HORTON D R INC /DE/DHI
HORTON D R INC /DE/ Segments Disclosure
SEGMENT INFORMATION
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The Company’s operating segments are its 92 homebuilding divisions, its rental operations, its majority-owned Forestar residential lot development operations, its financial services operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services segment and its rental operations segment. The accounting policies of the reporting segments are described throughout Note A.
Homebuilding
The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states in which the Company has homebuilding operations are as follows:
| Northwest: | Colorado, Oregon, Utah and Washington | ||||||||||
| Southwest: | Arizona, California, Hawaii, Nevada and New Mexico | ||||||||||
| South Central: | Arkansas, Oklahoma and Texas | ||||||||||
| Southeast: | Alabama, Florida, Louisiana and Mississippi | ||||||||||
| East: | Georgia, North Carolina, South Carolina and Tennessee | ||||||||||
| North: | Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin | ||||||||||
Homebuilding is the Company’s core business, generating 92% of consolidated revenues in fiscal 2025 and 2024 and 90% of consolidated revenues in fiscal 2023. The Company’s homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 126 markets across 36 states. Most of the revenue generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale of land and lots.
Rental
The Company’s rental segment consists of single-family and multi-family rental operations. The single-family rental operations construct and lease single-family homes within a community and market each community for a bulk sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties, the majority of which are apartment communities.
Forestar
The Forestar segment is a residential lot development company with operations in 64 markets across 23 states. The Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance.
Financial Services
The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers, typically within 60 days of origination.
Other
In addition to its homebuilding, rental, Forestar and financial services operations, the Company engages in other business activities through its subsidiaries. The Company conducts insurance-related operations, owns water rights and other water-related assets and owns non-residential real estate including ranch land and improvements. The results of these operations are immaterial for separate reporting and therefore are grouped together and presented in the Eliminations and Other column in the tables that follow.
The Company’s Chief Executive Officer, Chief Operating Officer and Chief Financial Officer are its Chief Operating Decision Makers (CODMs). The CODMs evaluate segment performance primarily based on revenues, pre-tax income and inventories for all reporting segments. Revenues, pre-tax income and inventories at the segment level are compared to forecasted results to evaluate the performance of each segment and assist in decision making regarding capital allocation between segments. The tables that follow present financial information pertaining to the Company’s reporting segments.
| September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Homebuilding | Rental | Forestar | Financial Services | Eliminations and Other (1) | Consolidated | |||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,210.5 | $ | 140.8 | $ | 379.2 | $ | 244.5 | $ | 10.4 | $ | 2,985.4 | ||||||||||||||||||||||||||
Restricted cash | 25.5 | 2.5 | — | 19.9 | — | 47.9 | ||||||||||||||||||||||||||||||||
Inventories: | ||||||||||||||||||||||||||||||||||||||
| Construction in progress and finished homes | 7,743.7 | — | — | — | (95.2) | 7,648.5 | ||||||||||||||||||||||||||||||||
| Residential land and lots — developed and under development | 12,513.1 | — | 2,465.1 | — | (282.4) | 14,695.8 | ||||||||||||||||||||||||||||||||
