Schedule of segment reporting information, by segment |
The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2017. Financial information relating to the Company’s reporting segments is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2018 | | | Homebuilding | | Forestar (1) | | Financial Services | | Other (2) | | Eliminations (3) | | Other Adjustments (4) | | Consolidated | | | (In millions) | Assets | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 528.9 |
| | $ | 436.4 |
| | $ | 29.1 |
| | $ | 16.4 |
| | $ | — |
| | $ | — |
| | $ | 1,010.8 |
| Restricted cash | | 9.4 |
| | 40.0 |
| | 6.0 |
| | — |
| | — |
| | — |
| | 55.4 |
| Inventories: | | | | | | | | | | | | | | | Construction in progress and finished homes | | 5,119.6 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 5,119.6 |
| Residential land and lots — developed and under development | | 4,595.2 |
| | 261.7 |
| | — |
| | — |
| | 2.4 |
| | 40.7 |
| | 4,900.0 |
| Land held for development | | 86.6 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 86.6 |
| Land held for sale | | 38.2 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 38.2 |
|
| | 9,839.6 |
| | 261.7 |
| | — |
| | — |
| | 2.4 |
| | 40.7 |
| | 10,144.4 |
| Investment in unconsolidated entities | | — |
| | 17.3 |
| | — |
| | — |
| | — |
| | 14.8 |
| | 32.1 |
| Mortgage loans held for sale | | — |
| | — |
| | 658.2 |
| | — |
| | — |
| | — |
| | 658.2 |
| Deferred income taxes | | 218.2 |
| | 1.4 |
| | — |
| | — |
| | — |
| | 0.3 |
| | 219.9 |
| Property and equipment, net | | 204.8 |
| | 1.8 |
| | 3.0 |
| | 170.8 |
| | — |
| | — |
| | 380.4 |
| Other assets | | 543.6 |
| | 22.5 |
| | 42.0 |
| | 3.9 |
| | (23.0 | ) | | 18.7 |
| | 607.7 |
| Goodwill | | 80.0 |
| | — |
| | — |
| | — |
| | — |
| | 29.2 |
| | 109.2 |
| | | $ | 11,424.5 |
| | $ | 781.1 |
| | $ | 738.3 |
| | $ | 191.1 |
| | $ | (20.6 | ) | | $ | 103.7 |
| | $ | 13,218.1 |
| Liabilities | | | | | | | | | | | | | | | Accounts payable | | $ | 568.9 |
| | $ | 2.1 |
| | $ | 3.0 |
| | $ | 8.7 |
| | $ | — |
| | $ | — |
| | $ | 582.7 |
| Accrued expenses and other liabilities | | 967.9 |
| | 59.2 |
| | 35.6 |
| | 15.2 |
| | (23.0 | ) | | (25.3 | ) | | 1,029.6 |
| Notes payable | | 2,623.1 |
| | 109.8 |
| | 489.8 |
| | — |
| | — |
| | 11.2 |
| | 3,233.9 |
| | | $ | 4,159.9 |
| | $ | 171.1 |
| | $ | 528.4 |
| | $ | 23.9 |
| | $ | (23.0 | ) | | $ | (14.1 | ) | | $ | 4,846.2 |
|
______________ | | (1) | Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
| | (2) | Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. |
| | (3) | Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory. |
| | (4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
| | | | | | | | | | | | | | | | | | | | September 30, 2017 | | | Homebuilding | | Financial Services | | Other (1) | | Consolidated | | | (In millions) | Assets | | | | | | | | | Cash and cash equivalents | | $ | 973.0 |
| | $ | 24.1 |
| | $ | 10.7 |
| | $ | 1,007.8 |
| Restricted cash | | 9.3 |
| | 7.2 |
| | — |
| | 16.5 |
| Inventories: | | | | | | | | | Construction in progress and finished homes | | 4,606.0 |
| | — |
| | — |
| | 4,606.0 |
| Residential land and lots — developed and under development | | 4,519.7 |
| | — |
| | — |
| | 4,519.7 |
| Land held for development | | 101.0 |
| | — |
| | — |
| | 101.0 |
