QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
75-2386963
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
|
|
1341 Horton Circle
Arlington, Texas 76011
|
|
|
|
(Address of principal executive offices) (Zip Code)
|
|
|
|
|
|
|
|
(817) 390-8200
|
|
|
|
(Registrant’s telephone number, including area code)
|
|
|
|
|
|
|
|
Not Applicable
|
|
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
|
Large accelerated filer
ý
|
|
Accelerated filer
¨
|
|
Non-accelerated filer
¨
(Do not check if a
smaller reporting company)
|
|
Smaller reporting company
¨
|
|
Emerging growth company
¨
|
|
|
|
Page
|
|
|
|
|
|
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
|
(In millions)
(Unaudited) |
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
920.3
|
|
|
$
|
1,007.8
|
|
Restricted cash
|
53.7
|
|
|
16.5
|
|
||
Inventories:
|
|
|
|
||||
Construction in progress and finished homes
|
4,907.8
|
|
|
4,606.0
|
|
||
Residential land and lots — developed and under development
|
4,827.7
|
|
|
4,519.7
|
|
||
Land held for development
|
100.5
|
|
|
101.0
|
|
||
Land held for sale
|
204.2
|
|
|
10.4
|
|
||
|
10,040.2
|
|
|
9,237.1
|
|
||
Investment in unconsolidated entities
|
86.1
|
|
|
—
|
|
||
Mortgage loans held for sale
|
538.2
|
|
|
587.3
|
|
||
Deferred income taxes, net of valuation allowance of $21.7 million and $11.2 million
at December 31, 2017 and September 30, 2017, respectively
|
239.1
|
|
|
365.0
|
|
||
Property and equipment, net
|
357.7
|
|
|
325.0
|
|
||
Other assets
|
622.0
|
|
|
565.9
|
|
||
Goodwill
|
100.0
|
|
|
80.0
|
|
||
Total assets
|
$
|
12,957.3
|
|
|
$
|
12,184.6
|
|
LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
575.7
|
|
|
$
|
580.4
|
|
Accrued expenses and other liabilities
|
1,068.1
|
|
|
985.0
|
|
||
Notes payable
|
3,258.1
|
|
|
2,871.6
|
|
||
Total liabilities
|
4,901.9
|
|
|
4,437.0
|
|
||
Commitments and contingencies (Note K)
|
|
|
|
|
|
||
EQUITY
|
|
|
|
||||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 385,244,037 shares issued
and 375,693,966 shares outstanding at December 31, 2017 and 384,036,150 shares issued
and 374,986,079 shares outstanding at September 30, 2017
|
3.9
|
|
|
3.8
|
|
||
Additional paid-in capital
|
3,010.2
|
|
|
2,992.2
|
|
||
Retained earnings
|
5,088.2
|
|
|
4,946.0
|
|
||
Treasury stock, 9,550,071 shares and 9,050,071 shares at December 31, 2017
and September 30, 2017, respectively, at cost
|
(220.3
|
)
|
|
(194.9
|
)
|
||
Stockholders’ equity
|
7,882.0
|
|
|
7,747.1
|
|
||
Noncontrolling interests
|
173.4
|
|
|
0.5
|
|
||
Total equity
|
8,055.4
|
|
|
7,747.6
|
|
||
Total liabilities and equity
|
$
|
12,957.3
|
|
|
$
|
12,184.6
|
|
|
Three Months Ended
December 31, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions, except per share data)
(Unaudited) |
||||||
Revenues
|
$
|
3,332.7
|
|
|
$
|
2,904.2
|
|
Cost of sales
|
2,580.1
|
|
|
2,267.9
|
|
||
Selling, general and administrative expense
|
384.2
|
|
|
325.9
|
|
||
Equity in earnings of unconsolidated entities
|
(2.3
|
)
|
|
—
|
|
||
Other (income) expense
|
(20.5
|
)
|
|
(7.7
|
)
|
||
Income before income taxes
|
391.2
|
|
|
318.1
|
|
||
Income tax expense
|
202.4
|
|
|
111.2
|
|
||
Net income
|
188.8
|
|
|
206.9
|
|
||
Net loss attributable to noncontrolling interests
|
(0.5
|
)
|
|
—
|
|
||
Net income attributable to D.R. Horton, Inc.
|
$
|
189.3
|
|
|
$
|
206.9
|
|
|
|
|
|
|
|
||
Basic net income per common share attributable to D.R. Horton, Inc.
|
$
|
0.50
|
|
|
$
|
0.55
|
|
Diluted net income per common share attributable to D.R. Horton, Inc.
|
$
|
0.49
|
|
|
$
|
0.55
|
|
Cash dividends declared per common share
|
$
|
0.125
|
|
|
$
|
0.10
|
|
|
Three Months Ended
December 31, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
(Unaudited) |
||||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
188.8
|
|
|
$
|
206.9
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
16.2
|
|
|
14.4
|
|
||
Amortization of discounts and fees
|
1.2
|
|
|
1.3
|
|
||
Stock based compensation expense
|
13.6
|
|
|
9.3
|
|
||
Equity in earnings of unconsolidated entities
|
(2.3
|
)
|
|
—
|
|
||
Distributions of earnings of unconsolidated entities
|
0.2
|
|
|
—
|
|
||
Excess income tax benefit from employee stock awards
|
—
|
|
|
(0.5
|
)
|
||
Deferred income taxes
|
126.3
|
|
|
8.3
|
|
||
Inventory and land option charges
|
3.7
|
|
|
2.3
|
|
||
Gain on sale of rental properties
|
(13.4
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Increase in construction in progress and finished homes
|
(302.3
|
)
|
|
(246.3
|
)
|
||
Increase in residential land and lots –
developed, under development, held for development and held for sale
|
(185.2
|
)
|
|
(152.6
|
)
|
||
Decrease (increase) in other assets
|
4.3
|
|
|
(4.9
|
)
|
||
Decrease in mortgage loans held for sale
|
49.1
|
|
|
105.7
|
|
||
Increase in accounts payable, accrued expenses and other liabilities
|
24.8
|
|
|
27.9
|
|
||
Net cash used in operating activities
|
(75.0
|
)
|
|
(28.2
|
)
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Expenditures for property and equipment
|
(44.4
|
)
|
|
(22.2
|
)
|
||
Proceeds from sale of rental properties
|
24.8
|
|
|
—
|
|
||
Increase in restricted cash
|
(37.2
|
)
|
|
(6.0
|
)
|
||
Investment in unconsolidated entities
|
(0.1
|
)
|
|
—
|
|
||
Return of investment in unconsolidated entities
|
15.0
|
|
|
—
|
|
||
Net principal decrease of other mortgage loans and real estate owned
|
0.1
|
|
|
1.0
|
|
||
Payments related to acquisition of a business, net of cash acquired
|
(156.4
|
)
|
|
(4.1
|
)
|
||
Net cash used in investing activities
|
(198.2
|
)
|
|
(31.3
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from notes payable
|
1,113.9
|
|
|
—
|
|
||
Repayment of notes payable
|
(825.8
|
)
|
|
(0.3
|
)
|
||
Payments on mortgage repurchase facility, net
|
(32.6
|
)
|
|
(54.0
|
)
|
||
Proceeds from stock associated with certain employee benefit plans
|
14.6
|
|
|
2.8
|
|
||
Excess income tax benefit from employee stock awards
|
—
|
|
|
0.5
|
|
||
Cash paid for shares withheld for taxes
|
(10.3
|
)
|
|
(5.1
|
)
|
||
Cash dividends paid
|
(47.0
|
)
|
|
(37.3
|
)
|
||
Repurchases of common stock
|
(25.4
|
)
|
|
—
|
|
||
Distributions to noncontrolling interests, net
|
(1.7
|
)
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
185.7
|
|
|
(93.4
|
)
|
||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(87.5
|
)
|
|
(152.9
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,007.8
|
|
|
1,303.2
|
|
||
Cash and cash equivalents at end of period
|
$
|
920.3
|
|
|
$
|
1,150.3
|
|
Supplemental disclosures of non-cash activities:
|
|
|
|
||||
Stock issued under employee incentive plans
|
$
|
13.9
|
|
|
$
|
7.1
|
|
Cash
|
$
|
401.9
|
|
Inventories
|
344.7
|
|
|
Investment in unconsolidated entities
|
99.2
|
|
|
Other assets
|
51.2
|
|
|
Goodwill
|
20.0
|
|
|
Total assets
|
917.0
|
|
|
|
|
||
Accounts payable
|
4.0
|
|
|
Accrued expenses and other liabilities
|
49.4
|
|
|
Notes payable
|
130.1
|
|
|
Total liabilities
|
183.5
|
|
|
|
|
||
Less: Noncontrolling interests
|
175.2
|
|
|
Net assets acquired
|
$
|
558.3
|
|
|
|
Three Months Ended
December 31, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Revenues
|
|
$
|
3,332.7
|
|
|
$
|
2,968.7
|
|
Net income attributable to D.R. Horton, Inc.
