QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-2386963 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
1341 Horton Circle Arlington, Texas 76011 | |||
(Address of principal executive offices) (Zip Code) | |||
(817) 390-8200 | |||
(Registrant’s telephone number, including area code) | |||
Not Applicable | |||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer ý | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | Emerging growth company ¨ |
Page | |
March 31, 2019 | September 30, 2018 | ||||||
(In millions) (Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 698.8 | $ | 1,473.1 | |||
Restricted cash | 32.4 | 32.9 | |||||
Total cash, cash equivalents and restricted cash | 731.2 | 1,506.0 | |||||
Inventories: | |||||||
Construction in progress and finished homes | 6,087.6 | 5,086.3 | |||||
Residential land and lots — developed and under development | 5,672.9 | 5,172.4 | |||||
Land held for development | 110.8 | 96.1 | |||||
Land held for sale | 49.0 | 40.2 | |||||
Total inventory | 11,920.3 | 10,395.0 | |||||
Mortgage loans held for sale | 796.5 | 796.4 | |||||
Deferred income taxes, net of valuation allowance of $17.0 million and $17.7 million at March 31, 2019 and September 30, 2018, respectively | 171.9 | 194.0 | |||||
Property and equipment, net | 437.9 | 401.1 | |||||
Other assets | 785.7 | 712.9 | |||||
Goodwill | 163.5 | 109.2 | |||||
Total assets | $ | 15,007.0 | $ | 14,114.6 | |||
LIABILITIES | |||||||
Accounts payable | $ | 658.5 | $ | 624.7 | |||
Accrued expenses and other liabilities | 1,192.1 | 1,127.5 | |||||
Notes payable | 3,622.4 | 3,203.5 | |||||
Total liabilities | 5,473.0 | 4,955.7 | |||||
Commitments and contingencies (Note K) | |||||||
EQUITY | |||||||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued | — | — | |||||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 391,091,572 shares issued and 373,132,964 shares outstanding at March 31, 2019 and 388,120,243 shares issued and 376,261,635 shares outstanding at September 30, 2018 | 3.9 | 3.9 | |||||
Additional paid-in capital | 3,123.4 | 3,085.0 | |||||
Retained earnings | 6,771.6 | 6,217.9 | |||||
Treasury stock, 17,958,608 shares and 11,858,608 shares at March 31, 2019 and September 30, 2018, respectively, at cost | (538.6 | ) | (322.4 | ) | |||
Stockholders’ equity | 9,360.3 | 8,984.4 | |||||
Noncontrolling interests | 173.7 | 174.5 | |||||
Total equity | 9,534.0 | 9,158.9 | |||||
Total liabilities and equity | $ | 15,007.0 | $ | 14,114.6 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions, except per share data) (Unaudited) | |||||||||||||||
Revenues | $ | 4,128.7 | $ | 3,794.7 | $ | 7,647.7 | $ | 7,127.6 | |||||||
Cost of sales | 3,256.7 | 2,961.6 | 6,007.8 | 5,541.8 | |||||||||||
Selling, general and administrative expense | 444.2 | 400.9 | 847.0 | 785.1 | |||||||||||
Gain on sale of assets | (29.3 | ) | (1.1 | ) | (31.3 | ) | (14.5 | ) | |||||||
Other (income) expense | (5.7 | ) | (11.5 | ) | (14.3 | ) | (20.9 | ) | |||||||
Income before income taxes | 462.8 | 444.8 | 838.5 | 836.1 | |||||||||||
Income tax expense | 108.4 | 94.0 | 197.4 | 296.4 | |||||||||||
