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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From              To             
Commission File Number: 1-14122
dhi-20220630_g1.jpg
D.R. Horton, Inc.
(Exact name of registrant as specified in its charter)
Delaware75-2386963
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1341 Horton Circle
Arlington, Texas 76011
(Address of principal executive offices) (Zip code)
(817) 390-8200
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $.01 per shareDHINew York Stock Exchange
5.750% Senior Notes due 2023DHI 23ANew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerýAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  ý
As of July 19, 2022, there were 347,481,487 shares of the registrant’s common stock, par value $.01 per share, outstanding.



D.R. HORTON, INC. AND SUBSIDIARIES
FORM 10-Q
INDEX
 
 Page

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30,
2022
September 30,
2021
(In millions)
(Unaudited)
ASSETS
Cash and cash equivalents$1,655.7 $3,210.4 
Restricted cash28.6 26.8 
Total cash, cash equivalents and restricted cash1,684.3 3,237.2 
Inventories:
Construction in progress and finished homes10,803.1 7,739.2 
Residential land and lots — developed and under development8,787.6 7,781.8 
Land held for development124.5 110.9 
Land held for sale32.7 25.4 
Rental properties1,951.0 821.8 
Total inventory21,698.9 16,479.1 
Mortgage loans held for sale2,082.5 2,027.3 
Deferred income taxes, net of valuation allowance of $20.3 million and $4.2 million
at June 30, 2022 and September 30, 2021, respectively
157.4 155.3 
Property and equipment, net481.3 392.9 
Other assets2,602.0 1,560.6 
Goodwill163.5 163.5 
Total assets$28,869.9 $24,015.9 
LIABILITIES
Accounts payable$1,507.3 $1,177.0 
Accrued expenses and other liabilities2,951.9 2,210.3 
Notes payable5,975.2 5,412.4 
Total liabilities10,434.4 8,799.7 
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, 399,040,704 shares issued
and 347,377,037 shares outstanding at June 30, 2022 and 397,190,100 shares issued
and 356,015,843 shares outstanding at September 30, 2021
4.0 4.0 
Additional paid-in capital3,317.7 3,274.8 
Retained earnings17,631.6 13,644.3 
Treasury stock, 51,663,667 shares and 41,174,257 shares at June 30, 2022
and September 30, 2021, respectively, at cost
(2,890.8)(2,036.6)
Stockholders’ equity18,062.5 14,886.5 
Noncontrolling interests373.0 329.7 
Total equity18,435.5 15,216.2 
Total liabilities and equity$28,869.9 $24,015.9 



See accompanying notes to consolidated financial statements.

3

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS


Three Months Ended
June 30,
Nine Months Ended
June 30,
 2022202120222021
(In millions, except per share data)
(Unaudited)
Revenues$8,788.1 $7,284.6 $23,840.6 $19,664.9 
Cost of sales5,879.3 5,212.6 16,214.9 14,196.0 
Selling, general and administrative expense740.6 655.7 2,101.6 1,863.2 
Gain on sale of assets   (14.0)
Loss on extinguishment of debt 18.1  18.1 
Other (income) expense(15.1)(17.4)(39.8)(28.2)
Income before income taxes2,183.3 1,415.6 5,563.9 3,629.8 
Income tax expense524.0 299.1 1,316.5 784.1 
Net income1,659.3 1,116.5 4,247.4 2,845.7 
Net income attributable to noncontrolling interests11.5 1.0 21.7 8.9 
Net income attributable to D.R. Horton, Inc.$1,647.8 $1,115.5 $4,225.7 $2,836.8 
Basic net income per common share attributable to D.R. Horton, Inc.$4.70 $3.10 $11.96 $7.83 
Weighted average number of common shares350.8 359.7 353.3 362.2 
Diluted net income per common share attributable to D.R. Horton, Inc.$4.67 $3.06 $11.85 $7.73 
Adjusted weighted average number of common shares353.1 364.0 356.5 367.1 


























See accompanying notes to consolidated financial statements.