|
|
$
|
192.7
|
|
|
$
|
237.6
|
|
Diluted net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.50
|
|
|
$
|
0.63
|
|
|
East:
|
|
Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia
|
|
Midwest:
|
|
Colorado, Illinois and Minnesota
|
|
Southeast:
|
|
Alabama, Florida, Georgia, Mississippi and Tennessee
|
|
South Central:
|
|
Louisiana, Oklahoma and Texas
|
|
Southwest:
|
|
Arizona and New Mexico
|
|
West:
|
|
California, Hawaii, Nevada, Oregon, Utah and Washington
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Other Adjustments (3)
|
|
Consolidated
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
558.0
|
|
|
$
|
321.8
|
|
|
$
|
24.5
|
|
|
$
|
16.0
|
|
|
$
|
—
|
|
|
$
|
920.3
|
|
Restricted cash
|
|
8.3
|
|
|
40.0
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
53.7
|
|
||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction in progress and finished homes
|
|
4,907.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,907.8
|
|
||||||
Residential land and lots — developed and under development
|
|
4,649.2
|
|
|
131.8
|
|
|
—
|
|
|
—
|
|
|
46.7
|
|
|
4,827.7
|
|
||||||
Land held for development
|
|
100.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.5
|
|
||||||
Land held for sale
|
|
18.2
|
|
|
183.2
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
204.2
|
|
||||||
|
|
9,675.7
|
|
|
315.0
|
|
|
—
|
|
|
—
|
|
|
49.5
|
|
|
10,040.2
|
|
||||||
Investment in unconsolidated entities
|
|
—
|
|
|
65.1
|
|
|
—
|
|
|
—
|
|
|
21.0
|
|
|
86.1
|
|
||||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
538.2
|
|
|
—
|
|
|
—
|
|
|
538.2
|
|
||||||
Deferred income taxes
|
|
236.3
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
239.1
|
|
||||||
Property and equipment, net
|
|
204.3
|
|
|
2.0
|
|
|
3.1
|
|
|
148.3
|
|
|
—
|
|
|
357.7
|
|
||||||
Other assets
|
|
545.3
|
|
|
18.4
|
|
|
34.1
|
|
|
3.8
|
|
|
20.4
|
|
|
622.0
|
|
||||||
Goodwill
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.0
|
|
|
100.0
|
|
||||||
|
|
$
|
11,307.9
|
|
|
$
|
764.8
|
|
|
$
|
605.3
|
|
|
$
|
168.1
|
|
|
$
|
111.2
|
|
|
$
|
12,957.3
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
|
$
|
567.0
|
|
|
$
|
2.4
|
|
|
$
|
1.6
|
|
|
$
|
4.7
|
|
|
$
|
—
|
|
|
$
|
575.7
|
|
Accrued expenses and other liabilities
|
|
997.2
|
|
|
45.5
|
|
|
30.9
|
|
|
18.3
|
|
|
(23.8
|
)
|
|
1,068.1
|
|
||||||
Notes payable
|
|
2,749.6
|
|
|
108.4
|
|
|
387.5
|
|
|
—
|
|
|
12.6
|
|
|
3,258.1
|
|
||||||
|
|
$
|
4,313.8
|
|
|
$
|
156.3
|
|
|
$
|
420.0
|
|
|
$
|
23.0
|
|
|
$
|
(11.2
|
)
|
|
$
|
4,901.9
|
|
(1)
|
Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition and the reclassification of
$2.1 million
of interest expense to inventory.
|
|
|
September 30, 2017
|
||||||||||||||
|
|
Homebuilding
|
|
Financial Services
|
|
Other (1)
|
|
Consolidated
|
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
973.0
|
|
|
$
|
24.1
|
|
|
$
|
10.7
|
|
|
$
|
1,007.8
|
|
Restricted cash
|
|
9.3
|
|
|
7.2
|
|
|
—
|
|
|
16.5
|
|
||||
Inventories:
|
|
|
|
|
|
|
|
|
||||||||
Construction in progress and finished homes
|
|
4,606.0
|
|
|
—
|
|
|
—
|
|
|
4,606.0
|
|
||||
Residential land and lots — developed and under development
|
|
4,519.7
|
|
|
—
|
|
|
—
|
|
|
4,519.7
|
|
||||
Land held for development
|
|
101.0
|
|
|
—
|
|
|
—
|
|
|
101.0
|
|
||||
Land held for sale
|
|
10.4
|
|
|
—
|
|
|
—
|
|
|
10.4
|
|
||||
|
|
9,237.1
|
|
|
—
|
|
|
—
|
|
|
9,237.1
|
|
||||
Mortgage loans held for sale
|
|
—
|
|
|
587.3
|
|
|
—
|
|
|
587.3
|
|
||||
Deferred income taxes
|
|
365.0
|
|
|
—
|
|
|
—
|
|
|
365.0
|
|
||||
Property and equipment, net
|
|
194.4
|
|
|
3.0
|
|
|
127.6
|
|
|
325.0
|
|
||||
Other assets
|
|
518.7
|
|
|
42.2
|
|
|
5.0
|
|
|
565.9
|
|
||||
Goodwill
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
80.0
|
|
||||
|
|
$
|
11,377.5
|
|
|
$
|
663.8
|
|
|
$
|
143.3
|
|
|
$
|
12,184.6
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
|
$
|
575.6
|
|
|
$
|
1.5
|
|
|
$
|
3.3
|
|
|
$
|
580.4
|
|
Accrued expenses and other liabilities
|
|
933.1
|
|
|
35.6
|
|
|
16.3
|
|
|
985.0
|
|
||||
Notes payable
|
|
2,451.6
|
|
|
420.0
|
|
|
—
|
|
|
2,871.6
|
|
||||
|
|
$
|
3,960.3
|
|
|
$
|
457.1
|
|
|
$
|
19.6
|
|
|
$
|
4,437.0
|
|
(1)
|
Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.
|
|
|
Three Months Ended December 31, 2017
|
||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Other Adjustments (3)
|
|
Consolidated
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales
|
|
$
|
3,184.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,184.5
|
|
Land/lot sales and other
|
|
36.4
|
|
|
30.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67.2
|
|
||||||
Financial services
|
|
—
|
|
|
—
|
|
|
81.0
|
|
|
—
|
|
|
—
|
|
|
81.0
|
|
||||||
|
|
3,220.9
|
|
|
30.8
|
|
|
81.0
|
|
|
—
|
|
|
—
|
|
|
3,332.7
|
|
||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home sales
|
|
2,521.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,521.5
|
|
||||||
Land/lot sales and other
|
|
31.2
|
|
|
19.3
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
54.9
|
|
||||||
Inventory and land option charges
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
||||||
|
|
2,556.4
|
|
|
19.3
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
2,580.1
|
|
||||||
Selling, general and administrative expense
|
|
304.8
|
|
|
13.6
|
|
|
61.7
|
|
|
4.0
|
|
|
0.1
|
|
|
384.2
|
|
||||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
(7.6
|
)
|
|
—
|
|
|
—
|
|
|
5.3
|
|
|
(2.3
|
)
|
||||||
Interest expense
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
||||||
Other (income) expense
|
|
(14.1
|
)
|
|
(0.6
|
)
|
|
(2.9
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
(20.5
|
)
|
||||||
Income before income taxes
|
|
$
|
373.8
|
|
|
$
|
4.0
|
|
|
$
|
22.2
|
|
|
$
|
(1.1
|
)
|
|
$
|
(7.7
|
)
|
|
$
|
391.2
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
13.1
|
|
|
$
|
1.2
|
|
|
$
|
0.4
|
|
|
$
|
1.4
|
|
|
$
|
0.1
|
|
|
$
|
16.2
|
|
Cash (used in) provided by operating activities
|
|
$
|
(101.6
|
)
|
|
$
|
(36.2
|
)
|
|
$
|
67.9
|
|
|
$
|
3.0
|
|
|
$
|
(8.1
|
)
|
|
$
|
(75.0
|
)
|
(1)
|
Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition and the reclassification of
$2.1 million
of interest expense to inventory.
|
|
|
Three Months Ended December 31, 2016
|
||||||||||||||
|
|
Homebuilding
|
|
Financial Services
|
|
Other (1)
|
|
Consolidated
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
$
|
2,797.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,797.7
|
|
Land/lot sales and other
|
|
28.4
|
|
|
—
|
|
|
—
|
|
|
28.4
|
|
||||
Financial services
|
|
—
|
|
|
78.1
|
|
|
—
|
|
|
78.1
|
|
||||
|
|
2,826.1
|
|
|
78.1
|
|
|
—
|
|
|
2,904.2
|
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
2,244.8
|
|
|
—
|
|
|
—
|
|
|
2,244.8
|
|
||||
Land/lot sales and other
|
|
20.8
|
|
|
—
|
|
|
—
|
|
|
20.8
|
|
||||
Inventory and land option charges
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
||||
|
|
2,267.9
|
|
|
—
|
|
|
—
|
|
|
2,267.9
|
|
||||
Selling, general and administrative expense
|
|
268.4
|
|
|
54.8
|
|
|
2.7
|
|
|
325.9
|
|
||||
Other (income) expense
|
|
(4.1
|
)
|
|
(3.2
|
)
|
|
(0.4
|
)
|
|
(7.7
|
)
|
||||
Income before income taxes
|
|
$
|
293.9
|
|
|
$
|
26.5
|
|
|
$
|
(2.3
|
)
|
|
$
|
318.1
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
|
|
$
|
13.3
|
|
|
$
|
0.3
|
|
|
$
|
0.8
|
|
|
$
|
14.4
|
|
Cash (used in) provided by operating activities
|
|
$
|
(98.3
|
)
|
|
$
|
59.9
|
|
|
$
|
10.2
|
|
|
$
|
(28.2
|
)
|
(1)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
Homebuilding Inventories by Reporting Segment
(1)
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
East
|
|
$
|
1,155.6
|
|
|
$
|
1,068.9
|
|
Midwest
|
|
543.3
|
|
|
492.6
|
|
||
Southeast
|
|
2,470.2
|
|
|
2,392.3
|
|
||
South Central
|
|
2,281.9
|
|
|
2,199.4
|
|
||
Southwest
|
|
516.7
|
|
|
506.1
|
|
||
West
|
|
2,477.7
|
|
|
2,352.5
|
|
||
Corporate and unallocated (2)
|
|
230.3
|
|
|
225.3
|
|
||
|
|
$
|
9,675.7
|
|
|
$
|
9,237.1
|
|
(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 capitalized interest and property taxes.
