|
(Mark One)
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
75-2386963
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
Large accelerated filer
|
ý
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
|
(In millions)
(Unaudited) |
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
864.2
|
|
|
$
|
1,473.1
|
|
Restricted cash
|
21.1
|
|
|
32.9
|
|
||
Total cash, cash equivalents and restricted cash
|
885.3
|
|
|
1,506.0
|
|
||
Inventories:
|
|
|
|
||||
Construction in progress and finished homes
|
5,722.6
|
|
|
5,086.3
|
|
||
Residential land and lots — developed and under development
|
5,811.4
|
|
|
5,172.4
|
|
||
Land held for development
|
125.7
|
|
|
96.1
|
|
||
Land held for sale
|
42.6
|
|
|
40.2
|
|
||
Total inventory
|
11,702.3
|
|
|
10,395.0
|
|
||
Mortgage loans held for sale
|
954.9
|
|
|
796.4
|
|
||
Deferred income taxes, net of valuation allowance of $16.6 million and $17.7 million
at June 30, 2019 and September 30, 2018, respectively
|
173.9
|
|
|
194.0
|
|
||
Property and equipment, net
|
454.2
|
|
|
401.1
|
|
||
Other assets
|
889.9
|
|
|
712.9
|
|
||
Goodwill
|
163.5
|
|
|
109.2
|
|
||
Total assets
|
$
|
15,224.0
|
|
|
$
|
14,114.6
|
|
LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
681.2
|
|
|
$
|
624.7
|
|
Accrued expenses and other liabilities
|
1,277.5
|
|
|
1,127.5
|
|
||
Notes payable
|
3,450.6
|
|
|
3,203.5
|
|
||
Total liabilities
|
5,409.3
|
|
|
4,955.7
|
|
||
Commitments and contingencies (Note K)
|
|
|
|
|
|
||
EQUITY
|
|
|
|
||||
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 391,365,282 shares issued
and 369,748,212 shares outstanding at June 30, 2019 and 388,120,243 shares issued
and 376,261,635 shares outstanding at September 30, 2018
|
3.9
|
|
|
3.9
|
|
||
Additional paid-in capital
|
3,146.0
|
|
|
3,085.0
|
|
||
Retained earnings
|
7,190.4
|
|
|
6,217.9
|
|
||
Treasury stock, 21,617,070 shares and 11,858,608 shares at June 30, 2019
and September 30, 2018, respectively, at cost
|
(697.9
|
)
|
|
(322.4
|
)
|
||
Stockholders’ equity
|
9,642.4
|
|
|
8,984.4
|
|
||
Noncontrolling interests
|
172.3
|
|
|
174.5
|
|
||
Total equity
|
9,814.7
|
|
|
9,158.9
|
|
||
Total liabilities and equity
|
$
|
15,224.0
|
|
|
$
|
14,114.6
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In millions, except per share data)
(Unaudited) |
||||||||||||||
Revenues
|
$
|
4,906.3
|
|
|
$
|
4,435.3
|
|
|
$
|
12,554.0
|
|
|
$
|
11,562.9
|
|
Cost of sales
|
3,831.6
|
|
|
3,397.2
|
|
|
9,839.4
|
|
|
8,939.0
|
|
||||
Selling, general and administrative expense
|
480.0
|
|
|
434.9
|
|
|
1,327.0
|
|
|
1,219.9
|
|
||||
Gain on sale of assets
|
(22.6
|
)
|
|
—
|
|
|
(53.9
|
)
|
|
(14.5
|
)
|
||||
Other (income) expense
|
(9.4
|
)
|
|
(13.0
|
)
|
|
(23.7
|
)
|
|
(33.8
|
)
|
||||
Income before income taxes
|
626.7
|
|
|
616.2
|
|
|
1,465.2
|
|
|
1,452.3
|
|
||||
Income tax expense
|
153.1
|
|
|
162.5
|
|
|
350.5
|
|
|
458.9
|
|
||||
Net income
|
473.6
|
|
|
453.7
|
|
|
1,114.7
|
|
|
993.4
|
|
||||
Net income (loss) attributable to noncontrolling interests
|
(1.2
|
)
|
|
(0.1
|
)
|
|
1.5
|
|
|
(0.7
|
)
|
||||
Net income attributable to D.R. Horton, Inc.
|
$
|
474.8
|
|
|
$
|
453.8
|
|
|
$
|
1,113.2
|
|
|
$
|
994.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per common share attributable to D.R. Horton, Inc.
|
$
|
1.28
|
|
|
$
|
1.20
|
|
|
$
|
2.98
|
|
|
$
|
2.64
|
|
Weighted average number of common shares
|
372.3
|
|
|
377.4
|
|
|
373.5
|
|
|
376.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share attributable to D.R. Horton, Inc.
|
$
|
1.26
|
|
|
$
|
1.18
|
|
|
$
|
2.94
|
|
|
$
|
2.59
|
|
Adjusted weighted average number of common shares
|
376.9
|
|
|
383.4
|
|
|
378.2
|
|
|
383.6
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Non-controlling
Interests
|
|
Total
Equity
|
||||||||||||
|
(In millions, except common stock share data)
(Unaudited)
|
||||||||||||||||||||||
Balances at September 30, 2018 (376,261,635 shares)
|
$
|
3.9
|
|
|
$
|
3,085.0
|
|
|
$
|
6,217.9
|
|
|
$
|
(322.4
|
)
|
|
$
|
174.5
|
|
|
$
|
9,158.9
|
|
Cumulative effect of adoption of ASC 606 (see Note A)
|
—
|
|
|
—
|
|
|
27.1
|
|
|
—
|
|
|
—
|
|
|
27.1
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
287.2
|
|
|
—
|
|
|
(0.5
|
)
|
|
286.7
|
|
||||||
Exercise of stock options (806,817 shares)
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
||||||
Stock issued under employee benefit plans (273,608 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash paid for shares withheld for taxes
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
18.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.1
|
|
||||||
Cash dividends declared ($0.15 per share)
|
—
|
|
|
—
|
|
|
(56.0
|
)
|
|
—
|
|
|
—
|
|
|
(56.0
|
)
|
||||||
Repurchases of common stock (4,100,000 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(140.6
|
)
|
|
—
|
|
|
(140.6
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||||
Balances at December 31, 2018 (373,242,060 shares)
|
$
|
3.9
|
|
|
$
|
3,107.6
|
|
|
$
|
6,476.2
|
|
|
$
|
(463.0
|
)
|
|
$
|
173.5
|
|
|
$
|
9,298.2
|
|
Net income
|
—
|
|
|
—
|
|
|
351.3
|
|
|
—
|
|
|
3.1
|
|
|
354.4
|
|
||||||
Exercise of stock options (831,489 shares)
|
—
|
|
|
11.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.4
|
|
||||||
Stock issued under employee benefit plans (1,059,415 shares)
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
2.3
|
|
||||||
Cash paid for shares withheld for taxes
|
—
|
|
|
(15.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.4
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
17.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.8
|
|
||||||
Cash dividends declared ($0.15 per share)
|
—
|
|
|
—
|
|
|
(55.9
|
)
|
|
—
|
|
|
—
|
|
|
(55.9
|
)
|
||||||
Repurchases of common stock (2,000,000 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(75.6
|
)
|
|
—
|
|
|
(75.6
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
||||||
Balances at March 31, 2019 (373,132,964 shares)
|
$
|
3.9
|
|
|
$
|
3,123.4
|
|
|
$
|
6,771.6
|
|
|
$
|
(538.6
|
)
|
|
$
|
173.7
|
|
|
$
|
9,534.0
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
474.8
|
|
|
—
|
|
|
(1.2
|
)
|
|
473.6
|
|
||||||
Exercise of stock options (271,186 shares)
|
—
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
||||||
Stock issued under employee benefit plans (2,524 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
18.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.0
|
|
||||||
Cash dividends declared ($0.15 per share)
|
—
|
|
|
—
|
|
|
(56.0
|
)
|
|
—
|
|
|
—
|
|
|
(56.0
|
)
|
||||||
Repurchases of common stock (3,658,462 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(159.3
|
)
|
|
—
|
|
|
(159.3
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||
Balances at June 30, 2019 (369,748,212 shares)
|
$
|
3.9
|
|
|
$
|
3,146.0
|
|
|
$
|
7,190.4
|
|
|
$
|
(697.9
|
)
|
|
$
|
172.3
|
|
|
$
|
9,814.7
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Non-controlling
Interests
|
|
Total
Equity
|
||||||||||||
|
(In millions, except common stock share data)
(Unaudited)
|
||||||||||||||||||||||
Balances at September 30, 2017 (374,986,079 shares)
|
$
|
3.8
|
|
|
$
|
2,992.2
|
|
|
$
|
4,946.0
|
|
|
$
|
(194.9
|
)
|
|
$
|
0.5
|
|
|
$
|
7,747.6
|
|
Noncontrolling interests acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175.2
|
|
|
175.2
|
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
189.3
|
|
|
—
|
|
|
(0.5
|
)
|
|
188.8
|
|
||||||
Exercise of stock options (916,913 shares)
|
0.1
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
||||||
Stock issued under employee benefit plans (290,974 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash paid for shares withheld for taxes
|
—
|
|
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
13.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.6
|
|
||||||
Cash dividends declared ($0.125 per share)
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
||||||
Repurchases of common stock (500,000 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.4
|
)
|
|
—
|
|
|
(25.4
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
(1.8
|
)
|
||||||
Balances at December 31, 2017 (375,693,966 shares)
|
$
|
3.9
|
|
|
$
|
3,010.2
|
|
|
$
|
5,088.2
|
|
|
$
|
(220.3
|
)
|
|
$
|
173.4
|
|
|
$
|
8,055.4
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
351.0
|
|
|
—
|
|
|
(0.2
|
)
|
|
350.8
|
|
||||||
Exercise of stock options (1,046,210 shares)
|
—
|
|
|
16.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.3
|
|
||||||
Stock issued under employee benefit plans (1,169,341 shares)
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
||||||
Cash dividends declared ($0.125 per share)
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
||||||
Repurchases of common stock (500,000 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.5
|
)
|
|
—
|
|
|
(22.5
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||
Balances at March 31, 2018 (377,409,517 shares)
|
$
|
3.9
|
|
|
$
|
3,045.7
|
|
|
$
|
5,392.1
|
|
|
$
|
(242.8
|
)
|
|
$
|
173.0
|
|
|
$
|
8,371.9
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
453.8
|
|
|
—
|
|
|
(0.1
|
)
|
|
453.7
|
|
||||||
Exercise of stock options (185,389 shares)
|
—
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
||||||
Stock issued under employee benefit plans (6,796 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
15.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.3
|
|
||||||
Cash dividends declared ($0.125 per share)
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
|
—
|
|
|
—
|
|
|
(47.1
|
)
|
||||||
Repurchases of common stock (608,537 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.0
|
)
|
|
—
|
|
|
(27.0
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||||
Balances at June 30, 2018 (376,993,165 shares)
|
$
|
3.9
|
|
|
$
|
3,064.4
|
|
|
$
|
5,798.8
|
|
|
$
|
(269.8
|
)
|
|
$
|
172.6
|
|
|
$
|
8,769.9
|
|
|
Nine Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
(Unaudited) |
||||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
1,114.7
|
|
|
$
|
993.4
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
52.4
|
|
|
46.6
|
|
||
Amortization of discounts and fees
|
8.1
|
|
|
6.3
|
|
||
Stock-based compensation expense
|
53.9
|
|
|
46.3
|
|
||
Equity in earnings of unconsolidated entities
|
(0.5
|
)
|
|
(3.1
|
)
|
||
Distributions of earnings of unconsolidated entities
|
0.5
|
|
|
0.2
|
|
||
Deferred income taxes
|
11.7
|
|
|
160.3
|
|
||
Inventory and land option charges
|
41.0
|
|
|
42.8
|
|
||
Gain on sale of assets
|
(53.9
|
)
|
|
(14.5
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Increase in construction in progress and finished homes
|
(393.0
|
)
|
|
(590.6
|
)
|
||
Increase in residential land and lots –
developed, under development, held for development and held for sale
|
(606.2
|
)
|
|
(359.8
|
)
|
||
Increase in other assets
|
(138.1
|
)
|
|
(34.6
|
)
|
||
Increase in mortgage loans held for sale
|
(158.5
|
)
|
|
(92.4
|
)
|
||
Increase in accounts payable, accrued expenses and other liabilities
|
148.6
|
|
|
105.6
|
|
||
Net cash provided by operating activities
|
80.7
|
|
|
306.5
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Expenditures for property and equipment
|
(105.3
|
)
|
|
(54.0
|
)
|
||
Proceeds from sale of assets
|
143.8
|
|
|
261.1
|
|
||
Expenditures related to multi-family rental properties
|
(56.3
|
)
|
|
(56.1
|
)
|
||
Return of investment in unconsolidated entities
|
4.4
|
|
|
15.4
|
|
||
Net principal increase of other mortgage loans and real estate owned
|
(2.0
|
)
|
|
(0.8
|
)
|
||
Payments related to business acquisitions, net of cash acquired
|
(310.9
|
)
|
|
(158.1
|
)
|
||
Net cash (used in) provided by investing activities
|
(326.3
|
)
|
|
7.5
|
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from notes payable
|
2,528.2
|
|
|
2,164.3
|
|
||
Repayment of notes payable
|
(2,536.1
|
)
|
|
(2,179.5
|
)
|
||
Advances on mortgage repurchase facility, net
|
158.8
|
|
|
106.3
|
|
||
Proceeds from stock associated with certain employee benefit plans
|
26.8
|
|
|
36.2
|
|
||
Cash paid for shares withheld for taxes
|
(19.5
|
)
|
|
(10.3
|
)
|
||
Cash dividends paid
|
(167.9
|
)
|
|
(141.3
|
)
|
||
Repurchases of common stock
|
(361.5
|
)
|
|
(74.9
|
)
|
||
Distributions to noncontrolling interests, net
|
(3.9
|
)
|
|
(2.2
|
)
|
||
Net cash used in financing activities
|
(375.1
|
)
|
|
(101.4
|
)
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(620.7
|
)
|
|
212.6
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
1,506.0
|
|
|
1,024.3
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
885.3
|
|
|
$
|
1,236.9
|
|
