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Segment Information
 6 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company is a national homebuilder that is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 119 markets across 33 states. The Company’s operating segments are its 84 homebuilding divisions, its rental operations, its majority-owned Forestar residential lot development operations, its financial services operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its rental operations segment, its Forestar lot development segment and its financial services segment.

Homebuilding

The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows:
Northwest:Colorado, Oregon, Utah and Washington
Southwest:Arizona, California, Hawaii, Nevada and New Mexico
South Central:Arkansas, Oklahoma and Texas
Southeast:Alabama, Florida, Louisiana and Mississippi
East:Georgia, North Carolina, South Carolina and Tennessee
North:Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Nebraska,
New Jersey, Ohio, Pennsylvania, Virginia and West Virginia

The Company’s homebuilding divisions design, build and sell single-family detached homes on lots they develop and on fully developed lots purchased ready for home construction. To a lesser extent, the homebuilding divisions also build and sell attached homes, such as townhomes, duplexes and triplexes. Most of the revenue generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots.

Rental

The Company’s rental segment consists of single-family and multi-family rental operations. The single-family rental operations primarily construct and lease single-family homes within a community and then market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties.

Forestar

The Forestar segment is a residential lot development company with operations in 57 markets across 23 states. The Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance.

Financial Services

The Company’s financial services segment provides mortgage financing, title agency services and title insurance to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages, collecting premiums and fees for escrow closing services and collecting premiums for title insurance. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers.

Other

In addition to its homebuilding, rental, Forestar and financial services operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, owns water rights and other water-related assets and owns non-residential real estate including ranch land and improvements. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented in the Eliminations and Other column in the tables that follow.
The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2023. Financial information relating to the Company’s reporting segments is as follows:

March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents$2,192.6 $117.0 $416.2 $315.2 $22.1 $3,063.1 
Restricted cash6.7 2.5 — 21.1 — 30.3 
Inventories:
Construction in progress and finished homes9,847.5 — — — (139.0)9,708.5 
Residential land and lots — developed and under development10,053.1 — 1,981.1 — (144.3)11,889.9 
Land held for development20.4 — 134.8 — — 155.2 
Land held for sale8.8 — — — — 8.8 
Rental properties— 3,092.8 — — (15.2)3,077.6 

19,929.8 3,092.8 2,115.9 — (298.5)24,840.0 
Mortgage loans held for sale— — — 2,672.4 — 2,672.4 
Deferred income taxes, net209.1 (19.9)— — (22.7)166.5 
Property and equipment, net449.8 2.0 6.1 3.9 18.1 479.9 
Other assets2,630.1 33.6 60.5 200.7 57.6 2,982.5 
Goodwill134.3 — — — 29.2 163.5 
$25,552.4 $3,228.0 $2,598.7 $3,213.3 $(194.2)$34,398.2 
Liabilities
Accounts payable$1,120.0 $387.1 $61.7 $0.1 $(182.4)$1,386.5 
Accrued expenses and other liabilities2,434.5 36.4 358.3 227.8 (279.6)2,777.4 
Notes payable2,363.2 985.0 705.7 1,884.0 — 5,937.9 
$5,917.7 $1,408.5 $1,125.7 $2,111.9 $(462.0)$10,101.8 
______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
September 30, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents$2,920.2 $136.1 $616.0 $189.1 $12.2 $3,873.6 
Restricted cash6.5 3.3 — 16.7 — 26.5 
Inventories:
Construction in progress and finished homes9,134.3 — — — (132.9)9,001.4 
Residential land and lots — developed and under development8,992.3 — 1,760.8 — (131.2)10,621.9 
Land held for development20.5 — 29.5 — — 50.0 
Land held for sale8.7 — — — — 8.7 
Rental properties— 2,708.4 — — (17.1)2,691.3 