|
Homebuilding Results by Reporting Segment
|
|
Three Months Ended
December 31, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Revenues
|
|
|
|
|
||||
East
|
|
$
|
393.0
|
|
|
$
|
305.9
|
|
Midwest
|
|
161.4
|
|
|
151.1
|
|
||
Southeast
|
|
988.7
|
|
|
883.4
|
|
||
South Central
|
|
808.8
|
|
|
756.9
|
|
||
Southwest
|
|
156.4
|
|
|
108.6
|
|
||
West
|
|
712.6
|
|
|
620.2
|
|
||
|
|
$
|
3,220.9
|
|
|
$
|
2,826.1
|
|
Income before Income Taxes (1)
|
|
|
|
|
||||
East
|
|
$
|
45.0
|
|
|
$
|
26.3
|
|
Midwest
|
|
13.3
|
|
|
10.2
|
|
||
Southeast
|
|
122.5
|
|
|
99.6
|
|
||
South Central
|
|
101.5
|
|
|
96.5
|
|
||
Southwest
|
|
14.7
|
|
|
4.0
|
|
||
West
|
|
76.8
|
|
|
57.3
|
|
||
|
|
$
|
373.8
|
|
|
$
|
293.9
|
|
(1)
|
Expenses maintained at the corporate level consist primarily of 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 segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.
|
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Homebuilding:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
Revolving credit facility, maturing 2022
|
|
$
|
300.0
|
|
|
$
|
—
|
|
3.625% senior notes due 2018
|
|
—
|
|
|
399.7
|
|
||
3.75% senior notes due 2019
|
|
499.0
|
|
|
498.8
|
|
||
4.0% senior notes due 2020
|
|
498.1
|
|
|
497.9
|
|
||
2.55% senior notes due 2020
|
|
397.4
|
|
|
—
|
|
||
4.375% senior notes due 2022
|
|
348.1
|
|
|
348.1
|
|
||
4.75% senior notes due 2023
|
|
298.5
|
|
|
298.4
|
|
||
5.75% senior notes due 2023
|
|
397.7
|
|
|
397.6
|
|
||
Other secured notes
|
|
10.8
|
|
|
11.1
|
|
||
|
|
2,749.6
|
|
|
2,451.6
|
|
||
Forestar:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
3.75% convertible senior notes due 2020
|
|
120.7
|
|
|
|
|||
Other indebtedness
|
|
0.3
|
|
|
|
|||
|
|
121.0
|
|
|
|
|||
Financial Services:
|
|
|
|
|
||||
Mortgage repurchase facility, maturing 2018
|
|
387.5
|
|
|
420.0
|
|
||
|
|
$
|
3,258.1
|
|
|
$
|
2,871.6
|
|
|
|
Three Months Ended
December 31, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Capitalized interest, beginning of period
|
|
$
|
167.9
|
|
|
$
|
191.2
|
|
Interest incurred (1)
|
|
31.0
|
|
|
33.5
|
|
||
Interest charged to cost of sales
|
|
(28.6
|
)
|
|
(34.7
|
)
|
||
Capitalized interest, end of period
|
|
$
|
170.3
|
|
|
$
|
190.0
|
|
(1)
|
Interest incurred includes interest on the Company's mortgage repurchase facility of
$2.1 million
and
$1.7 million
in the
three months
ended
December 31, 2017
and
2016
, respectively, and interest incurred by Forestar of
$0.1 million
from the acquisition date through
December 31, 2017
.
|
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Other mortgage loans
|
|
$
|
8.0
|
|
|
$
|
8.3
|
|
Real estate owned
|
|
0.2
|
|
|
—
|
|
||
|
|
$
|
8.2
|
|
|
$
|
8.3
|
|
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Loss reserves related to:
|
|
|
|
|
||||
Other mortgage loans
|
|
$
|
1.1
|
|
|
$
|
1.0
|
|
Loan repurchase and settlement obligations – known and expected
|
|
6.8
|
|
|
7.7
|
|
||
|
|
$
|
7.9
|
|
|
$
|
8.7
|
|
|
|
Three Months Ended
December 31, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Numerator:
|
|
|
|
|
||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
189.3
|
|
|
$
|
206.9
|
|
Denominator:
|
|
|
|
|
||||
Denominator for basic earnings per share — weighted average common shares
|
|
375.8
|
|
|
373.3
|
|
||
Effect of dilutive securities:
|
|
|
|
|
||||
Employee stock awards
|
|
8.0
|
|
|
4.1
|
|
||
Denominator for diluted earnings per share — adjusted weighted average common shares
|
|
383.8
|
|
|
377.4
|
|
||
|
|
|
|
|
||||
Basic net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.50
|
|
|
$
|
0.55
|
|
Diluted net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.49
|
|
|
$
|
0.55
|
|
|
|
Three Months Ended
December 31, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Warranty liability, beginning of period
|
|
$
|
143.7
|
|
|
$
|
104.4
|
|
Warranties issued
|
|
16.4
|
|
|
13.2
|
|
||
Changes in liability for pre-existing warranties
|
|
6.8
|
|
|
2.4
|
|
||
Settlements made
|
|
(17.5
|
)
|
|
(12.2
|
)
|
||
Warranty liability, end of period
|
|
$
|
149.4
|
|
|
$
|
107.8
|
|
|
Three Months Ended
December 31, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Reserves for legal claims, beginning of period
|
$
|
420.6
|
|
|
$
|
423.5
|
|
Increase in reserves
|
10.6
|
|
|
26.3
|
|
||
Payments
|
(11.5
|
)
|
|
(14.2
|
)
|
||
Reserves for legal claims, end of period
|
$
|
419.7
|
|
|
$
|
435.6
|
|
|
|
December 31,
2017 |
|
September 30, 2017 (1)
|
||||
|
|
(In millions)
|
||||||
Earnest money and refundable deposits
|
|
$
|
345.6
|
|
|
$
|
312.2
|
|
Insurance receivables
|
|
73.1
|
|
|
74.4
|
|
||
Other receivables
|
|
79.9
|
|
|
60.0
|
|
||
Prepaid assets
|
|
32.2
|
|
|
30.8
|
|
||
Rental properties
|
|
38.5
|
|
|
52.0
|
|
||
Other
|
|
52.7
|
|
|
36.5
|
|
||
|
|
$
|
622.0
|
|
|
$
|
565.9
|
|
|
|
December 31,
2017 |
|
September 30, 2017 (1)
|
||||
|
|
(In millions)
|
||||||
Reserves for legal claims
|
|
$
|
419.7
|
|
|
$
|
420.6
|
|
Employee compensation and related liabilities
|
|
187.2
|
|
|
197.9
|
|
||
Warranty liability
|
|
149.4
|
|
|
143.7
|
|
||
Accrued interest
|
|
35.0
|
|
|
11.9
|
|
||
Federal and state income tax liabilities
|
|
85.7
|
|
|
20.3
|
|
||
Inventory related accruals
|
|
24.6
|
|
|
24.8
|
|
||
Customer deposits
|
|
53.6
|
|
|
44.9
|
|
||
Accrued property taxes
|
|
25.0
|
|
|
33.9
|
|
||
Other
|
|
87.9
|
|
|
87.0
|
|
||
|
|
$
|
1,068.1
|
|
|
$
|
985.0
|
|
(1)
|
To conform to the current year presentation, prior period amounts have been reclassified to reflect the Company’s consolidated balances, rather than the balances of its homebuilding segment that were previously presented.
|
|
|
December 31,
2017 |
||
|
|
(In millions)
|
||
Assets:
|
|
|
||
Cash and cash equivalents
|
|
$
|
13.1
|
|
Inventories
|
|
168.9
|
|
|
Other assets
|
|
21.7
|
|
|
Total assets
|
|
$
|
203.7
|
|
Liabilities and Equity:
|
|
|
||
Accounts payable and other liabilities
|
|
$
|
13.1
|
|
Debt
|
|
85.1
|
|
|
Equity
|
|
105.5
|
|
|
Total liabilities and equity
|
|
$
|
203.7
|
|
|
|
Three Months Ended
December 31, 2017 |
||
|
|
(In millions)
|
||
Revenues
|
|
$
|
8.7
|
|
Net earnings of unconsolidated entities (1)
|
|
$
|
17.4
|
|
D.R. Horton’s equity in earnings of unconsolidated entities (1)
|
|
$
|
2.3
|
|
(1)
|
Primarily relates to the gain on sale of a multi-family joint venture project in Nashville, Tennessee. D.R. Horton’s equity in earnings of unconsolidated entities of
$2.3 million
is after consideration of purchase accounting adjustments. Forestar’s equity in earnings of unconsolidated entities for the period from acquisition through December 31, 2017 was
$7.6 million
.
|
•
|
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;
|
▪
|
IRLCs; and
|
▪
|
loan sale commitments and 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.
|
▪
|
debt securities collateralized by residential real estate; and
|
▪
|
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.
|
▪
|
inventory held and used;
|
▪
|
inventory available for sale;
|
▪
|
certain mortgage loans held for sale;
|
▪
|
certain other mortgage loans; and
|
▪
|
real estate owned.
|
|
|
|
Fair Value at December 31, 2017
|
||||||||||||||
|
Balance Sheet Location
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Debt securities collateralized by residential real estate
|
Other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
|
$
|
8.8
|
|
Mortgage loans held for sale (a)
|
Mortgage loans held for sale
|
|
—
|
|
|
529.3
|
|
|
7.2
|
|
|
536.5
|
|
||||
Derivatives not designated as hedging instruments (b):
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
Other assets
|
|
—
|
|
|
11.1
|
|
|
—
|
|
|
11.1
|
|
||||
Forward sales of MBS
|
Other liabilities
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Best-efforts and mandatory commitments
|
Other liabilities
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
|
|
Fair Value at September 30, 2017
|
||||||||||||||
|
Balance Sheet Location
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Debt securities collateralized by residential real estate
|
Other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
|
$
|
8.8
|
|
Mortgage loans held for sale (a)
|
Mortgage loans held for sale
|
|
—
|
|
|
580.2
|
|
|
5.6
|
|
|
585.8
|
|
||||
Derivatives not designated as hedging instruments (b):
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
Other assets
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
||||
Forward sales of MBS
|
Other assets
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
||||
Best-efforts and mandatory commitments
|
Other assets
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
Level 3 Assets at Fair Value for the Three Months Ended December 31, 2017
|
||||||||||||||||||||||||||
|
Balance at
September 30, 2017 |
|
Net realized and unrealized gains (losses)
|
|
Purchases
|
|
Sales and Settlements
|
|
Principal Reductions
|
|
Net transfers to (out of) Level 3
|
|
Balance at
December 31, 2017 |
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Debt securities collateralized by residential real estate
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
Mortgage loans held for sale (a)
|
5.6
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
2.2
|
|
|
7.2
|
|
|||||||
|
Level 3 Assets at Fair Value for the Three Months Ended December 31, 2016
|
||||||||||||||||||||||||||
|
Balance at
September 30, 2016 |
|
Net realized and unrealized gains (losses)
|
|
Purchases
|
|
Sales and Settlements
|
|
Principal Reductions
|
|
Net transfers to (out of) Level 3
|
|
Balance at
December 31, 2016 |
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Mortgage loans held for sale (a)
|
6.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
7.7
|
|
(a)
|
Mortgage loans held for sale are reflected at fair value. 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 at
December 31, 2017
and
September 30, 2017
include
$7.2 million
and
$5.6 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
$2.2 million
and
$0.9 million
were transferred to Level 3 during the
three months
ended
December 31, 2017
and
2016
, 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.
