Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 13, 2023 | Mar. 31, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-14122 | ||
Entity Registrant Name | D.R. Horton, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2386963 | ||
Entity Address, Address Line One | 1341 Horton Circle | ||
Entity Address, City or Town | Arlington | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76011 | ||
City Area Code | 817 | ||
Local Phone Number | 390-8200 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | DHI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 32.9 | ||
Entity Common Stock, Shares Outstanding | 333,184,374 | ||
Entity Central Index Key | 0000882184 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Dallas, Texas | ||
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 3,873.6 | $ 2,540.5 |
Restricted cash | 26.5 | 32.4 |
Total cash, cash equivalents and restricted cash | 3,900.1 | 2,572.9 |
Inventories: | ||
Construction in progress and finished homes | 9,001.4 | 9,798.2 |
Residential land and lots — developed and under development | 10,621.9 | 9,173.1 |
Land held for development | 50 | 110.8 |
Land held for sale | 8.7 | 29.4 |
Rental properties | 2,691.3 | 2,544.2 |
Total inventory | 22,373.3 | 21,655.7 |
Mortgage loans held for sale | 2,519.9 | 2,386 |
Deferred income taxes, net of valuation allowance of $14.8 million and $17.9 million at September 30, 2023 and 2022, respectively | 187.2 | 141.1 |
Property and equipment, net | 445.4 | 471.6 |
Other assets | 2,993 | 2,960.3 |
Goodwill | 163.5 | 163.5 |
Total assets | 32,582.4 | 30,351.1 |
LIABILITIES | ||
Accounts payable | 1,246.2 | 1,360.3 |
Accrued expenses and other liabilities | 3,103.8 | 3,138.3 |
Notes payable | 5,094.5 | 6,066.9 |
Total liabilities | 9,444.5 | 10,565.5 |
Commitments and Contingencies | ||
EQUITY | ||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 1,000,000,000 shares authorized, 401,202,253 shares issued and 334,848,565 shares outstanding at September 30, 2023 and 399,172,937 shares issued and 343,953,023 shares outstanding at September 30, 2022 | 4 | 4 |
Additional paid-in capital | 3,432.2 | 3,349.5 |
Retained earnings | 23,589.8 | 19,185.3 |
Treasury stock, 66,353,688 shares and 55,219,914 shares at September 30, 2023 and 2022, respectively, at cost | (4,329.8) | (3,142.5) |
Stockholders’ equity | 22,696.2 | 19,396.3 |
Noncontrolling interests | 441.7 | 389.3 |
Total equity | 23,137.9 | 19,785.6 |
Total liabilities and equity | $ 32,582.4 | $ 30,351.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 14.8 | $ 17.9 |
Preferred Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Preferred Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 401,202,253 | 399,172,937 |
Common Stock, Shares, Outstanding | 334,848,565 | 343,953,023 |
Treasury Stock, Common, Shares | 66,353,688 | 55,219,914 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 35,460.4 | $ 33,480 | $ 27,774.2 |
Cost of sales | 26,110 | 22,975.9 | 19,899.2 |
Selling, general and administrative expense | 3,248.8 | 2,933.7 | 2,556.2 |
Gain on sale of assets | 0 | 0 | (14) |
Loss on extinguishment of debt | 0 | 0 | 18.1 |
Other (income) expense | (213.1) | (59.3) | (41.6) |
Income before income taxes | 6,314.7 | 7,629.7 | 5,356.3 |
Income tax expense | 1,519.5 | 1,734.1 | 1,165.1 |
Net income | 4,795.2 | 5,895.6 | 4,191.2 |
Net income attributable to noncontrolling interests | 49.5 | 38.1 | 15.4 |
Net income attributable to D.R. Horton, Inc. | $ 4,745.7 | $ 5,857.5 | $ 4,175.8 |
Other comprehensive income, net of income tax: | |||
Basic net income per common share attributable to D.R. Horton, Inc. | $ 13.93 | $ 16.65 | $ 11.56 |
Weighted average number of common shares | 340.7 | 351.7 | 361.1 |
Diluted net income per common share attributable to D.R. Horton, Inc. | $ 13.82 | $ 16.51 | $ 11.41 |
Adjusted weighted average number of common shares | 343.3 | 354.8 | 365.8 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, Common | Non-controlling Interests |
Beginning Balances at Sep. 30, 2020 | $ 12,121.5 | $ 3.9 | $ 3,240.9 | $ 9,757.8 | $ (1,162.6) | $ 281.5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,191.2 | 4,175.8 | 15.4 | |||
Exercise of stock options | 6.6 | 6.6 | ||||
Stock issued under employee incentive plans | 16.2 | 0.1 | 16.1 | |||
Cash paid for shares withheld for taxes | (78.5) | 0 | (78.5) | 0 | 0 | 0 |
Stock based compensation expense | 91.4 | 91.4 | ||||
Cash dividends declared | (289.3) | (289.3) | ||||
Repurchases of common stock | (874) | (874) | ||||
Distributions to noncontrolling interests | (0.1) | (0.1) | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests | 31.2 | (1.7) | 32.9 | |||
Ending Balances at Sep. 30, 2021 | 15,216.2 | 4 | 3,274.8 | 13,644.3 | (2,036.6) | 329.7 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 5,895.6 | 5,857.5 | 38.1 | |||
Exercise of stock options | 7 | 7 | ||||
Stock issued under employee incentive plans | 26.2 | 26.2 | ||||
Cash paid for shares withheld for taxes | (62) | 0 | (62) | 0 | 0 | 0 |
Stock based compensation expense | 105.1 | 105.1 | ||||
Cash dividends declared | (316.5) | (316.5) | ||||
Repurchases of common stock | (1,105.9) | (1,105.9) | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests | 1.9 | (1.6) | 3.5 | |||
Noncontrolling Interest, Period Increase (Decrease) | 18 | 0 | 0 | 0 | 0 | 18 |
Ending Balances at Sep. 30, 2022 | 19,785.6 | 4 | 3,349.5 | 19,185.3 | (3,142.5) | 389.3 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,795.2 | 4,745.7 | 49.5 | |||
Exercise of stock options | 14.4 | 0 | 14.4 | |||
Stock issued under employee incentive plans | 16 | 16 | ||||
Cash paid for shares withheld for taxes | (56.1) | 0 | (56.1) | 0 | 0 | 0 |
Stock based compensation expense | 111.2 | 111.2 | ||||
Cash dividends declared | (341.2) | (341.2) | ||||
Repurchases of common stock | (1,187.3) | (1,187.3) | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests | 0.1 | (2.8) | 2.9 | |||
Ending Balances at Sep. 30, 2023 | $ 23,137.9 | $ 4 | $ 3,432.2 | $ 23,589.8 | $ (4,329.8) | $ 441.7 |
Consolidated Statements of To_2
Consolidated Statements of Total Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity | |||
Beginning Balances,shares | 343,953,023 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 1 | $ 0.90 | $ 0.80 |
Ending Balances, shares | 334,848,565 | 343,953,023 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning Balances,shares | 343,953,023 | 356,015,843 | 363,999,982 |
Exercise of stock options, shares | 603,823 | 292,290 | 757,487 |
Issuances under employee incentive plans, shares | 1,425,493 | 1,690,547 | 1,691,264 |
Treasury Stock, Shares, Acquired | (11,133,774) | (14,045,657) | (10,432,890) |
Ending Balances, shares | 334,848,565 | 343,953,023 | 356,015,843 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 4,795.2 | $ 5,895.6 | $ 4,191.2 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 91.6 | 81.4 | 82.1 |
Stock-based compensation expense | 111.2 | 105.1 | 91.4 |
Deferred income taxes | (45.9) | 29.1 | (10) |
Inventory and land option charges | 80.3 | 70.4 | 28.6 |
Gain on sale of assets | 0 | 0 | (14) |
Loss on extinguishment of debt | 0 | 0 | 18.1 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in construction in progress and finished homes | 861.8 | (2,059) | (1,734.9) |
Increase in residential land and lots — developed, under development, held for development and held for sale | (1,226.4) | (1,402.8) | (1,720.6) |
Increase in rental properties | (151.8) | (1,723.2) | (303.6) |
Decrease (increase) in other assets | 23.8 | (1,111.5) | (440.7) |
Increase in mortgage loans held for sale | (133.9) | (358.8) | (498.3) |
(Decrease) increase in accounts payable, accrued expenses and other liabilities | (101.8) | 1,035.5 | 845.1 |
Net cash provided by operating activities | 4,304.1 | 561.8 | 534.4 |
INVESTING ACTIVITIES | |||
Expenditures for property and equipment | (148.6) | (148.2) | (93.5) |
Proceeds from sale of assets | 52 | 0 | 37.6 |
Expenditures related to rental properties | 0 | 0 | (173.9) |
Payments related to business acquisitions, net of cash acquired | (212.9) | (271.5) | (24.5) |
Other investing activities | (0.7) | 4.8 | 2.1 |
Net cash used in investing activities | (310.2) | (414.9) | (252.2) |
FINANCING ACTIVITIES | |||
Proceeds from notes payable | 711 | 4,250 | 1,541.6 |
Repayment of notes payable | (1,823.9) | (3,801.2) | (826.3) |
Borrowings on mortgage repurchase facility, net | 51.3 | 123.7 | 362 |
Proceeds from stock associated with certain employee benefit plans | 25.5 | 33.2 | 22.7 |
Cash paid for shares withheld for taxes | (56.1) | (62) | (78.5) |
Cash dividends paid | (341.2) | (316.5) | (289.3) |
Repurchases of common stock | (1,178.5) | (1,131.5) | (848.4) |
Net proceeds from issuance of Forestar common stock | 0 | 1.7 | 33.5 |
Net other financing activities | (54.8) | 91.4 | (2.4) |
Net cash used in financing activities | (2,666.7) | (811.2) | (85.1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,327.2 | (664.3) | 197.1 |
Total cash, cash equivalents and restricted cash | 3,900.1 | 2,572.9 | 3,237.2 |
Supplemental cash flow information: | |||
Income taxes paid, net | 1,442 | 1,701.1 | 1,137.8 |
Supplemental disclosures of non-cash activities: | |||
Notes payable issued for inventory | 54.5 | 64.3 | 12.5 |
Stock issued under employee incentive plans | 111.4 | 130.9 | 124.7 |
Repurchases of common stock not settled | $ 0 | $ 0 | $ 25.6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of 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 D.R. Horton, Inc. and all of its wholly-owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. As of September 30, 2023, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% interest the Company does not own is accounted for as noncontrolling interests. All intercompany accounts, transactions and balances have been eliminated in consolidation. 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 Homebuilding 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 home, is generally satisfied in less than one year from the original contract date. Proceeds from home closings held for the Company’s benefit at title companies are included in homebuilding cash and cash equivalents in the consolidated balance sheets. When the Company executes sales contracts with its homebuyers, or when it requires advance payment from homebuyers for custom changes, upgrades or options related to their homes, the cash deposits received are recorded as liabilities until the homes are closed or the contracts are cancelled. The Company either retains or refunds to the homebuyer deposits on cancelled sales contracts, depending upon the applicable provisions of the contract or other circumstances. Forestar’s land and lot sales 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 a third-party buyer. Forestar’s revenues from land and lot sales to D.R. Horton are eliminated in the consolidated financial statements. The Company rarely purchases unimproved land for resale, but periodically may elect to sell parcels of land that do not fit into its strategic operating plans. Revenue from land sales is typically recognized on the closing date, which is generally when performance obligations are satisfied. The Company’s rental operations develop, construct, lease and sell residential multi-family and single-family rental properties. Revenue is recognized from the sale of these properties on the closing date, which is when performance obligations are satisfied. Rental income from these properties is recognized as other income. Financial services revenues associated with the Company’s title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur simultaneously as each home is closed. Revenues associated with the Company’s mortgage operations primarily include net gains on the sale of mortgage loans and servicing rights. The Company typically elects the fair value option for its mortgage loan originations whereby mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes and loan values are adjusted through revenues for subsequent changes in fair value until the loans are sold. Expected gains and losses from the sale of servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through revenues at the time of commitment. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the loan is sold. Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less when purchased to be cash equivalents. Proceeds from home closings held for the Company’s benefit at title companies, which totaled $301.8 million and $494.8 million at September 30, 2023 and 2022, respectively, are included in homebuilding cash and cash equivalents in the consolidated balance sheets. Cash balances of the Company’s captive insurance subsidiary, which are expected to be used to fund the subsidiary’s operations and pay future anticipated legal claims, were $70.2 million and $64.4 million at September 30, 2023 and 2022, respectively, and are included in cash and cash equivalents in the consolidated balance sheets. Restricted Cash The Company has cash that is restricted as to its use. Restricted cash related to homebuilding and land development operations includes customer deposits that are temporarily restricted in accordance with regulatory requirements. Restricted cash related to financial services is mortgagor related funds held by the Company for taxes and insurance on an interim basis until the loans are sold. Inventories and Cost of Sales Inventory includes the costs of direct land acquisition, land development and construction, capitalized interest, real estate taxes and direct overhead costs incurred during development and construction. Costs incurred after projects or homes are substantially complete, such as utilities, maintenance, and cleaning, are charged to selling, general and administrative (SG&A) expense as incurred. All indirect overhead costs, such as compensation of sales personnel, division and region management, and the costs of advertising and builder’s risk insurance are charged to SG&A expense as incurred. Land and development costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of residential lots are transferred to construction in progress when home construction begins. Home construction costs are specifically identified and recorded to individual homes. Cost of sales for homes closed includes the specific construction costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot based upon the total number of homes expected to be closed in each community. Cost of sales for lots sold includes all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the community. Any changes to the estimated total development costs subsequent to the initial home or lot closings in a community are generally allocated on a pro-rata basis to the remaining homes or lots in the community associated with the relevant development activity. Development and construction costs incurred related to the rental operations are recorded as rental property inventory. Cost of sales related to the rental operations include the specific construction costs and all applicable land acquisition, land development and related costs for each rental project. When a home is closed, the Company generally has not paid all incurred costs necessary to complete the home. A liability and a corresponding charge to cost of sales are recorded for the amount estimated to ultimately be paid related to completed homes that have been closed. Home construction budgets are compared to actual recorded costs to determine the additional costs remaining to be paid on each closed home. The Company rarely purchases land for resale. However, when the Company owns land or communities under development that do not fit into its development and construction plans, and the Company determines that it will sell the asset, the project is accounted for as land held for sale if certain criteria are met. The Company records land held for sale at the lesser of its carrying value or fair value less estimated costs to sell. At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment. If indicators of impairment are present for a community, the Company performs an impairment evaluation of the community, which includes an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. The Company’s estimate of undiscounted cash flows from communities analyzed may change and could result in a future need to record impairment charges to adjust the carrying value of these assets to their estimated fair value. There are several factors which could lead to changes in the estimates of undiscounted future cash flows for a given community. The most significant of these includes pricing and incentive levels actually realized by the community, the rate at which the homes are sold and the costs incurred to develop the lots and construct the homes. Pricing and incentive levels are often interrelated with sales pace in a community, such that a price reduction is typically expected to increase the sales pace. Further, both of these factors are heavily influenced by the competitive pressures facing a given community from both new and existing homes. If conditions in the broader economy, homebuilding industry or specific markets in which the Company operates worsen, and as the Company evaluates specific community pricing and incentives, construction and development plans, and its overall land sale strategies, it may be required to evaluate additional communities for potential impairment. This may result in impairment charges which could be significant. When events or circumstances indicate that the carrying values on finished homes in substantially completed communities and completed rental properties are greater than the fair values less estimated costs to sell these homes, impairment charges are also recorded. The key assumptions relating to inventory valuations are impacted by local market and economic conditions and are inherently uncertain. Due to uncertainties in the estimation process, actual results could differ from such estimates. See Note C. Capitalized Interest The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2023, 2022 and 2021, the Company’s active inventory exceeded its debt level, and all interest incurred was capitalized to inventory. See Note E. Land and Lot Purchase Contracts The Company enters into land and lot purchase contracts to acquire land or lots for the construction of homes. 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 C and L. Variable Interests Land purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under contract. There was one variable interest entity consolidated for $118.8 million and $64.3 million in the Company’s balance sheets at September 30, 2023 and 2022, respectively, because the Company determined it controlled the activities that most significantly impacted 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, 2023 and 2022, the deposits related to these contracts totaled $1.6 billion and $1.5 billion, 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. Repairs and maintenance costs are expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset. The depreciable life of model home furniture is 2 years, depreciable lives of other furniture and equipment typically range from 2 to 5 years, and depreciable lives of buildings and improvements typically range from 5 to 30 years. See Note F. Business Acquisitions The Company accounts for acquisitions of businesses by allocating the purchase price of the business to the various assets acquired and liabilities assumed at their respective fair values. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. Significant judgment is often required in estimating the fair value of assets acquired, particularly intangible assets. These estimates and assumptions are based on historical experience, information obtained from the management of the acquired companies and the Company’s estimates of significant assumptions that a market participant would use when determining fair value. While the Company believes the estimates and assumptions are reasonable, they are inherently uncertain. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. In December 2022, the Company acquired the homebuilding operations of Riggins Custom Homes in Northwest Arkansas for approximately $107 million in cash. The assets acquired included approximately 170 homes in inventory and 3,000 lots. The purchase price was recorded to inventory, and no goodwill was recorded as a result of this transaction. In June 2023, the Company acquired the homebuilding operations of Truland Homes for approximately $110 million in cash. Truland Homes operates in Baldwin County, Alabama and Northwest Florida. The assets acquired included approximately 155 homes in inventory and 620 lots. The Company also acquired control of approximately 660 additional lots through land purchase contracts. The purchase price was recorded to inventory, and no goodwill was recorded as a result of this transaction. Goodwill The Company records goodwill associated with its acquisitions of businesses when the purchase price of the business exceeds the fair value of the identifiable net assets acquired. Goodwill balances are evaluated for potential impairment on at least an annual basis by performing a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an operating segment with goodwill is less than its carrying amount. If the qualitative assessment indicates that additional impairment testing is required, then a quantitative assessment is performed to determine the operating segment’s fair value. The estimated fair value is determined by discounting the future cash flows of the operating segment to present value. If the carrying value of the operating segment exceeds its fair value, the Company records a goodwill impairment by the amount that an operating segment’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. As a result of the qualitative assessments performed in fiscal 2023, 2022 and 2021, no impairment charges were indicated or recorded. The Company’s goodwill balances by reporting segment were as follows: September 30, 2023 2022 (In millions) Northwest $ 2.2 $ 2.2 Southwest — — South Central 15.9 15.9 Southeast 6.0 6.0 East 60.5 60.5 North 49.7 49.7 Forestar 29.2 29.2 Total goodwill $ 163.5 $ 163.5 Warranty Claims The Company provides its homebuyers with a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty on major mechanical systems and a one-year limited warranty on other construction components. Since the Company subcontracts its construction work to subcontractors who typically provide it with an indemnity and a certificate of insurance prior to receiving payments for their work, claims relating to workmanship and materials are generally the primary responsibility of the subcontractors. Warranty liabilities have been established by charging cost of sales for each home delivered. The amounts charged are based on management’s estimate of the warranty-related costs expected to be incurred in the future. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates. See Note L. Legal Claims and Insurance The Company records expenses and liabilities for legal claims related to construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and other matters. The amounts recorded for these contingencies are based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes. The Company estimates and records receivables under its applicable insurance policies for these legal claims when recovery is probable. However, because the self-insured retentions under these policies are significant, the Company anticipates it will largely be self-insured. Additionally, the Company may have the ability to recover a portion of its losses from its subcontractors and their insurance carriers when the Company has been named as an additional insured on their insurance policies. See Note L. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense was approximately $64.7 million, $41.7 million and $36.1 million in fiscal 2023, 2022 and 2021, respectively, and is included in SG&A expense in the consolidated statements of operations. 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. See Note H. 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. The Company’s unrecognized tax benefits totaled $1.4 million and $2.9 million at September 30, 2023 and 2022, respectively. Earnings Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding during each year. Diluted earnings per share is based on the weighted average number of shares of common stock and dilutive securities outstanding during each year. See Note I. 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, 2023, the outstanding stock-based compensation awards include stock options and 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, 2023 have a remaining vesting period up to 4.6 years. Stock options are granted at exercise prices which equal the market value of the Company’s common stock at the date of the grant. All stock options outstanding at September 30, 2023 have vested and expire 10 years after the dates on which they were granted. 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 on the date of grant. The fair values of stock options granted are calculated on the date of grant using a Black-Scholes option pricing model. Determining the fair value of stock options requires judgment in developing assumptions and involves a number of estimates. These estimates include, but are not limited to, the expected stock price volatility over the term of the awards, the expected dividend yield and expected stock option exercise behavior. See Note K. Fair Value Measurements The Financial Accounting Standards Board’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. The Company considers the principal market and nonperformance risk associated with the Company’s counterparties when determining the fair value measurements, if applicable. Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis and are used for inventories, other mortgage loans and real estate owned on a nonrecurring basis, when events and circumstances indicate that the carrying value is not recoverable. See Note N. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s operating segments are its 81 homebuilding divisions, its majority-owned Forestar residential lot development operations, its financial services operations, its rental operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services segment and its rental operations segment. Homebuilding The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows: Northwest: Colorado, Oregon, Utah and Washington Southwest: Arizona, California, Hawaii, Nevada and New Mexico South Central: Arkansas, Oklahoma and Texas Southeast: Alabama, Florida, Louisiana and Mississippi East: Georgia, North Carolina, South Carolina and Tennessee North: Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Nebraska, Homebuilding is the Company’s core business, generating 90%, 95% and 96% of consolidated revenues in fiscal 2023, 2022 and 2021, respectively. The Company’s homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 118 markets across 33 states. Most of the revenue generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots. Rental The Company’s rental segment consists of single-family and multi-family rental operations. The single-family rental operations primarily construct and lease single-family homes within a community and then market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties. Forestar The Forestar segment is a residential lot development company with operations in 54 markets across 22 states. The Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance. Financial Services The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. Other In addition to its homebuilding, rental, Forestar and financial services operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, owns water rights and other water-related assets and owns non-residential real estate including ranch land and improvements. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented in the Eliminations and Other column in the tables that follow. The accounting policies of the reporting segments are described throughout Note A. Financial information relating to the Company’s reporting segments is as follows: September 30, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,920.2 $ 136.1 $ 616.0 $ 189.1 $ 12.2 $ 3,873.6 Restricted cash 6.5 3.3 — 16.7 — 26.5 Inventories: Construction in progress and finished homes 9,134.3 — — — (132.9) 9,001.4 Residential land and lots — developed and under development 8,992.3 — 1,760.8 — (131.2) 10,621.9 Land held for development 20.5 — 29.5 — — 50.0 Land held for sale 8.7 — — — — 8.7 Rental properties — 2,708.4 — — (17.1) 2,691.3 18,155.8 2,708.4 1,790.3 — (281.2) 22,373.3 Mortgage loans held for sale — — — 2,519.9 — 2,519.9 Deferred income taxes, net 229.8 (19.9) — — (22.7) 187.2 Property and equipment, net 415.0 2.4 5.9 4.1 18.0 445.4 Other assets 2,838.5 29.8 58.5 250.3 (184.1) 2,993.0 Goodwill 134.3 — — — 29.2 163.5 $ 24,700.1 $ 2,860.1 $ 2,470.7 $ 2,980.1 $ (428.6) $ 32,582.4 Liabilities Accounts payable $ 1,033.7 $ 698.6 $ 68.4 $ 0.1 $ (554.6) $ 1,246.2 Accrued expenses and other liabilities 2,585.5 43.2 337.4 280.4 (142.7) 3,103.8 Notes payable 2,329.9 400.0 695.0 1,669.6 — 5,094.5 $ 5,949.1 $ 1,141.8 $ 1,100.8 $ 1,950.1 $ (697.3) $ 9,444.5 _____________ (1) Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions. September 30, 2022 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,040.7 $ 109.9 $ 264.8 $ 103.3 $ 21.8 $ 2,540.5 Restricted cash 11.3 1.4 — 19.7 — 32.4 Inventories: Construction in progress and finished homes 9,951.5 — — — (153.3) 9,798.2 Residential land and lots — developed and under development 7,322.5 — 1,932.6 — (82.0) 9,173.1 Land held for development 21.0 — 89.8 — — 110.8 Land held for sale 29.4 — — — — 29.4 Rental properties — 2,572.1 — — (27.9) 2,544.2 17,324.4 2,572.1 2,022.4 — (263.2) 21,655.7 Mortgage loans held for sale — — — 2,386.0 — 2,386.0 Deferred income taxes, net 146.3 (7.1) — — 1.9 141.1 Property and equipment, net 361.8 2.0 5.7 4.3 97.8 471.6 Other assets 2,266.5 18.4 50.1 492.5 132.8 2,960.3 Goodwill 134.3 — — — 29.2 163.5 $ 22,285.3 $ 2,696.7 $ 2,343.0 $ 3,005.8 $ 20.3 $ 30,351.1 Liabilities Accounts payable $ 1,149.1 $ 233.6 $ 72.2 $ 0.2 $ (94.8) $ 1,360.3 Accrued expenses and other liabilities 2,365.7 25.0 365.4 596.2 (214.0) 3,138.3 Notes payable 2,942.6 800.0 706.0 1,618.3 — 6,066.9 $ 6,457.4 $ 1,058.6 $ 1,143.6 $ 2,214.7 $ (308.8) $ 10,565.5 _____________ (1) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments. Year Ended September 30, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 31,641.0 $ — $ — $ — $ — $ 31,641.0 Land/lot sales and other 102.2 — 1,436.9 — (1,126.7) 412.4 Rental property sales — 2,605.5 — — — 2,605.5 Financial services — — — 801.5 — 801.5 31,743.2 2,605.5 1,436.9 801.5 (1,126.7) 35,460.4 Cost of sales Home sales (2) 24,201.3 — — — (248.5) 23,952.8 Land/lot sales and other 53.8 — 1,108.9 — (959.9) 202.8 Rental property sales — 1,886.8 — — (12.7) 1,874.1 Inventory and land option charges 60.7 6.7 24.0 — (11.1) 80.3 24,315.8 1,893.5 1,132.9 — (1,232.2) 26,110.0 Selling, general and administrative expense 2,239.9 290.2 97.7 594.9 26.1 3,248.8 Other (income) expense (78.8) (102.4) (15.3) (76.7) 60.1 (213.1) Income before income taxes $ 5,266.3 $ 524.2 $ 221.6 $ 283.3 $ 19.3 $ 6,314.7 Summary Cash Flow Information Depreciation and amortization $ 64.0 $ 2.4 $ 3.0 $ 2.1 $ 20.1 $ 91.6 Cash provided by operating activities $ 3,078.4 $ 739.2 $ 364.1 $ 13.2 $ 109.2 $ 4,304.1 _____________ (1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Year Ended September 30, 2022 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 31,861.7 $ — $ — $ — $ — $ 31,861.7 Land/lot sales and other 61.4 — 1,519.1 — (1,267.4) 313.1 Rental property sales — 510.2 — — — 510.2 Financial services — — — 795.0 — 795.0 31,923.1 510.2 1,519.1 795.0 (1,267.4) 33,480.0 Cost of sales Home sales (2) 22,715.6 — — — (197.9) 22,517.7 Land/lot sales and other 39.1 — 1,182.7 — (1,072.3) 149.5 Rental property sales — 243.4 — — (5.1) 238.3 Inventory and land option charges 57.2 0.8 12.4 — — 70.4 22,811.9 244.2 1,195.1 — (1,275.3) 22,975.9 Selling, general and administrative expense 2,186.7 91.1 93.6 547.6 14.7 2,933.7 Other (income) expense (16.4) (27.1) (5.4) (43.2) 32.8 (59.3) Income before income taxes $ 6,940.9 $ 202.0 $ 235.8 $ 290.6 $ (39.6) $ 7,629.7 Summary Cash Flow Information Depreciation and amortization $ 62.5 $ 1.0 $ 2.7 $ 1.9 $ 13.3 $ 81.4 Cash provided by (used in) operating activities $ 1,916.7 $ (1,391.0) $ 108.7 $ (10.5) $ (62.1) $ 561.8 _____________ (1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Year Ended September 30, 2021 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 26,502.6 $ — $ — $ — $ — $ 26,502.6 Land/lot sales and other 75.0 — 1,325.8 — (1,188.8) 212.0 Rental property sales — 267.8 — — (31.8) 236.0 Financial services — — — 823.6 — 823.6 26,577.6 267.8 1,325.8 823.6 (1,220.6) 27,774.2 Cost of sales Home sales (2) 19,748.4 — — — (140.1) 19,608.3 Land/lot sales and other 56.2 — 1,093.6 — (1,030.5) 119.3 Rental property sales — 160.8 — — (17.8) 143.0 Inventory and land option charges 24.9 0.7 3.0 — — 28.6 19,829.5 161.5 1,096.6 — (1,188.4) 19,899.2 Selling, general and administrative expense 1,945.6 44.6 68.4 488.3 9.3 2,556.2 Gain on sale of assets — — (2.5) — (11.5) (14.0) Loss on extinguishment of debt — — 18.1 — — 18.1 Other (income) expense (10.3) (24.8) (1.4) (29.3) 24.2 (41.6) Income before income taxes $ 4,812.8 $ 86.5 $ 146.6 $ 364.6 $ (54.2) $ 5,356.3 Summary Cash Flow Information Depreciation and amortization $ 63.1 $ 5.1 $ 2.2 $ 1.7 $ 10.0 $ 82.1 Cash provided by (used in) operating activities $ 1,239.8 $ (410.0) $ (303.1) $ (195.8) $ 203.5 $ 534.4 _____________ (1) Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Homebuilding Inventories by Reporting Segment (1) September 30, 2023 2022 (In millions) Northwest $ 1,907.5 $ 1,802.2 Southwest 3,133.0 2,801.7 South Central 3,810.5 3,931.7 Southeast 3,958.5 4,091.1 East 3,024.7 2,542.7 North 2,078.0 1,935.7 Corporate and unallocated (2) 243.6 219.3 $ 18,155.8 $ 17,324.4 ______________________________________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Year Ended September 30, 2023 2022 2021 (In millions) Revenues Northwest $ 2,582.4 $ 2,658.4 $ 2,516.6 Southwest 4,282.8 4,840.7 4,071.0 South Central 7,612.6 8,192.3 6,111.2 Southeast 8,760.8 7,951.2 7,079.6 East 5,325.3 5,318.1 4,459.0 North 3,179.3 2,962.4 2,340.2 $ 31,743.2 $ 31,923.1 $ 26,577.6 Inventory and Land Option Charges Northwest $ 6.6 $ 7.0 $ 0.6 Southwest 11.3 6.3 3.0 South Central 7.6 9.9 5.3 Southeast 14.6 13.5 10.2 East 8.4 12.1 2.4 North 12.2 8.4 3.4 $ 60.7 $ 57.2 $ 24.9 Income before Income Taxes (1) Northwest $ 391.1 $ 560.8 $ 510.8 Southwest 489.3 968.3 653.1 South Central 1,388.3 1,910.7 1,150.2 Southeast 1,711.1 1,918.5 1,371.9 East 935.7 1,126.3 795.1 North 350.8 456.3 331.7 $ 5,266.3 $ 6,940.9 $ 4,812.8 ______________________________________________ (1) Expenses maintained at the corporate level consist primarily of homebuilding interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances. |
Inventory
Inventory | 12 Months Ended |
Sep. 30, 2023 | |
Inventory Impairments and Land Option Cost Write-Offs [Abstract] | |
Inventory | INVENTORIES At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As of September 30, 2023, the Company performed detailed impairment evaluations of communities and land inventories and determined that communities with a combined carrying value of $33.8 million were impaired. As a result, impairment charges of $5.0 million were recorded during the three months ended September 30, 2023 to reduce the carrying value of the related inventory to fair value. During fiscal 2023, impairment charges totaled $19.0 million compared to $3.8 million and $5.6 million in fiscal 2022 and 2021, respectively. During fiscal 2023, 2022 and 2021, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $61.3 million, $66.6 million and $23.0 million, respectively. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations. |
Notes Payable
Notes Payable | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTES PAYABLE The Company’s notes payable at their carrying amounts consist of the following: September 30, 2023 2022 (In millions) Homebuilding Unsecured: Revolving credit facility $ — $ — 4.75% senior notes due 2023 (1) — 299.9 5.75% senior notes due 2023 (1) — 399.6 2.5% senior notes due 2024 (1) 499.0 498.2 2.6% senior notes due 2025 (1) 498.0 497.1 1.3% senior notes due 2026 (1) 596.6 595.5 1.4% senior notes due 2027 (1) 496.5 495.7 Other secured notes 239.8 156.6 2,329.9 2,942.6 Rental Unsecured: Revolving credit facility 400.0 800.0 Forestar Unsecured: Revolving credit facility — — 3.85% senior notes due 2026 (2) 397.4 396.5 5.0% senior notes due 2028 (2) 297.6 297.0 Other secured notes — 12.5 695.0 706.0 Financial Services Mortgage repurchase facilities: Committed facility 1,373.3 1,618.3 Uncommitted facility 296.3 — 1,669.6 1,618.3 Total notes payable $ 5,094.5 $ 6,066.9 _____________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $8.4 million and $12.2 million at September 30, 2023 and 2022, respectively. (2) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $5.0 million and $6.5 million at September 30, 2023 and 2022, respectively. As of September 30, 2023, maturities of consolidated notes payable, assuming the mortgage repurchase facility is not extended or renewed, are $1.9 billion in fiscal 2024, $522.7 million in fiscal 2025, $1.3 billion in fiscal 2026, $607.2 million in fiscal 2027, $800 million in fiscal 2028 and none thereafter. Homebuilding The Company has a $2.19 billion senior unsecured homebuilding revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to 100% of the total revolving credit commitments. Letters of credit issued under the facility reduce the available borrowing capacity. The maturity date of the facility is October 28, 2027. At September 30, 2023, there were no borrowings outstanding and $226.6 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $1.96 billion. In February 2023, the Company repaid $300 million principal amount of its 4.75% senior notes at maturity, and in July 2023, the Company redeemed $400 million principal amount of its 5.75% senior notes due August 2023. The senior notes were redeemed at a price equal to 100% of the principal amount of the notes, together with accrued and unpaid interest. The Company’s homebuilding revolving credit facility imposes restrictions on its operations and activities, including requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if the leverage ratio exceeds a certain level. 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. The credit agreement governing the facility and the indentures governing the senior notes also impose restrictions on the creation of secured debt and liens. At September 30, 2023, the Company was in compliance with all of the covenants, limitations and restrictions of its homebuilding revolving credit facility and public debt obligations. The Company’s homebuilding revolving credit facility and homebuilding senior notes are guaranteed by D.R. Horton, Inc.’s significant wholly-owned homebuilding subsidiaries. D.R. Horton has an automatically effective universal shelf registration statement filed with the SEC in July 2021, registering debt and equity securities that the Company may issue from time to time in amounts to be determined. The key terms of the Company’s homebuilding senior notes outstanding as of September 30, 2023 are summarized below. Notes Payable Principal Amount Date Issued Date Due Redeemable Effective (In millions) 2.5% senior notes $500 October 2019 October 15, 2024 Yes 2.7% 2.6% senior notes $500 May 2020 October 15, 2025 Yes 2.8% 1.3% senior notes $600 August 2021 October 15, 2026 Yes 1.5% 1.4% senior notes $500 October 2020 October 15, 2027 Yes 1.6% _____________ (1) The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the greater of 100% of their principal amount or the present value of the remaining scheduled payments discounted to the redemption date, plus accrued and unpaid interest. In addition, the 2.5% senior notes, the 2.6% senior notes and the 1.3% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is one month prior to the final maturity date of the notes. The 1.4% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is two months prior to the final maturity of the notes. (2) Interest is payable semi-annually on each of the series of senior notes. The annual effective interest rate is calculated after giving effect to the amortization of debt issuance costs and the discount, if applicable. All series of homebuilding senior notes and borrowings under the homebuilding revolving credit facility are senior obligations and rank pari passu in right of payment to all existing and future unsecured indebtedness and senior to all existing and future indebtedness expressly subordinated to them. The homebuilding senior notes and borrowings under the homebuilding revolving credit facility are guaranteed by entities that hold approximately 76% of the Company’s assets. Upon the occurrence of both a change of control of the Company and a ratings downgrade event, as defined in the indentures governing its senior notes, the Company would be required in certain circumstances to offer to repurchase these notes at 101% of their principal amount, along with accrued and unpaid interest. Also, a change of control as defined in the revolving credit facility would constitute an event of default under the revolving credit facility, which could result in the acceleration of any borrowings outstanding under the facility and the termination of the commitments thereunder. In July 2019, the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities. The authorization has no expiration date. All of the $500 million authorization was remaining at September 30, 2023. Rental The Company’s rental subsidiary, DRH Rental, has a $1.025 billion senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $1.25 billion, subject to certain conditions and availability of additional bank commitments. Availability under the rental revolving credit facility is subject to a borrowing base calculation based on the book value of DRH Rental’s real estate assets and unrestricted cash. 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 total revolving credit commitments. The maturity date of the facility is March 4, 2026. Borrowings and repayments under the facility totaled $700 million and $1.1 billion, respectively, during fiscal 2023. At September 30, 2023, there were $400 million of borrowings outstanding at a 7.7% annual interest rate, and no letters of credit issued under the facility, resulting in available capacity of $625 million. In October 2023, DRH Rental’s credit facility was amended to extend its maturity date to October 10, 2027 and to increase its accordion feature to allow for an increase in the size of the facility up to $2.0 billion, subject to certain conditions and availability of additional bank commitments. The rental revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require DRH Rental to maintain 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, 2023, DRH Rental was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility. The rental revolving credit facility is guaranteed by DRH Rental’s wholly-owned subsidiaries that are not immaterial subsidiaries or have not been designated as unrestricted subsidiaries. The rental revolving credit facility is not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of the Company’s homebuilding, Forestar or financial services operations. Forestar Forestar has a $410 million senior unsecured revolving credit facility 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 facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the total revolving credit commitments. Borrowings under the revolving credit facility are subject to a borrowing base calculation based on the book value of Forestar’s real estate assets and unrestricted cash. Letters of credit issued under the facility reduce the available borrowing capacity. The maturity date of the facility is October 28, 2026. At September 30, 2023, there were no borrowings outstanding and $27.7 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $382.3 million. As of September 30, 2023, Forestar had $700 million principal amount of senior notes issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, which represent unsecured obligations of Forestar. These notes include $400 million principal amount of 3.85% senior notes that mature May 15, 2026 and $300 million principal amount of 5.0% senior notes that mature March 1, 2028. The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 4.1% and 5.2%, respectively. Forestar’s senior notes may be redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreements. The Forestar revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require Forestar to maintain 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, 2023, Forestar was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and senior note obligations. Forestar’s revolving credit facility and its senior notes are guaranteed by Forestar’s wholly-owned subsidiaries that are not immaterial subsidiaries or have not been designated as unrestricted subsidiaries. They are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of the Company’s homebuilding, rental or financial services operations. In April 2020, Forestar’s Board of Directors authorized the repurchase of up to $30 million of Forestar’s debt securities. The authorization has no expiration date. All of the $30 million authorization was remaining at September 30, 2023. Financial Services The Company’s mortgage subsidiary, DHI Mortgage, has two mortgage repurchase facilities, one of which is committed and the other of which is uncommitted, that provide financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to counterparties upon receipt of funds from the counterparties. DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames in accordance with the terms of the mortgage repurchase facilities. The committed mortgage repurchase facility has a total capacity of $2.0 billion and a maturity date of February 16, 2024. The capacity of the committed mortgage repurchase facility can be increased to $2.3 billion subject to the availability of additional commitments. At September 30, 2023, DHI Mortgage had an obligation of $1.4 billion under the committed mortgage repurchase facility at a 6.9% annual interest rate. In April 2023, DHI Mortgage entered into a master repurchase agreement providing for an uncommitted mortgage repurchase facility. At September 30, 2023, DHI Mortgage could borrow up to $300 million under the uncommitted mortgage repurchase facility and had an obligation of $296.3 million at a 6.6% annual interest rate. As of September 30, 2023, $2.22 billion of mortgage loans held for sale with a collateral value of $2.18 billion were pledged under the committed mortgage repurchase facility, and $323.0 million of mortgage loans held for sale with a collateral value of $300.9 million were pledged under the uncommitted mortgage repurchase facility. The facilities contain financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable indebtedness to tangible net worth ratio and its minimum required liquidity. At September 30, 2023, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facilities. These mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of the Company’s homebuilding, rental or Forestar operations. |