| Land held for development | 38.3 | — | 180.0 | — | — | 218.3 | ||||||||||||||||||||||||||||||||
| Land held for sale | 21.4 | — | — | — | — | 21.4 | ||||||||||||||||||||||||||||||||
| Rental properties | — | 2,710.4 | — | — | (7.1) | 2,703.3 | ||||||||||||||||||||||||||||||||
| 20,316.5 | 2,710.4 | 2,645.1 | — | (384.7) | 25,287.3 | |||||||||||||||||||||||||||||||||
Mortgage loans held for sale | — | — | — | 2,566.5 | — | 2,566.5 | ||||||||||||||||||||||||||||||||
Deferred income taxes, net | 125.7 | (42.2) | — | — | (39.0) | 44.5 | ||||||||||||||||||||||||||||||||
Property and equipment, net | 543.0 | 0.6 | 8.1 | 4.3 | 22.9 | 578.9 | ||||||||||||||||||||||||||||||||
Other assets | 3,344.1 | 38.9 | 104.6 | 220.6 | 89.0 | 3,797.2 | ||||||||||||||||||||||||||||||||
Goodwill | 134.3 | — | — | — | 29.2 | 163.5 | ||||||||||||||||||||||||||||||||
| $ | 26,699.6 | $ | 2,851.0 | $ | 3,137.0 | $ | 3,055.8 | $ | (272.2) | $ | 35,471.2 | |||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 1,016.8 | $ | 230.6 | $ | 71.0 | $ | 0.7 | $ | (97.2) | $ | 1,221.9 | ||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 3,122.1 | 34.7 | 494.3 | 294.7 | (404.2) | 3,541.6 | ||||||||||||||||||||||||||||||||
Notes payable | 3,154.4 | 600.0 | 802.8 | 1,408.3 | — | 5,965.5 | ||||||||||||||||||||||||||||||||
| $ | 7,293.3 | $ | 865.3 | $ | 1,368.1 | $ | 1,703.7 | $ | (501.4) | $ | 10,729.0 | |||||||||||||||||||||||||||
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
| September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Homebuilding | Rental | Forestar | Financial Services | Eliminations and Other (1) | Consolidated | |||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,623.0 | $ | 157.6 | $ | 481.2 | $ | 242.3 | $ | 12.3 | $ | 4,516.4 | ||||||||||||||||||||||||||
| Restricted cash | 4.8 | 2.2 | — | 20.6 | — | 27.6 | ||||||||||||||||||||||||||||||||
| Inventories: | ||||||||||||||||||||||||||||||||||||||
| Construction in progress and finished homes | 8,986.1 | — | — | — | (110.3) | 8,875.8 | ||||||||||||||||||||||||||||||||
| Residential land and lots — developed and under development | 11,011.7 | — | 2,126.1 | — | (189.7) | 12,948.1 | ||||||||||||||||||||||||||||||||
| Land held for development | 20.5 | — | 140.1 | — | — | 160.6 | ||||||||||||||||||||||||||||||||
| Land held for sale | 12.7 | — | — | — | — | 12.7 | ||||||||||||||||||||||||||||||||
| Rental properties | — | 2,902.4 | — | — | 3.6 | 2,906.0 | ||||||||||||||||||||||||||||||||
| 20,031.0 | 2,902.4 | 2,266.2 | — | (296.4) | 24,903.2 | |||||||||||||||||||||||||||||||||
| Mortgage loans held for sale | — | — | — | 2,477.5 | — | 2,477.5 | ||||||||||||||||||||||||||||||||
| Deferred income taxes, net | 211.6 | (14.7) | — | — | (29.4) | 167.5 | ||||||||||||||||||||||||||||||||
| Property and equipment, net | 500.2 | 1.1 | 7.1 | 4.0 | 18.6 | 531.0 | ||||||||||||||||||||||||||||||||
| Other assets | 2,976.5 | 74.5 | 85.6 | 212.3 | (31.3) | 3,317.6 | ||||||||||||||||||||||||||||||||
| Goodwill | 134.3 | — | — | — | 29.2 | 163.5 | ||||||||||||||||||||||||||||||||
| $ | 27,481.4 | $ | 3,123.1 | $ | 2,840.1 | $ | 2,956.7 | $ | (297.0) | $ | 36,104.3 | |||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||
| Accounts payable | $ | 1,046.1 | $ | 474.2 | $ | 85.9 | $ | 0.8 | $ | (261.5) | $ | 1,345.5 | ||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 2,552.0 | 67.8 | 452.8 | 234.6 | (290.5) | 3,016.7 | ||||||||||||||||||||||||||||||||
| Notes payable | 2,926.8 | 750.7 | 706.4 | 1,533.8 | — | 5,917.7 | ||||||||||||||||||||||||||||||||
| $ | 6,524.9 | $ | 1,292.7 | $ | 1,245.1 | $ | 1,769.2 | $ | (552.0) | $ | 10,279.9 | |||||||||||||||||||||||||||
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
| Year Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Homebuilding | Rental | Forestar | Financial Services | Eliminations and Other (1) | Consolidated | |||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||
