Segment Information (Tables)

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	December 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,133.4	$	162.5	$	88.2	$	44.2	$	13.8	$	2,442.1
Restricted cash	12.4		—		9.5		0.6		—		22.5
Inventories:
Construction in progress and finished homes	8,879.5		—		—		—		(136.6)		8,742.9
Residential land and lots — developed and under development	6,366.7		1,854.6		—		—		(58.9)		8,162.4
Land held for development	25.9		105.5		—		—		—		131.4
Land held for sale	24.8		—		—		—		—		24.8
Rental properties	—		—		—		1,161.1		(20.1)		1,141.0
	15,296.9		1,960.1		—		1,161.1		(215.6)		18,202.5
Mortgage loans held for sale	—		—		1,833.3		—		—		1,833.3
Deferred income taxes, net	141.6		—		—		—		(4.0)		137.6
Property and equipment, net	315.5		4.2		3.3		0.7		86.7		410.4
Other assets	1,689.3		35.7		93.3		9.0		(39.8)		1,787.5
Goodwill	134.3		—		—		—		29.2		163.5
	$	19,723.4	$	2,162.5	$	2,027.6	$	1,215.6	$	(129.7)	$	24,999.4
Liabilities
Accounts payable	$	1,021.5	$	53.5	$	—	$	75.7	$	—	$	1,150.7
Accrued expenses and other liabilities	2,316.4		345.7		75.7		8.9		(166.7)		2,580.0
Notes payable	3,291.0		704.9		1,260.0		—		(0.6)		5,255.3
	$	6,628.9	$	1,104.1	$	1,335.7	$	84.6	$	(167.3)	$	8,986.0

______________

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

(2)Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

	September 30, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,950.1	$	153.6	$	79.0	$	16.8	$	10.9	$	3,210.4
Restricted cash	8.4		—		18.0		0.4		—		26.8
Inventories:
Construction in progress and finished homes	7,848.0		—		—		—		(108.8)		7,739.2
Residential land and lots — developed and under development	6,004.0		1,824.7		—		—		(46.9)		7,781.8
Land held for development	30.4		80.5		—		—		—		110.9
Land held for sale	25.4		—		—		—		—		25.4
Rental properties	—		—		—		840.9		(19.1)		821.8
	13,907.8		1,905.2		—		840.9		(174.8)		16,479.1
Mortgage loans held for sale	—		—		2,027.3		—		—		2,027.3
Deferred income taxes, net	159.2		—		—		—		(3.9)		155.3
Property and equipment, net	303.3		2.9		3.5		0.6		82.6		392.9
Other assets	1,468.7		40.0		107.6		6.3		(62.0)		1,560.6
Goodwill	134.3		—		—		—		29.2		163.5
	$	18,931.8	$	2,101.7	$	2,235.4	$	865.0	$	(118.0)	$	24,015.9
Liabilities
Accounts payable	$	1,073.7	$	47.4	$	—	$	55.9	$	—	$	1,177.0
Accrued expenses and other liabilities	1,941.3		333.9		88.6		15.0		(168.5)		2,210.3
Notes payable	3,214.0		704.5		1,494.6		—		(0.7)		5,412.4
	$	6,229.0	$	1,085.8	$	1,583.2	$	70.9	$	(169.2)	$	8,799.7

______________

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

(2)Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments related to the Forestar acquisition.

	Three Months Ended December 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	6,656.4	$	—	$	—	$	—	$	—	$	6,656.4
Land/lot sales and other	23.0		407.6		—		—		(374.4)		56.2
Rental property sales	—		—		—		156.5		—		156.5
Financial services	—		—		184.3		—		—		184.3
	6,679.4		407.6		184.3		156.5		(374.4)		7,053.4
Cost of sales
Home sales (3)	4,833.9		—		—		—		(37.7)		4,796.2
Land/lot sales and other	17.1		333.6		—		—		(317.7)		33.0
Rental property sales	—		—		—		72.5		(0.8)		71.7
Inventory and land option charges	3.9		0.6		—		0.3		—		4.8
	4,854.9		334.2		—		72.8		(356.2)		4,905.7
Selling, general and administrative expense	497.7		21.5		125.3		18.5		2.9		665.9
Other (income) expense	(6.2)		(1.6)		(8.1)		(4.9)		5.3		(15.5)
Income before income taxes	$	1,333.0	$	53.5	$	67.1	$	70.1	$	(26.4)	$	1,497.3
Summary Cash Flow Information
Depreciation and amortization	$	15.4	$	0.5	$	0.4	$	0.1	$	3.0	$	19.4
Cash (used in) provided by operating activities	$	(114.7)	$	5.8	$	247.5	$	(255.9)	$	(56.8)	$	(174.1)

______________

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

(2)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2020
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	5,698.7	$	—	$	—	$	—	$	—	$	5,698.7
Land/lot sales and other	17.9		307.1		—		—		(277.5)		47.5
Rental property sales	—		—		—		31.8		(31.8)		—
Financial services	—		—		187.2		—		—		187.2
	5,716.6		307.1		187.2		31.8		(309.3)		5,933.4
Cost of sales
Home sales (3)	4,325.1		—		—		—		(27.7)		4,297.4
Land/lot sales and other	13.7		262.5		—		—		(249.4)		26.8
Rental property sales	—		—		—		17.8		(17.8)		—
Inventory and land option charges	7.9		0.4		—		—		—		8.3
	4,346.7		262.9		—		17.8		(294.9)		4,332.5
Selling, general and administrative expense	449.4		15.5		109.5		9.3		2.2		585.9
Gain on sale of assets	—		—		—		—		(14.0)		(14.0)
Other (income) expense	(2.1)		(0.5)		(6.4)		(3.9)		7.6		(5.3)
Income before income taxes	$	922.6	$	29.2	$	84.1	$	8.6	$	(10.2)	$	1,034.3
Summary Cash Flow Information
Depreciation and amortization	$	16.4	$	0.7	$	0.4	$	2.7	$	2.7	$	22.9
Cash (used in) provided by operating activities	$	(269.6)	$	(158.7)	$	173.1	$	(58.9)	$	62.0	$	(252.1)

______________

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

(2)Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions.

(3)Amount in the Eliminations and Other column represents the recognition of 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, 2021		September 30, 2021
	(In millions)
Northwest	$	1,450.8	$	1,307.5
Southwest	2,743.3		2,445.6
South Central	3,772.2		3,479.3
Southeast	3,444.9		3,178.6
East	2,118.3		1,919.6
North	1,558.4		1,368.9
Corporate and unallocated (2)	209.0		208.3
	$	15,296.9	$	13,907.8

____________________________

(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 December 31,
	2021		2020
	(In millions)
Revenues
Northwest	$	569.0	$	548.0
Southwest	911.6		838.6
South Central	1,694.3		1,363.5
Southeast	1,810.9		1,465.0
East	1,074.9		1,007.7
North	618.7		493.8
	$	6,679.4	$	5,716.6
Income before Income Taxes
Northwest	$	111.8	$	86.8
Southwest	159.3		115.2
South Central	354.3		240.0
Southeast	415.4		247.2
East	202.3		170.7
North	89.9		62.7
	$	1,333.0	$	922.6