Capitalized Interest
Capitalized Interest | 12 Months Ended |
Sep. 30, 2023 | |
Interest Costs Incurred [Abstract] | |
Capitalized Interest | CAPITALIZED INTEREST The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years ended September 30, 2023, 2022 and 2021: Year Ended September 30, 2023 2022 2021 (In millions) Capitalized interest, beginning of year $ 237.4 $ 217.7 $ 207.7 Interest incurred (1) 203.5 162.5 152.2 Interest charged to cost of sales (154.5) (142.8) (142.2) Capitalized interest, end of year $ 286.4 $ 237.4 $ 217.7 _________________________ |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | NOTE F – PROPERTY AND EQUIPMENT The Company’s property and equipment balances and the related accumulated depreciation at September 30, 2023 and 2022 are summarized below. September 30, 2023 2022 (In millions) Homebuilding Buildings and improvements $ 414.6 $ 349.6 Model home furniture 147.0 133.4 Office furniture and equipment 113.5 132.5 Land 39.1 35.5 Accumulated depreciation (299.2) (289.2) Total homebuilding 415.0 361.8 Rental, net 2.4 2.0 Forestar, net 5.9 5.7 Financial services, net 4.1 4.3 Other businesses and eliminations, net 18.0 97.8 Property and equipment, net $ 445.4 $ 471.6 Depreciation expense was $82.9 million, $72.0 million and $73.3 million in fiscal 2023, 2022 and 2021, respectively. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Sep. 30, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans | MORTGAGE LOANS Mortgage Loans Held for Sale and Related Derivatives Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. The Company typically sells the servicing rights for the majority of loans when the loans are sold. Servicing rights retained are typically sold within six months of loan origination. At September 30, 2023, mortgage loans held for sale of $2.5 billion had an aggregate outstanding principal balance of $2.6 billion. At September 30, 2022, mortgage loans held for sale of $2.4 billion had an aggregate outstanding principal balance of $2.5 billion. During the years ended September 30, 2023, 2022 and 2021, mortgage loans originated totaled $21.2 billion, $19.5 billion and $16.0 billion, respectively, and mortgage loans sold totaled $21.0 billion, $18.9 billion and $15.5 billion, respectively. The Company had gains on sales of loans and servicing rights of $538.4 million, $561.7 million and $619.1 million during the years ended September 30, 2023, 2022 and 2021, respectively. Net gains on sales of loans and servicing rights are included in revenues in the consolidated statements of operations. During fiscal 2023, approximately 64% of the Company’s mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 34% were sold to one other major financial entity. To manage the interest rate risk inherent in its mortgage operations, the Company hedges its risk using derivative instruments, generally forward sales of mortgage-backed securities (MBS), which are referred to as “hedging instruments” in the following discussion. The Company does not enter into or hold derivatives for trading or speculative purposes. Newly originated loans that have been closed but not committed to third-party purchasers are hedged to mitigate the risk of changes in their fair value. Hedged loans are committed to third-party purchasers typically within three days after origination. The notional amounts of the hedging instruments used to hedge mortgage loans held for sale may vary in relationship to the underlying loan amounts, depending on the movements in the value of each hedging instrument relative to the value of the underlying mortgage loans. The fair value change related to the hedging instruments generally offsets the fair value change in the mortgage loans held for sale. The net fair value change, which for the years ended September 30, 2023, 2022 and 2021 was not significant, is recognized in revenues in the consolidated statements of operations. At September 30, 2023 and 2022, the Company’s mortgage loans held for sale that were not committed to third-party purchasers totaled $1.7 billion and $1.6 billion, respectively. The Company also uses hedging instruments as part of a program to offer below market interest rate financing to its homebuyers. At September 30, 2023 and 2022, the Company had MBS totaling $1.1 billion and $532.4 million, respectively, that did not yet have interest rate lock commitments (IRLCs) or closed loans created or assigned and recorded an asset of $15.7 million and $4.8 million, respectively, for the fair value of such MBS position. Loan Commitments and Related Derivatives The Company is party to IRLCs, which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria. At September 30, 2023 and 2022, the notional amount of IRLCs, which are accounted for as derivative instruments recorded at fair value, totaled $2.7 billion and $4.0 billion, respectively. The Company manages interest rate risk related to its IRLCs through the use of best-efforts whole loan delivery commitments and hedging instruments. These instruments are considered derivatives in an economic hedge and are accounted for at fair value with gains and losses recognized in revenues in the consolidated statements of operations. At September 30, 2023 and 2022, the notional amount of best-efforts whole loan delivery commitments totaled $18.9 million and $23.5 million, respectively, and the notional amount of hedging instruments related to the remaining IRLCs totaled $2.6 billion and $3.8 billion, respectively. Other Mortgage Loans and Loss Reserves Mortgage loans are sold with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market. The majority of other mortgage loans consists of loans repurchased due to these limited recourse obligations. Typically, these loans are impaired, and some result in real estate owned through the foreclosure process. At September 30, 2023 and 2022, the Company’s total other mortgage loans and real estate owned, before loss reserves, totaled $14.9 million and $14.5 million, respectively. The Company has recorded reserves for estimated losses on other mortgage loans, real estate owned and future loan repurchase obligations due to the limited recourse provisions, all of which are recorded as reductions of revenue. The loss reserve for loan repurchase and settlement obligations is estimated based on historical experience, analysis of the volume of mortgages originated, discussions with mortgage purchasers and current housing and credit market conditions, as well as known and projected mortgage loan repurchase requests. The reserve balances at September 30, 2023 and 2022 totaled $9.9 million and $7.5 million, respectively. Other mortgage loans and real estate owned net of the related loss reserves are included in other assets, while loan repurchase obligations are included in accrued expenses and other liabilities in the Company’s consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income Tax Expense The components of the Company’s income tax expense are as follows: Year Ended September 30, 2023 2022 2021 (In millions) Current tax expense: Federal $ 1,293.0 $ 1,448.9 $ 978.1 State 272.4 256.1 197.0 1,565.4 1,705.0 1,175.1 Deferred tax expense (benefit): Federal (39.0) 21.2 (12.7) State (6.9) 7.9 2.7 (45.9) 29.1 (10.0) Total income tax expense $ 1,519.5 $ 1,734.1 $ 1,165.1 The Company’s effective tax rate was 24.1%, 22.7% and 21.8% in fiscal 2023, 2022 and 2021, respectively. The effective tax rates for all years include an expense for state income taxes and tax benefits related to stock-based compensation and federal energy efficient homes tax credits. Reconciliation of Expected Income Tax Expense Differences between income tax expense and tax computed by applying the federal statutory rate of 21% to income before income taxes during each year is due to the following: Year Ended September 30, 2023 2022 2021 (In millions) Income taxes at federal statutory rate $ 1,326.1 $ 1,602.2 $ 1,124.8 Increase (decrease) in tax resulting from: State income taxes, net of federal benefit 208.1 210.0 166.9 Valuation allowance (3.1) (2.1) (3.3) Tax credits (44.4) (100.8) (116.3) Excess tax benefit from stock-based compensation (25.6) (20.1) (38.4) Tax contingencies (1.5) — (6.0) Other 59.9 44.9 37.4 Total income tax expense $ 1,519.5 $ 1,734.1 $ 1,165.1 Deferred Income Taxes Deferred tax assets and liabilities reflect the tax consequences of temporary differences between the financial statement bases of assets and liabilities and their tax bases, tax losses and credit carryforwards. Components of deferred income taxes are summarized as follows: September 30, 2023 2022 (In millions) Deferred tax assets: Inventory costs $ 67.8 $ 74.0 Inventory impairments 5.8 9.5 Warranty and construction defect costs 281.2 239.5 Net operating loss carryforwards 42.2 44.1 Tax credit carryforwards 6.8 6.4 Incentive compensation plans 88.0 84.7 Other 7.0 12.7 Total deferred tax assets 498.8 470.9 Valuation allowance (14.8) (17.9) Total deferred tax assets, net of valuation allowance 484.0 453.0 Deferred tax liabilities: Deferral of profit on home closings 163.6 209.4 Depreciation of fixed assets 46.3 30.5 Deferral of income 23.4 18.5 Undistributed earnings of subsidiary 51.7 27.3 Other 11.8 26.2 Total deferred tax liabilities 296.8 311.9 Deferred income taxes, net $ 187.2 $ 141.1 The Company has $29.3 million of tax benefits for a federal net operating loss (NOL) carryforward. The utilization of the federal NOL is subject to IRC Section 382 limitations; however, it is expected that all of the federal NOL will be utilized within the carryforward period. D.R. Horton has $11.9 million of tax benefits for state NOL carryforwards that expire at various times depending on the tax jurisdiction. Of this amount, $4.5 million of the tax benefits expire over the next ten years and the remaining $7.4 million expire from fiscal years 2034 to 2043. Forestar has $1.0 million of tax benefits for state NOL carryforwards that expire at various times depending on the tax jurisdiction. 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. Valuation Allowance The Company has a valuation allowance of $14.8 million and $17.9 million at September 30, 2023 and 2022, respectively, related to deferred tax assets for state NOL, state capital loss and tax credit carryforwards that are expected to expire before being realized. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance with respect to the remaining state NOL and tax credit carryforwards. Any reversal of the valuation allowance in future periods will impact the Company’s effective tax rate. Unrecognized Tax Benefits Unrecognized tax benefits are the differences between tax positions taken or expected to be taken in a tax return and the benefits recognized in the financial statements. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2023 and 2022 is as follows: Year Ended September 30, 2023 2022 (In millions) Unrecognized tax benefits, beginning of year $ 2.9 $ 2.9 Additions for tax positions taken in the current or prior years — — Settlements (1.5) — Unrecognized tax benefits, end of year $ 1.4 $ 2.9 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $1.4 million and $2.9 million in fiscal 2023 and 2022, respectively. The Company had no accrued interest or penalties related to unrecognized tax benefits in fiscal 2023 or 2022. The Company classifies interest expense and penalties on income taxes as income tax expense. Regulations and Legislation D.R. Horton is subject to federal income tax and state income tax in multiple jurisdictions. The statute of limitations for D.R. Horton’s major tax jurisdictions remains open for examination for fiscal years 2019 through 2023. Fiscal year 2019 is open with respect to a federal refund claim related to additional energy efficient tax credits. This refund claim is currently under audit by the Internal Revenue Service. D.R. Horton is under audit by various states; however, the Company is not aware of any significant findings by the state taxing authorities. Forestar is subject to federal income tax and state income tax in multiple jurisdictions. The statute of limitations for Forestar’s federal income tax remains open for examination for tax years 2020 through 2023. The statute of limitations for Forestar’s major state tax jurisdictions generally remains open for examination for tax years 2018 through 2023. Forestar is not currently under audit for federal or state income taxes. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share. Year Ended September 30, 2023 2022 2021 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 4,745.7 $ 5,857.5 $ 4,175.8 Denominator: Denominator for basic earnings per share — weighted average common shares 340.7 351.7 361.1 Effect of dilutive securities: Employee stock awards 2.6 3.1 4.7 Denominator for diluted earnings per share — adjusted weighted average common shares 343.3 354.8 365.8 Basic net income per common share attributable to D.R. Horton, Inc. $ 13.93 $ 16.65 $ 11.56 Diluted net income per common share attributable to D.R. Horton, Inc. $ 13.82 $ 16.51 $ 11.41 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY D.R. Horton has an automatically effective universal shelf registration statement, filed with the SEC in July 2021, registering debt and equity securities that it may issue from time to time in amounts to be determined. At September 30, 2023, the Company had 401,202,253 shares of common stock issued and 334,848,565 shares outstanding. No shares of preferred stock were issued or outstanding. In April 2023, the Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s common stock, replacing the previous authorization. During fiscal 2023, the Company repurchased 11.1 million shares of its common stock at a total cost, including commissions and excise taxes, of $1.2 billion. At September 30, 2023, there was $234.0 million remaining on the repurchase authorization. In October 2023, the Board of Directors authorized the repurchase of up to $1.5 billion of the Company’s common stock, replacing the previous authorization, which at that time had only $32.8 million remaining due to repurchases made subsequent to year end. The authorization has no expiration date. The Board of Directors approved and paid quarterly cash dividends of $0.25 per common share in fiscal 2023 and $0.225 per common share in fiscal 2022. In October 2023, the Board of Directors approved a quarterly cash dividend of $0.30 per common share, payable on November 28, 2023, to stockholders of record on November 21, 2023. Forestar has an effective shelf registration statement, filed with the SEC in October 2021, registering $750 million of equity securities, of which $300 million was reserved for sales under its at-the-market equity offering (ATM) program that became effective in November 2021. During fiscal 2023, there were no shares issued under Forestar’s ATM program. At September 30, 2023, $748.2 million remained available for issuance under Forestar’s shelf registration statement, of which $298.2 million was reserved for sales under its ATM program. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Employee Benefits Plans | EMPLOYEE BENEFIT PLANS The Company offers its employees a comprehensive compensation and benefits package, which includes a broad range of benefits, including medical, dental and vision healthcare insurance and paid parental leave. In addition to base pay, eligible employees may participate in the Company’s 401(k) plan, employee stock purchase plan, short-term incentive bonus program and/or its stock compensation plans, as described below. Deferred Compensation 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. The Company recorded $40.2 million, $35.4 million and $30.3 million of expense for matching contributions in fiscal 2023, 2022 and 2021, respectively. The Company’s Supplemental Executive Retirement Plan (SERP) is a non-qualified deferred compensation program that provides benefits payable to certain management employees upon retirement, death or termination of employment. Under the SERP, the Company accrues an unfunded benefit based on a percentage of the eligible employees’ salaries, as well as an interest factor based upon a predetermined formula. The Company’s liabilities related to the SERP were $58.9 million and $52.1 million at September 30, 2023 and 2022, respectively. The Company recorded $8.3 million, $7.7 million and $7.0 million of expense for this plan in fiscal 2023, 2022 and 2021, respectively. The Company has a deferred compensation plan available to a select group of employees which allows participating employees to contribute compensation into the plan on a before tax basis and defer income taxation on the contributions until the funds are withdrawn from the plan. The participating employees designate investments for their contributions; however, the Company is not required to invest the contributions in the designated investments. The Company’s net liabilities related to the deferred compensation plan were $148.2 million and $119.5 million at September 30, 2023 and 2022, respectively. The Company records as SG&A expense the amount that the employee contributions would have earned had the funds been invested in the designated investments. Related to this plan, the Company recorded a charge to expense of $17.0 million in fiscal 2023, a credit to expense of $24.0 million in fiscal 2022 and a charge to expense of $21.7 million in fiscal 2021. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan provides eligible employees the opportunity to purchase common stock of the Company at a discounted price of 85% of the fair market value of the stock on the designated dates of purchase. The price to eligible employees may be further discounted depending on the average fair market value of the stock during the period and certain other criteria. Under the terms of the plan, the total fair market value of common stock that an eligible employee may purchase each year is limited to the lesser of 15% of the employee’s annual compensation or $25,000. Under the plan, employees purchased 143,960 shares for $11.0 million in fiscal 2023, 164,193 shares for $10.7 million in fiscal 2022 and 112,995 shares for $7.5 million in fiscal 2021. At September 30, 2023, the Company had 2.4 million shares of common stock reserved for issuance pursuant to the Employee Stock Purchase Plan. Incentive Bonus Plan The Company’s Incentive Bonus Plan provides for the Compensation Committee to award short-term performance bonuses to senior management based upon the level of achievement of certain criteria. For fiscal 2023, 2022 and 2021, the Compensation Committee approved awards whereby certain executive officers could earn performance bonuses based upon percentages of the Company’s pre-tax income. Compensation expense related to these plans was $35.4 million, $40.5 million and $61.6 million in fiscal 2023, 2022 and 2021, respectively. Stock-Based Compensation 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 (RSU) awards may be based on service over a requisite time period (time-based) or on performance (performance-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. The RSUs have no dividend or voting rights until vested. At September 30, 2023, the Company had 4.4 million shares of common stock reserved for issuance and 1.2 million shares available for future grants under the Stock Incentive Plan. Time-Based Restricted Stock Unit Equity Awards During fiscal 2023, 2022 and 2021, time-based RSUs were granted to the Company’s executive officers, other key employees and non-management directors (collectively, approximately 1,380, 1,200 and 1,030 recipients, respectively). These awards vest annually in equal installments over periods of three The following table provides additional information related to time-based RSU activity during fiscal 2023, 2022 and 2021. The number of RSUs vested includes shares of common stock withheld by the Company on behalf of employees to satisfy the tax withholding requirements. Year Ended September 30, 2023 2022 2021 Number of Weighted Average Number of Weighted Average Number of Weighted Average Outstanding at beginning of year 3,466,094 $ 57.50 3,817,265 $ 46.16 4,725,701 $ 34.79 Granted 877,131 93.44 1,153,124 74.96 856,615 83.13 Vested (1,251,785) 50.61 (1,402,642) 41.44 (1,644,263) 33.26 Cancelled (124,515) 61.95 (101,653) 51.22 (120,788) 39.16 Outstanding at end of year 2,966,925 $ 70.85 3,466,094 $ 57.50 3,817,265 $ 46.16 The total fair value of shares vested on the vesting date during fiscal 2023, 2022 and 2021 was $115.2 million, $120.1 million and $131.3 million, respectively. For fiscal 2023, 2022 and 2021, compensation expense related to time-based RSUs was $65.7 million, $63.6 million and $56.5 million, respectively. At September 30, 2023, there was $156.4 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. Performance-Based Restricted Stock Unit Equity Awards During fiscal 2023, 2022 and 2021, performance-based RSU equity awards that vest at the end of three-year performance periods were granted to the Company’s executive officers. The number of units that ultimately vest depends on the Company’s relative position as compared to its peers in achieving certain performance criteria and can range from 0% to 200% of the number of units granted. The performance criteria are total shareholder return, return on investment, SG&A expense containment and gross profit. Compensation expense related to these grants is based on the Company’s performance against its peer group, the elapsed portion of the performance period and the grant date fair value of the award. The following table provides additional information related to the performance-based RSUs outstanding at September 30, 2023. Grant Date Vesting Date Target Number of Performance Units Grant Date Fair Value per Unit Compensation Expense 2023 2022 2021 (In millions) November 2020 September 2023 360,000 $ 70.60 $ 11.0 $ 12.5 $ 12.5 October 2021 (1) September 2024 430,000 80.58 14.3 14.3 — October 2022 September 2025 600,000 79.97 11.6 — — $ 36.9 $ 26.8 $ 12.5 _________________________ (1) The performance RSUs granted in October 2021 totaled 390,000; however, in March 2022, the Compensation Committee of the Company’s Board of Directors approved an amendment and restatement of this award to increase the RSUs granted from 390,000 to 430,000. Concurrent with this change, the Compensation Committee amended the executive officer short-term performance bonus plan to reduce the amount of the award that could be earned. In October 2023, the Compensation Committee approved the issuance of the performance-based RSUs that vested in September 2023 in the form of 607,500 shares of common stock to satisfy the awards. Stock Options Stock options are granted at exercise prices which equal the market value of the Company’s common stock at the date of the grant. The options outstanding at September 30, 2023 are all exercisable and expire 10 years after the dates on which they were granted. The Company did not grant stock options during fiscal 2023, 2022 or 2021. The following table provides information related to stock option activity during those years. Year Ended September 30, 2023 2022 2021 Stock Options Weighted Average Stock Options Weighted Average Stock Options Weighted Average Outstanding at beginning of year 823,486 $ 23.84 1,115,776 $ 23.84 2,224,415 $ 19.94 Exercised (603,823) 23.83 (292,290) 23.83 (1,108,639) 16.02 Cancelled or expired — — — — — — Outstanding at end of year 219,663 $ 23.86 823,486 $ 23.84 1,115,776 $ 23.84 Exercisable at end of year 219,663 $ 23.86 823,486 $ 23.84 1,115,776 $ 23.84 The aggregate intrinsic value of options exercised during fiscal 2023, 2022 and 2021 was $47.2 million, $23.0 million and $82.5 million, respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the option exercise price. The aggregate intrinsic value of options outstanding and exercisable at September 30, 2023 was $18.4 million. Exercise prices for options outstanding at September 30, 2023 ranged from $23.57 to $23.86. The weighted average remaining contractual lives of options outstanding and exercisable at September 30, 2023 is 0.