10-Q 1 dhi-20240331.htm 10-Q dhi-20240331
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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 March 31, 2024
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
L1_DRH-CO_Logo_Blue_1500W.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
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 April 18, 2024, there were 329,312,248 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

March 31,
2024
September 30,
2023
(In millions)
(Unaudited)
ASSETS
Cash and cash equivalents$3,063.1 $3,873.6 
Restricted cash30.3 26.5 
Total cash, cash equivalents and restricted cash3,093.4 3,900.1 
Inventories:
Construction in progress and finished homes9,708.5 9,001.4 
Residential land and lots — developed and under development11,889.9 10,621.9 
Land held for development155.2 50.0 
Land held for sale8.8 8.7 
Rental properties3,077.6 2,691.3 
Total inventory24,840.0 22,373.3 
Mortgage loans held for sale2,672.4 2,519.9 
Deferred income taxes, net of valuation allowance of $14.7 million and $14.8 million
at March 31, 2024 and September 30, 2023, respectively
166.5 187.2 
Property and equipment, net479.9 445.4 
Other assets2,982.5 2,993.0 
Goodwill163.5 163.5 
Total assets$34,398.2 $32,582.4 
LIABILITIES
Accounts payable$1,386.5 $1,246.2 
Accrued expenses and other liabilities2,777.4 3,103.8 
Notes payable5,937.9 5,094.5 
Total liabilities10,101.8 9,444.5 
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, 402,624,949 shares issued
and 330,196,301 shares outstanding at March 31, 2024 and 401,202,253 shares issued
and 334,848,565 shares outstanding at September 30, 2023
4.0 4.0 
Additional paid-in capital3,431.6 3,432.2 
Retained earnings25,510.2 23,589.8 
Treasury stock, 72,428,648 shares and 66,353,688 shares at March 31, 2024
and September 30, 2023, respectively, at cost
(5,130.3)(4,329.8)
Stockholders’ equity23,815.5 22,696.2 
Noncontrolling interests480.9 441.7 
Total equity24,296.4 23,137.9 
Total liabilities and equity$34,398.2 $32,582.4 
See accompanying notes to consolidated financial statements.