Net income | 354.4 | 350.8 | 641.1 | 539.7 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 3.1 | (0.2 | ) | 2.7 | (0.6 | ) | |||||||||
Net income attributable to D.R. Horton, Inc. | $ | 351.3 | $ | 351.0 | $ | 638.4 | $ | 540.3 | |||||||
Basic net income per common share attributable to D.R. Horton, Inc. | $ | 0.94 | $ | 0.93 | $ | 1.71 | $ | 1.44 | |||||||
Weighted average number of common shares | 373.3 | 376.8 | 374.2 | 376.3 | |||||||||||
Diluted net income per common share attributable to D.R. Horton, Inc. | $ | 0.93 | $ | 0.91 | $ | 1.68 | $ | 1.41 | |||||||
Adjusted weighted average number of common shares | 377.7 | 383.9 | 378.9 | 383.8 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||
(In millions, except common stock share data) (Unaudited) | |||||||||||||||||||||||
Balances at September 30, 2018 (376,261,635 shares) | $ | 3.9 | $ | 3,085.0 | $ | 6,217.9 | $ | (322.4 | ) | $ | 174.5 | $ | 9,158.9 | ||||||||||
Cumulative effect of adoption of ASC 606 (see Note A) | — | — | 27.1 | — | — | 27.1 | |||||||||||||||||
Net income | — | — | 287.2 | — | (0.5 | ) | 286.7 | ||||||||||||||||
Exercise of stock options (806,817 shares) | — | 8.6 | — | — | — | 8.6 | |||||||||||||||||
Stock issued under employee benefit plans (273,608 shares) | — | — | — | — | — | — | |||||||||||||||||
Cash paid for shares withheld for taxes | — | (4.1 | ) | — | — | — | (4.1 | ) | |||||||||||||||
Stock-based compensation expense | — | 18.1 | — | — | — | 18.1 | |||||||||||||||||
Cash dividends declared ($0.15 per share) | — | — | (56.0 | ) | — | — | (56.0 | ) | |||||||||||||||
Repurchases of common stock (4,100,000 shares) | — | — | — | (140.6 | ) | — | (140.6 | ) | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (0.5 | ) | (0.5 | ) | |||||||||||||||
Balances at December 31, 2018 (373,242,060 shares) | $ | 3.9 | $ | 3,107.6 | $ | 6,476.2 | $ | (463.0 | ) | $ | 173.5 | $ | 9,298.2 | ||||||||||
Net income | — | — | 351.3 | — | 3.1 | 354.4 | |||||||||||||||||
Exercise of stock options (831,489 shares) | — | 11.4 | — | — | — | 11.4 | |||||||||||||||||
Stock issued under employee benefit plans (1,059,415 shares) | — | 2.0 | — | — | 0.3 | 2.3 | |||||||||||||||||
Cash paid for shares withheld for taxes | — | (15.4 | ) | — | — | — | (15.4 | ) | |||||||||||||||
Stock-based compensation expense | — | 17.8 | — | — | — | 17.8 | |||||||||||||||||
Cash dividends declared ($0.15 per share) | — | — | (55.9 | ) | — | — | (55.9 | ) | |||||||||||||||
Repurchases of common stock (2,000,000 shares) | — | — | — | (75.6 | ) | — | (75.6 | ) | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (3.2 | ) | (3.2 | ) | |||||||||||||||
Balances at March 31, 2019 (373,132,964 shares) | $ | 3.9 | $ | 3,123.4 | $ | 6,771.6 | $ | (538.6 | ) | $ | 173.7 | $ | 9,534.0 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||
(In millions, except common stock share data) (Unaudited) | |||||||||||||||||||||||
Balances at September 30, 2017 (374,986,079 shares) | $ | 3.8 | $ | 2,992.2 | $ | 4,946.0 | $ | (194.9 | ) | $ | 0.5 | $ | 7,747.6 | ||||||||||
Noncontrolling interests acquired | — | — | — | — | 175.2 | 175.2 | |||||||||||||||||
