Segment Information (Tables)

9 Months Ended

Jun. 30, 2023

Schedule of segment reporting information, by segment

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


	June 30, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,550.0	$	401.0	$	253.0	$	133.4	$	41.7	$	3,379.1
Restricted cash	9.9		—		15.4		3.6		—		28.9
Inventories:
Construction in progress and finished homes	9,492.8		—		—		—		(140.0)		9,352.8
Residential land and lots — developed and under development	8,456.6		1,867.0		—		—		(83.1)		10,240.5
Land held for development	20.5		42.1		—		—		—		62.6
Land held for sale	8.4		—		—		—		—		8.4
Rental properties	—		—		—		3,341.9		(22.7)		3,319.2
	17,978.3		1,909.1		—		3,341.9		(245.8)		22,983.5
Mortgage loans held for sale	—		—		2,414.4		—		—		2,414.4
Deferred income taxes, net	125.6		—		—		(7.1)		3.3		121.8
Property and equipment, net	393.3		5.7		3.9		2.5		19.9		425.3
Other assets	2,648.8		59.7		196.8		40.3		(139.0)		2,806.6
Goodwill	134.3		—		—		—		29.2		163.5
	$	23,840.2	$	2,375.5	$	2,883.5	$	3,514.6	$	(290.7)	$	32,323.1
Liabilities
Accounts payable	$	1,133.8	$	68.6	$	—	$	703.4	$	(536.3)	$	1,369.5
Accrued expenses and other liabilities	2,381.2		303.1		190.1		34.5		(142.9)		2,766.0
Notes payable	2,712.5		707.2		1,685.6		1,000.0		—		6,105.3
	$	6,227.5	$	1,078.9	$	1,875.7	$	1,737.9	$	(679.2)	$	10,240.8

______________

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


	September 30, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Assets
Cash and cash equivalents	$	2,040.7	$	264.8	$	103.3	$	109.9	$	21.8	$	2,540.5
Restricted cash	11.3		—		19.7		1.4		—		32.4
Inventories:
Construction in progress and finished homes	9,951.5		—		—		—		(153.3)		9,798.2
Residential land and lots — developed and under development	7,322.5		1,932.6		—		—		(82.0)		9,173.1
Land held for development	21.0		89.8		—		—		—		110.8
Land held for sale	29.4		—		—		—		—		29.4
Rental properties	—		—		—		2,572.1		(27.9)		2,544.2
	17,324.4		2,022.4		—		2,572.1		(263.2)		21,655.7
Mortgage loans held for sale	—		—		2,386.0		—		—		2,386.0
Deferred income taxes, net	146.3		—		—		(7.1)		1.9		141.1
Property and equipment, net	361.8		5.7		4.3		2.0		97.8		471.6
Other assets	2,266.5		50.1		492.5		18.4		132.8		2,960.3
Goodwill	134.3		—		—		—		29.2		163.5
	$	22,285.3	$	2,343.0	$	3,005.8	$	2,696.7	$	20.3	$	30,351.1
Liabilities
Accounts payable	$	1,149.1	$	72.2	$	0.2	$	233.6	$	(94.8)	$	1,360.3
Accrued expenses and other liabilities	2,365.7		365.4		596.2		25.0		(214.0)		3,138.3
Notes payable	2,942.6		706.0		1,618.3		800.0		—		6,066.9
	$	6,457.4	$	1,143.6	$	2,214.7	$	1,058.6	$	(308.8)	$	10,565.5

______________

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


	Three Months Ended June 30, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	8,703.1	$	—	$	—	$	—	$	—	$	8,703.1
Land/lot sales and other	30.5		368.9		—		—		(272.5)		126.9
Rental property sales	—		—		—		667.1		—		667.1
Financial services	—		—		228.5		—		—		228.5
	8,733.6		368.9		228.5		667.1		(272.5)		9,725.6
Cost of sales
Home sales (2)	6,675.6		—		—		—		(69.6)		6,606.0
Land/lot sales and other	26.1		283.0		—		—		(238.2)		70.9
Rental property sales	—		—		—		458.0		(3.9)		454.1
Inventory and land option charges	9.0		0.9		—		0.9		—		10.8
	6,710.7		283.9		—		458.9		(311.7)		7,141.8
Selling, general and administrative expense	584.9		26.4		154.7		80.0		6.1		852.1
Other (income) expense	(26.4)		(3.8)		(20.3)		(33.9)		32.2		(52.2)
Income before income taxes	$	1,464.4	$	62.4	$	94.1	$	162.1	$	0.9	$	1,783.9

______________

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

(2)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.


