Segment Information (Tables)

6 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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

	March 31, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	1,167.9	$	233.7	$	102.1	$	141.1	$	19.1	$	1,663.9
Restricted cash	14.9		—		9.5		0.8		—		25.2
Inventories:
Construction in progress and finished homes	10,047.5		—		—		—		(170.9)		9,876.6
Residential land and lots — developed and under development	6,550.8		1,861.7		—		—		(66.4)		8,346.1
Land held for development	26.0		98.8		—		—		—		124.8
Land held for sale	21.6		—		—		—		—		21.6
Rental properties	—		—		—		1,500.1		(22.7)		1,477.4
	16,645.9		1,960.5		—		1,500.1		(260.0)		19,846.5
Mortgage loans held for sale	—		—		2,242.8		—		—		2,242.8
Deferred income taxes, net	134.9		—		—		—		(3.2)		131.7
Property and equipment, net	332.9		5.0		3.9		1.0		91.2		434.0
Other assets	1,920.1		32.4		310.1		14.3		(99.2)		2,177.7
Goodwill	134.3		—		—		—		29.2		163.5
	$	20,350.9	$	2,231.6	$	2,668.4	$	1,657.3	$	(222.9)	$	26,685.3
Liabilities
Accounts payable	$	1,220.8	$	55.6	$	—	$	184.6	$	(82.4)	$	1,378.6
Accrued expenses and other liabilities	2,085.5		363.3		319.5		9.6		(159.0)		2,618.9
Notes payable	3,286.3		705.3		1,578.9		—		(0.5)		5,570.0
	$	6,592.6	$	1,124.2	$	1,898.4	$	194.2	$	(241.9)	$	9,567.5

______________

(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 March 31, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	7,499.2	$	—	$	—	$	—	$	—	$	7,499.2
Land/lot sales and other	7.6		421.6		—		—		(374.4)		54.8
Rental property sales	—		—		—		222.9		—		222.9
Financial services	—		—		222.1		—		—		222.1
	7,506.8		421.6		222.1		222.9		(374.4)		7,999.0
Cost of sales
Home sales (3)	5,335.2		—		—		—		(43.7)		5,291.5
Land/lot sales and other	3.3		328.7		—		—		(307.0)		25.0
Rental property sales	—		—		—		102.5		(4.3)		98.2
Inventory and land option charges	9.8		5.4		—		—		—		15.2
	5,348.3		334.1		—		102.5		(355.0)		5,429.9
Selling, general and administrative expense	507.3		24.3		138.0		22.8		2.7		695.1
Other (income) expense	(1.6)		—		(8.7)		(4.9)		5.9		(9.3)
Income before income taxes	$	1,652.8	$	63.2	$	92.8	$	102.5	$	(28.0)	$	1,883.3

______________

(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.

	Six Months Ended March 31, 2022
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	14,155.6	$	—	$	—	$	—	$	—	$	14,155.6
Land/lot sales and other	30.5		829.2		—		—		(748.7)		111.0
Rental property sales	—		—		—		379.4		—		379.4
Financial services	—		—		406.4		—		—		406.4
	14,186.1		829.2		406.4		379.4		(748.7)		15,052.4
Cost of sales
Home sales (3)	10,169.1		—		—		—		(81.3)		10,087.8
Land/lot sales and other	20.4		662.3		—		—		(624.8)		57.9
Rental property sales	—		—		—		175.0		(5.1)		169.9
Inventory and land option charges	13.7		6.0		—		0.3		—		20.0
	10,203.2		668.3		—		175.3		(711.2)		10,335.6
Selling, general and administrative expense	1,004.9		45.8		263.2		41.4		5.7		1,361.0
Other (income) expense	(7.9)		(1.6)		(16.7)		(9.8)		11.2		(24.8)
Income before income taxes	$	2,985.9	$	116.7	$	159.9	$	172.5	$	(54.4)	$	3,380.6
Summary Cash Flow Information
Depreciation and amortization	$	30.9	$	1.3	$	0.9	$	0.2	$	6.0	$	39.3
Cash provided by (used in) operating activities	$	(416.2)	$	76.6	$	(63.0)	$	(409.1)	$	(22.9)	$	(834.6)

