Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 10, 2021 | Mar. 31, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-33662 | ||
Entity Registrant Name | Forestar Group Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1336998 | ||
Entity Address, Address Line One | 2221 E. Lamar Blvd. | ||
Entity Address, Address Line Two | Suite 790 | ||
Entity Address, City or Town | Arlington | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76006 | ||
City Area Code | 817 | ||
Local Phone Number | 769-1860 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | FOR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 410 | ||
Entity Common Stock, Shares Outstanding | 49,588,389 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001406587 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 153.6 | $ 394.3 |
Real estate | 1,905.2 | 1,309.7 |
Investment in unconsolidated ventures | 0.9 | 3.6 |
Income taxes receivable | 0 | 6.3 |
Property and equipment, net | 2.9 | 1.1 |
Other Assets | 39.1 | 24.9 |
Total assets | 2,101.7 | 1,739.9 |
LIABILITIES | ||
Accounts payable | 47.4 | 29.2 |
Accrued development costs | 104.5 | 44.4 |
Earnest money on sales contracts | 148.3 | 98.3 |
Deferred tax liability, net | 24.4 | 5.7 |
Accrued expenses and other liabilities | 56.7 | 49.4 |
Debt | 704.5 | 641.1 |
Total liabilities | 1,085.8 | 868.1 |
Commitments and contingencies (Note 12) | ||
Forestar Group Inc. shareholders’ equity: | ||
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 49,580,389 and 48,061,921 shares issued and outstanding at September 30, 2021 and 2020, respectively | 49.6 | 48.1 |
Additional paid-in capital | 636.2 | 603.9 |
Retained earnings | 329.1 | 218.9 |
Stockholders' equity | 1,014.9 | 870.9 |
Noncontrolling interests | 1 | 0.9 |
Total equity | 1,015.9 | 871.8 |
Total liabilities and equity | $ 2,101.7 | $ 1,739.9 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 1,325.8 | $ 931.8 | $ 428.3 |
Cost of sales | 1,096.6 | 813.7 | 362.7 |
Selling, general and administrative expense | 68.4 | 45.7 | 28.9 |
Equity in earnings of unconsolidated ventures | (0.2) | (0.7) | (0.5) |
Gain on sale of assets | (2.5) | (0.1) | (3) |
Interest and other income | 1.2 | 4.9 | 5.5 |
Loss on extinguishment of debt | 18.1 | 0 | 0 |
Income before income taxes | 146.6 | 78.1 | 45.7 |
Income tax expense | (36.1) | (16.4) | (9.4) |
Net income | 110.5 | 61.7 | 36.3 |
Net income attributable to noncontrolling interests | 0.3 | 0.9 | 3.3 |
Net income attributable to Forestar Group Inc. | $ 110.2 | $ 60.8 | $ 33 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted average number of common shares | 48,901,987 | 48,037,018 | 41,974,429 |
Adjusted weighted average number of common shares | 48,975,661 | 48,094,111 | 42,005,141 |
Earnings Per Share, Basic [Abstract] | |||
Basic net income per common share attributable to Forestar Group Inc. | $ 2.25 | $ 1.26 | $ 0.79 |
Earnings Per Share, Diluted [Abstract] | |||
Diluted net income per common share attributable to Forestar Group Inc. | $ 2.25 | $ 1.26 | $ 0.79 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Sep. 30, 2018 | $ 674.5 | $ 41.9 | $ 506.3 | $ 125.1 | $ 1.2 |
Net income | 36.3 | 0 | 0 | 33 | 3.3 |
Stock Issued During Period, Value, New Issues | 100.7 | 6 | 94.7 | 0 | 0 |
Issuances of common stock, Value | 0 | 0.1 | 0.1 | 0 | 0 |
Stock-based compensation expense | 1.3 | 0 | 1.3 | 0 | 0 |
Distributions to noncontrolling interests | (3.9) | 0 | 0 | 0 | (3.9) |
Ending Balances at Sep. 30, 2019 | 808.9 | 48 | 602.2 | 158.1 | 0.6 |
Net income | 61.7 | 0 | 0 | 60.8 | 0.9 |
Issuances of common stock, Value | 0.1 | 0.1 | 0 | 0 | 0 |
Stock-based compensation expense | 2 | 0 | 2 | 0 | 0 |
Distributions to noncontrolling interests | (0.6) | 0 | 0 | 0 | (0.6) |
Cash paid for shares withheld for taxes | (0.3) | 0 | (0.3) | 0 | 0 |
Ending Balances at Sep. 30, 2020 | 871.8 | 48.1 | 603.9 | 218.9 | 0.9 |
Net income | 110.5 | 0 | 0 | 110.2 | 0.3 |
Stock Issued During Period, Value, New Issues | 33.4 | 1.4 | 32 | 0 | 0 |
Issuances of common stock, Value | 0.1 | 0.1 | 0 | 0 | 0 |
Purchase of noncontrolling interest, net | (1.8) | 0 | (1.7) | 0 | (0.1) |
Stock-based compensation expense | 2.6 | 0 | 2.6 | 0 | 0 |
Distributions to noncontrolling interests | (0.1) | 0 | 0 | 0 | (0.1) |
Cash paid for shares withheld for taxes | (0.6) | 0 | (0.6) | 0 | 0 |
Ending Balances at Sep. 30, 2021 | $ 1,015.9 | $ 49.6 | $ 636.2 | $ 329.1 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
OPERATING ACTIVITIES | |||
Net income | $ 110.5 | $ 61.7 | $ 36.3 |
Adjustments: | |||
Depreciation and amortization | 2.7 | 4.9 | 6.7 |
Deferred income taxes | 19.2 | 23.1 | 9.5 |
Equity in earnings of unconsolidated ventures | (0.2) | (0.7) | (0.5) |
Distributions of earnings of unconsolidated ventures | 0 | 0 | 4.9 |
Stock-based compensation expense | 2.6 | 2 | 1.3 |
Real estate and land option charges | 3 | 0.9 | 1.3 |
Loss on extinguishment of debt | (18.1) | 0 | 0 |
Gain on sale of assets | 2.5 | 0.1 | 3 |
Other | 0.1 | 0.1 | 0.1 |
Changes in operating assets and liabilities: | |||
Increase in real estate | (585.9) | (281.7) | (531.7) |
(Increase) decrease in other assets | (14.8) | (3.4) | 0.3 |
Increase in accounts payable and other accrued liabilities | 28 | 15 | 24.4 |
Increase in accrued development costs | 60.1 | 9 | 17.5 |
Increase in earnest money deposits on sales contracts | 49.7 | 3.9 | 40.5 |
Decrease (increase) in income taxes receivable | 6.3 | (3.1) | 1.2 |
Net cash used in operating activities | (303.1) | (168.4) | (391.2) |
INVESTING ACTIVITIES | |||
Expenditures for property, equipment, software and other | (1.6) | (0.6) | (0.9) |
Return of investment in unconsolidated ventures | 2.6 | 4.3 | 0.1 |
Proceeds from sale of assets | 0 | 1.3 | 0 |
Net cash provided by (used in) investing activities | 1 | 5 | (0.8) |
FINANCING ACTIVITIES | |||
Issuance of common stock | 33.4 | 0 | 100.7 |
Proceeds from debt | 458 | 300 | 435 |
Repayments of debt | (422) | (118.9) | (85) |
Deferred financing fees | (4.9) | (5.3) | (6.9) |
Purchase of noncontrolling interest | (2.4) | 0 | 0 |
Distributions to noncontrolling interests, net | (0.1) | (0.6) | (3.9) |
Cash paid for shares withheld for taxes | (0.6) | (0.3) | (0.1) |
Net cash provided by financing activities | 61.4 | 174.9 | 439.8 |
Net (decrease) increase in cash and cash equivalents | (240.7) | 11.5 | 47.8 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 153.6 | 394.3 | 382.8 |
Cash paid during the year for: | |||
Note payable issued for real estate | 12.5 | 0 | 0 |
Income taxes paid (refunded), net | $ 4.3 | $ (3.1) | $ (1.7) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 49,580,389 | 48,061,921 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - shares | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Shares Issued During Period, New Issues | 1,448,520 | 6,037,500 | ||
Common Stock | ||||
Common Stock, Shares, Outstanding | 49,580,389 | 48,061,921 | 47,997,366 | 41,939,403 |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 69,948 | 64,555 | 20,463 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. In October 2017, Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton. Immediately following the merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. As of September 30, 2021, D.R. Horton owned approximately 63% of the Company's outstanding common stock. Changes in Presentation and Reclassifications Certain items have been reclassified in the prior year financial statements to conform to the presentation and classifications used in the current year. Accrued development costs have been reclassified from accrued expenses and other liabilities to accrued development costs in the prior year consolidated balance sheet. The Company has reclassified the change in accrued development costs from the change in accounts payable and other liabilities to the change in accrued development costs in the prior year statement of cash flows. These reclassifications had no net effect on the Company's consolidated operating results, financial position or cash flows. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue Recognition Real estate revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon land or lots, is generally satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. See Note 4. Cash and Cash Equivalents Cash and cash equivalents include cash, other short-term instruments with original maturities of three months or less and proceeds from land and lot closings held for the Company’s benefit at title companies. Real Estate and Cost of Sales Real estate includes the costs of direct land and lot acquisition, land development, capitalized interest and direct overhead costs incurred during land development. All indirect overhead costs, such as compensation of management personnel and insurance costs, are charged to selling, general and administrative expense as incurred. Land and development costs are typically allocated to individual residential lots based on the relative sales value of the lot. Cost of sales includes applicable land and lot acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the project. Any changes to the estimated total development costs subsequent to the initial lot sales are generally allocated to the remaining lots. The Company receives earnest money deposits from homebuilders for purchases of developed lots. These earnest money deposits are typically released to the homebuilders as lots are sold. Earnest money deposits from D.R. Horton are subject to mortgages which are secured by the real estate under contract with D.R. Horton. These mortgages expire when the earnest money is released to D.R. Horton as lots are sold. See Note 13 for related party transactions and balances. The Company has agreements with certain utility or improvement districts to convey water, sewer and other infrastructure-related assets