Net income | — | — | 189.3 | — | (0.5 | ) | 188.8 | ||||||||||||||||
Exercise of stock options (916,913 shares) | 0.1 | 14.7 | — | — | — | 14.8 | |||||||||||||||||
Stock issued under employee benefit plans (290,974 shares) | — | — | — | — | — | — | |||||||||||||||||
Cash paid for shares withheld for taxes | — | (10.3 | ) | — | — | — | (10.3 | ) | |||||||||||||||
Stock-based compensation expense | — | 13.6 | — | — | — | 13.6 | |||||||||||||||||
Cash dividends declared ($0.125 per share) | — | — | (47.1 | ) | — | — | (47.1 | ) | |||||||||||||||
Repurchases of common stock (500,000 shares) | — | — | — | (25.4 | ) | — | (25.4 | ) | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (1.8 | ) | (1.8 | ) | |||||||||||||||
Balances at December 31, 2017 (375,693,966 shares) | $ | 3.9 | $ | 3,010.2 | $ | 5,088.2 | $ | (220.3 | ) | $ | 173.4 | $ | 8,055.4 | ||||||||||
Net income | — | — | 351.0 | — | (0.2 | ) | 350.8 | ||||||||||||||||
Exercise of stock options (1,046,210 shares) | — | 16.3 | — | — | — | 16.3 | |||||||||||||||||
Stock issued under employee benefit plans (1,169,341 shares) | — | 1.8 | — | — | — | 1.8 | |||||||||||||||||
Stock-based compensation expense | — | 17.4 | — | — | — | 17.4 | |||||||||||||||||
Cash dividends declared ($0.125 per share) | — | — | (47.1 | ) | — | — | (47.1 | ) | |||||||||||||||
Repurchases of common stock (500,000 shares) | — | — | — | (22.5 | ) | — | (22.5 | ) | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (0.2 | ) | (0.2 | ) | |||||||||||||||
Balances at March 31, 2018 (377,409,517 shares) | $ | 3.9 | $ | 3,045.7 | $ | 5,392.1 | $ | (242.8 | ) | $ | 173.0 | $ | 8,371.9 |
Six Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In millions) (Unaudited) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 641.1 | $ | 539.7 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 34.1 | 33.1 | |||||
Amortization of discounts and fees | 5.1 | 2.4 | |||||
Stock-based compensation expense | 35.9 | 31.0 | |||||
Equity in earnings of unconsolidated entities | (0.5 | ) | (2.7 | ) | |||
Distributions of earnings of unconsolidated entities | 0.5 | 0.2 | |||||
Deferred income taxes | 12.6 | 145.0 | |||||
Inventory and land option charges | 21.8 | 33.8 | |||||
Gain on sale of assets | (31.3 | ) | (14.5 | ) | |||
Changes in operating assets and liabilities: | |||||||
Increase in construction in progress and finished homes | (755.2 | ) | (514.5 | ) | |||
Increase in residential land and lots – developed, under development, held for development and held for sale | (445.6 | ) | (271.5 | ) | |||
(Increase) decrease in other assets | (39.9 | ) | 4.4 | ||||
Increase in mortgage loans held for sale | — | (70.7 | ) | ||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 59.7 | (14.5 | ) | ||||
Net cash used in operating activities | (461.7 | ) | (98.8 | ) | |||
INVESTING ACTIVITIES | |||||||
Expenditures for property and equipment | (69.8 | ) | (39.5 | ) | |||
Proceeds from sale of assets | 83.8 | 253.4 | |||||
Expenditures related to multi-family rental properties | (28.3 | ) | (39.5 | ) | |||
Return of investment in unconsolidated entities | 4.4 | 15.1 | |||||
