QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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75-2386963
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1341 Horton Circle
Arlington, Texas 76011
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(Address of principal executive offices) (Zip Code)
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(817) 390-8200
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(Registrant’s telephone number, including area code)
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Not Applicable
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer
ý
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a
smaller reporting company)
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Smaller reporting company
¨
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Emerging growth company
¨
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Page
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March 31,
2018 |
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September 30,
2017 |
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(In millions)
(Unaudited) |
||||||
ASSETS
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Cash and cash equivalents
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$
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1,010.8
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$
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1,007.8
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Restricted cash
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55.4
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16.5
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Inventories:
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Construction in progress and finished homes
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5,119.6
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4,606.0
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Residential land and lots — developed and under development
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4,900.0
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4,519.7
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Land held for development
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86.6
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101.0
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Land held for sale
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38.2
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10.4
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10,144.4
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9,237.1
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Investment in unconsolidated entities
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32.1
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—
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Mortgage loans held for sale
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658.2
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587.3
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Deferred income taxes, net of valuation allowance of $25.9 million and $11.2 million
at March 31, 2018 and September 30, 2017, respectively
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219.9
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365.0
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Property and equipment, net
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380.4
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325.0
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Other assets
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607.7
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565.9
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Goodwill
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109.2
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80.0
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Total assets
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$
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13,218.1
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$
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12,184.6
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LIABILITIES
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Accounts payable
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$
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582.7
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$
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580.4
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Accrued expenses and other liabilities
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1,029.6
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985.0
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Notes payable
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3,233.9
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2,871.6
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Total liabilities
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4,846.2
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4,437.0
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Commitments and contingencies (Note K)
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EQUITY
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Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued
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—
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—
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Common stock, $.01 par value, 1,000,000,000 shares authorized, 387,459,588 shares issued
and 377,409,517 shares outstanding at March 31, 2018 and 384,036,150 shares issued
and 374,986,079 shares outstanding at September 30, 2017
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3.9
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3.8
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Additional paid-in capital
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3,045.7
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2,992.2
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Retained earnings
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5,392.1
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4,946.0
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Treasury stock, 10,050,071 shares and 9,050,071 shares at March 31, 2018
and September 30, 2017, respectively, at cost
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(242.8
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)
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(194.9
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)
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Stockholders’ equity
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8,198.9
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7,747.1
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Noncontrolling interests
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173.0
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0.5
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Total equity
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8,371.9
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7,747.6
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Total liabilities and equity
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$
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13,218.1
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$
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12,184.6
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Three Months Ended
March 31, |
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Six Months Ended
March 31, |
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2018
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2017
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2018
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2017
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(In millions, except per share data)
(Unaudited) |
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Revenues
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$
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3,794.7
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$
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3,251.3
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$
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7,127.6
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6,155.5
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Cost of sales
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2,961.6
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2,549.9
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5,541.8
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4,817.8
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Selling, general and administrative expense
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400.9
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355.2
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785.1
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681.0
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Equity in earnings of unconsolidated entities
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(0.4
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)
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—
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(2.7
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)
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—
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Gain on sale of assets
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(1.1
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)
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—
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(14.5
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)
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—
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Other (income) expense
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(11.1
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)
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(7.7
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(18.2
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)
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(15.4
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)
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Income before income taxes
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444.8
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353.9
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836.1
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672.1
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Income tax expense
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94.0
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124.7
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296.4
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236.0
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Net income
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350.8
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229.2
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539.7
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436.1
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Net loss attributable to noncontrolling interests
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(0.2
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)
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—
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(0.6
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)
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—
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Net income attributable to D.R. Horton, Inc.
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$
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351.0
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$
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229.2
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$
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540.3
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$
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436.1
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Basic net income per common share attributable to D.R. Horton, Inc.
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$
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0.93
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$
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0.61
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$
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1.44
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$
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1.17
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Weighted average number of common shares
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376.8
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374.4
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376.3
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373.8
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Diluted net income per common share attributable to D.R. Horton, Inc.
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$
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0.91
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$
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0.60
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$
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1.41
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$
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1.15
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Adjusted weighted average number of common shares
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383.9
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378.9
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383.8
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378.1
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Cash dividends declared per common share
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$
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0.125
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$
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0.10
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$
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0.25
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$
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0.20
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Six Months Ended
March 31, |
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2018
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2017
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(In millions)
(Unaudited) |
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OPERATING ACTIVITIES
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Net income
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$
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539.7
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$
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436.1
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Adjustments to reconcile net income to net cash used in operating activities:
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Depreciation and amortization
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33.1
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27.3
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Amortization of discounts and fees
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2.4
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2.6
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Stock based compensation expense
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31.0
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26.1
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Equity in earnings of unconsolidated entities
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(2.7
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)
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—
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Distributions of earnings of unconsolidated entities
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0.2
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—
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Excess income tax benefit from employee stock awards
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—
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(8.7
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)
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Deferred income taxes
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145.0
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24.1
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Inventory and land option charges
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33.8
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14.5
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Gain on sale of assets
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(14.5
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)
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—
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Changes in operating assets and liabilities:
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Increase in construction in progress and finished homes
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(514.5
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)
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(603.5
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)
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Increase in residential land and lots –
developed, under development, held for development and held for sale
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(271.5
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)
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(96.3
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)
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Decrease (increase) in other assets
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4.4
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(29.9
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)
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(Increase) decrease in mortgage loans held for sale
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(70.7
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)
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75.5
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Decrease in accounts payable, accrued expenses and other liabilities
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(14.5
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)
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(3.5
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)
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Net cash used in operating activities
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(98.8
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)
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(135.7
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)
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INVESTING ACTIVITIES
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||||
Expenditures for property and equipment
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(79.0
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)
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(57.5
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)
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Proceeds from sale of assets
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253.4
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—
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Increase in restricted cash
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(38.9
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)
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(8.9
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)
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Investment in unconsolidated entities
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(0.1
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)
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—
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Return of investment in unconsolidated entities
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15.2
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—
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Net principal decrease of other mortgage loans and real estate owned
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—
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1.0
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Purchases of debt securities collateralized by residential real estate
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—
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(3.9
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)
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Payments related to business acquisitions, net of cash acquired
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(158.1
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)
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(4.1
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)
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Net cash used in investing activities
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(7.5
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)
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(73.4
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)
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FINANCING ACTIVITIES
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||||
Proceeds from notes payable
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1,913.6
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—
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Repayment of notes payable
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(1,752.5
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)
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(0.5
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)
|
||
Advances (payments) on mortgage repurchase facility, net
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69.8
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(54.0
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)
|
||
Proceeds from stock associated with certain employee benefit plans
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32.7
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|
24.7
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||
Excess income tax benefit from employee stock awards
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—
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8.7
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Cash paid for shares withheld for taxes
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(10.3
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)
|
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(5.1
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)
|
||
Cash dividends paid
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(94.1
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)
|
|
(74.7
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)
|
||
Repurchases of common stock
|
(47.9
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)
|
|
—
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|
||
Distributions to noncontrolling interests, net
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(2.0
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)
|
|
—
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Net cash provided by (used in) financing activities
|
109.3
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(100.9
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)
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||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
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3.0
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|
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(310.0
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)
|
||
Cash and cash equivalents at beginning of period
|
1,007.8
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|
|
1,303.2
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|
||
Cash and cash equivalents at end of period
|
$
|
1,010.8
|
|
|
$
|
993.2
|
|
Supplemental disclosures of non-cash activities:
|
|
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|
||||
Notes payable issued for inventory
|
$
|
—
|
|
|
$
|
4.5
|
|
Stock issued under employee incentive plans
|
$
|
63.4
|
|
|
$
|
31.7
|
|
Cash
|
$
|
401.9
|
|
Inventories
|
334.6
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Investment in unconsolidated entities
|
98.5
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Other assets
|
51.6
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Goodwill
|
29.2
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Total assets
|
915.8
|
|
|
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|
||
Accounts payable
|
2.8
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|
Accrued expenses and other liabilities
|
49.4
|
|
|
Notes payable
|
130.1
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Total liabilities
|
182.3
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|
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||
Less: Noncontrolling interests
|
175.2
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Net assets acquired
|
$
|
558.3
|
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Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
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2018
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2017
|
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2018
|
|
2017
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||||||||
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(In millions)
|
||||||||||||||
Revenues
|
|
$
|
3,794.7
|
|
|
$
|
3,273.6
|
|
|
$
|
7,127.6
|
|
|
$
|
6,242.3
|
|
Net income attributable to D.R. Horton, Inc.