it has constructed in connection with projects within their jurisdiction and receive reimbursements for the cost of these improvements. The reimbursement amounts for these improvements are defined by the district and are based on the allowable costs of the improvements. The transfer is consummated and the Company generally receives payment when the districts have a sufficient tax base to support funding of their bonds. The cost incurred by the Company in constructing these improvements, net of the amount expected to be collected in the future, is included in the Company's land development budgets and in the determination of lot costs. The Company reviews real estate assets held for use for impairment when events or circumstances indicate that their carrying value may not be recoverable. Impairment exists if the carrying amount of the asset is not recoverable from the undiscounted cash flows expected from its use and eventual disposition. The amount of the impairment loss is determined by comparing the carrying value of the asset to its estimated fair value, which is generally determined based on the present value of future cash flows expected from the sale of the asset. Real estate impairments are included in cost of sales in the consolidated statements of operations. See Note 3. Capitalized Interest The Company capitalizes interest costs throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2021 and 2020, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate. See Note 5. Land Purchase Contract Deposits and Pre-Acquisition Costs The Company enters into land and lot purchase contracts to acquire land for the development of residential lots. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of many of the purchase contracts, the deposits are not refundable in the event the Company elects to terminate the contract. Land purchase contract deposits and capitalized pre-acquisition costs are expensed to cost of sales when the Company believes it is probable that it will not acquire the property under contract and will not be able to recover these costs through other means. See Notes 3 and 12. Variable Interests Land purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under contract. There were no variable interest entities reported in the consolidated balance sheets at September 30, 2021 or 2020 because, with regard to each entity, the Company determined it did not control the activities that most significantly impact the variable interest entity’s economic performance. The maximum exposure to losses related to the Company’s unconsolidated variable interest entities is limited to the amounts of the Company’s related deposits. At September 30, 2021 and 2020, the deposits related to these contracts totaled $10.4 million and $5.5 million, respectively, and are included in other assets in the consolidated balance sheets. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The cost of significant additions and improvements is capitalized and the cost of repairs and maintenance is expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset as follows: Estimated Useful Lives September 30, 2021 2020 (In millions) Leasehold improvements 5 to 10 years $ 0.9 $ 1.2 Property and equipment 2 to 10 years 2.9 1.1 Total property and equipment 3.8 2.3 Accumulated depreciation (0.9) (1.2) Property and equipment, net $ 2.9 $ 1.1 Depreciation expense was $0.4 million in fiscal 2021 and $0.3 million in both fiscal 2020 and 2019. Income Taxes The Company’s income tax expense is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement amounts of assets and liabilities and their respective tax bases and attributable to net operating losses and tax credit carryforwards. When assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income in future periods and in the jurisdictions in which those temporary differences become deductible. The Company records a valuation allowance when it determines it is more likely than not that a portion of the deferred tax assets will not be realized. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets and liabilities. Interest and penalties related to unrecognized tax benefits are recognized in the financial statements as a component of income tax expense. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a quarterly basis. The evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in increases or decreases in the Company’s income tax expense in the period in which the change is made. See Note 9. Stock-Based Compensation The Company’s stockholders formally authorize shares of its common stock to be available for future grants of stock-based compensation awards. From time to time, the Compensation Committee of the Company’s Board of Directors authorizes the grant of stock-based compensation to its employees and directors from these available shares. At September 30, 2021, the outstanding stock-based compensation awards consist of restricted stock units. Grants of restricted stock units vest over a certain number of years as determined by the Compensation Committee of the Board of Directors. Restricted stock units outstanding at September 30, 2021 have a remaining vesting period of up to 4.5 years. The compensation expense for stock-based awards is based on the fair value of the award and is recognized on a straight-line basis over the remaining vesting period. The fair values of restricted stock units are based on the Company’s stock price at the date of grant. See Note 11. Fair Value Measurements The FASB's authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. When available, the Company uses quoted market prices in active markets to determine fair value. Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which the Company reviews for indicators of impairment when events and circumstances indicate that the carrying value is not recoverable. See Note 14. Pending Accounting Standards In December 2019, the FASB issued ASU 2019-12 related to simplifying the accounting for income taxes. The guidance is effective for the Company beginning October 1, 2021 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform - Scope," which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect it to have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, “Revenue from Contracts with Customers,” to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for the Company beginning October 1, 2023 and interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial position, results of operations and cash flows. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company manages its operations through its real estate segment, which is its core business and generates substantially all of its revenues. The real estate segment primarily acquires land and develops infrastructure for single-family residential communities, and its revenues generally come from sales of residential single-family finished lots to local, regional and national homebuilders. The Company has other business activities for which the related assets and operating results are immaterial, and therefore are included within the Company's real estate segment. |
Real Estate
Real Estate | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Real estate consists of: September 30, 2021 2020 (In millions) Developed and under development projects $ 1,824.7 $ 1,304.3 Undeveloped land 80.5 5.4 $ 1,905.2 $ 1,309.7 In fiscal 2021, the Company invested $779.7 million for the acquisition of residential real estate and $850.7 million for the development of residential real estate. At September 30, 2021 and 2020, undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton within approximately one year of its purchase or, if D.R. Horton elects, at an earlier date, at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum. Each quarter, the Company reviews the performance and outlook for all of its real estate for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As a result of this process there were no real estate impairment charges recorded in fiscal 2021 or 2020 and $0.8 million of impairment charges were recorded during fiscal 2019. During fiscal 2021, 2020 and 2019, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $3.0 million, $0.9 million and $0.2 million, respectively. Real estate impairments and land option charges are included in cost of sales in the consolidated statements of operations. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Sep. 30, 2021 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues Revenues consist of: Year Ended September 30, 2021 2020 2019 (In millions) Residential lot sales $ 1,293.1 $ 880.3 $ 351.7 Tract sales and other 32.7 51.5 76.6 $ 1,325.8 $ 931.8 $ 428.3 Total revenue from D.R. Horton was $1.2 billion, $887.6 million and $326.6 million in fiscal 2021, 2020 and 2019, respectively. |
Capitalized Interest
Capitalized Interest | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Capitalized Interest | Capitalized Interest The following table summarizes the Company’s interest costs incurred, capitalized and expensed in fiscal 2021, 2020 and 2019. Year Ended September 30, 2021 2020 2019 (In millions) Capitalized interest, beginning of year $ 48.7 $ 23.7 $ 3.2 Interest incurred 41.5 43.3 25.3 Interest charged to cost of sales (36.5) (18.3) (4.8) Capitalized interest, end of year $ 53.7 $ 48.7 $ 23.7 |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities (Notes) | 12 Months Ended |
Sep. 30, 2021 | |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |
Other Assets And Other Liabilities [Text Block] | Other Assets, Accrued Expenses and Other Liabilities The Company's other assets at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In millions) Receivables, net $ 0.4 $ 0.4 Earnest money notes receivable on sales contracts 0.7 4.8 Lease right of use assets 6.9 3.6 Prepaid expenses 15.4 4.9 Land purchase contract deposits 10.4 5.5 Other 5.3 5.7 $ 39.1 $ 24.9 The Company's accrued expenses and other liabilities at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In millions) Accrued employee compensation and benefits $ 7.9 $ 6.2 Accrued property taxes 3.4 3.8 Lease liabilities 7.3 3.8 Accrued interest 8.5 14.0 Contract liabilities 5.8 0.2 Deferred income 6.8 9.3 Income taxes payable 6.8 0.5 Other accrued expenses 8.9 10.2 Other liabilities 1.3 1.4 $ 56.7 $ 49.4 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's notes payable at their carrying amounts consist of the following: September 30, 2021 2020 (In millions) Unsecured: Revolving credit facility $ — $ — 8.0% senior notes due 2024 (1) — 345.2 3.85% senior notes due 2026 (1) 395.5 — 5.0% senior notes due 2028 (1) 296.5 295.9 Other note payable 12.5 — $ 704.5 $ 641.1 ______________ (1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $8.0 million and $8.9 million at September 30, 2021 and 2020, respectively. Bank Credit Facility In April 2021, the Company's senior unsecured revolving credit facility was amended to increase its capacity to $410 million with an uncommitted accordion feature that could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank commitments. The maturity date of the facility was extended to April 16, 2025. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the revolving credit commitment. Borrowings under the revolving credit facility are subject to a borrowing base calculation based on the book value of the Company's real estate assets and unrestricted cash. Letters of credit issued under the facility reduce the available borrowing capacity. Borrowings and repayments under the facility were $58.0 million each during fiscal 2021. At September 30, 2021, there were no borrowings outstanding and $60.3 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $349.7 million. The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require a minimum level of tangible net worth, a minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At September 30, 2021, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. Senior Notes The Company has outstanding senior notes as described below that were issued pursuant to Rule 144A and Regulation S under the Securities Act. The notes represent senior unsecured obligations that rank equally in right of payment to all existing and future senior unsecured indebtedness and may be redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreements. The notes are guaranteed by each of the Company's subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility. In April 2021, the company issued $400 million principal amount of 3.85% senior notes (the "2026 notes") that mature May 15, 2026 with interest payable semi-annually. On or after May 15, 2023, the 2026 notes may be redeemed at 101.925% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter and the 2026 notes can be redeemed at par on or after May 15, 2025 through maturity. The annual effective interest rate of the 2026 notes after giving effect to the amortization of financing costs is 4.1%. The net proceeds from this issuance were primarily used to redeem the Company's $350 million principal amount of 8.0% senior notes due April 15, 2024 on May 7, 2021. The redemption price of $365.6 million included a call premium of $14.0 million and accrued and unpaid interest of $1.6 million. The Company recognized an $18.1 million loss on extinguishment of debt upon the redemption of such notes. The Company's $300 million principal amount of 5.0% senior notes mature March 1, 2028 (the "2028 notes") with interest payable semi-annually. On or after March 1, 2023, the 2028 notes may be redeemed at 102.5% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter and the 2028 notes can be redeemed at par on or after March 1, 2026 through maturity. The annual effective interest rate of the 2028 notes after giving effect to the amortization of financing costs is 5.2%. The indentures governing the senior notes require that, upon the occurrence of both a change of control and a rating decline (each as defined in the indentures), the Company offer to purchase the applicable series of notes at 101% of their principal amount. If the Company or its restricted subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash proceeds from such asset sales in its business within a specified period of time, repay certain senior secured debt or debt of its non-guarantor subsidiaries, or make an offer to purchase a principal amount of the notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount. The indentures contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments; incur additional debt or issue mandatorily redeemable equity; incur liens on assets; merge or consolidate with another company or sell or otherwise dispose of all or substantially all of the Company’s assets; enter into transactions with affiliates; and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments. At September 30, 2021, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations. Effective April 30, 2020, the Board of Directors authorized the repurchase of up to $30 million of the Company’s debt securities. The authorization has no expiration date. All of the $30 million authorization was remaining at September 30, 2021. Other Note Payable The Company also has a note payable of $12.5 million that was issued as part of a transaction to acquire real estate for development. The note is non-recourse and is secured by the underlying real estate, accrues interest at 4.0% per annum and matures in October 2023. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computations of basic and diluted earnings per share are as follows: Year Ended September 30, 2021 2020 2019 (In millions, except share and per share amounts) Numerator: Net income attributable to Forestar Group Inc. $ 110.2 $ 60.8 $ 33.0 Denominator: Weighted average common shares outstanding — basic 48,901,987 48,037,018 41,974,429 Dilutive effect of stock-based compensation 73,674 57,093 30,712 Total weighted average shares outstanding — diluted 48,975,661 48,094,111 42,005,141 Basic net income per common share attributable to Forestar Group Inc. $ 2.25 $ 1.26 $ 0.79 Diluted net income per common share attributable to Forestar Group Inc. $ 2.25 $ 1.26 $ 0.79 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the Company's income tax expense are as follows: Year Ended September 30, 2021 2020 2019 (In millions) Current tax expense (benefit): Federal $ 14.3 $ (7.6) $ (0.3) State and other 2.6 0.9 0.3 16.9 (6.7) — Deferred tax expense: Federal 15.8 21.2 9.1 State and other 3.4 1.9 0.3 19.2 23.1 9.4 Income tax expense $ 36.1 $ 16.4 $ 9.4 A reconciliation of the federal statutory rate to the Company's effective income tax rate follows: Year Ended September 30, 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % State, net of federal benefit 3.3 2.9 1.3 Valuation allowance — (0.1) (0.3) Tax benefits previously unrecognized — (2.0) — Non-controlling interests — (0.3) (1.4) Tax rate benefit in carryback years — (1.0) — Other 0.3 0.5 — Effective tax rate 24.6 % 21.0 % 20.6 % The effective tax rate for fiscal 2020 includes a tax benefit of $2.3 million related to the net operating loss (NOL) carryback provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which allowed the Company to carryback a portion of its fiscal 2018 NOL. The carryback provisions resulted in the recognition of previously unrecognized tax benefits and the revaluation of deferred tax assets due to the utilization of NOLs at a higher tax rate in the carryback period. The effective tax rate for all years includes an expense for state income taxes and nondeductible expenses and a benefit related to noncontrolling interests. Significant components of deferred taxes are: September 30, 2021 2020 (In millions) Deferred tax assets: Real estate $ 14.2 $ 10.5 Employee benefits 1.9 1.5 Net operating loss carryforwards 1.4 1.7 Accruals not deductible until paid 0.2 0.2 Total deferred tax assets 17.7 13.9 Valuation allowance (1.2) (1.5) Total deferred tax assets, net of valuation allowance 16.5 12.4 Deferred tax liabilities: Deferral of profit on lot sales (40.9) (18.1) Total deferred tax liabilities (40.9) (18.1) Deferred tax liability, net $ (24.4) $ (5.7) At September 30, 2021 and 2020, the Company had no federal NOL carryforwards as a result of NOL carryback claims and taxable income in fiscal 2020. At September 30, 2021, the Company had tax benefits of $1.4 million related to state NOL carryforwards, of which $0.9 million will expire between 2030 and 2038 while the remaining $0.5 million do not have an expiration date. The Company has a valuation allowance of $1.2 million and $1.5 million at September 30, 2021 and 2020, respectively, because it is more likely than not that a portion of the Company's state deferred tax assets, primarily NOL carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets. Any reversal of the valuation allowance in future periods will impact the effective tax rate. The Company is subject to a Tax Sharing Agreement with D.R. Horton. The agreement sets forth an equitable method for reimbursements of tax liabilities or benefits between the Company and D.R. Horton related to state and local income, margin or franchise tax returns that are filed on a unitary basis with D.R. Horton. In accordance with the agreement, the Company reimbursed D.R. Horton $0.5 million and $0.2 million in fiscal 2021 and 2020, respectively, for its tax expense generated in fiscal 2020 and 2019. The Company files income tax returns in the U.S. and in various state jurisdictions. The federal statute of limitations for tax years prior to 2016 is closed and the statute of limitations in major state jurisdictions for tax years prior to 2017 is closed. The Company is not currently being audited by the IRS or any state jurisdictions. A reconciliation of the beginning and ending amount of tax benefits not recognized for book purposes is as follows: Year Ended September 30, 2021 2020 2019 (In millions) Unrecognized tax benefits, beginning of year $ — $ 1.6 $ 1.6 Decrease for tax positions taken in prior years — (1.6) — Unrecognized tax benefits, end of year $ — $ — $ 1.6 The Company had no unrecognized tax benefits at September 30, 2021 as a result of the recognition of $1.6 million of previously unrecognized tax benefits during fiscal 2020. All of the $1.6 million of recognized tax benefits affected the Company’s effective tax rate and was attributable to the NOL carryback provisions of the CARES Act allowing previously uncertain tax attributes to be recognized. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. In fiscal years 2021, 2020 and 2019, no significant interest related to unrecognized tax benefits was recognized. At September 30, 2021, there were no accrued interest or penalties. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity At September 30, 2021, the Company had an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) in September 2018 registering $500 million of equity securities, of which $100 million was reserved for sales under the at-the-market equity offering program that became effective in August 2020. In fiscal 2021, the Company issued 1.4 million shares of common stock under its at-the-market equity offering program for proceeds of $33.4 million, net of commissions and other issuance costs totaling $1.0 million. At September 30, 2021, $359.9 million remained available for issuance under the shelf registration statement, of which $65.6 million is reserved for sales under the at-the-market equity offering program. In October 2021, after the expiration of the existing registration statement and at-the market equity offering program, a new shelf registration statement became effective registering $750 million of equity securities. |
Compensation Related Costs, Pos
Compensation Related Costs, Postemployment Benefits | 12 Months Ended |
Sep. 30, 2021 | |
Employee Benefit Plans [Abstract] | |
Share-based Payment Arrangement | Employee Benefit Plans Retirement Plans The Company has a 401(k) plan for all employees who have been with the Company for a period of six months or more. The Company matches portions of employees’ voluntary contributions. Additional employer contributions in the form of profit sharing may also be made at the Company’s discretion. The Company recorded expense of $0.6 million, $0.4 million and $0.2 million for matching contributions in fiscal 2021, 2020 and 2019, respectively. Restricted Stock Units (RSUs) The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit awards may be based on performance (performance-based) or on service over a requisite time period (time-based). RSU equity awards represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions and/or performance criteria are satisfied and have no voting rights during the vesting period. During fiscal 2021, 2020 and 2019, the Company granted time-based RSUs that vest annually in equal installments over periods of three Year Ended September 30, 2021 2020 2019 Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of year 285,863 $ 17.47 200,960 $ 19.68 86,500 $ 18.09 Granted 234,000 23.13 181,325 16.11 149,400 20.24 Vested (92,159) 19.08 (79,432) 19.58 (23,740) 18.03 Cancelled (40,550) 19.66 (16,990) 19.10 (11,200) 18.39 Outstanding at end of year 387,154 $ 20.70 285,863 $ 17.47 200,960 $ 19.68 The total fair value of shares vested on the vesting date during both fiscal 2021 and 2020 was $1.6 million. Total stock-based compensation expense related to the Company's restricted stock units for fiscal 2021, 2020 and 2019 was $2.6 million, $2.0 million and $1.3 million, respectively, and fiscal 2021, 2020 and 2019 included $0.7 million, $0.5 million and $0.6 million, respectively, of expense recognized for employees that were retirement eligible on the date of grant. These expenses are included in selling, general and administrative expense in the Company's consolidated statements of operations. At September 30, 2021, there was $5.0 million of unrecognized compensation expense related to unvested time-based RSU awards. This expense is expected to be recognized over a weighted average period of 2.6 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Other Contingencies | Commitments and Contingencies Contractual Obligations and Off-Balance Sheet Arrangements In support of the Company's residential lot development business, it issues letters of credit under the revolving credit facility and has a surety bond program that provides financial assurance to beneficiaries related to the execution and performance of certain development obligations. At September 30, 2021, the Company had outstanding letters of credit of $60.3 million under the revolving credit facility and surety bonds of $479.3 million issued by third parties to secure performance under various contracts. The Company expects that its performance obligations secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in accordance with the applicable contractual terms. When the Company completes its performance obligations, the related letters of credit and bonds are generally released shortly thereafter, leaving the Company with no continuing obligations. The Company has no material third-party guarantees. Litigation The Company is involved in various legal proceedings that arise from time to time in the ordinary course of business and believes that adequate reserves have been established for any probable losses. The Company does not believe that the outcome of any of these proceedings will have a significant adverse effect on its financial position, long-term results of operations or cash flows. It is possible, however, that charges related to these matters could be significant to the Company's results or cash flows in any one accounting period. Land Purchase Contracts The Company enters into land purchase contracts to acquire land for the development of residential lots. At September 30, 2021, the Company had total deposits of $10.4 million related to contracts to purchase land with a total remaining purchase price of approximately $597.5 million. The majority of land and lots under contract are currently expected to be purchased within two years. None of the land purchase contracts were subject to specific performance provisions at September 30, 2021. Other Commitments The Company leases facilities and equipment under non-cancelable long-term operating lease agreements. In addition, the Company has various obligations under other office space and equipment leases of less than one year. Rent expense for facilities and equipment was $1.7 million in fiscal 2021, $1.1 million in fiscal 2020 and $0.7 million in fiscal 2019. Future minimum rental commitments, by fiscal year, under non-cancelable operating leases having an initial or remaining term in excess of one year are: 2022 — $1.9 million; 2023 — $2.0 million; 2024 — $1.9 million; 2025 — $1.5 million; 2026 — $1.0 million; and none thereafter. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The Company has a Shared Services Agreement with D.R. Horton whereby D.R. Horton provides the Company with certain administrative, compliance, operational and procurement services. During fiscal 2021, 2020 and 2019, selling, general and administrative expense in the consolidated statements of operations included $4.0 million, $5.0 million and $2.1 million for these shared services, $4.7 million, $2.7 million and $1.4 million reimbursed to D.R. Horton for the cost of health insurance and other employee benefits and $6.1 million, $4.0 million and $1.2 million for other corporate and administrative expenses paid by D.R. Horton on behalf of the Company. The Company is subject to a Tax Sharing Agreement with D.R. Horton. The agreement sets forth an equitable method for reimbursements of tax liabilities or benefits between the Company and D.R. Horton related to state and local income, margin or franchise tax returns that are filed on a unitary basis with D.R. Horton. In accordance with the agreement, the Company reimbursed D.R. Horton $0.5 million and $0.2 million in fiscal 2021 and 2020, respectively, for its tax expense generated in fiscal 2020 and 2019, and D.R. Horton reimbursed the Company $0.4 million in fiscal 2019 for its tax benefit generated in the nine months ended September 30, 2018. Under the terms of the Master Supply Agreement with D.R. Horton, both companies identify land development opportunities to expand Forestar's portfolio of assets. At September 30, 2021 and 2020, the Company owned approximately 64,400 and 42,400 residential lots, of which D.R. Horton had the following involvement. September 30, 2021 2020 (Dollars in millions) Residential lots under contract to sell to D.R. Horton 21,000 14,000 Residential lots subject to right of first offer with D.R. Horton 18,200 16,400 Earnest money deposits from D.R. Horton for lots under contract $ 143.1 $ 92.2 Earnest money notes from D.R. Horton for lots under contract $ 0.7 $ 4.8 Remaining purchase price of lots under contract with D.R. Horton $ 1,582.7 $ 1,022.2 During fiscal 2021, 2020 and 2019, the Company's residential lot sales totaled 15,915, 10,373 and 4,132 and lot sales revenues were $1.3 billion, $880.3 million and $351.7 million. Lot and land sales to D.R. Horton during those periods were as follows. Year Ended September 30, 2021 2020 2019 (Dollars in millions) Residential single-family lots sold to D.R. Horton 14,839 10,164 3,728 Residential lot sales revenues from sales to D.R. Horton $ 1,212.1 $ 859.7 $ 311.7 Tract acres sold to D.R. Horton 85 143 290 Tract sales revenues from sales to D.R. Horton $ 25.9 $ 25.6 $ 10.9 In addition, the net impact of the change in contract liabilities decreased revenues on lot sales to D.R. Horton by $5.6 million in fiscal 2021 and increased revenues on lot sales to D.R. Horton by $2.3 million and $4.0 million in fiscal 2020 and 2019, respectively. During fiscal 2021, 2020 and 2019, the Company reimbursed D.R. Horton approximately $30.8 million, $27.0 million and $34.5 million, for previously paid earnest money and $61.3 million, $36.3 million and $13.1 million for pre-acquisition and other due diligence and development costs related to land purchase contracts whereby D.R. Horton assigned its rights under these land purchase contracts to the Company. During fiscal 2021, 2020 and 2019, the Company paid D.R. Horton $5.7 million, $6.2 million and $2.4 million for land development services. These amounts are included in cost of sales in the Company’s consolidated statements of operations. At September 30, 2021 and 2020, undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton within approximately one year of its purchase or, if D.R. Horton elects, at an earlier date, at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum. At September 30, 2021 and 2020, accrued expenses and other liabilities on the Company's consolidated balance sheets included $6.7 million and $8.4 million owed to D.R. Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements. |
