(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer ☐ | ☒ | Non-accelerated filer ¨ | Smaller reporting company | Emerging growth company |
Page | |||||
December 31, 2021 | September 30, 2021 | ||||||||||
(In millions, except share data) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Real estate | |||||||||||
Investment in unconsolidated ventures | |||||||||||
Property and equipment, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued development costs | |||||||||||
Earnest money on sales contracts | |||||||||||
Deferred tax liability, net | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Debt | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
EQUITY | |||||||||||
Common stock, par value $ and September 30, 2021, respectively | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Stockholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions, except per share amounts) | |||||||||||
Revenues | $ | $ | |||||||||
Cost of sales | |||||||||||
Selling, general and administrative expense | |||||||||||
Equity in earnings of unconsolidated ventures | ( | ( | |||||||||
Gain on sale of assets | ( | ||||||||||
Interest and other income | ( | ||||||||||
Income before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||
Net income attributable to Forestar Group Inc. | $ | $ | |||||||||
Basic net income per common share attributable to Forestar Group Inc. | $ | $ | |||||||||
Weighted average number of common shares | |||||||||||
Diluted net income per common share attributable to Forestar Group Inc. | $ | $ | |||||||||
Adjusted weighted average number of common shares |
Common Stock | Additional Paid-in Capital | Retained Earnings | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||
(In millions, except share data) | |||||||||||||||||||||||||||||
Balances at September 30, 2021 ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Issuance of common stock ( | |||||||||||||||||||||||||||||
Stock issued under employee benefit plans ( | |||||||||||||||||||||||||||||
Cash paid for shares withheld for taxes | ( | ( | |||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||
Balances at December 31, 2021 ( | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||
(In millions, except share data) | |||||||||||||||||||||||||||||
Balances at September 30, 2020 ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||
Stock issued under employee benefit plans ( | |||||||||||||||||||||||||||||
Cash paid for shares withheld for taxes | ( | ( | |||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||
Balances at December 31, 2020 ( | $ | $ | $ | $ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Equity in earnings of unconsolidated ventures | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Land option charges | |||||||||||
Gain on sale of assets | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in real estate | ( | ( | |||||||||
Decrease (increase) in other assets | ( | ||||||||||
Increase (decrease) in accounts payable and other accrued liabilities | ( | ||||||||||
Increase in accrued development costs | |||||||||||
(Decrease) increase in earnest money deposits on sales contracts | ( | ||||||||||
Decrease in income taxes receivable | |||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
INVESTING ACTIVITIES | |||||||||||
Expenditures for property, equipment, software and other | ( | ( | |||||||||
Return of investment in unconsolidated ventures | |||||||||||
Proceeds from sale of assets | |||||||||||
Net cash provided by investing activities | |||||||||||
FINANCING ACTIVITIES | |||||||||||
Distributions to noncontrolling interests, net | ( | ||||||||||
Cash paid for shares withheld for taxes | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | |||||||||||
Note payable issued for real estate | $ | $ | |||||||||
Issuance of common stock not settled | $ | $ |
December 31, 2021 | September 30, 2021 | ||||||||||
(In millions) | |||||||||||
Developed and under development projects | $ | $ | |||||||||
Undeveloped land | |||||||||||
$ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Residential lot sales | $ | $ | |||||||||
Tract sales and other | |||||||||||
$ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Capitalized interest, beginning of period | $ | $ | |||||||||
Interest incurred | |||||||||||
Interest charged to cost of sales | ( | ( | |||||||||
Capitalized interest, end of period | $ | $ |
December 31, 2021 | September 30, 2021 | ||||||||||
(In millions) | |||||||||||
Earnest money notes receivable on sales contracts | $ | $ | |||||||||
Other receivables | |||||||||||
Lease right of use assets | |||||||||||
Prepaid expenses | |||||||||||
Land purchase contract deposits | |||||||||||
Other assets | |||||||||||
$ | $ |
December 31, 2021 | September 30, 2021 | ||||||||||
(In millions) | |||||||||||
Accrued employee compensation and benefits | $ | $ | |||||||||
Accrued property taxes | |||||||||||
Lease liabilities | |||||||||||
Accrued interest | |||||||||||
Contract liabilities | |||||||||||
Deferred income | |||||||||||
Income taxes payable | |||||||||||
Other accrued expenses | |||||||||||