|
|
$
|
351.0
|
|
|
$
|
249.6
|
|
|
$
|
543.7
|
|
|
$
|
487.2
|
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Diluted net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.91
|
|
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$
|
0.66
|
|
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$
|
1.42
|
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|
$
|
1.29
|
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East:
|
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Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia
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Midwest:
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Colorado, Illinois and Minnesota
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Southeast:
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Alabama, Florida, Georgia, Mississippi and Tennessee
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South Central:
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Louisiana, Oklahoma and Texas
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Southwest:
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Arizona and New Mexico
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West:
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California, Hawaii, Nevada, Oregon, Utah and Washington
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|
March 31, 2018
|
||||||||||||||||||||||||||
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Homebuilding
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Forestar (1)
|
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Financial Services
|
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Other (2)
|
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Eliminations (3)
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Other Adjustments (4)
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Consolidated
|
||||||||||||||
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(In millions)
|
||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
|
$
|
528.9
|
|
|
$
|
436.4
|
|
|
$
|
29.1
|
|
|
$
|
16.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,010.8
|
|
Restricted cash
|
|
9.4
|
|
|
40.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55.4
|
|
|||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction in progress and finished homes
|
|
5,119.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,119.6
|
|
|||||||
Residential land and lots — developed and under development
|
|
4,595.2
|
|
|
261.7
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
40.7
|
|
|
4,900.0
|
|
|||||||
Land held for development
|
|
86.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86.6
|
|
|||||||
Land held for sale
|
|
38.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.2
|
|
|||||||
|
|
9,839.6
|
|
|
261.7
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
40.7
|
|
|
10,144.4
|
|
|||||||
Investment in unconsolidated entities
|
|
—
|
|
|
17.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
|
32.1
|
|
|||||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
658.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
658.2
|
|
|||||||
Deferred income taxes
|
|
218.2
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
219.9
|
|
|||||||
Property and equipment, net
|
|
204.8
|
|
|
1.8
|
|
|
3.0
|
|
|
170.8
|
|
|
—
|
|
|
—
|
|
|
380.4
|
|
|||||||
Other assets
|
|
543.6
|
|
|
22.5
|
|
|
42.0
|
|
|
3.9
|
|
|
(23.0
|
)
|
|
18.7
|
|
|
607.7
|
|
|||||||
Goodwill
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.2
|
|
|
109.2
|
|
|||||||
|
|
$
|
11,424.5
|
|
|
$
|
781.1
|
|
|
$
|
738.3
|
|
|
$
|
191.1
|
|
|
$
|
(20.6
|
)
|
|
$
|
103.7
|
|
|
$
|
13,218.1
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable
|
|
$
|
568.9
|
|
|
$
|
2.1
|
|
|
$
|
3.0
|
|
|
$
|
8.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
582.7
|
|
Accrued expenses and other liabilities
|
|
967.9
|
|
|
59.2
|
|
|
35.6
|
|
|
15.2
|
|
|
(23.0
|
)
|
|
(25.3
|
)
|
|
1,029.6
|
|
|||||||
Notes payable
|
|
2,623.1
|
|
|
109.8
|
|
|
489.8
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
3,233.9
|
|
|||||||
|
|
$
|
4,159.9
|
|
|
$
|
171.1
|
|
|
$
|
528.4
|
|
|
$
|
23.9
|
|
|
$
|
(23.0
|
)
|
|
$
|
(14.1
|
)
|
|
$
|
4,846.2
|
|
(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 the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
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 March 31, 2018
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
3,672.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,672.1
|
|
Land/lot sales and other
|
|
13.6
|
|
|
22.6
|
|
|
—
|
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
27.7
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
94.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94.9
|
|
|||||||
|
|
3,685.7
|
|
|
22.6
|
|
|
94.9
|
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
3,794.7
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
2,907.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,907.5
|
|
|||||||
Land/lot sales and other
|
|
12.0
|
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
2.5
|
|
|
24.0
|
|
|||||||
Inventory and land option charges
|
|
30.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.1
|
|
|||||||
|
|
2,949.6
|
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
2.5
|
|
|
2,961.6
|
|
|||||||
Selling, general and administrative expense
|
|
322.7
|
|
|
5.6
|
|
|
66.7
|
|
|
5.8
|
|
|
—
|
|
|
0.1
|
|
|
400.9
|
|
|||||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
(0.4
|
)
|
|||||||
Gain on sale of assets
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
(1.1
|
)
|
|||||||
Interest expense
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other (income) expense
|
|
(2.6
|
)
|
|
(1.7
|
)
|
|
(3.2
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
(11.1
|
)
|
|||||||
Income (loss) before income taxes
|
|
$
|
416.0
|
|
|
$
|
4.6
|
|
|
$
|
31.4
|
|
|
$
|
(2.2
|
)
|
|
$
|
0.3
|
|
|
$
|
(5.3
|
)
|
|
$
|
444.8
|
|
(1)
|
Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
Six Months Ended March 31, 2018
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
6,856.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,856.6
|
|
Land/lot sales and other
|
|
50.0
|
|
|
53.5
|
|
|
—
|
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
95.0
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
176.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176.0
|
|
|||||||
|
|
6,906.6
|
|
|
53.5
|
|
|
176.0
|
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
7,127.6
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
5,429.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,429.0
|
|
|||||||
Land/lot sales and other
|
|
43.3
|
|
|
35.5
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
6.9
|
|
|
79.0
|
|
|||||||
Inventory and land option charges
|
|
33.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33.8
|
|
|||||||
|
|
5,506.1
|
|
|
35.5
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
6.9
|
|
|
5,541.8
|
|
|||||||
Selling, general and administrative expense
|
|
627.5
|
|
|
19.1
|
|
|
128.4
|
|
|
9.8
|
|
|
—
|
|
|
0.3
|
|
|
785.1
|
|
|||||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
(9.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
(2.7
|
)
|
|||||||
Gain on sale of assets
|
|
(13.4
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
(14.5
|
)
|
|||||||
Interest expense
|
|
—
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other (income) expense
|
|
(3.4
|
)
|
|
(2.2
|
)
|
|
(6.1
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
—
|
|
|
(18.2
|
)
|
|||||||
Income (loss) before income taxes
|
|
$
|
789.8
|
|
|
$
|
8.7
|
|
|
$
|
53.7
|
|
|
$
|
(3.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(15.2
|
)
|
|
$
|
836.1
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Depreciation and amortization
|
|
$
|
26.3
|
|
|
$
|
2.5
|
|
|
$
|
0.7
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
33.1
|
|
Cash provided by (used in) operating activities
|
|
$
|
90.7
|
|
|
$
|
(150.2
|
)
|
|
$
|
(30.7
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
—
|
|
|
$
|
(8.1
|
)
|
|
$
|
(98.8
|
)
|
(1)
|
Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions with Forestar and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
Three Months Ended March 31, 2017
|
||||||||||||||
|
|
Homebuilding
|
|
Financial Services
|
|
Other (1)
|
|
Consolidated
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
$
|
3,158.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,158.1
|
|
Land/lot sales and other
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
||||
Financial services
|
|
—
|
|
|
86.9
|
|
|
—
|
|
|
86.9
|
|
||||
|
|
3,164.4
|
|
|
86.9
|
|
|
—
|
|
|
3,251.3
|
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
2,532.1
|
|
|
—
|
|
|
—
|
|
|
2,532.1
|
|
||||
Land/lot sales and other
|
|
5.6
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
||||
Inventory and land option charges
|
|
12.2
|
|
|
—
|
|
|
—
|
|
|
12.2
|
|
||||
|
|
2,549.9
|
|
|
—
|
|
|
—
|
|
|
2,549.9
|
|
||||
Selling, general and administrative expense
|
|
294.5
|
|
|
58.2
|
|
|
2.5
|
|
|
355.2
|
|
||||
Other (income) expense
|
|
(2.4
|
)
|
|
(3.5
|
)
|
|
(1.8
|
)
|
|
(7.7
|
)
|
||||
Income (loss) before income taxes
|
|
$
|
322.4
|
|
|
$
|
32.2
|
|
|
$
|
(0.7
|
)
|
|
$
|
353.9
|
|
|
|
Six Months Ended March 31, 2017
|
||||||||||||||
|
|
Homebuilding
|
|
Financial Services
|
|
Other (1)
|
|
Consolidated
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
$
|
5,955.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,955.8
|
|
Land/lot sales and other
|
|
34.7
|
|
|
—
|
|
|
—
|
|
|
34.7
|
|
||||
Financial services
|
|
—
|
|
|
165.0
|
|
|
—
|
|
|
165.0
|
|
||||
|
|
5,990.5
|
|
|
165.0
|
|
|
—
|
|
|
6,155.5
|
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
|
||||||||
Home sales
|
|
4,776.9
|
|
|
—
|
|
|
—
|
|
|
4,776.9
|
|
||||
Land/lot sales and other
|
|
26.4
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
||||
Inventory and land option charges
|
|
14.5
|
|
|
—
|
|
|
—
|
|
|
14.5
|
|
||||
|
|
4,817.8
|
|
|
—
|
|
|
—
|
|
|
4,817.8
|
|
||||
Selling, general and administrative expense
|
|
562.9
|
|
|
112.9
|
|
|
5.2
|
|
|
681.0
|
|
||||
Other (income) expense
|
|
(6.5
|
)
|
|
(6.7
|
)
|
|
(2.2
|
)
|
|
(15.4
|
)
|
||||
Income (loss) before income taxes
|
|
$
|
616.3
|
|
|
$
|
58.8
|
|
|
$
|
(3.0
|
)
|
|
$
|
672.1
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
|
|
$
|
25.0
|
|
|
$
|
0.7
|
|
|
$
|
1.6
|
|
|
$
|
27.3
|
|
Cash (used in) provided by operating activities
|
|
$
|
(240.4
|
)
|
|
$
|
108.6
|
|
|
$
|
(3.9
|
)
|
|
$
|
(135.7
|
)
|
(1)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
Homebuilding Inventories by Reporting Segment
(1)
|
|
March 31,
2018 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
East
|
|
$
|
1,188.2
|
|
|
$
|
1,068.9
|
|
Midwest
|
|
545.6
|
|
|
492.6
|
|
||
Southeast
|
|
2,597.3
|
|
|
2,392.3
|
|
||
South Central
|
|
2,326.2
|
|
|
2,199.4
|
|
||
Southwest
|
|
536.9
|
|
|
506.1
|
|
||
West
|
|
2,415.9
|
|
|
2,352.5
|
|
||
Corporate and unallocated (2)
|
|
229.5
|
|
|
225.3
|
|
||
|
|
$
|
9,839.6
|
|
|
$
|
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
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
435.8
|
|
|
$
|
372.6
|
|
|
$
|
828.9
|
|
|
$
|
678.6
|
|
Midwest
|
|
203.6
|
|
|
168.7
|
|
|
365.0
|
|
|
319.8
|
|
||||
Southeast
|
|
1,042.0
|
|
|
969.0
|
|
|
2,030.6
|
|
|
1,852.4
|
|
||||
South Central
|
|
919.0
|
|
|
815.4
|
|
|
1,727.8
|
|
|
1,572.3
|
|
||||
Southwest
|
|
172.1
|
|
|
126.7
|
|
|
328.5
|
|
|
235.2
|
|
||||
West
|
|
913.2
|
|
|
712.0
|
|
|
1,625.8
|
|
|
1,332.2
|
|
||||
|
|
$
|
3,685.7
|
|
|
$
|
3,164.4
|
|
|
$
|
6,906.6
|
|
|
$
|
5,990.5
|
|
Inventory and Land Option Charges (1)
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
0.7
|
|
|
$
|
6.2
|
|
|
$
|
0.6
|
|
|
$
|
6.5
|
|
Midwest
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.3
|
|
||||
Southeast
|
|
25.1
|
|
|
0.9
|
|
|
26.2
|
|
|
1.6
|
|
||||
South Central
|
|
0.6
|
|
|
1.6
|
|
|
1.9
|
|
|
1.9
|
|
||||
Southwest
|
|
—
|
|
|
0.1
|
|
|
0.8
|
|
|
0.1
|
|
||||
West
|
|
3.5
|
|
|
3.2
|
|
|
3.9
|
|
|
4.1
|
|
||||
|
|
$
|
30.1
|
|
|
$
|
12.2
|
|
|
$
|
33.8
|
|
|
$
|
14.5
|
|
Income before Income Taxes (2)
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
46.7
|
|
|
$
|
25.9
|
|
|
$
|
91.7
|
|
|
$
|
52.2
|
|
Midwest
|
|
18.7
|
|
|
0.7
|
|
|
32.0
|
|
|
10.9
|
|
||||
Southeast
|
|
96.3
|
|
|
113.1
|
|
|
218.8
|
|
|
212.7
|
|
||||
South Central
|
|
120.5
|
|
|
105.8
|
|
|
222.0
|
|
|
202.3
|
|
||||
Southwest
|
|
22.0
|
|
|
7.2
|
|
|
36.7
|
|
|
11.2
|
|
||||
West
|
|
111.8
|
|
|
69.7
|
|
|
188.6
|
|
|
127.0
|
|
||||
|
|
$
|
416.0
|
|
|
$
|
322.4
|
|
|
$
|
789.8
|
|
|
$
|
616.3
|
|
(1)
|
To conform to the current year presentation, prior period amounts include earnest money and pre-acquisition cost write-offs.