3

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


Three Months Ended
March 31,
Six Months Ended
March 31,
 2024202320242023
(In millions, except per share data)
(Unaudited)
Revenues$9,107.2 $7,972.9 $16,833.1 $15,230.6 
Cost of sales6,774.3 5,996.2 12,494.0 11,287.5 
Selling, general and administrative expense880.6 773.6 1,715.6 1,510.5 
Other (income) expense(76.2)(42.2)(152.5)(79.9)
Income before income taxes1,528.5 1,245.3 2,776.0 2,512.5 
Income tax expense344.8 295.7 636.6 594.6 
Net income1,183.7 949.6 2,139.4 1,917.9 
Net income attributable to noncontrolling interests11.6 7.4 19.9 17.0 
Net income attributable to D.R. Horton, Inc.$1,172.1 $942.2 $2,119.5 $1,900.9 
Basic net income per common share attributable to D.R. Horton, Inc.$3.54 $2.75 $6.38 $5.54 
Weighted average number of common shares330.9 342.1 332.1 343.2 
Diluted net income per common share attributable to D.R. Horton, Inc.$3.52 $2.73 $6.34 $5.50 
Adjusted weighted average number of common shares333.3 344.9 334.5 345.9 
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, 2023 (334,848,565 shares)
$4.0 $3,432.2 $23,589.8 $(4,329.8)$441.7 $23,137.9 
Net income  947.4  8.3 955.7 
Exercise of stock options (68,095 shares)
 1.6 — — — 1.6 
Stock issued under employee benefit plans (598,824 shares)
— 3.1 — — — 3.1 
Cash paid for shares withheld for taxes (37.5)   (37.5)
Stock-based compensation expense— 40.9 — — — 40.9 
Cash dividends declared ($0.30 per share)
— — (99.9)— — (99.9)
Repurchases of common stock (3,325,150 shares)
— — — (398.3)— (398.3)
Change of ownership interest in Forestar— (0.1)— — 0.1  
Balances at December 31, 2023 (332,190,334 shares)
$4.0 $3,440.2 $24,437.3 $(4,728.1)$450.1 $23,603.5 
Net income  1,172.1  11.6 1,183.7 
Exercise of stock options (151,568 shares)
 3.6 — — — 3.6 
Stock issued under employee benefit plans (604,209 shares)
— 6.9 — — — 6.9 
Cash paid for shares withheld for taxes (44.1)   (44.1)
Stock-based compensation expense— 25.0 — — — 25.0 
Cash dividends declared ($0.30 per share)
— — (99.2)— — (99.2)
Repurchases of common stock (2,749,810 shares)
— — — (402.2)— (402.2)
Change of ownership interest in Forestar— — — — 19.2 19.2 
Balances at March 31, 2024 (330,196,301 shares)
$4.0 $3,431.6 $25,510.2 $(5,130.3)$480.9 $24,296.4 
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, 2022 (343,953,023 shares)
$4.0 $3,349.5 $19,185.3 $(3,142.5)$389.3 $19,785.6 
Net income  958.7  9.6 968.3 
Exercise of stock options (108,457 shares)
 2.6 — — — 2.6 
Stock issued under employee benefit plans (601,371 shares)
— 2.9 — — — 2.9 
Cash paid for shares withheld for taxes (25.7)   (25.7)
Stock-based compensation expense— 22.9 — — — 22.9 
Cash dividends declared ($0.25 per share)
— — (86.1)— — (86.1)
Repurchases of common stock (1,384,290 shares)
— — — (118.1)— (118.1)
Change of ownership interest in Forestar— (0.2)— — 0.2  
Balances at December 31, 2022 (343,278,561 shares)
$4.0 $3,352.0 $20,057.9 $(3,260.6)$399.1 $20,552.4 
Net income  942.2  7.4 949.6 
Exercise of stock options (234,796 shares)
 5.6 — — — 5.6 
Stock issued under employee benefit plans (713,217 shares)
— 4.7 — — — 4.7 
Cash paid for shares withheld for taxes (30.1)   (30.1)
Stock-based compensation expense— 28.4 — — — 28.4 
Cash dividends declared ($0.25 per share)
— — (85.6)— — (85.6)
Repurchases of common stock (3,156,298) shares)
— — — (303.2)— (303.2)
Change of ownership in Forestar— (2.6)— — 2.6  
Balances at March 31, 2023 (341,070,276 shares)
$4.0 $3,358.0 $20,914.5 $(3,563.8)$409.1 $21,121.8 
See accompanying notes to consolidated financial statements.

6

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


 Six Months Ended March 31,
 20242023
(In millions)
(Unaudited)
OPERATING ACTIVITIES
Net income$2,139.4 $1,917.9 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization41.1 46.5 
Stock-based compensation expense65.9 51.3 
Deferred income taxes19.9 28.7 
Inventory and land option charges19.6 51.4 
Changes in operating assets and liabilities:
(Increase) decrease in construction in progress and finished homes(709.1)537.3 
Increase in residential land and lots –
developed, under development, held for development and held for sale
(1,371.1)(668.7)
Increase in rental properties(386.9)(689.2)
Decrease in other assets27.6 339.8 
(Increase) decrease in mortgage loans held for sale(152.5)262.0 
Decrease in accounts payable, accrued expenses and other liabilities(164.0)(403.4)
Net cash (used in) provided by operating activities(470.1)1,473.6 
INVESTING ACTIVITIES
Expenditures for property and equipment(71.3)(79.2)
Proceeds from sale of assets9.9  
Payments related to business acquisitions, net of cash acquired(1.0)(103.5)
Other investing activities(3.6)2.1 
Net cash used in investing activities(66.0)(180.6)
FINANCING ACTIVITIES
Proceeds from notes payable985.0 575.0 
Repayment of notes payable(400.0)(650.0)
Borrowings (payments) on mortgage repurchase facilities, net214.4 (63.4)
Proceeds from stock associated with certain employee benefit plans12.2 12.9 
Cash paid for shares withheld for taxes(81.6)(55.8)
Cash dividends paid(199.1)(171.7)
Repurchases of common stock
(794.5)(419.8)
Net proceeds from issuance of Forestar common stock19.7  
Net other financing activities(26.7)(18.5)
Net cash used in financing activities(270.6)(791.3)
Net (decrease) increase in cash, cash equivalents and restricted cash(806.7)501.7 
Cash, cash equivalents and restricted cash at beginning of period3,900.1 2,572.9 
Cash, cash equivalents and restricted cash at end of period$3,093.4 $3,074.6 
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
Notes payable issued for inventory$18.9 $31.2 
Stock issued under employee incentive plans$151.3 $107.4 
See accompanying notes to consolidated financial statements.