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
|
|
|
|
||||
Notes payable issued for inventory
|
$
|
83.6
|
|
|
$
|
—
|
|
Stock issued under employee incentive plans
|
$
|
49.1
|
|
|
$
|
63.7
|
|
Accrual for holdback payment related to acquisition
|
$
|
15.0
|
|
|
$
|
—
|
|
Repurchase of common stock not settled
|
$
|
14.0
|
|
|
$
|
—
|
|
Inventories
|
$
|
265.5
|
|
Other assets
|
23.3
|
|
|
Goodwill
|
54.3
|
|
|
Intangible assets
|
8.6
|
|
|
Other liabilities
|
(25.8
|
)
|
|
Net assets acquired
|
$
|
325.9
|
|
|
East:
|
|
Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia
|
|
Midwest:
|
|
Colorado, Illinois, Indiana, Iowa, Minnesota and Ohio
|
|
Southeast:
|
|
Alabama, Florida, Georgia, Mississippi and Tennessee
|
|
South Central:
|
|
Louisiana, Oklahoma and Texas
|
|
Southwest:
|
|
Arizona and New Mexico
|
|
West:
|
|
California, Hawaii, Nevada, Oregon, Utah and Washington
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
|
$
|
577.9
|
|
|
$
|
223.0
|
|
|
$
|
44.7
|
|
|
$
|
18.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
864.2
|
|
Restricted cash
|
|
9.8
|
|
|
0.2
|
|
|
11.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
|||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction in progress and finished homes
|
|
5,723.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
5,722.6
|
|
|||||||
Residential land and lots — developed and under development
|
|
4,847.4
|
|
|
988.7
|
|
|
—
|
|
|
—
|
|
|
(27.6
|
)
|
|
2.9
|
|
|
5,811.4
|
|
|||||||
Land held for development
|
|
64.9
|
|
|
60.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125.7
|
|
|||||||
Land held for sale
|
|
42.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.6
|
|
|||||||
|
|
10,678.4
|
|
|
1,049.5
|
|
|
—
|
|
|
—
|
|
|
(28.5
|
)
|
|
2.9
|
|
|
11,702.3
|
|
|||||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
954.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
954.9
|
|
|||||||
Deferred income taxes, net
|
|
154.4
|
|
|
21.0
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
(5.2
|
)
|
|
173.9
|
|
|||||||
Property and equipment, net
|
|
234.2
|
|
|
2.4
|
|
|
3.2
|
|
|
214.4
|
|
|
—
|
|
|
—
|
|
|
454.2
|
|
|||||||
Other assets
|
|
824.2
|
|
|
29.1
|
|
|
67.7
|
|
|
40.2
|
|
|
(83.0
|
)
|
|
11.7
|
|
|
889.9
|
|
|||||||
Goodwill
|
|
134.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.2
|
|
|
163.5
|
|
|||||||
|
|
$
|
12,613.2
|
|
|
$
|
1,325.2
|
|
|
$
|
1,081.6
|
|
|
$
|
273.2
|
|
|
$
|
(107.8
|
)
|
|
$
|
38.6
|
|
|
$
|
15,224.0
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable
|
|
$
|
640.6
|
|
|
$
|
19.5
|
|
|
$
|
18.4
|
|
|
$
|
3.4
|
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
$
|
681.2
|
|
Accrued expenses and other liabilities
|
|
1,155.8
|
|
|
151.5
|
|
|
56.9
|
|
|
19.7
|
|
|
(93.7
|
)
|
|
(12.7
|
)
|
|
1,277.5
|
|
|||||||
Notes payable
|
|
2,191.3
|
|
|
458.9
|
|
|
796.5
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
3,450.6
|
|
|||||||
|
|
$
|
3,987.7
|
|
|
$
|
629.9
|
|
|
$
|
871.8
|
|
|
$
|
23.1
|
|
|
$
|
(94.4
|
)
|
|
$
|
(8.8
|
)
|
|
$
|
5,409.3
|
|
(1)
|
Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
September 30, 2018
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
|
$
|
1,111.8
|
|
|
$
|
318.8
|
|
|
$
|
33.7
|
|
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,473.1
|
|
Restricted cash
|
|
8.6
|
|
|
16.2
|
|
|
8.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.9
|
|
|||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction in progress and finished homes
|
|
5,084.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
5,086.3
|
|
|||||||
Residential land and lots — developed and under development
|
|
4,689.3
|
|
|
463.1
|
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
|
27.2
|
|
|
5,172.4
|
|
|||||||
Land held for development
|
|
61.2
|
|
|
34.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96.1
|
|
|||||||
Land held for sale
|
|
40.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40.2
|
|
|||||||
|
|
9,875.1
|
|
|
498.0
|
|
|
—
|
|
|
—
|
|
|
(5.3
|
)
|
|
27.2
|
|
|
10,395.0
|
|
|||||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
796.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
796.4
|
|
|||||||
Deferred income taxes, net
|
|
176.5
|
|
|
26.9
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
(10.5
|
)
|
|
194.0
|
|
|||||||
Property and equipment, net
|
|
207.1
|
|
|
1.8
|
|
|
3.0
|
|
|
189.2
|
|
|
—
|
|
|
—
|
|
|
401.1
|
|
|||||||
Other assets
|
|
673.7
|
|
|
31.4
|
|
|
43.6
|
|
|
0.9
|
|
|
(48.6
|
)
|
|
11.9
|
|
|
712.9
|
|
|||||||
Goodwill
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.2
|
|
|
109.2
|
|
|||||||
|
|
$
|
12,132.8
|
|
|
$
|
893.1
|
|
|
$
|
884.8
|
|
|
$
|
198.9
|
|
|
$
|
(52.8
|
)
|
|
$
|
57.8
|
|
|
$
|
14,114.6
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable
|
|
$
|
612.4
|
|
|
$
|
11.2
|
|
|
$
|
0.2
|
|
|
$
|
4.2
|
|
|
$
|
(3.3
|
)
|
|
$
|
—
|
|
|
$
|
624.7
|
|
Accrued expenses and other liabilities
|
|
1,041.3
|
|
|
95.7
|
|
|
41.9
|
|
|
9.9
|
|
|
(46.1
|
)
|
|
(15.2
|
)
|
|
1,127.5
|
|
|||||||
Notes payable
|
|
2,445.9
|
|
|
111.7
|
|
|
637.7
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|
3,203.5
|
|
|||||||
|
|
$
|
4,099.6
|
|
|
$
|
218.6
|
|
|
$
|
679.8
|
|
|
$
|
14.1
|
|
|
$
|
(49.4
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
4,955.7
|
|
(1)
|
Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate balances of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
4,734.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,734.6
|
|
Land/lot sales and other
|
|
27.5
|
|
|
88.2
|
|
|
—
|
|
|
9.6
|
|
|
(73.2
|
)
|
|
—
|
|
|
52.1
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
119.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119.6
|
|
|||||||
|
|
4,762.1
|
|
|
88.2
|
|
|
119.6
|
|
|
9.6
|
|
|
(73.2
|
)
|
|
—
|
|
|
4,906.3
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales (5)
|
|
3,773.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
3,771.7
|
|
|||||||
Land/lot sales and other
|
|
23.2
|
|
|
75.3
|
|
|
—
|
|
|
—
|
|
|
(66.0
|
)
|
|
8.2
|
|
|
40.7
|
|
|||||||
Inventory and land option charges
|
|
19.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.2
|
|
|||||||
|
|
3,815.4
|
|
|
75.3
|
|
|
—
|
|
|
—
|
|
|
(67.3
|
)
|
|
8.2
|
|
|
3,831.6
|
|
|||||||
Selling, general and administrative expense
|
|
387.4
|
|
|
7.9
|
|
|
76.4
|
|
|
8.2
|
|
|
—
|
|
|
0.1
|
|
|
480.0
|
|
|||||||
Gain on sale of assets
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
(22.6
|
)
|
|
—
|
|
|
1.5
|
|
|
(22.6
|
)
|
|||||||
Other (income) expense
|
|
(2.5
|
)
|
|
(1.9
|
)
|
|
(4.9
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(9.4
|
)
|
|||||||
Income before income taxes
|
|
$
|
561.8
|
|
|
$
|
8.4
|
|
|
$
|
48.1
|
|
|
$
|
24.1
|
|
|
$
|
(5.9
|
)
|
|
$
|
(9.8
|
)
|
|
$
|
626.7
|
|
(1)
|
Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
(5)
|
Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
12,125.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,125.8
|
|
Land/lot sales and other
|
|
49.2
|
|
|
192.0
|
|
|
—
|
|
|
22.4
|
|
|
(141.8
|
)
|
|
—
|
|
|
121.8
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
306.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
306.4
|
|
|||||||
|
|
12,175.0
|
|
|
192.0
|
|
|
306.4
|
|
|
22.4
|
|
|
(141.8
|
)
|
|
—
|
|
|
12,554.0
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales (5)
|
|
9,716.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
9,713.4
|
|
|||||||
Land/lot sales and other
|
|
37.6
|
|
|
149.6
|
|
|
—
|
|
|
—
|
|
|
(122.2
|
)
|
|
20.0
|
|
|
85.0
|
|
|||||||
Inventory and land option charges
|
|
41.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41.0
|
|
|||||||
|
|
9,795.1
|
|
|
149.6
|
|
|
—
|
|
|
—
|
|
|
(125.3
|
)
|
|
20.0
|
|
|
9,839.4
|
|
|||||||
Selling, general and administrative expense
|
|
1,071.4
|
|
|
19.8
|
|
|
213.4
|
|
|
22.1
|
|
|
—
|
|
|
0.3
|
|
|
1,327.0
|
|
|||||||
Gain on sale of assets
|
|
(2.0
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
(51.9
|
)
|
|
—
|
|
|
2.4
|
|
|
(53.9
|
)
|
|||||||
Other (income) expense
|
|
(6.1
|
)
|
|
(4.6
|
)
|
|
(12.6
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(23.7
|
)
|
|||||||
Income before income taxes
|
|
$
|
1,316.6
|
|
|
$
|
29.6
|
|
|
$
|
105.6
|
|
|
$
|
52.6
|
|
|
$
|
(16.5
|
)
|
|
$
|
(22.7
|
)
|
|
$
|
1,465.2
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Depreciation and amortization
|
|
$
|
46.4
|
|
|
$
|
0.2
|
|
|
$
|
1.1
|
|
|
$
|
4.3
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
52.4
|
|
Cash provided by (used in) operating activities
|
|
$
|
605.7
|
|
|
$
|
(450.1
|
)
|
|
$
|
(65.5
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
(4.4
|
)
|
|
$
|
80.7
|
|
(1)
|
Results are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
(5)
|
Amount in the Eliminations column represents the profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
4,265.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,265.5
|
|
Land/lot sales and other
|
|
59.1
|
|
|
23.6
|
|
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
|
(1.2
|
)
|
|
72.7
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
97.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97.1
|
|
|||||||
|
|
4,324.6
|
|
|
23.6
|
|
|
97.1
|
|
|
—
|
|
|
(8.8
|
)
|
|
(1.2
|
)
|
|
4,435.3
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
3,332.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,332.8
|
|
|||||||
Land/lot sales and other
|
|
45.4
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
(5.6
|
)
|
|
5.7
|
|
|
55.5
|
|
|||||||
Inventory and land option charges
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|||||||
|
|
3,387.1
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
(5.6
|
)
|
|
5.7
|
|
|
3,397.2
|
|
|||||||
Selling, general and administrative expense
|
|
349.1
|
|
|
6.5
|
|
|
71.1
|
|
|
8.1
|
|
|
—
|
|
|
0.1
|
|
|
434.9
|
|
|||||||
Gain on sale of assets
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|||||||
Interest expense
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other (income) expense
|
|
(1.3
|
)
|
|
(3.7
|
)
|
|
(4.3
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
1.3
|
|
|
(13.0
|
)
|
|||||||
Income (loss) before income taxes
|
|
$
|
589.7
|
|
|
$
|
10.5
|
|
|
$
|
30.3
|
|
|
$
|
(3.1
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(9.6
|
)
|
|
$
|
616.2
|
|
(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 results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
Homebuilding
|
|
Forestar (1)
|
|
Financial Services
|
|
Other (2)
|
|
Eliminations (3)
|
|
Other Adjustments (4)
|
|
Consolidated
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
$
|
11,122.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,122.1
|
|
Land/lot sales and other
|
|
109.2
|
|
|
77.0
|
|
|
—
|
|
|
—
|
|
|
(17.3
|
)
|
|
(1.2
|
)
|
|
167.7
|
|
|||||||
Financial services
|
|
—
|
|
|
—
|
|
|
273.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
273.1
|
|
|||||||
|
|
11,231.3
|
|
|
77.0
|
|
|
273.1
|
|
|
—
|
|
|
(17.3
|
)
|
|
(1.2
|
)
|
|
11,562.9
|
|
|||||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home sales
|
|
8,761.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,761.7
|
|
|||||||
Land/lot sales and other
|
|
88.7
|
|
|
45.5
|
|
|
—
|
|
|
—
|
|
|
(12.3
|
)
|
|
12.6
|
|
|
134.5
|
|
|||||||
Inventory and land option charges
|
|
42.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.8
|
|
|||||||
|
|
8,893.2
|
|
|
45.5
|
|
|
—
|
|
|
—
|
|
|
(12.3
|
)
|
|
12.6
|
|
|
8,939.0
|
|
|||||||
Selling, general and administrative expense
|
|
976.6
|
|
|
25.6
|
|
|
199.6
|
|
|
17.8
|
|
|
—
|
|
|
0.3
|
|
|
1,219.9
|
|
|||||||
Gain on sale of assets
|
|
(13.4
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
(14.5
|
)
|
|||||||
Interest expense
|
|
—
|
|
|
5.8
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other (income) expense
|
|
(4.6
|
)
|
|
(15.0
|
)
|
|
(10.5
|
)
|
|
(11.4
|
)
|
|
—
|
|
|
7.7
|
|
|
(33.8
|
)
|
|||||||
Income (loss) before income taxes
|
|
$
|
1,379.5
|
|
|
$
|
19.1
|
|
|
$
|
84.0
|
|
|
$
|
(6.4
|
)
|
|
$
|
0.8
|
|
|
$
|
(24.7
|
)
|
|
$
|
1,452.3
|
|
Summary Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Depreciation and amortization
|
|
$
|
39.8
|
|
|
$
|
0.2
|
|
|
$
|
1.0
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
46.6
|
|
Cash provided by (used in) operating activities
|
|
$
|
565.2
|
|
|
$
|
(219.2
|
)
|
|
$
|
(27.0
|
)
|
|
$
|
(4.4
|
)
|
|
$
|
—
|
|
|
$
|
(8.1
|
)
|
|
$
|
306.5
|
|
(1)
|
Results are presented from the date of acquisition and on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance. All purchase accounting adjustments are included in the Other Adjustments column.
