XML 42 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Information (Tables)
 3 Months Ended
Dec. 31, 2019
Segment Reporting Information [Line Items]  
Schedule of segment reporting information, by segment Financial information relating to the Company’s reporting segments is as follows:
 
 
December 31, 2019
 
 
Homebuilding
 
Forestar (1)
 
Financial Services
 
Other (2)
 
Eliminations (3)
 
Other Adjustments (4)
 
Consolidated
 
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,152.9

 
$
373.3

 
$
37.5

 
$
19.6

 
$
—

 
$
—

 
$
1,583.3

Restricted cash
 
6.6

 
—

 
5.9

 
0.1

 
—

 
—

 
12.6

Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Construction in progress and finished homes
 
5,603.3

 
—

 
—

 
—

 
(23.2
)
 
—

 
5,580.1

     Residential land and lots — developed and under development
 
5,192.7

 
1,051.4

 
—

 
—

 
(32.1
)
 
2.1

 
6,214.1

     Land held for development
 
66.7

 
15.4

 
—

 
—

 
—

 
—

 
82.1

     Land held for sale
 
22.9

 
—

 
—

 
—

 
—

 
—

 
22.9


 
10,885.6

 
1,066.8

 
—

 
—

 
(55.3
)
 
2.1

 
11,899.2

Mortgage loans held for sale
 
—

 
—

 
1,025.1

 
—

 
—

 
—

 
1,025.1

Deferred income taxes, net
 
140.1

 
11.8

 
—

 
—

 
8.2

 
(6.0
)
 
154.1

Property and equipment, net
 
292.8

 
0.9

 
3.1

 
267.6

 
(1.0
)
 
—

 
563.4

Other assets
 
864.4

 
27.1

 
59.7

 
46.1

 
(86.1
)
 
10.5

 
921.7

Goodwill
 
134.3

 
—

 
—

 
—

 
—

 
29.2

 
163.5

 
 
$
13,476.7

 
$
1,479.9

 
$
1,131.3

 
$
333.4

 
$
(134.2
)
 
$
35.8

 
$
16,322.9

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
624.7

 
$
19.8

 
$
1.4

 
$
13.4

 
$
—

 
$
—

 
$
659.3

Accrued expenses and other liabilities
 
1,240.6

 
172.4

 
62.3

 
9.7

 
(94.5
)
 
(13.1
)
 
1,377.4

Notes payable
 
2,470.0

 
462.1

 
850.2

 
—

 
—

 
1.0

 
3,783.3

 
 
$
4,335.3

 
$
654.3

 
$
913.9

 
$
23.1

 
$
(94.5
)
 
$
(12.1
)
 
$
5,820.0

______________
(1)
Amounts 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.
(4)
Amounts represent purchase accounting adjustments related to the Forestar acquisition.

 
 
September 30, 2019
 
 
Homebuilding
 
Forestar (1)
 
Financial Services
 
Other (2)
 
Eliminations (3)
 
Other Adjustments (4)
 
Consolidated
 
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,043.0

 
$
382.8

 
$
43.4

 
$
25.1

 
$
—

 
$
—

 
$
1,494.3

Restricted cash
 
8.0

 
—

 
11.6

 
0.1

 
—

 
—

 
19.7

Inventories:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Construction in progress and finished homes
 
5,249.0

 
—

 
—

 
—

 
(4.0
)
 
—

 
5,245.0

     Residential land and lots — developed and under development
 
4,956.1

 
1,011.8

 
—

 
—

 
(31.4
)
 
2.9

 
5,939.4

     Land held for development
 
60.7

 
17.1

 
—

 
—

 
—

 
—

 
77.8

     Land held for sale
 
19.8

 
—

 
—

 
—

 
—

 
—

 
19.8


 
10,285.6

 
1,028.9

 
—

 
—

 
(35.4
)
 
2.9

 
11,282.0

Mortgage loans held for sale
 
—

 
—

 
1,072.0

 
—

 
—

 
—

 
1,072.0

Deferred income taxes, net
 
146.4

 
17.4

 
—

 
—

 
5.1

 
(5.8
)
 
163.1

Property and equipment, net
 
272.4

 
2.4

 
3.2

 
221.2

 
—

 
—

 
499.2

Other assets
 
826.2

 
24.2

 
68.3

 
71.5

 
(88.5
)
 
11.1

 
912.8

Goodwill
 
134.3

 
—

 
—

 
—

 
—

 
29.2

 
163.5

 
 
$
12,715.9

 
$
1,455.7

 
$
1,198.5

 
$
317.9

 
$
(118.8
)
 
$
37.4

 
$
15,606.6

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
598.6

 
$
16.8

 
$
7.0

 
$
11.6

 
$
—

 
$
—

 
$
634.0

Accrued expenses and other liabilities
 
1,152.5

 
169.5

 
53.0

 
9.3

 
(93.6
)
 
(12.6
)
 
1,278.1

Notes payable
 
2,047.6

 
460.5

 
888.9

 
—

 
—

 
2.4

 
3,399.4

 
 
$
3,798.7

 
$
646.8

 
$
948.9

 
$
20.9

 
$
(93.6
)
 
$
(10.2
)
 
$
5,311.5

______________
(1)
Amounts 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.
(4)
Amounts represent purchase accounting adjustments related to the Forestar acquisition.