Fair Value
Fair Value | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. In arriving at a fair value measurement, the Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of inputs used to establish fair value are the following: • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company elected not to use the fair value option for cash and cash equivalents and debt. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at September 30, 2021 and 2020. Fair Value at September 30, 2021 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 153.6 $ 153.6 $ — $ — $ 153.6 Debt (b) (c) 704.5 — 711.2 12.5 723.7 Fair Value at September 30, 2020 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 394.3 $ 394.3 $ — $ — $ 394.3 Debt (b) 641.1 — 673.5 — 673.5 _____________________ (a) The fair values of cash and cash equivalents approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (b) At September 30, 2021 and 2020, debt primarily consisted of the Company's senior notes. The fair value of the senior notes is determined based on quoted market prices in markets that are not active, which is classified as Level 2 within the fair value hierarchy. (c) The fair values of the Company's other note payable approximates its carrying value due to its short-term nature and is classified as Level 3 within the fair value hierarchy. Non-financial assets measured at fair value on a non-recurring basis primarily include real estate assets which the Company reviews for indicators of potential impairment and performs impairment evaluations when necessary. |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) Consolidated quarterly results of operations for fiscal year 2021 and 2020 were (in millions, except per share amounts): Fiscal 2021 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total revenues $ 307.1 $ 287.1 $ 312.9 $ 418.7 Income before income taxes 29.2 37.6 21.1 58.8 Income tax expense 7.1 9.2 5.2 14.7 Net income 22.1 28.4 15.9 44.1 Net income attributable to noncontrolling interests 0.1 — 0.1 0.1 Net income attributable to Forestar Group Inc. 22.0 28.4 15.8 44.0 Net income per share — basic $ 0.46 $ 0.59 $ 0.32 $ 0.89 Net income per share — diluted $ 0.46 $ 0.59 $ 0.32 $ 0.89 Fiscal 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total revenues $ 247.2 $ 159.1 $ 177.9 $ 347.6 Income before income taxes 22.2 13.7 10.3 32.0 Income tax expense 5.4 3.3 0.2 7.5 Net income 16.8 10.4 10.1 24.5 Net (loss) income attributable to noncontrolling interests (0.1) 0.8 — 0.3 Net income attributable to Forestar Group Inc. 16.9 9.6 10.1 24.2 Net income per share — basic $ 0.35 $ 0.20 $ 0.21 $ 0.50 Net income per share — diluted $ 0.35 $ 0.20 $ 0.21 $ 0.50 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and include the accounts of Forestar Group Inc. (Forestar) and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. In October 2017, Forestar became a majority-owned subsidiary of D.R. Horton, Inc. (D.R. Horton) by virtue of a merger with a wholly-owned subsidiary of D.R. Horton. Immediately following the merger, D.R. Horton owned 75% of the Company's outstanding common stock. In connection with the merger, the Company entered into certain agreements with D.R. Horton including a Stockholder’s Agreement, a Master Supply Agreement and a Shared Services Agreement. D.R. Horton is considered a related party of Forestar under GAAP. As of September 30, 2021, D.R. Horton owned approximately 63% of the Company's outstanding common stock. |
Reclassification, Comparability Adjustment | Changes in Presentation and Reclassifications Certain items have been reclassified in the prior year financial statements to conform to the presentation and classifications used in the current year. Accrued development costs have been reclassified from accrued expenses and other liabilities to accrued development costs in the prior year consolidated balance sheet. The Company has reclassified the change in accrued development costs from the change in accounts payable and other liabilities to the change in accrued development costs in the prior year statement of cash flows. These reclassifications had no net effect on the Company's consolidated operating results, financial position or cash flows. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue | Revenue Recognition Real estate revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the agreed-upon land or lots, is generally satisfied at closing. However, there may be instances in which the Company has an unsatisfied remaining performance obligation at the time of closing. In these instances, the Company records contract liabilities and recognizes those revenues over time as the performance obligations are completed. Generally, the Company's unsatisfied remaining performance obligations are expected to have an original duration of less than one year. See Note 4. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash and cash equivalents include cash, other short-term instruments with original maturities of three months or less and proceeds from land and lot closings held for the Company’s benefit at title companies. |
Real Estate, Policy | Real Estate and Cost of Sales Real estate includes the costs of direct land and lot acquisition, land development, capitalized interest and direct overhead costs incurred during land development. All indirect overhead costs, such as compensation of management personnel and insurance costs, are charged to selling, general and administrative expense as incurred. Land and development costs are typically allocated to individual residential lots based on the relative sales value of the lot. Cost of sales includes applicable land and lot acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the project. Any changes to the estimated total development costs subsequent to the initial lot sales are generally allocated to the remaining lots. The Company receives earnest money deposits from homebuilders for purchases of developed lots. These earnest money deposits are typically released to the homebuilders as lots are sold. Earnest money deposits from D.R. Horton are subject to mortgages which are secured by the real estate under contract with D.R. Horton. These mortgages expire when the earnest money is released to D.R. Horton as lots are sold. See Note 13 for related party transactions and balances. The Company has agreements with certain utility or improvement districts to convey water, sewer and other infrastructure-related assets it has constructed in connection with projects within their jurisdiction and receive reimbursements for the cost of these improvements. The reimbursement amounts for these improvements are defined by the district and are based on the allowable costs of the improvements. The transfer is consummated and the Company generally receives payment when the districts have a sufficient tax base to support funding of their bonds. The cost incurred by the Company in constructing these improvements, net of the amount expected to be collected in the future, is included in the Company's land development budgets and in the determination of lot costs. The Company reviews real estate assets held for use for impairment when events or circumstances indicate that their carrying value may not be recoverable. Impairment exists if the carrying amount of the asset is not recoverable from the undiscounted cash flows expected from its use and eventual disposition. The amount of the impairment loss is determined by comparing the carrying value of the asset to its estimated fair value, which is generally determined based on the present value of future cash flows expected from the sale of the asset. Real estate impairments are included in cost of sales in the consolidated statements of operations. See Note 3. |