|
(2)
|
Amounts represent the aggregate results of certain subsidiaries that are immaterial for separate reporting.
|
(3)
|
Amounts represent the elimination of intercompany transactions and the reclassification of Forestar interest expense to inventory.
|
(4)
|
Amounts represent purchase accounting adjustments related to the Forestar acquisition.
|
Homebuilding Inventories by Reporting Segment (1)
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
|
|
(In millions)
|
||||||
East
|
|
$
|
1,300.8
|
|
|
$
|
1,192.0
|
|
Midwest
|
|
818.5
|
|
|
583.1
|
|
||
Southeast
|
|
2,733.1
|
|
|
2,668.7
|
|
||
South Central
|
|
2,660.5
|
|
|
2,439.4
|
|
||
Southwest
|
|
606.2
|
|
|
499.7
|
|
||
West
|
|
2,325.7
|
|
|
2,268.5
|
|
||
Corporate and unallocated (2)
|
|
233.6
|
|
|
223.7
|
|
||
|
|
$
|
10,678.4
|
|
|
$
|
9,875.1
|
|
(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
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
675.2
|
|
|
$
|
529.1
|
|
|
$
|
1,640.9
|
|
|
$
|
1,357.9
|
|
Midwest
|
|
303.3
|
|
|
256.7
|
|
|
800.5
|
|
|
621.7
|
|
||||
Southeast
|
|
1,388.1
|
|
|
1,263.3
|
|
|
3,607.2
|
|
|
3,293.9
|
|
||||
South Central
|
|
1,178.0
|
|
|
1,005.4
|
|
|
3,040.8
|
|
|
2,733.2
|
|
||||
Southwest
|
|
240.6
|
|
|
220.1
|
|
|
557.5
|
|
|
548.6
|
|
||||
West
|
|
976.9
|
|
|
1,050.0
|
|
|
2,528.1
|
|
|
2,676.0
|
|
||||
|
|
$
|
4,762.1
|
|
|
$
|
4,324.6
|
|
|
$
|
12,175.0
|
|
|
$
|
11,231.3
|
|
Inventory and Land Option Charges
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
0.6
|
|
|
$
|
0.3
|
|
|
$
|
2.3
|
|
|
$
|
0.9
|
|
Midwest
|
|
1.3
|
|
|
4.3
|
|
|
1.8
|
|
|
4.7
|
|
||||
Southeast
|
|
5.1
|
|
|
1.1
|
|
|
8.6
|
|
|
27.3
|
|
||||
South Central
|
|
3.0
|
|
|
1.5
|
|
|
4.9
|
|
|
3.5
|
|
||||
Southwest
|
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|
0.8
|
|
||||
West
|
|
8.9
|
|
|
1.7
|
|
|
22.9
|
|
|
5.6
|
|
||||
|
|
$
|
19.2
|
|
|
$
|
8.9
|
|
|
$
|
41.0
|
|
|
$
|
42.8
|
|
Income before Income Taxes (1)
|
|
|
|
|
|
|
|
|
||||||||
East
|
|
$
|
74.1
|
|
|
$
|
67.1
|
|
|
$
|
158.0
|
|
|
$
|
158.7
|
|
Midwest
|
|
18.7
|
|
|
23.0
|
|
|
38.8
|
|
|
55.0
|
|
||||
Southeast
|
|
168.4
|
|
|
156.1
|
|
|
411.6
|
|
|
374.9
|
|
||||
South Central
|
|
164.3
|
|
|
143.3
|
|
|
389.6
|
|
|
365.2
|
|
||||
Southwest
|
|
33.5
|
|
|
32.3
|
|
|
69.8
|
|
|
69.1
|
|
||||
West
|
|
102.8
|
|
|
167.9
|
|
|
248.8
|
|
|
356.6
|
|
||||
|
|
$
|
561.8
|
|
|
$
|
589.7
|
|
|
$
|
1,316.6
|
|
|
$
|
1,379.5
|
|
(1)
|
Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.
|
|
|
June 30, 2019
|
|
September 30,
2018 |
||||
|
|
(In millions)
|
||||||
Homebuilding:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
Revolving credit facility, maturing 2023
|
|
$
|
150.0
|
|
|
$
|
—
|
|
3.75% senior notes due 2019 (1)
|
|
—
|
|
|
499.6
|
|
||
4.0% senior notes due 2020 (1)
|
|
499.4
|
|
|
498.8
|
|
||
2.55% senior notes due 2020 (1)
|
|
398.6
|
|
|
397.9
|
|
||
4.375% senior notes due 2022 (1)
|
|
348.7
|
|
|
348.4
|
|
||
4.75% senior notes due 2023 (1)
|
|
298.9
|
|
|
298.7
|
|
||
5.75% senior notes due 2023 (1)
|
|
398.2
|
|
|
398.0
|
|
||
Other secured notes
|
|
97.5
|
|
|
4.5
|
|
||
|
|
2,191.3
|
|
|
2,445.9
|
|
||
Forestar:
|
|
|
|
|
||||
Unsecured:
|
|
|
|
|
||||
Revolving credit facility, maturing 2021
|
|
—
|
|
|
—
|
|
||
3.75% convertible senior notes due 2020 (2)
|
|
119.3
|
|
|
119.9
|
|
||
8.0% senior notes due 2024 (3)
|
|
343.5
|
|
|
—
|
|
||
|
|
462.8
|
|
|
119.9
|
|
||
Financial Services:
|
|
|
|
|
||||
Mortgage repurchase facility, maturing 2020
|
|
796.5
|
|
|
637.7
|
|
||
|
|
$
|
3,450.6
|
|
|
$
|
3,203.5
|
|
(1)
|
Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $6.1 million and $8.5 million at June 30, 2019 and September 30, 2018, respectively.
|
(2)
|
Forestar’s 3.75% convertible senior notes due 2020 include an unamortized fair value adjustment of $3.9 million and $8.2 million at June 30, 2019 and September 30, 2018, respectively.
|
(3)
|
Debt issuance costs that were deducted from the carrying amount of Forestar’s 8.0% senior notes totaled $6.5 million at June 30, 2019.
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Capitalized interest, beginning of period
|
|
$
|
173.9
|
|
|
$
|
170.1
|
|
|
$
|
162.7
|
|
|
$
|
167.9
|
|
Interest incurred (1)
|
|
38.1
|
|
|
31.0
|
|
|
104.8
|
|
|
93.8
|
|
||||
Interest charged to cost of sales
|
|
(34.3
|
)
|
|
(35.4
|
)
|
|
(89.8
|
)
|
|
(96.0
|
)
|
||||
Capitalized interest, end of period
|
|
$
|
177.7
|
|
|
$
|
165.7
|
|
|
$
|
177.7
|
|
|
$
|
165.7
|
|
(1)
|
Interest incurred included interest on the Company's mortgage repurchase facility of $4.5 million and $10.8 million in the three and nine months ended June 30, 2019, respectively, and $3.4 million and $7.9 million in the same periods of fiscal 2018. Also included in interest incurred is Forestar interest of $7.9 million and $10.7 million in the three and nine months ended June 30, 2019, respectively, and $0.9 million and $2.3 million in the same periods of fiscal 2018.
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
474.8
|
|
|
$
|
453.8
|
|
|
$
|
1,113.2
|
|
|
$
|
994.1
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Denominator for basic earnings per share — weighted average common shares
|
|
372.3
|
|
|
377.4
|
|
|
373.5
|
|
|
376.6
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Employee stock awards
|
|
4.6
|
|
|
6.0
|
|
|
4.7
|
|
|
7.0
|
|
||||
Denominator for diluted earnings per share — adjusted weighted average common shares
|
|
376.9
|
|
|
383.4
|
|
|
378.2
|
|
|
383.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
1.28
|
|
|
$
|
1.20
|
|
|
$
|
2.98
|
|
|
$
|
2.64
|
|
Diluted net income per common share attributable to D.R. Horton, Inc.
