Segment Information (Tables)

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	March 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	1,887.2	$	167.2	$	94.7	$	56.1	$	—	$	2,205.2
Restricted cash	14.0		—		12.4		0.3		—		26.7
Inventories:
Construction in progress and finished homes	7,377.4		—		—		—		(77.3)		7,300.1
Residential land and lots — developed and under development	5,464.4		1,643.1		—		—		(41.4)		7,066.1
Land held for development	30.5		55.5		—		—		—		86.0
Land held for sale	24.1		—		—		—		—		24.1
	12,896.4		1,698.6		—		—		(118.7)		14,476.3
Mortgage loans held for sale	—		—		1,755.8		—		—		1,755.8
Deferred income taxes, net	143.5		—		—		—		(0.7)		142.8
Property and equipment, net	463.2		2.0		3.5		432.4		(6.1)		895.0
Other assets	1,245.3		31.1		188.9		58.7		(105.5)		1,418.5
Goodwill	134.3		—		—		—		29.2		163.5
	$	16,783.9	$	1,898.9	$	2,055.3	$	547.5	$	(201.8)	$	21,083.8
Liabilities
Accounts payable	$	1,078.0	$	39.8	$	—	$	19.6	$	—	$	1,137.4
Accrued expenses and other liabilities	1,881.2		260.0		195.4		13.2		(151.7)		2,198.1
Notes payable	2,616.9		654.6		1,203.5		—		(2.7)		4,472.3
	$	5,576.1	$	954.4	$	1,398.9	$	32.8	$	(154.4)	$	7,807.8

______________

(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.

	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 March 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Revenues
Home sales	$	6,170.4	$	—	$	—	$	—	$	—	$	6,170.4
Land/lot sales and other	17.3		287.1		—		15.3		(268.3)		51.4
Financial services	—		—		225.1		—		—		225.1
	6,187.7		287.1		225.1		15.3		(268.3)		6,446.9
Cost of sales
Home sales (3)	4,652.0		—		—		—		(35.6)		4,616.4
Land/lot sales and other	12.7		233.2		—		—		(215.2)		30.7
Inventory and land option charges	3.2		0.6		—		—		—		3.8
	4,667.9		233.8		—		—		(250.8)		4,650.9
Selling, general and administrative expense	469.5		16.3		123.7		11.9		0.1		621.5
Other (income) expense	(1.8)		(0.6)		(6.3)		3.3		—		(5.4)
Income before income taxes	$	1,052.1	$	37.6	$	107.7	$	0.1	$	(17.6)	$	1,179.9

______________

(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.

	Six Months Ended March 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Revenues:
Home sales	$	11,869.1	$	—	$	—	$	—	$	—	$	11,869.1
Land/lot sales and other	37.2		594.2		—		30.0		(562.5)		98.9
Financial services	—		—		412.3		—		—		412.3
	11,906.3		594.2		412.3		30.0		(562.5)		12,380.3
Cost of sales:
Home sales (3)	8,977.1		—		—		—		(63.3)		8,913.8
Land/lot sales and other	26.5		495.8		—		—		(464.7)		57.6
Inventory and land option charges	11.2		0.9		—		—		—		12.1
	9,014.8		496.7		—		—		(528.0)		8,983.5
Selling, general and administrative expense	920.6		31.8		233.3		21.5		0.2		1,207.4
Gain on sale of assets	(13.1)		—		—		(0.9)		—		(14.0)
Other (income) expense	(3.3)		(1.1)		(12.8)		7.1		(0.7)		(10.8)
Income before income taxes	$	1,987.3	$	66.8	$	191.8	$	2.3	$	(34.0)	$	2,214.2
Summary Cash Flow Information:
Depreciation and amortization	$	30.0	$	0.2	$	0.8	$	8.0	$	0.3	$	39.3
Cash provided by (used in) operating activities	$	138.0	$	(249.5)	$	(32.3)	$	4.2	$	(15.3)	$	(154.9)