Net principal increase of other mortgage loans and real estate owned | (1.6 | ) | — | ||||
Payments related to business acquisitions, net of cash acquired | (309.6 | ) | (158.1 | ) | |||
Net cash (used in) provided by investing activities | (321.1 | ) | 31.4 | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 1,815.0 | 1,913.6 | |||||
Repayment of notes payable | (1,531.0 | ) | (1,752.5 | ) | |||
Advances on mortgage repurchase facility, net | 53.0 | 69.8 | |||||
Proceeds from stock associated with certain employee benefit plans | 22.3 | 32.7 | |||||
Cash paid for shares withheld for taxes | (19.5 | ) | (10.3 | ) | |||
Cash dividends paid | (111.9 | ) | (94.1 | ) | |||
Repurchases of common stock | (216.2 | ) | (47.9 | ) | |||
Distributions to noncontrolling interests, net | (3.7 | ) | (2.0 | ) | |||
Net cash provided by financing activities | 8.0 | 109.3 | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (774.8 | ) | 41.9 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 1,506.0 | 1,024.3 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 731.2 | $ | 1,066.2 | |||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | |||||||
Notes payable issued for inventory | $ | 80.8 | $ | — | |||
Stock issued under employee incentive plans | $ | 49.0 | $ | 63.4 | |||
Accrual for holdback payment related to acquisition | $ | 16.3 | $ | — |
Inventories | $ | 265.5 | |
Other assets | 23.3 | ||
Goodwill | 54.3 | ||
Intangible assets | 8.6 | ||
Other liabilities | (25.8 | ) | |
Net assets acquired | $ | 325.9 |
East: | Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia | ||
Midwest: | Colorado, Illinois, Indiana, Iowa, Minnesota and Ohio | ||
Southeast: | Alabama, Florida, Georgia, Mississippi and Tennessee | ||
South Central: | Louisiana, Oklahoma and Texas | ||
Southwest: | Arizona and New Mexico | ||
West: | California, Hawaii, Nevada, Oregon, Utah and Washington |
March 31, 2019 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 557.3 | $ | 66.4 | $ | 61.1 | $ | 14.0 | $ | — | $ | — | $ | 698.8 | ||||||||||||||
Restricted cash | 9.4 | 15.7 | 7.3 | — | — | — | 32.4 | |||||||||||||||||||||
Inventories: | ||||||||||||||||||||||||||||
Construction in progress and finished homes | 6,086.1 | — | — | — | 1.5 | — | 6,087.6 | |||||||||||||||||||||
Residential land and lots — developed and under development | 4,879.4 | 803.0 | — | — | (22.1 | ) | 12.6 | 5,672.9 | ||||||||||||||||||||
Land held for development | 62.3 | 48.5 | — | — | — | — | 110.8 | |||||||||||||||||||||
Land held for sale | 49.0 | — | — | — | — | — | 49.0 | |||||||||||||||||||||
11,076.8 | 851.5 | — | — | (20.6 | ) | 12.6 | 11,920.3 | |||||||||||||||||||||
Mortgage loans held for sale | — | — | 796.5 | — | — | — | 796.5 | |||||||||||||||||||||
Deferred income taxes, net | 155.0 | 22.9 | — | — | 1.5 | (7.5 | ) | 171.9 | ||||||||||||||||||||
Property and equipment, net | 220.2 | 2.4 | 3.4 | 211.9 | — | — | 437.9 | |||||||||||||||||||||
Other assets | 732.8 | 26.0 | 52.1 | 37.4 | (75.2 | ) | 12.6 | 785.7 | ||||||||||||||||||||
Goodwill | 134.3 | — | — | — | — | 29.2 | 163.5 | |||||||||||||||||||||