| Land held for sale | | 10.4 |
| | — |
| | — |
| | 10.4 |
|
| | 9,237.1 |
| | — |
| | — |
| | 9,237.1 |
| Mortgage loans held for sale | | — |
| | 587.3 |
| | — |
| | 587.3 |
| Deferred income taxes | | 365.0 |
| | — |
| | — |
| | 365.0 |
| Property and equipment, net | | 194.4 |
| | 3.0 |
| | 127.6 |
| | 325.0 |
| Other assets | | 518.7 |
| | 42.2 |
| | 5.0 |
| | 565.9 |
| Goodwill | | 80.0 |
| | — |
| | — |
| | 80.0 |
| | | $ | 11,377.5 |
| | $ | 663.8 |
| | $ | 143.3 |
| | $ | 12,184.6 |
| Liabilities | | | | | | | | | Accounts payable | | $ | 575.6 |
| | $ | 1.5 |
| | $ | 3.3 |
| | $ | 580.4 |
| Accrued expenses and other liabilities | | 933.1 |
| | 35.6 |
| | 16.3 |
| | 985.0 |
| Notes payable | | 2,451.6 |
| | 420.0 |
| | — |
| | 2,871.6 |
| | | $ | 3,960.3 |
| | $ | 457.1 |
| | $ | 19.6 |
| | $ | 4,437.0 |
|
______________ | | (1) | Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2018 | | | Homebuilding | | Forestar (1) | | Financial Services | | Other (2) | | Eliminations (3) | | Other Adjustments (4) | | Consolidated | | | (In millions) | Revenues: | | | | | | | | | | | | | | | Home sales | | $ | 3,672.1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,672.1 |
| Land/lot sales and other | | 13.6 |
| | 22.6 |
| | — |
| | — |
| | (8.5 | ) | | — |
| | 27.7 |
| Financial services | | — |
| | — |
| | 94.9 |
| | — |
| | — |
| | — |
| | 94.9 |
| | | 3,685.7 |
| | 22.6 |
| | 94.9 |
| | — |
| | (8.5 | ) | | — |
| | 3,794.7 |
| Cost of sales: | | | | | | | | | | | | | | | Home sales | | 2,907.5 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,907.5 |
| Land/lot sales and other | | 12.0 |
| | 16.2 |
| | — |
| | — |
| | (6.7 | ) | | 2.5 |
| | 24.0 |
| Inventory and land option charges | | 30.1 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 30.1 |
| | | 2,949.6 |
| | 16.2 |
| | — |
| | — |
| | (6.7 | ) | | 2.5 |
| | 2,961.6 |
| Selling, general and administrative expense | | 322.7 |
| | 5.6 |
| | 66.7 |
| | 5.8 |
| | — |
| | 0.1 |
| | 400.9 |
| Equity in earnings of unconsolidated entities | | — |
| | (1.5 | ) | | — |
| | — |
| | — |
| | 1.1 |
| | (0.4 | ) | Gain on sale of assets | | — |
| | (2.7 | ) | | — |
| | — |
| | — |
| | 1.6 |
| | (1.1 | ) | Interest expense |
| — |
|
| 2.1 |
|
| — |
|
| — |
|
| (2.1 | ) | | — |
|
| — |
| Other (income) expense | | (2.6 | ) | | (1.7 | ) | | (3.2 | ) | | (3.6 | ) | | — |
| | — |
| | (11.1 | ) | Income (loss) before income taxes | | $ | 416.0 |
| | $ | 4.6 |
| | $ | 31.4 |
| | $ | (2.2 | ) | | $ | 0.3 |
| | $ | (5.3 | ) | | $ | 444.8 |
|
______________ | | (1) | Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
| | (2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
| | (3) | Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory. |
| | (4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2018 | | | Homebuilding | | Forestar (1) | | Financial Services | | Other (2) | | Eliminations (3) | | Other Adjustments (4) | | Consolidated | | | (In millions) | Revenues: | | | | | | | | | | | | | | | Home sales | | $ | 6,856.6 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6,856.6 |
| Land/lot sales and other | | 50.0 |
| | 53.5 |
| | — |
| | — |
| | (8.5 | ) | | — |
| | 95.0 |
| Financial services | | — |
| | — |
| | 176.0 |
| | — |
| | — |
| | — |
| | 176.0 |
| | | 6,906.6 |