|
(2)
|
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.
|
|
|
March 31,
2018 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Homebuilding:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
Revolving credit facility, maturing 2022
|
|
$
|
175.0
|
|
|
$
|
—
|
|
3.625% senior notes due 2018
|
|
—
|
|
|
399.7
|
|
||
3.75% senior notes due 2019
|
|
499.2
|
|
|
498.8
|
|
||
4.0% senior notes due 2020
|
|
498.4
|
|
|
497.9
|
|
||
2.55% senior notes due 2020
|
|
397.6
|
|
|
—
|
|
||
4.375% senior notes due 2022
|
|
348.2
|
|
|
348.1
|
|
||
4.75% senior notes due 2023
|
|
298.5
|
|
|
298.4
|
|
||
5.75% senior notes due 2023
|
|
397.8
|
|
|
397.6
|
|
||
Other secured notes
|
|
8.4
|
|
|
11.1
|
|
||
|
|
2,623.1
|
|
|
2,451.6
|
|
||
Forestar:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
3.75% convertible senior notes due 2020
|
|
120.5
|
|
|
|
|||
Other indebtedness
|
|
0.5
|
|
|
|
|||
|
|
121.0
|
|
|
|
|||
Financial Services:
|
|
|
|
|
||||
Mortgage repurchase facility, maturing 2019
|
|
489.8
|
|
|
420.0
|
|
||
|
|
$
|
3,233.9
|
|
|
$
|
2,871.6
|
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Capitalized interest, beginning of period
|
|
$
|
170.3
|
|
|
$
|
190.0
|
|
|
$
|
167.9
|
|
|
$
|
191.2
|
|
Interest incurred (1)
|
|
31.8
|
|
|
33.5
|
|
|
62.8
|
|
|
67.0
|
|
||||
Interest charged to cost of sales
|
|
(32.0
|
)
|
|
(37.3
|
)
|
|
(60.6
|
)
|
|
(72.0
|
)
|
||||
Capitalized interest, end of period
|
|
$
|
170.1
|
|
|
$
|
186.2
|
|
|
$
|
170.1
|
|
|
$
|
186.2
|
|
(1)
|
Interest incurred includes interest on the Company's mortgage repurchase facility of
$2.4 million
and
$4.5 million
in the
three and six months
ended
March 31, 2018
, respectively, and
$1.8 million
and
$3.5 million
in the same periods of fiscal
2017
. Also included in the fiscal
2018
amounts is the interest incurred by Forestar of
$1.3 million
in the
three months
ended
March 31, 2018
and
$1.4 million
from the acquisition date through
March 31, 2018
.
|
|
|
March 31,
2018 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Other mortgage loans
|
|
$
|
7.6
|
|
|
$
|
8.3
|
|
Real estate owned
|
|
0.3
|
|
|
—
|
|
||
|
|
$
|
7.9
|
|
|
$
|
8.3
|
|
|
|
March 31,
2018 |
|
September 30,
2017 |
||||
|
|
(In millions)
|
||||||
Loss reserves related to:
|
|
|
|
|
||||
Other mortgage loans
|
|
$
|
0.9
|
|
|
$
|
1.0
|
|
Loan repurchase and settlement obligations – known and expected
|
|
7.4
|
|
|
7.7
|
|
||
|
|
$
|
8.3
|
|
|
$
|
8.7
|
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
351.0
|
|
|
$
|
229.2
|
|
|
$
|
540.3
|
|
|
$
|
436.1
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Denominator for basic earnings per share — weighted average common shares
|
|
376.8
|
|
|
374.4
|
|
|
376.3
|
|
|
373.8
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Employee stock awards
|
|
7.1
|
|
|
4.5
|
|
|
7.5
|
|
|
4.3
|
|
||||
Denominator for diluted earnings per share — adjusted weighted average common shares
|
|
383.9
|
|
|
378.9
|
|
|
383.8
|
|
|
378.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.93
|
|
|
$
|
0.61
|
|
|
$
|
1.44
|
|
|
$
|
1.17
|
|
Diluted net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
0.91
|
|
|
$
|
0.60
|
|
|
$
|
1.41
|
|
|
$
|
1.15
|
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Warranty liability, beginning of period
|
|
$
|
149.4
|
|
|
$
|
107.8
|
|
|
$
|
143.7
|
|
|
$
|
104.4
|
|
Warranties issued
|
|
19.3
|
|
|
15.1
|
|
|
35.8
|
|
|
28.3
|
|
||||
Changes in liability for pre-existing warranties
|
|
13.7
|
|
|
3.9
|
|
|
20.5
|
|
|
6.3
|
|
||||
Settlements made
|
|
(19.8
|
)
|
|
(14.0
|
)
|
|
(37.4
|
)
|
|
(26.2
|
)
|
||||
Warranty liability, end of period
|
|
$
|
162.6
|
|
|
$
|
112.8
|
|
|
$
|
162.6
|
|
|
$
|
112.8
|
|
|
Six Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Reserves for legal claims, beginning of period
|
$
|
420.6
|
|
|
$
|
423.5
|
|
Increase in reserves
|
41.4
|
|
|
56.2
|
|
||
Payments
|
(18.4
|
)
|
|
(38.2
|
)
|
||
Reserves for legal claims, end of period
|
$
|
443.6
|
|
|
$
|
441.5
|
|
|
|
March 31,
2018 |
|
September 30, 2017 (1)
|
||||
|
|
(In millions)
|
||||||
Earnest money and refundable deposits
|
|
$
|
340.0
|
|
|
$
|
312.2
|
|
Insurance receivables
|
|
69.0
|
|
|
74.4
|
|
||
Other receivables
|
|
78.0
|
|
|
60.0
|
|
||
Prepaid assets
|
|
23.3
|
|
|
30.8
|
|
||
Rental properties
|
|
39.2
|
|
|
52.0
|
|
||
Other
|
|
58.2
|
|
|
36.5
|
|
||
|
|
$
|
607.7
|
|
|
$
|
565.9
|
|
|
|
March 31,
2018 |
|
September 30, 2017 (1)
|
||||
|
|
(In millions)
|
||||||
Reserves for legal claims
|
|
$
|
443.6
|
|
|
$
|
420.6
|
|
Employee compensation and related liabilities
|
|
203.5
|
|
|
197.9
|
|
||
Warranty liability
|
|
162.6
|
|
|
143.7
|
|
||
Accrued interest
|
|
13.5
|
|
|
11.9
|
|
||
Federal and state income tax liabilities
|
|
7.7
|
|
|
20.3
|
|
||
Inventory related accruals
|
|
29.7
|
|
|
24.8
|
|
||
Customer deposits
|
|
57.9
|
|
|
44.9
|
|
||
Accrued property taxes
|
|
21.4
|
|
|
33.9
|
|
||
Other
|
|
89.7
|
|
|
87.0
|
|
||
|
|
$
|
1,029.6
|
|
|
$
|
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.