7


D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
March 31, 2024


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 March 31, 2024, the Company owned a 62% controlling interest in Forestar Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial statements, and the 38% 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, 2023, 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, 2023.

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 six months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2024 or subsequent periods.

Pending Accounting Standards

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items and interim disclosures of a reportable segment’s profit or loss and assets. The guidance is effective for the Company beginning October 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax related disclosures. The guidance is effective for the Company beginning October 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

8

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024
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 119 markets across 33 states. The Company’s operating segments are its 84 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 rental operations segment, its Forestar lot development segment and its financial services segment.

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, 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.

Rental

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

Forestar

The Forestar segment is a residential lot development company with operations in 57 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, title agency services and title insurance to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages, collecting premiums and fees for escrow closing services and collecting premiums for title insurance. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers.

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.

9

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024
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, 2023. Financial information relating to the Company’s reporting segments is as follows:

March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents$2,192.6 $117.0 $416.2 $315.2 $22.1 $3,063.1 
Restricted cash6.7 2.5  21.1  30.3 
Inventories:
Construction in progress and finished homes9,847.5    (139.0)9,708.5 
Residential land and lots — developed and under development10,053.1  1,981.1  (144.3)11,889.9 
Land held for development20.4  134.8   155.2 
Land held for sale8.8     8.8 
Rental properties 3,092.8   (15.2)3,077.6 

19,929.8 3,092.8 2,115.9  (298.5)24,840.0 
Mortgage loans held for sale   2,672.4  2,672.4 
Deferred income taxes, net209.1 (19.9)  (22.7)166.5 
Property and equipment, net449.8 2.0 6.1 3.9 18.1 479.9 
Other assets2,630.1 33.6 60.5 200.7 57.6 2,982.5 
Goodwill134.3    29.2 163.5 
$25,552.4 $3,228.0 $2,598.7 $3,213.3 $(194.2)$34,398.2 
Liabilities
Accounts payable$1,120.0 $387.1 $61.7 $0.1 $(182.4)$1,386.5 
Accrued expenses and other liabilities2,434.5 36.4 358.3 227.8 (279.6)2,777.4 
Notes payable2,363.2 985.0 705.7 1,884.0  5,937.9 
$5,917.7 $1,408.5 $1,125.7 $2,111.9 $(462.0)$10,101.8 
______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.