______________

(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 March 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	6,170.4	$	—	$	—	$	—	$	—	$	6,170.4
Land/lot sales and other	15.4		287.1		—		—		(251.1)		51.4
Financial services	—		—		225.1		—		—		225.1
	6,185.8		287.1		225.1		—		(251.1)		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	467.6		16.3		123.7		11.6		2.3		621.5
Other (income) expense	(1.8)		(0.6)		(6.3)		(5.2)		8.5		(5.4)
Income before income taxes	$	1,052.1	$	37.6	$	107.7	$	(6.4)	$	(11.1)	$	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 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.

	Six Months Ended March 31, 2021
	Homebuilding		Forestar (1)		Financial Services		Rental		Eliminations and Other (2)		Consolidated
	(In millions)
Revenues
Home sales	$	11,869.1	$	—	$	—	$	—	$	—	$	11,869.1
Land/lot sales and other	33.3		594.2		—		—		(528.6)		98.9
Rental property sales	—		—		—		31.8		(31.8)		—
Financial services	—		—		412.3		—		—		412.3
	11,902.4		594.2		412.3		31.8		(560.4)		12,380.3
Cost of sales
Home sales (3)	8,977.1		—		—		—		(63.3)		8,913.8
Land/lot sales and other	26.3		495.8		—		—		(464.5)		57.6
Rental property sales	—		—		—		17.8		(17.8)		—
Inventory and land option charges	11.2		0.9		—		—		—		12.1
	9,014.6		496.7		—		17.8		(545.6)		8,983.5
Selling, general and administrative expense	917.0		31.8		233.3		20.9		4.4		1,207.4
Gain on sale of assets	—		—		—		—		(14.0)		(14.0)
Other (income) expense	(3.9)		(1.1)		(12.8)		(9.1)		16.1		(10.8)
Income before income taxes	$	1,974.7	$	66.8	$	191.8	$	2.2	$	(21.3)	$	2,214.2
Summary Cash Flow Information
Depreciation and amortization	$	32.0	$	1.5	$	0.8	$	5.1	$	4.7	$	44.1
Cash provided by (used in) operating activities	$	190.5	$	(249.5)	$	(32.3)	$	(216.7)	$	153.1	$	(154.9)

______________

(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)	March 31, 2022		September 30, 2021
	(In millions)
Northwest	$	1,567.0	$	1,307.5
Southwest	2,885.8		2,445.6
South Central	4,084.4		3,479.3
Southeast	3,804.2		3,178.6
East	2,434.3		1,919.6
North	1,663.8		1,368.9
Corporate and unallocated (2)	206.4		208.3
	$	16,645.9	$	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 March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
	(In millions)
Revenues
Northwest	$	637.0	$	548.5	$	1,205.9	$	1,096.5
Southwest	1,135.1		912.9		2,046.7		1,751.5
South Central	1,838.4		1,384.7		3,532.7		2,748.2
Southeast	1,946.5		1,720.7		3,757.5		3,185.7
East	1,219.5		1,070.9		2,294.3		2,078.6
North	730.3		548.1		1,349.0		1,041.9
	$	7,506.8	$	6,185.8	$	14,186.1	$	11,902.4
Income before Income Taxes
Northwest	$	148.2	$	93.9	$	260.0	$	180.7
Southwest	226.6		130.5		385.9		245.7
South Central	416.0		251.9		770.3		491.9
Southeast	482.2		317.2		897.7		564.4
East	265.9		185.2		468.2		355.9
North	113.9		73.4		203.8		136.1
	$	1,652.8	$	1,052.1	$	2,985.9	$	1,974.7