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Warranty Claims The Company provides its homebuyers with warranties for defects in structural elements, mechanical systems and other construction components of the home. Warranty liabilities are established by charging cost of sales for each home delivered based on management’s estimate of expected warranty-related costs and by accruing for existing warranty claims. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates. The estimation of these costs is subject to a high degree of variability due to uncertainties related to these factors. Due to the high degree of judgment required in establishing the liability for warranty claims, actual future costs could differ significantly from current estimated amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of loss in excess of its warranty liability. Changes in the Company’s warranty liability during fiscal 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Warranty liability, beginning of year $ 454.3 $ 376.3 Warranties issued 191.2 185.8 Changes in liability for pre-existing warranties (4.7) 15.1 Settlements made (128.4) (122.9) Warranty liability, end of year $ 512.4 $ 454.3 Legal Claims and Insurance The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course of business. At any point in time, the Company is managing several hundred individual claims related to construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and other matters. The Company has established reserves for these contingencies based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes. The estimated liabilities for these contingencies were $858.9 million and $729.1 million at September 30, 2023 and 2022, respectively, and are included in accrued expenses and other liabilities in the consolidated balance sheets. Approximately 97% and 99% of these reserves related to construction defect matters at September 30, 2023 and 2022, respectively. Expenses related to the Company’s legal contingencies were $139.7 million, $138.0 million and $72.4 million in fiscal 2023, 2022 and 2021, respectively. The Company’s reserves for construction defect claims include the estimated costs of both known claims and anticipated future claims. As of September 30, 2023, no individual existing claim was material to the Company’s financial statements. The Company has closed a significant number of homes during recent years and may be subject to future construction defect claims on these homes. Although regulations vary from state to state, construction defect issues can generally be reported for up to ten years after the home has closed in many states in which the Company operates. Historical data and trends regarding the frequency of claims incurred and the costs to resolve claims relative to the types of products and markets where the Company operates are used to estimate the construction defect liabilities for both existing and anticipated future claims. These estimates are subject to ongoing revision as the circumstances of individual pending claims and historical data and trends change. Adjustments to estimated reserves are recorded in the accounting period in which the change in estimate occurs. Historical trends in construction defect claims have been inconsistent, and the Company believes they may continue to fluctuate. The Company also believes that fluctuations in housing market conditions can affect the frequency and cost of construction defect claims. If the ultimate resolution of construction defect claims resulting from the Company’s home closings in prior years varies from current expectations, it could significantly change the Company’s estimates regarding the frequency and timing of claims incurred and the costs to resolve existing and anticipated future claims, which would impact the construction defect reserves in the future. If the frequency of claims incurred or costs of existing and future legal claims significantly exceed the Company’s current estimates, they will have a significant negative impact on its future earnings and liquidity. Changes in the Company’s legal claims reserves during fiscal 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Reserves for legal claims, beginning of year $ 729.1 $ 577.5 Increase in reserves 179.9 186.1 Payments (50.1) (34.5) Reserves for legal claims, end of year $ 858.9 $ 729.1 Prior to June 1, 2021, in the majority of states in which it operates, the Company has general liability insurance policies to provide risk transfer against a portion of the risk of loss from construction defect and other claims. The Company also contractually requires major subcontractors in most markets to have general liability insurance which includes construction defect coverage. The Company estimates and records receivables under these policies for known claims and anticipated future construction defect claims on previously closed homes and other legal claims and lawsuits incurred in the ordinary course of business when recovery is probable. However, because the self-insured retentions under these policies are significant and the limits of the policies are finite, the Company anticipates it may be in large part self-insured. After June 1, 2021, except for contractual risk transfer, the Company is almost exclusively self-insured for construction defect exposures. The Company’s estimated insurance receivables from estimated losses for pending legal claims and anticipated future claims related to previously closed homes totaled $165.8 million and $137.9 million at September 30, 2023 and 2022, respectively, and are included in other assets in the consolidated balance sheets. In some states where the Company believes it is too difficult or expensive for its subcontractors to obtain general liability insurance, the Company has waived its normal subcontractor general liability insurance requirements to obtain lower costs from subcontractors. In these states, the Company purchases insurance policies from either third-party carriers or its wholly-owned captive insurance subsidiary and names certain subcontractors as additional insureds. The policies issued by the captive insurance subsidiary and the policies issued on or after June 1, 2020 by third-party carriers essentially represent self-insurance of these risks by the Company. The Company is self-insured for the deductible amounts under its workers’ compensation insurance policies. The deductibles vary by policy year, but in no years exceed $0.5 million per occurrence. The deductible for the 2022, 2023 and 2024 policy years is $0.5 million per occurrence. The estimation of losses related to these reserves and the related estimates of recoveries from insurance policies are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to the Company’s markets and the types of products built, claim frequency, claim settlement costs and patterns, insurance industry practices and legal interpretations, among others. Due to the high degree of judgment required in establishing reserves for these contingencies, actual future costs and recoveries from insurance could differ significantly from current estimated amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of loss in excess of its reserves. Land and Lot Purchase Contracts The Company enters into land and lot purchase contracts to acquire land or lots for the construction of homes. At September 30, 2023, the Company had total deposits of $1.8 billion, consisting of cash deposits of $1.7 billion and promissory notes and surety bonds of $119.4 million, related to contracts to purchase land and lots with a total remaining purchase price of approximately $21.1 billion. The majority of land and lots under contract are currently expected to be purchased within three years. Of these amounts, $139.1 million of the deposits related to contracts with Forestar to purchase land and lots with a remaining purchase price of $1.3 billion. A limited number of the homebuilding land and lot purchase contracts at September 30, 2023, representing $226.3 million of remaining purchase price, were subject to specific performance provisions that may require the Company to purchase the land or lots upon the land sellers meeting their respective contractual obligations. Of the $226.3 million remaining purchase price subject to specific performance provisions, $183 million related to contracts between the homebuilding segment and Forestar. During fiscal 2023 and 2022, Forestar reimbursed the homebuilding segment $10.9 million and $8.7 million, respectively, for previously paid earnest money and $21.8 million and $58.9 million, respectively, for pre-acquisition and other due diligence costs related to land purchase contracts whereby the homebuilding segment assigned its rights under contract to Forestar. Other Commitments At September 30, 2023, the Company had outstanding surety bonds of $3.2 billion and letters of credit of $254.3 million to secure performance under various contracts. Of the total letters of credit, $226.6 million were issued under the homebuilding revolving credit facility and $27.7 million were issued under Forestar’s revolving credit facility. The Company leases office space and equipment under non-cancelable operating leases. At September 30, 2023, the future minimum annual lease payments under these agreements are as follows (in millions): Fiscal 2024 $ 25.2 Fiscal 2025 14.7 Fiscal 2026 6.6 Fiscal 2027 4.1 Fiscal 2028 1.9 Thereafter 0.1 $ 52.6 Rent expense was $44.7 million, $38.1 million and $31.7 million for fiscal 2023, 2022 and 2021, respectively. |
Other Assets, Accrued Expenses
Other Assets, Accrued Expenses and Other Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Other Assets, Accrued Expenses and Other Liabilities | OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES The Company’s other assets at September 30, 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Earnest money and refundable deposits $ 1,859.6 $ 1,685.7 Mortgage hedging instruments and commitments 153.6 330.2 Water rights and other water-related assets 319.6 286.6 Other receivables 167.2 210.9 Insurance receivables 165.8 137.9 Prepaid assets 93.0 77.4 Contract assets - insurance agency commissions 93.9 74.3 Interest rate lock commitments 2.3 47.7 Lease right of use assets 46.6 46.6 Mortgage servicing rights 11.1 10.6 Other 80.3 52.4 $ 2,993.0 $ 2,960.3 The Company’s accrued expenses and other liabilities at September 30, 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Reserves for legal claims $ 858.9 $ 729.1 Employee compensation and related liabilities 531.0 524.3 Warranty liability 512.4 454.3 Inventory related accruals 353.6 403.6 Broker deposits related to hedging instruments 118.9 240.9 Customer deposits 147.1 224.2 Interest rate lock commitments 33.9 183.5 Federal and state income tax liabilities 233.8 110.9 Accrued property taxes 69.2 60.1 Lease liabilities 48.1 47.9 Accrued interest 33.6 33.8 Mortgage hedging instruments and commitments 15.7 12.4 Other 147.6 113.3 $ 3,103.8 $ 3,138.3 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights, IRLCs and other derivative instruments on a recurring basis and are used for inventories, other mortgage loans and real estate owned on a nonrecurring basis, when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy and its application to these Company assets and liabilities is as follows: • Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. The Company does not currently have any assets or liabilities measured at fair value using Level 1 inputs. • Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. The Company’s assets and liabilities measured at fair value using Level 2 inputs on a recurring basis are as follows: ◦ Mortgage loans held for sale - The fair value of these loans is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Closed mortgage loans are typically sold shortly after origination, which limits exposure to nonperformance by loan buyer counterparties to a short time period. In addition, the Company actively monitors the financial strength of its counterparties. ◦ Loan sale commitments and hedging instruments - The fair values of best-efforts and mandatory loan sale commitments and derivative instruments such as forward sales of MBS that are utilized as hedging instruments are calculated by reference to quoted prices for similar assets. The Company mitigates exposure to nonperformance risk associated with derivative instruments by limiting the number of counterparties and actively monitoring their financial strength and creditworthiness. Further, the Company’s derivative contracts typically have short-term durations with maturities from one to four months. Accordingly, the Company’s risk of nonperformance relative to its derivative positions is not significant. The Company’s assets measured at fair value using Level 2 inputs on a nonrecurring basis are a limited number of mortgage loans held for sale with some degree of impairment affecting their marketability and are reported at the lower of carrying value or fair value. When available, fair value is determined by reference to quoted prices in the secondary markets for such assets. After consideration of nonperformance risk, no additional adjustments were made to the fair value measurements of mortgage loans held for sale or hedging instruments. • Level 3 – Valuation is typically derived from model-based techniques in which at least one significant input is unobservable and based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. The Company’s assets measured at fair value using Level 3 inputs on a recurring basis are as follows: ◦ Mortgage loans held for sale - For a limited number of mortgage loans held for sale with some degree of impairment affecting their marketability and for which reference to quoted prices in the secondary markets is not available, the fair value is calculated using an income approach whereby the net present value of the discounted cash flows is modeled using both a prepayment and a liquidation disposition. The cash flow is then adjusted based on the probability of each disposition. ◦ Mortgage servicing rights - The fair value of mortgage servicing rights is derived utilizing a third-party model which calculates the present value of estimated future cash flows associated with the servicing asset. Key assumptions to the model include prepayment rate, discount rate and delinquency rate. ◦ IRLCs - The fair value of IRLCs is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. These valuations do not contain adjustments for expirations as any expired commitments are excluded from the fair value measurement. The Company generally only issues IRLCs for products that meet specific purchaser guidelines. Should any purchaser become insolvent, the Company would not be required to close the transaction based on the terms of the commitment. Since not all IRLCs will become closed loans, the Company further adjusts its fair value measurements for the estimated amount of IRLCs that will not close. The Company’s assets measured at fair value using Level 3 inputs that are typically reported at the lower of carrying value or fair value on a nonrecurring basis are as follows: ◦ Inventory held and used - In assessing impairment indicators of its inventory held and used, the Company performs an analysis of the undiscounted cash flows estimated to be generated by those assets. The most significant factors used to estimate undiscounted future cash flows include pricing and incentive levels actually realized by the community, the rate at which the homes are sold and the costs incurred to develop the lots and construct the homes. Inventory held and used measured at fair value represents those communities for which the estimated undiscounted cash flows are less than their carrying amounts and therefore, the Company recorded impairments during the period to record the inventory at fair value calculated based on its discounted estimated future cash flows. ◦ Inventory available for sale - The factors considered in determining fair values of the Company’s land held for sale primarily include actual sale contracts and recent offers received from outside third parties, and may also include prices for land in recent comparable sales transactions and other market analysis. If the estimated fair value less the costs to sell an asset is less than the asset’s current carrying value, the asset is written down to its estimated fair value less costs to sell. ◦ Certain mortgage loans held for sale - A limited number of mortgage loans held for sale have some degree of impairment affecting their marketability. For some of these loans, quoted prices in the secondary market are not available and therefore, a cash flow valuation model is used to determine fair value. ◦ Certain other mortgage loans and real estate owned - Other mortgage loans include performing and nonperforming mortgage loans, which often become real estate owned through the foreclosure process. The fair values of other mortgage loans and real estate owned are determined based on the Company’s assessment of the value of the underlying collateral or the value of the property, as applicable. The Company uses different methods to assess the value of the properties, which may include broker price opinions, appraisals or cash flow valuation models. The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and 2022, and the changes in the fair value of the Level 3 assets during fiscal 2023 and 2022. Fair Value at September 30, 2023 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 2,469.1 $ 11.6 $ 2,480.7 Mortgage servicing rights (2) Other assets — — 11.1 11.1 Derivatives not designated as hedging instruments (3): Interest rate lock commitments (4) Other assets and other liabilities — — (31.6) (31.6) Mortgage hedging instruments and commitments (5) Other assets and other liabilities — 137.9 — 137.9 Fair Value at September 30, 2022 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 2,356.1 $ 14.1 $ 2,370.2 Mortgage servicing rights (2) Other assets — — 10.6 10.6 Derivatives not designated as hedging instruments (3): Interest rate lock commitments (4) Other assets and other liabilities — — (135.8) (135.8) Mortgage hedging instruments and commitments (5) Other assets and other liabilities — 317.8 — 317.8 Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2023 Balance at Net realized and unrealized gains (losses) Purchases / Originations Sales and Settlements Principal Reductions Net transfers to (out of) Level 3 Balance at (In millions) Mortgage loans held for sale (1) $ 14.1 $ 2.6 $ — $ (14.8) $ — $ 9.7 $ 11.6 Mortgage servicing rights (2) 10.6 0.2 52.4 (52.1) — — 11.1 Interest rate lock commitments (4) (135.8) 104.2 — — — — (31.6) Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2022 Balance at Net realized and unrealized gains (losses) Purchases / Originations Sales and Settlements Principal Reductions Net transfers to (out of) Level 3 Balance at (In millions) Mortgage loans held for sale (1) $ 11.7 $ (0.7) $ — $ (3.9) $ — $ 7.0 $ 14.1 Mortgage servicing rights (2) 4.1 (1.2) 35.3 (27.6) — — 10.6 Interest rate lock commitments (4) 17.2 (153.0) — — — — (135.8) ______________________ (1) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at September 30, 2023 and 2022 include $11.6 million and $14.1 million, respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. Mortgage loans held for sale totaling $9.7 million and $7.0 million were transferred to Level 3 during fiscal 2023 and 2022, respectively, due to significant unobservable inputs used in determining the fair value of these loans. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit. (2) Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the Company records them at fair value using third-party valuations. The valuation at the time the servicing asset is retained is reflected in the purchases/originations column with subsequent changes in value classified as realized and unrealized gains (losses). The key assumptions used in the valuation, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and delinquency rates, which were 10%, 11% and 8%, respectively, at September 30, 2023. (3) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in revenues in the consolidated statements of operations. The net fair value change in fiscal 2023 and 2022 recognized in revenues in the consolidated statements of operations was not significant. (4) The fair value of interest rate lock commitments at September 30, 2023 reflects a $2.3 million change in fair value in other assets and a $33.9 million change in fair value in other liabilities. The fair value of interest rate lock commitments at September 30, 2022 reflects $47.7 million of servicing release premiums in other assets and a $183.5 million change in fair value in other liabilities. (5) The fair value of mortgage hedging instruments and commitments at September 30, 2023 reflects a $153.6 million change in fair value in other assets and a $15.7 million change in fair value in other liabilities. The fair value of mortgage hedging instruments and commitments at September 30, 2022 reflects a $330.2 million change in fair value in other assets and a $12.4 million change in fair value in other liabilities. The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at September 30, 2023 and 2022. Fair Value at September 30, 2023 2022 Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Inventory held and used (1) (2) Inventories $ — $ 28.8 $ — $ — Mortgage loans held for sale (1) (3) Mortgage loans held for sale — 30.7 — 15.8 Other mortgage loans (1) (4) Other assets — 2.2 — 1.5 ______________________ (1) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment at September 30, 2023 and 2022, respectively. (2) In performing its impairment analysis of communities, a discount rate of 12% was used in the period of impairment. (3) These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3). (4) The fair values of other mortgage loans were determined based on the value of the underlying collateral. 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, 2023 and 2022. Carrying Value Fair Value at September 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 3,873.6 $ 3,873.6 $ — $ — $ 3,873.6 Restricted cash (1) 26.5 26.5 — — 26.5 Notes payable (2) (3) 5,094.5 — 2,532.5 2,309.4 4,841.9 Carrying Value Fair Value at September 30, 2022 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 2,540.5 $ 2,540.5 $ — $ — $ 2,540.5 Restricted cash (1) 32.4 32.4 — — 32.4 Notes payable (2) (3) 6,066.9 — 3,121.7 2,587.6 5,709.3 ______________ (1) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (2) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (3) The fair values of other secured notes and borrowings on the revolving credit facility and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 4,745.7 | $ 5,857.5 | $ 4,175.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Sep. 30, 2023 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Not Adopted | During the three months ended September 30, 2023, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 D.R. Horton, Inc. and all of its wholly-owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. As of September 30, 2023, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% interest the Company does not own is accounted for as noncontrolling interests. All intercompany accounts, transactions and balances have been eliminated in consolidation. |