Other liabilities | |||||||||||
$ | $ |
December 31, 2021 | September 30, 2021 | ||||||||||
(In millions) | |||||||||||
Unsecured: | |||||||||||
Revolving credit facility | $ | $ | |||||||||
Other note payable | |||||||||||
$ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions, except share and per share amounts) | |||||||||||
Numerator: | |||||||||||
Net income attributable to Forestar Group Inc. | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding — basic | |||||||||||
Dilutive effect of stock-based compensation | |||||||||||
Total weighted average shares outstanding — diluted | |||||||||||
Basic net income per common share attributable to Forestar Group Inc. | $ | $ | |||||||||
Diluted net income per common share attributable to Forestar Group Inc. | $ | $ |
December 31, 2021 | September 30, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Residential lots under contract to sell to D.R. Horton | |||||||||||
Residential lots subject to right of first offer with D.R. Horton | |||||||||||
Earnest money deposits from D.R. Horton for lots under contract | $ | $ | |||||||||
Earnest money notes from D.R. Horton for lots under contract | $ | $ | |||||||||
Remaining purchase price of lots under contract with D.R. Horton | $ | $ |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(Dollars in millions) | |||||||||||
Residential single-family lots sold to D.R. Horton | |||||||||||
Residential lot sales revenues from sales to D.R. Horton | $ | $ | |||||||||
Fair Value at December 31, 2021 | |||||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt (b) (c) |
Fair Value at September 30, 2021 | |||||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt (b) (c) |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Revenues | $ | 407.6 | $ | 307.1 | |||||||
Cost of sales | 334.2 | 262.9 | |||||||||
Selling, general and administrative expense | 21.5 | 15.5 | |||||||||
Equity in earnings of unconsolidated ventures | (1.1) | (0.2) | |||||||||
Gain on sale of assets | (0.5) | — | |||||||||
Interest and other income | — | (0.3) | |||||||||
Income before income taxes | $ | 53.5 | $ | 29.2 |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Development projects | 4,381 | 3,102 | |||||||||
Lot banking projects | 135 | 465 | |||||||||
4,516 | 3,567 | ||||||||||
Average sales price per lot (a) | $ | 89,000 | $ | 86,000 |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Residential lot sales: | |||||||||||
Development projects | $ | 393.0 | $ | 271.1 | |||||||
Lot banking projects | 9.0 | 35.7 | |||||||||
Decrease in contract liabilities | 2.1 | 0.2 | |||||||||
404.1 | 307.0 | ||||||||||
Tract sales and other | 3.5 | 0.1 | |||||||||
Total revenues | $ | 407.6 | $ | 307.1 |
December 31, 2021 | September 30, 2021 | ||||||||||
Lots owned | |||||||||||
Lots controlled through land and lot purchase contracts | 37,600 | 32,600 | |||||||||
Total lots owned and controlled | 103,300 | 97,000 |
Exhibit | Description | |||||||
10.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS** | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH** | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104** | Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101). | |||||||
* | Filed or furnished herewith. | |||||||
** | Submitted electronically herewith. |
FORESTAR GROUP INC. | ||||||||
Date: January 28, 2022 | By: | /s/ James D. Allen | ||||||
James D. Allen, on behalf of Forestar Group Inc. | ||||||||
as Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Principal Accounting Officer) |
/s/ Daniel C. Bartok | |||||
Daniel C. Bartok Chief Executive Officer |
/s/ James D. Allen | |||||
James D. Allen Chief Financial Officer |
/s/ Daniel C. Bartok | |||||
Daniel C. Bartok |
/s/ James D. Allen | |||||
James D. Allen |
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
ASSETS | ||
Cash and cash equivalents | $ 162.5 | $ 153.6 |
Inventory, Real Estate, Land and Land Development Costs | 1,960.1 | 1,905.2 |
Investment in unconsolidated ventures | 0.5 | 0.9 |
Property and equipment, net | 4.2 | 2.9 |
Other assets | 35.2 | 39.1 |
Total assets | 2,162.5 | 2,101.7 |
LIABILITIES | ||
Accounts payable | 53.5 | 47.4 |
Accrued development costs | 116.7 | 104.5 |
Earnest money on sales contracts | 141.9 | 148.3 |
Deferred tax liability, net | 24.2 | 24.4 |
Accrued expenses and other liabilities | 62.9 | 56.7 |
Debt | 704.9 | 704.5 |
Total liabilities | 1,104.1 | 1,085.8 |
Forestar Group Inc. shareholders’ equity: | ||
Common Stock, Value, Issued | 49.7 | 49.6 |
Additional paid-in capital | 638.1 | 636.2 |
Retained earnings | 369.6 | 329.1 |
Stockholders' equity | 1,057.4 | 1,014.9 |
Noncontrolling interests | 1.0 | 1.0 |
Total equity | 1,058.4 | 1,015.9 |
Total liabilities and equity | $ 2,162.5 | $ 2,101.7 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
Equity [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 1.00 | $ 1.00 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 49,675,768 | 49,580,389 |
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Statement [Abstract] | ||
Revenues | $ 407.6 | $ 307.1 |
Cost of sales | 334.2 | 262.9 |