|
|
|
March 31,
2018 |
||
|
|
(In millions)
|
||
Assets:
|
|
|
||
Cash and cash equivalents
|
|
$
|
6.4
|
|
Real estate
|
|
88.8
|
|
|
Other assets
|
|
1.3
|
|
|
Total assets
|
|
$
|
96.5
|
|
Liabilities and Equity:
|
|
|
||
Accounts payable and other liabilities
|
|
$
|
5.2
|
|
Debt
|
|
45.8
|
|
|
Equity
|
|
45.5
|
|
|
Total liabilities and equity
|
|
$
|
96.5
|
|
|
|
Three Months Ended
March 31, 2018 |
|
Six Months Ended
March 31, 2018 |
||||
|
|
(In millions)
|
||||||
Revenues
|
|
$
|
3.4
|
|
|
$
|
12.1
|
|
Net earnings of unconsolidated entities (1)
|
|
$
|
4.3
|
|
|
$
|
21.7
|
|
D.R. Horton’s equity in earnings of unconsolidated entities (1)
|
|
$
|
0.4
|
|
|
$
|
2.7
|
|
(1)
|
Earnings in the
six-month period
primarily relate 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
$0.4 million
and
$2.7 million
in the
three and six months
ended
March 31, 2018
, respectively, is after consideration of purchase accounting adjustments. Forestar’s equity in earnings of unconsolidated entities for the
three months
ended
March 31, 2018
was
$1.5 million
and for the period from acquisition through
March 31, 2018
was
$9.1 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 March 31, 2018
|
||||||||||||||
|
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
|
|
—
|
|
|
651.8
|
|
|
4.4
|
|
|
656.2
|
|
||||
Derivatives not designated as hedging instruments (b):
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
Other assets
|
|
—
|
|
|
18.2
|
|
|
—
|
|
|
18.2
|
|
||||
Forward sales of MBS
|
Other liabilities
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
||||
Best-efforts and mandatory commitments
|
Other liabilities
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
|
|
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 Six Months Ended March 31, 2018
|
||||||||||||||||||||||||||
|
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
March 31, 2018 |
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Debt securities collateralized by residential real estate
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
Mortgage loans held for sale (a)
|
5.6
|
|
|
0.6
|
|
|
—
|
|
|
(6.3
|
)
|
|
—
|
|
|
4.5
|
|
|
4.4
|
|
|||||||
|
Level 3 Assets at Fair Value for the Six Months Ended March 31, 2017
|
||||||||||||||||||||||||||
|
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
March 31, 2017 |
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Debt securities collateralized by residential real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.9
|
|
Mortgage loans held for sale (a)
|
6.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
|
|
3.4
|
|
|
8.4
|
|
(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
March 31, 2018
and
September 30, 2017
include
$4.4 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
$4.5 million
and
$3.4 million
were transferred to Level 3 during the
six months
ended
March 31, 2018
and
2017
, 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
March 31, 2018 |
|
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
|
|
$
|
—
|
|
|
$
|
4.3
|
|
|
$
|
—
|
|
|
$
|
33.4
|
|
Inventory available for sale (a) (c)
|
Inventories
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
||||
Mortgage loans held for sale (a) (d)
|
Mortgage loans held for sale
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
0.6
|
|
||||
Other mortgage loans (a) (e)
|
Other assets
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
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 March 31, 2018
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(In millions)
|
||||||||||||||||||
Cash and cash equivalents (a)
|
$
|
1,010.8
|
|
|
$
|
1,010.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,010.8
|
|
Restricted cash (a)
|
55.4
|
|
|
55.4
|
|
|
—
|
|
|
—
|
|
|
55.4
|
|
|||||
Notes payable (b) (c)
|
3,233.9
|
|
|
—
|
|
|
2,642.3
|
|
|
673.7
|
|
|
3,316.0
|
|
|
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 (b) (c)
|
2,871.6
|
|
|
—
|
|
|
2,584.1
|
|
|
431.1
|
|
|
3,015.2
|
|
(a)
|
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.
|
(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.
|
(c)
|
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.
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
372.1
|
|
|
$
|
114.9
|
|
|
$
|
523.8
|
|
|
$
|
—
|
|
|
$
|
1,010.8
|
|
Restricted cash
|
|
6.7
|
|
|
2.7
|
|
|
46.0
|
|
|
—
|
|
|
55.4
|
|
|||||
Investments in subsidiaries
|
|
5,753.5
|
|
|
—
|
|
|
—
|
|
|
(5,753.5
|
)
|
|
—
|
|
|||||
Inventories
|
|
3,975.9
|
|
|
5,850.1
|
|
|
320.2
|
|
|
(1.8
|
)
|
|
10,144.4
|
|
|||||
Investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
32.1
|
|
|
—
|
|
|
32.1
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
658.2
|
|
|
—
|
|
|
658.2
|
|
|||||
Deferred income taxes
|
|
84.8
|
|
|
131.1
|
|
|
4.0
|
|
|
—
|
|
|
219.9
|
|
|||||
Property and equipment, net
|
|
110.8
|
|
|
63.7
|
|
|
212.5
|
|
|
(6.6
|
)
|
|
380.4
|
|
|||||
Other assets
|
|
255.0
|
|
|
286.4
|
|
|
87.7
|
|
|
(21.4
|
)
|
|
607.7
|
|
|||||
Goodwill
|
|
—
|
|
|
80.0
|
|
|
29.2
|
|
|
—
|
|
|
109.2
|
|
|||||
Intercompany receivables
|
|
778.4
|
|
|
—
|
|
|
—
|
|
|
(778.4
|
)
|
|
—
|
|
|||||
Total Assets
|
|
$
|
11,337.2
|
|
|
$
|
6,528.9
|
|
|
$
|
1,913.7
|
|
|
$
|
(6,561.7
|
)
|
|
$
|
13,218.1
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other liabilities
|
|
$
|
515.0
|
|
|
$
|
949.2
|
|
|
$
|
171.6
|
|
|
$
|
(23.5
|
)
|
|
$
|
1,612.3
|
|
Intercompany payables
|
|
—
|
|
|
545.2
|
|
|
233.2
|
|
|
(778.4
|
)
|
|
—
|
|
|||||
Notes payable
|
|
2,616.9
|
|
|
6.3
|
|
|
610.7
|
|
|
—
|
|
|
3,233.9
|
|
|||||
Total Liabilities
|
|
3,131.9
|
|
|
1,500.7
|
|
|
1,015.5
|
|
|
(801.9
|
)
|
|
4,846.2
|
|
|||||
Stockholders’ equity
|
|
8,205.3
|
|
|
5,028.2
|
|
|
725.2
|
|
|
(5,759.8
|
)
|
|
8,198.9
|
|
|||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
173.0
|
|
|
—
|
|
|
173.0
|
|
|||||
Total Equity
|
|
8,205.3
|
|
|
5,028.2
|
|
|
898.2
|
|
|
(5,759.8
|
)
|
|
8,371.9
|
|
|||||
Total Liabilities & Equity
|
|
$
|
11,337.2
|
|
|
$
|
6,528.9
|
|
|
$
|
1,913.7
|
|
|
$
|
(6,561.7
|
)
|
|
$
|
13,218.1
|
|
|
|
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
|
|
$
|
1,288.0
|
|
|
$
|
2,402.7
|
|
|
$
|
117.5
|
|
|
$
|
(13.5
|
)
|
|
$
|
3,794.7
|
|
Cost of sales
|
|
1,026.2
|
|
|
1,926.9
|
|
|
19.4
|
|
|
(10.9
|
)
|
|
2,961.6
|
|
|||||
Selling, general and administrative expense
|
|
156.9
|
|
|
164.8
|
|
|
79.2
|
|
|
—
|
|
|
400.9
|
|
|||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||||
Gain on sale of assets
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|||||
Other (income) expense
|
|
(1.7
|
)
|
|
(0.7
|
)
|
|
(8.7
|
)
|
|
—
|
|
|
(11.1
|
)
|
|||||
Income before income taxes
|
|
106.6
|
|
|
311.7
|
|
|
29.1
|
|
|
(2.6
|
)
|
|
444.8
|
|
|||||
Income tax expense
|
|
20.7
|
|
|
67.4
|
|
|
5.9
|
|
|
—
|
|
|
94.0
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
267.5
|
|
|
—
|
|
|
—
|
|
|
(267.5
|
)
|
|
—
|
|
|||||
Net income
|
|
353.4
|
|
|
244.3
|
|
|
23.2
|
|
|
(270.1
|
)
|
|
350.8
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
353.4
|
|
|
$
|
244.3
|
|
|
$
|
23.4
|
|
|
$
|
(270.1
|
)
|
|
$
|
351.0
|
|
|
|
D.R.
Horton, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
2,451.9
|
|
|
$
|
4,455.1
|
|
|
$
|
234.1
|
|
|
$
|
(13.5
|
)
|
|
$
|
7,127.6
|
|
Cost of sales
|
|
1,941.6
|
|
|
3,567.0
|
|
|
44.1
|
|
|
(10.9
|
)
|
|
5,541.8
|
|
|||||
Selling, general and administrative expense
|
|
309.1
|
|
|
316.4
|
|
|
159.6
|
|
|
—
|
|
|
785.1
|
|
|||||
Equity in earnings of unconsolidated entities
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
(2.7
|
)
|
|||||
Gain on sale of assets
|
|
—
|
|
|
—
|
|
|
(14.5
|
)
|
|
—
|
|
|
(14.5
|
)
|
|||||
Other (income) expense
|
|
(2.1
|
)
|
|
(0.7
|
)
|
|
(15.4
|
)
|
|
—
|
|
|
(18.2
|
)
|
|||||
Income before income taxes
|
|
203.3
|
|
|
572.4
|
|
|
63.0
|
|
|
(2.6
|
)
|
|
836.1
|
|
|||||
Income tax expense
|
|
71.8
|
|
|
205.3
|
|
|
19.3
|
|
|
—
|
|
|
296.4
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
410.8
|
|
|
—
|
|
|
—
|
|
|
(410.8
|
)
|
|
—
|
|
|||||
Net income
|
|
542.3
|
|
|
367.1
|
|
|
43.7
|
|
|
(413.4
|
)
|
|
539.7
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
542.3
|
|
|
$
|
367.1
|
|
|
$
|
44.3
|
|
|
$
|
(413.4
|
)
|
|
$
|
540.3
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
1,094.4
|
|
|
$
|
2,044.6
|
|
|
$
|
112.3
|
|
|
$
|
—
|
|
|
$
|
3,251.3
|
|
Cost of sales
|
|
877.9
|
|
|
1,647.3
|
|
|
24.7
|
|
|
—
|
|
|
2,549.9
|
|
|||||
Selling, general and administrative expense
|
|
143.3
|
|
|
149.5
|
|
|
62.4
|
|
|
—
|
|
|
355.2
|
|
|||||
Other (income) expense
|
|
(1.1
|
)
|
|
(0.9
|
)
|
|
(5.7
|
)
|
|
—
|
|
|
(7.7
|
)
|
|||||
Income before income taxes
|
|
74.3
|
|
|
248.7
|
|
|
30.9
|
|
|
—
|
|
|
353.9
|
|
|||||
Income tax expense
|
|
26.1
|
|
|
87.1
|
|
|
11.5
|
|
|
—
|
|
|
124.7
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
181.0
|
|
|
—
|
|
|
—
|
|
|
(181.0
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
229.2
|
|
|
$
|
161.6
|
|
|
$
|
19.4
|
|
|
$
|
(181.0
|
)
|
|
$
|
229.2
|
|
|
|
D.R.