|
(b)
|
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.
|
|
|
|
Fair Value at
December 31, 2017 |
|
Fair Value at
September 30, 2017 |
||||||||||||
|
Balance Sheet Location
|
|
Level 2
|
|
Level 3
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Inventory held and used (a) (b)
|
Inventories
|
|
$
|
—
|
|
|
$
|
5.6
|
|
|
$
|
—
|
|
|
$
|
33.4
|
|
Inventory available for sale (a) (c)
|
Inventories
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
||||
Mortgage loans held for sale (a) (d)
|
Mortgage loans held for sale
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
||||
Other mortgage loans (a) (e)
|
Other assets
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.4
|
|
(a)
|
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 in the respective period and were held at the end of the period.
|
(b)
|
In performing its impairment analysis of communities, discount rates ranging from
10%
to
18%
were used in the periods presented.
|
(c)
|
The fair value of inventory available for sale was determined based on recent offers received from outside third parties, comparable sales or actual contracts.
|
(d)
|
These mortgage loans have some degree of impairment affecting their marketability. 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).
|
(e)
|
The fair value of other mortgage loans was determined based on the value of the underlying collateral.
|
|
Carrying Value
|
|
Fair Value at December 31, 2017
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(In millions)
|
||||||||||||||||||
Cash and cash equivalents (a)
|
$
|
920.3
|
|
|
$
|
920.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
920.3
|
|
Restricted cash (a)
|
53.7
|
|
|
53.7
|
|
|
—
|
|
|
—
|
|
|
53.7
|
|
|||||
Notes payable (a) (b)
|
3,258.1
|
|
|
—
|
|
|
2,679.5
|
|
|
698.5
|
|
|
3,378.0
|
|
|
Carrying Value
|
|
Fair Value at September 30, 2017
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(In millions)
|
||||||||||||||||||
Cash and cash equivalents (a)
|
$
|
1,007.8
|
|
|
$
|
1,007.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,007.8
|
|
Restricted cash (a)
|
16.5
|
|
|
16.5
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
|||||
Notes payable (a) (b)
|
2,871.6
|
|
|
—
|
|
|
2,584.1
|
|
|
431.1
|
|
|
3,015.2
|
|
(a)
|
The fair values of cash and cash equivalents, restricted cash, other secured notes and borrowings on the revolving credit facility and the mortgage repurchase facility approximate carrying value due to their short-term nature, short maturity or floating interest rate terms, as applicable.
|
(b)
|
The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy.
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
438.3
|
|
|
$
|
79.4
|
|
|
$
|
402.6
|
|
|
$
|
—
|
|
|
$
|
920.3
|
|
Restricted cash
|
|
6.2
|
|
|
2.1
|
|
|
45.4
|
|
|
—
|
|
|
53.7
|
|
|||||
Investments in subsidiaries
|
|
5,485.7
|
|
|
—
|
|
|
—
|
|
|
(5,485.7
|
)
|
|
—
|
|
|||||
Inventories
|
|
3,762.6
|
|
|
5,899.7
|
|
|
377.9
|
|
|
—
|
|
|
10,040.2
|
|
|||||
Investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
86.1
|
|
|
—
|
|
|
86.1
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
538.2
|
|
|
—
|
|
|
538.2
|
|
|||||
Deferred income taxes
|
|
87.9
|
|
|
146.1
|
|
|
5.1
|
|
|
—
|
|
|
239.1
|
|
|||||
Property and equipment, net
|
|
112.1
|
|
|
61.8
|
|
|
189.6
|
|
|
(5.8
|
)
|
|
357.7
|
|
|||||
Other assets
|
|
251.4
|
|
|
292.4
|
|
|
78.2
|
|
|
—
|
|
|
622.0
|
|
|||||
Goodwill
|
|
—
|
|
|
80.0
|
|
|
20.0
|
|
|
—
|
|
|
100.0
|
|
|||||
Intercompany receivables
|
|
1,041.5
|
|
|
—
|
|
|
—
|
|
|
(1,041.5
|
)
|
|
—
|
|
|||||
Total Assets
|
|
$
|
11,185.7
|
|
|
$
|
6,561.5
|
|
|
$
|
1,743.1
|
|
|
$
|
(6,533.0
|
)
|
|
$
|
12,957.3
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other liabilities
|
|
$
|
558.4
|
|
|
$
|
937.8
|
|
|
$
|
149.6
|
|
|
$
|
(2.0
|
)
|
|
$
|
1,643.8
|
|
Intercompany payables
|
|
—
|
|
|
831.7
|
|
|
209.8
|
|
|
(1,041.5
|
)
|
|
—
|
|
|||||
Notes payable
|
|
2,741.5
|
|
|
8.1
|
|
|
508.5
|
|
|
—
|
|
|
3,258.1
|
|
|||||
Total Liabilities
|
|
3,299.9
|
|
|
1,777.6
|
|
|
867.9
|
|
|
(1,043.5
|
)
|
|
4,901.9
|
|
|||||
Stockholders’ equity
|
|
7,885.8
|
|
|
4,783.9
|
|
|
701.8
|
|
|
(5,489.5
|
)
|
|
7,882.0
|
|
|||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
173.4
|
|
|
—
|
|
|
173.4
|
|
|||||
Total Equity
|
|
7,885.8
|
|
|
4,783.9
|
|
|
875.2
|
|
|
(5,489.5
|
)
|
|
8,055.4
|
|
|||||
Total Liabilities & Equity
|
|
$
|
11,185.7
|
|
|
$
|
6,561.5
|
|
|
$
|
1,743.1
|
|
|
$
|
(6,533.0
|
)
|
|
$
|
12,957.3
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
780.9
|
|
|
$
|
154.5
|
|
|
$
|
72.4
|
|
|
$
|
—
|
|
|
$
|
1,007.8
|
|
Restricted cash
|
|
7.8
|
|
|
1.5
|
|
|
7.2
|
|
|
—
|
|
|
16.5
|
|
|||||
Investments in subsidiaries
|
|
4,812.6
|
|
|
—
|
|
|
—
|
|
|
(4,812.6
|
)
|
|
—
|
|
|||||
Inventories
|
|
3,540.4
|
|
|
5,579.9
|
|
|
116.8
|
|
|
—
|
|
|
9,237.1
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
587.3
|
|
|
—
|
|
|
587.3
|
|
|||||
Deferred income taxes
|
|
138.5
|
|
|
223.6
|
|
|
2.9
|
|
|
—
|
|
|
365.0
|
|
|||||
Property and equipment, net
|
|
104.8
|
|
|
59.7
|
|
|
166.3
|
|
|
(5.8
|
)
|
|
325.0
|
|
|||||
Other assets
|
|
245.5
|
|
|
259.7
|
|
|
60.7
|
|
|
—
|
|
|
565.9
|
|
|||||
Goodwill
|
|
—
|
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
80.0
|
|
|||||
Intercompany receivables
|
|
1,047.7
|
|
|
—
|
|
|
—
|
|
|
(1,047.7
|
)
|
|
—
|
|
|||||
Total Assets
|
|
$
|
10,678.2
|
|
|
$
|
6,358.9
|
|
|
$
|
1,013.6
|
|
|
$
|
(5,866.1
|
)
|
|
$
|
12,184.6
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other liabilities
|
|
$
|
483.9
|
|
|
$
|
956.9
|
|
|
$
|
126.6
|
|
|
$
|
(2.0
|
)
|
|
$
|
1,565.4
|
|
Intercompany payables
|
|
—
|
|
|
732.2
|
|
|
315.5
|
|
|
(1,047.7
|
)
|
|
—
|
|
|||||
Notes payable
|
|
2,443.4
|
|
|
8.2
|
|
|
420.0
|
|
|
—
|
|
|
2,871.6
|
|
|||||
Total Liabilities
|
|
2,927.3
|
|
|
1,697.3
|
|
|
862.1
|
|
|
(1,049.7
|
)
|
|
4,437.0
|
|
|||||
Stockholders’ equity
|
|
7,750.9
|
|
|
4,661.6
|
|
|
151.0
|
|
|
(4,816.4
|
)
|
|
7,747.1
|
|
|||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||
Total Equity
|
|
7,750.9
|
|
|
4,661.6
|
|
|
151.5
|
|
|
(4,816.4
|
)
|
|
7,747.6
|
|
|||||
Total Liabilities & Equity
|
|
$
|
10,678.2
|
|
|
$
|
6,358.9
|
|
|
$
|
1,013.6
|
|
|
$
|
(5,866.1
|
)
|
|
$
|
12,184.6
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
1,163.8
|
|
|
$
|
2,052.4
|
|
|
$
|
116.5
|
|
|
$
|
—
|
|
|
$
|
3,332.7
|
|
Cost of sales
|
|
915.4
|
|
|
1,640.0
|
|
|
24.7
|
|
|
—
|
|
|
2,580.1
|
|
|||||
Selling, general and administrative expense
|
|
152.2
|
|
|
151.5
|
|
|
80.5
|
|
|
—
|
|
|
384.2
|
|
|||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
(2.3
|
)
|
|||||
Other (income) expense
|
|
(0.4
|
)
|
|
—
|
|
|
(20.1
|
)
|
|
—
|
|
|
(20.5
|
)
|
|||||
Income before income taxes
|
|
96.6
|
|
|
260.9
|
|
|
33.7
|
|
|
—
|
|
|
391.2
|
|
|||||
Income tax expense
|
|
51.1
|
|
|
137.9
|
|
|
13.4
|
|
|
—
|
|
|
202.4
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
143.3
|
|
|
—
|
|
|
—
|
|
|
(143.3
|
)
|
|
—
|
|
|||||
Net income
|
|
188.8
|
|
|
123.0
|
|
|
20.3
|
|
|
(143.3
|
)
|
|
188.8
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
188.8
|
|
|
$
|
123.0
|
|
|
$
|
20.8
|
|
|
$
|
(143.3
|
)
|
|
$
|
189.3
|
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
918.1
|
|
|
$
|
1,896.1
|
|
|
$
|
90.0
|
|
|
$
|
—
|
|
|
$
|
2,904.2
|
|
Cost of sales
|
|
735.4
|
|
|
1,524.7
|
|
|
7.8
|
|
|
—
|
|
|
2,267.9
|
|
|||||
Selling, general and administrative expense
|
|
124.0
|
|
|
143.3
|
|
|
58.6
|
|
|
—
|
|
|
325.9
|
|
|||||
Other (income) expense
|
|
(4.1
|
)
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
(7.7
|
)
|
|||||
Income before income taxes
|
|
62.8
|
|
|
228.1
|
|
|
27.2
|
|
|
—
|
|
|
318.1
|
|
|||||
Income tax expense
|
|
21.8
|
|
|
79.2
|
|
|
10.2
|
|
|
—
|
|
|
111.2
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
165.9
|
|
|
—
|
|
|
—
|
|
|
(165.9
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
206.9
|
|
|
$
|
148.9
|
|
|
$
|
17.0
|
|
|
$
|
(165.9
|
)
|
|
$
|
206.9
|
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