Selling, general and administrative expense | 21.5 | 15.5 |
Equity in earnings of unconsolidated ventures | (1.1) | (0.2) |
Gain on sale of assets | (0.5) | 0.0 |
Interest and other income | 0.0 | (0.3) |
Income before income taxes | 53.5 | 29.2 |
Income tax expense | 13.0 | 7.1 |
Net income | 40.5 | 22.1 |
Net income attributable to noncontrolling interests | 0.0 | 0.1 |
Net income attributable to Forestar Group Inc. | $ 40.5 | $ 22.0 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted average number of common shares | 49,683,369 | 48,129,222 |
Adjusted weighted average number of common shares | 49,732,869 | 48,192,895 |
Earnings Per Share [Abstract] | ||
Basic net income per common share attributable to Forestar Group Inc. | $ 0.81 | $ 0.46 |
Diluted net income per common share attributable to Forestar Group Inc. | $ 0.81 | $ 0.46 |
Consolidated Statement of Shareholders' Equity (Paranthetical) |
Common Stock [Member]
shares
|
---|---|
Common Stock, Shares, Outstanding | 48,061,921 |
Stock issued under employee incentive plans (shares) | 14,722 |
Common Stock, Shares, Outstanding | 48,076,643 |
Common Stock, Shares, Outstanding | 49,580,389 |
Stock Issued During Period, Shares, New Issues | 84,547 |
Stock issued under employee incentive plans (shares) | 10,832 |
Common Stock, Shares, Outstanding | 49,675,768 |
Basis of Presentation |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2021, which was derived from audited financial statements, do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2021. In October 2017, Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton. Immediately following the merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement, and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. At December 31, 2021, D.R. Horton owned approximately 63% of the Company's outstanding common stock. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Changes in Presentation and Reclassifications The Company reclassified the change in accrued development costs from the change in accounts payable and other liabilities to the change in accrued development costs in the prior year statement of cash flows to conform to the current year presentation. This reclassification had no net effect on the Company's consolidated operating results, financial position or cash flows. Pending Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect such standards to have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, “Revenue from Contracts with Customers,” to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for the Company beginning October 1, 2023 and interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of this guidance, and it is not expected to have a material impact on its consolidated financial position, results of operations or cash flows.
|
Segment Information |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company manages its operations through its real estate segment which is its core business and generates substantially all of its revenues. The real estate segment primarily acquires land and develops infrastructure for single-family residential communities, and its revenues generally come from sales of residential single-family finished lots to local, regional and national homebuilders. The Company has other business activities for which the related assets and operating results are immaterial, and therefore are included within the Company's real estate segment. |
Real Estate (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate Real estate consists of:
In the three months ended December 31, 2021, the Company invested $135.2 million for the acquisition of residential real estate and $244.8 million for the development of residential real estate. At December 31, 2021 and September 30, 2021, undeveloped land primarily consisted of undeveloped land which the Company has the contractual right to sell to D.R. Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum. Each quarter, the Company reviews the performance and outlook for all of its real estate for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As a result of this process, there were no real estate impairment charges recorded for either period presented in the consolidated statements of operations. In the three months ended December 31, 2021 and 2020, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $0.6 million and $0.4 million, respectively. These land option charges are included in cost of sales in the consolidated statements of operations.
|
Revenues (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | RevenuesRevenues consist of:
|
Capitalized Interest (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Interest [Text Block] | Capitalized Interest The Company capitalizes interest costs to real estate throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. In the first three months of fiscal 2022 and fiscal year 2021, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate. The following table summarizes the Company’s interest costs incurred, capitalized and expensed in the three months ended December 31, 2021 and 2020.