Home sales | $ | 31,432.0 | $ | — | $ | — | $ | — | $ | — | $ | 31,432.0 | ||||||||||||||||||||||||||
Land/lot sales and other | 83.5 | — | 1,662.4 | — | (1,409.1) | 336.8 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 1,640.4 | — | — | — | 1,640.4 | ||||||||||||||||||||||||||||||||
Financial services | — | — | — | 841.2 | — | 841.2 | ||||||||||||||||||||||||||||||||
| 31,515.5 | 1,640.4 | 1,662.4 | 841.2 | (1,409.1) | 34,250.4 | |||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||
Home sales (2) | 24,664.9 | — | — | — | (227.3) | 24,437.6 | ||||||||||||||||||||||||||||||||
Land/lot sales and other | 50.1 | — | 1,291.7 | — | (1,132.5) | 209.3 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 1,333.4 | — | — | (4.2) | 1,329.2 | ||||||||||||||||||||||||||||||||
Inventory and land option charges | 144.2 | 7.3 | 7.2 | — | (0.6) | 158.1 | ||||||||||||||||||||||||||||||||
| 24,859.2 | 1,340.7 | 1,298.9 | — | (1,364.6) | 26,134.2 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 2,623.1 | 245.2 | 154.4 | 651.4 | 17.9 | 3,692.0 | ||||||||||||||||||||||||||||||||
Other (income) expense (3) | (101.7) | (115.5) | (10.2) | (88.9) | 0.6 | (315.7) | ||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 4,134.9 | $ | 170.0 | $ | 219.3 | $ | 278.7 | $ | (63.0) | $ | 4,739.9 | ||||||||||||||||||||||||||
| Summary Cash Flow Information | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 93.4 | $ | 2.0 | $ | 3.5 | $ | 1.8 | $ | 0.6 | $ | 101.3 | ||||||||||||||||||||||||||
| Cash provided by (used in) operating activities | $ | 3,407.6 | $ | 105.5 | $ | (197.7) | $ | 173.2 | $ | (67.7) | $ | 3,420.9 | ||||||||||||||||||||||||||
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(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
| Year Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Homebuilding | Rental | Forestar | Financial Services | Eliminations and Other (1) | Consolidated | |||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||
Home sales | $ | 33,903.6 | $ | — | $ | — | $ | — | $ | — | $ | 33,903.6 | ||||||||||||||||||||||||||
Land/lot sales and other | 58.2 | — | 1,509.4 | — | (1,237.4) | 330.2 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 1,685.1 | — | — | — | 1,685.1 | ||||||||||||||||||||||||||||||||
Financial services | — | — | — | 882.5 | — | 882.5 | ||||||||||||||||||||||||||||||||
| 33,961.8 | 1,685.1 | 1,509.4 | 882.5 | (1,237.4) | 36,801.4 | |||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||
Home sales (2) | 25,952.1 | — | — | — | (262.9) | 25,689.2 | ||||||||||||||||||||||||||||||||
Land/lot sales and other | 40.0 | — | 1,145.9 | — | (989.8) | 196.1 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 1,315.9 | — | — | (14.0) | 1,301.9 | ||||||||||||||||||||||||||||||||
Inventory and land option charges | 68.9 | 5.8 | 4.1 | — | — | 78.8 | ||||||||||||||||||||||||||||||||
| 26,061.0 | 1,321.7 | 1,150.0 | — | (1,266.7) | 27,266.0 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 2,553.3 | 236.2 | 118.5 | 672.4 | 19.1 | 3,599.5 | ||||||||||||||||||||||||||||||||
Other (income) expense (3) | (107.6) | (101.5) | (29.2) | (101.1) | (9.4) | (348.8) | ||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 5,455.1 | $ | 228.7 | $ | 270.1 | $ | 311.2 | $ | 19.6 | $ | 6,284.7 | ||||||||||||||||||||||||||
| Summary Cash Flow Information | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 79.4 | $ | 2.4 | $ | 3.0 | $ | 1.8 | $ | 0.5 | $ | 87.1 | ||||||||||||||||||||||||||
| Cash provided by (used in) operating activities | $ | 2,239.0 | $ | (231.0) | $ | (158.6) | $ | 281.6 | $ | 58.8 | $ | 2,189.8 | ||||||||||||||||||||||||||
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(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
| Year Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
| Homebuilding | Rental | Forestar | Financial Services | Eliminations and Other (1) | Consolidated | |||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||