	Nine Months Ended June 30, 2023
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	22,862.0	$	—	$	—	$	—	$	—	$	22,862.0
Land/lot sales and other	85.2		887.1		—		—		(678.5)		293.8
Rental property sales	—		—		—		1,218.6		—		1,218.6
Financial services	—		—		582.0		—		—		582.0
	22,947.2		887.1		582.0		1,218.6		(678.5)		24,956.4
Cost of sales
Home sales (2)	17,625.3		—		—		—		(180.4)		17,444.9
Land/lot sales and other	44.4		675.1		—		—		(590.1)		129.4
Rental property sales	—		—		—		799.2		(6.4)		792.8
Inventory and land option charges	47.4		23.6		—		2.3		(11.1)		62.2
	17,717.1		698.7		—		801.5		(788.0)		18,429.3
Selling, general and administrative expense	1,657.5		71.3		435.7		181.0		17.1		2,362.6
Other (income) expense	(54.1)		(9.1)		(51.6)		(70.9)		53.8		(131.9)
Income before income taxes	$	3,626.7	$	126.2	$	197.9	$	307.0	$	38.6	$	4,296.4

Summary Cash Flow Information
Depreciation and amortization	$	47.1	$	2.2	$	1.6	$	1.7	$	17.6	$	70.2
Cash provided by (used in) operating activities	$	2,133.1	$	136.1	$	13.9	$	(78.1)	$	56.1	$	2,261.1

______________

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


	Three Months Ended June 30, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	8,336.4	$	—	$	—	$	—	$	—	$	8,336.4
Land/lot sales and other	11.4		308.5		—		—		(232.2)		87.7
Rental property sales	—		—		—		109.7		—		109.7
Financial services	—		—		254.3		—		—		254.3
	8,347.8		308.5		254.3		109.7		(232.2)		8,788.1
Cost of sales
Home sales (2)	5,826.8		—		—		—		(52.5)		5,774.3
Land/lot sales and other	7.3		233.6		—		—		(197.4)		43.5
Rental property sales	—		—		—		50.9		—		50.9
Inventory and land option charges	9.5		1.0		—		0.1		—		10.6
	5,843.6		234.6		—		51.0		(249.9)		5,879.3
Selling, general and administrative expense	553.2		24.1		137.3		22.8		3.2		740.6
Other (income) expense	(3.7)		(2.9)		(11.3)		(6.7)		9.5		(15.1)
Income before income taxes	$	1,954.7	$	52.7	$	128.3	$	42.6	$	5.0	$	2,183.3

______________

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


	Nine Months Ended June 30, 2022
	Homebuilding		Forestar		Financial Services		Rental		Eliminations and Other (1)		Consolidated
	(In millions)
Revenues
Home sales	$	22,492.0	$	—	$	—	$	—	$	—	$	22,492.0
Land/lot sales and other	42.0		1,137.7		—		—		(981.0)		198.7
Rental property sales	—		—		—		489.1		—		489.1
Financial services	—		—		660.8		—		—		660.8
	22,534.0		1,137.7		660.8		489.1		(981.0)		23,840.6
Cost of sales
Home sales (2)	15,996.0		—		—		—		(133.9)		15,862.1
Land/lot sales and other	27.7		895.9		—		—		(822.1)		101.5
Rental property sales	—		—		—		225.8		(5.1)		220.7
Inventory and land option charges	23.2		7.0		—		0.4		—		30.6
	16,046.9		902.9		—		226.2		(961.1)		16,214.9
Selling, general and administrative expense	1,558.1		69.9		400.6		64.2		8.8		2,101.6
Other (income) expense	(11.6)		(4.5)		(28.0)		(16.4)		20.7		(39.8)
Income before income taxes	$	4,940.6	$	169.4	$	288.2	$	215.1	$	(49.4)	$	5,563.9

Summary Cash Flow Information
Depreciation and amortization	$	47.0	$	2.0	$	1.4	$	0.5	$	9.3	$	60.2
Cash provided by (used in) operating activities	$	124.5	$	(10.2)	$	150.1	$	(826.4)	$	(0.8)	$	(562.8)

______________

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


Homebuilding Inventories by Reporting Segment (1)	June 30, 2023		September 30, 2022
	(In millions)
Northwest	$	1,894.4	$	1,802.2
Southwest	3,146.0		2,801.7
South Central	3,838.9		3,931.7
Southeast	3,973.4		4,091.1
East	2,895.6		2,542.7
North	1,996.4		1,935.7
Corporate and unallocated (2)	233.6		219.3
	$	17,978.3	$	17,324.4

____________________________

(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 June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
	(In millions)
Revenues
Northwest	$	661.1	$	674.0	$	1,872.6	$	1,879.9
Southwest	1,134.3		1,289.2		2,858.3		3,335.9
South Central	2,175.0		2,080.4		5,622.8		5,613.1
Southeast	2,384.5		2,118.9		6,486.9		5,876.4
East	1,464.4		1,385.8		3,815.2		3,680.1
North	914.3		799.5		2,291.4		2,148.6
	$	8,733.6	$	8,347.8	$	22,947.2	$	22,534.0
Income before Income Taxes
Northwest	$	105.6	$	161.0	$	260.6	$	421.0
Southwest	131.2		288.3		296.9		674.2
South Central	407.2		527.2		956.8		1,297.5
Southeast	459.8		532.4		1,252.8		1,430.1
East	262.0		309.9		634.9		778.1
North	98.6		135.9		224.7		339.7
	$	1,464.4	$	1,954.7	$	3,626.7	$	4,940.6