Segment Information (Tables)

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

Financial information relating to the Company’s reporting segments is as follows:

	December 31, 2020
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,129.3	$	237.4	$	65.3	$	22.9	$	—	$	2,454.9
Restricted cash	10.8		—		9.0		0.2		—		20.0
Inventories:
Construction in progress and finished homes	6,665.1		—		—		—		(66.3)		6,598.8
Residential land and lots — developed and under development	5,407.3		1,484.9		—		—		(36.1)		6,856.1
Land held for development	42.3		55.5		—		—		—		97.8
Land held for sale	23.8		—		—		—		—		23.8
	12,138.5		1,540.4		—		—		(102.4)		13,576.5
Mortgage loans held for sale	—		—		1,438.9		—		—		1,438.9
Deferred income taxes, net	142.6		—		—		—		(0.6)		142.0
Property and equipment, net	388.3		1.9		3.7		359.1		(4.6)		748.4
Other assets	1,121.7		29.4		121.5		56.5		(92.9)		1,236.2
Goodwill	134.3		—		—		—		29.2		163.5
	$	16,065.5	$	1,809.1	$	1,638.4	$	438.7	$	(171.3)	$	19,780.4
Liabilities
Accounts payable	$	786.4	$	42.2	$	—	$	17.0	$	—	$	845.6
Accrued expenses and other liabilities	1,741.6		218.8		101.0		10.9		(133.4)		1,938.9
Notes payable	2,606.2		654.1		969.1		—		(3.8)		4,225.6
	$	5,134.2	$	915.1	$	1,070.1	$	27.9	$	(137.2)	$	7,010.1

______________

(1)Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

	September 30, 2020
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,551.1	$	394.3	$	55.6	$	17.5	$	—	$	3,018.5
Restricted cash	9.5		—		11.9		0.2		—		21.6
Inventories:
Construction in progress and finished homes	6,037.5		—		—		—		(53.4)		5,984.1
Residential land and lots — developed and under development	4,901.4		1,304.3		—		—		(33.9)		6,171.8
Land held for development	47.8		5.4		—		—		—		53.2
Land held for sale	28.3		—		—		—		—		28.3
	11,015.0		1,309.7		—		—		(87.3)		12,237.4
Mortgage loans held for sale	—		—		1,529.0		—		—		1,529.0
Deferred income taxes, net	142.3		—		—		—		2.6		144.9
Property and equipment, net	372.8		1.1		3.9		308.9		(3.0)		683.7
Other assets	996.4		34.8		125.8		52.8		(96.1)		1,113.7
Goodwill	134.3		—		—		—		29.2		163.5
	$	15,221.4	$	1,739.9	$	1,726.2	$	379.4	$	(154.6)	$	18,912.3
Liabilities
Accounts payable	$	859.3	$	29.2	$	—	$	12.0	$	—	$	900.5
Accrued expenses and other liabilities	1,438.3		197.8		86.8		12.2		(128.1)		1,607.0
Notes payable	2,514.4		641.1		1,132.6		—		(4.8)		4,283.3
	$	4,812.0	$	868.1	$	1,219.4	$	24.2	$	(132.9)	$	6,790.8

______________

(1)Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

	Three Months Ended December 31, 2020
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Revenues
Home sales	$	5,698.7	$	—	$	—	$	—	$	—	$	5,698.7
Land/lot sales and other	19.9		307.1		—		14.7		(294.2)		47.5
Financial services	—		—		187.2		—		—		187.2
	5,718.6		307.1		187.2		14.7		(294.2)		5,933.4
Cost of sales
Home sales (3)	4,325.1		—		—		—		(27.7)		4,297.4
Land/lot sales and other	13.8		262.5		—		—		(249.5)		26.8
Inventory and land option charges	7.9		0.4		—		—		—		8.3
	4,346.8		262.9		—		—		(277.2)		4,332.5
Selling, general and administrative expense	451.2		15.5		109.5		9.6		0.1		585.9
Gain on sale of assets	(13.1)		—		—		(0.9)		—		(14.0)
Other (income) expense	(1.5)		(0.5)		(6.4)		3.8		(0.7)		(5.3)
Income before income taxes	$	935.2	$	29.2	$	84.1	$	2.2	$	(16.4)	$	1,034.3
Summary Cash Flow Information
Depreciation and amortization	$	15.4	$	0.1	$	0.4	$	4.4	$	0.1	$	20.4
Cash (used in) provided by operating activities	$	(269.2)	$	(158.7)	$	173.1	$	1.2	$	1.5	$	(252.1)

______________

(1)Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.

(2)Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

(3)Amount in the Eliminations and Other Adjustments 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, 2019
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		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 (3)	3,051.6		—		—		—		(6.7)		3,044.9
Land/lot sales and other	13.3		216.3		—		—		(194.1)		35.5
Inventory and land option charges	3.5		0.3		—		—		—		3.8
	3,068.4		216.6		—		—		(200.8)		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	$	(20.6)	$	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.

(2)Amounts primarily represent the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

(3)Amount in the Eliminations and Other Adjustments 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, 2020		September 30, 2020
	(In millions)
East	$	1,444.3	$	1,328.3
Midwest	1,079.7		958.5
Southeast	3,142.8		2,919.9
South Central	3,255.8		2,879.9
Southwest	849.2		695.8
West	2,143.6		2,009.1
Corporate and unallocated (2)	223.1		223.5
	$	12,138.5	$	11,015.0

_________________

(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,
	2020		2019
	(In millions)
Revenues
East	$	809.2	$	520.5
Midwest	413.1		282.6
Southeast	1,778.4		1,150.6
South Central	1,474.9		958.7
Southwest	232.6		211.0
West	1,010.4		759.6
	$	5,718.6	$	3,883.0
Inventory and Land Option Charges
East	$	0.6	$	0.1
Midwest	0.1		0.1
Southeast	6.7		1.4
South Central	0.1		1.5
Southwest	0.1		0.1
West	0.3		0.3
	$	7.9	$	3.5
Income before Income Taxes
East	$	132.5	$	59.9
Midwest	49.2		18.6
Southeast	305.8		146.3
South Central	264.7		132.6
Southwest	38.6		34.5
West	144.4		69.7
	$	935.2	$	461.6