|
$
|
(3.0
|
)
|
|
$
|
(61.6
|
)
|
|
$
|
21.6
|
|
|
$
|
(32.0
|
)
|
|
$
|
(75.0
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(15.1
|
)
|
|
(7.8
|
)
|
|
(21.5
|
)
|
|
—
|
|
|
(44.4
|
)
|
|||||
Proceeds from sale of rental properties
|
|
—
|
|
|
—
|
|
|
24.8
|
|
|
—
|
|
|
24.8
|
|
|||||
Decrease (increase) in restricted cash
|
|
1.6
|
|
|
(0.6
|
)
|
|
(38.2
|
)
|
|
—
|
|
|
(37.2
|
)
|
|||||
Investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Return of investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
15.0
|
|
|
—
|
|
|
15.0
|
|
|||||
Net principal decrease of other mortgage loans and real estate owned
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Intercompany advances
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|||||
Payments related to acquisition of a business, net of cash acquired
|
|
(558.3
|
)
|
|
—
|
|
|
401.9
|
|
|
—
|
|
|
(156.4
|
)
|
|||||
Net cash (used in) provided by investing activities
|
|
(569.1
|
)
|
|
(8.4
|
)
|
|
382.0
|
|
|
(2.7
|
)
|
|
(198.2
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from notes payable
|
|
1,112.8
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1,113.9
|
|
|||||
Repayment of notes payable
|
|
(815.2
|
)
|
|
(0.6
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
(825.8
|
)
|
|||||
Payments on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
(32.6
|
)
|
|
—
|
|
|
(32.6
|
)
|
|||||
Intercompany advances
|
|
—
|
|
|
(4.5
|
)
|
|
1.8
|
|
|
2.7
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
14.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3
|
)
|
|||||
Cash dividends paid
|
|
(47.0
|
)
|
|
—
|
|
|
(32.0
|
)
|
|
32.0
|
|
|
(47.0
|
)
|
|||||
Repurchases of common stock
|
|
(25.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.4
|
)
|
|||||
Distributions to noncontrolling interests, net
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
(1.7
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
229.5
|
|
|
(5.1
|
)
|
|
(73.4
|
)
|
|
34.7
|
|
|
185.7
|
|
|||||
(Decrease) increase in cash and cash equivalents
|
|
(342.6
|
)
|
|
(75.1
|
)
|
|
330.2
|
|
|
—
|
|
|
(87.5
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
780.9
|
|
|
154.5
|
|
|
72.4
|
|
|
—
|
|
|
1,007.8
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
438.3
|
|
|
$
|
79.4
|
|
|
$
|
402.6
|
|
|
$
|
—
|
|
|
$
|
920.3
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
|
$
|
(102.0
|
)
|
|
$
|
40.5
|
|
|
$
|
83.3
|
|
|
$
|
(50.0
|
)
|
|
$
|
(28.2
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(10.5
|
)
|
|
(5.4
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
(22.2
|
)
|
|||||
Decrease (increase) in restricted cash
|
|
0.4
|
|
|
0.3
|
|
|
(6.7
|
)
|
|
—
|
|
|
(6.0
|
)
|
|||||
Net principal decrease of other mortgage loans and real estate owned
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||||
Intercompany advances
|
|
91.1
|
|
|
—
|
|
|
—
|
|
|
(91.1
|
)
|
|
—
|
|
|||||
Payments related to acquisition of a business
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
76.9
|
|
|
(5.1
|
)
|
|
(12.0
|
)
|
|
(91.1
|
)
|
|
(31.3
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of notes payable
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||||
Payments on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
(54.0
|
)
|
|
—
|
|
|
(54.0
|
)
|
|||||
Intercompany advances
|
|
—
|
|
|
(127.9
|
)
|
|
36.8
|
|
|
91.1
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|||||
Excess income tax benefit from employee stock awards
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(5.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.1
|
)
|
|||||
Cash dividends paid
|
|
(37.3
|
)
|
|
—
|
|
|
(50.0
|
)
|
|
50.0
|
|
|
(37.3
|
)
|
|||||
Net cash used in financing activities
|
|
(39.1
|
)
|
|
(128.2
|
)
|
|
(67.2
|
)
|
|
141.1
|
|
|
(93.4
|
)
|
|||||
(Decrease) increase in cash and cash equivalents
|
|
(64.2
|
)
|
|
(92.8
|
)
|
|
4.1
|
|
|
—
|
|
|
(152.9
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
1,076.4
|
|
|
154.0
|
|
|
72.8
|
|
|
—
|
|
|
1,303.2
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
1,012.2
|
|
|
$
|
61.2
|
|
|
$
|
76.9
|
|
|
$
|
—
|
|
|
$
|
1,150.3
|
|
•
|
Maintaining a strong cash balance and overall liquidity position and controlling our level of debt.
|
•
|
Allocating and actively managing our inventory investments across our operating markets to diversify our geographic risk.
|
•
|
Offering new home communities that appeal to a broad range of entry-level, move-up, active adult and luxury homebuyers based on consumer demand in each market.
|
•
|
Modifying product offerings, sales pace, home prices and sales incentives as necessary in each of our markets to meet consumer demand.
|
•
|
Managing our inventory of homes under construction relative to demand in each of our markets, including starting construction on unsold homes to capture new home demand and actively controlling the number of unsold, completed homes in inventory.
|
•
|
Investing in land and land development in desirable markets, while controlling the level of land and lots we own in each of our markets relative to the local new home demand.
|
•
|
Increasing the amount of land and finished lots controlled through option purchase contracts by expanding relationships with land developers across the country and integrating and growing our majority-owned Forestar land development operations.
|
•
|
Pursuing acquisitions of companies to enhance and improve the returns of our homebuilding and other operations.
|
•
|
Controlling the cost of goods purchased from both vendors and subcontractors.
|
•
|
Improving the efficiency of our land development, construction, sales and other key operational activities.
|
•
|
Controlling our selling, general and administrative (SG&A) expense infrastructure to match production levels.
|
•
|
Homebuilding revenues
increased
14%
to
$3.2 billion
.
|
•
|
Homes closed
increased
15%
to
10,788
homes, and the average closing price of those homes
decreased
1%
to
$295,200
.
|
•
|
Net sales orders
increased
16%
to
10,753
homes, and the value of net sales orders
increased
17%
to
$3.2 billion
.
|
•
|
Sales order backlog
increased
9%
to
12,294
homes, and the value of sales order backlog
increased
11%
to
$3.8 billion
.
|
•
|
Home sales gross margin
increased
100
basis points to
20.8%
.
|
•
|
Homebuilding SG&A expenses as a percentage of homebuilding revenues were unchanged at
9.5%
.
|
•
|
Homebuilding pre-tax income
increased
27%
to
$373.8 million
compared to
$293.9 million
.
|
•
|
Homebuilding pre-tax income as a percentage of homebuilding revenues improved to
11.6%
from
10.4%
.
|
•
|
Homebuilding cash and cash equivalents totaled
$558.0 million
compared to
$973.0 million
and
$1.1 billion
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Homebuilding inventories totaled
$9.7 billion
compared to
$9.2 billion
and
$8.7 billion
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Homes in inventory totaled
27,800
compared to
26,200
and
24,500
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Owned lots totaled
125,900
compared to
125,000
and
118,300
at
September 30, 2017
and
December 31, 2016
, respectively. Lots controlled through option purchase contracts totaled
133,500
compared to
124,000
and
94,300
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Homebuilding debt was
$2.7 billion
compared to
$2.5 billion
and
$2.8 billion
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Homebuilding debt to total capital was
25.9%
compared to
24.0%
at
September 30, 2017
and
28.6%
at
December 31, 2016
.
|
•
|
Forestar’s revenues were
$30.8 million
.
|
•
|
Forestar’s pre-tax income was
$4.0 million
.
|
•
|
Owned lots totaled
10,000
, including
3,100
lots controlled by D.R. Horton through option contracts or right of first refusal.
|
•
|
Financial services revenues
increased
4%
to
$81.0 million
.
|
•
|
Financial services pre-tax income
decreased
16%
to
$22.2 million
compared to
$26.5 million
.
|
•
|
Financial services pre-tax income as a percentage of financial services revenues was
27.4%
compared to
33.9%
.