|
|
$
|
1.26
|
|
|
$
|
1.18
|
|
|
$
|
2.94
|
|
|
$
|
2.59
|
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Warranty liability, beginning of period
|
|
$
|
213.9
|
|
|
$
|
162.6
|
|
|
$
|
202.0
|
|
|
$
|
143.7
|
|
Warranties issued
|
|
25.8
|
|
|
23.6
|
|
|
64.7
|
|
|
59.3
|
|
||||
Changes in liability for pre-existing warranties
|
|
9.4
|
|
|
8.1
|
|
|
20.9
|
|
|
25.9
|
|
||||
Settlements made
|
|
(20.1
|
)
|
|
(17.9
|
)
|
|
(58.6
|
)
|
|
(52.5
|
)
|
||||
Warranty liability, end of period
|
|
$
|
229.0
|
|
|
$
|
176.4
|
|
|
$
|
229.0
|
|
|
$
|
176.4
|
|
|
Nine Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Reserves for legal claims, beginning of period
|
$
|
408.1
|
|
|
$
|
420.6
|
|
Increase in reserves
|
45.5
|
|
|
47.2
|
|
||
Payments
|
(12.7
|
)
|
|
(60.0
|
)
|
||
Reserves for legal claims, end of period
|
$
|
440.9
|
|
|
$
|
407.8
|
|
|
|
June 30,
2019 |
|
September 30, 2018
|
||||
|
|
(In millions)
|
||||||
Earnest money and refundable deposits
|
|
$
|
522.7
|
|
|
$
|
445.2
|
|
Insurance receivables
|
|
69.8
|
|
|
54.6
|
|
||
Other receivables
|
|
107.5
|
|
|
81.7
|
|
||
Prepaid assets
|
|
33.9
|
|
|
36.9
|
|
||
Rental properties
|
|
35.1
|
|
|
39.2
|
|
||
Contract assets - insurance agency commissions
|
|
36.3
|
|
|
—
|
|
||
Other
|
|
84.6
|
|
|
55.3
|
|
||
|
|
$
|
889.9
|
|
|
$
|
712.9
|
|
|
|
June 30,
2019 |
|
September 30, 2018
|
||||
|
|
(In millions)
|
||||||
Reserves for legal claims
|
|
$
|
440.9
|
|
|
$
|
408.1
|
|
Employee compensation and related liabilities
|
|
254.9
|
|
|
252.5
|
|
||
Warranty liability
|
|
229.0
|
|
|
202.0
|
|
||
Accrued interest
|
|
36.2
|
|
|
14.8
|
|
||
Federal and state income tax liabilities
|
|
52.2
|
|
|
35.2
|
|
||
Inventory related accruals
|
|
49.5
|
|
|
45.5
|
|
||
Customer deposits
|
|
67.4
|
|
|
58.1
|
|
||
Accrued property taxes
|
|
27.3
|
|
|
38.0
|
|
||
Other
|
|
120.1
|
|
|
73.3
|
|
||
|
|
$
|
1,277.5
|
|
|
$
|
1,127.5
|
|
|
|
|
Fair Value at June 30, 2019
|
||||||||||||||
|
Balance Sheet Location
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Debt securities collateralized by residential real estate
|
Other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.9
|
|
|
$
|
3.9
|
|
Mortgage loans held for sale (a)
|
Mortgage loans held for sale
|
|
—
|
|
|
941.1
|
|
|
9.2
|
|
|
950.3
|
|
||||
Derivatives not designated as hedging instruments (b):
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
Other assets
|
|
—
|
|
|
21.5
|
|
|
—
|
|
|
21.5
|
|
||||
Forward sales of mortgage-backed securities
|
Other liabilities
|
|
—
|
|
|
(14.9
|
)
|
|
—
|
|
|
(14.9
|
)
|
||||
Best-efforts and mandatory commitments
|
Other liabilities
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
|
|
Fair Value at September 30, 2018
|
||||||||||||||
|
Balance Sheet Location
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Debt securities collateralized by residential real estate
|
Other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.9
|
|
|
$
|
3.9
|
|
Mortgage loans held for sale (a)
|
Mortgage loans held for sale
|
|
—
|
|
|
784.6
|
|
|
7.8
|
|
|
792.4
|
|
||||
Derivatives not designated as hedging instruments (b):
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
Other assets
|
|
—
|
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
||||
Forward sales of mortgage-backed securities
|
Other assets
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
||||
Best-efforts and mandatory commitments
|
Other assets
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
(a)
|
The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at June 30, 2019 and September 30, 2018 include $9.2 million and $7.8 million, respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. 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
June 30, 2019 |
|
Fair Value at
September 30, 2018 |
||||||||||||
|
Balance Sheet Location
|
|
Level 2
|
|
Level 3
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
Inventory held and used (a) (b)
|
Inventories
|
|
$
|
—
|
|
|
$
|
14.6
|
|
|
$
|
—
|
|
|
$
|
4.4
|
|
Inventory available for sale (a) (c)
|
Inventories
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
||||
Mortgage loans held for sale (a) (d)
|
Mortgage loans held for sale
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
2.9
|
|
||||
Other mortgage loans (a) (e)
|
Other assets
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
(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 14% to 16% 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 and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3).
|
(e)
|
The fair value of other mortgage loans was determined based on the value of the underlying collateral.
|
|
Carrying Value
|
|
Fair Value at June 30, 2019
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(In millions)
|
||||||||||||||||||
Cash and cash equivalents (a)
|
$
|
864.2
|
|
|
$
|
864.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
864.2
|
|
Restricted cash (a)
|
21.1
|
|
|
21.1
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
|||||
Notes payable (b) (c)
|
3,450.6
|
|
|
—
|
|
|
2,512.5
|
|
|
1,044.0
|
|
|
3,556.5
|
|
|
Carrying Value
|
|
Fair Value at September 30, 2018
|
||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
|
(In millions)
|
||||||||||||||||||
Cash and cash equivalents (a)
|
$
|
1,473.1
|
|
|
$
|
1,473.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,473.1
|
|
Restricted cash (a)
|
32.9
|
|
|
32.9
|
|
|
—
|
|
|
—
|
|
|
32.9
|
|
|||||
Notes payable (b) (c)
|
3,203.5
|
|
|
—
|
|
|
2,602.6
|
|
|
642.2
|
|
|
3,244.8
|
|
(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 facilities 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
|
|
$
|
412.7
|
|
|
$
|
115.3
|
|
|
$
|
336.2
|
|
|
$
|
—
|
|
|
$
|
864.2
|
|
Restricted cash
|
|
7.7
|
|
|
2.1
|
|
|
11.3
|
|
|
—
|
|
|
21.1
|
|
|||||
Investment in subsidiaries
|
|
7,055.5
|
|
|
—
|
|
|
—
|
|
|
(7,055.5
|
)
|
|
—
|
|
|||||
Inventories
|
|
4,315.7
|
|
|
6,271.7
|
|
|
1,143.3
|
|
|
(28.4
|
)
|
|
11,702.3
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
954.9
|
|
|
—
|
|
|
954.9
|
|
|||||
Deferred income taxes, net
|
|
61.4
|
|
|
90.5
|
|
|
18.4
|
|
|
3.6
|
|
|
173.9
|
|
|||||
Property and equipment, net
|
|
124.8
|
|
|
76.2
|
|
|
257.6
|
|
|
(4.4
|
)
|
|
454.2
|
|
|||||
Other assets
|
|
382.2
|
|
|
440.7
|
|
|
150.7
|
|
|
(83.7
|
)
|
|
889.9
|
|
|||||
Goodwill
|
|
—
|
|
|
134.3
|
|
|
29.2
|
|
|
—
|
|
|
163.5
|
|
|||||
Intercompany receivables
|
|
58.7
|
|
|
211.7
|
|
|
—
|
|
|
(270.4
|
)
|
|
—
|
|
|||||
Total Assets
|
|
$
|
12,418.7
|
|
|
$
|
7,342.5
|
|
|
$
|
2,901.6
|
|
|
$
|
(7,438.8
|
)
|
|
$
|
15,224.0
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other liabilities
|
|
$
|
646.2
|
|
|
$
|
1,074.1
|
|
|
$
|
330.8
|
|
|
$
|
(92.4
|
)
|
|
$
|
1,958.7
|
|
Intercompany payables
|
|
—
|
|
|
—
|
|
|
270.4
|
|
|
(270.4
|
)
|
|
—
|
|
|||||
Notes payable
|
|
2,107.2
|
|
|
6.7
|
|
|
1,336.7
|
|
|
—
|
|
|
3,450.6
|
|
|||||
Total Liabilities
|
|
2,753.4
|
|
|
1,080.8
|
|
|
1,937.9
|
|
|
(362.8
|
)
|
|
5,409.3
|
|
|||||
Stockholders’ equity
|
|
9,665.3
|
|
|
6,261.7
|
|
|
793.9
|
|
|
(7,078.5
|
)
|
|
9,642.4
|
|
|||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
169.8
|
|
|
2.5
|
|
|
172.3
|
|
|||||
Total Equity
|
|
9,665.3
|
|
|
6,261.7
|
|
|
963.7
|
|
|
(7,076.0
|
)
|
|
9,814.7
|
|
|||||
Total Liabilities & Equity
|
|
$
|
12,418.7
|
|
|
$
|
7,342.5
|
|
|
$
|
2,901.6
|
|
|
$
|
(7,438.8
|
)
|
|
$
|
15,224.0
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
908.1
|
|
|
$
|
158.7
|
|
|
$
|
406.3
|
|
|
$
|
—
|
|
|
$
|
1,473.1
|
|
Restricted cash
|
|
6.6
|
|
|
2.0
|
|
|
24.3
|
|
|
—
|
|
|
32.9
|
|
|||||
Investment in subsidiaries
|
|
6,344.9
|
|
|
—
|
|
|
—
|
|
|
(6,344.9
|
)
|
|
—
|
|
|||||
Inventories
|
|
4,037.1
|
|
|
5,824.1
|
|
|
545.0
|
|
|
(11.2
|
)
|
|
10,395.0
|
|
|||||
Mortgage loans held for sale
|
|
—
|
|
|
—
|
|
|
796.4
|
|
|
—
|
|
|
796.4
|
|
|||||
Deferred income taxes, net
|
|
69.2
|
|
|
105.0
|
|
|
17.3
|
|
|
2.5
|
|
|
194.0
|
|
|||||
Property and equipment, net
|
|
111.2
|
|
|
66.1
|
|
|
230.7
|
|
|
(6.9
|
)
|
|
401.1
|
|
|||||
Other assets
|
|
306.6
|
|
|
361.3
|
|
|
90.2
|
|
|
(45.2
|
)
|
|
712.9
|
|
|||||
Goodwill
|
|
—
|
|
|
80.0
|
|
|
29.2
|
|
|
—
|
|
|
109.2
|
|
|||||
Intercompany receivables
|
|
246.2
|
|
|
27.3
|
|
|
—
|
|
|
(273.5
|
)
|
|
—
|
|
|||||
Total Assets
|
|
$
|
12,029.9
|
|
|
$
|
6,624.5
|
|
|
$
|
2,139.4
|
|
|
$
|
(6,679.2
|
)
|
|
$
|
14,114.6
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other liabilities
|
|
$
|
590.8
|
|
|
$
|
1,000.4
|
|
|
$
|
210.1
|
|
|
$
|
(49.1
|
)
|
|
$
|
1,752.2
|
|
Intercompany payables
|
|
—
|
|
|
—
|
|
|
273.5
|
|
|
(273.5
|
)
|
|
—
|
|
|||||
Notes payable
|
|
2,443.9
|
|
|
2.1
|
|
|
757.5
|
|
|
—
|
|
|
3,203.5
|
|
|||||
Total Liabilities
|
|
3,034.7
|
|
|
1,002.5
|
|
|
1,241.1
|
|
|
(322.6
|
)
|
|
4,955.7
|
|
|||||
Stockholders’ equity
|
|
8,995.2
|
|
|
5,622.0
|
|
|
722.8
|
|
|
(6,355.6
|
)
|
|
8,984.4
|
|
|||||
Noncontrolling interests
|
|
—
|
|
|
—
|
|
|
175.5
|
|
|
(1.0
|
)
|
|
174.5
|
|
|||||
Total Equity
|
|
8,995.2
|
|
|
5,622.0
|
|
|
898.3
|
|
|
(6,356.6
|
)
|
|
9,158.9
|
|
|||||
Total Liabilities & Equity
|
|
$
|
12,029.9
|
|
|
$
|
6,624.5
|
|
|
$
|
2,139.4
|
|
|
$
|
(6,679.2
|
)
|
|
$
|
14,114.6
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
1,939.3
|
|
|
$
|
2,820.9
|
|
|
$
|
219.2
|
|
|
$
|
(73.1
|
)
|
|
$
|
4,906.3
|
|
Cost of sales
|
|
1,529.6
|
|
|
2,286.9
|
|
|
82.4
|
|
|
(67.3
|
)
|
|
3,831.6
|
|
|||||
Selling, general and administrative expense
|
|
191.8
|
|
|
193.4
|
|
|
94.8
|
|
|
—
|
|
|
480.0
|
|
|||||
Gain on sale of assets
|
|
—
|
|
|
(0.2
|
)
|
|
(22.4
|
)
|
|
—
|
|
|
(22.6
|
)
|
|||||
Other (income) expense
|
|
(0.9
|
)
|
|
(0.5
|
)
|
|
(8.0
|
)
|
|
—
|
|
|
(9.4
|
)
|
|||||
Income before income taxes
|
|
218.8
|
|
|
341.3
|
|
|
72.4
|
|
|
(5.8
|
)
|
|
626.7
|
|
|||||
Income tax expense
|
|
53.7
|
|
|
84.1
|
|
|
16.8
|
|
|
(1.5
|
)
|
|
153.1
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
314.6
|
|
|
—
|
|
|
—
|
|
|
(314.6
|
)
|
|
—
|
|
|||||
Net income
|
|
479.7
|
|
|
257.2
|
|
|
55.6
|
|
|
(318.9
|
)
|
|
473.6
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
0.7
|
|
|
(1.2
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
479.7
|
|
|
$
|
257.2
|
|
|
$
|
57.5
|
|
|
$
|
(319.6
|
)
|
|
$
|
474.8
|
|
|
|
D.R.