|
Other Assets, Accrued Expenses and Other Liabilities (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets And Other Liabilities [Text Block] | Other Assets, Accrued Expenses and Other Liabilities The Company's other assets at December 31, 2021 and September 30, 2021 were as follows:
The Company's accrued expenses and other liabilities at December 31, 2021 and September 30, 2021 were as follows:
|
Debt, net (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net | Debt The Company's notes payable at their carrying amounts consist of the following:
______________ (1)Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $7.6 million and $8.0 million at December 31, 2021 and September 30, 2021, respectively. Bank Credit Facility The Company has a $410 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank commitments. The maturity date of the facility is April 16, 2025. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the revolving credit commitment. Borrowings under the revolving credit facility are subject to a borrowing base calculation based on the book value of the Company's real estate assets and unrestricted cash. Letters of credit issued under the facility reduce the available borrowing capacity. There were no borrowings or repayments under the facility in the three months ended December 31, 2021. At December 31, 2021, there were no borrowings outstanding and $66.3 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $343.7 million. The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require a minimum level of tangible net worth, a minimum level of liquidity, and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At December 31, 2021, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. Senior Notes The Company has outstanding senior notes as described below that were issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The notes represent senior unsecured obligations that rank equally in right of payment to all existing and future senior unsecured indebtedness and may be redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreements. The notes are guaranteed by each of the Company's subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility. The Company's $400 million principal amount of 3.85% senior notes (the "2026 notes") mature May 15, 2026 with interest payable semi-annually. On or after May 15, 2023, the 2026 notes may be redeemed at 101.925% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter and the 2026 notes can be redeemed at par on or after May 15, 2025 through maturity. The annual effective interest rate of the 2026 notes after giving effect to the amortization of financing costs is 4.1%. The Company's $300 million principal amount of 5.0% senior notes (the "2028 notes") mature March 1, 2028 with interest payable semi-annually. On or after March 1, 2023, the 2028 notes may be redeemed at 102.5% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter and the 2028 notes can be redeemed at par on or after March 1, 2026 through maturity. The annual effective interest rate of the 2028 notes after giving effect to the amortization of financing costs is 5.2%. The indentures governing the senior notes require that, upon the occurrence of both a change of control and a rating decline (each as defined in the respective indenture), the Company offer to purchase the notes at 101% of their principal amount. If the Company or its restricted subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash proceeds from such asset sales in its business within a specified period of time, repay certain senior secured debt or debt of its non-guarantor subsidiaries, or make an offer to purchase a principal amount of the notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount. The indentures contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments; incur additional debt or issue mandatorily redeemable equity; incur liens on assets; merge or consolidate with another company or sell or otherwise dispose of all or substantially all of the Company’s assets; enter into transactions with affiliates; and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments. At December 31, 2021, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations. Effective April 30, 2020, the Board of Directors authorized the repurchase of up to $30 million of the Company’s debt securities. The authorization has no expiration date. All of the $30 million authorization was remaining at December 31, 2021. Other Note Payable The Company's other note payable of $12.5 million was issued as part of a transaction to acquire real estate for development. The note is non-recourse and is secured by the underlying real estate, accrues interest at 4.0% per annum and matures in October 2023.
|
Earnings per Share (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share | Earnings per ShareThe computations of basic and diluted earnings per share are as follows:
|
Income Taxes (Notes) |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax expense for the three months ended December 31, 2021 and 2020 was $13.0 million and $7.1 million, respectively, and the effective tax rate was 24.3% in both periods. The effective tax rate for both periods includes an expense for state income taxes and nondeductible expenses and a benefit related to noncontrolling interests. At December 31, 2021, the Company had deferred tax liabilities, net of deferred tax assets, of $23.0 million. The deferred tax assets were partially offset by a valuation allowance of $1.2 million, resulting in a net deferred tax liability of $24.2 million. At September 30, 2021, deferred tax liabilities, net of deferred tax assets, were $23.2 million. The deferred tax assets were partially offset by a valuation allowance of $1.2 million, resulting in a net deferred tax liability of $24.4 million. The valuation allowance for both periods was recorded because it is more likely than not that a portion of the Company's state deferred tax assets, primarily net operating loss (NOL) carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets. Any reversal of the valuation allowance in future periods will impact the effective tax rate.
