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Supplemental Guarantor Information
 3 Months Ended
Dec. 31, 2019
Supplemental Guarantor Information [Abstract]  
SUPPLEMENTAL GUARANTOR INFORMATION SUPPLEMENTAL GUARANTOR INFORMATION

All of the Company’s homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally guaranteed, on a joint and several basis, by certain subsidiaries of D.R. Horton, Inc. (Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by the Company. The Company’s subsidiaries associated with the Forestar land development operation, the financial services operations and certain other subsidiaries do not guarantee the Company’s homebuilding senior notes or the homebuilding revolving credit facility (collectively, Non-Guarantor Subsidiaries). In lieu of providing separate financial statements for the Guarantor Subsidiaries, consolidating condensed financial statements are presented below. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that they are not material to investors.

The guarantees by a Guarantor Subsidiary will be automatically and unconditionally released and discharged upon: (1) the sale or other disposition of its common stock whereby it is no longer a subsidiary of the Company; (2) the sale or other disposition of all or substantially all of its assets (other than to the Company or another Guarantor); (3) its merger or consolidation with an entity other than the Company or another Guarantor; or (4) its ceasing to guarantee any of the Company’s publicly traded debt securities and ceasing to guarantee any of the Company’s obligations under the homebuilding revolving credit facility.

As described in Note A, at December 31, 2019, the Company reclassified its single-family rental properties from other assets to property and equipment in its homebuilding segment. Reclassification of prior period amounts resulted in decreases in other assets of $26.9 million and $10.1 million in the D.R. Horton, Inc. and Guarantor Subsidiaries columns, respectively, with corresponding increases in property and equipment at September 30, 2019.


NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Balance Sheet
December 31, 2019

 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,069.1


$
30.3


$
483.9


$
—

 
$
1,583.3

Restricted cash
 
4.8

 
1.8

 
6.0

 
—

 
12.6

Investment in subsidiaries
 
7,595.7

 
—

 
—

 
(7,595.7
)
 
—

Inventories
 
4,527.1

 
6,207.5

 
1,219.9

 
(55.3
)
 
11,899.2

Mortgage loans held for sale
 
—

 
—

 
1,025.1

 
—

 
1,025.1

Deferred income taxes, net
 
58.9

 
84.7

 
2.3

 
8.2

 
154.1

Property and equipment, net
 
158.3

 
99.9

 
313.6

 
(8.4
)
 
563.4

Other assets
 
412.6

 
458.7

 
146.6

 
(96.2
)
 
921.7

Goodwill
 
—

 
134.3

 
29.2

 
—

 
163.5

Intercompany receivables
 
—

 
825.5

 
—

 
(825.5
)
 
—

Total Assets
 
$
13,826.5

 
$
7,842.7

 
$
3,226.6

 
$
(8,572.9
)
 
$
16,322.9

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
 
$
719.7

 
$
1,089.1

 
$
329.5

 
$
(101.6
)
 
$
2,036.7

Intercompany payables
 
372.8

 
—

 
452.7

 
(825.5
)
 
—

Notes payable
 
2,452.5

 
17.4

 
1,313.4

 
—

 
3,783.3

Total Liabilities
 
3,545.0

 
1,106.5

 
2,095.6

 
(927.1
)
 
5,820.0

Stockholders’ equity
 
10,281.5

 
6,736.2

 
860.4

 
(7,650.7
)
 
10,227.4

Noncontrolling interests
 
—

 
—

 
270.6

 
4.9

 
275.5

Total Equity
 
10,281.5

 
6,736.2

 
1,131.0

 
(7,645.8
)
 
10,502.9

Total Liabilities & Equity
 
$
13,826.5

 
$
7,842.7

 
$
3,226.6

 
$
(8,572.9
)
 
$
16,322.9


NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Balance Sheet
September 30, 2019
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
877.1

 
$
115.8

 
$
501.4

 
$
—

 
$
1,494.3

Restricted cash
 
6.8

 
1.3

 
11.6

 
—

 
19.7

Investment in subsidiaries
 
7,349.8

 
—

 
—

 
(7,349.8
)
 
—

Inventories
 
4,166.1

 
5,890.7

 
1,260.5

 
(35.3
)
 
11,282.0

Mortgage loans held for sale
 
—

 
—

 
1,072.0

 
—

 
1,072.0

Deferred income taxes, net
 
60.6

 
89.4

 
8.0

 
5.1

 
163.1

Property and equipment, net
 
150.7

 
86.7

 
267.8

 
(6.0
)
 
499.2

Other assets
 
371.8

 
449.6

 
180.9

 
(89.5
)
 