Horton, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
4,850.2
|
|
|
$
|
7,322.3
|
|
|
$
|
523.3
|
|
|
$
|
(141.8
|
)
|
|
$
|
12,554.0
|
|
Cost of sales
|
|
3,836.6
|
|
|
5,957.8
|
|
|
172.8
|
|
|
(127.8
|
)
|
|
9,839.4
|
|
|||||
Selling, general and administrative expense
|
|
543.3
|
|
|
523.9
|
|
|
259.8
|
|
|
—
|
|
|
1,327.0
|
|
|||||
Gain on sale of assets
|
|
(2.0
|
)
|
|
(0.2
|
)
|
|
(49.2
|
)
|
|
(2.5
|
)
|
|
(53.9
|
)
|
|||||
Other (income) expense
|
|
(2.9
|
)
|
|
(1.3
|
)
|
|
(19.5
|
)
|
|
—
|
|
|
(23.7
|
)
|
|||||
Income before income taxes
|
|
475.2
|
|
|
842.1
|
|
|
159.4
|
|
|
(11.5
|
)
|
|
1,465.2
|
|
|||||
Income tax expense
|
|
114.2
|
|
|
202.3
|
|
|
36.8
|
|
|
(2.8
|
)
|
|
350.5
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
764.2
|
|
|
—
|
|
|
—
|
|
|
(764.2
|
)
|
|
—
|
|
|||||
Net income
|
|
1,125.2
|
|
|
639.8
|
|
|
122.6
|
|
|
(772.9
|
)
|
|
1,114.7
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
3.4
|
|
|
1.5
|
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
1,125.2
|
|
|
$
|
639.8
|
|
|
$
|
124.5
|
|
|
$
|
(776.3
|
)
|
|
$
|
1,113.2
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
1,630.8
|
|
|
$
|
2,693.9
|
|
|
$
|
119.5
|
|
|
$
|
(8.9
|
)
|
|
$
|
4,435.3
|
|
Cost of sales
|
|
1,293.3
|
|
|
2,092.5
|
|
|
17.0
|
|
|
(5.6
|
)
|
|
3,397.2
|
|
|||||
Selling, general and administrative expense
|
|
174.4
|
|
|
174.1
|
|
|
86.4
|
|
|
—
|
|
|
434.9
|
|
|||||
Other (income) expense
|
|
(1.5
|
)
|
|
0.5
|
|
|
(12.0
|
)
|
|
—
|
|
|
(13.0
|
)
|
|||||
Income before income taxes
|
|
164.6
|
|
|
426.8
|
|
|
28.1
|
|
|
(3.3
|
)
|
|
616.2
|
|
|||||
Income tax expense
|
|
43.8
|
|
|
113.6
|
|
|
5.1
|
|
|
—
|
|
|
162.5
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
336.2
|
|
|
—
|
|
|
—
|
|
|
(336.2
|
)
|
|
—
|
|
|||||
Net income
|
|
457.0
|
|
|
313.2
|
|
|
23.0
|
|
|
(339.5
|
)
|
|
453.7
|
|
|||||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(3.5
|
)
|
|
3.4
|
|
|
(0.1
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
457.0
|
|
|
$
|
313.2
|
|
|
$
|
26.5
|
|
|
$
|
(342.9
|
)
|
|
$
|
453.8
|
|
|
|
D.R.
Horton, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues
|
|
$
|
4,082.7
|
|
|
$
|
7,149.0
|
|
|
$
|
353.6
|
|
|
$
|
(22.4
|
)
|
|
$
|
11,562.9
|
|
Cost of sales
|
|
3,235.0
|
|
|
5,659.4
|
|
|
61.1
|
|
|
(16.5
|
)
|
|
8,939.0
|
|
|||||
Selling, general and administrative expense
|
|
483.4
|
|
|
490.6
|
|
|
245.9
|
|
|
—
|
|
|
1,219.9
|
|
|||||
Gain on sale of assets
|
|
—
|
|
|
—
|
|
|
(14.5
|
)
|
|
—
|
|
|
(14.5
|
)
|
|||||
Other (income) expense
|
|
(3.5
|
)
|
|
(0.2
|
)
|
|
(30.1
|
)
|
|
—
|
|
|
(33.8
|
)
|
|||||
Income before income taxes
|
|
367.8
|
|
|
999.2
|
|
|
91.2
|
|
|
(5.9
|
)
|
|
1,452.3
|
|
|||||
Income tax expense
|
|
117.0
|
|
|
318.7
|
|
|
24.2
|
|
|
(1.0
|
)
|
|
458.9
|
|
|||||
Equity in net income of subsidiaries, net of tax
|
|
747.5
|
|
|
—
|
|
|
—
|
|
|
(747.5
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
998.3
|
|
|
$
|
680.5
|
|
|
$
|
67.0
|
|
|
$
|
(752.4
|
)
|
|
$
|
993.4
|
|
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
3.4
|
|
|
(0.7
|
)
|
|||||
Net income attributable to D.R. Horton, Inc.
|
|
$
|
998.3
|
|
|
$
|
680.5
|
|
|
$
|
71.1
|
|
|
$
|
(755.8
|
)
|
|
$
|
994.1
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
210.9
|
|
|
$
|
467.4
|
|
|
$
|
(518.9
|
)
|
|
$
|
(78.7
|
)
|
|
$
|
80.7
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(37.9
|
)
|
|
(22.6
|
)
|
|
(44.8
|
)
|
|
—
|
|
|
(105.3
|
)
|
|||||
Proceeds from sale of assets
|
|
10.4
|
|
|
—
|
|
|
133.4
|
|
|
—
|
|
|
143.8
|
|
|||||
Expenditures related to multi-family rental properties
|
|
—
|
|
|
—
|
|
|
(56.3
|
)
|
|
—
|
|
|
(56.3
|
)
|
|||||
Return of investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|||||
Net principal increase of other mortgage loans and real estate owned
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|||||
Intercompany advances
|
|
497.0
|
|
|
—
|
|
|
—
|
|
|
(497.0
|
)
|
|
—
|
|
|||||
Payments related to business acquisitions
|
|
(302.6
|
)
|
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
|
(310.9
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
166.9
|
|
|
(22.6
|
)
|
|
26.4
|
|
|
(497.0
|
)
|
|
(326.3
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from notes payable
|
|
2,100.0
|
|
|
—
|
|
|
428.2
|
|
|
—
|
|
|
2,528.2
|
|
|||||
Repayment of notes payable
|
|
(2,450.0
|
)
|
|
(1.1
|
)
|
|
(85.0
|
)
|
|
—
|
|
|
(2,536.1
|
)
|
|||||
Advances on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
158.8
|
|
|
—
|
|
|
158.8
|
|
|||||
Intercompany advances
|
|
—
|
|
|
(487.0
|
)
|
|
(10.0
|
)
|
|
497.0
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
26.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.8
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(19.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.5
|
)
|
|||||
Cash dividends paid
|
|
(167.9
|
)
|
|
—
|
|
|
(78.7
|
)
|
|
78.7
|
|
|
(167.9
|
)
|
|||||
Repurchases of common stock
|
|
(361.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(361.5
|
)
|
|||||
Distributions to noncontrolling interests, net
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
|||||
Net cash (used in) provided by financing activities
|
|
(872.1
|
)
|
|
(488.1
|
)
|
|
409.4
|
|
|
575.7
|
|
|
(375.1
|
)
|
|||||
Decrease in cash, cash equivalents and restricted cash
|
|
(494.3
|
)
|
|
(43.3
|
)
|
|
(83.1
|
)
|
|
—
|
|
|
(620.7
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
914.7
|
|
|
160.7
|
|
|
430.6
|
|
|
—
|
|
|
1,506.0
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
420.4
|
|
|
$
|
117.4
|
|
|
$
|
347.5
|
|
|
$
|
—
|
|
|
$
|
885.3
|
|
|
|
D.R.
Horton, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
|
$
|
(17.9
|
)
|
|
$
|
640.4
|
|
|
$
|
(254.0
|
)
|
|
$
|
(62.0
|
)
|
|
$
|
306.5
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property and equipment
|
|
(29.1
|
)
|
|
(21.5
|
)
|
|
(3.4
|
)
|
|
—
|
|
|
(54.0
|
)
|
|||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
261.1
|
|
|
—
|
|
|
261.1
|
|
|||||
Expenditures related to multi-family rental properties
|
|
—
|
|
|
—
|
|
|
(61.1
|
)
|
|
5.0
|
|
|
(56.1
|
)
|
|||||
Return of investment in unconsolidated entities
|
|
—
|
|
|
—
|
|
|
15.4
|
|
|
—
|
|
|
15.4
|
|
|||||
Net principal increase of other mortgage loans and real estate owned
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||||
Intercompany advances
|
|
615.7
|
|
|
—
|
|
|
—
|
|
|
(615.7
|
)
|
|
—
|
|
|||||
Payments related to business acquisitions, net of cash acquired
|
|
(560.0
|
)
|
|
—
|
|
|
401.9
|
|
|
—
|
|
|
(158.1
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
26.6
|
|
|
(21.5
|
)
|
|
613.1
|
|
|
(610.7
|
)
|
|
7.5
|
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from notes payable
|
|
2,162.2
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2,164.3
|
|
|||||
Repayment of notes payable
|
|
(2,165.2
|
)
|
|
(3.7
|
)
|
|
(10.6
|
)
|
|
—
|
|
|
(2,179.5
|
)
|
|||||
Advances on mortgage repurchase facility, net
|
|
—
|
|
|
—
|
|
|
106.3
|
|
|
—
|
|
|
106.3
|
|
|||||
Intercompany advances
|
|
—
|
|
|
(660.6
|
)
|
|
44.9
|
|
|
615.7
|
|
|
—
|
|
|||||
Proceeds from stock associated with certain employee benefit plans
|
|
36.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36.2
|
|
|||||
Cash paid for shares withheld for taxes
|
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3
|
)
|
|||||
Cash dividends paid
|
|
(141.3
|
)
|
|
—
|
|
|
(57.0
|
)
|
|
57.0
|
|
|
(141.3
|
)
|
|||||
Repurchases of common stock
|
|
(74.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74.9
|
)
|
|||||
Distributions to noncontrolling interests, net
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|
—
|
|
|
(2.2
|
)
|
|||||
Net cash (used in) provided by financing activities
|
|
(193.3
|
)
|
|
(664.3
|
)
|
|
83.5
|
|
|
672.7
|
|
|
(101.4
|
)
|
|||||
(Decrease) increase in cash, cash equivalents and restricted cash
|
|
(184.6
|
)
|
|
(45.4
|
)
|
|
442.6
|
|
|
—
|
|
|
212.6
|
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
788.7
|
|
|
156.0
|
|
|
79.6
|
|
|
—
|
|
|
1,024.3
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
604.1
|
|
|
$
|
110.6
|
|
|
$
|
522.2
|
|
|
$
|
—
|
|
|
$
|
1,236.9
|
|
•
|
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 and maintain affordability.
|
•
|
Delivering high quality homes to our customers and a positive experience both during and after the sale.
|
•
|
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 purchase contracts by expanding relationships with land developers across the country and continuing to grow our majority-owned Forestar lot development operations.
|
•
|
Opportunistically pursuing acquisitions to enhance our operations and improve returns.
|
•
|
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 10% to $4.8 billion compared to $4.3 billion.
|
•
|
Homes closed increased 13% to 15,971 homes, and the average closing price of those homes was $296,400.
|
•
|
Net sales orders increased 6% to 15,588 homes, and the value of net sales orders increased 8% to $4.7 billion.
|
•
|
Sales order backlog decreased slightly to 16,507 homes, and the value of sales order backlog was essentially unchanged at $5.0 billion.
|
•
|
Home sales gross margin was 20.3% compared to 21.9%.
|
•
|
Homebuilding SG&A expense was 8.1% of homebuilding revenues in both periods.
|
•
|
Homebuilding pre-tax income was $561.8 million compared to $589.7 million.
|
•
|
Homebuilding pre-tax income was 11.8% of homebuilding revenues compared to 13.6%.
|
•
|
Homebuilding cash and cash equivalents totaled $577.9 million compared to $1.1 billion and $748.0 million at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Homebuilding inventories totaled $10.7 billion compared to $9.9 billion at both September 30, 2018 and June 30, 2018.
|
•
|
Homes in inventory totaled 29,200 compared to 27,900 and 28,100 at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Owned lots totaled 118,500 compared to 124,300 and 122,200 at September 30, 2018 and June 30, 2018, respectively. Lots controlled through purchase contracts totaled 184,500 compared to 164,200 and 155,500 at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Homebuilding debt was $2.2 billion compared to $2.4 billion at both September 30, 2018 and June 30, 2018.
|
•
|
Homebuilding debt to total capital was 18.5% compared to 21.4% at September 30, 2018 and 22.2% at June 30, 2018.
|
•
|
Forestar’s revenues increased 274% to $88.2 million compared to $23.6 million. Revenues in the current and prior year quarters included $73.2 million and $8.8 million, respectively, of revenue from land and lot sales to our homebuilding segment.
|
•
|
Forestar’s pre-tax income was $8.4 million compared to $10.5 million.
|
•
|
Forestar’s cash and cash equivalents totaled $223.0 million compared to $318.8 million and $367.7 million at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Forestar’s inventories totaled $1.0 billion compared to $498.0 million and $360.8 million at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Owned and controlled lots totaled 37,400 compared to 20,100 and 19,100 at September 30, 2018 and June 30, 2018, respectively. Of these lots, 24,100 were under contract to sell to or subject to a right of first offer with D.R. Horton, compared to 13,600 and 11,100 at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Forestar’s debt was $458.9 million compared to $111.7 million and $110.5 million at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Financial services revenues increased 23% to $119.6 million compared to $97.1 million.