|
Stockholders' Equity (Notes) |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity and Stock-Based Compensation Stockholders' Equity The Company has an effective shelf registration statement, filed with the Securities and Exchange Commission in October 2021, registering $750 million of equity securities, of which $300 million was reserved for sales under its at-the-market equity offering program that became effective in November 2021. In the three months ended December 31, 2021, the Company issued 84,547 shares of common stock under its at-the-market equity offering program for proceeds of $1.7 million, net of commissions and other issuance costs totaling $0.1 million. At December 31, 2021, $748.2 million remained available for issuance under the shelf registration statement, of which $298.2 million was reserved for sales under the at-the-market equity offering program. Restricted Stock Units (RSUs) The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit awards may be based on performance (performance-based) or on service over a requisite time period (time-based). RSU equity awards represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions and/or performance criteria are satisfied. The RSUs have no voting rights until vested. There were no new grants of time-based RSUs in the three months ended December 31, 2021. Total stock-based compensation expense related to the Company's restricted stock units for the three months ended December 31, 2021 and 2020 was $0.4 million and $0.3 million, respectively.
|
Commitments and Contingencies (Notes) |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations and Off-Balance Sheet Arrangements In support of the Company's residential lot development business, it issues letters of credit under the revolving credit facility and has a surety bond program that provides financial assurance to beneficiaries related to the execution and performance of certain development obligations. At December 31, 2021, the Company had outstanding letters of credit of $66.3 million under the revolving credit facility and surety bonds of $528.2 million issued by third parties to secure performance under various contracts. The Company expects that its performance obligations secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in accordance with the applicable contractual terms. When the Company completes its performance obligations, the related letters of credit and bonds are generally released shortly thereafter, leaving the Company with no continuing obligations. The Company has no material third-party guarantees. Litigation The Company is involved in various legal proceedings that arise from time to time in the ordinary course of business and believes that adequate reserves have been established for any probable losses. The Company does not believe that the outcome of any of these proceedings will have a significant adverse effect on its financial position, long-term results of operations or cash flows. It is possible, however, that charges related to these matters could be significant to the Company's results or cash flows in any one accounting period.
|
Related Party Transactions (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The Company has a Shared Services Agreement with D.R. Horton whereby D.R. Horton provides the Company with certain administrative, compliance, operational and procurement services. In the three months ended December 31, 2021 and 2020, selling, general and administrative expense in the consolidated statements of operations includes $1.0 million and $1.1 million for these shared services, $1.6 million and $1.0 million for the cost of health insurance and other employee benefits and $0.9 million and $1.1 million for other corporate and administrative expenses paid by D.R. Horton on behalf of the Company. Under the terms of the Master Supply Agreement with D.R. Horton, both companies identify land development opportunities to expand the Company's portfolio of assets. At December 31, 2021 and September 30, 2021, the Company owned approximately 65,700 and 64,400 residential lots, of which D.R. Horton had the following involvement.
In the three months ended December 31, 2021 and 2020, the Company sold 4,516 and 3,567 residential lots, and lot sales revenues were $404.1 million and $307.0 million. Lot sales and lot sales revenue to D.R. Horton in those periods were as follows.
In addition, the net impact of the change in contract liabilities increased revenues on lot sales to D.R. Horton by $2.1 million and $0.2 million in the three months ended December 31, 2021 and 2020, respectively. In the three months ended December 31, 2021 and 2020, the Company reimbursed D.R. Horton approximately $2.7 million and $16.1 million for previously paid earnest money and $21.6 million and $20.9 million for pre-acquisition and other due diligence and development costs related to land purchase contracts whereby D.R. Horton assigned its rights under these land purchase contracts to the Company. In the three months ended December 31, 2021 and 2020, the Company paid D.R. Horton $0.9 million and $1.7 million for land development services. These amounts are included in cost of sales in the Company’s consolidated statements of operations. At December 31, 2021 and September 30, 2021, undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum. At December 31, 2021 and September 30, 2021, accrued expenses and other liabilities on the Company's consolidated balance sheets included $7.7 million and $6.7 million, respectively, owed to D.R. Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements.
|
Fair Value (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. In arriving at a fair value measurement, the Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of inputs used to establish fair value are the following: •Level 1 — Quoted prices in active markets for identical assets or liabilities; •Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company elected not to use the fair value option for cash and cash equivalents and debt. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at December 31, 2021 and September 30, 2021.