Use of Estimates | 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 | Revenue Recognition Homebuilding 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 home, is generally satisfied in less than one year from the original contract date. Proceeds from home closings held for the Company’s benefit at title companies are included in homebuilding cash and cash equivalents in the consolidated balance sheets. When the Company executes sales contracts with its homebuyers, or when it requires advance payment from homebuyers for custom changes, upgrades or options related to their homes, the cash deposits received are recorded as liabilities until the homes are closed or the contracts are cancelled. The Company either retains or refunds to the homebuyer deposits on cancelled sales contracts, depending upon the applicable provisions of the contract or other circumstances. Forestar’s land and lot sales 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 a third-party buyer. Forestar’s revenues from land and lot sales to D.R. Horton are eliminated in the consolidated financial statements. The Company rarely purchases unimproved land for resale, but periodically may elect to sell parcels of land that do not fit into its strategic operating plans. Revenue from land sales is typically recognized on the closing date, which is generally when performance obligations are satisfied. The Company’s rental operations develop, construct, lease and sell residential multi-family and single-family rental properties. Revenue is recognized from the sale of these properties on the closing date, which is when performance obligations are satisfied. Rental income from these properties is recognized as other income. Financial services revenues associated with the Company’s title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur simultaneously as each home is closed. Revenues associated with the Company’s mortgage operations primarily include net gains on the sale of mortgage loans and servicing rights. The Company typically elects the fair value option for its mortgage loan originations whereby mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes and loan values are adjusted through revenues for subsequent changes in fair value until the loans are sold. Expected gains and losses from the sale of servicing rights are included in the measurement of all written loan commitments that are |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less when purchased to be cash equivalents. Proceeds from home closings held for the Company’s benefit at title companies, which totaled $301.8 million and $494.8 million at September 30, 2023 and 2022, respectively, are included in homebuilding cash and cash equivalents in the consolidated balance sheets. Cash balances of the Company’s captive insurance subsidiary, which are expected to be used to fund the subsidiary’s operations and pay future anticipated legal claims, were $70.2 million and $64.4 million at September 30, 2023 and 2022, respectively, and are included in cash and cash equivalents in the consolidated balance sheets. |
Restricted Cash | Restricted Cash The Company has cash that is restricted as to its use. Restricted cash related to homebuilding and land development operations includes customer deposits that are temporarily restricted in accordance with regulatory requirements. Restricted cash related to financial services is mortgagor related funds held by the Company for taxes and insurance on an interim basis until the loans are sold. |
Inventories and Cost of Sales | Inventories and Cost of Sales Inventory includes the costs of direct land acquisition, land development and construction, capitalized interest, real estate taxes and direct overhead costs incurred during development and construction. Costs incurred after projects or homes are substantially complete, such as utilities, maintenance, and cleaning, are charged to selling, general and administrative (SG&A) expense as incurred. All indirect overhead costs, such as compensation of sales personnel, division and region management, and the costs of advertising and builder’s risk insurance are charged to SG&A expense as incurred. Land and development costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of residential lots are transferred to construction in progress when home construction begins. Home construction costs are specifically identified and recorded to individual homes. Cost of sales for homes closed includes the specific construction costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot based upon the total number of homes expected to be closed in each community. Cost of sales for lots sold includes all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the community. Any changes to the estimated total development costs subsequent to the initial home or lot closings in a community are generally allocated on a pro-rata basis to the remaining homes or lots in the community associated with the relevant development activity. Development and construction costs incurred related to the rental operations are recorded as rental property inventory. Cost of sales related to the rental operations include the specific construction costs and all applicable land acquisition, land development and related costs for each rental project. When a home is closed, the Company generally has not paid all incurred costs necessary to complete the home. A liability and a corresponding charge to cost of sales are recorded for the amount estimated to ultimately be paid related to completed homes that have been closed. Home construction budgets are compared to actual recorded costs to determine the additional costs remaining to be paid on each closed home. The Company rarely purchases land for resale. However, when the Company owns land or communities under development that do not fit into its development and construction plans, and the Company determines that it will sell the asset, the project is accounted for as land held for sale if certain criteria are met. The Company records land held for sale at the lesser of its carrying value or fair value less estimated costs to sell. At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment. If indicators of impairment are present for a community, the Company performs an impairment evaluation of the community, which includes an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. The Company’s estimate of undiscounted cash flows from communities analyzed may change and could result in a future need to record impairment charges to adjust the carrying value of these assets to their estimated fair value. There are several factors which could lead to changes in the estimates of undiscounted future cash flows for a given community. The most significant of these includes pricing and incentive levels actually realized by the community, the rate at which the homes are sold and the costs incurred to develop the lots and construct the homes. Pricing and incentive levels are often interrelated with sales pace in a community, such that a price reduction is typically expected to increase the sales pace. Further, both of these factors are heavily influenced by the competitive pressures facing a given community from both new and existing homes. If conditions in the broader economy, homebuilding industry or specific markets in which the Company operates worsen, and as the Company evaluates specific community pricing and incentives, construction and development plans, and its overall land sale strategies, it may be required to evaluate additional communities for potential impairment. This may result in impairment charges which could be significant. When events or circumstances indicate that the carrying values on finished homes in substantially completed communities and completed rental properties are greater than the fair values less estimated costs to sell these homes, impairment charges are also recorded. The key assumptions relating to inventory valuations are impacted by local market and economic conditions and are inherently uncertain. Due to uncertainties in the estimation process, actual results could differ from such estimates. See Note C. |
Capitalized Interest | Capitalized Interest The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During fiscal 2023, 2022 and 2021, the Company’s active inventory exceeded its debt level, and all interest incurred was capitalized to inventory. See Note E. |
Land Option Deposits and Pre-Acquisition Costs | Land and Lot Purchase Contracts The Company enters into land and lot purchase contracts to acquire land or lots for the construction of homes. 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 C and L. |
Variable Interests | Variable Interests Land purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under contract. There was one variable interest entity consolidated for $118.8 million and $64.3 million in the Company’s balance sheets at September 30, 2023 and 2022, respectively, because the Company determined it controlled the activities that most significantly impacted 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, 2023 and 2022, the deposits related to these contracts totaled $1.6 billion and $1.5 billion, respectively, and are included in other assets in the consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset. The depreciable life of model home furniture is 2 years, depreciable lives of other furniture and equipment typically range from 2 to 5 years, and depreciable lives of buildings and improvements typically range from 5 to 30 years. See Note F. |
Business Acquisitions | Business Acquisitions The Company accounts for acquisitions of businesses by allocating the purchase price of the business to the various assets acquired and liabilities assumed at their respective fair values. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. Significant judgment is often required in estimating the fair value of assets acquired, particularly intangible assets. These estimates and assumptions are based on historical experience, information obtained from the management of the acquired companies and the Company’s estimates of significant assumptions that a market participant would use when determining fair value. While the Company believes the estimates and assumptions are reasonable, they are inherently uncertain. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. In December 2022, the Company acquired the homebuilding operations of Riggins Custom Homes in Northwest Arkansas for approximately $107 million in cash. The assets acquired included approximately 170 homes in inventory and 3,000 lots. The purchase price was recorded to inventory, and no goodwill was recorded as a result of this transaction. In June 2023, the Company acquired the homebuilding operations of Truland Homes for approximately $110 million in cash. Truland Homes operates in Baldwin County, Alabama and Northwest Florida. The assets acquired included approximately 155 homes in inventory and 620 lots. The Company also acquired control of approximately 660 additional lots through land purchase contracts. The purchase price was recorded to inventory, and no goodwill was recorded as a result of this transaction. |
Goodwill | Goodwill The Company records goodwill associated with its acquisitions of businesses when the purchase price of the business exceeds the fair value of the identifiable net assets acquired. Goodwill balances are evaluated for potential impairment on at least an annual basis by performing a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an operating segment with goodwill is less than its carrying amount. If the qualitative assessment indicates that additional impairment testing is required, then a quantitative assessment is performed to determine the operating segment’s fair value. The estimated fair value is determined by discounting the future cash flows of the operating segment to present value. If the carrying value of the operating segment exceeds its fair value, the Company records a goodwill impairment by the amount that an operating segment’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. As a result of the qualitative assessments performed in fiscal 2023, 2022 and 2021, no impairment charges were indicated or recorded. The Company’s goodwill balances by reporting segment were as follows: September 30, 2023 2022 (In millions) Northwest $ 2.2 $ 2.2 Southwest — — South Central 15.9 15.9 Southeast 6.0 6.0 East 60.5 60.5 North 49.7 49.7 Forestar 29.2 29.2 Total goodwill $ 163.5 $ 163.5 |
Warranty Claims | Warranty Claims The Company provides its homebuyers with a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty on major mechanical systems and a one-year limited warranty on other construction components. Since the Company subcontracts its construction work to subcontractors who typically provide it with an indemnity and a certificate of insurance prior to receiving payments for their work, claims relating to workmanship and materials are generally the primary responsibility of the subcontractors. Warranty liabilities have been established by charging cost of sales for each home delivered. The amounts charged are based on management’s estimate of the warranty-related costs expected to be incurred in the future. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates. See Note L. |
Legal Claims and Insurance | Legal Claims and Insurance The Company records expenses and liabilities for legal claims related to construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and other matters. The amounts recorded for these contingencies are based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes. The Company estimates and records receivables under its applicable insurance policies for these legal claims when recovery is probable. However, because the self-insured retentions under these policies are significant, the Company anticipates it will largely be self-insured. Additionally, the Company may have the ability to recover a portion of its losses from its subcontractors and their insurance carriers when the Company has been named as an additional insured on their insurance policies. See Note L. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense was approximately $64.7 million, $41.7 million and $36.1 million in fiscal 2023, 2022 and 2021, respectively, and is included in SG&A expense in the consolidated statements of operations. |
Income Taxes | 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. See Note H. 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. The Company’s unrecognized tax benefits totaled $1.4 million and $2.9 million at September 30, 2023 and 2022, respectively. |
Earnings Per Share | Earnings Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding during each year. Diluted earnings per share is based on the weighted average number of shares of common stock and dilutive securities outstanding during each year. See Note I. |
Stock-Based Compensation | 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, 2023, the outstanding stock-based compensation awards include stock options and 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, 2023 have a remaining vesting period up to 4.6 years. Stock options are granted at exercise prices which equal the market value of the Company’s common stock at the date of the grant. All stock options outstanding at September 30, 2023 have vested and expire 10 years after the dates on which they were granted. 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 on the date of grant. The fair values of stock options granted are calculated on the date of grant using a Black-Scholes option pricing model. Determining the fair value of stock options requires judgment in developing assumptions and involves a number of estimates. These estimates include, but are not limited to, the expected stock price volatility over the term of the awards, the expected dividend yield and expected stock option exercise behavior. See Note K. |
Fair Value Measurements | Fair Value Measurements The Financial Accounting Standards Board’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. The Company considers the principal market and nonperformance risk associated with the Company’s counterparties when determining the fair value measurements, if applicable. Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis and are used for inventories, other mortgage loans and real estate owned on a nonrecurring basis, when events and circumstances indicate that the carrying value is not recoverable. See Note N. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Goodwill by reporting segment | The Company’s goodwill balances by reporting segment were as follows: September 30, 2023 2022 (In millions) Northwest $ 2.2 $ 2.2 Southwest — — South Central 15.9 15.9 Southeast 6.0 6.0 East 60.5 60.5 North 49.7 49.7 Forestar 29.2 29.2 Total goodwill $ 163.5 $ 163.5 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Reporting segment results | Financial information relating to the Company’s reporting segments is as follows: September 30, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,920.2 $ 136.1 $ 616.0 $ 189.1 $ 12.2 $ 3,873.6 Restricted cash 6.5 3.3 — 16.7 — 26.5 Inventories: Construction in progress and finished homes 9,134.3 — — — (132.9) 9,001.4 Residential land and lots — developed and under development 8,992.3 — 1,760.8 — (131.2) 10,621.9 Land held for development 20.5 — 29.5 — — 50.0 Land held for sale 8.7 — — — — 8.7 Rental properties — 2,708.4 — — (17.1) 2,691.3 18,155.8 2,708.4 1,790.3 — (281.2) 22,373.3 Mortgage loans held for sale — — — 2,519.9 — 2,519.9 Deferred income taxes, net 229.8 (19.9) — — (22.7) 187.2 Property and equipment, net 415.0 2.4 5.9 4.1 18.0 445.4 Other assets 2,838.5 29.8 58.5 250.3 (184.1) 2,993.0 Goodwill 134.3 — — — 29.2 163.5 $ 24,700.1 $ 2,860.1 $ 2,470.7 $ 2,980.1 $ (428.6) $ 32,582.4 Liabilities Accounts payable $ 1,033.7 $ 698.6 $ 68.4 $ 0.1 $ (554.6) $ 1,246.2 Accrued expenses and other liabilities 2,585.5 43.2 337.4 280.4 (142.7) 3,103.8 Notes payable 2,329.9 400.0 695.0 1,669.6 — 5,094.5 $ 5,949.1 $ 1,141.8 $ 1,100.8 $ 1,950.1 $ (697.3) $ 9,444.5 _____________ (1) Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions. September 30, 2022 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Assets Cash and cash equivalents $ 2,040.7 $ 109.9 $ 264.8 $ 103.3 $ 21.8 $ 2,540.5 Restricted cash 11.3 1.4 — 19.7 — 32.4 Inventories: Construction in progress and finished homes 9,951.5 — — — (153.3) 9,798.2 Residential land and lots — developed and under development 7,322.5 — 1,932.6 — (82.0) 9,173.1 Land held for development 21.0 — 89.8 — — 110.8 Land held for sale 29.4 — — — — 29.4 Rental properties — 2,572.1 — — (27.9) 2,544.2 17,324.4 2,572.1 2,022.4 — (263.2) 21,655.7 Mortgage loans held for sale — — — 2,386.0 — 2,386.0 Deferred income taxes, net 146.3 (7.1) — — 1.9 141.1 Property and equipment, net 361.8 2.0 5.7 4.3 97.8 471.6 Other assets 2,266.5 18.4 50.1 492.5 132.8 2,960.3 Goodwill 134.3 — — — 29.2 163.5 $ 22,285.3 $ 2,696.7 $ 2,343.0 $ 3,005.8 $ 20.3 $ 30,351.1 Liabilities Accounts payable $ 1,149.1 $ 233.6 $ 72.2 $ 0.2 $ (94.8) $ 1,360.3 Accrued expenses and other liabilities 2,365.7 25.0 365.4 596.2 (214.0) 3,138.3 Notes payable 2,942.6 800.0 706.0 1,618.3 — 6,066.9 $ 6,457.4 $ 1,058.6 $ 1,143.6 $ 2,214.7 $ (308.8) $ 10,565.5 _____________ (1) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments. Year Ended September 30, 2023 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 31,641.0 $ — $ — $ — $ — $ 31,641.0 Land/lot sales and other 102.2 — 1,436.9 — (1,126.7) 412.4 Rental property sales — 2,605.5 — — — 2,605.5 Financial services — — — 801.5 — 801.5 31,743.2 2,605.5 1,436.9 801.5 (1,126.7) 35,460.4 Cost of sales Home sales (2) 24,201.3 — — — (248.5) 23,952.8 Land/lot sales and other 53.8 — 1,108.9 — (959.9) 202.8 Rental property sales — 1,886.8 — — (12.7) 1,874.1 Inventory and land option charges 60.7 6.7 24.0 — (11.1) 80.3 24,315.8 1,893.5 1,132.9 — (1,232.2) 26,110.0 Selling, general and administrative expense 2,239.9 290.2 97.7 594.9 26.1 3,248.8 Other (income) expense (78.8) (102.4) (15.3) (76.7) 60.1 (213.1) Income before income taxes $ 5,266.3 $ 524.2 $ 221.6 $ 283.3 $ 19.3 $ 6,314.7 Summary Cash Flow Information Depreciation and amortization $ 64.0 $ 2.4 $ 3.0 $ 2.1 $ 20.1 $ 91.6 Cash provided by operating activities $ 3,078.4 $ 739.2 $ 364.1 $ 13.2 $ 109.2 $ 4,304.1 _____________ (1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Year Ended September 30, 2022 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 31,861.7 $ — $ — $ — $ — $ 31,861.7 Land/lot sales and other 61.4 — 1,519.1 — (1,267.4) 313.1 Rental property sales — 510.2 — — — 510.2 Financial services — — — 795.0 — 795.0 31,923.1 510.2 1,519.1 795.0 (1,267.4) 33,480.0 Cost of sales Home sales (2) 22,715.6 — — — (197.9) 22,517.7 Land/lot sales and other 39.1 — 1,182.7 — (1,072.3) 149.5 Rental property sales — 243.4 — — (5.1) 238.3 Inventory and land option charges 57.2 0.8 12.4 — — 70.4 22,811.9 244.2 1,195.1 — (1,275.3) 22,975.9 Selling, general and administrative expense 2,186.7 91.1 93.6 547.6 14.7 2,933.7 Other (income) expense (16.4) (27.1) (5.4) (43.2) 32.8 (59.3) Income before income taxes $ 6,940.9 $ 202.0 $ 235.8 $ 290.6 $ (39.6) $ 7,629.7 Summary Cash Flow Information Depreciation and amortization $ 62.5 $ 1.0 $ 2.7 $ 1.9 $ 13.3 $ 81.4 Cash provided by (used in) operating activities $ 1,916.7 $ (1,391.0) $ 108.7 $ (10.5) $ (62.1) $ 561.8 _____________ (1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Year Ended September 30, 2021 Homebuilding Rental Forestar Financial Services Eliminations and Other (1) Consolidated (In millions) Revenues Home sales $ 26,502.6 $ — $ — $ — $ — $ 26,502.6 Land/lot sales and other 75.0 — 1,325.8 — (1,188.8) 212.0 Rental property sales — 267.8 — — (31.8) 236.0 Financial services — — — 823.6 — 823.6 26,577.6 267.8 1,325.8 823.6 (1,220.6) 27,774.2 Cost of sales Home sales (2) 19,748.4 — — — (140.1) 19,608.3 Land/lot sales and other 56.2 — 1,093.6 — (1,030.5) 119.3 Rental property sales — 160.8 — — (17.8) 143.0 Inventory and land option charges 24.9 0.7 3.0 — — 28.6 19,829.5 161.5 1,096.6 — (1,188.4) 19,899.2 Selling, general and administrative expense 1,945.6 44.6 68.4 488.3 9.3 2,556.2 Gain on sale of assets — — (2.5) — (11.5) (14.0) Loss on extinguishment of debt — — 18.1 — — 18.1 Other (income) expense (10.3) (24.8) (1.4) (29.3) 24.2 (41.6) Income before income taxes $ 4,812.8 $ 86.5 $ 146.6 $ 364.6 $ (54.2) $ 5,356.3 Summary Cash Flow Information Depreciation and amortization $ 63.1 $ 5.1 $ 2.2 $ 1.7 $ 10.0 $ 82.1 Cash provided by (used in) operating activities $ 1,239.8 $ (410.0) $ (303.1) $ (195.8) $ 203.5 $ 534.4 _____________ (1) Amounts include the results of the Company’s other businesses, reconciling amounts between segment and consolidated balances and the elimination of intercompany transactions. (2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers. Homebuilding Inventories by Reporting Segment (1) September 30, 2023 2022 (In millions) Northwest $ 1,907.5 $ 1,802.2 Southwest 3,133.0 2,801.7 South Central 3,810.5 3,931.7 Southeast 3,958.5 4,091.1 East 3,024.7 2,542.7 North 2,078.0 1,935.7 Corporate and unallocated (2) 243.6 219.3 $ 18,155.8 $ 17,324.4 ______________________________________________ (1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers. (2) Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes. Homebuilding Results by Reporting Segment Year Ended September 30, 2023 2022 2021 (In millions) Revenues Northwest $ 2,582.4 $ 2,658.4 $ 2,516.6 Southwest 4,282.8 4,840.7 4,071.0 South Central 7,612.6 8,192.3 6,111.2 Southeast 8,760.8 7,951.2 7,079.6 East 5,325.3 5,318.1 4,459.0 North 3,179.3 2,962.4 2,340.2 $ 31,743.2 $ 31,923.1 $ 26,577.6 Inventory and Land Option Charges Northwest $ 6.6 $ 7.0 $ 0.6 Southwest 11.3 6.3 3.0 South Central 7.6 9.9 5.3 Southeast 14.6 13.5 10.2 East 8.4 12.1 2.4 North 12.2 8.4 3.4 $ 60.7 $ 57.2 $ 24.9 Income before Income Taxes (1) Northwest $ 391.1 $ 560.8 $ 510.8 Southwest 489.3 968.3 653.1 South Central 1,388.3 1,910.7 1,150.2 Southeast 1,711.1 1,918.5 1,371.9 East 935.7 1,126.3 795.1 North 350.8 456.3 331.7 $ 5,266.3 $ 6,940.9 $ 4,812.8 ______________________________________________ (1) Expenses maintained at the corporate level consist primarily of homebuilding interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances. |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of notes payable at principal amounts, net of unamortized discounts | The Company’s notes payable at their carrying amounts consist of the following: September 30, 2023 2022 (In millions) Homebuilding Unsecured: Revolving credit facility $ — $ — 4.75% senior notes due 2023 (1) — 299.9 5.75% senior notes due 2023 (1) — 399.6 2.5% senior notes due 2024 (1) 499.0 498.2 2.6% senior notes due 2025 (1) 498.0 497.1 1.3% senior notes due 2026 (1) 596.6 595.5 1.4% senior notes due 2027 (1) 496.5 495.7 Other secured notes 239.8 156.6 2,329.9 2,942.6 Rental Unsecured: Revolving credit facility 400.0 800.0 Forestar Unsecured: Revolving credit facility — — 3.85% senior notes due 2026 (2) 397.4 396.5 5.0% senior notes due 2028 (2) 297.6 297.0 Other secured notes — 12.5 695.0 706.0 Financial Services Mortgage repurchase facilities: Committed facility 1,373.3 1,618.3 Uncommitted facility 296.3 — 1,669.6 1,618.3 Total notes payable $ 5,094.5 $ 6,066.9 _____________ (1) Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $8.4 million and $12.2 million at September 30, 2023 and 2022, respectively. (2) Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $5.0 million and $6.5 million at September 30, 2023 and 2022, respectively. |
