	0.1	$	(554.6)	$	1,246.2
Accrued expenses and other liabilities	2,585.5		43.2		337.4		280.4		(142.7)		3,103.8
Notes payable	2,329.9		400.0		695.0		1,669.6		—		5,094.5
	$	5,949.1	$	1,141.8	$	1,100.8	$	1,950.1	$	(697.3)	$	9,444.5

_____________

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

	September 30, 2022
	Homebuilding		Rental		Forestar		Financial Services		Eliminations and Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,040.7	$	109.9	$	264.8	$	103.3	$	21.8	$	2,540.5
Restricted cash	11.3		1.4		—		19.7		—		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		2,572.1		2,022.4		—		(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		2.0		5.7		4.3		97.8		471.6
Other assets	2,266.5		18.4		50.1		492.5		132.8		2,960.3
Goodwill	134.3		—		—		—		29.2		163.5
	$	22,285.3	$	2,696.7	$	2,343.0	$	3,005.8	$	20.3	$	30,351.1
Liabilities
Accounts payable	$	1,149.1	$	233.6	$	72.2	$	0.2	$	(94.8)	$	1,360.3
Accrued expenses and other liabilities	2,365.7		25.0		365.4		596.2		(214.0)		3,138.3
Notes payable	2,942.6		800.0		706.0		1,618.3		—		6,066.9
	$	6,457.4	$	1,058.6	$	1,143.6	$	2,214.7	$	(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.

	Year Ended September 30, 2023
	Homebuilding		Rental		Forestar		Financial Services		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	31,641.0	$	—	$	—	$	—	$	—	$	31,641.0
Land/lot sales and other	102.2		—		1,436.9		—		(1,126.7)		412.4
Rental property sales	—		2,605.5		—		—		—		2,605.5
Financial services	—		—		—		801.5		—		801.5
	31,743.2		2,605.5		1,436.9		801.5		(1,126.7)		35,460.4
Cost of sales
Home sales (2)	24,201.3		—		—		—		(248.5)		23,952.8
Land/lot sales and other	53.8		—		1,108.9		—		(959.9)		202.8
Rental property sales	—		1,886.8		—		—		(12.7)		1,874.1
Inventory and land option charges	60.7		6.7		24.0		—		(11.1)		80.3
	24,315.8		1,893.5		1,132.9		—		(1,232.2)		26,110.0
Selling, general and administrative expense	2,239.9		290.2		97.7		594.9		26.1		3,248.8
Other (income) expense	(78.8)		(102.4)		(15.3)		(76.7)		60.1		(213.1)
Income before income taxes	$	5,266.3	$	524.2	$	221.6	$	283.3	$	19.3	$	6,314.7
Summary Cash Flow Information
Depreciation and amortization	$	64.0	$	2.4	$	3.0	$	2.1	$	20.1	$	91.6
Cash provided by operating activities	$	3,078.4	$	739.2	$	364.1	$	13.2	$	109.2	$	4,304.1

_____________

(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.

	Year Ended September 30, 2022
	Homebuilding		Rental		Forestar		Financial Services		Eliminations and Other (1)		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		510.2		1,519.1		795.0		(1,267.4)		33,480.0
Cost of sales
Home sales (2)	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		0.8		12.4		—		—		70.4
	22,811.9		244.2		1,195.1		—		(1,275.3)		22,975.9
Selling, general and administrative expense	2,186.7		91.1		93.6		547.6		14.7		2,933.7
Other (income) expense	(16.4)		(27.1)		(5.4)		(43.2)		32.8		(59.3)
Income before income taxes	$	6,940.9	$	202.0	$	235.8	$	290.6	$	(39.6)	$	7,629.7
Summary Cash Flow Information
Depreciation and amortization	$	62.5	$	1.0	$	2.7	$	1.9	$	13.3	$	81.4
Cash provided by (used in) operating activities	$	1,916.7	$	(1,391.0)	$	108.7	$	(10.5)	$	(62.1)	$	561.8

_____________

(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.

	Year Ended September 30, 2021
	Homebuilding		Rental		Forestar		Financial Services		Eliminations and Other (1)		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		267.8		1,325.8		823.6		(1,220.6)		27,774.2
Cost of sales
Home sales (2)	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		0.7		3.0		—		—		28.6
	19,829.5		161.5		1,096.6		—		(1,188.4)		19,899.2
Selling, general and administrative expense	1,945.6		44.6		68.4		488.3		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)		(24.8)		(1.4)		(29.3)		24.2		(41.6)
Income before income taxes	$	4,812.8	$	86.5	$	146.6	$	364.6	$	(54.2)	$	5,356.3
Summary Cash Flow Information
Depreciation and amortization	$	63.1	$	5.1	$	2.2	$	1.7	$	10.0	$	82.1
Cash provided by (used in) operating activities	$	1,239.8	$	(410.0)	$	(303.1)	$	(195.8)	$	203.5	$	534.4

_____________

(1)Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances 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)	September 30,
	2023		2022
	(In millions)
Northwest	$	1,907.5	$	1,802.2
Southwest	3,133.0		2,801.7
South Central	3,810.5		3,931.7
Southeast	3,958.5		4,091.1
East	3,024.7		2,542.7
North	2,078.0		1,935.7
Corporate and unallocated (2)	243.6		219.3
	$	18,155.8	$	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	Year Ended September 30,
	2023		2022		2021
	(In millions)
Revenues
Northwest	$	2,582.4	$	2,658.4	$	2,516.6
Southwest	4,282.8		4,840.7		4,071.0
South Central	7,612.6		8,192.3		6,111.2
Southeast	8,760.8		7,951.2		7,079.6
East	5,325.3		5,318.1		4,459.0
North	3,179.3		2,962.4		2,340.2
	$	31,743.2	$	31,923.1	$	26,577.6
Inventory and Land Option Charges
Northwest	$	6.6	$	7.0	$	0.6
Southwest	11.3		6.3		3.0
South Central	7.6		9.9		5.3
Southeast	14.6		13.5		10.2
East	8.4		12.1		2.4
North	12.2		8.4		3.4
	$	60.7	$	57.2	$	24.9
Income before Income Taxes (1)
Northwest	$	391.1	$	560.8	$	510.8
Southwest	489.3		968.3		653.1
South Central	1,388.3		1,910.7		1,150.2
Southeast	1,711.1		1,918.5		1,371.9
East	935.7		1,126.3		795.1
North	350.8		456.3		331.7
	$	5,266.3	$	6,940.9	$	4,812.8

______________________________________________

(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.