| | 53.5 |
| | 176.0 |
| | — |
| | (8.5 | ) | | — |
| | 7,127.6 |
| Cost of sales: | | | | | | | | | | | | | | | Home sales | | 5,429.0 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 5,429.0 |
| Land/lot sales and other | | 43.3 |
| | 35.5 |
| | — |
| | — |
| | (6.7 | ) | | 6.9 |
| | 79.0 |
| Inventory and land option charges | | 33.8 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 33.8 |
| | | 5,506.1 |
| | 35.5 |
| | — |
| | — |
| | (6.7 | ) | | 6.9 |
| | 5,541.8 |
| Selling, general and administrative expense | | 627.5 |
| | 19.1 |
| | 128.4 |
| | 9.8 |
| | — |
| | 0.3 |
| | 785.1 |
| Equity in earnings of unconsolidated entities | | — |
| | (9.1 | ) | | — |
| | — |
| | — |
| | 6.4 |
| | (2.7 | ) | Gain on sale of assets | | (13.4 | ) | | (2.7 | ) | | — |
| | — |
| | — |
| | 1.6 |
| | (14.5 | ) | Interest expense | | — |
| | 4.2 |
| | — |
| | — |
| | (4.2 | ) | | — |
| | — |
| Other (income) expense | | (3.4 | ) | | (2.2 | ) | | (6.1 | ) | | (6.5 | ) | | — |
| | — |
| | (18.2 | ) | Income (loss) before income taxes | | $ | 789.8 |
| | $ | 8.7 |
| | $ | 53.7 |
| | $ | (3.3 | ) | | $ | 2.4 |
| | $ | (15.2 | ) | | $ | 836.1 |
| Summary Cash Flow Information: | | | | | | | | | | | | | | | Depreciation and amortization | | $ | 26.3 |
| | $ | 2.5 |
| | $ | 0.7 |
| | $ | 3.3 |
| | $ | — |
| | $ | 0.3 |
| | $ | 33.1 |
| Cash provided by (used in) operating activities | | $ | 90.7 |
| | $ | (150.2 | ) | | $ | (30.7 | ) | | $ | (0.5 | ) | | $ | — |
| | $ | (8.1 | ) | | $ | (98.8 | ) |
______________ | | (1) | Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
| | (2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
| | (3) | Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory. |
| | (4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
| | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2017 | | | Homebuilding | | Financial Services | | Other (1) | | Consolidated | | | (In millions) | Revenues: | | | | | | | | | Home sales | | $ | 3,158.1 |
| | $ | — |
| | $ | — |
| | $ | 3,158.1 |
| Land/lot sales and other | | 6.3 |
| | — |
| | — |
| | 6.3 |
| Financial services | | — |
| | 86.9 |
| | — |
| | 86.9 |
| | | 3,164.4 |
| | 86.9 |
| | — |
| | 3,251.3 |
| Cost of sales: | | | | | | | | | Home sales | | 2,532.1 |
| | — |
| | — |
| | 2,532.1 |
| Land/lot sales and other | | 5.6 |
| | — |
| | — |
| | 5.6 |
| Inventory and land option charges | | 12.2 |
| | — |
| | — |
| | 12.2 |
| | | 2,549.9 |
| | — |
| | — |
| | 2,549.9 |
| Selling, general and administrative expense | | 294.5 |
| | 58.2 |
| | 2.5 |
| | 355.2 |
| Other (income) expense | | (2.4 | ) | | (3.5 | ) | | (1.8 | ) | | (7.7 | ) | Income (loss) before income taxes | | $ | 322.4 |
| | $ | 32.2 |
| | $ | (0.7 | ) | | $ | 353.9 |
|
| | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2017 | | | Homebuilding | | Financial Services | | Other (1) | | Consolidated | | | (In millions) | Revenues: | | | | | | | | | Home sales | | $ | 5,955.8 |
| | $ | — |
| | $ | — |
| | $ | 5,955.8 |
| Land/lot sales and other | | 34.7 |
| | — |
| | — |
| | 34.7 |
| Financial services | | — |
| | 165.0 |
| | — |
| | 165.0 |
| | | 5,990.5 |
| | 165.0 |
| | — |
| | 6,155.5 |
| Cost of sales: | | | | | | | | | Home sales | | 4,776.9 |
| | — |
| | — |
| | 4,776.9 |
| Land/lot sales and other | | 26.4 |