_____________________ (a) The fair values of cash and cash equivalents approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) At December 31, 2021 and September 30, 2021, debt primarily consisted of the Company's senior notes. The fair value of the senior notes is determined based on quoted market prices, which is classified as Level 2 within the fair value hierarchy. (c) The fair value of the Company's other note payable approximates its carrying value due to its short-term nature and is classified as Level 3 within the fair value hierarchy. Non-financial assets measured at fair value on a non-recurring basis primarily include real estate assets which the company reviews for indicators of potential impairment and performs impairment evaluations when necessary.
|
Basis of Presentation (Policies) |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2021, which was derived from audited financial statements, do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2021. In October 2017, Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton. Immediately following the merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement, and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. At December 31, 2021, D.R. Horton owned approximately 63% of the Company's outstanding common stock.
|
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
|
Reclassification, Comparability Adjustment | Changes in Presentation and Reclassifications The Company reclassified the change in accrued development costs from the change in accounts payable and other liabilities to the change in accrued development costs in the prior year statement of cash flows to conform to the current year presentation. This reclassification had no net effect on the Company's consolidated operating results, financial position or cash flows.
|
New Accounting Pronouncements, Policy [Policy Text Block] | Pending Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect such standards to have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, “Revenue from Contracts with Customers,” to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for the Company beginning October 1, 2023 and interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of this guidance, and it is not expected to have a material impact on its consolidated financial position, results of operations or cash flows.
|
Real Estate (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Properties | Real estate consists of:
|
Revenues (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Revenues consist of:
|
Capitalized Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Interest Costs [Table Text Block] | The following table summarizes the Company’s interest costs incurred, capitalized and expensed in the three months ended December 31, 2021 and 2020.
|
Other Assets, Accrued Expenses and Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets [Table Text Block] | The Company's other assets at December 31, 2021 and September 30, 2021 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities [Table Text Block] | The Company's accrued expenses and other liabilities at December 31, 2021 and September 30, 2021 were as follows:
|
Debt, net - Schedule of Debt (Tables) - USD ($) $ in Millions |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 |
Sep. 30, 2021 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit | $ 0.0 | $ 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | $ 704.9 | 704.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The Company's notes payable at their carrying amounts consist of the following:
______________ (1)Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $7.6 million and $8.0 million at December 31, 2021 and September 30, 2021, respectively.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 3.85% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | $ 395.7 | 395.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate percentage | 3.85% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | $ 296.7 | 296.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate percentage | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | $ 12.5 | $ 12.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate percentage | 4.00% |
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Attributable to Common Shareholders and Weighted Average Common Shares Outstanding | The computations of basic and diluted earnings per share are as follows:
|
Related Party Transactions Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | At December 31, 2021 and September 30, 2021, the Company owned approximately 65,700 and 64,400 residential lots, of which D.R. Horton had the following involvement.
In the three months ended December 31, 2021 and 2020, the Company sold 4,516 and 3,567 residential lots, and lot sales revenues were $404.1 million and $307.0 million. Lot sales and lot sales revenue to D.R. Horton in those periods were as follows.
|
Fair Value Measures and Disclosures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Not Measured at Fair Value | For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at December 31, 2021 and September 30, 2021.
_____________________ (a) The fair values of cash and cash equivalents approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) At December 31, 2021 and September 30, 2021, debt primarily consisted of the Company's senior notes. The fair value of the senior notes is determined based on quoted market prices, which is classified as Level 2 within the fair value hierarchy. (c) The fair value of the Company's other note payable approximates its carrying value due to its short-term nature and is classified as Level 3 within the fair value hierarchy.
