Notes Payable (Tables)

12 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Summary of notes payable at principal amounts, net of unamortized discounts

The Company’s notes payable at their carrying amounts consist of the following:

	September 30,
	2020		2019
	(In millions)
Homebuilding:
Unsecured:
Revolving credit facility	$	—	$	—
364-day revolving credit facility	—		—
4.0% senior notes due 2020 (1)	—		499.6
2.55% senior notes due 2020 (1)	399.8		398.9
4.375% senior notes due 2022 (1)	349.2		348.8
4.75% senior notes due 2023 (1)	299.2		298.9
5.75% senior notes due 2023 (1)	398.7		398.4
2.5% senior notes due 2024 (1)	496.5		—
2.6% senior notes due 2025 (1)	495.1		—
Other secured notes (2)	71.1		103.0
	2,509.6		2,047.6
Forestar:
Unsecured:
Revolving credit facility	—		—
3.75% convertible senior notes due 2020 (3)	—		119.1
8.0% senior notes due 2024 (4)	345.2		343.8
5.0% senior notes due 2028 (4)	295.9		—
	641.1		462.9
Financial Services:
Mortgage repurchase facility	1,132.6		888.9
	$	4,283.3	$	3,399.4

______________________

(1)Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $10.7 million and $5.4 million at September 30, 2020 and 2019, respectively.

(2)Homebuilding other secured notes at September 30, 2020 excludes $4.8 million of earnest money notes payable due to Forestar. These intercompany notes are eliminated in consolidation.

(3)Forestar’s 3.75% convertible senior notes due March 2020 included an unamortized fair value adjustment of $2.4 million at September 30, 2019.

(4)Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $8.9 million and $6.2 million at September 30, 2020 and 2019, respectively.

Summary of notes payable terms

The key terms of the Company’s homebuilding senior notes outstanding as of September 30, 2020 are summarized below.

Notes Payable	Principal Amount	Date Issued	Date Due	Redeemable Prior to Maturity (1)	Effective Interest Rate (2)
	(In millions)
2.55% senior notes	$400	December 2017	December 1, 2020	Yes	2.8%
4.375% senior notes	$350	September 2012	September 15, 2022	Yes	4.5%
4.75% senior notes	$300	February 2013	February 15, 2023	Yes	4.9%
5.75% senior notes	$400	August 2013	August 15, 2023	Yes	5.9%
2.5% senior notes	$500	October 2019	October 15, 2024	Yes	2.7%
2.6% senior notes	$500	May 2020	October 15, 2025	Yes	2.8%

_____________

(1)The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the greater of 100% of their principal amount or the present value of the remaining scheduled payments discounted to the redemption date, plus accrued and unpaid interest. In addition, the 4.375% senior notes, 4.75% senior notes and 5.75% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is three months prior to the final maturity date of the notes, and the 2.5% senior notes and 2.6% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is one month prior to the final maturity date of the notes.

(2)Interest is payable semi-annually on each of the series of senior notes. The annual effective interest rate is calculated after giving effect to the amortization of debt issuance costs.