 
 
Three Months Ended December 31, 2019
 
 
Homebuilding
 
Forestar (1)
 
Financial Services
 
Other (2)
 
Eliminations (3)
 
Other Adjustments (4)
 
Consolidated
 
 
(In millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home sales
 
$
3,863.3

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,863.3

Land/lot sales and other
 
19.7

 
247.2

 
—

 
8.8

 
(221.2
)
 
—

 
54.5

Financial services
 
—

 
—

 
102.9

 
—

 
—

 
—

 
102.9

 
 
3,883.0

 
247.2

 
102.9

 
8.8

 
(221.2
)
 
—

 
4,020.7

Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home sales (5)
 
3,051.6

 
—

 
—

 
—

 
(6.7
)
 
—

 
3,044.9

Land/lot sales and other
 
13.3

 
216.3

 
—

 
—

 
(193.4
)
 
(0.7
)
 
35.5

Inventory and land option charges
 
3.5

 
0.3

 
—

 
—

 
—

 
—

 
3.8

 
 
3,068.4

 
216.6

 
—

 
—

 
(200.1
)
 
(0.7
)
 
3,084.2

Selling, general and administrative expense
 
358.4

 
10.5

 
77.9

 
8.8

 
—

 
0.2

 
455.8

Loss (gain) on sale of assets
 
—

 
0.1

 
—

 
(31.2
)
 
—

 
—

 
(31.1
)
Other (income) expense
 
(5.4
)
 
(2.2
)
 
(5.5
)
 
1.6

 
—

 
—

 
(11.5
)
Income before income taxes
 
$
461.6

 
$
22.2

 
$
30.5

 
$
29.6

 
$
(21.1
)
 
$
0.5

 
$
523.3

Summary Cash Flow Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
16.5

 
$
0.1

 
$
0.4

 
$
1.9

 
$
—

 
$
0.1

 
$
19.0

Cash (used in) provided by operating activities
 
$
(178.4
)
 
$
(11.7
)
 
$
83.5

 
$
3.9

 
$
(11.1
)
 
$
—

 
$
(113.8
)
______________
(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.
(4)
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
(5)
Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.

 


 
 
Three Months Ended December 31, 2018
 
 
Homebuilding
 
Forestar (1)
 
Financial Services
 
Other (2)
 
Eliminations (3)
 
Other Adjustments (4)
 
Consolidated
 
 
(In millions)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home sales
 
$
3,410.6

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,410.6

Land/lot sales and other
 
6.7

 
38.5

 
—

 
6.9

 
(29.0
)
 
—

 
23.1

Financial services
 
—

 
—

 
85.3

 
—

 
—

 
—

 
85.3

 
 
3,417.3

 
38.5

 
85.3

 
6.9

 
(29.0
)
 
—

 
3,519.0

Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home sales (5)
 
2,729.2

 
—

 
—

 
—

 
(1.1
)
 
—

 
2,728.1

Land/lot sales and other
 
5.1

 
30.7

 
—

 
—

 
(24.4
)
 
3.6

 
15.0

Inventory and land option charges
 
8.0

 
—

 
—

 
—

 
—

 
—

 
8.0

 
 
2,742.3

 
30.7

 
—

 
—

 
(25.5
)
 
3.6

 
2,751.1

Selling, general and administrative expense
 
324.7

 
5.7

 
65.6

 
6.7

 
—

 
0.1

 
402.8

Gain on sale of assets
 
(2.0
)
 
(0.9
)
 
—

 
—

 
—

 
0.9

 
(2.0
)
Other (income) expense
 
(2.0
)
 
(1.9
)
 
(3.9
)
 
(0.8
)
 
—

 
—

 
(8.6
)
Income before income taxes
 
$
354.3

 
$
4.9

 
$
23.6

 
$
1.0

 
$
(3.5
)
 
$
(4.6
)
 
$
375.7

Summary Cash Flow Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
14.7

 
$
0.1

 
$
0.4

 
$
1.6

 
$
—

 
$
0.1

 
$
16.9

Cash (used in) provided by operating activities
 
$
(396.8
)
 
$
(164.1
)
 
$
193.8

 
$
(1.6
)
 
$
—

 
$
(4.4
)
 
$
(373.1
)
______________
(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.
(4)
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
(5)
Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.


 



Homebuilding Inventories by Reporting Segment (1)
 
December 31,
2019
 
September 30,
2019
 
 
(In millions)
East
 
$
1,305.4

 
$
1,288.8

Midwest
 
919.0

 
836.8

Southeast
 
2,915.4

 
2,768.0

South Central
 
2,703.8

 
2,533.2

Southwest
 
612.1

 
574.4

West
 
2,195.6

 
2,056.0

Corporate and unallocated (2)
 
234.3

 
228.4

 
 
$
10,885.6

 
$
10,285.6

_________________

(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 
 December 31,
 
 
2019
 
2018
 
 
(In millions)
Revenues
 
 
 
 
East
 
$
520.5

 
$
447.5

Midwest
 
282.6

 
249.0

Southeast
 
1,150.6

 
1,013.9

South Central
 
958.7

 
872.5

Southwest
 
211.0

 
143.6

West
 
759.6

 
690.8

 
 
$
3,883.0

 
$
3,417.3

Inventory and Land Option Charges
 
 
 
 
East
 
$
0.1

 
$
1.4

Midwest
 
0.1

 
0.3

Southeast
 
1.4

 
1.2

South Central
 
1.5

 
0.5

Southwest
 
0.1

 
0.1

West
 
0.3

 
4.5

 
 
$
3.5

 
$
8.0

Income before Income Taxes (1)
 
 
 
 
East
 
$
59.9

 
$
38.0

Midwest
 
18.6

 
10.6

Southeast
 
146.3

 
112.3

South Central
 
132.6

 
106.0

Southwest
 
34.5

 
17.6

West
 
69.7

 
69.8

 
 
$
461.6

 
$
354.3

_________________
(1)
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 homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.