4

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF TOTAL EQUITY

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, 2021 (356,015,843 shares)
$4.0 $3,274.8 $13,644.3 $(2,036.6)$329.7 $15,216.2 
Net income  1,141.6  4.2 1,145.8 
Exercise of stock options (244,182 shares)
 5.8 — — — 5.8 
Stock issued under employee benefit plans (727,813 shares)
— 11.4 — — — 11.4 
Cash paid for shares withheld for taxes (33.0)   (33.0)
Stock-based compensation expense— 23.7 — — — 23.7 
Cash dividends declared ($0.225 per share)
— — (80.1)— — (80.1)
Repurchases of common stock (2,710,237 shares)
— — — (278.2)— (278.2)
Change of ownership interest in Forestar— — — — 1.8 1.8 
Balances at December 31, 2021 (354,277,601 shares)
$4.0 $3,282.7 $14,705.8 $(2,314.8)$335.7 $16,013.4 
Net income  1,436.3  6.0 1,442.3 
Exercise of stock options (4,533 shares)
 0.1 — — — 0.1 
Stock issued under employee benefit plans (773,301 shares)
— 4.9 — — — 4.9 
Cash paid for shares withheld for taxes (28.7)   (28.7)
Stock-based compensation expense— 30.9 — — — 30.9 
Cash dividends declared ($0.225 per share)
— — (79.1)— — (79.1)
Repurchases of common stock (3,100,000 shares)
— — — (266.0)— (266.0)
Change of ownership interest in Forestar— (1.2)— — 1.2  
Balances at March 31, 2022 (351,955,435 shares)
$4.0 $3,288.7 $16,063.0 $(2,580.8)$342.9 $17,117.8 
Net income  1,647.8  11.5 1,659.3 
Exercise of stock options (25,725 shares)
 0.6 — — — 0.6 
Stock issued under employee benefit plans (75,050 shares)
— 4.1 — — — 4.1 
Cash paid for shares withheld for taxes (0.1)   (0.1)
Stock-based compensation expense— 24.8 — — — 24.8 
Cash dividends declared ($0.225 per share)
— — (79.2)— — (79.2)
Repurchases of common stock (4,679,173 shares)
— — — (310.0)— (310.0)
Change of ownership interest in Forestar— (0.4)— — 0.4  
Noncontrolling interest acquired    18.2 18.2 
Balances at June 30, 2022 (347,377,037 shares)
$4.0 $3,317.7 $17,631.6 $(2,890.8)$373.0 $18,435.5 









See accompanying notes to consolidated financial statements.

5


D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (Continued)

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, 2020 (363,999,982 shares)
$3.9 $3,240.9 $9,757.8 $(1,162.6)$281.5 $12,121.5 
Net income  791.8  3.4 795.2 
Exercise of stock options (42,950 shares)
 0.9 — — — 0.9 
Stock issued under employee benefit plans (604,947 shares)
0.1  — — — 0.1 
Cash paid for shares withheld for taxes (26.3)   (26.3)
Stock-based compensation expense— 21.7 — — — 21.7 
Cash dividends declared ($0.20 per share)
— — (72.9)— — (72.9)
Repurchases of common stock (1,000,000 shares)
— — — (69.8)— (69.8)
Distributions to noncontrolling interests— — — — (0.1)(0.1)
Change of ownership interest in Forestar— (0.3)— — 0.3  
Balances at December 31, 2020 (363,647,879 shares)
$4.0 $3,236.9 $10,476.7 $(1,232.4)$285.1 $12,770.3 
Net income  929.5  4.4 933.9 
Exercise of stock options (391,047 shares)
 1.4 — — — 1.4 
Stock issued under employee benefit plans (916,209 shares)
— 3.2 — — — 3.2 
Cash paid for shares withheld for taxes (56.6)   (56.6)
Stock-based compensation expense— 25.4 — — — 25.4 
Cash dividends declared ($0.20 per share)
— — (72.7)— — (72.7)
Repurchases of common stock (4,475,624) shares)
— — — (350.4)— (350.4)
Change of ownership in Forestar and other— (1.9)— — 23.4 21.5 
Balances at March 31, 2021 (360,479,511 shares)
$4.0 $3,208.4 $11,333.5 $(1,582.8)$312.9 $13,276.0 
Net income  1,115.5  1.0 1,116.5 
Exercise of stock options (152,119 shares)
 1.4 — — — 1.4 
Stock issued under employee benefit plans (110,946 shares)
— 8.5 — — — 8.5 
Cash paid for shares withheld for taxes and other 4.4    4.4 
Stock-based compensation expense— 22.6 — — — 22.6 
Cash dividends declared ($0.20 per share)
— — (72.1)— — (72.1)
Repurchases of common stock (2,617,766 shares)
— — — (241.2)— (241.2)
Change of ownership interest in Forestar— 0.7 — — 8.2 8.9 
Balances at June 30, 2021 (358,124,810 shares)
$4.0 $3,246.0 $12,376.9 $(1,824.0)$322.1 $14,125.0 







See accompanying notes to consolidated financial statements.