18,155.8 2,708.4 1,790.3 — (281.2)22,373.3 
Mortgage loans held for sale— — — 2,519.9 — 2,519.9 
Deferred income taxes, net229.8 (19.9)— — (22.7)187.2 
Property and equipment, net415.0 2.4 5.9 4.1 18.0 445.4 
Other assets2,838.5 29.8 58.5 250.3 (184.1)2,993.0 
Goodwill134.3 — — — 29.2 163.5 
$24,700.1 $2,860.1 $2,470.7 $2,980.1 $(428.6)$32,582.4 
Liabilities
Accounts payable$1,033.7 $698.6 $68.4 $0.1 $(554.6)$1,246.2 
Accrued expenses and other liabilities2,585.5 43.2 337.4 280.4 (142.7)3,103.8 
Notes payable2,329.9 400.0 695.0 1,669.6 — 5,094.5 
$5,949.1 $1,141.8 $1,100.8 $1,950.1 $(697.3)$9,444.5 
______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
Three Months Ended March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$8,466.7 $— $— $— $— $8,466.7 
Land/lot sales and other6.9 — 333.8 — (297.1)43.6 
Rental property sales— 371.3 — — — 371.3 
Financial services— — — 225.6 — 225.6 
8,473.6 371.3 333.8 225.6 (297.1)9,107.2 
Cost of sales
Home sales (2)6,505.6 — — — (68.3)6,437.3 
Land/lot sales and other4.2 — 250.5 — (234.1)20.6 
Rental property sales— 302.8 — — — 302.8 
Inventory and land option charges13.1 0.3 0.2 — — 13.6 
6,522.9 303.1 250.7 — (302.4)6,774.3 
Selling, general and administrative expense614.1 61.4 29.2 171.2 4.7 880.6 
Other (income) expense(21.0)(26.5)(5.0)(23.6)(0.1)(76.2)
Income before income taxes$1,357.6 $33.3 $58.9 $78.0 $0.7 $1,528.5 
______________
(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.
Six Months Ended March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$15,743.1 $— $— $— $— $15,743.1 
Land/lot sales and other27.2 — 639.7 — (561.6)105.3 
Rental property sales— 566.5 — — — 566.5 
Financial services— — — 418.2 — 418.2 
15,770.3 566.5 639.7 418.2 (561.6)16,833.1 
Cost of sales
Home sales (2)12,113.6 — — — (122.5)11,991.1 
Land/lot sales and other17.3 — 483.4 — (456.7)44.0 
Rental property sales— 444.1 — — (4.8)439.3 
Inventory and land option charges18.6 0.6 0.4 — — 19.6 
12,149.5 444.7 483.8 — (584.0)12,494.0 
Selling, general and administrative expense1,217.5 108.8 57.2 322.7 9.4 1,715.6 
Other (income) expense(50.4)(51.6)(11.4)(48.5)9.4 (152.5)
Income before income taxes$2,453.7 $64.6 $110.1 $144.0 $3.6 $2,776.0 
Summary Cash Flow Information
Depreciation and amortization$37.2 $1.3 $1.4 $0.9 $0.3 $41.1 
Cash provided by (used in) operating activities$408.3 $(653.9)$(216.0)$(40.7)$32.2 $(470.1)
______________
(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.
Three Months Ended March 31, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$7,449.7 $— $— $— $— $7,449.7 
Land/lot sales and other19.9 — 301.5 — (238.7)82.7 
Rental property sales— 224.1 — — — 224.1 
Financial services— — — 216.4 — 216.4 
7,469.6 224.1 301.5 216.4 (238.7)7,972.9 
Cost of sales
Home sales (2)5,843.0 — — — (61.8)5,781.2 
Land/lot sales and other13.4 — 225.3 — (204.3)34.4 
Rental property sales— 157.6 — — (0.8)156.8 
Inventory and land option charges14.2 0.4 20.3 — (11.1)23.8 
5,870.6 158.0 245.6 — (278.0)5,996.2 
Selling, general and administrative expense545.6 53.5 22.0 146.9 5.6 773.6 
Other (income) expense(14.5)(22.0)(2.0)(16.1)12.4 (42.2)
Income before income taxes$1,067.9 $34.6 $35.9 $85.6 $21.3 $1,245.3 
______________
(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.
Six Months Ended March 31, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$14,158.9 $— $— $— $— $14,158.9 
Land/lot sales and other54.7 — 518.2 — (406.2)166.7 
Rental property sales— 551.6 — — — 551.6 
Financial services— — — 353.4 — 353.4 
14,213.6 551.6 518.2 353.4 (406.2)15,230.6 
Cost of sales
Home sales (2)10,949.7 — — — (110.9)10,838.8 
Land/lot sales and other18.3 — 392.1 — (352.1)58.3 
Rental property sales— 341.4 — — (2.4)339.0 
Inventory and land option charges38.4 1.4 22.7 — (11.1)51.4 
11,006.4 342.8 414.8 — (476.5)11,287.5 
Selling, general and administrative expense1,072.6 101.0 44.9 281.0 11.0 1,510.5 
Other (income) expense(27.7)(37.1)(5.3)(31.4)21.6 (79.9)
Income before income taxes$2,162.3 $144.9 $63.8 $103.8 $37.7 $2,512.5 
Summary Cash Flow Information
Depreciation and amortization$30.7 $1.0 $1.5 $1.1 $12.2 $46.5 
Cash provided by (used in) operating activities$1,456.4 $(263.3)$21.3 $232.2 $27.0 $1,473.6 
______________
(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.
Homebuilding Inventories by Reporting Segment (1)
March 31,
2024		September 30,
2023
 (In millions)
Northwest$1,972.1 $1,907.5 
Southwest3,274.0 3,133.0 
South Central4,085.6 3,810.5 
Southeast4,378.5 3,958.5 
East3,597.6 3,024.7 
North2,363.5 2,078.0 
Corporate and unallocated (2)258.5 243.6 
$19,929.8 $18,155.8 
____________________________

(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 SegmentThree Months Ended
March 31,		Six Months Ended
March 31,
 2024202320242023
 (In millions)
Revenues
Northwest$742.1 $691.1 $1,320.0 $1,211.5 
Southwest1,283.4 920.9 2,334.8 1,723.9 
South Central1,961.1 1,805.8 3,630.3 3,447.9 
Southeast2,185.8 2,106.1 4,185.4 4,102.4 
East1,441.8 1,206.9 2,710.1 2,350.8 
North859.4 738.8 1,589.7 1,377.1 
$8,473.6 $7,469.6 $15,770.3 $14,213.6 
Income before Income Taxes
Northwest$109.3 $96.4 $178.8 $155.0 
Southwest171.0 81.7 305.9 165.7 
South Central346.6 267.9 618.2 549.5 
Southeast361.5 381.7 690.9 793.0 
East254.5 183.5 459.1 373.0 
North114.7 56.7 200.8 126.1 
$1,357.6 $1,067.9 $2,453.7 $2,162.3