Home sales | $ | 31,641.0 | $ | — | $ | — | $ | — | $ | — | $ | 31,641.0 | ||||||||||||||||||||||||||
Land/lot sales and other | 102.2 | — | 1,436.9 | — | (1,126.7) | 412.4 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 2,605.5 | — | — | — | 2,605.5 | ||||||||||||||||||||||||||||||||
Financial services | — | — | — | 801.5 | — | 801.5 | ||||||||||||||||||||||||||||||||
| 31,743.2 | 2,605.5 | 1,436.9 | 801.5 | (1,126.7) | 35,460.4 | |||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||
Home sales (2) | 24,201.3 | — | — | — | (248.5) | 23,952.8 | ||||||||||||||||||||||||||||||||
Land/lot sales and other | 53.8 | — | 1,108.9 | — | (959.9) | 202.8 | ||||||||||||||||||||||||||||||||
| Rental property sales | — | 1,886.8 | — | — | (12.7) | 1,874.1 | ||||||||||||||||||||||||||||||||
Inventory and land option charges | 60.7 | 6.7 | 24.0 | — | (11.1) | 80.3 | ||||||||||||||||||||||||||||||||
| 24,315.8 | 1,893.5 | 1,132.9 | — | (1,232.2) | 26,110.0 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 2,239.9 | 290.2 | 97.7 | 594.9 | 26.1 | 3,248.8 | ||||||||||||||||||||||||||||||||
Other (income) expense (3) | (78.8) | (102.4) | (15.3) | (76.7) | 60.1 | (213.1) | ||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 5,266.3 | $ | 524.2 | $ | 221.6 | $ | 283.3 | $ | 19.3 | $ | 6,314.7 | ||||||||||||||||||||||||||
| Summary Cash Flow Information | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 64.0 | $ | 2.4 | $ | 3.0 | $ | 2.1 | $ | 20.1 | $ | 91.6 | ||||||||||||||||||||||||||
| Cash provided by operating activities | $ | 3,078.4 | $ | 739.2 | $ | 364.1 | $ | 13.2 | $ | 109.2 | $ | 4,304.1 | ||||||||||||||||||||||||||
_______________
(1)Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2)Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to homebuyers.
(3)Other (income) expense primarily includes interest income but also consists of various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
Revenues, expenses and pre-tax income of the Company’s homebuilding segment are disaggregated into the individual homebuilding reporting segments in the tables below. Expenses maintained at the corporate level consist primarily of homebuilding interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.
| Homebuilding Results by Reporting Segment | Year Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Northwest | Southwest | South Central | Southeast | East | North | Total | ||||||||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Home sales | $ | 2,685.7 | $ | 4,573.7 | $ | 6,885.4 | $ | 6,939.4 | $ | 6,131.1 | $ | 4,216.7 | $ | 31,432.0 | ||||||||||||||||||||||||||||||
Land/lot sales and other | 0.5 | 21.6 | 13.9 | 31.8 | 6.9 | 8.8 | 83.5 | |||||||||||||||||||||||||||||||||||||
| 2,686.2 | 4,595.3 | 6,899.3 | 6,971.2 | 6,138.0 | 4,225.5 | 31,515.5 | ||||||||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||||||||
| Home sales | 2,075.7 | 3,695.4 | 5,350.7 | 5,510.1 | 4,768.1 | 3,264.9 | 24,664.9 | |||||||||||||||||||||||||||||||||||||
Land/lot sales and other | 0.2 | 19.9 | 10.0 | 9.0 | 4.8 | 6.2 | 50.1 | |||||||||||||||||||||||||||||||||||||
Inventory and land option charges | 3.8 | 16.7 | 36.7 | 45.4 | 29.2 | 12.4 | 144.2 | |||||||||||||||||||||||||||||||||||||
| 2,079.7 | 3,732.0 | 5,397.4 | 5,564.5 | 4,802.1 | 3,283.5 | 24,859.2 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 220.0 | 361.9 | 558.3 | 587.8 | 522.1 | 373.0 | 2,623.1 | |||||||||||||||||||||||||||||||||||||
| Other (income) expense | (9.2) | (15.7) | (21.0) | (21.0) | (20.2) | (14.6) | (101.7) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 395.7 | $ | 517.1 | $ | 964.6 | $ | 839.9 | $ | 834.0 | $ | 583.6 | $ | 4,134.9 | ||||||||||||||||||||||||||||||
| Homebuilding Results by Reporting Segment | Year Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Northwest | Southwest | South Central | Southeast | East | North | Total | ||||||||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Home sales | $ | 2,744.6 | $ | 4,913.3 | $ | 7,639.6 | $ | 8,853.4 | $ | 6,070.9 | $ | 3,681.8 | $ | 33,903.6 | ||||||||||||||||||||||||||||||