Inventory, Interest Capitalization Policy | Capitalized Interest The Company capitalizes interest costs throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2021 and 2020, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate. See Note 5. Land Purchase Contract Deposits and Pre-Acquisition Costs The Company enters into land and lot purchase contracts to acquire land for the development of residential lots. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of many of the purchase contracts, the deposits are not refundable in the event the Company elects to terminate the contract. Land purchase contract deposits and capitalized pre-acquisition costs are expensed to cost of sales when the Company believes it is probable that it will not acquire the property under contract and will not be able to recover these costs through other means. See Notes 3 and 12. Variable Interests Land purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under contract. There were no variable interest entities reported in the consolidated balance sheets at September 30, 2021 or 2020 because, with regard to each entity, the Company determined it did not control the activities that most significantly impact the variable interest entity’s economic performance. The maximum exposure to losses related to the Company’s unconsolidated variable interest entities is limited to the amounts of the Company’s related deposits. At September 30, 2021 and 2020, the deposits related to these contracts totaled $10.4 million and $5.5 million, respectively, and are included in other assets in the consolidated balance sheets. |
Property, Plant and Equipment, Policy | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The cost of significant additions and improvements is capitalized and the cost of repairs and maintenance is expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset as follows: Estimated Useful Lives September 30, 2021 2020 (In millions) Leasehold improvements 5 to 10 years $ 0.9 $ 1.2 Property and equipment 2 to 10 years 2.9 1.1 Total property and equipment 3.8 2.3 Accumulated depreciation (0.9) (1.2) Property and equipment, net $ 2.9 $ 1.1 Depreciation expense was $0.4 million in fiscal 2021 and $0.3 million in both fiscal 2020 and 2019. |
Income Tax, Policy | Income Taxes The Company’s income tax expense is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement amounts of assets and liabilities and their respective tax bases and attributable to net operating losses and tax credit carryforwards. When assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income in future periods and in the jurisdictions in which those temporary differences become deductible. The Company records a valuation allowance when it determines it is more likely than not that a portion of the deferred tax assets will not be realized. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company’s deferred tax assets and liabilities. Interest and penalties related to unrecognized tax benefits are recognized in the financial statements as a component of income tax expense. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a quarterly basis. The evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in increases or decreases in the Company’s income tax expense in the period in which the change is made. See Note 9. |
Share-based Payment Arrangement | Stock-Based Compensation The Company’s stockholders formally authorize shares of its common stock to be available for future grants of stock-based compensation awards. From time to time, the Compensation Committee of the Company’s Board of Directors authorizes the grant of stock-based compensation to its employees and directors from these available shares. At September 30, 2021, the outstanding stock-based compensation awards consist of restricted stock units. Grants of restricted stock units vest over a certain number of years as determined by the Compensation Committee of the Board of Directors. Restricted stock units outstanding at September 30, 2021 have a remaining vesting period of up to 4.5 years. The compensation expense for stock-based awards is based on the fair value of the award and is recognized on a straight-line basis over the remaining vesting period. The fair values of restricted stock units are based on the Company’s stock price at the date of grant. See Note 11. |
Fair Value Measurement, Policy | Fair Value Measurements The FASB's authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. When available, the Company uses quoted market prices in active markets to determine fair value. Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which the Company reviews for indicators of impairment when events and circumstances indicate that the carrying value is not recoverable. See Note 14. |
Description of New Accounting Pronouncements Not yet Adopted | Pending Accounting Standards In December 2019, the FASB issued ASU 2019-12 related to simplifying the accounting for income taxes. The guidance is effective for the Company beginning October 1, 2021 and is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform - Scope," which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect it to have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, “Revenue from Contracts with Customers,” to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for the Company beginning October 1, 2023 and interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial position, results of operations and cash flows. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset as follows: Estimated Useful Lives September 30, 2021 2020 (In millions) Leasehold improvements 5 to 10 years $ 0.9 $ 1.2 Property and equipment 2 to 10 years 2.9 1.1 Total property and equipment 3.8 2.3 Accumulated depreciation (0.9) (1.2) Property and equipment, net $ 2.9 $ 1.1 Depreciation expense was $0.4 million in fiscal 2021 and $0.3 million in both fiscal 2020 and 2019. |
Real Estate (Tables)
Real Estate (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate | Real estate consists of: September 30, 2021 2020 (In millions) Developed and under development projects $ 1,824.7 $ 1,304.3 Undeveloped land 80.5 5.4 $ 1,905.2 $ 1,309.7 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenues [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | Revenues consist of: Year Ended September 30, 2021 2020 2019 (In millions) Residential lot sales $ 1,293.1 $ 880.3 $ 351.7 Tract sales and other 32.7 51.5 76.6 $ 1,325.8 $ 931.8 $ 428.3 |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Inventory, Interest Capitalization Policy [Table Text Block] | The following table summarizes the Company’s interest costs incurred, capitalized and expensed in fiscal 2021, 2020 and 2019. Year Ended September 30, 2021 2020 2019 (In millions) Capitalized interest, beginning of year $ 48.7 $ 23.7 $ 3.2 Interest incurred 41.5 43.3 25.3 Interest charged to cost of sales (36.5) (18.3) (4.8) Capitalized interest, end of year $ 53.7 $ 48.7 $ 23.7 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | The Company's other assets at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In millions) Receivables, net $ 0.4 $ 0.4 Earnest money notes receivable on sales contracts 0.7 4.8 Lease right of use assets 6.9 3.6 Prepaid expenses 15.4 4.9 Land purchase contract deposits 10.4 5.5 Other 5.3 5.7 $ 39.1 $ 24.9 The Company's accrued expenses and other liabilities at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In millions) Accrued employee compensation and benefits $ 7.9 $ 6.2 Accrued property taxes 3.4 3.8 Lease liabilities 7.3 3.8 Accrued interest 8.5 14.0 Contract liabilities 5.8 0.2 Deferred income 6.8 9.3 Income taxes payable 6.8 0.5 Other accrued expenses 8.9 10.2 Other liabilities 1.3 1.4 $ 56.7 $ 49.4 |
Debt - Schedule of Debt (Tables
Debt - Schedule of Debt (Tables) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 704.5 | $ 641.1 |
Long-term Line of Credit | $ 0 | 0 |
Schedule of Long-term Debt Instruments | The Company's notes payable at their carrying amounts consist of the following: September 30, 2021 2020 (In millions) Unsecured: Revolving credit facility $ — $ — 8.0% senior notes due 2024 (1) — 345.2 3.85% senior notes due 2026 (1) 395.5 — 5.0% senior notes due 2028 (1) 296.5 295.9 Other note payable 12.5 — $ 704.5 $ 641.1 ______________ (1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $8.0 million and $8.9 million at September 30, 2021 and 2020, respectively. | |
Senior Notes 8.0% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | 345.2 |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |
Senior Notes 3.85% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 395.5 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | |
Senior Notes 5.0% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 296.5 | 295.9 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 12.5 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted earnings per share are as follows: Year Ended September 30, 2021 2020 2019 (In millions, except share and per share amounts) Numerator: Net income attributable to Forestar Group Inc. $ 110.2 $ 60.8 $ 33.0 Denominator: Weighted average common shares outstanding — basic 48,901,987 48,037,018 41,974,429 Dilutive effect of stock-based compensation 73,674 57,093 30,712 Total weighted average shares outstanding — diluted 48,975,661 48,094,111 42,005,141 Basic net income per common share attributable to Forestar Group Inc. $ 2.25 $ 1.26 $ 0.79 Diluted net income per common share attributable to Forestar Group Inc. $ 2.25 $ 1.26 $ 0.79 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The components of the Company's income tax expense are as follows: Year Ended September 30, 2021 2020 2019 (In millions) Current tax expense (benefit): Federal $ 14.3 $ (7.6) $ (0.3) State and other 2.6 0.9 0.3 16.9 (6.7) — Deferred tax expense: Federal 15.8 21.2 9.1 State and other 3.4 1.9 0.3 19.2 23.1 9.4 Income tax expense $ 36.1 $ 16.4 $ 9.4 |
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate on Continuing Operations | A reconciliation of the federal statutory rate to the Company's effective income tax rate follows: Year Ended September 30, 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % State, net of federal benefit 3.3 2.9 1.3 Valuation allowance — (0.1) (0.3) Tax benefits previously unrecognized — (2.0) — Non-controlling interests — (0.3) (1.4) Tax rate benefit in carryback years — (1.0) — Other 0.3 0.5 — Effective tax rate 24.6 % 21.0 % 20.6 % |