10

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

September 30, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Assets
Cash and cash equivalents$2,920.2 $136.1 $616.0 $189.1 $12.2 $3,873.6 
Restricted cash6.5 3.3  16.7  26.5 
Inventories:
Construction in progress and finished homes9,134.3    (132.9)9,001.4 
Residential land and lots — developed and under development8,992.3  1,760.8  (131.2)10,621.9 
Land held for development20.5  29.5   50.0 
Land held for sale8.7     8.7 
Rental properties 2,708.4   (17.1)2,691.3 

18,155.8 2,708.4 1,790.3  (281.2)22,373.3 
Mortgage loans held for sale   2,519.9  2,519.9 
Deferred income taxes, net229.8 (19.9)  (22.7)187.2 
Property and equipment, net415.0 2.4 5.9 4.1 18.0 445.4 
Other assets2,838.5 29.8 58.5 250.3 (184.1)2,993.0 
Goodwill134.3    29.2 163.5 
$24,700.1 $2,860.1 $2,470.7 $2,980.1 $(428.6)$32,582.4 
Liabilities
Accounts payable$1,033.7 $698.6 $68.4 $0.1 $(554.6)$1,246.2 
Accrued expenses and other liabilities2,585.5 43.2 337.4 280.4 (142.7)3,103.8 
Notes payable2,329.9 400.0 695.0 1,669.6  5,094.5 
$5,949.1 $1,141.8 $1,100.8 $1,950.1 $(697.3)$9,444.5 
______________
(1)Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.

11

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

Three Months Ended March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$8,466.7 $ $ $ $ $8,466.7 
Land/lot sales and other6.9  333.8  (297.1)43.6 
Rental property sales 371.3    371.3 
Financial services   225.6  225.6 
8,473.6 371.3 333.8 225.6 (297.1)9,107.2 
Cost of sales
Home sales (2)6,505.6    (68.3)6,437.3 
Land/lot sales and other4.2  250.5  (234.1)20.6 
Rental property sales 302.8    302.8 
Inventory and land option charges13.1 0.3 0.2   13.6 
6,522.9 303.1 250.7  (302.4)6,774.3 
Selling, general and administrative expense614.1 61.4 29.2 171.2 4.7 880.6 
Other (income) expense(21.0)(26.5)(5.0)(23.6)(0.1)(76.2)
Income before income taxes$1,357.6 $33.3 $58.9 $78.0 $0.7 $1,528.5 
______________
(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.


12

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

Six Months Ended March 31, 2024
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$15,743.1 $ $ $ $ $15,743.1 
Land/lot sales and other27.2  639.7  (561.6)105.3 
Rental property sales 566.5    566.5 
Financial services   418.2  418.2 
15,770.3 566.5 639.7 418.2 (561.6)16,833.1 
Cost of sales
Home sales (2)12,113.6    (122.5)11,991.1 
Land/lot sales and other17.3  483.4  (456.7)44.0 
Rental property sales 444.1   (4.8)439.3 
Inventory and land option charges18.6 0.6 0.4   19.6 
12,149.5 444.7 483.8  (584.0)12,494.0 
Selling, general and administrative expense1,217.5 108.8 57.2 322.7 9.4 1,715.6 
Other (income) expense(50.4)(51.6)(11.4)(48.5)9.4 (152.5)
Income before income taxes$2,453.7 $64.6 $110.1 $144.0 $3.6 $2,776.0 
Summary Cash Flow Information
Depreciation and amortization$37.2 $1.3 $1.4 $0.9 $0.3 $41.1 
Cash provided by (used in) operating activities$408.3 $(653.9)$(216.0)$(40.7)$32.2 $(470.1)
______________
(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.

13

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

Three Months Ended March 31, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$7,449.7 $ $ $ $ $7,449.7 
Land/lot sales and other19.9  301.5  (238.7)82.7 
Rental property sales 224.1    224.1 
Financial services   216.4  216.4 
7,469.6 224.1 301.5 216.4 (238.7)7,972.9 
Cost of sales
Home sales (2)5,843.0    (61.8)5,781.2 
Land/lot sales and other13.4  225.3  (204.3)34.4 
Rental property sales 157.6   (0.8)156.8 
Inventory and land option charges14.2 0.4 20.3  (11.1)23.8 
5,870.6 158.0 245.6  (278.0)5,996.2 
Selling, general and administrative expense545.6 53.5 22.0 146.9 5.6 773.6 
Other (income) expense(14.5)(22.0)(2.0)(16.1)12.4 (42.2)
Income before income taxes$1,067.9 $34.6 $35.9 $85.6 $21.3 $1,245.3 
______________
(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.