$ | 12,885.8 | $ | 984.9 | $ | 920.4 | $ | 263.3 | $ | (94.3 | ) | $ | 46.9 | $ | 15,007.0 | ||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Accounts payable | $ | 631.7 | $ | 16.1 | $ | 9.4 | $ | 3.0 | $ | (1.7 | ) | $ | — | $ | 658.5 | |||||||||||||
Accrued expenses and other liabilities | 1,102.2 | 131.9 | 43.8 | 10.9 | (83.3 | ) | (13.4 | ) | 1,192.1 | |||||||||||||||||||
Notes payable | 2,777.2 | 149.2 | 690.7 | — | — | 5.3 | 3,622.4 | |||||||||||||||||||||
$ | 4,511.1 | $ | 297.2 | $ | 743.9 | $ | 13.9 | $ | (85.0 | ) | $ | (8.1 | ) | $ | 5,473.0 |
(1) | Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
September 30, 2018 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,111.8 | $ | 318.8 | $ | 33.7 | $ | 8.8 | $ | — | $ | — | $ | 1,473.1 | ||||||||||||||
Restricted cash | 8.6 | 16.2 | 8.1 | — | — | — | 32.9 | |||||||||||||||||||||
Inventories: | ||||||||||||||||||||||||||||
Construction in progress and finished homes | 5,084.4 | — | — | — | 1.9 | — | 5,086.3 | |||||||||||||||||||||
Residential land and lots — developed and under development | 4,689.3 | 463.1 | — | — | (7.2 | ) | 27.2 | 5,172.4 | ||||||||||||||||||||
Land held for development | 61.2 | 34.9 | — | — | — | — | 96.1 | |||||||||||||||||||||
Land held for sale | 40.2 | — | — | — | — | — | 40.2 | |||||||||||||||||||||
9,875.1 | 498.0 | — | — | (5.3 | ) | 27.2 | 10,395.0 | |||||||||||||||||||||
Mortgage loans held for sale | — | — | 796.4 | — | — | — | 796.4 | |||||||||||||||||||||
Deferred income taxes, net | 176.5 | 26.9 | — | — | 1.1 | (10.5 | ) | 194.0 | ||||||||||||||||||||
Property and equipment, net | 207.1 | 1.8 | 3.0 | 189.2 | — | — | 401.1 | |||||||||||||||||||||
Other assets | 673.7 | 31.4 | 43.6 | 0.9 | (48.6 | ) | 11.9 | 712.9 | ||||||||||||||||||||
Goodwill | 80.0 | — | — | — | — | 29.2 | 109.2 | |||||||||||||||||||||
$ | 12,132.8 | $ | 893.1 | $ | 884.8 | $ | 198.9 | $ | (52.8 | ) | $ | 57.8 | $ | 14,114.6 | ||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Accounts payable | $ | 612.4 | $ | 11.2 | $ | 0.2 | $ | 4.2 | $ | (3.3 | ) | $ | — | $ | 624.7 | |||||||||||||
Accrued expenses and other liabilities | 1,041.3 | 95.7 | 41.9 | 9.9 | (46.1 | ) | (15.2 | ) | 1,127.5 | |||||||||||||||||||
Notes payable | 2,445.9 | 111.7 | 637.7 | — | — | 8.2 | 3,203.5 | |||||||||||||||||||||
$ | 4,099.6 | $ | 218.6 | $ | 679.8 | $ | 14.1 | $ | (49.4 | ) | $ | (7.0 | ) | $ | 4,955.7 |
(1) | Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Home sales | $ | 3,980.5 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,980.5 | ||||||||||||||
Land/lot sales and other | 14.9 | 65.4 | — | 6.0 | (39.7 | ) | — | 46.6 | ||||||||||||||||||||
Financial services | — | — | 101.6 | — | — | — | 101.6 | |||||||||||||||||||||
3,995.4 | 65.4 | 101.6 | 6.0 | (39.7 | ) | — | 4,128.7 | |||||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||||
Home sales (5) | 3,214.2 | — | — | — | (0.7 | ) | — | 3,213.5 | ||||||||||||||||||||
Land/lot sales and other | 9.3 | 43.7 | — | — | (31.8 | ) | 8.2 | 29.4 | ||||||||||||||||||||
Inventory and land option charges | 13.8 | — | — | — | — | — | 13.8 | |||||||||||||||||||||