|
•
|
Consolidated pre-tax income
increased
23%
to
$391.2 million
compared to
$318.1 million
.
|
•
|
Consolidated pre-tax income as a percentage of consolidated revenues improved to
11.7%
from
11.0%
.
|
•
|
Income tax expense was
$202.4 million
, which included a charge of
$108.7 million
to reduce net deferred tax assets as a result of the Tax Cuts and Jobs Act enacted into law during the quarter.
|
•
|
Net income attributable to D.R. Horton
decreased
9%
to
$189.3 million
compared to
$206.9 million
.
|
•
|
Diluted earnings per common share attributable to D.R. Horton
decreased
11%
to
$0.49
compared to
$0.55
.
|
•
|
Stockholders’ equity was
$7.9 billion
compared to
$7.7 billion
and
$7.0 billion
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Book value per common share
increased
to $
20.98
compared to $
20.66
and $
18.70
at
September 30, 2017
and
December 31, 2016
, respectively.
|
•
|
Net cash used in operations was
$75.0 million
compared to
$28.2 million
.
|
State
|
|
Reporting Region/Market
|
|
State
|
|
Reporting Region/Market
|
|
|
|
|
|
|
|
|
|
East Region
|
|
|
|
South Central Region
|
Delaware
|
|
Delaware
|
|
Louisiana
|
|
Baton Rouge
|
Georgia
|
|
Savannah
|
|
|
|
Lafayette
|
Maryland
|
|
Baltimore
|
|
Oklahoma
|
|
Oklahoma City
|
|
|
Suburban Washington, D.C.
|
|
Texas
|
|
Austin
|
New Jersey
|
|
North New Jersey
|
|
|
|
Dallas
|
|
|
South New Jersey
|
|
|
|
El Paso
|
North Carolina
|
|
Charlotte
|
|
|
|
Fort Worth
|
|
|
Fayetteville
|
|
|
|
Houston
|
|
|
Greensboro/Winston-Salem
|
|
|
|
Killeen/Temple/Waco
|
|
|
Raleigh/Durham
|
|
|
|
Midland/Odessa
|
|
|
Wilmington
|
|
|
|
New Braunfels/San Marcos
|
Pennsylvania
|
|
Philadelphia
|
|
|
|
San Antonio
|
South Carolina
|
|
Charleston
|
|
|
|
|
|
|
Columbia
|
|
|
|
Southwest Region
|
|
|
Greenville/Spartanburg
|
|
Arizona
|
|
Phoenix
|
|
|
Hilton Head
|
|
|
|
Tucson
|
|
|
Myrtle Beach
|
|
New Mexico
|
|
Albuquerque
|
Virginia
|
|
Northern Virginia
|
|
|
|
|
|
|
|
|
|
|
West Region
|
|
|
Midwest Region
|
|
California
|
|
Bakersfield
|
Colorado
|
|
Denver
|
|
|
|
Bay Area
|
|
|
Fort Collins
|
|
|
|
Fresno
|
Illinois
|
|
Chicago
|
|
|
|
Los Angeles County
|
Minnesota
|
|
Minneapolis/St. Paul
|
|
|
|
Orange County
|
|
|
|
|
|
|
Riverside County
|
|
|
Southeast Region
|
|
|
|
Sacramento
|
Alabama
|
|
Birmingham
|
|
|
|
San Bernardino County
|
|
|
Huntsville
|
|
|
|
San Diego County
|
|
|
Mobile
|
|
|
|
Ventura County
|
|
|
Montgomery
|
|
Hawaii
|
|
Hawaii
|
|
|
Tuscaloosa
|
|
|
|
Kauai
|
Florida
|
|
Fort Myers/Naples
|
|
|
|
Maui
|
|
|
Jacksonville
|
|
|
|
Oahu
|
|
|
Lakeland
|
|
Nevada
|
|
Las Vegas
|
|
|
Melbourne/Vero Beach
|
|
|
|
Reno
|
|
|
Miami/Fort Lauderdale
|
|
Oregon
|
|
Portland
|
|
|
Ocala
|
|
Utah
|
|
Salt Lake City
|
|
|
Orlando
|
|
Washington
|
|
Seattle/Tacoma/Everett
|
|
|
Pensacola/Panama City
|
|
|
|
Vancouver
|
|
|
Port St. Lucie
|
|
|
|
|
|
|
Tampa/Sarasota
|
|
|
|
|
|
|
Volusia County
|
|
|
|
|
|
|
West Palm Beach
|
|
|
|
|
Georgia
|
|
Atlanta
|
|
|
|
|
|
|
Augusta
|
|
|
|
|
Mississippi
|
|
Gulf Coast
|
|
|
|
|
Tennessee
|
|
Knoxville
|
|
|
|
|
|
|
Nashville
|
|
|
|
|
|
|
Net Sales Orders
(1)
|
|||||||||||||||||||||||||||
|
|
Three Months Ended December 31,
|
|||||||||||||||||||||||||||
|
|
Net Homes Sold
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
%
Change |
|
2017
|
|
2016
|
|
%
Change |
|
2017
|
|
2016
|
|
%
Change |
|||||||||||
East
|
|
1,430
|
|
1,146
|
|
25
|
%
|
|
$
|
398.5
|
|
|
$
|
331.0
|
|
|
20
|
%
|
|
$
|
278,700
|
|
|
$
|
288,800
|
|
|
(3
|
)%
|
Midwest
|
|
377
|
|
363
|
|
4
|
%
|
|
144.9
|
|
|
143.2
|
|
|
1
|
%
|
|
384,400
|
|
|
394,500
|
|
|
(3
|
)%
|
||||
Southeast
|
|
3,632
|
|
3,148
|
|
15
|
%
|
|
976.3
|
|
|
825.1
|
|
|
18
|
%
|
|
268,800
|
|
|
262,100
|
|
|
3
|
%
|
||||
South Central
|
|
3,026
|
|
2,838
|
|
7
|
%
|
|
760.8
|
|
|
711.1
|
|
|
7
|
%
|
|
251,400
|
|
|
250,600
|
|
|
—
|
%
|
||||
Southwest
|
|
701
|
|
458
|
|
53
|
%
|
|
165.1
|
|
|
106.7
|
|
|
55
|
%
|
|
235,500
|
|
|
233,000
|
|
|
1
|
%
|
||||
West
|
|
1,587
|
|
1,288
|
|
23
|
%
|
|
777.0
|
|
|
646.8
|
|
|
20
|
%
|
|
489,600
|
|
|
502,200
|
|
|
(3
|
)%
|
||||
|
|
10,753
|
|
9,241
|
|
16
|
%
|
|
$
|
3,222.6
|
|
|
$
|
2,763.9
|
|
|
17
|
%
|
|
$
|
299,700
|
|
|
$
|
299,100
|
|
|
—
|
%
|
|
|
Sales Order Cancellations
|
||||||||||||||||
|
|
Three Months Ended December 31,
|
||||||||||||||||
|
|
Cancelled Sales Orders
|
|
Value (In millions)
|
|
Cancellation Rate
(2)
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||
East
|
|
390
|
|
354
|
|
$
|
111.2
|
|
|
$
|
96.6
|
|
|
21
|
%
|
|
24
|
%
|
Midwest
|
|
52
|
|
56
|
|
20.8
|
|
|
21.1
|
|
|
12
|
%
|
|
13
|
%
|
||
Southeast
|
|
1,121
|
|
950
|
|
294.6
|
|
|
240.6
|
|
|
24
|
%
|
|
23
|
%
|
||
South Central
|
|
933
|
|
821
|
|
231.2
|
|
|
208.0
|
|
|
24
|
%
|
|
22
|
%
|
||
Southwest
|
|
208
|
|
162
|
|
47.7
|
|
|
37.9
|
|
|
23
|
%
|
|
26
|
%
|
||
West
|
|
278
|
|
245
|
|
135.9
|
|
|
119.4
|
|
|
15
|
%
|
|
16
|
%
|
||
|
|
2,982
|
|
2,588
|
|
$
|
841.4
|
|
|
$
|
723.6
|
|
|
22
|
%
|
|
22
|
%
|
(1)
|
Net sales orders represent the number and dollar value of new sales contracts executed with customers (gross sales orders), net of cancelled sales orders.
|
(2)
|
Cancellation rate represents the number of cancelled sales orders divided by gross sales orders.