|
•
|
Financial services pre-tax income increased 59% to $48.1 million compared to $30.3 million.
|
•
|
Financial services pre-tax income was 40.2% of financial services revenues compared to 31.2%.
|
•
|
Consolidated pre-tax income was $626.7 million compared to $616.2 million.
|
•
|
Consolidated pre-tax income was 12.8% of consolidated revenues compared to 13.9%.
|
•
|
Income tax expense was $153.1 million compared to $162.5 million.
|
•
|
Net income attributable to D.R. Horton was $474.8 million compared to $453.8 million.
|
•
|
Diluted net income per common share attributable to D.R. Horton was $1.26 compared to $1.18.
|
•
|
Stockholders’ equity was $9.6 billion compared to $9.0 billion and $8.6 billion at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Book value per common share increased to $26.08 compared to $23.88 and $22.80 at September 30, 2018 and June 30, 2018, respectively.
|
•
|
Debt to total capital was 26.4% compared to 26.3% at September 30, 2018 and 26.5% at June 30, 2018.
|
•
|
Homebuilding revenues increased 8% to $12.2 billion compared to $11.2 billion.
|
•
|
Homes closed increased 10% to 40,951 homes, and the average closing price of those homes was $296,100.
|
•
|
Net sales orders increased 5% to 43,435 homes, and the value of net sales orders increased 4% to $12.9 billion.
|
•
|
Home sales gross margin was 19.9% compared to 21.2%.
|
•
|
Homebuilding SG&A expense was 8.8% of homebuilding revenues compared to 8.7%.
|
•
|
Homebuilding pre-tax income was $1.3 billion compared to $1.4 billion.
|
•
|
Homebuilding pre-tax income was 10.8% of homebuilding revenues compared to 12.3%.
|
•
|
Net cash provided by homebuilding operations was $605.7 million compared to $565.2 million.
|
•
|
Forestar’s revenues increased 149% to $192.0 million compared to $77.0 million. Revenues in the current and prior year periods included $141.8 million and $17.3 million, respectively, of revenue from land and lot sales to our homebuilding segment.
|
•
|
Forestar’s pre-tax income increased 55% to $29.6 million compared to $19.1 million.
|
•
|
Financial services revenues increased 12% to $306.4 million compared to $273.1 million.
|
•
|
Financial services pre-tax income increased 26% to $105.6 million compared to $84.0 million.
|
•
|
Financial services pre-tax income was 34.5% of financial services revenues compared to 30.8%.
|
•
|
Consolidated pre-tax income was essentially unchanged at $1.5 billion.
|
•
|
Consolidated pre-tax income was 11.7% of consolidated revenues compared to 12.6%.
|
•
|
Income tax expense was $350.5 million compared to $458.9 million. Income tax expense in the prior year period included a charge of $108.7 million as a result of the Tax Cuts and Jobs Act (Tax Act).
|
•
|
Net income attributable to D.R. Horton increased 12% to $1.1 billion compared to $994.1 million.
|
•
|
Diluted net income per common share attributable to D.R. Horton increased 14% to $2.94 compared to $2.59.
|
•
|
Net cash provided by operations was $80.7 million compared to $306.5 million.
|
State
|
|
Reporting Region/Market
|
|
State
|
|
Reporting Region/Market
|
|
|
|
|
|
|
|
|
|
East Region
|
|
|
|
Southeast Region
|
Delaware
|
|
Central Delaware
|
|
Alabama
|
|
Birmingham
|
|
|
Northern Delaware
|
|
|
|
Huntsville
|
Georgia
|
|
Savannah
|
|
|
|
Mobile/Baldwin County
|
Maryland
|
|
Baltimore
|
|
|
|
Montgomery
|
|
|
Suburban Washington, D.C.
|
|
|
|
Tuscaloosa
|
New Jersey
|
|
Northern New Jersey
|
|
Florida
|
|
Fort Myers/Naples
|
|
|
Southern New Jersey
|
|
|
|
Gainesville
|
North Carolina
|
|
Charlotte
|
|
|
|
Jacksonville
|
|
|
Greensboro/Winston-Salem
|
|
|
|
Lakeland
|
|
|
Raleigh/Durham
|
|
|
|
Melbourne/Vero Beach
|
|
|
Wilmington
|
|
|
|
Miami/Fort Lauderdale
|
Pennsylvania
|
|
Philadelphia
|
|
|
|
Ocala
|
South Carolina
|
|
Charleston
|
|
|
|
Orlando
|
|
|
Columbia
|
|
|
|
Pensacola/Panama City
|
|
|
Greenville/Spartanburg
|
|
|
|
Port St. Lucie
|
|
|
Hilton Head
|
|
|
|
Tampa/Sarasota
|
|
|
Myrtle Beach
|
|
|
|
Volusia County
|
Virginia
|
|
Northern Virginia
|
|
|
|
West Palm Beach
|
|
|
Southern Virginia
|
|
Georgia
|
|
Atlanta
|
|
|
|
|
|
|
Augusta
|
|
|
Midwest Region
|
|
Mississippi
|
|
Gulf Coast
|
Colorado
|
|
Denver
|
|
Tennessee
|
|
Chattanooga
|
|
|
Fort Collins
|
|
|
|
Knoxville
|
Illinois
|
|
Chicago
|
|
|
|
Memphis
|
Indiana
|
|
Fort Wayne
|
|
|
|
Nashville
|
|
|
Indianapolis
|
|
|
|
|
Iowa
|
|
Des Moines
|
|
|
|
West Region
|
Minnesota
|
|
Minneapolis/St. Paul
|
|
California
|
|
Bakersfield
|
Ohio
|
|
Columbus
|
|
|
|
Bay Area
|
|
|
|
|
|
|
Fresno
|
|
|
South Central Region
|
|
|
|
Los Angeles County
|
Louisiana
|
|
Baton Rouge
|
|
|
|
Riverside County
|
|
|
Lafayette
|
|
|
|
Sacramento
|
Oklahoma
|
|
Oklahoma City
|
|
|
|
San Bernardino County
|
Texas
|
|
Austin
|
|
|
|
San Diego County
|
|
|
Dallas
|
|
|
|
Ventura County
|
|
|
Fort Worth
|
|
Hawaii
|
|
Hawaii
|
|
|
Houston
|
|
|
|
Kauai
|
|
|
Killeen/Temple/Waco
|
|
|
|
Maui
|
|
|
Midland/Odessa
|
|
|
|
Oahu
|
|
|
New Braunfels/San Marcos
|
|
Nevada
|
|
Las Vegas
|
|
|
San Antonio
|
|
|
|
Reno
|
|
|
|
|
Oregon
|
|
Bend
|
|
|
Southwest Region
|
|
|
|
Portland/Salem
|
Arizona
|
|
Phoenix
|
|
Utah
|
|
Salt Lake City
|
|
|
Tucson
|
|
Washington
|
|
Seattle/Tacoma/Everett
|
New Mexico
|
|
Albuquerque
|
|
|
|
Spokane
|
|
|
|
|
|
|
Vancouver
|
|
|
Net Sales Orders (1)
|
|||||||||||||||||||||||||||
|
|
Three Months Ended June 30,
|
|||||||||||||||||||||||||||
|
|
Net Homes Sold
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
%
Change |
|
2019
|
|
2018
|
|
%
Change |
|
2019
|
|
2018
|
|
%
Change |
|||||||||||
East
|
|
2,073
|
|
1,948
|
|
6
|
%
|
|
$
|
606.0
|
|
|
$
|
557.9
|
|
|
9
|
%
|
|
$
|
292,300
|
|
|
$
|
286,400
|
|
|
2
|
%
|
Midwest
|
|
881
|
|
546
|
|
61
|
%
|
|
298.1
|
|
|
221.2
|
|
|
35
|
%
|
|
338,400
|
|
|
405,100
|
|
|
(16
|
)%
|
||||
Southeast
|
|
5,105
|
|
4,722
|
|
8
|
%
|
|
1,379.5
|
|
|
1,253.5
|
|
|
10
|
%
|
|
270,200
|
|
|
265,500
|
|
|
2
|
%
|
||||
South Central
|
|
4,475
|
|
4,478
|
|
—
|
%
|
|
1,139.7
|
|
|
1,133.3
|
|
|
1
|
%
|
|
254,700
|
|
|
253,100
|
|
|
1
|
%
|
||||
Southwest
|
|
799
|
|
917
|
|
(13
|
)%
|
|
217.6
|
|
|
230.5
|
|
|
(6
|
)%
|
|
272,300
|
|
|
251,400
|
|
|
8
|
%
|
||||
West
|
|
2,255
|
|
2,039
|
|
11
|
%
|
|
1,066.2
|
|
|
969.8
|
|
|
10
|
%
|
|
472,800
|
|
|
475,600
|
|
|
(1
|
)%
|
||||
|
|
15,588
|
|
14,650
|
|
6
|
%
|
|
$
|
4,707.1
|
|
|
$
|
4,366.2
|
|
|
8
|
%
|
|
$
|
302,000
|
|
|
$
|
298,000
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended June 30,
|
|||||||||||||||||||||||||||
|
|
Net Homes Sold
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
%
Change |
|
2019
|
|
2018
|
|
%
Change |
|
2019
|
|
2018
|
|
%
Change |
|||||||||||
East
|
|
6,069
|
|
5,369
|
|
13
|
%
|
|
$
|
1,744.0
|
|
|
$
|
1,523.2
|
|
|
14
|
%
|
|
$
|
287,400
|
|
|
$
|
283,700
|
|
|
1
|
%
|
Midwest
|
|
2,449
|
|
1,713
|
|
43
|
%
|
|
856.3
|
|
|
672.6
|
|
|
27
|
%
|
|
349,700
|
|
|
392,600
|
|
|
(11
|
)%
|
||||
Southeast
|
|
14,326
|
|
13,408
|
|
7
|
%
|
|
3,831.2
|
|
|
3,582.5
|
|
|
7
|
%
|
|
267,400
|
|
|
267,200
|
|
|
—
|
%
|
||||
South Central
|
|
12,649
|
|
12,292
|
|
3
|
%
|
|
3,198.7
|
|
|
3,094.5
|
|
|
3
|
%
|
|
252,900
|
|
|
251,700
|
|
|
—
|
%
|
||||
Southwest
|
|
2,126
|
|
2,507
|
|
(15
|
)%
|
|
558.7
|
|
|
607.3
|
|
|
(8
|
)%
|
|
262,800
|
|
|
242,200
|
|
|
9
|
%
|
||||
West
|
|
5,816
|
|
5,942
|
|
(2
|
)%
|
|
2,685.4
|
|
|
2,850.2
|
|
|
(6
|
)%
|
|
461,700
|
|
|
479,700
|
|
|
(4
|
)%
|
||||
|
|
43,435
|
|
41,231
|
|
5
|
%
|
|
$
|
12,874.3
|
|
|
$
|
12,330.3
|
|
|
4
|
%
|
|
$
|
296,400
|
|
|
$
|
299,100
|
|
|
(1
|
)%
|
|
|
Sales Order Cancellations
|
||||||||||||||||
|
|
Three Months Ended June 30,
|
||||||||||||||||
|
|
Cancelled Sales Orders
|
|
Value (In millions)
|
|
Cancellation Rate (2)
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
East
|
|
565
|
|
578
|
|
$
|
156.4
|
|
|
$
|
157.5
|
|
|
21
|
%
|
|
23
|
%
|
Midwest
|
|
216
|
|
96
|
|
70.3
|
|
|
36.3
|
|
|
20
|
%
|
|
15
|
%
|
||
Southeast
|
|
1,446
|
|
1,533
|
|
382.3
|
|
|
407.4
|
|
|
22
|
%
|
|
25
|
%
|
||
South Central
|
|
1,204
|
|
1,104
|
|
304.5
|
|
|
272.8
|
|
|
21
|
%
|
|
20
|
%
|
||
Southwest
|
|
216