|
Basis of Presentation Details (Details) |
Dec. 31, 2021 |
---|---|
Majority Shareholder [Member] | D.R. Horton, Inc. [Member] | |
Entity Information [Line Items] | |
Sale of Stock, Percentage of Ownership after Transaction | 63.00% |
Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenue from External Customer [Line Items] | ||
Tract sales and other | $ 3.5 | $ 0.1 |
Revenues | 407.6 | 307.1 |
Real Estate [Member] | Residential Real Estate [Member] | ||
Revenue from External Customer [Line Items] | ||
Residential lot sales | $ 404.1 | $ 307.0 |
Capitalized Interest (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Capitalized Interest Costs [Line Items] | ||||
Interest Costs Incurred | $ 8.2 | $ 11.5 | ||
Real Estate Inventory, Capitalized Interest Costs | 52.9 | 51.0 | $ 53.7 | $ 48.7 |
Real Estate Inventory, Capitalized Interest Costs, Cost of Sales | $ (9.0) | $ (9.2) |
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | ||
Earnest money notes receivable on sales contracts | $ 0.6 | $ 0.7 |
Other receivables | 2.1 | 0.4 |
Lease right of use assets | 7.2 | 6.9 |
Prepaid expenses | 12.5 | 15.4 |
Land purchase contract deposits | 10.8 | 10.4 |
Other assets | 2.0 | 5.3 |
Total Other assets | 35.2 | 39.1 |
Accrued employee compensation and benefits | 5.3 | 7.9 |
Accrued property taxes | 0.6 | 3.4 |
Lease liabilities | 7.7 | 7.3 |
Accrued interest | 7.5 | 8.5 |
Contract liabilities | 3.7 | 5.8 |
Deferred income | 6.8 | 6.8 |
Income taxes payable | 19.9 | 6.8 |
Other accrued expenses | 10.2 | 8.9 |
Other liabilities | 1.2 | 1.3 |
Total Accrued expenses and other liabilities | $ 62.9 | $ 56.7 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Continuing operations | ||
Net income (loss) attributable to Forestar Group Inc. | $ 40.5 | $ 22.0 |
Denominator: | ||
Weighted average common shares outstanding — basic | 49,683,369 | 48,129,222 |
Dilutive effect of stock-based compensation | 49,500 | 63,673 |
Total weighted average shares outstanding — diluted | 49,732,869 | 48,192,895 |
Basic net income per common share attributable to Forestar Group Inc. | $ 0.81 | $ 0.46 |
Diluted net income per common share attributable to Forestar Group Inc. | $ 0.81 | $ 0.46 |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 13.0 | $ 7.1 | |
Effective income tax rate, percent | 24.30% | 24.30% | |
Deferred Income Tax Liabilities, Net of Deferred Income Tax Assets | $ 23.0 | $ 23.2 | |
Valuation allowance, deferred tax asset, amount | 1.2 | 1.2 | |
Deferred tax liability, net | $ 24.2 | $ 24.4 |
Stockholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Nov. 18, 2021 |
Oct. 08, 2021 |
|
Class of Stock [Line Items] | ||||
Equity Securities Registered, Value | $ 750.0 | |||
At-the-market Equity Offering Program, Common Stock Available for Issuance | $ 298.2 | $ 300.0 | ||
At-the-market Equity Offering Program, Common Stock Issued | 84,547 | |||
At-the-market Equity Offering Program, Net Proceeds | $ 1.7 | |||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 0.1 | |||
Common Stock Available for Issuance, Value Remaining | $ 748.2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||
Stock-based compensation expense | $ 0.4 | $ 0.3 |
Commitments and Contingencies Narrative (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Loss Contingencies [Line Items] | |
Letters of Credit Outstanding, Amount | $ 66.3 |
Special Assessment Bond | $ 528.2 |
Label | Element | Value |
---|---|---|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 394,300,000 |
B0#BXLR\##;5*KHA#?WC^D2RXERC(5BD6KC21402>N-#2
M>[D@6W"-5Q8FG'SOM&R;;+G*YK?8]+2H&Q1W=BCY/@PKLGB/GF58!ELA 4-
M REJ \6-_) O 0?V>[TP*,#(459+J&>$A0D"VL*36
MK/C5K'2[U;18S+ W*"WR+M1"3CRWGH#LI5!/6 ;ZU.1)+:EP+6;'PC25'5UD NA\+K'9?
MI#',@OO^KWC'W;O"T;7F'ZX4%ZL[AOUKW&D]@3DNI=8^2;. &JTT!7R&?C<^
MXZDWX*F]\EU&,(@SZ'3B_NM17@J[Y!,R(7N/Y01_>#@ZC]-C/V8?">"$WU)G
M\;F?.G$*[WV>9*\T*V16WX SJ;UN@AK4Q:,T[6&>9KC&'NR-=ND$#3.;0'/G V98+;CFMOGEB6X'F[2*R
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M$ECK!8?J;^0A!HY_CT:ZD+&LA#JANY'2T6+-GSNYVZ+$'??B:"Y@1A?YMYM8]I1%J-.