Land/lot sales and other | 17.1 | 1.4 | 12.5 | 23.4 | 2.2 | 1.6 | 58.2 | |||||||||||||||||||||||||||||||||||||
| 2,761.7 | 4,914.7 | 7,652.1 | 8,876.8 | 6,073.1 | 3,683.4 | 33,961.8 | ||||||||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||||||||
| Home sales | 2,121.2 | 3,862.5 | 5,765.4 | 6,790.5 | 4,534.8 | 2,877.7 | 25,952.1 | |||||||||||||||||||||||||||||||||||||
Land/lot sales and other | 14.8 | 0.1 | 8.1 | 15.9 | 0.6 | 0.5 | 40.0 | |||||||||||||||||||||||||||||||||||||
Inventory and land option charges | 4.4 | 12.7 | 11.4 | 18.4 | 11.9 | 10.1 | 68.9 | |||||||||||||||||||||||||||||||||||||
| 2,140.4 | 3,875.3 | 5,784.9 | 6,824.8 | 4,547.3 | 2,888.3 | 26,061.0 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 211.1 | 354.1 | 557.0 | 634.4 | 484.6 | 312.1 | 2,553.3 | |||||||||||||||||||||||||||||||||||||
| Other (income) expense | (10.6) | (18.2) | (21.2) | (23.8) | (18.4) | (15.4) | (107.6) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 420.8 | $ | 703.5 | $ | 1,331.4 | $ | 1,441.4 | $ | 1,059.6 | $ | 498.4 | $ | 5,455.1 | ||||||||||||||||||||||||||||||
| Homebuilding Results by Reporting Segment | Year Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||
| Northwest | Southwest | South Central | Southeast | East | North | Total | ||||||||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Home sales | $ | 2,574.1 | $ | 4,246.7 | $ | 7,598.1 | $ | 8,756.5 | $ | 5,323.9 | $ | 3,141.7 | $ | 31,641.0 | ||||||||||||||||||||||||||||||
Land/lot sales and other | 8.3 | 36.1 | 14.5 | 4.3 | 1.4 | 37.6 | 102.2 | |||||||||||||||||||||||||||||||||||||
| 2,582.4 | 4,282.8 | 7,612.6 | 8,760.8 | 5,325.3 | 3,179.3 | 31,743.2 | ||||||||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||||||||
| Home sales | 2,003.6 | 3,451.2 | 5,721.6 | 6,485.5 | 3,992.7 | 2,546.7 | 24,201.3 | |||||||||||||||||||||||||||||||||||||
Land/lot sales and other | 7.1 | 28.8 | 10.7 | (5.1) | 0.2 | 12.1 | 53.8 | |||||||||||||||||||||||||||||||||||||
Inventory and land option charges | 6.6 | 11.3 | 7.6 | 14.6 | 8.4 | 12.2 | 60.7 | |||||||||||||||||||||||||||||||||||||
| 2,017.3 | 3,491.3 | 5,739.9 | 6,495.0 | 4,001.3 | 2,571.0 | 24,315.8 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 182.2 | 315.3 | 500.9 | 574.7 | 399.5 | 267.3 | 2,239.9 | |||||||||||||||||||||||||||||||||||||
| Other (income) expense | (8.2) | (13.1) | (16.5) | (20.0) | (11.2) | (9.8) | (78.8) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 391.1 | $ | 489.3 | $ | 1,388.3 | $ | 1,711.1 | $ | 935.7 | $ | 350.8 | $ | 5,266.3 | ||||||||||||||||||||||||||||||
The Company’s total inventories are disaggregated into the individual reporting segments in the table below. Inventories are the only assets included in the measure of segment assets used by the Company’s chief operating decision makers.
| Inventories by Reporting Segment | September 30, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Homebuilding | |||||||||||||||||
| Northwest | $ | 1,891.8 | $ | 1,935.2 | $ | 1,907.5 | |||||||||||
| Southwest | 3,068.5 | 3,278.9 | 3,133.0 | ||||||||||||||
| South Central | 3,931.9 | 3,728.0 | 3,810.5 | ||||||||||||||
| Southeast | 4,061.8 | 4,284.5 | 3,958.5 | ||||||||||||||
| East | 4,397.7 | 3,978.2 | 3,024.7 | ||||||||||||||
| North | 2,637.6 | 2,551.2 | 2,078.0 | ||||||||||||||
Corporate and unallocated (1) | 327.2 | 275.0 | 243.6 | ||||||||||||||
| Total Homebuilding | 20,316.5 | 20,031.0 | 18,155.8 | ||||||||||||||
| Rental | 2,710.4 | 2,902.4 | 2,708.4 | ||||||||||||||
| Forestar | 2,645.1 | 2,266.2 | 1,790.3 | ||||||||||||||
| Eliminations and other (2) | (384.7) | (296.4) | (281.2) | ||||||||||||||
| Consolidated inventories | $ | 25,287.3 | $ | 24,903.2 | $ | 22,373.3 | |||||||||||
_______________
(1)Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes.
(2)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.