912.8

Goodwill
 
—

 
134.3

 
29.2

 
—

 
163.5

Intercompany receivables
 
—

 
825.9

 
—

 
(825.9
)
 
—

Total Assets
 
$
12,982.9

 
$
7,593.7

 
$
3,331.4

 
$
(8,301.4
)
 
$
15,606.6

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
 
$
616.1

 
$
1,071.3

 
$
316.4

 
$
(91.7
)
 
$
1,912.1

Intercompany payables
 
352.7

 
—

 
473.2

 
(825.9
)
 
—

Notes payable
 
1,955.9

 
14.2

 
1,429.3

 
—

 
3,399.4

Total Liabilities
 
2,924.7

 
1,085.5

 
2,218.9

 
(917.6
)
 
5,311.5

Stockholders’ equity
 
10,058.2

 
6,508.2

 
841.6

 
(7,387.1
)
 
10,020.9

Noncontrolling interests
 
—

 
—

 
270.9

 
3.3

 
274.2

Total Equity
 
10,058.2

 
6,508.2

 
1,112.5

 
(7,383.8
)
 
10,295.1

Total Liabilities & Equity
 
$
12,982.9

 
$
7,593.7

 
$
3,331.4

 
$
(8,301.4
)
 
$
15,606.6



 

NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Three Months Ended December 31, 2019
 


D.R.
Horton, Inc.

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries

Eliminations

Total
 

(In millions)
Revenues

$
1,593.6


$
2,294.4


$
360.3


$
(227.6
)

$
4,020.7

Cost of sales

1,232.4


1,841.0


217.7


(206.9
)

3,084.2

Selling, general and administrative expense

177.3


180.3


98.2


—


455.8

Gain on sale of assets
 
—

 
—

 
(29.3
)
 
(1.8
)
 
(31.1
)
Other (income) expense

(4.1
)

(0.3
)

(7.1
)

—


(11.5
)
Income before income taxes

188.0


273.4


80.8


(18.9
)

523.3

Income tax expense

31.2


45.4


17.3


(3.1
)

90.8

Equity in net income of subsidiaries, net of tax
 
291.4

 
—

 
—

 
(291.4
)
 
—

Net income

448.2


228.0


63.5


(307.2
)

432.5

Net income attributable to noncontrolling interests
 
—

 
—

 
0.1

 
1.1

 
1.2

Net income attributable to D.R. Horton, Inc.
 
$
448.2

 
$
228.0

 
$
63.4

 
$
(308.3
)
 
$
431.3







NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Operations
Three Months Ended December 31, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
Revenues
 
$
1,335.7

 
$
2,081.7

 
$
130.6

 
$
(29.0
)
 
$
3,519.0

Cost of sales
 
1,057.2

 
1,681.4

 
38.0

 
(25.5
)
 
2,751.1

Selling, general and administrative expense
 
157.9

 
165.9

 
79.0

 
—

 
402.8

Gain on sale of assets
 
(2.0
)
 
—

 
—

 
—

 
(2.0
)
Other (income) expense
 
(0.8
)
 
(0.4
)
 
(7.4
)
 
—

 
(8.6
)
Income before income taxes
 
123.4

 
234.8

 
21.0

 
(3.5
)
 
375.7

Income tax expense
 
29.2

 
55.8

 
4.8

 
(0.8
)
 
89.0

Equity in net income of subsidiaries, net of tax
 
195.9

 
—

 
—

 
(195.9
)
 
—

Net income
 
290.1

 
179.0

 
16.2

 
(198.6
)
 
286.7

Net loss attributable to noncontrolling interests
 
—

 
—

 
(0.7
)
 
0.2

 
(0.5
)
Net income attributable to D.R. Horton, Inc.
 
$
290.1

 
$
179.0

 
$
16.9

 
$
(198.8
)
 
$
287.2



 
 



NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Cash Flows
Three Months Ended December 31, 2019
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(67.2
)
 
$
(64.6
)
 
$
73.8

 
$
(55.8
)
 
$
(113.8
)
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Expenditures for property and equipment
 
(8.6
)
 
(12.0
)
 
(1.0
)
 
—

 
(21.6
)
Proceeds from sale of assets
 
—

 
—

 
62.8

 
—

 
62.8

Expenditures related to rental properties
 
(7.3
)
 
(8.3
)
 
(54.8
)
 
10.8

 
(59.6
)
Return of investment in unconsolidated entities
 
—

 
—

 
1.9

 
—

 
1.9

Net principal increase of other mortgage loans and real estate owned
 
—

 
—

 
(0.6
)
 