Significant Components of Deferred Taxes | Significant components of deferred taxes are: September 30, 2021 2020 (In millions) Deferred tax assets: Real estate $ 14.2 $ 10.5 Employee benefits 1.9 1.5 Net operating loss carryforwards 1.4 1.7 Accruals not deductible until paid 0.2 0.2 Total deferred tax assets 17.7 13.9 Valuation allowance (1.2) (1.5) Total deferred tax assets, net of valuation allowance 16.5 12.4 Deferred tax liabilities: Deferral of profit on lot sales (40.9) (18.1) Total deferred tax liabilities (40.9) (18.1) Deferred tax liability, net $ (24.4) $ (5.7) |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of tax benefits not recognized for book purposes is as follows: Year Ended September 30, 2021 2020 2019 (In millions) Unrecognized tax benefits, beginning of year $ — $ 1.6 $ 1.6 Decrease for tax positions taken in prior years — (1.6) — Unrecognized tax benefits, end of year $ — $ — $ 1.6 |
Compensation Related Costs, P_2
Compensation Related Costs, Postemployment Benefits (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Employee Benefit Plans [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following table provides additional information related to time-based RSU activity during those periods. Year Ended September 30, 2021 2020 2019 Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of year 285,863 $ 17.47 200,960 $ 19.68 86,500 $ 18.09 Granted 234,000 23.13 181,325 16.11 149,400 20.24 Vested (92,159) 19.08 (79,432) 19.58 (23,740) 18.03 Cancelled (40,550) 19.66 (16,990) 19.10 (11,200) 18.39 Outstanding at end of year 387,154 $ 20.70 285,863 $ 17.47 200,960 $ 19.68 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | September 30, 2021 2020 (Dollars in millions) Residential lots under contract to sell to D.R. Horton 21,000 14,000 Residential lots subject to right of first offer with D.R. Horton 18,200 16,400 Earnest money deposits from D.R. Horton for lots under contract $ 143.1 $ 92.2 Earnest money notes from D.R. Horton for lots under contract $ 0.7 $ 4.8 Remaining purchase price of lots under contract with D.R. Horton $ 1,582.7 $ 1,022.2 During fiscal 2021, 2020 and 2019, the Company's residential lot sales totaled 15,915, 10,373 and 4,132 and lot sales revenues were $1.3 billion, $880.3 million and $351.7 million. Lot and land sales to D.R. Horton during those periods were as follows. Year Ended September 30, 2021 2020 2019 (Dollars in millions) Residential single-family lots sold to D.R. Horton 14,839 10,164 3,728 Residential lot sales revenues from sales to D.R. Horton $ 1,212.1 $ 859.7 $ 311.7 Tract acres sold to D.R. Horton 85 143 290 Tract sales revenues from sales to D.R. Horton $ 25.9 $ 25.6 $ 10.9 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value at September 30, 2021 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 153.6 $ 153.6 $ — $ — $ 153.6 Debt (b) (c) 704.5 — 711.2 12.5 723.7 Fair Value at September 30, 2020 Carrying Value Level 1 Level 2 Level 3 Total (in millions) Cash and cash equivalents (a) $ 394.3 $ 394.3 $ — $ — $ 394.3 Debt (b) 641.1 — 673.5 — 673.5 |
Summary of Quarterly Results _2
Summary of Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | Consolidated quarterly results of operations for fiscal year 2021 and 2020 were (in millions, except per share amounts): Fiscal 2021 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total revenues $ 307.1 $ 287.1 $ 312.9 $ 418.7 Income before income taxes 29.2 37.6 21.1 58.8 Income tax expense 7.1 9.2 5.2 14.7 Net income 22.1 28.4 15.9 44.1 Net income attributable to noncontrolling interests 0.1 — 0.1 0.1 Net income attributable to Forestar Group Inc. 22.0 28.4 15.8 44.0 Net income per share — basic $ 0.46 $ 0.59 $ 0.32 $ 0.89 Net income per share — diluted $ 0.46 $ 0.59 $ 0.32 $ 0.89 Fiscal 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total revenues $ 247.2 $ 159.1 $ 177.9 $ 347.6 Income before income taxes 22.2 13.7 10.3 32.0 Income tax expense 5.4 3.3 0.2 7.5 Net income 16.8 10.4 10.1 24.5 Net (loss) income attributable to noncontrolling interests (0.1) 0.8 — 0.3 Net income attributable to Forestar Group Inc. 16.9 9.6 10.1 24.2 Net income per share — basic $ 0.35 $ 0.20 $ 0.21 $ 0.50 Net income per share — diluted $ 0.35 $ 0.20 $ 0.21 $ 0.50 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Oct. 05, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 3.8 | $ 3.8 | $ 2.3 | ||
Accumulated depreciation | (0.9) | (0.9) | (1.2) | ||
Property and equipment, net | $ 2.9 | 2.9 | 1.1 | ||
Depreciation | $ 0.4 | 0.3 | $ 0.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years 6 months | ||||
Majority Shareholder [Member] | D.R. Horton, Inc. [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 63.00% | 75.00% | |||
Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 0.9 | $ 0.9 | 1.2 | ||
Property, Plant and Equipment, Other Types [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 2.9 | $ 2.9 | $ 1.1 | ||
Maximum | Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Maximum | Property, Plant and Equipment, Other Types [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Minimum | Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Minimum | Property, Plant and Equipment, Other Types [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 2 years |
Real Estate - Real Estate Table
Real Estate - Real Estate Table (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Real Estate Properties [Line Items] | ||
Real estate | $ 1,905.2 | $ 1,309.7 |
Land and Land Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | 1,824.7 | 1,304.3 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | $ 80.5 | $ 5.4 |
Real Estate - Text (Detail)
Real Estate - Text (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Properties [Line Items] | |||
Payments to Acquire Residential Real Estate | $ 779.7 | ||
Payments to Develop Real Estate Assets | 850.7 | ||
Inventory Write-down | 0 | $ 0 | $ 0.8 |
Due Diligence Write-Offs | $ 3 | $ 0.9 | $ 0.2 |
D.R. Horton, Inc. [Member] | Maximum | |||
Real Estate Properties [Line Items] | |||
Related Party Transaction, Rate | 16.00% | ||
D.R. Horton, Inc. [Member] | Minimum | |||
Real Estate Properties [Line Items] | |||
Related Party Transaction, Rate | 12.00% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | |||||||||||
Other Revenue (Expense) from Real Estate Operations | $ 32.7 | $ 51.5 | $ 76.6 | ||||||||
Revenues | $ 418.7 | $ 312.9 | $ 287.1 | $ 307.1 | $ 347.6 | $ 177.9 | $ 159.1 | $ 247.2 | 1,325.8 | 931.8 | 428.3 |
D.R. Horton, Inc. [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 1,200 | 887.6 | 326.6 | ||||||||
Real Estate | Residential Real Estate [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,293.1 | $ 880.3 | $ 351.7 |
Capitalized Interest (Details)
Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement [Line Items] | ||||
Real Estate Inventory, Capitalized Interest Costs | $ 53.7 | $ 48.7 | $ 23.7 | $ 3.2 |
Interest incurred | 41.5 | 43.3 | 25.3 | |
Interest charged to cost of sales | $ (36.5) | $ (18.3) | $ (4.8) |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Other Assets, Accrued Expenses and Other Liabilities [Abstract] | ||
Receivables, net | $ 0.4 | $ 0.4 |
Earnest money notes receivable on sales contracts | 0.7 | 4.8 |
Lease right of use assets | 6.9 | 3.6 |
Prepaid expenses | 15.4 | 4.9 |
Land purchase contract deposits | 10.4 | 5.5 |
Other | $ 5.3 | $ 5.7 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Other Assets | $ 39.1 | $ 24.9 |
Accrued employee compensation and benefits | 7.9 | 6.2 |
Accrued property taxes | 3.4 | 3.8 |
Lease liabilities | 7.3 | 3.8 |
Accrued interest | 8.5 | 14 |
Contract liabilities | 5.8 | 0.2 |
Deferred income | 6.8 | 9.3 |
Income taxes payable | 6.8 | 0.5 |
Other accrued expenses | 8.9 | 10.2 |
Other liabilities | $ 1.3 | $ 1.4 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Accrued expenses and other liabilities | $ 56.7 | $ 49.4 |
Debt - Text (Detail)
Debt - Text (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | May 07, 2021 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 410 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 600 | ||||
Letter of Credit, Maximum Borrowing Capacity | $ 100 | ||||
Letter of Credit, Maximum Borrowing Capacity, Percentage of Revolving Credit Commitment | 50.00% | ||||
Repayments of Long-term Lines of Credit | $ 58 | ||||
Long-term Line of Credit | 0 | $ 0 | |||
Letters of Credit Outstanding, Amount | 60.3 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 349.7 | ||||
Debt Repurchase Program, Authorized Amount | 30 | $ 30 | |||
Proceeds from Long-term Lines of Credit | 58 | ||||
Loss on extinguishment of debt | $ 18.1 | 0 | $ 0 | ||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||
Other note payable | $ 12.5 | ||||
Senior Notes 3.85% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||
Debt Instrument, Redemption Price, Percentage | 101.925% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.10% | ||||
Senior Notes 8.0% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption, Accrued and Unpaid Interest | $ 1.6 | ||||
Debt Instrument, Face Amount | $ 350 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Debt Instrument, Redemption Price | 365.6 | ||||
Debt Instrument, Redemption, Call Premium | $ 14 | ||||
Senior Notes 5.0% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 300 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 5.20% | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ 8 | $ 8.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to Forestar Group Inc. | $ 44 | $ 15.8 | $ 28.4 | $ 22 | $ 24.2 | $ 10.1 | $ 9.6 | $ 16.9 | $ 110.2 | $ 60.8 | $ 33 |
Weighted average number of common shares | 48,901,987 | 48,037,018 | 41,974,429 | ||||||||
Dilutive effect of stock-based compensation | 73,674 | 57,093 | 30,712 | ||||||||
Adjusted weighted average number of common shares | 48,975,661 | 48,094,111 | 42,005,141 | ||||||||
Basic net income per common share attributable to Forestar Group Inc. | $ 0.89 | $ 0.32 | $ 0.59 | $ 0.46 | $ 0.50 | $ 0.21 | $ 0.20 | $ 0.35 | $ 2.25 | $ 1.26 | $ 0.79 |