Horton, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
2,012.5
|
|
|
$
|
3,940.7
|
|
|
$
|
202.3
|
|
|
$
|
—
|
|
|
$
|
6,155.5
|
|
Cost of sales
|
|
1,613.3
|
|
|
3,172.0
|
|
|
32.5
|
|
|
—
|
|
|
4,817.8
|
|
|||||
Selling, general and administrative expense
|
|
267.2
|
|
|
292.9
|
|
|
120.9
|
|
|
—
|
|
|
681.0
|
|
|||||
Other (income) expense
|
|
(5.2
|
)
|
|
(0.9
|
)
|
|
(9.3
|
)
|
|
—
|
|
|
(15.4
|
)
|
|||||
Income before income taxes
|
|
137.2
|
|
|
476.7
|
|
|
58.2
|
|
|
—
|
|
|
672.1
|
|
|||||
Income tax expense
|
|
47.9
|
|
|
166.4
|
|
|
21.7
|
|
|
—
|
|
|
236.0
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
346.8
|
|
|
—
|
|
|
—
|
|
|
(346.8
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
436.1
|
|
|
$
|
310.3
|
|
|
$
|
36.5
|
|
|
$
|
(346.8
|
)
|
|
$
|
436.1
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
|
$
|
(147.3
|
)
|
|
$
|
269.9
|
|
|
$
|
(184.4
|
)
|
|
$
|
(37.0
|
)
|
|
$
|
(98.8
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(21.4
|
)
|
|
(15.0
|
)
|
|
(47.6
|
)
|
|
5.0
|
|
|
(79.0
|
)
|
|||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
253.4
|
|
|
—
|
|
|
253.4
|
|
|||||
Decrease (increase) in restricted cash
|
|
1.1
|
|
|
(1.2
|
)
|
|
(38.8
|
)
|
|
—
|
|
|
(38.9
|
)
|
|||||
Investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Return of investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
15.2
|
|
|
—
|
|
|
15.2
|
|
|||||
Intercompany advances
|
|
266.3
|
|
|
—
|
|
|
—
|
|
|
(266.3
|
)
|
|
—
|
|
|||||
Payments related to business acquisitions, net of cash acquired
|
|
(560.0
|
)
|
|
—
|
|
|
401.9
|
|
|
—
|
|
|
(158.1
|
)
|
|||||
Net cash (used in) provided by investing activities
|
|
(314.0
|
)
|
|
(16.2
|
)
|
|
584.0
|
|
|
(261.3
|
)
|
|
(7.5
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from notes payable
|
|
1,912.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1,913.6
|
|
|||||
Repayment of notes payable
|
|
(1,740.2
|
)
|
|
(2.3
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
(1,752.5
|
)
|
|||||
Advances on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
69.8
|
|
|
—
|
|
|
69.8
|
|
|||||
Intercompany advances
|
|
—
|
|
|
(291.0
|
)
|
|
24.7
|
|
|
266.3
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
32.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.7
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3
|
)
|
|||||
Cash dividends paid
|
|
(94.1
|
)
|
|
—
|
|
|
(32.0
|
)
|
|
32.0
|
|
|
(94.1
|
)
|
|||||
Repurchases of common stock
|
|
(47.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.9
|
)
|
|||||
Distributions to noncontrolling interests, net
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
52.5
|
|
|
(293.3
|
)
|
|
51.8
|
|
|
298.3
|
|
|
109.3
|
|
|||||
(Decrease) increase in cash and cash equivalents
|
|
(408.8
|
)
|
|
(39.6
|
)
|
|
451.4
|
|
|
—
|
|
|
3.0
|
|
|||||
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
|
|
$
|
372.1
|
|
|
$
|
114.9
|
|
|
$
|
523.8
|
|
|
$
|
—
|
|
|
$
|
1,010.8
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
|
$
|
(303.6
|
)
|
|
$
|
130.3
|
|
|
$
|
87.6
|
|
|
$
|
(50.0
|
)
|
|
$
|
(135.7
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(28.4
|
)
|
|
(11.7
|
)
|
|
(17.4
|
)
|
|
—
|
|
|
(57.5
|
)
|
|||||
Increase in restricted cash
|
|
(1.3
|
)
|
|
(0.3
|
)
|
|
(7.3
|
)
|
|
—
|
|
|
(8.9
|
)
|
|||||
Net principal decrease of other mortgage loans and real estate owned
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||||
Purchases of debt securities collateralized by residential real estate
|
|
(3.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|||||
Intercompany advances
|
|
123.8
|
|
|
—
|
|
|
—
|
|
|
(123.8
|
)
|
|
—
|
|
|||||
Payments related to business acquisitions
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
86.1
|
|
|
(12.0
|
)
|
|
(23.7
|
)
|
|
(123.8
|
)
|
|
(73.4
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of notes payable
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|||||
Payments on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
(54.0
|
)
|
|
—
|
|
|
(54.0
|
)
|
|||||
Intercompany advances
|
|
—
|
|
|
(176.6
|
)
|
|
52.8
|
|
|
123.8
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
24.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.7
|
|
|||||
Excess income tax benefit from employee stock awards
|
|
8.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.7
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(5.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.1
|
)
|
|||||
Cash dividends paid
|
|
(74.7
|
)
|
|
—
|
|
|
(50.0
|
)
|
|
50.0
|
|
|
(74.7
|
)
|
|||||
Net cash used in financing activities
|
|
(46.4
|
)
|
|
(177.1
|
)
|
|
(51.2
|
)
|
|
173.8
|
|
|
(100.9
|
)
|
|||||
(Decrease) increase in cash and cash equivalents
|
|
(263.9
|
)
|
|
(58.8
|
)
|
|
12.7
|
|
|
—
|
|
|
(310.0
|
)
|
|||||
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
|
|
$
|
812.5
|
|
|
$
|
95.2
|
|
|
$
|
85.5
|
|
|
$
|
—
|
|
|
$
|
993.2
|
|
•
|
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 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
16%
to
$3.7 billion
.
|
•
|
Homes closed
increased
15%
to
12,281
homes, and the average closing price of those homes
increased
1%
to
$299,000
.
|
•
|
Net sales orders
increased
13%
to
15,828
homes, and the value of net sales orders
increased
13%
to
$4.7 billion
.
|
•
|
Sales order backlog
increased
8%
to
15,841
homes, and the value of sales order backlog
increased
9%
to
$4.8 billion
.
|
•
|
Home sales gross margin
increased
100
basis points to
20.8%
.
|
•
|
Homebuilding SG&A expenses as a percentage of homebuilding revenues
decreased
by
50
basis points to
8.8%
.
|
•
|
Homebuilding pre-tax income
increased
29%
to
$416.0 million
compared to
$322.4 million
.
|
•
|
Homebuilding pre-tax income as a percentage of homebuilding revenues
improved
to
11.3%
from
10.2%
.
|
•
|
Homebuilding cash and cash equivalents totaled
$528.9 million
compared to
$973.0 million
and
$947.9 million
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Homebuilding inventories totaled
$9.8 billion
compared to
$9.2 billion
and
$9.0 billion
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Homes in inventory totaled
29,400
compared to
26,200
and
27,100
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Owned lots totaled
124,200
compared to
125,000
and
118,500
at
September 30, 2017
and
March 31, 2017
, respectively. Lots controlled through option purchase contracts totaled
133,500
compared to
124,000
and
108,800
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Homebuilding debt was
$2.6 billion
compared to
$2.5 billion
and
$2.8 billion
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Homebuilding debt to total capital was
24.2%
compared to
24.0%
at
September 30, 2017
and
28.0%
at
March 31, 2017
.
|
•
|
Forestar’s revenues were
$22.6 million
, which includes
$8.5 million
of lot sales to our homebuilding segment.
|
•
|
Forestar’s pre-tax income was
$4.6 million
, which included pre-tax income of
$1.8 million
from lot sales to our homebuilding segment.
|
•
|
Owned and controlled lots totaled
13,600
, including
8,700
lots under contract or subject to a right of first offer with D.R. Horton.
|
•
|
Forestar’s cash and cash equivalents totaled
$436.4 million
.
|
•
|
Forestar’s inventories totaled
$261.7 million
.
|
•
|
Financial services revenues
increased
9%
to
$94.9 million
.
|
•
|
Financial services pre-tax income was
$31.4 million
compared to
$32.2 million
.
|
•
|
Financial services pre-tax income as a percentage of financial services revenues was
33.1%
compared to
37.1%
.
|
•
|
Consolidated pre-tax income
increased
26%
to
$444.8 million
compared to
$353.9 million
.
|
•
|
Consolidated pre-tax income as a percentage of consolidated revenues
improved
to
11.7%
from
10.9%
.
|
•
|
Income tax expense was
$94.0 million
compared to
$124.7 million
.
|
•
|
Net income attributable to D.R. Horton
increased
53%
to
$351.0 million
compared to
$229.2 million
.
|
•
|
Diluted earnings per common share attributable to D.R. Horton
increased
52%
to
$0.91
compared to
$0.60
.
|
•
|
Stockholders’ equity was
$8.2 billion
compared to
$7.7 billion
and
$7.2 billion
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Book value per common share
increased
to $
21.72
compared to $
20.66
and $
19.23
at
September 30, 2017
and
March 31, 2017
, respectively.
|
•
|
Homebuilding revenues
increased
15%
to
$6.9 billion
.
|
•
|
Homes closed
increased
15%
to
23,069
homes, and the average closing price of those homes was
$297,200
.
|
•
|
Net sales orders
increased
14%
to
26,581
homes, and the value of net sales orders
increased
15%
to
$8.0 billion
.
|
•
|
Home sales gross margin
increased
100
basis points to
20.8%
.
|
•
|
Homebuilding SG&A expenses as a percentage of homebuilding revenues
decreased
by
30
basis points to
9.1%
.
|
•
|
Homebuilding pre-tax income
increased
28%
to
$789.8 million
compared to
$616.3 million
.
|
•
|
Homebuilding pre-tax income as a percentage of homebuilding revenues
improved
to
11.4%
from
10.3%
.
|
•
|
Forestar’s revenues were
$53.5 million
, which includes
$8.5 million
of lot sales to our homebuilding segment.
|
•
|
Forestar’s pre-tax income was
$8.7 million
which included pre-tax income of
$1.8 million
from lot sales to our homebuilding segment.
|
•
|
Financial services revenues
increased
7%
to
$176.0 million
.
|
•
|
Financial services pre-tax income was
$53.7 million
compared to
$58.8 million
.
|
•
|
Financial services pre-tax income as a percentage of financial services revenues was
30.5%
compared to
35.6%
.
|
•
|
Consolidated pre-tax income
increased
24%
to
$836.1 million
compared to
$672.1 million
.