3,237.3 | 43.7 | — | — | (32.5 | ) | 8.2 | 3,256.7 | |||||||||||||||||||||
Selling, general and administrative expense | 359.3 | 6.2 | 71.3 | 7.3 | — | 0.1 | 444.2 | |||||||||||||||||||||
Gain on sale of assets | — | — | — | (29.3 | ) | — | — | (29.3 | ) | |||||||||||||||||||
Other (income) expense | (1.6 | ) | (0.9 | ) | (3.7 | ) | 0.5 | — | — | (5.7 | ) | |||||||||||||||||
Income before income taxes | $ | 400.4 | $ | 16.4 | $ | 34.0 | $ | 27.5 | $ | (7.2 | ) | $ | (8.3 | ) | $ | 462.8 |
(1) | Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
(5) | Amount in the Eliminations 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, 2019 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Home sales | $ | 7,391.2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,391.2 | ||||||||||||||
Land/lot sales and other | 21.7 | 103.8 | — | 12.8 | (68.7 | ) | — | 69.6 | ||||||||||||||||||||
Financial services | — | — | 186.9 | — | — | — | 186.9 | |||||||||||||||||||||
7,412.9 | 103.8 | 186.9 | 12.8 | (68.7 | ) | — | 7,647.7 | |||||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||||
Home sales (5) | 5,943.4 | — | — | — | (1.7 | ) | — | 5,941.7 | ||||||||||||||||||||
Land/lot sales and other | 14.5 | 74.3 | — | — | (56.3 | ) | 11.8 | 44.3 | ||||||||||||||||||||
Inventory and land option charges | 21.8 | — | — | — | — | — | 21.8 | |||||||||||||||||||||
5,979.7 | 74.3 | — | — | (58.0 | ) | 11.8 | 6,007.8 | |||||||||||||||||||||
Selling, general and administrative expense | 683.9 | 11.9 | 137.0 | 13.9 | — | 0.3 | 847.0 | |||||||||||||||||||||
Gain on sale of assets | (2.0 | ) | (0.9 | ) | — | (29.3 | ) | — | 0.9 | (31.3 | ) | |||||||||||||||||
Other (income) expense | (3.5 | ) | (2.8 | ) | (7.7 | ) | (0.3 | ) | — | — | (14.3 | ) | ||||||||||||||||
Income before income taxes | $ | 754.8 | $ | 21.3 | $ | 57.6 | $ | 28.5 | $ | (10.7 | ) | $ | (13.0 | ) | $ | 838.5 | ||||||||||||
Summary Cash Flow Information: | ||||||||||||||||||||||||||||
Depreciation and amortization | $ | 30.1 | $ | 0.1 | $ | 0.7 | $ | 2.9 | $ | — | $ | 0.3 | $ | 34.1 | ||||||||||||||
Cash (used in) provided by operating activities | $ | (215.9 | ) | $ | (283.4 | ) | $ | 48.8 | $ | (4.1 | ) | $ | (2.7 | ) | $ | (4.4 | ) | $ | (461.7 | ) |
(1) | Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
(5) | Amount in the Eliminations 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, 2018 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Home sales | $ | 3,672.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,672.1 | ||||||||||||||
Land/lot sales and other | 13.6 | 22.6 | — | — | (8.5 | ) | — | 27.7 | ||||||||||||||||||||
Financial services | — | — | 94.9 | — | — | — | 94.9 | |||||||||||||||||||||
3,685.7 | 22.6 | 94.9 | — | (8.5 | ) | — | 3,794.7 | |||||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||||
Home sales | 2,907.5 | — | — | — | — | — | 2,907.5 | |||||||||||||||||||||
Land/lot sales and other | 12.0 | 16.2 | — | — | (6.7 | ) | 2.5 | 24.0 | ||||||||||||||||||||
Inventory and land option charges | 30.1 | — | — | — | — | — | 30.1 | |||||||||||||||||||||
2,949.6 | 16.2 | — | — | (6.7 | ) | 2.5 | 2,961.6 | |||||||||||||||||||||