| | — |
| | — |
| | 26.4 |
| Inventory and land option charges | | 14.5 |
| | — |
| | — |
| | 14.5 |
| | | 4,817.8 |
| | — |
| | — |
| | 4,817.8 |
| Selling, general and administrative expense | | 562.9 |
| | 112.9 |
| | 5.2 |
| | 681.0 |
| Other (income) expense | | (6.5 | ) | | (6.7 | ) | | (2.2 | ) | | (15.4 | ) | Income (loss) before income taxes | | $ | 616.3 |
| | $ | 58.8 |
| | $ | (3.0 | ) | | $ | 672.1 |
| Summary Cash Flow Information: | | | | | | | | | Depreciation and amortization | | $ | 25.0 |
| | $ | 0.7 |
| | $ | 1.6 |
| | $ | 27.3 |
| Cash (used in) provided by operating activities | | $ | (240.4 | ) | | $ | 108.6 |
| | $ | (3.9 | ) | | $ | (135.7 | ) |
______________ | | (1) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
| | | | | | | | | | Homebuilding Inventories by Reporting Segment (1) | | March 31, 2018 | | September 30, 2017 | | | (In millions) | East | | $ | 1,188.2 |
| | $ | 1,068.9 |
| Midwest | | 545.6 |
| | 492.6 |
| Southeast | | 2,597.3 |
| | 2,392.3 |
| South Central | | 2,326.2 |
| | 2,199.4 |
| Southwest | | 536.9 |
| | 506.1 |
| West | | 2,415.9 |
| | 2,352.5 |
| Corporate and unallocated (2) | | 229.5 |
| | 225.3 |
| | | $ | 9,839.6 |
| | $ | 9,237.1 |
|
_____________________________
| | (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 capitalized interest and property taxes. |
| | | | | | | | | | | | | | | | | | Homebuilding Results by Reporting Segment | | Three Months Ended March 31, | | Six Months Ended March 31, | | | 2018 | | 2017 | | 2018 | | 2017 | | | (In millions) | Revenues | | | | | | | | | East | | $ | 435.8 |
| | $ | 372.6 |
| | $ | 828.9 |
| | $ | 678.6 |
| Midwest | | 203.6 |
| | 168.7 |
| | 365.0 |
| | 319.8 |
| Southeast | | 1,042.0 |
| | 969.0 |
| | 2,030.6 |
| | 1,852.4 |
| South Central | | 919.0 |
| | 815.4 |
| | 1,727.8 |
| | 1,572.3 |
| Southwest | | 172.1 |
| | 126.7 |
| | 328.5 |
| | 235.2 |
| West | | 913.2 |
| | 712.0 |
| | 1,625.8 |
| | 1,332.2 |
| | | $ | 3,685.7 |
| | $ | 3,164.4 |
| | $ | 6,906.6 |
| | $ | 5,990.5 |
| Inventory and Land Option Charges (1) | | | | | | | | | East | | $ | 0.7 |
| | $ | 6.2 |
| | $ | 0.6 |
| | $ | 6.5 |
| Midwest | | 0.2 |
| | 0.2 |
| | 0.4 |
| | 0.3 |
| Southeast | | 25.1 |
| | 0.9 |
| | 26.2 |
| | 1.6 |
| South Central | | 0.6 |
| | 1.6 |
| | 1.9 |
| | 1.9 |
| Southwest | | — |
| | 0.1 |
| | 0.8 |
| | 0.1 |
| West | | 3.5 |
| | 3.2 |
| | 3.9 |
| | 4.1 |
| | | $ | 30.1 |
| | $ | 12.2 |
| | $ | 33.8 |
| | $ | 14.5 |
| Income before Income Taxes (2) | | | | | | | | | East | | $ | 46.7 |
| | $ | 25.9 |
| | $ | 91.7 |
| | $ | 52.2 |
| Midwest | | 18.7 |
| | 0.7 |
| | 32.0 |
| | 10.9 |
| Southeast | | 96.3 |
| | 113.1 |
| | 218.8 |
| | 212.7 |
| South Central | | 120.5 |
| | 105.8 |
| | 222.0 |
| | 202.3 |
| Southwest | | 22.0 |
| | 7.2 |
| | 36.7 |
| | 11.2 |
| West | | 111.8 |
| | 69.7 |
| | 188.6 |
| | 127.0 |
| | | $ | 416.0 |
| | $ | 322.4 |
| | $ | 789.8 |
| | $ | 616.3 |
|
_____________________________ | | (1) | To conform to the current year presentation, prior period amounts include earnest money and pre-acquisition cost write-offs. |
| | (2) | Expenses maintained at the corporate level consist primarily of 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 segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances. |
|