6

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS


 Nine Months Ended June 30,
 20222021
(In millions)
(Unaudited)
OPERATING ACTIVITIES
Net income$4,247.4 $2,845.7 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization60.2 63.6 
Stock-based compensation expense79.4 69.7 
Deferred income taxes14.3 (2.1)
Inventory and land option charges30.6 17.6 
Gain on sale of assets (14.0)
Loss on extinguishment of debt 18.1 
Changes in operating assets and liabilities:
Increase in construction in progress and finished homes(3,063.9)(1,739.7)
Increase in residential land and lots –
developed, under development, held for development and held for sale
(1,005.1)(1,349.8)
Increase in rental properties(1,129.6)(196.0)
Increase in other assets(777.3)(368.2)
Increase in mortgage loans held for sale(55.2)(115.1)
Increase in accounts payable, accrued expenses and other liabilities1,036.4 735.7 
Net cash used in operating activities(562.8)(34.5)
INVESTING ACTIVITIES
Expenditures for property and equipment(108.0)(46.0)
Proceeds from sale of assets 37.6 
Expenditures related to rental properties (173.9)
Payments related to business acquisitions, net of cash acquired(271.5)(24.4)
Other investing activities6.6 (0.2)
Net cash used in investing activities(372.9)(206.9)
FINANCING ACTIVITIES
Proceeds from notes payable2,625.0 914.1 
Repayment of notes payable(2,051.2)(792.8)
Payments on mortgage repurchase facility, net(88.9)(39.0)
Proceeds from stock associated with certain employee benefit plans26.9 15.5 
Cash paid for shares withheld for taxes(61.8)(78.5)
Cash dividends paid(238.4)(217.7)
Repurchases of common stock
(859.7)(661.4)
Net proceeds from issuance of Forestar common stock1.7 32.6 
Net other financing activities29.2 (2.4)
Net cash used in financing activities(617.2)(829.6)
Net decrease in cash, cash equivalents and restricted cash(1,552.9)(1,071.0)
Cash, cash equivalents and restricted cash at beginning of period3,237.2 3,040.1 
Cash, cash equivalents and restricted cash at end of period$1,684.3 $1,969.1 
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
Notes payable issued for inventory$64.3 $12.5 
Stock issued under employee incentive plans$130.0 $124.7 
Repurchase of common stock not settled$20.1 $ 

See accompanying notes to consolidated financial statements.

7


D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
June 30, 2022

NOTE A – BASIS OF PRESENTATION

The accompanying unaudited, consolidated financial statements include the accounts of D.R. Horton, Inc. and all of its wholly-owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company, unless the context otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are not 100% owned by the Company. As of June 30, 2022, the Company owns a 63% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 37% interest the Company does not own is accounted for as noncontrolling interests. All intercompany accounts, transactions and balances have been eliminated in consolidation.

The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2021, which was derived from audited financial statements, do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2021.

Reclassifications

During the fourth quarter of fiscal 2021, the Company changed its internal organization and reporting of its operating segments and reportable segments to combine its single-family rental operations and its multi-family rental operations into a new reporting segment and realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. The prior year presentation of the Company’s segment information in Note B and in Management’s Discussion and Analysis of Financial Condition and Results of Operations has been conformed to the current presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Seasonality

Historically, the homebuilding industry has experienced seasonal fluctuations; therefore, the operating results for the three and nine months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2022 or subsequent periods.

8

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
June 30, 2022
Business Acquisition

In April 2022, the Company and Vidler Water Resources, Inc. (Vidler) entered into a definitive merger agreement pursuant to which the Company would acquire all of the outstanding shares of Vidler for $15.75 per share in an all-cash transaction. Under the terms of the merger agreement, in May 2022, the Company completed a tender offer and acquired all of the outstanding shares for a total purchase price of $290.5 million.

The Company’s preliminary allocation of the purchase price to the assets, liabilities and noncontrolling interest acquired is as follows (in millions):

Cash and cash equivalents$19.0 
Property and equipment30.1 
Deferred income taxes, net of valuation allowance of $16.4 million
16.3 
Intangible and other assets (1)
251.0 
Total assets316.4 
Other liabilities7.7 
Total liabilities7.7 
Noncontrolling interest18.2 
Net assets acquired$290.5 

_____________________________________
(1)Intangible and other assets consist primarily of water rights and are included in other assets in the Company’s consolidated financial statements.

The purchase price allocation presented above is preliminary and is subject to revision as additional information becomes available and more detailed analyses are completed. The Company expects the allocation to be finalized during the fourth quarter of fiscal 2022.

Pending Accounting Standards

In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The Company will adopt these standards when LIBOR is discontinued and does not expect them to have a material impact on its consolidated financial statements or related disclosures.

In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, “Revenue from Contracts with Customers,” to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for the Company beginning October 1, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance, and it is not expected to have a material impact on its consolidated financial position, results of operations or cash flows.


9

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
June 30, 2022
NOTE B – SEGMENT INFORMATION

The Company is a national homebuilder that is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 105 markets across 33 states. The Company’s operating segments are its 78 homebuilding divisions, its majority-owned Forestar residential lot development operations, its financial services operations, its rental operations and its other business activities. The Company’s reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services segment and its rental operations segment.