Selling, general and administrative expense | 322.7 | 5.6 | 66.7 | 5.8 | — | 0.1 | 400.9 | |||||||||||||||||||||
Gain on sale of assets | — | (2.7 | ) | — | — | — | 1.6 | (1.1 | ) | |||||||||||||||||||
Interest expense | — | 2.1 | — | — | (2.1 | ) | — | — | ||||||||||||||||||||
Other (income) expense | (2.6 | ) | (3.2 | ) | (3.2 | ) | (3.6 | ) | — | 1.1 | (11.5 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 416.0 | $ | 4.6 | $ | 31.4 | $ | (2.2 | ) | $ | 0.3 | $ | (5.3 | ) | $ | 444.8 |
(1) | Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
Six Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
Homebuilding | Forestar (1) | Financial Services | Other (2) | Eliminations (3) | Other Adjustments (4) | Consolidated | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Home sales | $ | 6,856.6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,856.6 | ||||||||||||||
Land/lot sales and other | 50.0 | 53.5 | — | — | (8.5 | ) | — | 95.0 | ||||||||||||||||||||
Financial services | — | — | 176.0 | — | — | — | 176.0 | |||||||||||||||||||||
6,906.6 | 53.5 | 176.0 | — | (8.5 | ) | — | 7,127.6 | |||||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||||
Home sales | 5,429.0 | — | — | — | — | — | 5,429.0 | |||||||||||||||||||||
Land/lot sales and other | 43.3 | 35.5 | — | — | (6.7 | ) | 6.9 | 79.0 | ||||||||||||||||||||
Inventory and land option charges | 33.8 | — | — | — | — | — | 33.8 | |||||||||||||||||||||
5,506.1 | 35.5 | — | — | (6.7 | ) | 6.9 | 5,541.8 | |||||||||||||||||||||
Selling, general and administrative expense | 627.5 | 19.1 | 128.4 | 9.8 | — | 0.3 | 785.1 | |||||||||||||||||||||
Gain on sale of assets | (13.4 | ) | (2.7 | ) | — | — | — | 1.6 | (14.5 | ) | ||||||||||||||||||
Interest expense | — | 4.2 | — | — | (4.2 | ) | — | — | ||||||||||||||||||||
Other (income) expense | (3.4 | ) | (11.3 | ) | (6.1 | ) | (6.5 | ) | — | 6.4 | (20.9 | ) | ||||||||||||||||
Income (loss) before income taxes | $ | 789.8 | $ | 8.7 | $ | 53.7 | $ | (3.3 | ) | $ | 2.4 | $ | (15.2 | ) | $ | 836.1 | ||||||||||||
Summary Cash Flow Information: | ||||||||||||||||||||||||||||
Depreciation and amortization | $ | 26.3 | $ | 2.5 | $ | 0.7 | $ | 3.3 | $ | — | $ | 0.3 | $ | 33.1 | ||||||||||||||
Cash provided by (used in) operating activities | $ | 90.7 | $ | (150.2 | ) | $ | (30.7 | ) | $ | (0.5 | ) | $ | — | $ | (8.1 | ) | $ | (98.8 | ) |
(1) | Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column. |
(2) | Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting. |
(3) | Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory. |
(4) | Amounts represent purchase accounting adjustments related to the Forestar acquisition. |
Homebuilding Inventories by Reporting Segment (1) | March 31, 2019 | September 30, 2018 | ||||||
(In millions) | ||||||||
East | $ | 1,354.4 | $ | 1,192.0 | ||||
Midwest | 817.7 | 583.1 | ||||||
Southeast | 2,852.1 | 2,668.7 | ||||||
South Central | 2,720.6 | 2,439.4 | ||||||
Southwest | 628.1 | 499.7 | ||||||
West | 2,466.9 | 2,268.5 | ||||||
Corporate and unallocated (2) | 237.0 | 223.7 | ||||||
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