|
|
|
Sales Order Backlog
|
|||||||||||||||||||||||||||
|
|
As of December 31,
|
|||||||||||||||||||||||||||
|
|
Homes in Backlog
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|||||||||||
East
|
|
1,586
|
|
1,394
|
|
14
|
%
|
|
$
|
458.3
|
|
|
$
|
408.2
|
|
|
12
|
%
|
|
$
|
289,000
|
|
|
$
|
292,800
|
|
|
(1
|
)%
|
Midwest
|
|
388
|
|
434
|
|
(11
|
)%
|
|
156.0
|
|
|
177.6
|
|
|
(12
|
)%
|
|
402,100
|
|
|
409,200
|
|
|
(2
|
)%
|
||||
Southeast
|
|
3,945
|
|
3,864
|
|
2
|
%
|
|
1,092.6
|
|
|
1,064.3
|
|
|
3
|
%
|
|
277,000
|
|
|
275,400
|
|
|
1
|
%
|
||||
South Central
|
|
3,804
|
|
3,775
|
|
1
|
%
|
|
970.6
|
|
|
990.6
|
|
|
(2
|
)%
|
|
255,200
|
|
|
262,400
|
|
|
(3
|
)%
|
||||
Southwest
|
|
852
|
|
658
|
|
29
|
%
|
|
201.9
|
|
|
152.7
|
|
|
32
|
%
|
|
237,000
|
|
|
232,100
|
|
|
2
|
%
|
||||
West
|
|
1,719
|
|
1,187
|
|
45
|
%
|
|
884.7
|
|
|
610.8
|
|
|
45
|
%
|
|
514,700
|
|
|
514,600
|
|
|
—
|
%
|
||||
|
|
12,294
|
|
11,312
|
|
9
|
%
|
|
$
|
3,764.1
|
|
|
$
|
3,404.2
|
|
|
11
|
%
|
|
$
|
306,200
|
|
|
$
|
300,900
|
|
|
2
|
%
|
|
|
Homes Closed and Home Sales Revenue
|
|||||||||||||||||||||||||||
|
|
Three Months Ended December 31,
|
|||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|||||||||||
East
|
|
1,388
|
|
1,053
|
|
32
|
%
|
|
$
|
393.0
|
|
|
$
|
305.8
|
|
|
29
|
%
|
|
$
|
283,100
|
|
|
$
|
290,400
|
|
|
(3
|
)%
|
Midwest
|
|
408
|
|
399
|
|
2
|
%
|
|
161.4
|
|
|
149.6
|
|
|
8
|
%
|
|
395,600
|
|
|
374,900
|
|
|
6
|
%
|
||||
Southeast
|
|
3,744
|
|
3,337
|
|
12
|
%
|
|
988.6
|
|
|
882.5
|
|
|
12
|
%
|
|
264,000
|
|
|
264,500
|
|
|
—
|
%
|
||||
South Central
|
|
3,178
|
|
2,903
|
|
9
|
%
|
|
808.4
|
|
|
738.6
|
|
|
9
|
%
|
|
254,400
|
|
|
254,400
|
|
|
—
|
%
|
||||
Southwest
|
|
692
|
|
455
|
|
52
|
%
|
|
155.9
|
|
|
104.7
|
|
|
49
|
%
|
|
225,300
|
|
|
230,100
|
|
|
(2
|
)%
|
||||
West
|
|
1,378
|
|
1,257
|
|
10
|
%
|
|
677.2
|
|
|
616.5
|
|
|
10
|
%
|
|
491,400
|
|
|
490,500
|
|
|
—
|
%
|
||||
|
|
10,788
|
|
9,404
|
|
15
|
%
|
|
$
|
3,184.5
|
|
|
$
|
2,797.7
|
|
|
14
|
%
|
|
$
|
295,200
|
|
|
$
|
297,500
|
|
|
(1
|
)%
|
|
|
Three Months Ended December 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
East
|
|
$
|
393.0
|
|
|
$
|
45.0
|
|
|
11.5
|
%
|
|
$
|
305.9
|
|
|
$
|
26.3
|
|
|
8.6
|
%
|
Midwest
|
|
161.4
|
|
|
13.3
|
|
|
8.2
|
%
|
|
151.1
|
|
|
10.2
|
|
|
6.8
|
%
|
||||
Southeast
|
|
988.7
|
|
|
122.5
|
|
|
12.4
|
%
|
|
883.4
|
|
|
99.6
|
|
|
11.3
|
%
|
||||
South Central
|
|
808.8
|
|
|
101.5
|
|
|
12.5
|
%
|
|
756.9
|
|
|
96.5
|
|
|
12.7
|
%
|
||||
Southwest
|
|
156.4
|
|
|
14.7
|
|
|
9.4
|
%
|
|
108.6
|
|
|
4.0
|
|
|
3.7
|
%
|
||||
West
|
|
712.6
|
|
|
76.8
|
|
|
10.8
|
%
|
|
620.2
|
|
|
57.3
|
|
|
9.2
|
%
|
||||
|
|
$
|
3,220.9
|
|
|
$
|
373.8
|
|
|
11.6
|
%
|
|
$
|
2,826.1
|
|
|
$
|
293.9
|
|
|
10.4
|
%
|
(1)
|
Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating our corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.
|
|
As of December 31, 2017
|
||||||||||||||||||
|
Construction in Progress and
Finished Homes
|
|
Residential Land/Lots
Developed and Under
Development
|
|
Land Held
for Development
|
|
Land Held
for Sale
|
|
Total Inventory
|
||||||||||
|
(In millions)
|
||||||||||||||||||
East
|
$
|
616.1
|
|
|
$
|
517.9
|
|
|
$
|
21.0
|
|
|
$
|
0.6
|
|
|
$
|
1,155.6
|
|
Midwest
|
374.9
|
|
|
166.6
|
|
|
1.8
|
|
|
—
|
|
|
543.3
|
|
|||||
Southeast
|
1,321.0
|
|
|
1,107.4
|
|
|
36.1
|
|
|
5.7
|
|
|
2,470.2
|
|
|||||
South Central
|
1,078.3
|
|
|
1,183.6
|
|
|
14.1
|
|
|
5.9
|
|
|
2,281.9
|
|
|||||
Southwest
|
208.0
|
|
|
303.8
|
|
|
1.7
|
|
|
3.2
|
|
|
516.7
|
|
|||||
West
|
1,194.3
|
|
|
1,257.5
|
|
|
23.5
|
|
|
2.4
|
|
|
2,477.7
|
|
|||||
Corporate and unallocated (1)
|
115.2
|
|
|
112.4
|
|
|
2.3
|
|
|
0.4
|
|
|
230.3
|
|
|||||
|
$
|
4,907.8
|
|
|
$
|
4,649.2
|
|
|
$
|
100.5
|
|
|
$
|
18.2
|
|
|
$
|
9,675.7
|
|
|
As of September 30, 2017
|
||||||||||||||||||
|
Construction in Progress and
Finished Homes
|
|
Residential Land/Lots
Developed and Under
Development
|
|
Land Held
for Development
|
|
Land Held
for Sale
|
|
Total Inventory
|
||||||||||
|
(In millions)
|
||||||||||||||||||
East
|
$
|
569.3
|
|
|
$
|
478.1
|
|
|
$
|
21.0
|
|
|
$
|
0.5
|
|
|
$
|
1,068.9
|
|
Midwest
|
335.8
|
|
|
155.0
|
|
|
1.8
|
|
|
—
|
|
|
492.6
|
|
|||||
Southeast
|
1,265.6
|
|
|
1,085.0
|
|
|
35.9
|
|
|
5.8
|
|
|
2,392.3
|
|
|||||
South Central
|
1,050.8
|
|
|
1,132.6
|
|
|
14.1
|
|
|
1.9
|
|
|
2,199.4
|
|
|||||
Southwest
|
203.9
|
|
|
299.5
|
|
|
2.7
|
|
|
—
|
|
|
506.1
|
|
|||||
West
|
1,070.0
|
|
|
1,257.3
|
|
|
23.2
|
|
|
2.0
|
|
|
2,352.5
|
|
|||||
Corporate and unallocated (1)
|
110.6
|
|
|
112.2
|
|
|
2.3
|
|
|
0.2
|
|
|
225.3
|
|
|||||
|
$
|
4,606.0
|
|
|
$
|
4,519.7
|
|
|
$
|
101.0
|
|
|
$
|
10.4
|
|
|
$
|
9,237.1
|
|
(1)
|
Corporate and unallocated inventory consists primarily of capitalized interest and property taxes.
|
|
As of December 31, 2017
|
|||||||||
|
Land/Lots
Owned (1)
|
|
Lots Controlled
Under
Land and Lot
Option Purchase
Contracts (2)(3)
|
|
Total
Land/Lots
Owned and
Controlled
|
|
Homes
in
Inventory (4)
|
|||
East
|
13,500
|
|
|
18,600
|
|
|
32,100
|
|
|
3,600
|
Midwest
|
2,500
|
|
|
5,600
|
|
|
8,100
|
|
|
1,700
|
Southeast
|
36,000
|
|
|
53,600
|
|
|
89,600
|
|
|
8,800
|
South Central
|
44,200
|
|
|
38,200
|
|
|
82,400
|
|
|
7,700
|
Southwest
|
8,000
|
|
|
4,100
|
|
|
12,100
|
|
|
1,700
|
West
|
21,700
|
|
|
13,400
|
|
|
35,100
|
|
|
4,300
|
|
125,900
|
|
|
133,500
|
|
|
259,400
|
|
|
27,800
|
|
49
|
%
|
|
51
|
%
|
|
100
|
%
|
|
|
|
As of September 30, 2017
|
|||||||||
|
Land/Lots
Owned (1)
|
|
Lots Controlled
Under
Land and Lot
Option Purchase
Contracts (2)
|
|
Total
Land/Lots
Owned and
Controlled
|
|
Homes
in
Inventory (4)
|
|||
East
|
13,200
|
|
|
17,800
|
|
|
31,000
|
|
|
3,500
|
Midwest
|
2,600
|
|
|
4,400
|
|
|
7,000
|
|
|
1,500
|
Southeast
|
35,800
|
|
|
47,500
|
|
|
83,300
|
|
|
8,500
|
South Central
|
42,800
|
|
|
38,700
|
|
|
81,500
|
|
|
7,300
|
Southwest
|
8,700
|
|
|
2,400
|
|
|
11,100
|
|
|
1,700
|
West
|
21,900
|
|
|
13,200
|
|
|
35,100
|
|
|
3,700
|
|
125,000
|
|
|
124,000
|
|
|
249,000
|
|
|
26,200
|
|
50
|
%
|
|
50
|
%
|
|
100
|
%
|
|
|
(1)
|
Land/lots owned include approximately
36,000
and
33,200
owned lots that are fully developed and ready for home construction at
December 31, 2017
and
September 30, 2017
, respectively. Land/lots owned also include land held for development representing
4,300
and
4,800
lots at
December 31, 2017
and
September 30, 2017
, respectively.
|
(2)
|
The total remaining purchase price of lots controlled through land and lot option purchase contracts at
December 31, 2017
and
September 30, 2017
was
$5.0 billion
and
$4.6 billion
, respectively, secured by earnest money deposits of
$269.7 million
and
$227.6 million
, respectively. Our lots controlled under land and lot option purchase contracts exclude approximately
200
and
300
lots at
December 31, 2017
and
September 30, 2017
, respectively, representing lots controlled under lot option contracts for which we do not expect to exercise our option to purchase the land or lots, but the underlying contracts have yet to be terminated. We have reserved the deposits related to these contracts.