—

 
(0.6
)
Intercompany advances
 
20.7

 
—

 
—

 
(20.7
)
 
—

Payments related to business acquisitions
 
(0.7
)
 
—

 
—

 
—

 
(0.7
)
Net cash provided by (used in) investing activities
 
4.1

 
(20.3
)
 
8.3

 
(9.9
)
 
(17.8
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable
 
495.7

 
—

 
—

 
—

 
495.7

Payments on mortgage repurchase facility, net
 
—

 
—

 
(38.6
)
 
—

 
(38.6
)
Intercompany advances
 
—

 
(0.1
)
 
(20.6
)
 
20.7

 
—

Proceeds from stock associated with certain employee benefit plans
 
4.1

 
—

 
—

 
—

 
4.1

Cash paid for shares withheld for taxes
 
(17.3
)
 
—

 
—

 
—

 
(17.3
)
Cash dividends paid
 
(64.6
)
 
—

 
(45.0
)
 
45.0

 
(64.6
)
Repurchases of common stock
 
(163.1
)
 
—

 
—

 
—

 
(163.1
)
Distributions to noncontrolling interests, net
 
—

 
—

 
(0.4
)
 
—

 
(0.4
)
Other financing activities
 
(1.7
)
 
—

 
(0.6
)
 
—

 
(2.3
)
Net cash provided by (used in) financing activities
 
253.1

 
(0.1
)
 
(105.2
)
 
65.7

 
213.5

Net increase (decrease) in cash, cash equivalents and restricted cash
 
190.0

 
(85.0
)
 
(23.1
)
 
—

 
81.9

Cash, cash equivalents and restricted cash at beginning of period
 
883.9

 
117.1

 
513.0

 
—

 
1,514.0

Cash, cash equivalents and restricted cash at end of period
 
$
1,073.9

 
$
32.1

 
$
489.9

 
$
—

 
$
1,595.9


NOTE P – SUPPLEMENTAL GUARANTOR INFORMATION - (Continued)


Consolidating Statement of Cash Flows
Three Months Ended December 31, 2018
 
 
 
D.R.
Horton, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
 
 
(In millions)
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(137.6
)
 
$
(244.2
)
 
$
33.7

 
$
(25.0
)
 
$
(373.1
)
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Expenditures for property and equipment
 
(10.2
)
 
(6.4
)
 
(3.6
)
 
—

 
(20.2
)
Proceeds from sale of assets
 
10.4

 
—

 
—

 
—

 
10.4

Expenditures related to rental properties
 
—

 
—

 
(11.4
)
 
—

 
(11.4
)
Return of investment in unconsolidated entities
 
—

 
—

 
4.4

 
—

 
4.4

Net principal increase of other mortgage loans and real estate owned
 
—

 
—

 
(0.6
)
 
—

 
(0.6
)
Intercompany advances
 
(129.9
)
 
—

 
—

 
129.9

 
—

Payments related to business acquisitions
 
(293.0
)
 
—

 
—

 
—

 
(293.0
)
Net cash used in investing activities
 
(422.7
)
 
(6.4
)
 
(11.2
)
 
129.9

 
(310.4
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable
 
578.3

 
—

 
—

 
—

 
578.3

Repayment of notes payable
 
(275.0
)
 
(1.1
)
 
—

 
—

 
(276.1
)
Payments on mortgage repurchase facility, net
 
—

 
—

 
(163.8
)
 
—

 
(163.8
)
Intercompany advances
 
—

 
125.7

 
4.2

 
(129.9
)
 
—

Proceeds from stock associated with certain employee benefit plans
 
8.6

 
—

 
—

 
—

 
8.6

Cash paid for shares withheld for taxes
 
(4.1
)
 
—

 
—

 
—

 
(4.1
)
Cash dividends paid
 
(56.0
)
 
—

 
(25.0
)
 
25.0

 
(56.0
)
Repurchases of common stock
 
(140.6
)
 
—

 
—

 
—

 
(140.6
)
Distributions to noncontrolling interests, net
 
—

 
—

 
(0.5
)
 
—

 
(0.5
)
Net cash provided by (used in) financing activities
 
111.2

 
124.6

 
(185.1
)
 
(104.9
)
 
(54.2
)
Net decrease in cash, cash equivalents and restricted cash
 
(449.1
)
 
(126.0
)
 
(162.6
)
 
—

 
(737.7
)
Cash, cash equivalents and restricted cash at beginning of period
 
914.7

 
160.7

 
430.6

 
—

 
1,506.0

Cash, cash equivalents and restricted cash at end of period
 
$
465.6

 
$
34.7

 
$
268.0

 
$
—

 
$
768.3