______________

(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 March 31, 2020
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Revenues
Home sales	$	4,363.3	$	—	$	—	$	—	$	—	$	4,363.3
Land/lot sales and other	15.5		159.1		—		9.5		(151.9)		32.2
Financial services	—		—		104.5		—		—		104.5
	4,378.8		159.1		104.5		9.5		(151.9)		4,500.0
Cost of sales
Home sales (3)	3,435.5		—		—		—		(11.0)		3,424.5
Land/lot sales and other	11.3		136.5		—		—		(130.4)		17.4
Inventory and land option charges	8.8		0.1		—		—		—		8.9
	3,455.6		136.6		—		—		(141.4)		3,450.8
Selling, general and administrative expense	361.8		11.2		85.9		7.8		0.1		466.8
Gain on sale of assets	—		(0.3)		—		(28.2)		—		(28.5)
Other (income) expense	(4.1)		(2.1)		(6.1)		1.9		—		(10.4)
Income before income taxes	$	565.5	$	13.7	$	24.7	$	28.0	$	(10.6)	$	621.3

______________

(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.

	Six Months Ended March 31, 2020
	Homebuilding		Forestar (1)		Financial Services		Other		Eliminations and Other Adjustments (2)		Consolidated
	(In millions)
Revenues:
Home sales	$	8,226.6	$	—	$	—	$	—	$	—	$	8,226.6
Land/lot sales and other	35.2		406.4		—		18.3		(373.2)		86.7
Financial services	—		—		207.4		—		—		207.4
	8,261.8		406.4		207.4		18.3		(373.2)		8,520.7
Cost of sales:
Home sales (3)	6,487.0		—		—		—		(17.7)		6,469.3
Land/lot sales and other	24.7		352.8		—		—		(324.6)		52.9
Inventory and land option charges	12.4		0.4		—		—		—		12.8
	6,524.1		353.2		—		—		(342.3)		6,535.0
Selling, general and administrative expense	720.2		21.7		163.8		16.7		0.2		922.6
Gain on sale of assets	—		(0.1)		—		(59.4)		—		(59.5)
Other (income) expense	(9.6)		(4.2)		(11.6)		3.5		—		(21.9)
Income before income taxes	$	1,027.1	$	35.8	$	55.2	$	57.5	$	(31.1)	$	1,144.5
Summary Cash Flow Information:
Depreciation and amortization	$	33.7	$	0.1	$	0.8	$	3.9	$	0.3	$	38.8
Cash provided by (used in) operating activities	$	52.1	$	(123.8)	$	(312.1)	$	5.5	$	(16.8)	$	(395.1)

______________

(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.

Homebuilding Inventories by Reporting Segment (1)	March 31, 2021		September 30, 2020
	(In millions)
East	$	1,518.8	$	1,328.3
Midwest	1,113.5		958.5
Southeast	3,305.9		2,919.9
South Central	3,477.8		2,879.9
Southwest	888.1		695.8
West	2,376.9		2,009.1
Corporate and unallocated (2)	215.4		223.5
	$	12,896.4	$	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 homebuilding capitalized interest and property taxes.

Homebuilding Results by Reporting Segment	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
	(In millions)
Revenues
East	$	861.5	$	579.7	$	1,670.7	$	1,100.2
Midwest	468.4		308.7		881.5		591.3
Southeast	2,054.9		1,316.7		3,833.3		2,467.3
South Central	1,504.1		1,066.4		2,979.0		2,025.1
Southwest	243.1		199.7		475.7		410.7
West	1,055.7		907.6		2,066.1		1,667.2
	$	6,187.7	$	4,378.8	$	11,906.3	$	8,261.8
Inventory and Land Option Charges
East	$	0.7	$	(0.5)	$	1.3	$	(0.3)
Midwest	0.2		1.4		0.3		1.5
Southeast	1.1		2.8		7.8		4.2
South Central	0.4		2.9		0.6		4.4
Southwest	0.3		—		0.4		0.1
West	0.5		2.2		0.8		2.5
	$	3.2	$	8.8	$	11.2	$	12.4
Income before Income Taxes
East	$	146.0	$	73.3	$	278.5	$	133.2
Midwest	60.9		23.6		110.1		42.3
Southeast	376.7		187.8		682.5		333.9
South Central	266.8		156.2		531.5		288.9
Southwest	39.5		30.8		78.1		65.3
West	162.2		93.8		306.6		163.5
	$	1,052.1	$	565.5	$	1,987.3	$	1,027.1