MR@4C0R_
\<-WKG'NQ29E)^M ]WR77+MXPPQ=A8"$9_:YQ@FEHDXO&I!&U5
!'S (H)L$$*:I(,+>-F>
MD,SC9;].R/>[A;&:=C\N^,GW?G+O)W_'SS.U5[D2"*JZQ/1WSS2\X)N%N5#%
MZX]SG%]TY?KZUK2LP&E C6M0KS&8W5D@ZK!9H-[3!TR6\(RM[8^3[C@$6R/<
MJZ9E<@MJ(RE4UK9:O7%J"Q1;& W#ZR3QYJ,\S$DD/[Q$:3D3()0UH
.+]?2^"=KN]J;]P'+CX9TW8.M@UJH[LV?^G,X XRG%P!)#TB\[T[(
MNUQPXEF*NF7HJBV;"WRK'FW-">4N94MH=X7%43;G1ABF2[9&,*"(^[-: '$A
M#7O=!V_2B*R8@T1Y3SSOB),+Q O(0S89CU@2)^/_X9'U.!A-!J.)YYM>X%OQ
M7QH%/;-MQ1$J+0M ]KB">@?XD_UEBW 3L@>-I-6(+945/VU>$9\,XA,O/KD@
M_E&1DUZJ[BMP1_3XV=:P)4%MKBE,!X7IU?:V7(*[ABWI_#!B:\#
6]G7S*)UY@
M&5%.,V,A"/X\T#GEW"(AC^\UJ-?$M([M\1[]O1./8I9$T[GDWUAN-A,O]2"G
M*U)R
QQ
M?YCV@]Y@[#^T
&XU!HC[#+%2"(,&9,\TH9J
M9@65ULHEBF&L3N*>C6)1B?)#B_)TR5+BHO4D(:6-0SE] )G(LSS+J"*+V FQ
M1*+\JD[=1GGYM=3JVJY_A!.WEPY;#\=2>(WW_?UXYBKO^QT1:Y8=2%&AM> !
M<4=XKCT5D?8V_Q6D$I$(@OF"C*2;" OV#9> OH'/OY*FB379JVU [Z6:?XCU_/CUI9:Q;'.[U4
M>Y?5D2+9T*[-F_LG7:,S)YG%&GV_O;/YN;F^4_NPL_WE8VVK\>YZ 5Z6-C?&
M8/1N$HS>7X#1YPLP6OJN_/:E:T]""]K_^VQ;;P80N:;CY4T_W76>;KIJ9*S!
ME0I $FSUE !#1&?@AF!8E@#7Y*)!OM#>
M[%F,ZJ7>XWL/\]L3H^-'T55RW%/'R3QB_LZ+5.P/Y$&*D1>IO>3?,;+>G LG
M$,K#]$<;2^*IYY$0A"1149"$*J1QX$;SR/=B^BDZH\:5RPD=]'B;6DY( A3SP\A[(3 0/"G'^D(((+G9W2Q"G"!KKE\,Q]C ?\<@'X!Y
MJYR@D)M"L)])U3/K E8#_&$?0 *]7KF4@B?0EU>ZH&"SU:[@-X,2)8?C&!1(
M8Y?FZ1?<>Z]VNWI?"*1>D2%RJ!J"U?P5<_@":DI:=.%\FAQ^1/#'?("8]5,I
MHJO72[.:)ERC,(Q*?$***B5F97P;AP
M\]!+>])<44+/.=)V"-.N]KCF$@3@V-F#@=&\6!7'P_LJ/R#C*UQ[JPM?7 1,)428 GFB3
MXU$[1[2/1&,&P(0U%@^E0U78
Z#B88SM[D;L,"8WD3O-%]C/LC0MM-W S=+&,.PUY*B?(MV<=#CD&GEC4>
MEMG$F1"ZE,N41P#)8C&$Z/+!A?X 95GO3+ CA<$[X:[PIU8/^IHSF+8?%J1
M.-W;3[/1W@R8N8Y##<<@_*J*HU)JC2S'=NX0\2"]D]FWY67$=Y+D/!,QPHG#
M6:'/8Y*B6V5D;U*ZDN9BW,=PHE#%7%@:C!PCP#7X=&A?I;I78CKX@K)7;UR-
M=%XU%I_H#%53V*V#5WI)JP YI0/QHR$TO< 9YPP<<)[I%.5GH9%6*CZ=!7O
M@5*7#JI@X[1@JTH5KEH8%QLCVJ.S(5UW!:*KPJP&B^[#HL[!Z>UY( )'!B$E
M";(7EG@^B1Q?$+!JP-J)?&E[/F8L15O,8YJKW_SJQ34HM#(!PUT1R;V8,*!
M ER"$IXX@8@Y#;P@7$,G,1Q!9/DPTRW35YM;A37DJ0ZVU,I>#
ML6>]WIC(ITE07,?XJI.W.?;\L#Z.A\/>S1UF>\PWB1X=#R8?J-]D2O6P3UJ8*D"
V!!ZY5OZ8M9+Z-_>RN)]JAF_JUFF#!