During the fourth quarter of fiscal 2021, the Company changed its internal organization and reporting of its operating segments and reportable segments to combine its single-family rental operations and its multi-family rental operations into a new reporting segment to reflect the method by which the chief operating decision makers manage the business, evaluate internal results and allocate financial resources. Additionally, during the fourth quarter of fiscal 2021, the Company realigned the aggregation of its homebuilding operating segments into six new reportable segments to better allocate its homebuilding operating segments across geographic reporting regions. Segment information for the three and nine months ended June 30, 2021 has been reclassified to conform to the current presentation.

Homebuilding

Based on the aggregation of the homebuilding operating segments, the Company’s six reporting segments and the states in which it has homebuilding operations are as follows:
Northwest:Colorado, Oregon, Utah and Washington
Southwest:Arizona, California, Hawaii, Nevada and New Mexico
South Central:Arkansas, Oklahoma and Texas
Southeast:Alabama, Florida, Louisiana and Mississippi
East:Georgia, North Carolina, South Carolina and Tennessee
North:Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Nebraska,
New Jersey, Ohio, Pennsylvania, Virginia and West Virginia

The Company’s homebuilding divisions design, build and sell single-family detached homes on lots they develop and on fully developed lots purchased ready for home construction. To a lesser extent, the homebuilding divisions also build and sell attached homes, such as townhomes, duplexes and triplexes. 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.

Forestar

The Forestar segment is a residential lot development company with operations in 52 markets across 22 states. The Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in which management evaluates segment performance.

Financial Services

The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers.


10

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
June 30, 2022
Rental

The Company’s rental segment consists of multi-family and single-family rental operations. The multi-family rental operations develop, construct, lease and sell residential rental properties. The single-family rental operations primarily construct and lease single-family homes and then market each community for a bulk sale of rental homes.

Other

In addition to its homebuilding, Forestar, financial services and rental 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, owns non-residential real estate including ranch land and improvements and owns and operates energy-related assets. 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.

11

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
June 30, 2022
The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2021. Financial information relating to the Company’s reporting segments is as follows:

June 30, 2022
HomebuildingForestar (1)Financial ServicesRentalEliminations and Other (2)Consolidated
(In millions)
Assets
Cash and cash equivalents
$1,207.2 $146.3 $126.3 $133.9 $42.0 $1,655.7 
Restricted cash
16.2  11.5 0.9  28.6 
Inventories:
Construction in progress and finished homes10,974.0    (170.9)10,803.1 
Residential land and lots — developed and under development6,909.4 1,950.6   (72.4)8,787.6 
Land held for development20.8 103.7    124.5 
Land held for sale32.7     32.7 
Rental properties   1,976.2 (25.2)1,951.0 

17,936.9 2,054.3  1,976.2 (268.5)21,698.9 
Mortgage loans held for sale
  2,082.5   2,082.5 
Deferred income taxes, net
145.3    12.1 157.4 
Property and equipment, net
346.2 5.5 4.0 1.6 124.0 481.3 
Other assets
2,113.5 61.7 256.7 18.3 151.8 2,602.0 
Goodwill
134.3    29.2 163.5 
$21,899.6 $2,267.8 $2,481.0 $2,130.9 $90.6 $28,869.9 
Liabilities
Accounts payable
$1,308.4 $63.8 $ $212.2 $(77.1)$1,507.3 
Accrued expenses and other liabilities
2,530.4 350.5 223.1 12.1 (164.2)2,951.9 
Notes payable
3,688.9 705.6 1,405.7 175.0  5,975.2 
$7,527.7 $1,119.9 $1,628.8 $399.3 $(241.3)$10,434.4 
______________
(1)Amounts are presented on Forestar’s historical cost basis, consistent with the manner in which management evaluates segment performance.
(2)Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser extent, purchase accounting adjustments.

12

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
June 30, 2022
September 30, 2021
HomebuildingForestar (1)Financial ServicesRentalEliminations and Other (2)Consolidated
(In millions)
Assets
Cash and cash equivalents
$2,950.1 $153.6 $79.0 $16.8 $10.9 $3,210.4 
Restricted cash
8.4  18.0 0.4  26.8 
Inventories:
Construction in progress and finished homes7,848.0    (108.8)7,739.2 
Residential land and lots — developed and under development6,004.0 1,824.7   (46.9)7,781.8 
Land held for development30.4 80.5    110.9 
Land held for sale25.4     25.4 
Rental properties   840.9 (19.1)821.8 

13,907.8 1,905.2  840.9 (174.8)16,479.1 
Mortgage loans held for sale
  2,027.3   2,027.3 
Deferred income taxes, net
159.2