Summary of notes payable terms | The key terms of the Company’s homebuilding senior notes outstanding as of September 30, 2023 are summarized below. Notes Payable Principal Amount Date Issued Date Due Redeemable Effective (In millions) 2.5% senior notes $500 October 2019 October 15, 2024 Yes 2.7% 2.6% senior notes $500 May 2020 October 15, 2025 Yes 2.8% 1.3% senior notes $600 August 2021 October 15, 2026 Yes 1.5% 1.4% senior notes $500 October 2020 October 15, 2027 Yes 1.6% _____________ (1) The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the greater of 100% of their principal amount or the present value of the remaining scheduled payments discounted to the redemption date, plus accrued and unpaid interest. In addition, the 2.5% senior notes, the 2.6% senior notes and the 1.3% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is one month prior to the final maturity date of the notes. The 1.4% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is two months prior to the final maturity of the notes. (2) Interest is payable semi-annually on each of the series of senior notes. The annual effective interest rate is calculated after giving effect to the amortization of debt issuance costs and the discount, if applicable. |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Interest Costs Incurred [Abstract] | |
Interest costs incurred, capitalized and expensed | The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years ended September 30, 2023, 2022 and 2021: Year Ended September 30, 2023 2022 2021 (In millions) Capitalized interest, beginning of year $ 237.4 $ 217.7 $ 207.7 Interest incurred (1) 203.5 162.5 152.2 Interest charged to cost of sales (154.5) (142.8) (142.2) Capitalized interest, end of year $ 286.4 $ 237.4 $ 217.7 _________________________ (1) Interest incurred in fiscal 2023, 2022 and 2021 includes interest on the Company's mortgage repurchase facility of $45.9 million, $18.9 million and $17.0 million, respectively, and Forestar interest of $32.8 million, $32.9 million and $41.6 million, respectively. Interest incurred in fiscal 2023 also includes interest on DRH Rental’s revolving credit facility of $56.0 million. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The Company’s property and equipment balances and the related accumulated depreciation at September 30, 2023 and 2022 are summarized below. September 30, 2023 2022 (In millions) Homebuilding Buildings and improvements $ 414.6 $ 349.6 Model home furniture 147.0 133.4 Office furniture and equipment 113.5 132.5 Land 39.1 35.5 Accumulated depreciation (299.2) (289.2) Total homebuilding 415.0 361.8 Rental, net 2.4 2.0 Forestar, net 5.9 5.7 Financial services, net 4.1 4.3 Other businesses and eliminations, net 18.0 97.8 Property and equipment, net $ 445.4 $ 471.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of the Company’s income tax expense are as follows: Year Ended September 30, 2023 2022 2021 (In millions) Current tax expense: Federal $ 1,293.0 $ 1,448.9 $ 978.1 State 272.4 256.1 197.0 1,565.4 1,705.0 1,175.1 Deferred tax expense (benefit): Federal (39.0) 21.2 (12.7) State (6.9) 7.9 2.7 (45.9) 29.1 (10.0) Total income tax expense $ 1,519.5 $ 1,734.1 $ 1,165.1 |
Comparison of income tax expense (benefit) and tax computed at the statutory rate | Differences between income tax expense and tax computed by applying the federal statutory rate of 21% to income before income taxes during each year is due to the following: Year Ended September 30, 2023 2022 2021 (In millions) Income taxes at federal statutory rate $ 1,326.1 $ 1,602.2 $ 1,124.8 Increase (decrease) in tax resulting from: State income taxes, net of federal benefit 208.1 210.0 166.9 Valuation allowance (3.1) (2.1) (3.3) Tax credits (44.4) (100.8) (116.3) Excess tax benefit from stock-based compensation (25.6) (20.1) (38.4) Tax contingencies (1.5) — (6.0) Other 59.9 44.9 37.4 Total income tax expense $ 1,519.5 $ 1,734.1 $ 1,165.1 |
Components of deferred tax assets and liabilities | Components of deferred income taxes are summarized as follows: September 30, 2023 2022 (In millions) Deferred tax assets: Inventory costs $ 67.8 $ 74.0 Inventory impairments 5.8 9.5 Warranty and construction defect costs 281.2 239.5 Net operating loss carryforwards 42.2 44.1 Tax credit carryforwards 6.8 6.4 Incentive compensation plans 88.0 84.7 Other 7.0 12.7 Total deferred tax assets 498.8 470.9 Valuation allowance (14.8) (17.9) Total deferred tax assets, net of valuation allowance 484.0 453.0 Deferred tax liabilities: Deferral of profit on home closings 163.6 209.4 Depreciation of fixed assets 46.3 30.5 Deferral of income 23.4 18.5 Undistributed earnings of subsidiary 51.7 27.3 Other 11.8 26.2 Total deferred tax liabilities 296.8 311.9 Deferred income taxes, net $ 187.2 $ 141.1 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2023 and 2022 is as follows: Year Ended September 30, 2023 2022 (In millions) Unrecognized tax benefits, beginning of year $ 2.9 $ 2.9 Additions for tax positions taken in the current or prior years — — Settlements (1.5) — Unrecognized tax benefits, end of year $ 1.4 $ 2.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Numerator and denominator used to compute basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted earnings per share. Year Ended September 30, 2023 2022 2021 (In millions) Numerator: Net income attributable to D.R. Horton, Inc. $ 4,745.7 $ 5,857.5 $ 4,175.8 Denominator: Denominator for basic earnings per share — weighted average common shares 340.7 351.7 361.1 Effect of dilutive securities: Employee stock awards 2.6 3.1 4.7 Denominator for diluted earnings per share — adjusted weighted average common shares 343.3 354.8 365.8 Basic net income per common share attributable to D.R. Horton, Inc. $ 13.93 $ 16.65 $ 11.56 Diluted net income per common share attributable to D.R. Horton, Inc. $ 13.82 $ 16.51 $ 11.41 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Additional information related to time-based RSU activity | The following table provides additional information related to time-based RSU activity during fiscal 2023, 2022 and 2021. The number of RSUs vested includes shares of common stock withheld by the Company on behalf of employees to satisfy the tax withholding requirements. Year Ended September 30, 2023 2022 2021 Number of Weighted Average Number of Weighted Average Number of Weighted Average Outstanding at beginning of year 3,466,094 $ 57.50 3,817,265 $ 46.16 4,725,701 $ 34.79 Granted 877,131 93.44 1,153,124 74.96 856,615 83.13 Vested (1,251,785) 50.61 (1,402,642) 41.44 (1,644,263) 33.26 Cancelled (124,515) 61.95 (101,653) 51.22 (120,788) 39.16 Outstanding at end of year 2,966,925 $ 70.85 3,466,094 $ 57.50 3,817,265 $ 46.16 |
Additional information related to performance-based RSUs outstanding | The following table provides additional information related to the performance-based RSUs outstanding at September 30, 2023. Grant Date Vesting Date Target Number of Performance Units Grant Date Fair Value per Unit Compensation Expense 2023 2022 2021 (In millions) November 2020 September 2023 360,000 $ 70.60 $ 11.0 $ 12.5 $ 12.5 October 2021 (1) September 2024 430,000 80.58 14.3 14.3 — October 2022 September 2025 600,000 79.97 11.6 — — $ 36.9 $ 26.8 $ 12.5 _________________________ (1) The performance RSUs granted in October 2021 totaled 390,000; however, in March 2022, the Compensation Committee of the Company’s Board of Directors approved an amendment and restatement of this award to increase the RSUs granted from 390,000 to 430,000. Concurrent with this change, the Compensation Committee amended the executive officer short-term performance bonus plan to reduce the amount of the award that could be earned. |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following table provides information related to stock option activity during those years. Year Ended September 30, 2023 2022 2021 Stock Options Weighted Average Stock Options Weighted Average Stock Options Weighted Average Outstanding at beginning of year 823,486 $ 23.84 1,115,776 $ 23.84 2,224,415 $ 19.94 Exercised (603,823) 23.83 (292,290) 23.83 (1,108,639) 16.02 Cancelled or expired — — — — — — Outstanding at end of year 219,663 $ 23.86 823,486 $ 23.84 1,115,776 $ 23.84 Exercisable at end of year 219,663 $ 23.86 823,486 $ 23.84 1,115,776 $ 23.84 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in warranty liability | Changes in the Company’s warranty liability during fiscal 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Warranty liability, beginning of year $ 454.3 $ 376.3 Warranties issued 191.2 185.8 Changes in liability for pre-existing warranties (4.7) 15.1 Settlements made (128.4) (122.9) Warranty liability, end of year $ 512.4 $ 454.3 |
Rollforward of reserves for legal claims | Changes in the Company’s legal claims reserves during fiscal 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Reserves for legal claims, beginning of year $ 729.1 $ 577.5 Increase in reserves 179.9 186.1 Payments (50.1) (34.5) Reserves for legal claims, end of year $ 858.9 $ 729.1 |
Lessee, Operating Lease, Liability, Maturity | At September 30, 2023, the future minimum annual lease payments under these agreements are as follows (in millions): Fiscal 2024 $ 25.2 Fiscal 2025 14.7 Fiscal 2026 6.6 Fiscal 2027 4.1 Fiscal 2028 1.9 Thereafter 0.1 $ 52.6 |
Other Assets, Accrued Expense_2
Other Assets, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Assets and Accrued Expenses and Other Liabilities [Abstract] | |
Homebuilding other assets | The Company’s other assets at September 30, 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Earnest money and refundable deposits $ 1,859.6 $ 1,685.7 Mortgage hedging instruments and commitments 153.6 330.2 Water rights and other water-related assets 319.6 286.6 Other receivables 167.2 210.9 Insurance receivables 165.8 137.9 Prepaid assets 93.0 77.4 Contract assets - insurance agency commissions 93.9 74.3 Interest rate lock commitments 2.3 47.7 Lease right of use assets 46.6 46.6 Mortgage servicing rights 11.1 10.6 Other 80.3 52.4 $ 2,993.0 $ 2,960.3 |
Homebuilding accrued expenses and other liabilities | The Company’s accrued expenses and other liabilities at September 30, 2023 and 2022 were as follows: September 30, 2023 2022 (In millions) Reserves for legal claims $ 858.9 $ 729.1 Employee compensation and related liabilities 531.0 524.3 Warranty liability 512.4 454.3 Inventory related accruals 353.6 403.6 Broker deposits related to hedging instruments 118.9 240.9 Customer deposits 147.1 224.2 Interest rate lock commitments 33.9 183.5 Federal and state income tax liabilities 233.8 110.9 Accrued property taxes 69.2 60.1 Lease liabilities 48.1 47.9 Accrued interest 33.6 33.8 Mortgage hedging instruments and commitments 15.7 12.4 Other 147.6 113.3 $ 3,103.8 $ 3,138.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities on a recurring basis | The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and 2022, and the changes in the fair value of the Level 3 assets during fiscal 2023 and 2022. Fair Value at September 30, 2023 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 2,469.1 $ 11.6 $ 2,480.7 Mortgage servicing rights (2) Other assets — — 11.1 11.1 Derivatives not designated as hedging instruments (3): Interest rate lock commitments (4) Other assets and other liabilities — — (31.6) (31.6) Mortgage hedging instruments and commitments (5) Other assets and other liabilities — 137.9 — 137.9 Fair Value at September 30, 2022 Balance Sheet Location Level 1 Level 2 Level 3 Total (In millions) Mortgage loans held for sale (1) Mortgage loans held for sale $ — $ 2,356.1 $ 14.1 $ 2,370.2 Mortgage servicing rights (2) Other assets — — 10.6 10.6 Derivatives not designated as hedging instruments (3): Interest rate lock commitments (4) Other assets and other liabilities — — (135.8) (135.8) Mortgage hedging instruments and commitments (5) Other assets and other liabilities — 317.8 — 317.8 Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2023 Balance at Net realized and unrealized gains (losses) Purchases / Originations Sales and Settlements Principal Reductions Net transfers to (out of) Level 3 Balance at (In millions) Mortgage loans held for sale (1) $ 14.1 $ 2.6 $ — $ (14.8) $ — $ 9.7 $ 11.6 Mortgage servicing rights (2) 10.6 0.2 52.4 (52.1) — — 11.1 Interest rate lock commitments (4) (135.8) 104.2 — — — — (31.6) Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2022 Balance at Net realized and unrealized gains (losses) Purchases / Originations Sales and Settlements Principal Reductions Net transfers to (out of) Level 3 Balance at (In millions) Mortgage loans held for sale (1) $ 11.7 $ (0.7) $ — $ (3.9) $ — $ 7.0 $ 14.1 Mortgage servicing rights (2) 4.1 (1.2) 35.3 (27.6) — — 10.6 Interest rate lock commitments (4) 17.2 (153.0) — — — — (135.8) ______________________ (1) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at September 30, 2023 and 2022 include $11.6 million and $14.1 million, respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. Mortgage loans held for sale totaling $9.7 million and $7.0 million were transferred to Level 3 during fiscal 2023 and 2022, respectively, due to significant unobservable inputs used in determining the fair value of these loans. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit. (2) Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the Company records them at fair value using third-party valuations. The valuation at the time the servicing asset is retained is reflected in the purchases/originations column with subsequent changes in value classified as realized and unrealized gains (losses). The key assumptions used in the valuation, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and delinquency rates, which were 10%, 11% and 8%, respectively, at September 30, 2023. (3) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in revenues in the consolidated statements of operations. The net fair value change in fiscal 2023 and 2022 recognized in revenues in the consolidated statements of operations was not significant. (4) The fair value of interest rate lock commitments at September 30, 2023 reflects a $2.3 million change in fair value in other assets and a $33.9 million change in fair value in other liabilities. The fair value of interest rate lock commitments at September 30, 2022 reflects $47.7 million of servicing release premiums in other assets and a $183.5 million change in fair value in other liabilities. (5) The fair value of mortgage hedging instruments and commitments at September 30, 2023 reflects a $153.6 million change in fair value in other assets and a $15.7 million change in fair value in other liabilities. The fair value of mortgage hedging instruments and commitments at September 30, 2022 reflects a $330.2 million change in fair value in other assets and a $12.4 million change in fair value in other liabilities. |
Fair value measurements of assets on a non-recurring basis | The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at September 30, 2023 and 2022. Fair Value at September 30, 2023 2022 Balance Sheet Location Level 2 Level 3 Level 2 Level 3 (In millions) Inventory held and used (1) (2) Inventories $ — $ 28.8 $ — $ — Mortgage loans held for sale (1) (3) Mortgage loans held for sale — 30.7 — 15.8 Other mortgage loans (1) (4) Other assets — 2.2 — 1.5 ______________________ (1) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment at September 30, 2023 and 2022, respectively. (2) In performing its impairment analysis of communities, a discount rate of 12% was used in the period of impairment. (3) These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3). |
Fair value of financial assets and liabilities | 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, 2023 and 2022. Carrying Value Fair Value at September 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 3,873.6 $ 3,873.6 $ — $ — $ 3,873.6 Restricted cash (1) 26.5 26.5 — — 26.5 Notes payable (2) (3) 5,094.5 — 2,532.5 2,309.4 4,841.9 Carrying Value Fair Value at September 30, 2022 Level 1 Level 2 Level 3 Total (In millions) Cash and cash equivalents (1) $ 2,540.5 $ 2,540.5 $ — $ — $ 2,540.5 Restricted cash (1) 32.4 32.4 — — 32.4 Notes payable (2) (3) 6,066.9 — 3,121.7 2,587.6 5,709.3 ______________ (1) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (2) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (3) The fair values of other secured notes and borrowings on the revolving credit facility and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Information [Line Items] | |||
Cash and cash equivalents | $ 3,873.6 | $ 2,540.5 | |
Advertising expense | 64.7 | 41.7 | $ 36.1 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1.4 | 2.9 | |
Variable Interest Entity, Consolidated, Notes Payable | $ 118.8 | 64.3 | |
Forestar Group [Member] | |||
Business Information [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 63% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 37% | ||
Subsidiaries [Member] | |||
Business Information [Line Items] | |||
Cash and cash equivalents | $ 70.2 | 64.4 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Business Information [Line Items] | |||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,600 | 1,500 | |
Accounts Receivable [Member] | |||
Business Information [Line Items] | |||
Cash and cash equivalents | $ 301.8 | $ 494.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | Sep. 30, 2023 |
2510 Household Furniture [Member] | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 2 years |
Minimum [Member] | Furniture and Fixtures | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 2 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Maximum [Member] | Furniture and Fixtures | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 30 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Goodwill | 163.5 | 163.5 | |
Home Building | |||
Goodwill [Line Items] | |||
Goodwill | 134.3 | 134.3 | |
Home Building | Northwest | |||
Goodwill [Line Items] | |||
Goodwill | 2.2 | 2.2 | |
Home Building | Southwest [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 0 | |
Home Building | South Central [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 15.9 | 15.9 | |
Home Building | Southeast [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 6 | 6 | |
Home Building | East [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 60.5 | 60.5 | |
Home Building | North | |||
Goodwill [Line Items] | |||
Goodwill | 49.7 | 49.7 | |
Eliminations and Other | |||
Goodwill [Line Items] | |||
Goodwill | $ 29.2 | $ 29.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Stock Based Compensation (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining vesting period | 4 years 7 months 6 days |
Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Business Acquisition (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) lot | Dec. 31, 2022 USD ($) lot | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 212.9 | $ 271.5 | $ 24.5 | ||
Scehdule of Business Information [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 212.9 | $ 271.5 | $ 24.5 | ||
Riggins Custom Homes | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 107 | ||||
Scehdule of Business Information [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 107 | ||||
Business Acquisition, Number of Homes Acquired | lot | 170 | ||||
Business Acquisition, Number of Lots Acquired | lot | 3,000 | ||||
Truland Homes | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 110 | ||||
Scehdule of Business Information [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 110 | ||||
Business Acquisition, Number of Homes Acquired | lot | 155 | ||||
Business Acquisition, Number of Lots Acquired | lot | 620 | ||||
Business Acquisition, Number of Controlled Lots Acquired through Land Purchase Contracts | lot | 660 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 Market State OperatingDivisions Segments | Sep. 30, 2023 Market State | Sep. 30, 2022 | Sep. 30, 2021 | |
Home Building | ||||
Segment Reporting Information [Line Items] | ||||
Number of homebuilding operating divisions | OperatingDivisions | 81 | |||
Number of homebuilding reporting segments | Segments | 6 | |||
Homebuilding percentage of consolidated revenues | 90% | 95% | 96% | |
Number of housing construction markets | Market | 118 | 118 | ||
Number of housing construction states | State | 33 | 33 | ||
Forestar Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of housing construction markets | Market | 54 | 54 | ||
Number of housing construction states | State | 22 | 22 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Assets | |||
Cash and cash equivalents | $ 3,873.6 | $ 2,540.5 | |
Restricted cash | 26.5 | 32.4 | |
Inventories: | |||
Construction in progress and finished homes | 9,001.4 | 9,798.2 | |
Residential land and lots — developed and under development | 10,621.9 | 9,173.1 | |
Land held for development | 50 | 110.8 | |
Land held for sale | 8.7 | 29.4 | |
Rental properties | 2,691.3 | 2,544.2 | |
Total inventories | 22,373.3 | 21,655.7 | |
Mortgage loans held for sale | 2,519.9 | 2,386 | |
Deferred income taxes, net | 187.2 | 141.1 | |
Property and equipment, net | 445.4 | 471.6 | |
Other Assets | 2,993 | 2,960.3 | |
Goodwill | 163.5 | 163.5 | |
Total assets | 32,582.4 | 30,351.1 | |
Liabilities | |||
Accounts payable | 1,246.2 | 1,360.3 | |
Accrued expenses and other liabilities | 3,103.8 | 3,138.3 | |
Notes payable | 5,094.5 | 6,066.9 | |
Total liabilities | 9,444.5 | 10,565.5 | |
Revenues: | |||
Revenues | 35,460.4 | 33,480 | $ 27,774.2 |
Cost of sales: | |||
Inventory and land option charges | 80.3 | 70.4 | 28.6 |
Cost of sales | 26,110 | 22,975.9 | 19,899.2 |
Selling, general and administrative expense | 3,248.8 | 2,933.7 | 2,556.2 |
Gain on sale of assets | 0 | 0 | (14) |
Loss on extinguishment of debt | 0 | 0 | 18.1 |
Other (income) expense | (213.1) | (59.3) | (41.6) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 6,314.7 | 7,629.7 | 5,356.3 |