|
•
|
Consolidated pre-tax income as a percentage of consolidated revenues
improved
to
11.7%
from
10.9%
.
|
•
|
Income tax expense was
$296.4 million
, which included a charge of
$108.7 million
during the three months ended December 31, 2017 as a result of the Tax Cuts and Jobs Act, compared to
$236.0 million
.
|
•
|
Net income attributable to D.R. Horton
increased
24%
to
$540.3 million
compared to
$436.1 million
.
|
•
|
Diluted earnings per common share attributable to D.R. Horton
increased
23%
to
$1.41
compared to
$1.15
.
|
•
|
Net cash used in operations was
$98.8 million
compared to
$135.7 million
.
|
State
|
|
Reporting Region/Market
|
|
State
|
|
Reporting Region/Market
|
|
|
|
|
|
|
|
|
|
East Region
|
|
|
|
South Central Region
|
Delaware
|
|
Central Delaware
|
|
Louisiana
|
|
Baton Rouge
|
|
|
Northern Delaware
|
|
|
|
Lafayette
|
Georgia
|
|
Savannah
|
|
Oklahoma
|
|
Oklahoma City
|
Maryland
|
|
Baltimore
|
|
Texas
|
|
Austin
|
|
|
Suburban Washington, D.C.
|
|
|
|
Dallas
|
New Jersey
|
|
North New Jersey
|
|
|
|
El Paso
|
|
|
South New Jersey
|
|
|
|
Fort Worth
|
North Carolina
|
|
Charlotte
|
|
|
|
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/Salem
|
|
|
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 March 31,
|
|||||||||||||||||||||||||||
|
|
Net Homes Sold
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
%
Change |
|
2018
|
|
2017
|
|
%
Change |
|
2018
|
|
2017
|
|
%
Change |
|||||||||||
East
|
|
1,991
|
|
1,791
|
|
11
|
%
|
|
$
|
566.8
|
|
|
$
|
513.1
|
|
|
10
|
%
|
|
$
|
284,700
|
|
|
$
|
286,500
|
|
|
(1
|
)%
|
Midwest
|
|
790
|
|
643
|
|
23
|
%
|
|
306.5
|
|
|
249.2
|
|
|
23
|
%
|
|
388,000
|
|
|
387,600
|
|
|
—
|
%
|
||||
Southeast
|
|
5,054
|
|
4,470
|
|
13
|
%
|
|
1,352.6
|
|
|
1,167.1
|
|
|
16
|
%
|
|
267,600
|
|
|
261,100
|
|
|
2
|
%
|
||||
South Central
|
|
4,788
|
|
4,329
|
|
11
|
%
|
|
1,200.5
|
|
|
1,071.5
|
|
|
12
|
%
|
|
250,700
|
|
|
247,500
|
|
|
1
|
%
|
||||
Southwest
|
|
889
|
|
745
|
|
19
|
%
|
|
211.7
|
|
|
172.8
|
|
|
23
|
%
|
|
238,100
|
|
|
231,900
|
|
|
3
|
%
|
||||
West
|
|
2,316
|
|
2,013
|
|
15
|
%
|
|
1,103.4
|
|
|
1,015.5
|
|
|
9
|
%
|
|
476,400
|
|
|
504,500
|
|
|
(6
|
)%
|
||||
|
|
15,828
|
|
13,991
|
|
13
|
%
|
|
$
|
4,741.5
|
|
|
$
|
4,189.2
|
|
|
13
|
%
|
|
$
|
299,600
|
|
|
$
|
299,400
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Six Months Ended March 31,
|
|||||||||||||||||||||||||||
|
|
Net Homes Sold
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
%
Change |
|
2018
|
|
2017
|
|
%
Change |
|
2018
|
|
2017
|
|
%
Change |
|||||||||||
East
|
|
3,421
|
|
2,937
|
|
16
|
%
|
|
$
|
965.3
|
|
|
$
|
844.1
|
|
|
14
|
%
|
|
$
|
282,200
|
|
|
$
|
287,400
|
|
|
(2
|
)%
|
Midwest
|
|
1,167
|
|
1,006
|
|
16
|
%
|
|
451.5
|
|
|
392.4
|
|
|
15
|
%
|
|
386,900
|
|
|
390,100
|
|
|
(1
|
)%
|
||||
Southeast
|
|
8,686
|
|
7,618
|
|
14
|
%
|
|
2,329.0
|
|
|
1,992.2
|
|
|
17
|
%
|
|
268,100
|
|
|
261,500
|
|
|
3
|
%
|
||||
South Central
|
|
7,814
|
|
7,167
|
|
9
|
%
|
|
1,961.2
|
|
|
1,782.6
|
|
|
10
|
%
|
|
251,000
|
|
|
248,700
|
|
|
1
|
%
|
||||
Southwest
|
|
1,590
|
|
1,203
|
|
32
|
%
|
|
376.8
|
|
|
279.5
|
|
|
35
|
%
|
|
237,000
|
|
|
232,300
|
|
|
2
|
%
|
||||
West
|
|
3,903
|
|
3,301
|
|
18
|
%
|
|
1,880.3
|
|
|
1,662.3
|
|
|
13
|
%
|
|
481,800
|
|
|
503,600
|
|
|
(4
|
)%
|
||||
|
|
26,581
|
|
23,232
|
|
14
|
%
|
|
$
|
7,964.1
|
|
|
$
|
6,953.1
|
|
|
15
|
%
|
|
$
|
299,600
|
|
|
$
|
299,300
|
|
|
—
|
%
|
|
|
Sales Order Cancellations
|
||||||||||||||||
|
|
Three Months Ended March 31,
|
||||||||||||||||
|
|
Cancelled Sales Orders
|
|
Value (In millions)
|
|
Cancellation Rate
(2)
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||
East
|
|
487
|
|
493
|
|
$
|
138.1
|
|
|
$
|
133.3
|
|
|
20
|
%
|
|
22
|
%
|
Midwest
|
|
70
|
|
70
|
|
26.2
|
|
|
27.5
|
|
|
8
|
%
|
|
10
|
%
|
||
Southeast
|
|
1,499
|
|
1,350
|
|
397.1
|
|
|
345.3
|
|
|
23
|
%
|
|
23
|
%
|
||
South Central
|
|
1,194
|
|
1,116
|
|
293.8
|
|
|
274.6
|
|
|
20
|
%
|
|
20
|
%
|
||
Southwest
|
|
244
|
|
194
|
|
56.1
|
|
|
44.4
|
|
|
22
|
%
|
|
21
|
%
|
||
West
|
|
326
|
|
290
|
|
148.8
|
|
|
147.5
|
|
|
12
|
%
|
|
13
|
%
|
||
|
|
3,820
|
|
3,513
|
|
$
|
1,060.1
|
|
|
$
|
972.6
|
|
|
19
|
%
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended March 31,
|
||||||||||||||||
|
|
Cancelled Sales Orders
|
|
Value (In millions)
|
|
Cancellation Rate
(2)
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||
East
|
|
877
|
|
847
|
|
$
|
249.3
|
|
|
$
|
229.9
|
|
|
20
|
%
|
|
22
|
%
|
Midwest
|
|
122
|
|
126
|
|
47.0
|
|
|
48.7
|
|
|
9
|
%
|
|
11
|
%
|
||
Southeast
|
|
2,620
|
|
2,300
|
|
691.6
|
|
|
585.9
|
|
|
23
|
%
|
|
23
|
%
|
||
South Central
|
|
2,127
|
|
1,937
|
|
525.0
|
|
|
482.6
|
|
|
21
|
%
|
|
21
|
%
|
||
Southwest
|
|
452
|
|
356
|
|
103.9
|
|
|
82.3
|
|
|
22
|
%
|
|
23
|
%
|
||
West
|
|
604
|
|
535
|
|
284.7
|
|
|
266.9
|
|
|
13
|
%
|
|
14
|
%
|
||
|
|
6,802
|
|
6,101
|
|
$
|
1,901.5
|
|
|
$
|
1,696.3
|
|
|
20
|
%
|
|
21
|
%
|
(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 March 31,
|
|||||||||||||||||||||||||||
|
|
Homes in Backlog
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|||||||||||
East
|
|
2,046
|
|
1,876
|
|
9
|
%
|
|
$
|
589.7
|
|
|
$
|
548.7
|
|
|
7
|
%
|
|
$
|
288,200
|
|
|
$
|
292,500
|
|
|
(1
|
)%
|
Midwest
|
|
664
|
|
647
|
|
3
|
%
|
|
258.9
|
|
|
258.8
|
|
|
—
|
%
|
|
389,900
|
|
|
400,000
|
|
|
(3
|
)%
|
||||
Southeast
|
|
5,064
|
|
4,639
|
|
9
|
%
|
|
1,404.2
|
|
|
1,262.7
|
|
|
11
|
%
|
|
277,300
|
|
|
272,200
|
|
|
2
|
%
|
||||
South Central
|
|
4,956
|
|
4,850
|
|
2
|
%
|
|
1,257.8
|
|
|
1,247.1
|
|
|
1
|
%
|
|
253,800
|
|
|
257,100
|
|
|
(1
|
)%
|
||||
Southwest
|
|
1,028
|
|
871
|
|
18
|
%
|
|
244.8
|
|
|
198.8
|
|
|
23
|
%
|
|
238,100
|
|
|
228,200
|
|
|
4
|
%
|
||||
West
|
|
2,083
|
|
1,735
|
|
20
|
%
|
|
1,078.1
|
|
|
919.2
|
|
|
17
|
%
|
|
517,600
|
|
|
529,800
|
|
|
(2
|
)%
|
||||
|
|
15,841
|
|
14,618
|
|
8
|
%
|
|
$
|
4,833.5
|
|
|
$
|
4,435.3
|
|
|
9
|
%
|
|
$
|
305,100
|
|
|
$
|
303,400
|
|
|
1
|
%
|
|
|
Homes Closed and Home Sales Revenue
|
|||||||||||||||||||||||||||
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|||||||||||
East
|
|
1,531
|
|
1,309
|
|
17
|
%
|
|
$
|
435.4
|
|
|
$
|
372.6
|
|
|
17
|
%
|
|
$
|
284,400
|
|
|
$
|
284,600