Diluted net income per common share attributable to Forestar Group Inc. | $ 0.89 | $ 0.32 | $ 0.59 | $ 0.46 | $ 0.50 | $ 0.21 | $ 0.20 | $ 0.35 | $ 2.25 | $ 1.26 | $ 0.79 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Table (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current tax expense (benefit): | |||||||||||
Federal | $ 14.3 | $ (7.6) | $ (0.3) | ||||||||
State and other | 2.6 | 0.9 | 0.3 | ||||||||
Total | 16.9 | (6.7) | 0 | ||||||||
Deferred tax expense: | |||||||||||
Federal | 15.8 | 21.2 | 9.1 | ||||||||
State and other | 3.4 | 1.9 | 0.3 | ||||||||
Total | 19.2 | 23.1 | 9.4 | ||||||||
Income tax expense | $ 14.7 | $ 5.2 | $ 9.2 | $ 7.1 | $ 7.5 | $ 0.2 | $ 3.3 | $ 5.4 | $ 36.1 | $ 16.4 | $ 9.4 |
Income Taxes - Reconciliation T
Income Taxes - Reconciliation Table (Detail) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State, net of federal benefit | 3.30% | 2.90% | 1.30% |
Valuation allowance | 0.00% | (0.10%) | (0.30%) |
Tax benefits previously unrecognized | 0.00% | (2.00%) | 0.00% |
Non-controlling interests | 0.00% | (0.30%) | (1.40%) |
Tax rate benefit in carryback years | 0 | (0.010) | 0 |
Other | 0.30% | 0.50% | 0.00% |
Effective tax rate | 24.60% | 21.00% | 20.60% |
Income Taxes - Deferred Taxes T
Income Taxes - Deferred Taxes Table (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Real estate | $ 14.2 | $ 10.5 |
Employee benefits | 1.9 | 1.5 |
Net operating loss carryforwards | 1.4 | 1.7 |
Accruals not deductible until paid | 0.2 | 0.2 |
Total deferred tax assets | 17.7 | 13.9 |
Valuation allowance | (1.2) | (1.5) |
Total deferred tax assets, net of valuation allowance | 16.5 | 12.4 |
Deferred tax liabilities: | ||
Deferral of profit on lot sales | (40.9) | (18.1) |
Total deferred tax liabilities | (40.9) | (18.1) |
Deferred tax liability, net | $ (24.4) | $ (5.7) |
Income Taxes Income Taxes - Unr
Income Taxes Income Taxes - Unrecognized Tax Benefits Table (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 0 | $ 1,600,000 | $ 1,600,000 |
Decrease for tax positions taken in prior years | 0 | (1,600,000) | 0 |
Unrecognized tax benefits, end of year | 0 | 0 | 1,600,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 0 |
Income Taxes - Text (Detail)
Income Taxes - Text (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 2,300,000 | |||
Net operating loss carryforwards | $ 1,400,000 | 1,700,000 | ||
Deferred Tax Assets, Valuation Allowance | (1,200,000) | (1,500,000) | ||
Unrecognized Tax Benefits | 0 | 0 | $ 1,600,000 | $ 1,600,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0 | 0 | $ 0 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 0 | 0 | ||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 1,400,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 900,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 500,000 | |||
D.R. Horton, Inc. [Member] | Reimbursement To Parent [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 500,000 | $ 200,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Oct. 08, 2021 | Sep. 30, 2018 | |
Class of Stock [Line Items] | |||
Equity Securities Registered, Value | $ 500 | ||
At-the-market Equity Offering Program, Common Stock Available for Issuance | $ 65.6 | $ 100 | |
At-the-market Equity Offering Program, Common Stock Issued | 1.4 | ||
At-the-market Equity Offering Program, Net Proceeds | $ 33.4 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 1 | ||
Common Stock, Shares Authorized | $ 359.9 | ||
Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Equity Securities Registered, Value | $ 750 |
Compensation Related Costs, P_3
Compensation Related Costs, Postemployment Benefits (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Contribution Plan, Cost | $ 0.6 | $ 0.4 | $ 0.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 1.6 | $ 1.6 | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 5 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 387,154 | 285,863 | 200,960 | 86,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 20.70 | $ 17.47 | $ 19.68 | $ 18.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 234,000 | 181,325 | 149,400 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 23.13 | $ 16.11 | $ 20.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (92,159) | (79,432) | (23,740) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 19.08 | $ 19.58 | $ 18.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (40,550) | (16,990) | (11,200) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.66 | $ 19.10 | $ 18.39 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Payment Arrangement, Expense | $ 2.6 | $ 2 | $ 1.3 | |
Restricted Stock Units (RSUs) [Member] | Other [Member] | ||||
Share-based Payment Arrangement, Expense | $ 0.7 | $ 0.5 | $ 0.6 | |
Minimum | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Maximum | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Letters of Credit Outstanding, Amount | $ 60.3 | ||
Special Assessment Bond | 479.3 | ||
Operating Lease, Expense | 1.7 | $ 1.1 | $ 0.7 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 1.9 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 2 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 1.9 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 1.5 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 1 | ||
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 0 | ||
Land purchase contract deposits | 10.4 | $ 5.5 | |
Purchase Obligation | $ 597.5 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021USD ($)Lot | Sep. 30, 2020USD ($)Lot | Sep. 30, 2019USD ($)Lot | |
Related Party Transaction [Line Items] | |||
Number of Units in Real Estate Property | Lot | 64,400 | 42,400 | |
Number of Lots Sold | Lot | 15,915 | 10,373 | 4,132 |
Due to Related Parties, Current | $ 6.7 | $ 8.4 | |
D.R. Horton, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 4 | 5 | $ 2.1 |
Related Party Transaction, Expenses from Transactions with Related Party | 4.7 | 2.7 | 1.4 |
Costs and Expenses, Related Party | 6.1 | 4 | 1.2 |
Deferred Revenue, Period Increase (Decrease) | (5.6) | 2.3 | 4 |
Related Party Transaction, Purchases from Related Party | 5.7 | 6.2 | 2.4 |
D.R. Horton, Inc. [Member] | Reimbursement To Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0.5 | 0.2 | |
D.R. Horton, Inc. [Member] | Reimbursement From Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0.4 | ||
D.R. Horton, Inc. [Member] | Deposits [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 30.8 | 27 | 34.5 |
D.R. Horton, Inc. [Member] | Other Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 61.3 | 36.3 | 13.1 |
Residential Real Estate [Member] | Real Estate | |||
Related Party Transaction [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,293.1 | $ 880.3 | $ 351.7 |
D.R. Horton, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Number of Lots Sold | Lot | 14,839 | 10,164 | 3,728 |
Revenue from Related Parties | $ 1,212.1 | $ 859.7 | $ 311.7 |
D.R. Horton, Inc. [Member] | Land [Member] | |||
Related Party Transaction [Line Items] | |||
Number of Lots Sold | Lot | 85 | 143 | 290 |
Revenue from Related Parties | $ 25.9 | $ 25.6 | $ 10.9 |
D.R. Horton, Inc. [Member] | Under Contract [Member] | |||
Related Party Transaction [Line Items] | |||
Number of Units in Real Estate Property | Lot | 21,000 | 14,000 | |
Related Party Transaction, Purchase Obligation from Parent | $ 1,582.7 | $ 1,022.2 | |
D.R. Horton, Inc. [Member] | Under Contract [Member] | Cash [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Deposit Liabilities | 143.1 | 92.2 | |
D.R. Horton, Inc. [Member] | Under Contract [Member] | Notes Payable, Other Payables [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Deposit Liabilities | $ 0.7 | $ 4.8 | |
D.R. Horton, Inc. [Member] | Right of First Offer [Member] | |||
Related Party Transaction [Line Items] | |||
Number of Units in Real Estate Property | Lot | 18,200 | 16,400 |
Fair Value, Not Measured at Fai
Fair Value, Not Measured at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 704.5 | $ 641.1 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 153.6 | 394.3 |
Long-term Debt, Fair Value | 723.7 | 673.5 |
Cash and cash equivalents | 153.6 | 394.3 |
Debt | 704.5 | 641.1 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 153.6 | 394.3 |
Long-term Debt, Fair Value | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Long-term Debt, Fair Value | 711.2 | 673.5 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Long-term Debt, Fair Value | $ 12.5 | $ 0 |
Summary of Quarterly Results _3
Summary of Quarterly Results of Operations (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 418.7 | $ 312.9 | $ 287.1 | $ 307.1 | $ 347.6 | $ 177.9 | $ 159.1 | $ 247.2 | $ 1,325.8 | $ 931.8 | $ 428.3 |
Income before income taxes | 58.8 | 21.1 | 37.6 | 29.2 | 32 | 10.3 | 13.7 | 22.2 | 146.6 | 78.1 | 45.7 |
Income tax expense | 14.7 | 5.2 | 9.2 | 7.1 | 7.5 | 0.2 | 3.3 | 5.4 | 36.1 | 16.4 | 9.4 |
Net income | 44.1 | 15.9 | 28.4 | 22.1 | 24.5 | 10.1 | 10.4 | 16.8 | 110.5 | 61.7 | 36.3 |
Net income attributable to noncontrolling interests | 0.1 | 0.1 | 0 | 0.1 | 0.3 | 0 | 0.8 | (0.1) | 0.3 | 0.9 | 3.3 |
Net income attributable to Forestar Group Inc. | $ 44 | $ 15.8 | $ 28.4 | $ 22 | $ 24.2 | $ 10.1 | $ 9.6 | $ 16.9 | $ 110.2 | $ 60.8 | $ 33 |
Net income (loss) per share -- basic | |||||||||||
Basic net income per common share attributable to Forestar Group Inc. | $ 0.89 | $ 0.32 | $ 0.59 | $ 0.46 | $ 0.50 | $ 0.21 | $ 0.20 | $ 0.35 | $ 2.25 | $ 1.26 | $ 0.79 |
Net income (loss) per share -- diluted | |||||||||||
Diluted net income per common share attributable to Forestar Group Inc. | $ 0.89 | $ 0.32 | $ 0.59 | $ 0.46 | $ 0.50 | $ 0.21 | $ 0.20 | $ 0.35 | $ 2.25 | $ 1.26 | $ 0.79 |
Depreciation | $ 0.4 | $ 0.3 | $ 0.3 |
Uncategorized Items - for-20210
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 335,000,000 |