Depreciation and amortization | 91.6 | 81.4 | 82.1 |
Cash provided by (used in) operating activities | 4,304.1 | 561.8 | 534.4 |
Home Building | |||
Assets | |||
Cash and cash equivalents | 2,920.2 | 2,040.7 | |
Restricted cash | 6.5 | 11.3 | |
Inventories: | |||
Construction in progress and finished homes | 9,134.3 | 9,951.5 | |
Residential land and lots — developed and under development | 8,992.3 | 7,322.5 | |
Land held for development | 20.5 | 21 | |
Land held for sale | 8.7 | 29.4 | |
Rental properties | 0 | 0 | |
Total inventories | 18,155.8 | 17,324.4 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 229.8 | 146.3 | |
Property and equipment, net | 415 | 361.8 | |
Other Assets | 2,838.5 | 2,266.5 | |
Goodwill | 134.3 | 134.3 | |
Total assets | 24,700.1 | 22,285.3 | |
Liabilities | |||
Accounts payable | 1,033.7 | 1,149.1 | |
Accrued expenses and other liabilities | 2,585.5 | 2,365.7 | |
Notes payable | 2,329.9 | 2,942.6 | |
Total liabilities | 5,949.1 | 6,457.4 | |
Revenues: | |||
Revenues | 31,743.2 | 31,923.1 | 26,577.6 |
Cost of sales: | |||
Inventory and land option charges | 60.7 | 57.2 | 24.9 |
Cost of sales | 24,315.8 | 22,811.9 | 19,829.5 |
Selling, general and administrative expense | 2,239.9 | 2,186.7 | 1,945.6 |
Gain on sale of assets | 0 | ||
Loss on extinguishment of debt | 0 | ||
Other (income) expense | (78.8) | (16.4) | (10.3) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 5,266.3 | 6,940.9 | 4,812.8 |
Depreciation and amortization | 64 | 62.5 | 63.1 |
Cash provided by (used in) operating activities | 3,078.4 | 1,916.7 | 1,239.8 |
Rental | |||
Assets | |||
Cash and cash equivalents | 136.1 | 109.9 | |
Restricted cash | 3.3 | 1.4 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | 2,708.4 | 2,572.1 | |
Total inventories | 2,708.4 | 2,572.1 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | (19.9) | (7.1) | |
Property and equipment, net | 2.4 | 2 | |
Other Assets | 29.8 | 18.4 | |
Goodwill | 0 | 0 | |
Total assets | 2,860.1 | 2,696.7 | |
Liabilities | |||
Accounts payable | 698.6 | 233.6 | |
Accrued expenses and other liabilities | 43.2 | 25 | |
Notes payable | 400 | 800 | |
Total liabilities | 1,141.8 | 1,058.6 | |
Revenues: | |||
Revenues | 2,605.5 | 510.2 | 267.8 |
Cost of sales: | |||
Inventory and land option charges | 6.7 | 0.8 | 0.7 |
Cost of sales | 1,893.5 | 244.2 | 161.5 |
Selling, general and administrative expense | 290.2 | 91.1 | 44.6 |
Gain on sale of assets | 0 | ||
Loss on extinguishment of debt | 0 | ||
Other (income) expense | (102.4) | (27.1) | (24.8) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 524.2 | 202 | 86.5 |
Depreciation and amortization | 2.4 | 1 | 5.1 |
Cash provided by (used in) operating activities | 739.2 | (1,391) | (410) |
Forestar Group [Member] | |||
Assets | |||
Cash and cash equivalents | 616 | 264.8 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 1,760.8 | 1,932.6 | |
Land held for development | 29.5 | 89.8 | |
Land held for sale | 0 | 0 | |
Rental properties | 0 | 0 | |
Total inventories | 1,790.3 | 2,022.4 | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 5.9 | 5.7 | |
Other Assets | 58.5 | 50.1 | |
Goodwill | 0 | 0 | |
Total assets | 2,470.7 | 2,343 | |
Liabilities | |||
Accounts payable | 68.4 | 72.2 | |
Accrued expenses and other liabilities | 337.4 | 365.4 | |
Notes payable | 695 | 706 | |
Total liabilities | 1,100.8 | 1,143.6 | |
Revenues: | |||
Revenues | 1,436.9 | 1,519.1 | 1,325.8 |
Cost of sales: | |||
Inventory and land option charges | 24 | 12.4 | 3 |
Cost of sales | 1,132.9 | 1,195.1 | 1,096.6 |
Selling, general and administrative expense | 97.7 | 93.6 | 68.4 |
Gain on sale of assets | (2.5) | ||
Loss on extinguishment of debt | 18.1 | ||
Other (income) expense | (15.3) | (5.4) | (1.4) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 221.6 | 235.8 | 146.6 |
Depreciation and amortization | 3 | 2.7 | 2.2 |
Cash provided by (used in) operating activities | 364.1 | 108.7 | (303.1) |
Financial Services [Member] | |||
Assets | |||
Cash and cash equivalents | 189.1 | 103.3 | |
Restricted cash | 16.7 | 19.7 | |
Inventories: | |||
Construction in progress and finished homes | 0 | 0 | |
Residential land and lots — developed and under development | 0 | 0 | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | 0 | 0 | |
Total inventories | 0 | 0 | |
Mortgage loans held for sale | 2,519.9 | 2,386 | |
Deferred income taxes, net | 0 | 0 | |
Property and equipment, net | 4.1 | 4.3 | |
Other Assets | 250.3 | 492.5 | |
Goodwill | 0 | 0 | |
Total assets | 2,980.1 | 3,005.8 | |
Liabilities | |||
Accounts payable | 0.1 | 0.2 | |
Accrued expenses and other liabilities | 280.4 | 596.2 | |
Notes payable | 1,669.6 | 1,618.3 | |
Total liabilities | 1,950.1 | 2,214.7 | |
Revenues: | |||
Revenues | 801.5 | 795 | 823.6 |
Cost of sales: | |||
Inventory and land option charges | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Selling, general and administrative expense | 594.9 | 547.6 | 488.3 |
Gain on sale of assets | 0 | ||
Loss on extinguishment of debt | 0 | ||
Other (income) expense | (76.7) | (43.2) | (29.3) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 283.3 | 290.6 | 364.6 |
Depreciation and amortization | 2.1 | 1.9 | 1.7 |
Cash provided by (used in) operating activities | 13.2 | (10.5) | (195.8) |
Eliminations and Other | |||
Assets | |||
Cash and cash equivalents | 12.2 | 21.8 | |
Restricted cash | 0 | 0 | |
Inventories: | |||
Construction in progress and finished homes | (132.9) | (153.3) | |
Residential land and lots — developed and under development | (131.2) | (82) | |
Land held for development | 0 | 0 | |
Land held for sale | 0 | 0 | |
Rental properties | (17.1) | (27.9) | |
Total inventories | (281.2) | (263.2) | |
Mortgage loans held for sale | 0 | 0 | |
Deferred income taxes, net | (22.7) | 1.9 | |
Property and equipment, net | 18 | 97.8 | |
Other Assets | (184.1) | 132.8 | |
Goodwill | 29.2 | 29.2 | |
Total assets | (428.6) | 20.3 | |
Liabilities | |||
Accounts payable | (554.6) | (94.8) | |
Accrued expenses and other liabilities | (142.7) | (214) | |
Notes payable | 0 | 0 | |
Total liabilities | (697.3) | (308.8) | |
Revenues: | |||
Revenues | (1,126.7) | (1,267.4) | (1,220.6) |
Cost of sales: | |||
Inventory and land option charges | (11.1) | 0 | 0 |
Cost of sales | (1,232.2) | (1,275.3) | (1,188.4) |
Selling, general and administrative expense | 26.1 | 14.7 | 9.3 |
Gain on sale of assets | (11.5) | ||
Loss on extinguishment of debt | 0 | ||
Other (income) expense | 60.1 | 32.8 | 24.2 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 19.3 | (39.6) | (54.2) |
Depreciation and amortization | 20.1 | 13.3 | 10 |
Cash provided by (used in) operating activities | 109.2 | (62.1) | 203.5 |
Northwest | Home Building | |||
Inventories: | |||
Total inventories | 1,907.5 | 1,802.2 | |
Goodwill | 2.2 | 2.2 | |
Revenues: | |||
Revenues | 2,582.4 | 2,658.4 | 2,516.6 |
Cost of sales: | |||
Inventory and land option charges | 6.6 | 7 | 0.6 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 391.1 | 560.8 | 510.8 |
Southwest [Member] | Home Building | |||
Inventories: | |||
Total inventories | 3,133 | 2,801.7 | |
Goodwill | 0 | 0 | |
Revenues: | |||
Revenues | 4,282.8 | 4,840.7 | 4,071 |
Cost of sales: | |||
Inventory and land option charges | 11.3 | 6.3 | 3 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 489.3 | 968.3 | 653.1 |
South Central [Member] | Home Building | |||
Inventories: | |||
Total inventories | 3,810.5 | 3,931.7 | |
Goodwill | 15.9 | 15.9 | |
Revenues: | |||
Revenues | 7,612.6 | 8,192.3 | 6,111.2 |
Cost of sales: | |||
Inventory and land option charges | 7.6 | 9.9 | 5.3 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,388.3 | 1,910.7 | 1,150.2 |
Southeast [Member] | Home Building | |||
Inventories: | |||
Total inventories | 3,958.5 | 4,091.1 | |
Goodwill | 6 | 6 | |
Revenues: | |||
Revenues | 8,760.8 | 7,951.2 | 7,079.6 |
Cost of sales: | |||
Inventory and land option charges | 14.6 | 13.5 | 10.2 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,711.1 | 1,918.5 | 1,371.9 |
East [Member] | Home Building | |||
Inventories: | |||
Total inventories | 3,024.7 | 2,542.7 | |
Goodwill | 60.5 | 60.5 | |
Revenues: | |||
Revenues | 5,325.3 | 5,318.1 | 4,459 |
Cost of sales: | |||
Inventory and land option charges | 8.4 | 12.1 | 2.4 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 935.7 | 1,126.3 | 795.1 |
North | Home Building | |||
Inventories: | |||
Total inventories | 2,078 | 1,935.7 | |
Goodwill | 49.7 | 49.7 | |
Revenues: | |||
Revenues | 3,179.3 | 2,962.4 | 2,340.2 |
Cost of sales: | |||
Inventory and land option charges | 12.2 | 8.4 | 3.4 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 350.8 | 456.3 | 331.7 |
Corporate, Non-Segment [Member] | Home Building | |||
Inventories: | |||
Total inventories | 243.6 | 219.3 | |
Home Building | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 31,641 | 31,861.7 | 26,502.6 |
Cost of sales: | |||
Cost of Goods and Services Sold | 23,952.8 | 22,517.7 | 19,608.3 |
Home Building | Home Building | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 31,641 | 31,861.7 | 26,502.6 |
Cost of sales: | |||
Cost of Goods and Services Sold | 24,201.3 | 22,715.6 | 19,748.4 |
Home Building | Rental | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Home Building | Forestar Group [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Home Building | Financial Services [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Home Building | Eliminations and Other | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | (248.5) | (197.9) | (140.1) |
Land [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 412.4 | 313.1 | 212 |
Cost of sales: | |||
Cost of Goods and Services Sold | 202.8 | 149.5 | 119.3 |
Land [Member] | Home Building | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 102.2 | 61.4 | 75 |
Cost of sales: | |||
Cost of Goods and Services Sold | 53.8 | 39.1 | 56.2 |
Land [Member] | Rental | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Land [Member] | Forestar Group [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 1,436.9 | 1,519.1 | 1,325.8 |
Cost of sales: | |||
Cost of Goods and Services Sold | 1,108.9 | 1,182.7 | 1,093.6 |
Land [Member] | Financial Services [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Land [Member] | Eliminations and Other | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | (1,126.7) | (1,267.4) | (1,188.8) |
Cost of sales: | |||
Cost of Goods and Services Sold | (959.9) | (1,072.3) | (1,030.5) |
Rental | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,605.5 | 510.2 | 236 |
Cost of sales: | |||
Cost of Goods and Services Sold | 1,874.1 | 238.3 | 143 |
Rental | Home Building | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Rental | Rental | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,605.5 | 510.2 | 267.8 |
Cost of sales: | |||
Cost of Goods and Services Sold | 1,886.8 | 243.4 | 160.8 |
Rental | Forestar Group [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Rental | Financial Services [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Cost of sales: | |||
Cost of Goods and Services Sold | 0 | 0 | 0 |
Rental | Eliminations and Other | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | (31.8) |
Cost of sales: | |||
Cost of Goods and Services Sold | (12.7) | (5.1) | (17.8) |
Financial Services [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 801.5 | 795 | 823.6 |
Financial Services [Member] | Home Building | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Financial Services [Member] | Rental | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Financial Services [Member] | Forestar Group [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 |
Financial Services [Member] | Financial Services [Member] | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | 801.5 | 795 | 823.6 |
Financial Services [Member] | Eliminations and Other | |||
Revenues: | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Inventory Impairments and Land Option Cost Write-Offs [Abstract] | ||||
Inventory Write-down | $ 5 | $ 19 | $ 3.8 | $ 5.6 |
Write Offs Recoveries Of Earnest Money Deposits And Pre-Acquisition Costs | 61.3 | $ 66.6 | $ 23 | |
Carrying Value of Communities Impaired | $ 33.8 | $ 33.8 |
Notes Payable - Principal Amoun
Notes Payable - Principal Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Notes payable, carrying value | $ 5,094.5 | $ 6,066.9 |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,900 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 522.7 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,300 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 607.2 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 800 | |
Long-Term Debt, Maturity, after Year Five | 0 | |
Home Building Consolidated | ||
Debt Instrument [Line Items] | ||
Line of credit, amount outstanding | 0 | 0 |
Notes payable, carrying value | 2,329.9 | 2,942.6 |
Unamortized Debt Issuance Expense | 8.4 | 12.2 |
Home Building Consolidated | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, carrying value | $ 239.8 | 156.6 |
Home Building Consolidated | Senior Note Twenty Seven [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 4.75% | |
Notes payable, carrying value | $ 0 | 299.9 |
Home Building Consolidated | SeniorNoteTwentyEight [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 5.75% | |
Notes payable, carrying value | $ 0 | 399.6 |
Home Building Consolidated | SeniorNoteFortyTwo [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 2.50% | |
Notes payable, carrying value | $ 499 | 498.2 |
Home Building Consolidated | SeniorNoteFortyFour | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 2.60% | |
Notes payable, carrying value | $ 498 | 497.1 |
Home Building Consolidated | SeniorNoteFortySIx | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 1.30% | |
Notes payable, carrying value | $ 596.6 | 595.5 |
Home Building Consolidated | Senior Note Forty Five [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 1.40% | |
Notes payable, carrying value | $ 496.5 | 495.7 |
Forestar Group [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, amount outstanding | 0 | 0 |
Notes payable, carrying value | 695 | 706 |
Unamortized Debt Issuance Expense | 5 | 6.5 |
Forestar Group [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, carrying value | $ 0 | 12.5 |
Forestar Group [Member] | Senior Note Forty Seven | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 3.85% | |
Notes payable, carrying value | $ 397.4 | 396.5 |
Forestar Group [Member] | Senior Note Member Forty Three | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate | 5% | |
Notes payable, carrying value | $ 297.6 | 297 |
Financial Services [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, carrying value | 1,669.6 | 1,618.3 |
Rental | ||
Debt Instrument [Line Items] | ||
Line of credit, amount outstanding | 400 | 800 |
Notes payable, carrying value | $ 400 | $ 800 |
Notes Payable - Terms (Details)
Notes Payable - Terms (Details) - Home Building Consolidated $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
SeniorNoteFortyTwo [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 500 |
Debt Instrument, Maturity Date | Oct. 15, 2024 |
Debt Instrument, Call Feature | Yes |
Debt Instrument, Interest Rate, Effective Percentage | 2.70% |
Senior notes, stated interest rate | 2.50% |
SeniorNoteFortyFour | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 500 |
Debt Instrument, Maturity Date | Oct. 15, 2025 |
Debt Instrument, Call Feature | Yes |
Debt Instrument, Interest Rate, Effective Percentage | 2.80% |
Senior notes, stated interest rate | 2.60% |
SeniorNoteFortySIx | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 600 |
Debt Instrument, Maturity Date | Oct. 15, 2026 |
Debt Instrument, Call Feature | Yes |
Debt Instrument, Interest Rate, Effective Percentage | 1.50% |
Senior notes, stated interest rate | 1.30% |
Senior Note Forty Five [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 500 |
Debt Instrument, Maturity Date | Oct. 15, 2027 |
Debt Instrument, Call Feature | Yes |
Debt Instrument, Interest Rate, Effective Percentage | 1.60% |
Senior notes, stated interest rate | 1.40% |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
Notes Payable - Homebuilding Te
Notes Payable - Homebuilding Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Letters of credit, amount outstanding | $ 254.3 | $ 254.3 | ||
Percentage of Company Assets Owned by Entities that Guarantee Homebuilding Senior Notes and Revolving Credit Facility | 76% | 76% | ||
Home Building Consolidated | ||||
Debt Instrument [Line Items] | ||||
Line of credit, current borrowing capacity | $ 2,190 | $ 2,190 | ||
Line of credit, maximum borrowing capacity | $ 3,000 | $ 3,000 | ||
Letter of Credit, Maximum Borrowing Capacity | 100% | 100% | ||
Line of credit, amount outstanding | $ 0 | $ 0 | $ 0 | |
Letters of credit, amount outstanding | 226.6 | 226.6 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 1,960 | 1,960 | ||
Authorized Repurchase Of Debt Securities | 500 | 500 | ||
Debt Repurchase Authorization Remaining | $ 500 | $ 500 | ||
Home Building Consolidated | Senior Notes Subject to Repurchase Upon Change of Control and Ratings Downgrade [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101% | |||
Home Building Consolidated | Senior Note Twenty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, stated interest rate | 4.75% | 4.75% | ||
Maturities of Senior Debt | $ 300 | |||
Home Building Consolidated | SeniorNoteTwentyEight [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, stated interest rate | 5.75% | 5.75% | ||
Maturities of Senior Debt | $ 400 | |||
Debt Instrument, Redemption Price, Percentage | 100% |
Notes Payable - Rental Textuals
Notes Payable - Rental Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 31, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||
Letters of credit, amount outstanding | $ 254.3 | ||
Rental | |||
Debt Instrument [Line Items] | |||
Line of credit, current borrowing capacity | 1,025 | ||
Line of credit, maximum borrowing capacity | 1,250 | ||
Letter of Credit, Maximum Borrowing Capacity (in dollars) | $ 100 | ||
Letter of Credit, Maximum Borrowing Capacity | 50% | ||
Line of credit, amount outstanding | $ 400 | $ 800 | |
Line of Credit Facility, Interest Rate at Period End | 7.70% | ||
Letters of credit, amount outstanding | $ 0 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 625 | ||
Proceeds from Lines of Credit | 700 | ||
Repayments of Lines of Credit | $ 1,100 | ||
Rental | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 2,000 |
Notes Payable - Forestar Textua
Notes Payable - Forestar Textuals (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Letters of credit, amount outstanding | $ 254.3 | |
Forestar Group [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | 410 | |
Line of credit, maximum borrowing capacity | 600 | |
Letter of Credit, Maximum Borrowing Capacity (in dollars) | $ 100 | |
Letter of Credit, Maximum Borrowing Capacity | 50% | |
Line of credit, amount outstanding | $ 0 | $ 0 |
Letters of credit, amount outstanding | 27.7 | |
Line of Credit Facility, Remaining Borrowing Capacity | 382.3 | |
Debt Instrument, Face Amount | 700 | |
Authorized Repurchase Of Debt Securities | 30 | |
Debt Repurchase Authorization Remaining | 30 | |
Forestar Group [Member] | Senior Note Member Forty Three | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 300 | |
Senior notes, stated interest rate | 5% | |
Debt Instrument, Interest Rate, Effective Percentage | 5.20% | |
Forestar Group [Member] | Senior Note Forty Seven | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 400 | |
Senior notes, stated interest rate | 3.85% | |
Debt Instrument, Interest Rate, Effective Percentage | 4.10% |
Notes Payable - Financial Servi
Notes Payable - Financial Services Textuals (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Notes payable, carrying value | $ 5,094.5 | $ 6,066.9 |
Financial Services [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, carrying value | 1,669.6 | 1,618.3 |
Financial Services [Member] | Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Mortgage repurchase facility, current capacity | 300 | |
Participating Mortgage Loans, Mortgage Obligations, Amount | 300.9 | |
Notes payable, carrying value | $ 296.3 | 0 |
Assets Sold under Agreements to Repurchase, Interest Rate | 6.60% | |
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 323 | |
Financial Services [Member] | Commitments to Extend Credit | ||
Debt Instrument [Line Items] | ||
Mortgage repurchase facility, current capacity | 2,000 | |
Line of credit, maximum borrowing capacity | 2,300 | |
Participating Mortgage Loans, Mortgage Obligations, Amount | 2,180 | |
Notes payable, carrying value | $ 1,373.3 | $ 1,618.3 |
Assets Sold under Agreements to Repurchase, Interest Rate | 6.90% | |
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 2,220 |
Capitalized Interest Capitalize
Capitalized Interest Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest, beginning of year | $ 237.4 | $ 217.7 | $ 207.7 |
Interest incurred | 203.5 | 162.5 | 152.2 |
Charged to cost of sales | (154.5) | (142.8) | (142.2) |
Capitalized interest, end of year | 286.4 | 237.4 | 217.7 |
Financial Services [Member] | |||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest incurred | 45.9 | 18.9 | 17 |
Forestar Group [Member] | |||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest incurred | 32.8 | $ 32.9 | $ 41.6 |
Rental | |||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Interest incurred | $ 56 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 445.4 | $ 471.6 | |
Depreciation | 82.9 | 72 | $ 73.3 |
Home Building | |||
Property and Equipment [Line Items] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (299.2) | (289.2) | |
Property, Plant and Equipment, Net | 415 | 361.8 | |
Rental | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 2.4 | 2 | |
Forestar Group [Member] | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 5.9 | 5.7 | |
Financial Services [Member] | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 4.1 | 4.3 | |
Eliminations and Other | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 18 | 97.8 | |
Building and Building Improvements [Member] | Home Building | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 414.6 | 349.6 | |
2510 Household Furniture [Member] | Home Building | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 147 | 133.4 | |
Furniture and Fixtures | Home Building | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 113.5 | 132.5 | |
Land [Member] | Home Building | |||
Property and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 39.1 | $ 35.5 |
Mortgage Loans - Mortgage Loans
Mortgage Loans - Mortgage Loans Held for Sale Textual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loans Receivable [Line Items] | |||
Payments for Origination of Mortgage Loans Held-for-sale | $ 21,200 | $ 19,500 | $ 16,000 |
Proceeds from Sale of Mortgage Loans Held-for-sale | 21,000 | 18,900 | 15,500 |
Net gain on sales of loans | 538.4 | 561.7 | $ 619.1 |
Mortgage loans held for sale | 2,519.9 | 2,386 | |
Mortgage loans held for sale, principal amount | 2,600 | 2,500 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Loans Receivable [Line Items] | |||
Mortgage loans held for sale | 2,469.1 | 2,356.1 | |
Loan Origination Commitments [Member] | |||
Loans Receivable [Line Items] | |||
Derivative, Notional Amount | 1,100 | 532.4 | |
Loan Origination Commitments [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Loans Receivable [Line Items] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 15.7 | 4.8 | |
Other Customer [Member] | Mortgage Loans | Customer Concentration Risk | |||
Loans Receivable [Line Items] | |||
Concentration Risk, Percentage | 34% | ||