14

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

Six Months Ended March 31, 2023
HomebuildingRentalForestarFinancial ServicesEliminations and Other (1)Consolidated
(In millions)
Revenues
Home sales$14,158.9 $ $ $ $ $14,158.9 
Land/lot sales and other54.7  518.2  (406.2)166.7 
Rental property sales 551.6    551.6 
Financial services   353.4  353.4 
14,213.6 551.6 518.2 353.4 (406.2)15,230.6 
Cost of sales
Home sales (2)10,949.7    (110.9)10,838.8 
Land/lot sales and other18.3  392.1  (352.1)58.3 
Rental property sales 341.4   (2.4)339.0 
Inventory and land option charges38.4 1.4 22.7  (11.1)51.4 
11,006.4 342.8 414.8  (476.5)11,287.5 
Selling, general and administrative expense1,072.6 101.0 44.9 281.0 11.0 1,510.5 
Other (income) expense(27.7)(37.1)(5.3)(31.4)21.6 (79.9)
Income before income taxes$2,162.3 $144.9 $63.8 $103.8 $37.7 $2,512.5 
Summary Cash Flow Information
Depreciation and amortization$30.7 $1.0 $1.5 $1.1 $12.2 $46.5 
Cash provided by (used in) operating activities$1,456.4 $(263.3)$21.3 $232.2 $27.0 $1,473.6 
______________
(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.

15

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024

Homebuilding Inventories by Reporting Segment (1)
March 31,
2024
September 30,
2023
 (In millions)
Northwest$1,972.1 $1,907.5 
Southwest3,274.0 3,133.0 
South Central4,085.6 3,810.5 
Southeast4,378.5 3,958.5 
East3,597.6 3,024.7 
North2,363.5 2,078.0 
Corporate and unallocated (2)258.5 243.6 
$19,929.8 $18,155.8 
____________________________

(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 homebuilding capitalized interest and property taxes.

Homebuilding Results by Reporting SegmentThree Months Ended
March 31,
Six Months Ended
March 31,
 2024202320242023
 (In millions)
Revenues
Northwest$742.1 $691.1 $1,320.0 $1,211.5 
Southwest1,283.4 920.9 2,334.8 1,723.9 
South Central1,961.1 1,805.8 3,630.3 3,447.9 
Southeast2,185.8 2,106.1 4,185.4 4,102.4 
East1,441.8 1,206.9 2,710.1 2,350.8 
North859.4 738.8 1,589.7 1,377.1 
$8,473.6 $7,469.6 $15,770.3 $14,213.6 
Income before Income Taxes
Northwest$109.3 $96.4 $178.8 $155.0 
Southwest171.0 81.7 305.9 165.7 
South Central346.6 267.9 618.2 549.5 
Southeast361.5 381.7 690.9 793.0 
East254.5 183.5 459.1 373.0 
North114.7 56.7 200.8 126.1 
$1,357.6 $1,067.9 $2,453.7 $2,162.3 


16

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024
NOTE C – INVENTORIES

At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As of March 31, 2024, the Company performed detailed impairment evaluations of communities and land inventories and determined that communities with a combined carrying value of $30.7 million were impaired. As a result, impairment charges of $5.6 million were recorded during the three and six months ended March 31, 2024 to reduce the carrying value of the related inventories to fair value. There were $9.2 million and $14.0 million of impairment charges recorded in the three and six months ended March 31, 2023, respectively.

During the three and six months ended March 31, 2024, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $8.0 million and $14.0 million, respectively, compared to $14.6 million and $37.4 million in the prior year periods. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations.

17

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) – (Continued)
March 31, 2024
NOTE D – NOTES PAYABLE

The Company’s notes payable at their carrying amounts consist of the following:

March 31,
2024