|
|
291
|
|
55.9
|
|
|
76.7
|
|
|
21
|
%
|
|
24
|
%
|
||
West
|
|
331
|
|
364
|
|
155.0
|
|
|
184.1
|
|
|
13
|
%
|
|
15
|
%
|
||
|
|
3,978
|
|
3,966
|
|
$
|
1,124.4
|
|
|
$
|
1,134.8
|
|
|
20
|
%
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Nine Months Ended June 30,
|
||||||||||||||||
|
|
Cancelled Sales Orders
|
|
Value (In millions)
|
|
Cancellation Rate (2)
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
East
|
|
1,637
|
|
1,455
|
|
$
|
459.3
|
|
|
$
|
406.7
|
|
|
21
|
%
|
|
21
|
%
|
Midwest
|
|
485
|
|
218
|
|
163.6
|
|
|
83.4
|
|
|
17
|
%
|
|
11
|
%
|
||
Southeast
|
|
4,043
|
|
4,153
|
|
1,076.6
|
|
|
1,099.0
|
|
|
22
|
%
|
|
24
|
%
|
||
South Central
|
|
3,494
|
|
3,231
|
|
875.6
|
|
|
797.8
|
|
|
22
|
%
|
|
21
|
%
|
||
Southwest
|
|
736
|
|
743
|
|
184.9
|
|
|
180.6
|
|
|
26
|
%
|
|
23
|
%
|
||
West
|
|
965
|
|
968
|
|
450.2
|
|
|
468.8
|
|
|
14
|
%
|
|
14
|
%
|
||
|
|
11,360
|
|
10,768
|
|
$
|
3,210.2
|
|
|
$
|
3,036.3
|
|
|
21
|
%
|
|
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 June 30,
|
|||||||||||||||||||||||||||
|
|
Homes in Backlog
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|||||||||||
East
|
|
2,267
|
|
2,113
|
|
7
|
%
|
|
$
|
675.5
|
|
|
$
|
618.5
|
|
|
9
|
%
|
|
$
|
298,000
|
|
|
$
|
292,700
|
|
|
2
|
%
|
Midwest
|
|
1,253
|
|
556
|
|
125
|
%
|
|
414.0
|
|
|
224.5
|
|
|
84
|
%
|
|
330,400
|
|
|
403,800
|
|
|
(18
|
)%
|
||||
Southeast
|
|
5,056
|
|
5,066
|
|
—
|
%
|
|
1,409.6
|
|
|
1,395.0
|
|
|
1
|
%
|
|
278,800
|
|
|
275,400
|
|
|
1
|
%
|
||||
South Central
|
|
5,086
|
|
5,584
|
|
(9
|
)%
|
|
1,313.4
|
|
|
1,432.4
|
|
|
(8
|
)%
|
|
258,200
|
|
|
256,500
|
|
|
1
|
%
|
||||
Southwest
|
|
957
|
|
1,177
|
|
(19
|
)%
|
|
264.8
|
|
|
294.7
|
|
|
(10
|
)%
|
|
276,700
|
|
|
250,400
|
|
|
11
|
%
|
||||
West
|
|
1,888
|
|
2,040
|
|
(7
|
)%
|
|
893.0
|
|
|
1,013.4
|
|
|
(12
|
)%
|
|
473,000
|
|
|
496,800
|
|
|
(5
|
)%
|
||||
|
|
16,507
|
|
16,536
|
|
—
|
%
|
|
$
|
4,970.3
|
|
|
$
|
4,978.5
|
|
|
—
|
%
|
|
$
|
301,100
|
|
|
$
|
301,100
|
|
|
—
|
%
|
|
|
Homes Closed and Home Sales Revenue
|
|||||||||||||||||||||||||||
|
|
Three Months Ended June 30,
|
|||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|||||||||||
East
|
|
2,356
|
|
1,881
|
|
25
|
%
|
|
$
|
674.7
|
|
|
$
|
529.1
|
|
|
28
|
%
|
|
$
|
286,400
|
|
|
$
|
281,300
|
|
|
2
|
%
|
Midwest
|
|
856
|
|
654
|
|
31
|
%
|
|
301.8
|
|
|
255.6
|
|
|
18
|
%
|
|
352,600
|
|
|
390,800
|
|
|
(10
|
)%
|
||||
Southeast
|
|
5,181
|
|
4,720
|
|
10
|
%
|
|
1,384.3
|
|
|
1,262.8
|
|
|
10
|
%
|
|
267,200
|
|
|
267,500
|
|
|
—
|
%
|
||||
South Central
|
|
4,635
|
|
4,009
|
|
16
|
%
|
|
1,177.8
|
|
|
1,002.8
|
|
|
17
|
%
|
|
254,100
|
|
|
250,100
|
|
|
2
|
%
|
||||
Southwest
|
|
855
|
|
768
|
|
11
|
%
|
|
228.7
|
|
|
180.6
|
|
|
27
|
%
|
|
267,500
|
|
|
235,200
|
|
|
14
|
%
|
||||
West
|
|
2,088
|
|
2,082
|
|
—
|
%
|
|
967.3
|
|
|
1,034.6
|
|
|
(7
|
)%
|
|
463,300
|
|
|
496,900
|
|
|
(7
|
)%
|
||||
|
|
15,971
|
|
14,114
|
|
13
|
%
|
|
$
|
4,734.6
|
|
|
$
|
4,265.5
|
|
|
11
|
%
|
|
$
|
296,400
|
|
|
$
|
302,200
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended June 30,
|
|||||||||||||||||||||||||||
|
|
Homes Closed
|
|
Value (In millions)
|
|
Average Selling Price
|
|||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|||||||||||
East
|
|
5,705
|
|
4,800
|
|
19
|
%
|
|
$
|
1,638.6
|
|
|
$
|
1,357.5
|
|
|
21
|
%
|
|
$
|
287,200
|
|
|
$
|
282,800
|
|
|
2
|
%
|
Midwest
|
|
2,228
|
|
1,576
|
|
41
|
%
|
|
793.0
|
|
|
620.6
|
|
|
28
|
%
|
|
355,900
|
|
|
393,800
|
|
|
(10
|
)%
|
||||
Southeast
|
|
13,491
|
|
12,399
|
|
9
|
%
|
|
3,593.9
|
|
|
3,292.5
|
|
|
9
|
%
|
|
266,400
|
|
|
265,500
|
|
|
—
|
%
|
||||
South Central
|
|
12,055
|
|
10,823
|
|
11
|
%
|
|
3,037.0
|
|
|
2,724.5
|
|
|
11
|
%
|
|
251,900
|
|
|
251,700
|
|
|
—
|
%
|
||||
Southwest
|
|
2,097
|
|
2,173
|
|
(3
|
)%
|
|
545.6
|
|
|
505.2
|
|
|
8
|
%
|
|
260,200
|
|
|
232,500
|
|
|
12
|
%
|
||||
West
|
|
5,375
|
|
5,412
|
|
(1
|
)%
|
|
2,517.7
|
|
|
2,621.8
|
|
|
(4
|
)%
|
|
468,400
|
|
|
484,400
|
|
|
(3
|
)%
|
||||
|
|
40,951
|
|
37,183
|
|
10
|
%
|
|
$
|
12,125.8
|
|
|
$
|
11,122.1
|
|
|
9
|
%
|
|
$
|
296,100
|
|
|
$
|
299,100
|
|
|
(1
|
)%
|
Homebuilding Operating Margin Analysis
|
||||||||||||
|
|
Percentages of Related Revenues
|
||||||||||
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Gross profit – home sales
|
|
20.3
|
%
|
|
21.9
|
%
|
|
19.9
|
%
|
|
21.2
|
%
|
Gross profit – land/lot sales and other
|
|
15.6
|
%
|
|
23.2
|
%
|
|
23.6
|
%
|
|
18.8
|
%
|
Inventory and land option charges
|
|
(0.4
|
)%
|
|
(0.2
|
)%
|
|
(0.3
|
)%
|
|
(0.4
|
)%
|
Gross profit – total homebuilding
|
|
19.9
|
%
|
|
21.7
|
%
|
|
19.5
|
%
|
|
20.8
|
%
|
Selling, general and administrative expense
|
|
8.1
|
%
|
|
8.1
|
%
|
|
8.8
|
%
|
|
8.7
|
%
|
Gain on sale of assets
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.1
|
)%
|
Other (income) expense
|
|
(0.1
|
)%
|
|
—
|
%
|
|
(0.1
|
)%
|
|
—
|
%
|
Homebuilding pre-tax income
|
|
11.8
|
%
|
|
13.6
|
%
|
|
10.8
|
%
|
|
12.3
|
%
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
East
|
|
$
|
675.2
|
|
|
$
|
74.1
|
|
|
11.0
|
%
|
|
$
|
529.1
|
|
|
$
|
67.1
|
|
|
12.7
|
%
|
Midwest
|
|
303.3
|
|
|
18.7
|
|
|
6.2
|
%
|
|
256.7
|
|
|
23.0
|
|
|
9.0
|
%
|
||||
Southeast
|
|
1,388.1
|
|
|
168.4
|
|
|
12.1
|
%
|
|
1,263.3
|
|
|
156.1
|
|
|
12.4
|
%
|
||||
South Central
|
|
1,178.0
|
|
|
164.3
|
|
|
13.9
|
%
|
|
1,005.4
|
|
|
143.3
|
|
|
14.3
|
%
|
||||
Southwest
|
|
240.6
|
|
|
33.5
|
|
|
13.9
|
%
|
|
220.1
|
|
|
32.3
|
|
|
14.7
|
%
|
||||
West
|
|
976.9
|
|
|
102.8
|
|
|
10.5
|
%
|
|
1,050.0
|
|
|
167.9
|
|
|
16.0
|
%
|
||||
|
|
$
|
4,762.1
|
|
|
$
|
561.8
|
|
|
11.8
|
%
|
|
$
|
4,324.6
|
|
|
$
|
589.7
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
|
Homebuilding
Revenues
|
|
Homebuilding
Pre-tax
Income (1)
|
|
% of
Revenues
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
East
|
|
$
|
1,640.9
|
|
|
$
|
158.0
|
|
|
9.6
|
%
|
|
$
|
1,357.9
|
|
|
$
|
158.7
|
|
|
11.7
|
%
|
Midwest
|
|
800.5
|
|
|
38.8
|
|
|
4.8
|
%
|
|
621.7
|
|
|
55.0
|
|
|
8.8
|
%
|
||||
Southeast
|
|
3,607.2
|
|
|
411.6
|
|
|
11.4
|
%
|
|
3,293.9
|
|
|
374.9
|
|
|
11.4
|
%
|
||||
South Central
|
|
3,040.8
|
|
|
389.6
|
|
|
12.8
|
%
|
|
2,733.2
|
|
|
365.2
|
|
|
13.4
|
%
|
||||
Southwest
|
|
557.5
|
|
|
69.8
|
|
|
12.5
|
%
|
|
548.6
|
|
|
69.1
|
|
|
12.6
|
%
|
||||
West
|
|
2,528.1
|
|
|
248.8
|
|
|
9.8
|
%
|
|
2,676.0
|
|
|
356.6
|
|
|
13.3
|
%
|
||||
|
|
$
|
12,175.0
|
|
|
$
|
1,316.6
|
|
|
10.8
|
%
|
|
$
|
11,231.3
|
|
|
$
|
1,379.5
|
|
|
12.3
|
%
|
(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 June 30, 2019
|
||||||||||||||||||
|
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
|
$
|
753.7
|
|
|
$
|
534.2
|
|
|
$
|
10.4
|
|
|
$
|
2.5
|
|
|
$
|
1,300.8
|
|
Midwest
|
430.4
|
|
|
384.9
|
|
|
1.8
|
|
|
1.4
|
|
|
818.5
|
|
|||||
Southeast
|
1,516.0
|
|
|
1,181.3
|
|
|
34.4
|
|
|
1.4
|
|
|
2,733.1
|
|
|||||
South Central
|
1,350.5
|
|
|
1,309.7
|
|
|
0.3
|
|
|
—
|
|
|
2,660.5
|
|
|||||
Southwest
|
241.8
|
|
|
347.2
|
|
|
1.7
|
|
|
15.5
|
|
|
606.2
|
|
|||||
West
|
1,306.8
|
|
|
982.1
|
|
|
15.5
|
|
|
21.3
|
|
|
2,325.7
|
|
|||||
Corporate and unallocated (1)
|
124.3
|
|
|
108.0
|
|
|
0.8
|
|
|
0.5
|
|
|
233.6
|
|
|||||
|
$
|
5,723.5
|
|
|
$
|
4,847.4
|
|
|
$
|
64.9
|
|
|
$
|
42.6
|
|
|
$
|
10,678.4
|
|
|
As of September 30, 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
|
$
|
648.6
|
|
|
$
|
529.5
|
|
|
$
|
10.1
|
|
|
$
|
3.8
|
|
|
$
|
1,192.0
|
|
Midwest
|
369.9
|
|
|
208.0
|
|
|
1.8
|
|
|
3.4
|
|
|
583.1
|
|
|||||
Southeast
|
1,388.4
|
|
|
1,248.5
|
|
|
31.5
|
|
|
0.3
|
|
|
2,668.7
|
|
|||||
South Central
|
1,222.5
|
|
|
1,216.3
|
|
|
0.3
|
|
|
0.3
|
|
|
2,439.4
|
|
|||||
Southwest
|
194.8
|
|
|
303.2
|
|
|
1.7
|
|
|
—
|
|
|
499.7
|
|
|||||
West
|
1,146.5
|
|
|
1,076.1
|
|
|
14.4
|
|
|
31.5
|
|
|
2,268.5
|
|
|||||
Corporate and unallocated (1)
|
113.7
|
|
|
107.7
|
|
|
1.4
|
|
|
0.9
|
|
|
223.7
|
|
|||||
|
$
|
5,084.4
|
|
|
$
|
4,689.3
|
|
|
$
|
61.2
|
|
|
$
|
40.2
|
|
|
$
|
9,875.1
|
|
(1)
|
Corporate and unallocated inventory consists primarily of capitalized interest and property taxes.