|
|
|
—
|
%
|
Midwest
|
|
514
|
|
430
|
|
20
|
%
|
|
203.6
|
|
|
168.0
|
|
|
21
|
%
|
|
396,100
|
|
|
390,700
|
|
|
1
|
%
|
||||
Southeast
|
|
3,935
|
|
3,695
|
|
6
|
%
|
|
1,041.0
|
|
|
968.7
|
|
|
7
|
%
|
|
264,500
|
|
|
262,200
|
|
|
1
|
%
|
||||
South Central
|
|
3,636
|
|
3,254
|
|
12
|
%
|
|
913.3
|
|
|
815.0
|
|
|
12
|
%
|
|
251,200
|
|
|
250,500
|
|
|
—
|
%
|
||||
Southwest
|
|
713
|
|
532
|
|
34
|
%
|
|
168.8
|
|
|
126.7
|
|
|
33
|
%
|
|
236,700
|
|
|
238,200
|
|
|
(1
|
)%
|
||||
West
|
|
1,952
|
|
1,465
|
|
33
|
%
|
|
910.0
|
|
|
707.1
|
|
|
29
|
%
|
|
466,200
|
|
|
482,700
|
|
|
(3
|
)%
|
||||
|
|
12,281
|
|
10,685
|
|
15
|
%
|
|
$
|
3,672.1
|
|
|
$
|
3,158.1
|
|
|
16
|
%
|
|
$
|
299,000
|
|
|
$
|
295,600
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Six Months Ended March 31,
|
|||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
|||||||||||
East
|
|
2,919
|
|
2,362
|
|
24
|
%
|
|
$
|
828.4
|
|
|
$
|
678.4
|
|
|
22
|
%
|
|
$
|
283,800
|
|
|
$
|
287,200
|
|
|
(1
|
)%
|
Midwest
|
|
922
|
|
829
|
|
11
|
%
|
|
365.0
|
|
|
317.6
|
|
|
15
|
%
|
|
395,900
|
|
|
383,100
|
|
|
3
|
%
|
||||
Southeast
|
|
7,679
|
|
7,032
|
|
9
|
%
|
|
2,029.7
|
|
|
1,851.2
|
|
|
10
|
%
|
|
264,300
|
|
|
263,300
|
|
|
—
|
%
|
||||
South Central
|
|
6,814
|
|
6,157
|
|
11
|
%
|
|
1,721.6
|
|
|
1,553.6
|
|
|
11
|
%
|
|
252,700
|
|
|
252,300
|
|
|
—
|
%
|
||||
Southwest
|
|
1,405
|
|
987
|
|
42
|
%
|
|
324.6
|
|
|
231.4
|
|
|
40
|
%
|
|
231,000
|
|
|
234,400
|
|
|
(1
|
)%
|
||||
West
|
|
3,330
|
|
2,722
|
|
22
|
%
|
|
1,587.3
|
|
|
1,323.6
|
|
|
20
|
%
|
|
476,700
|
|
|
486,300
|
|
|
(2
|
)%
|
||||
|
|
23,069
|
|
20,089
|
|
15
|
%
|
|
$
|
6,856.6
|
|
|
$
|
5,955.8
|
|
|
15
|
%
|
|
$
|
297,200
|
|
|
$
|
296,500
|
|
|
—
|
%
|
Homebuilding Operating Margin Analysis
|
||||||||||||
|
|
Percentages of Related Revenues
|
||||||||||
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Gross profit – home sales
|
|
20.8
|
%
|
|
19.8
|
%
|
|
20.8
|
%
|
|
19.8
|
%
|
Gross profit – land/lot sales and other
|
|
11.8
|
%
|
|
11.1
|
%
|
|
13.4
|
%
|
|
23.9
|
%
|
Inventory and land option charges
|
|
(0.8
|
)%
|
|
(0.4
|
)%
|
|
(0.5
|
)%
|
|
(0.2
|
)%
|
Gross profit – total homebuilding
|
|
20.0
|
%
|
|
19.4
|
%
|
|
20.3
|
%
|
|
19.6
|
%
|
Selling, general and administrative expense
|
|
8.8
|
%
|
|
9.3
|
%
|
|
9.1
|
%
|
|
9.4
|
%
|
Gain on sale of assets
|
|
—
|
%
|
|
—
|
%
|
|
(0.2
|
)%
|
|
—
|
%
|
Other (income) expense
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|
—
|
%
|
|
(0.1
|
)%
|
Homebuilding pre-tax income
|
|
11.3
|
%
|
|
10.2
|
%
|
|
11.4
|
%
|
|
10.3
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
East
|
|
$
|
435.8
|
|
|
$
|
46.7
|
|
|
10.7
|
%
|
|
$
|
372.6
|
|
|
$
|
25.9
|
|
|
7.0
|
%
|
Midwest
|
|
203.6
|
|
|
18.7
|
|
|
9.2
|
%
|
|
168.7
|
|
|
0.7
|
|
|
0.4
|
%
|
||||
Southeast
|
|
1,042.0
|
|
|
96.3
|
|
|
9.2
|
%
|
|
969.0
|
|
|
113.1
|
|
|
11.7
|
%
|
||||
South Central
|
|
919.0
|
|
|
120.5
|
|
|
13.1
|
%
|
|
815.4
|
|
|
105.8
|
|
|
13.0
|
%
|
||||
Southwest
|
|
172.1
|
|
|
22.0
|
|
|
12.8
|
%
|
|
126.7
|
|
|
7.2
|
|
|
5.7
|
%
|
||||
West
|
|
913.2
|
|
|
111.8
|
|
|
12.2
|
%
|
|
712.0
|
|
|
69.7
|
|
|
9.8
|
%
|
||||
|
|
$
|
3,685.7
|
|
|
$
|
416.0
|
|
|
11.3
|
%
|
|
$
|
3,164.4
|
|
|
$
|
322.4
|
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended March 31,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
East
|
|
$
|
828.9
|
|
|
$
|
91.7
|
|
|
11.1
|
%
|
|
$
|
678.6
|
|
|
$
|
52.2
|
|
|
7.7
|
%
|
Midwest
|
|
365.0
|
|
|
32.0
|
|
|
8.8
|
%
|
|
319.8
|
|
|
10.9
|
|
|
3.4
|
%
|
||||
Southeast
|
|
2,030.6
|
|
|
218.8
|
|
|
10.8
|
%
|
|
1,852.4
|
|
|
212.7
|
|
|
11.5
|
%
|
||||
South Central
|
|
1,727.8
|
|
|
222.0
|
|
|
12.8
|
%
|
|
1,572.3
|
|
|
202.3
|
|
|
12.9
|
%
|
||||
Southwest
|
|
328.5
|
|
|
36.7
|
|
|
11.2
|
%
|
|
235.2
|
|
|
11.2
|
|
|
4.8
|
%
|
||||
West
|
|
1,625.8
|
|
|
188.6
|
|
|
11.6
|
%
|
|
1,332.2
|
|
|
127.0
|
|
|
9.5
|
%
|
||||
|
|
$
|
6,906.6
|
|
|
$
|
789.8
|
|
|
11.4
|
%
|
|
$
|
5,990.5
|
|
|
$
|
616.3
|
|
|
10.3
|
%
|
(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 March 31, 2018
|
||||||||||||||||||
|
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
|
$
|
656.9
|
|
|
$
|
509.6
|
|
|
$
|
21.1
|
|
|
$
|
0.6
|
|
|
$
|
1,188.2
|
|
Midwest
|
371.1
|
|
|
172.3
|
|
|
1.8
|
|
|
0.4
|
|
|
545.6
|
|
|||||
Southeast
|
1,408.4
|
|
|
1,147.3
|
|
|
38.9
|
|
|
2.7
|
|
|
2,597.3
|
|
|||||
South Central
|
1,129.4
|
|
|
1,195.0
|
|
|
0.3
|
|
|
1.5
|
|
|
2,326.2
|
|
|||||
Southwest
|
212.9
|
|
|
322.4
|
|
|
1.6
|
|
|
—
|
|
|
536.9
|
|
|||||
West
|
1,223.1
|
|
|
1,139.8
|
|
|
20.9
|
|
|
32.1
|
|
|
2,415.9
|
|
|||||
Corporate and unallocated (1)
|
117.8
|
|
|
108.8
|
|
|
2.0
|
|
|
0.9
|
|
|
229.5
|
|
|||||
|
$
|
5,119.6
|
|
|
$
|
4,595.2
|
|
|
$
|
86.6
|
|
|
$
|
38.2
|
|
|
$
|
9,839.6
|
|
|
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 March 31, 2018
|
|||||||||
|
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
|
12,700
|
|
|
19,400
|
|
|
32,100
|
|
|
4,100
|
Midwest
|
2,600
|
|
|
5,900
|
|
|
8,500
|
|
|
1,600
|
Southeast
|
35,800
|
|
|
57,000
|
|
|
92,800
|
|
|
9,300
|
South Central
|
42,900
|
|
|
35,100
|
|
|
78,000
|
|
|
8,200
|
Southwest
|
8,500
|
|
|
3,900
|
|
|
12,400
|
|
|
1,800
|
West
|
21,700
|
|
|
12,200
|
|
|
33,900
|
|
|
4,400
|
|
124,200
|
|
|
133,500
|
|
|
257,700
|
|
|
29,400
|
|
48
|
%
|
|
52
|
%
|
|
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
34,500
and
33,200
owned lots that are fully developed and ready for home construction at
March 31, 2018
and
September 30, 2017
, respectively. Land/lots owned also include land held for development representing
3,400
and
4,800
lots at
March 31, 2018
and
September 30, 2017
, respectively.
|
(2)
|
The total remaining purchase price of lots controlled through land and lot option purchase contracts at
March 31, 2018
and
September 30, 2017
was
$5.1 billion
and
$4.6 billion
, respectively, secured by earnest money deposits of
$282.4 million
and
$227.6 million
, respectively. The total remaining purchase price of lots controlled at
March 31, 2018
includes
$251.1 million
related to lot option contracts with Forestar, secured by
$21.4 million
of earnest money on deposit with Forestar and
$2.0 million
on deposit at a title company.