|
(3)
|
Lots controlled at
December 31, 2017
include approximately
3,100
lots owned or controlled by Forestar,
1,400
of which our homebuilding divisions have under contract to purchase and
1,700
of which our homebuilding divisions have the right of first refusal to purchase. Of these, approximately
1,900
lots were in our Southeast region,
1,000
lots were in our South Central region and
200
lots were in our West region. The remaining purchase price of the
1,400
lots under contract with Forestar was
$115.5 million
.
|
(4)
|
Homes in inventory include approximately
1,600
model homes at both
December 31, 2017
and
September 30, 2017
. Approximately
15,500
and
13,800
of our homes in inventory were unsold at
December 31, 2017
and
September 30, 2017
, respectively. At
December 31, 2017
, approximately
4,300
of our unsold homes were completed, of which approximately
600
homes had been completed for more than six months. At
September 30, 2017
, approximately
4,100
of our unsold homes were completed, of which approximately
500
homes had been completed for more than six months.
|
Residential land and lot sales
|
$
|
23.7
|
|
Commercial lot sales
|
7.1
|
|
|
Total revenues
|
$
|
30.8
|
|
Cost of sales
|
19.3
|
|
|
Selling, general and administrative expenses
|
13.6
|
|
|
Equity in earnings of unconsolidated entities
|
(7.6
|
)
|
|
Interest expense
|
2.1
|
|
|
Other (income) expense
|
(0.6
|
)
|
|
Income before income taxes
|
$
|
4.0
|
|
|
|
Three Months Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
% Change
|
|||
Number of first-lien loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
6,014
|
|
|
5,328
|
|
|
13
|
%
|
Number of homes closed by D.R. Horton
|
|
10,788
|
|
|
9,404
|
|
|
15
|
%
|
Percentage of D.R. Horton homes financed by DHI Mortgage
|
|
56
|
%
|
|
57
|
%
|
|
|
|
Number of total loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
6,046
|
|
|
5,358
|
|
|
13
|
%
|
Total number of loans originated or brokered by DHI Mortgage
|
|
6,288
|
|
|
5,778
|
|
|
9
|
%
|
Captive business percentage
|
|
96
|
%
|
|
93
|
%
|
|
|
|
Loans sold by DHI Mortgage to third parties
|
|
6,342
|
|
|
6,193
|
|
|
2
|
%
|
|
|
Three Months Ended December 31,
|
|||||||||
|
|
2017
|
|
2016
|
|
% Change
|
|||||
|
|
(In millions)
|
|||||||||
Loan origination fees
|
|
$
|
3.5
|
|
|
$
|
3.8
|
|
|
(8
|
)%
|
Sale of servicing rights and gains from sale of mortgage loans
|
|
57.0
|
|
|
57.4
|
|
|
(1
|
)%
|
||
Other revenues
|
|
4.0
|
|
|
3.5
|
|
|
14
|
%
|
||
Total mortgage operations revenues
|
|
64.5
|
|
|
64.7
|
|
|
—
|
%
|
||
Title policy premiums
|
|
16.5
|
|
|
13.4
|
|
|
23
|
%
|
||
Total revenues
|
|
81.0
|
|
|
78.1
|
|
|
4
|
%
|
||
General and administrative expense (1)
|
|
61.7
|
|
|
54.8
|
|
|
13
|
%
|
||
Interest and other (income) expense (1)
|
|
(2.9
|
)
|
|
(3.2
|
)
|
|
(9
|
)%
|
||
Financial services pre-tax income
|
|
$
|
22.2
|
|
|
$
|
26.5
|
|
|
(16
|
)%
|
|
|
Percentages of
Financial Services Revenues
|
||||
|
|
Three Months Ended
December 31, |
||||
|
|
2017
|
|
2016
|
||
General and administrative expense (1)
|
|
76.2
|
%
|
|
70.2
|
%
|
Interest and other (income) expense (1)
|
|
(3.6
|
)%
|
|
(4.1
|
)%
|
Financial services pre-tax income
|
|
27.4
|
%
|
|
33.9
|
%
|
(1)
|
General and administrative expense of
$2.7 million
and interest and other income of
$0.4 million
related to our other business activities were excluded from prior year amounts to conform to the current year presentation.
|
•
|
the cyclical nature of the homebuilding industry and changes in economic, real estate and other conditions;
|
•
|
constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital;
|
•
|
reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates;
|
•
|
the risks associated with our land and lot inventory;
|
•
|
our ability to effect our growth strategies, acquisitions or investments successfully;
|
•
|
home warranty and construction defect claims;
|
•
|
the effects of a health and safety incident;
|
•
|
the effects of negative publicity;
|
•
|
supply shortages and other risks of acquiring land, building materials and skilled labor;
|
•
|
the impact of an inflationary, deflationary or higher interest rate environment;
|
•
|
reductions in the availability of performance bonds;
|
•
|
increases in the costs of owning a home;
|
•
|
the effects of governmental regulations and environmental matters on our homebuilding operations;
|
•
|
the effects of governmental regulations on our financial services operations;
|
•
|
our significant debt and our ability to comply with related debt covenants, restrictions and limitations;
|
•
|
competitive conditions within the homebuilding and financial services industries;
|
•
|
the effects of the loss of key personnel; and
|
•
|
information technology failures and data security breaches.
|
|
|
Nine Months
Ending September 30, 2018 |
|
Fiscal Year Ending September 30,
|
|
Fair Value at December 31, 2017
|
||||||||||||||||||||||||||||||
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
|
||||||||||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed rate
|
|
$
|
9.5
|
|
|
$
|
500.8
|
|
|
$
|
619.3
|
|
|
$
|
400.0
|
|
|
$
|
350.0
|
|
|
$
|
700.0
|
|
|
$
|
—
|
|
|
$
|
2,579.6
|
|
|
$
|
2,690.2
|
|
Average interest rate
|
|
4.4
|
%
|
|
3.9
|
%
|
|
4.0
|
%
|
|
2.8
|
%
|
|
4.5
|
%
|
|
5.5
|
%
|
|
—
|
%
|
|
4.3
|
%
|
|
|
||||||||||
Variable rate
|
|
$
|
387.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
687.8
|
|
|
$
|
687.8
|
|
Average interest rate
|
|
3.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.6
|
%
|
|
|
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs (1)
(In millions)
|
||||||
October 1, 2017 - October 31, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
November 1, 2017 - November 30, 2017
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
December 1, 2017 - December 31, 2017
|
500,000
|
|
|
50.71
|
|
|
500,000
|
|
|
174.6
|
|
||
Total
|
500,000
|
|
|
$
|
50.71
|
|
|
500,000
|
|
|
$
|
174.6
|
|
(a)
|
Exhibits.
|
||
|
2.1
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
12.1
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101
|
|
The following financial statements from D.R. Horton, Inc.'s Quarterly Report on Form 10-Q for the quarter ended December 31, 2017, filed on February 8, 2018, formatted in XBRL (Extensible Business Reporting Language); (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Cash Flows and (iv) the Notes to Consolidated Financial Statements. (*)
|
*
|
|
Filed herewith.
|
(1)
|
Incorporated by reference from Exhibit 2.1 to the Company’s Current Report on Form 8-K dated June 29, 2017, filed with the SEC on June 29, 2017.
|
(2)
|
Incorporated by reference from Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2005, filed with the SEC on February 2, 2006.
|
(3)
|
Incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 2, 2017, filed with the SEC on November 8, 2017.
|
(4)
|
Incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K dated December 5, 2017, filed with the SEC on December 5, 2017.
|
(5)
|
Incorporated by reference from Exhibit 4.2 to the Company’s Current Report on Form 8-K dated December 5, 2017, filed with the SEC on December 5, 2017.
|
|
|
|
D.R. HORTON, INC.
|
Date:
|
February 8, 2018
|
By:
|
/s/ Bill W. Wheat
|
|
|
|
Bill W. Wheat, on behalf of D.R. Horton, Inc.,
|
|
|
|
as Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial and Principal Accounting Officer)
|
|
|
Three Months Ended
December 31, 2017 |
|
For the Fiscal Year Ended September 30,
|
||||||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||
Consolidated income before income taxes
|
|
$
|
391.2
|
|
|
$
|
1,602.1
|
|
|
$
|
1,353.5
|
|
|
$
|
1,123.4
|
|
|
$
|
814.2
|
|
|
$
|
657.8
|
|
Distributions in excess of earnings of equity method investees
|
|
13.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of capitalized interest
|
|
28.6
|
|
|
152.6
|
|
|
169.1
|
|
|
159.7
|
|
|
124.4
|
|
|
110.9
|
|
||||||
Interest expensed
|
|
1.5
|
|
|
6.6
|
|
|
6.2
|
|
|
5.6
|
|
|
4.8
|
|
|
11.7
|
|
||||||
Earnings
|
|
$
|
434.3
|
|
|
$
|
1,761.3
|
|
|
$
|
1,528.8
|
|
|
$
|
1,288.7
|
|
|
$
|
943.4
|
|
|
$
|
780.4
|
|
Interest incurred
|
|
$
|
32.6
|
|
|
$
|
135.9
|
|
|
$
|
158.5
|
|
|
$
|
174.8
|
|
|
$
|
190.6
|
|
|
$
|
177.3
|
|
Fixed charges
|
|
$
|
32.6
|
|
|
$
|
135.9
|
|
|
$
|
158.5
|
|
|
$
|
174.8
|
|
|
$
|
190.6
|
|
|
$
|
177.3
|
|
Ratio of earnings to fixed charges
|
|
13.32
|
|
|
12.96
|
|
|
9.65
|
|
|
7.37
|
|
|
4.95
|
|
|
4.40
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of D.R. Horton, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ D
AVID
V. A
ULD
|
|
By:
|
|
David V. Auld
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of D.R. Horton, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ B
ILL
W. W
HEAT
|
|
By:
|
|
Bill W. Wheat
Executive Vice President and
Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
|
February 8, 2018
|
|
|
/s/ D
AVID
V. A
ULD
|
|
|
|
By:
|
|
David V. Auld
President and Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
|
February 8, 2018
|
|
|
/s/ B
ILL
W. W
HEAT
|
|
|
|
By:
|
|
Bill W. Wheat
Executive Vice President and
Chief Financial Officer
|