|
|
As of June 30, 2019
|
|||||||||
|
Land/Lots
Owned (1)
|
|
Lots Controlled
Under
Land and Lot
Purchase
Contracts (2)(3)
|
|
Total
Land/Lots
Owned and
Controlled
|
|
Homes
in
Inventory (4)
|
|||
East
|
10,200
|
|
|
28,100
|
|
|
38,300
|
|
|
4,000
|
Midwest
|
7,900
|
|
|
12,100
|
|
|
20,000
|
|
|
2,200
|
Southeast
|
32,600
|
|
|
76,800
|
|
|
109,400
|
|
|
8,900
|
South Central
|
41,000
|
|
|
50,400
|
|
|
91,400
|
|
|
8,400
|
Southwest
|
7,000
|
|
|
4,300
|
|
|
11,300
|
|
|
1,500
|
West
|
19,800
|
|
|
12,800
|
|
|
32,600
|
|
|
4,200
|
|
118,500
|
|
|
184,500
|
|
|
303,000
|
|
|
29,200
|
|
39
|
%
|
|
61
|
%
|
|
100
|
%
|
|
|
|
As of September 30, 2018
|
|||||||||
|
Land/Lots
Owned (1)
|
|
Lots Controlled
Under
Land and Lot
Purchase
Contracts (2)(3)
|
|
Total
Land/Lots
Owned and
Controlled
|
|
Homes
in
Inventory (4)
|
|||
East
|
11,900
|
|
|
19,400
|
|
|
31,300
|
|
|
3,700
|
Midwest
|
3,800
|
|
|
9,300
|
|
|
13,100
|
|
|
1,700
|
Southeast
|
37,100
|
|
|
70,400
|
|
|
107,500
|
|
|
8,900
|
South Central
|
42,900
|
|
|
45,700
|
|
|
88,600
|
|
|
8,400
|
Southwest
|
7,600
|
|
|
5,000
|
|
|
12,600
|
|
|
1,400
|
West
|
21,000
|
|
|
14,400
|
|
|
35,400
|
|
|
3,800
|
|
124,300
|
|
|
164,200
|
|
|
288,500
|
|
|
27,900
|
|
43
|
%
|
|
57
|
%
|
|
100
|
%
|
|
|
(1)
|
Land/lots owned include approximately 33,800 and 35,100 owned lots that are fully developed and ready for home construction at June 30, 2019 and September 30, 2018, respectively. Land/lots owned also include land held for development representing 1,800 and 1,700 lots at June 30, 2019 and September 30, 2018, respectively.
|
(2)
|
The total remaining purchase price of lots controlled through land and lot purchase contracts at June 30, 2019 and September 30, 2018 was $7.2 billion and $6.5 billion, respectively, secured by earnest money deposits of $493.1 million and $401.1 million, respectively. The total remaining purchase price of lots controlled through land and lot purchase contracts at June 30, 2019 included $1.0 billion related to lot purchase contracts with Forestar, secured by $84.0 million of earnest money. The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2018 included $522.2 million related to lot purchase contracts with Forestar, secured by $48.0 million of earnest money.
|
(3)
|
Lots controlled at June 30, 2019 include approximately 24,100 lots owned or controlled by Forestar, 13,900 of which our homebuilding divisions have under contract to purchase and 10,200 of which our homebuilding divisions have a right of first offer to purchase. Of these, approximately 8,300 lots were in our Southeast region, 5,500 lots were in our South Central region, 4,400 lots were in our West region, 2,300 lots were in our East region, 2,200 lots were in our Southwest region and 1,400 lots were in our Midwest region. Lots controlled at September 30, 2018 included approximately 13,600 lots owned or controlled by Forestar, 5,500 of which our homebuilding divisions had under contract to purchase and 8,100 of which our homebuilding divisions had a right of first offer to purchase.
|
(4)
|
Approximately 14,800 and 16,400 of our homes in inventory were unsold at June 30, 2019 and September 30, 2018, respectively. At June 30, 2019, approximately 5,600 of our unsold homes were completed, of which approximately 500 homes had been completed for more than six months. At September 30, 2018, approximately 4,000 of our unsold homes were completed, of which approximately 400 homes had been completed for more than six months. Homes in inventory exclude approximately 1,800 model homes at both June 30, 2019 and September 30, 2018.
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, 2019 |
|
For the Period from
October 5, 2017 to June 30, 2018 |
||||||||||
|
2019
|
|
2018
|
|
|
||||||||||
|
(In millions)
|
||||||||||||||
Residential land and lot sales
|
$
|
87.6
|
|
|
$
|
23.3
|
|
|
$
|
171.6
|
|
|
$
|
67.1
|
|
Commercial lot sales
|
—
|
|
|
—
|
|
|
18.5
|
|
|
9.1
|
|
||||
Other
|
0.6
|
|
|
0.3
|
|
|
1.9
|
|
|
0.8
|
|
||||
Total revenues
|
$
|
88.2
|
|
|
$
|
23.6
|
|
|
$
|
192.0
|
|
|
$
|
77.0
|
|
Cost of sales
|
75.3
|
|
|
10.0
|
|
|
149.6
|
|
|
45.5
|
|
||||
Selling, general and administrative expense
|
7.9
|
|
|
6.5
|
|
|
19.8
|
|
|
25.6
|
|
||||
Gain on sale of assets
|
(1.5
|
)
|
|
(1.3
|
)
|
|
(2.4
|
)
|
|
(4.0
|
)
|
||||
Interest expense
|
—
|
|
|
1.6
|
|
|
—
|
|
|
5.8
|
|
||||
Other (income) expense
|
(1.9
|
)
|
|
(3.7
|
)
|
|
(4.6
|
)
|
|
(15.0
|
)
|
||||
Income before income taxes
|
$
|
8.4
|
|
|
$
|
10.5
|
|
|
$
|
29.6
|
|
|
$
|
19.1
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, 2019 |
|
For the Period from
October 5, 2017 to June 30, 2018 |
||||||||||
|
2019
|
|
2018
|
|
|
||||||||||
|
($ in millions)
|
||||||||||||||
Total residential single-family lots sold
|
1,158
|
|
|
297
|
|
|
2,224
|
|
|
856
|
|
||||
Residential single-family lots sold to D.R. Horton
|
995
|
|
|
141
|
|
|
1,903
|
|
|
324
|
|
||||
Residential lot sales revenues from sales to D.R. Horton
|
$
|
73.2
|
|
|
$
|
6.8
|
|
|
$
|
141.8
|
|
|
$
|
15.3
|
|
Residential tract acres sold to D.R. Horton
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
||||
Residential land sales revenues from sales to D.R. Horton
|
$
|
—
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||
Number of first-lien loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
9,235
|
|
|
7,837
|
|
|
18
|
%
|
|
22,997
|
|
|
20,897
|
|
|
10
|
%
|
Number of homes closed by D.R. Horton
|
|
15,971
|
|
|
14,114
|
|
|
13
|
%
|
|
40,951
|
|
|
37,183
|
|
|
10
|
%
|
Percentage of D.R. Horton homes financed by DHI Mortgage
|
|
58
|
%
|
|
56
|
%
|
|
|
|
56
|
%
|
|
56
|
%
|
|
|
||
Number of total loans originated or brokered by DHI Mortgage for D.R. Horton homebuyers
|
|
9,264
|
|
|
7,855
|
|
|
18
|
%
|
|
23,061
|
|
|
20,982
|
|
|
10
|
%
|
Total number of loans originated or brokered by DHI Mortgage
|
|
9,451
|
|
|
8,079
|
|
|
17
|
%
|
|
23,511
|
|
|
21,645
|
|
|
9
|
%
|
Captive business percentage
|
|
98
|
%
|
|
97
|
%
|
|
|
|
98
|
%
|
|
97
|
%
|
|
|
||
Loans sold by DHI Mortgage to third parties
|
|
8,901
|
|
|
7,950
|
|
|
12
|
%
|
|
22,897
|
|
|
21,050
|
|
|
9
|
%
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||||
Loan origination fees
|
|
$
|
3.5
|
|
|
$
|
4.0
|
|
|
(13
|
)%
|
|
$
|
10.2
|
|
|
$
|
11.3
|
|
|
(10
|
)%
|
Sale of servicing rights and gains from sale of mortgage loans
|
|
85.4
|
|
|
68.0
|
|
|
26
|
%
|
|
218.3
|
|
|
193.7
|
|
|
13
|
%
|
||||
Other revenues
|
|
6.6
|
|
|
4.8
|
|
|
38
|
%
|
|
16.3
|
|
|
13.4
|
|
|
22
|
%
|
||||
Total mortgage operations revenues
|
|
95.5
|
|
|
76.8
|
|
|
24
|
%
|
|
244.8
|
|
|
218.4
|
|
|
12
|
%
|
||||
Title policy premiums
|
|
24.1
|
|
|
20.3
|
|
|
19
|
%
|
|
61.6
|
|
|
54.7
|
|
|
13
|
%
|
||||
Total revenues
|
|
119.6
|
|
|
97.1
|
|
|
23
|
%
|
|
306.4
|
|
|
273.1
|
|
|
12
|
%
|
||||
General and administrative expense
|
|
76.4
|
|
|
71.1
|
|
|
7
|
%
|
|
213.4
|
|
|
199.6
|
|
|
7
|
%
|
||||
Other (income) expense
|
|
(4.9
|
)
|
|
(4.3
|
)
|
|
14
|
%
|
|
(12.6
|
)
|
|
(10.5
|
)
|
|
20
|
%
|
||||
Financial services pre-tax income
|
|
$
|
48.1
|
|
|
$
|
30.3
|
|
|
59
|
%
|
|
$
|
105.6
|
|
|
$
|
84.0
|
|
|
26
|
%
|
|
|
Percentages of
Financial Services Revenues
|
||||||||||
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
General and administrative expense
|
|
63.9
|
%
|
|
73.2
|
%
|
|
69.6
|
%
|
|
73.1
|
%
|
Other (income) expense
|
|
(4.1
|
)%
|
|
(4.4
|
)%
|
|
(4.1
|
)%
|
|
(3.8
|
)%
|
Financial services pre-tax income
|
|
40.2
|
%
|
|
31.2
|
%
|
|
34.5
|
%
|
|
30.8
|
%
|
•
|
the cyclical nature of the homebuilding industry and changes in economic, real estate and other conditions;
|
•
|
constriction of the credit and public capital 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;
|
•
|
the impact of an inflationary, deflationary or higher interest rate environment;
|
•
|
home warranty and construction defect claims;
|
•
|
the effects of health and safety incidents;
|
•
|
the effects of negative publicity;
|
•
|
supply shortages and other risks of acquiring land, building materials and skilled labor;
|
•
|
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 and land development 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.
|
|
|
Three Months
Ending September 30, 2019 |
|
Fiscal Year Ending September 30,
|
|
Fair Value at June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
||||||||||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed rate
|
|
$
|
13.8
|
|
|
$
|
697.0
|
|
|
$
|
403.3
|
|
|
$
|
350.4
|
|
|
$
|
700.4
|
|
|
$
|
351.5
|
|
|
$
|
—
|
|
|
$
|
2,516.4
|
|
|
$
|
2,610.0
|
|
Average interest rate
|
|
4.6
|
%
|
|
3.8
|
%
|
|
2.8
|
%
|
|
4.5
|
%
|
|
5.5
|
%
|
|
8.6
|
%
|
|
—
|
%
|
|
4.9
|
%
|
|
|
||||||||||
Variable rate
|
|
$
|
796.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
946.5
|
|
|
$
|
946.5
|
|
Average interest rate
|
|
4.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.0
|
%
|
|
|
|
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)
|
||||||
April 1, 2019 - April 30, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
159.3
|
|
May 1, 2019 - May 31, 2019
|
3,000,000
|
|
|
43.75
|
|
|
3,000,000
|
|
|
28.0
|
|
||
June 1, 2019 - June 30, 2019
|
658,462
|
|
|
42.52
|
|
|
658,462
|
|
|
—
|
|
||
Total
|
3,658,462
|
|
|
$
|
43.53
|
|
|
3,658,462
|
|
|
$
|
—
|
|
|
*
|
|
Filed or furnished herewith.
|
|
**
|
|
Submitted electronically herewith.
|
|
|
|
D.R. HORTON, INC.
|
Date:
|
July 30, 2019
|
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)
|
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/ DAVID V. AULD
|
|
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/ BILL W. WHEAT
|
|
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:
|
|
July 30, 2019
|
|
|
/s/ DAVID V. AULD
|
|
|
|
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:
|
|
July 30, 2019
|
|
|
/s/ BILL W. WHEAT
|
|
|
|
By:
|
|
Bill W. Wheat
Executive Vice President and
Chief Financial Officer
|