Loans Sold to FNMA or securities backed by GNMA [Member] | Mortgage Loans | Customer Concentration Risk | |||
Loans Receivable [Line Items] | |||
Concentration Risk, Percentage | 64% | ||
Hedging Instruments Related To IRLCs [Member] | |||
Loans Receivable [Line Items] | |||
Derivative, Notional Amount | $ 2,600 | 3,800 | |
Hedging Instruments Related To IRLCs [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Loans Receivable [Line Items] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 137.9 | 317.8 | |
Uncommitted Loans [Member] | |||
Loans Receivable [Line Items] | |||
Mortgage loans held for sale | $ 1,700 | $ 1,600 |
Mortgage Loans - Loan Commitmen
Mortgage Loans - Loan Commitments and Related Derivatives Textual (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Interest rate lock commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,700 | $ 4,000 |
Best-efforts whole loan delivery commitments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 18.9 | 23.5 |
Hedging Instruments Related To IRLCs [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,600 | $ 3,800 |
Mortgage Loans - Other Mortgage
Mortgage Loans - Other Mortgage Loans and Real Estate Owned (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||
Other mortgage loans and real estate owned, before loss reserves | $ 14.9 | $ 14.5 |
Mortgage Loans - Mortgage Loss
Mortgage Loans - Mortgage Loss Reserves (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Loss reserves related to: | ||
Reserve balances | $ 9.9 | $ 7.5 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current tax expense (benefit): | |||
Federal | $ 1,293 | $ 1,448.9 | $ 978.1 |
State | 272.4 | 256.1 | 197 |
Total current tax expense (benefit) | 1,565.4 | 1,705 | 1,175.1 |
Deferred tax expense: | |||
Federal | (39) | 21.2 | (12.7) |
State | (6.9) | 7.9 | 2.7 |
Total deferred tax expense (benefit) | (45.9) | 29.1 | (10) |
Total income tax expense (benefit) | $ 1,519.5 | $ 1,734.1 | $ 1,165.1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Comparison of income tax expense (benefit) and tax computed at the statutory rate | |||
Income taxes at federal statutory rate | $ 1,326.1 | $ 1,602.2 | $ 1,124.8 |
Increase (decrease) in tax resulting from: | |||
State income taxes, net of federal benefit | 208.1 | 210 | 166.9 |
Valuation allowance | (3.1) | (2.1) | (3.3) |
Tax credits | (44.4) | (100.8) | (116.3) |
Excess tax benefit from equity compensation | (25.6) | (20.1) | (38.4) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | (1.5) | 0 | (6) |
Other | 59.9 | 44.9 | 37.4 |
Total income tax expense (benefit) | $ 1,519.5 | $ 1,734.1 | $ 1,165.1 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets: | ||
Inventory costs | $ 67.8 | $ 74 |
Inventory impairments | 5.8 | 9.5 |
Warranty and construction defect costs | 281.2 | 239.5 |
Net operating loss carryforwards | 42.2 | 44.1 |
Tax credit carryforwards | 6.8 | 6.4 |
Incentive compensation plans | 88 | 84.7 |
Other | 7 | 12.7 |
Total deferred tax assets | 498.8 | 470.9 |
Valuation allowance | (14.8) | (17.9) |
Total deferred tax assets, net of valuation allowance | 484 | 453 |
Deferred tax liabilities: | ||
Deferral of profit on home closings | 163.6 | 209.4 |
Depreciation of fixed assets | 46.3 | 30.5 |
Deferred Tax Liabilities, Deferral of Income | 23.4 | 18.5 |
Deferred Tax Liabilities, Undistributed Earnings of Subsidiary | 51.7 | 27.3 |
Other | 11.8 | 26.2 |
Total deferred tax liabilities | 296.8 | 311.9 |
Deferred income taxes, net | 187.2 | 141.1 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards | 42.2 | $ 44.1 |
Internal Revenue Service (IRS) | ||
Deferred tax assets: | ||
Net operating loss carryforwards | 29.3 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 29.3 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate | 24.10% | 22.70% | 21.80% |
Federal statutory rate | 21% | 21% | 21% |
Net operating loss carryforwards | $ 42.2 | $ 44.1 | |
Deferred Tax Assets, Valuation Allowance | 14.8 | $ 17.9 | |
Home Building | State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 11.9 | ||
Home Building | State [Member] | NOL Carryforwards to Expire in One to Ten Years [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, subject to expiration | 4.5 | ||
Home Building | State [Member] | NOL Carryforward to Expire in Eleven to Twenty Years [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, subject to expiration | 7.4 | ||
Forestar Group [Member] | State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 1 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 1.4 | $ 2.9 | $ 2.9 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (1.5) | 0 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1.4 | $ 2.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 4,745.7 | $ 5,857.5 | $ 4,175.8 |
Denominator: | |||
Denominator for basic earnings per share - weighted average common shares | 340.7 | 351.7 | 361.1 |
Effect of dilutive securities: | |||
Employee stock awards | 2.6 | 3.1 | 4.7 |
Denominator for diluted earnings per share - adjusted weighted average common shares | 343.3 | 354.8 | 365.8 |
Basic net income per common share attributable to D.R. Horton, Inc. | $ 13.93 | $ 16.65 | $ 11.56 |
Diluted net income per common share attributable to D.R. Horton, Inc. | $ 13.82 | $ 16.51 | $ 11.41 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 31, 2023 | Oct. 31, 2021 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Common stock, shares issued | 401,202,253 | 399,172,937 | 401,202,253 | 399,172,937 | ||||||||||
Common stock, shares outstanding | 334,848,565 | 343,953,023 | 334,848,565 | 343,953,023 | ||||||||||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | ||||||||||
Amount of stock repurchase authorization | $ 1,000 | $ 1,000 | ||||||||||||
Treasury Stock, Common, Shares | 11,100,000 | |||||||||||||
Payments for Repurchase of Common Stock | $ 1,200 | |||||||||||||
Amount remaining under stock repurchase authorization | $ 234 | $ 234 | ||||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||||
Cash dividends declared per common share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | ||||||
Cash dividends paid per common share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 1 | $ 0.90 | $ 0.80 | |||
Forestar Group [Member] | ||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Equity Securities Registered, Value | $ 750 | $ 750 | ||||||||||||
At-the-market Equity Offering Program, Common Stock Available for Issuance | 298.2 | $ 298.2 | $ 300 | |||||||||||
At-the-market Equity Offering Program, Common Stock Issued | 0 | |||||||||||||
Common Stock Available for Issuance, Value Remaining | $ 748.2 | $ 748.2 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Amount of stock repurchase authorization | $ 1,500 | |||||||||||||
Amount remaining under stock repurchase authorization | $ 32.8 | |||||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||||
Cash dividends declared per common share | $ 0.30 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined Contribution Plan, Cost | $ 40.2 | $ 35.4 | $ 30.3 |
Supplemental Executive Retirement Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred Compensation Liability, Current and Noncurrent | 58.9 | 52.1 | |
Compensation expense (reduction in expense) | 8.3 | 7.7 | 7 |
Deferred Compensation Plan For Select Group Of Employees [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred Compensation Liability, Current and Noncurrent | 148.2 | 119.5 | |
Compensation expense (reduction in expense) | $ 17 | $ (24) | $ 21.7 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans - Employee Stock Purchase Plan, Incentive Bonus Plan and Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discounted Price For Purchasing Company's Common Stock | 85% | ||
Employee Stock Purchase Plan, Maximum Percent of Annual Compensation | 15% | ||
Fair Market Value Of Common Stock Available For Purchase To Eligible Employees Maximum | $ 25,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 143,960 | 164,193 | 112,995 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 11,000,000 | $ 10,700,000 | $ 7,500,000 |
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 35,400,000 | $ 40,500,000 | $ 61,600,000 |
Shares available for grant | 1,200,000 | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance, shares | 2,400,000 | ||
Share-based Payment Arrangement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance, shares | 4,400,000 |
Employee Benefit Plans - Time-B
Employee Benefit Plans - Time-Based Restricted Stock Unit Equity Awards (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) grant_recipient $ / shares shares | Sep. 30, 2022 USD ($) grant_recipient $ / shares shares | Sep. 30, 2021 USD ($) grant_recipient $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 115.2 | $ 120.1 | $ 131.3 |
Number of Restricted Stock Units | |||
Outstanding at beginning of year, shares | shares | 3,466,094 | 3,817,265 | 4,725,701 |
Granted, shares | shares | 877,131 | 1,153,124 | 856,615 |
Vested, shares | shares | (1,251,785) | (1,402,642) | (1,644,263) |
Cancelled, shares | shares | (124,515) | (101,653) | (120,788) |
Outstanding at end of year, shares | shares | 2,966,925 | 3,466,094 | 3,817,265 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year, weighted average grant date fair value, per share | $ / shares | $ 57.50 | $ 46.16 | $ 34.79 |
Granted, weighted average grant date fair value, per share | $ / shares | 93.44 | 74.96 | 83.13 |
Vested, weighted average grant date fair value, per share | $ / shares | 50.61 | 41.44 | 33.26 |
Cancelled, weighted average grant date fair value, per share | $ / shares | 61.95 | 51.22 | 39.16 |
Outstanding at end of year, weighted average grant date fair value, per share | $ / shares | $ 70.85 | $ 57.50 | $ 46.16 |
Additional information - restricted stock units | |||
Share-based compensation expense | $ | $ 65.7 | $ 63.6 | $ 56.5 |
Unrecognized compensation expense | $ | $ 156.4 | ||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 6 days | ||
Minimum [Member] | |||
Additional information - restricted stock units | |||
Vesting period | 3 years | ||
Maximum [Member] | |||
Additional information - restricted stock units | |||
Vesting period | 5 years | ||
Fiscal 2021 Grant | |||
Additional information - restricted stock units | |||
RSU grant recipients | grant_recipient | 1,030 | ||
Fiscal 2022 Grant | |||
Additional information - restricted stock units | |||
RSU grant recipients | grant_recipient | 1,200 | ||
Fiscal 2023 Grant | |||
Additional information - restricted stock units | |||
RSU grant recipients | grant_recipient | 1,380 |
Employee Benefit Plans - Perfor
Employee Benefit Plans - Performance-Based Restricted Stock Units (Details) - Performance Shares [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2023 | Oct. 31, 2022 | Mar. 31, 2022 | Oct. 31, 2021 | Nov. 30, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 36.9 | $ 26.8 | $ 12.5 | |||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Range of percentage of units vested upon achieving performance criteria | 0% | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Range of percentage of units vested upon achieving performance criteria | 200% | |||||||
Fiscal 2021 Grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target number of performance units | 360,000 | |||||||
Granted, weighted average grant date fair value, per share | $ 70.60 | |||||||
Share-based compensation expense | $ 11 | 12.5 | 12.5 | |||||
Fiscal 2021 Grant | Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock awarded | 607,500 | |||||||
Fiscal 2022 Grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target number of performance units | 430,000 | 390,000 | ||||||
Granted, weighted average grant date fair value, per share | $ 80.58 | |||||||
Share-based compensation expense | 14.3 | 14.3 | 0 | |||||
Fiscal 2023 Grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target number of performance units | 600,000 | |||||||
Granted, weighted average grant date fair value, per share | $ 79.97 | |||||||
Share-based compensation expense | $ 11.6 | $ 0 | $ 0 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Options (Details) - Share-based Payment Arrangement, Option [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Options | |||
Outstanding at beginning of year, shares | 823,486 | 1,115,776 | 2,224,415 |
Exercised, shares | (603,823) | (292,290) | (1,108,639) |
Canceled or expired, shares | 0 | 0 | 0 |
Outstanding at end of year, shares | 219,663 | 823,486 | 1,115,776 |
Exercisable at end of year, shares | 219,663 | 823,486 | 1,115,776 |
Weighted Average Exercise Price | |||
Outstanding at beginning of year, weighted average exercise price, per share | $ 23.84 | $ 23.84 | $ 19.94 |
Exercised, weighted average exercise price, per share | 23.83 | 23.83 | 16.02 |
Canceled or expired, weighted average exercise price, per share | 0 | 0 | 0 |
Outstanding at end of year, weighted average exercise price, per share | 23.86 | 23.84 | 23.84 |
Exercisable at end of year, weighted average exercise price, per share | $ 23.86 | $ 23.84 | $ 23.84 |
Additional information - stock options | |||
Expiration period | 10 years | ||
Total intrinsic value of options exercised | $ 47.2 | $ 23 | $ 82.5 |
Aggregate intrinsic value of options outstanding | $ 18.4 | ||
Lower range of options outstanding exercise price | $ 23.57 | ||
Upper range of options outstanding exercise price | $ 23.86 | ||
Weighted average remaining contractual term of options outstanding | 4 months 24 days |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in warranty liability | ||
Warranty liability, beginning of year | $ 454.3 | $ 376.3 |
Warranties issued | 191.2 | 185.8 |
Changes in liability for pre-existing warranties | (4.7) | 15.1 |
Settlements made | (128.4) | (122.9) |
Warranty liability, end of year | $ 512.4 | $ 454.3 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Reserves for Legal Claims (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Rollforward of reserves for legal claims | ||
Reserves for legal claims, beginning of period | $ 729.1 | $ 577.5 |
Change in reserves | 179.9 | 186.1 |
Payments | (50.1) | (34.5) |
Reserves for legal claims, end of period | $ 858.9 | $ 729.1 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Contingency [Abstract] | |||
Liabilities for various claims, complaints and other legal actions | $ 858.9 | $ 729.1 | $ 577.5 |
Construction defect portion of loss contingency accrual | 97% | 99% | |
Expenses related to legal claims | $ 139.7 | $ 138 | $ 72.4 |
Maximum amount deductible under workers compensation insurance policy | 0.5 | ||
Deductible policy amount per occurrence | 0.5 | 0.5 | |
Estimated insurance recoveries related to legal claims | 165.8 | 137.9 | |
Other Commitments [Abstract] | |||
Surety bonds | 3,200 | ||
Outstanding letters of credit | 254.3 | ||
Forestar Group [Member] | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Deposits | 139.1 | ||
Purchase Obligation | 1,300 | ||
Increase (Decrease) in Earnest Money Deposits Outstanding | 10.9 | 8.7 | |
Increase (Decrease) in Prepaid Expenses, Other | 21.8 | $ 58.9 | |
Other Commitments [Abstract] | |||
Outstanding letters of credit | 27.7 | ||
Home Building | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Deposits | 1,800 | ||
Purchase Obligation | 21,100 | ||
Home Building | Cash Deposits [Member] | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Deposits | 1,700 | ||
Home Building | Promissory notes and letters of credit [Member] | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Deposits | 119.4 | ||
Option Contracts Subject to Specific Performance Clauses [Member] | Forestar Group [Member] | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Purchase Obligation | 183 | ||
Option Contracts Subject to Specific Performance Clauses [Member] | Home Building | |||
Land and Lot Option Purchase Contracts [Abstract] | |||
Purchase Obligation | $ 226.3 |
Commitments and Contingencies_3
Commitments and Contingencies - Minimum Annual Lease Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Minimum annual lease payments | |||
Fiscal 2024 | $ 25.2 | ||
Fiscal 2025 | 14.7 | ||
Fiscal 2026 | 6.6 | ||
Fiscal 2027 | 4.1 | ||
Fiscal 2028 | 1.9 | ||
Thereafter | 0.1 | ||
Total | 52.6 | ||
Operating Lease, Expense | $ 44.7 | $ 38.1 | $ 31.7 |
Other Assets, Accrued Expense_3
Other Assets, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Other assets | |||
Earnest money and refundable deposits | $ 1,859.6 | $ 1,685.7 | |
Mortgage hedging instruments and commitments | 153.6 | 330.2 | |
Water rights and other water-related assets | 319.6 | 286.6 | |
Other receivables | 167.2 | 210.9 | |
Insurance receivables | 165.8 | 137.9 | |
Prepaid assets | 93 | 77.4 | |
Contract assets - insurance agency commissions | 93.9 | 74.3 | |
Lease right of use assets | 46.6 | 46.6 | |
Mortgage servicing rights | 11.1 | 10.6 | |
Other | $ 80.3 | $ 52.4 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets | |
Total other assets | $ 2,993 | $ 2,960.3 | |
Accrued expenses and other liabilities | |||
Reserves for legal claims | 858.9 | 729.1 | $ 577.5 |
Employee compensation and related liabilities | 531 | 524.3 | |
Warranty liability | 512.4 | 454.3 | $ 376.3 |
Inventory related accruals | 353.6 | 403.6 | |
Broker deposits related to hedging instruments | 118.9 | 240.9 | |
Customer deposits | 147.1 | 224.2 | |
Federal and state income tax liabilities | 233.8 | 110.9 | |
Accrued property taxes | 69.2 | 60.1 | |
Lease liabilities | 48.1 | 47.9 | |
Accrued interest | 33.6 | 33.8 | |
Mortgage hedging instruments and commitments | 15.7 | 12.4 | |
Other | $ 147.6 | $ 113.3 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | Other Liabilities | Other Liabilities | |
Total accrued expenses and other liabilities | $ 3,103.8 | $ 3,138.3 | |
Interest Rate Lock Commitments | |||
Other assets | |||
Interest rate lock commitments | 2.3 | 47.7 | |
Accrued expenses and other liabilities | |||
Interest rate lock commitments | $ 33.9 | $ 183.5 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Estimate fair value [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | $ 2,480,700,000 | $ 2,370,200,000 | |
Mortgage servicing rights | 11,100,000 | 10,600,000 | |
Estimate fair value [Member] | Recurring [Member] | Interest rate lock commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | (31,600,000) | (135,800,000) | |
Mortgage hedging instruments and commitments | (33,900,000) | (183,500,000) | |
Estimate fair value [Member] | Recurring [Member] | Forward Sales Of MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | 137,900,000 | 317,800,000 | |
Mortgage loans held for sale | 2,519,900,000 | 2,386,000,000 | |
Mortgage servicing rights | 11,100,000 | 10,600,000 | |
Mortgage hedging instruments and commitments | 153,600,000 | 330,200,000 | |
Mortgage hedging instruments and commitments | (15,700,000) | (12,400,000) | |
Interest rate lock commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 2,300,000 | 47,700,000 | |
Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Interest rate lock commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Forward Sales Of MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 2,469,100,000 | 2,356,100,000 | |
Mortgage servicing rights | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | Interest rate lock commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | Forward Sales Of MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | 137,900,000 | 317,800,000 | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 11,600,000 | 14,100,000 | $ 11,700,000 |
Mortgage servicing rights | 11,100,000 | 10,600,000 | 4,100,000 |
Recurring [Member] | Level 3 [Member] | Measurement Input, Prepayment Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing Asset at Fair Value, Amount | 0.10 | ||
Recurring [Member] | Level 3 [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing Asset at Fair Value, Amount | 0.11 | ||
Recurring [Member] | Level 3 [Member] | Measurement Input, Default Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing Asset at Fair Value, Amount | 0.08 | ||
Recurring [Member] | Level 3 [Member] | Interest rate lock commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | (31,600,000) | (135,800,000) | $ 17,200,000 |
Recurring [Member] | Level 3 [Member] | Forward Sales Of MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives not designated as hedging instruments | $ 0 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Level 3 Rollforward (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Mortgage loans held for sale | $ 2,519,900,000 | $ 2,386,000,000 | |
Mortgage servicing rights | 11,100,000 | 10,600,000 | |
Loans Receivable [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2,600,000 | (700,000) | |
Purchases | 0 | 0 | |
Sales and Settlements | (14,800,000) | (3,900,000) | |
Principal Reductions | 0 | 0 | |
Net transfers to (out of) Level 3 | 9,700,000 | 7,000,000 | |
Contractual Rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 200,000 | (1,200,000) | |
Purchases | 52,400,000 | 35,300,000 | |
Sales and Settlements | (52,100,000) | (27,600,000) | |
Principal Reductions | 0 | 0 | |
Net transfers to (out of) Level 3 | 0 | 0 | |
Derivative Financial Instruments, Assets | Derivative Financial Instruments, Liabilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 104,200,000 | (153,000,000) | |
Purchases | 0 | 0 | |
Sales and Settlements | 0 | 0 | |
Principal Reductions | 0 | 0 | |
Net transfers to (out of) Level 3 | 0 | 0 | |
Level 3 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Mortgage loans held for sale | 11,600,000 | 14,100,000 | $ 11,700,000 |
Mortgage servicing rights | 11,100,000 | 10,600,000 | 4,100,000 |
Level 3 [Member] | Fair Value, Recurring [Member] | Interest Rate Lock Commitments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | (31,600,000) | $ (135,800,000) | $ 17,200,000 |
Measurement Input, Prepayment Rate [Member] | Level 3 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Servicing Asset at Fair Value, Amount | 0.10 | ||
Measurement Input, Discount Rate [Member] | Level 3 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Servicing Asset at Fair Value, Amount | 0.11 | ||
Measurement Input, Default Rate [Member] | Level 3 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Servicing Asset at Fair Value, Amount | $ 0.08 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured on a Nonrecurring Basis (Details) $ in Millions | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 2,519.9 | $ 2,386 |
Inventories [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.12 | |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 0 | 0 |
Other mortgage loans | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Inventories [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 30.7 | 15.8 |
Other mortgage loans | 2.2 | 1.5 |
Nonrecurring [Member] | Level 3 [Member] | Inventories [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventories | $ 28.8 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Estimate fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | $ 3,873.6 | $ 2,540.5 |
Restricted cash, fair value | 26.5 | 32.4 |
Notes payable, fair value | 4,841.9 | 5,709.3 |
Cash and Cash Equivalents, carrying value | 3,873.6 | 2,540.5 |
Restricted cash, carrying value | 26.5 | 32.4 |
Notes payable, carrying value | 5,094.5 | 6,066.9 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 3,873.6 | 2,540.5 |
Restricted cash, fair value | 26.5 | 32.4 |
Notes payable, fair value | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Restricted cash, fair value | 0 | 0 |
Notes payable, fair value | 2,532.5 | 3,121.7 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Restricted cash, fair value | 0 | 0 |
Notes payable, fair value | $ 2,309.4 | $ 2,587.6 |