|
(3)
|
Lots controlled at
March 31, 2018
include approximately
8,700
lots owned or controlled by Forestar,
3,300
of which our homebuilding divisions have under contract to purchase and
5,400
of which our homebuilding divisions have a right of first offer to purchase. Of these, approximately
3,800
lots were in our Southeast region,
2,700
lots were in our South Central region,
1,000
lots were in our East region,
1,000
lots were in our West region and
200
lots were in our Southwest region.
|
(4)
|
Homes in inventory include approximately
1,700
and
1,600
model homes at
March 31, 2018
and
September 30, 2017
, respectively. Approximately
14,200
and
13,800
of our homes in inventory were unsold at
March 31, 2018
and
September 30, 2017
, respectively. At
March 31, 2018
, approximately
3,800
of our unsold homes were completed, of which approximately
500
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.
|
|
Three Months Ended
March 31, 2018 |
|
For the Period from October 5, 2017 to
March 31, 2018 |
||||
|
(In millions)
|
||||||
Residential land and lot sales
|
$
|
20.6
|
|
|
$
|
44.4
|
|
Commercial lot sales
|
2.0
|
|
|
9.1
|
|
||
Total revenues
|
$
|
22.6
|
|
|
$
|
53.5
|
|
Cost of sales
|
16.2
|
|
|
35.5
|
|
||
Selling, general and administrative expense
|
5.6
|
|
|
19.1
|
|
||
Equity in earnings of unconsolidated entities
|
(1.5
|
)
|
|
(9.1
|
)
|
||
Gain on sale of assets
|
(2.7
|
)
|
|
(2.7
|
)
|
||
Interest expense
|
2.1
|
|
|
4.2
|
|
||
Other (income) expense
|
(1.7
|
)
|
|
(2.2
|
)
|
||
Income before income taxes
|
$
|
4.6
|
|
|
$
|
8.7
|
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||
Number of first-lien loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
7,046
|
|
|
6,046
|
|
|
17
|
%
|
|
13,060
|
|
|
11,374
|
|
|
15
|
%
|
Number of homes closed by D.R. Horton
|
|
12,281
|
|
|
10,685
|
|
|
15
|
%
|
|
23,069
|
|
|
20,089
|
|
|
15
|
%
|
Percentage of D.R. Horton homes financed by DHI Mortgage
|
|
57
|
%
|
|
57
|
%
|
|
|
|
57
|
%
|
|
57
|
%
|
|
|
||
Number of total loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
7,081
|
|
|
6,096
|
|
|
16
|
%
|
|
13,127
|
|
|
11,454
|
|
|
15
|
%
|
Total number of loans originated or brokered by DHI Mortgage
|
|
7,278
|
|
|
6,364
|
|
|
14
|
%
|
|
13,566
|
|
|
12,142
|
|
|
12
|
%
|
Captive business percentage
|
|
97
|
%
|
|
96
|
%
|
|
|
|
97
|
%
|
|
94
|
%
|
|
|
||
Loans sold by DHI Mortgage to third parties
|
|
6,758
|
|
|
6,174
|
|
|
9
|
%
|
|
13,100
|
|
|
12,367
|
|
|
6
|
%
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
Loan origination fees
|
|
$
|
3.8
|
|
|
$
|
4.4
|
|
|
(14
|
)%
|
|
$
|
7.3
|
|
|
$
|
8.2
|
|
|
(11
|
)%
|
Sale of servicing rights and gains from sale of mortgage loans
|
|
68.8
|
|
|
63.5
|
|
|
8
|
%
|
|
125.7
|
|
|
120.9
|
|
|
4
|
%
|
||||
Other revenues
|
|
4.5
|
|
|
3.9
|
|
|
15
|
%
|
|
8.6
|
|
|
7.4
|
|
|
16
|
%
|
||||
Total mortgage operations revenues
|
|
77.1
|
|
|
71.8
|
|
|
7
|
%
|
|
141.6
|
|
|
136.5
|
|
|
4
|
%
|
||||
Title policy premiums
|
|
17.8
|
|
|
15.1
|
|
|
18
|
%
|
|
34.4
|
|
|
28.5
|
|
|
21
|
%
|
||||
Total revenues
|
|
94.9
|
|
|
86.9
|
|
|
9
|
%
|
|
176.0
|
|
|
165.0
|
|
|
7
|
%
|
||||
General and administrative expense (1)
|
|
66.7
|
|
|
58.2
|
|
|
15
|
%
|
|
128.4
|
|
|
112.9
|
|
|
14
|
%
|
||||
Interest and other (income) expense (1)
|
|
(3.2
|
)
|
|
(3.5
|
)
|
|
(9
|
)%
|
|
(6.1
|
)
|
|
(6.7
|
)
|
|
(9
|
)%
|
||||
Financial services pre-tax income
|
|
$
|
31.4
|
|
|
$
|
32.2
|
|
|
(2
|
)%
|
|
$
|
53.7
|
|
|
$
|
58.8
|
|
|
(9
|
)%
|
|
|
Percentages of
Financial Services Revenues
|
||||||||||
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
General and administrative expense (1)
|
|
70.3
|
%
|
|
67.0
|
%
|
|
73.0
|
%
|
|
68.4
|
%
|
Interest and other (income) expense (1)
|
|
(3.4
|
)%
|
|
(4.0
|
)%
|
|
(3.5
|
)%
|
|
(4.1
|
)%
|
Financial services pre-tax income
|
|
33.1
|
%
|
|
37.1
|
%
|
|
30.5
|
%
|
|
35.6
|
%
|
(1)
|
General and administrative expense of
$2.5 million
and interest and other income of
$1.8 million
related to our other business activities were excluded from prior year amounts to conform to the current year presentation.
|
•
|
the cyclical nature of the homebuilding industry and changes in economic, real estate and other conditions;
|
•
|
constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital;
|
•
|
reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates;
|
•
|
the risks associated with our land and lot inventory;
|
•
|
our ability to effect our growth strategies, acquisitions or investments successfully;
|
•
|
home warranty and construction defect claims;
|
•
|
the effects of a health and safety incident;
|
•
|
the effects of negative publicity;
|
•
|
supply shortages and other risks of acquiring land, building materials and skilled labor;
|
•
|
the impact of an inflationary, deflationary or higher interest rate environment;
|
•
|
reductions in the availability of performance bonds;
|
•
|
increases in the costs of owning a home;
|
•
|
the effects of governmental regulations and environmental matters on our homebuilding operations;
|
•
|
the effects of governmental regulations on our financial services operations;
|
•
|
our significant debt and our ability to comply with related debt covenants, restrictions and limitations;
|
•
|
competitive conditions within the homebuilding and financial services industries;
|
•
|
the effects of the loss of key personnel; and
|
•
|
information technology failures and data security breaches.
|
|
|
Six Months
Ending September 30, 2018 |
|
Fiscal Year Ending September 30,
|
|
Fair Value at March 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
|
||||||||||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed rate
|
|
$
|
7.2
|
|
|
$
|
500.8
|
|
|
$
|
619.3
|
|
|
$
|
400.0
|
|
|
$
|
350.0
|
|
|
$
|
700.0
|
|
|
$
|
—
|
|
|
$
|
2,577.3
|
|
|
$
|
2,650.7
|
|
Average interest rate
|
|
4.1
|
%
|
|
3.9
|
%
|
|
4.0
|
%
|
|
2.8
|
%
|
|
4.5
|
%
|
|
5.5
|
%
|
|
—
|
%
|
|
4.3
|
%
|
|
|
||||||||||
Variable rate
|
|
$
|
490.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
175.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
665.3
|
|
|
$
|
665.3
|
|
Average interest rate
|
|
3.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
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)
|
||||||
January 1, 2018 - January 31, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
174.6
|
|
February 1, 2018 - February 28, 2018
|
500,000
|
|
|
44.99
|
|
|
500,000
|
|
|
152.1
|
|
||
March 1, 2018 - March 31, 2018
|
—
|
|
|
—
|
|
|
—
|
|
|
152.1
|
|
||
Total
|
500,000
|
|
|
$
|
44.99
|
|
|
500,000
|
|
|
$
|
152.1
|
|
(a)
|
Exhibits.
|
||
|
2.1
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
10.1
|
|
|
|
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 March 31, 2018, filed on April 30, 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 10.1 to the Company’s Current Report on Form 8-K dated February 23, 2018, filed with the SEC on February 28, 2018.
|
|
|
|
D.R. HORTON, INC.
|
Date:
|
April 30, 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)
|
|
|
Six Months Ended
March 31, 2018 |
|
For the Fiscal Year Ended September 30,
|
||||||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||
Consolidated income before income taxes
|
|
$
|
836.1
|
|
|
$
|
1,602.1
|
|
|
$
|
1,353.5
|
|
|
$
|
1,123.4
|
|
|
$
|
814.2
|
|
|
$
|
657.8
|
|
Distributions in excess of earnings of equity method investees
|
|
12.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of capitalized interest
|
|
60.6
|
|
|
152.6
|
|
|
169.1
|
|
|
159.7
|
|
|
124.4
|
|
|
110.9
|
|
||||||
Interest expensed
|
|
3.1
|
|
|
6.6
|
|
|
6.2
|
|
|
5.6
|
|
|
4.8
|
|
|
11.7
|
|
||||||
Earnings
|
|
$
|
912.5
|
|
|
$
|
1,761.3
|
|
|
$
|
1,528.8
|
|
|
$
|
1,288.7
|
|
|
$
|
943.4
|
|
|
$
|
780.4
|
|
Interest incurred
|
|
$
|
66.0
|
|
|
$
|
135.9
|
|
|
$
|
158.5
|
|
|
$
|
174.8
|
|
|
$
|
190.6
|
|
|
$
|
177.3
|
|
Fixed charges
|
|
$
|
66.0
|
|
|
$
|
135.9
|
|
|
$
|
158.5
|
|
|
$
|
174.8
|
|
|
$
|
190.6
|
|
|
$
|
177.3
|
|
Ratio of earnings to fixed charges
|
|
13.83
|
|
|
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:
|
|
April 30, 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:
|
|
April 30, 2018
|
|
|
/s/ B
ILL
W. W
HEAT
|
|
|
|
By:
|
|
Bill W. Wheat
Executive Vice President and
Chief Financial Officer
|