2018 Q3 Form 10-K Financial Statement

#000088218418000120 Filed on November 16, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3 2017 Q2
Revenue $4.505B $4.159B $3.776B
YoY Change 8.32% 11.17% 16.85%
Cost Of Revenue $3.452B $3.244B $2.961B
YoY Change 6.41% 11.74% 17.74%
Gross Profit $1.054B $915.5M $815.3M
YoY Change 15.08% 9.21% 13.71%
Gross Profit Margin 23.39% 22.01% 21.59%
Selling, General & Admin $456.9M $416.1M $374.5M
YoY Change 9.81% 8.13% 11.19%
% of Gross Profit 43.37% 45.45% 45.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.80M $14.30M $13.10M
YoY Change 10.49% -27.04% -5.07%
% of Gross Profit 1.5% 1.56% 1.61%
Operating Expenses $438.1M $407.0M $374.5M
YoY Change 7.64% 7.08% 13.28%
Operating Profit $615.5M $508.5M $440.8M
YoY Change 21.04% 10.98% 14.08%
Interest Expense -$4.500M -$2.600M $0.00
YoY Change 73.08% 4.0% -100.0%
% of Operating Profit -0.73% -0.51% 0.0%
Other Income/Expense, Net $3.700M
YoY Change
Pretax Income $607.7M $485.5M $444.5M
YoY Change 25.17% 12.12% 17.41%
Income Tax $138.8M $172.3M $155.5M
% Of Pretax Income 22.84% 35.49% 34.98%
Net Earnings $466.1M $313.2M $289.0M
YoY Change 48.82% 10.44% 15.69%
Net Earnings / Revenue 10.35% 7.53% 7.65%
Basic Earnings Per Share $1.24 $0.84 $0.77
Diluted Earnings Per Share $1.22 $0.82 $0.76
COMMON SHARES
Basic Shares Outstanding 377.1M shares 374.3M shares 374.8M shares
Diluted Shares Outstanding 379.4M shares

Balance Sheet

Concept 2018 Q3 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.473B $1.008B $512.0M
YoY Change 46.13% -22.64% -43.55%
Cash & Equivalents $1.473B $1.008B $512.4M
Short-Term Investments
Other Short-Term Assets $37.00M $31.00M $12.00M
YoY Change 19.35% 3.33% -53.85%
Inventory $10.40B $9.237B $9.554B
Prepaid Expenses
Receivables $39.00M
Other Receivables $0.00
Total Short-Term Assets $12.04B $10.41B $10.12B
YoY Change 15.67% 7.21% 6.82%
LONG-TERM ASSETS
Property, Plant & Equipment $401.1M $325.0M $282.8M
YoY Change 23.42% 66.33% 86.05%
Goodwill $109.2M $80.00M
YoY Change 36.5%
Intangibles
YoY Change
Long-Term Investments $11.00M $0.00
YoY Change
Other Assets $227.0M $382.0M $395.0M
YoY Change -40.58% -21.4% -23.6%
Total Long-Term Assets $2.074B $1.775B $1.860B
YoY Change 16.85% -4.02% -0.11%
TOTAL ASSETS
Total Short-Term Assets $12.04B $10.41B $10.12B
Total Long-Term Assets $2.074B $1.775B $1.860B
Total Assets $14.11B $12.18B $11.98B
YoY Change 15.84% 5.41% 5.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $625.0M $580.0M $656.0M
YoY Change 7.76% 0.35% 7.72%
Accrued Expenses $961.0M $878.0M $886.0M
YoY Change 9.45% 3.29% 5.6%
Deferred Revenue
YoY Change
Short-Term Debt $638.0M $420.0M $473.0M
YoY Change 51.9% -11.21% -6.15%
Long-Term Debt Due $505.0M
YoY Change
Total Short-Term Liabilities $2.822B $1.898B $2.051B
YoY Change 48.68% -1.61% 3.17%
LONG-TERM LIABILITIES
Long-Term Debt $2.061B $2.452B $2.453B
YoY Change -15.95% -12.37% -12.3%
Other Long-Term Liabilities $73.00M $87.00M $36.00M
YoY Change -16.09% 123.08% 2.86%
Total Long-Term Liabilities $2.134B $2.539B $2.489B
YoY Change -15.95% -10.5% -12.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.822B $1.898B $2.051B
Total Long-Term Liabilities $2.134B $2.539B $2.489B
Total Liabilities $4.956B $4.437B $4.540B
YoY Change 11.69% -6.9% -5.81%
SHAREHOLDERS EQUITY
Retained Earnings $6.218B $4.946B $4.670B
YoY Change 25.72% 21.91% 22.79%
Common Stock $3.089B $2.996B $2.961B
YoY Change 3.1% 4.4% 4.15%
Preferred Stock
YoY Change
Treasury Stock (at cost) $322.4M $194.9M $194.9M
YoY Change 65.42% 45.12% 45.12%
Treasury Stock Shares 11.86M shares 9.050M shares 9.050M shares
Shareholders Equity $8.984B $7.747B $7.436B
YoY Change
Total Liabilities & Shareholders Equity $14.11B $12.18B $11.98B
YoY Change 15.84% 5.41% 5.68%

Cashflow Statement

Concept 2018 Q3 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $466.1M $313.2M $289.0M
YoY Change 48.82% 10.44% 15.69%
Depreciation, Depletion And Amortization $15.80M $14.30M $13.10M
YoY Change 10.49% -27.04% -5.07%
Cash From Operating Activities $238.7M $631.0M -$55.10M
YoY Change -62.17% 19.19% -189.3%
INVESTING ACTIVITIES
Capital Expenditures -$28.20M -$53.80M -$46.00M
YoY Change -47.58% 157.42% 85.48%
Acquisitions
YoY Change
Other Investing Activities $39.70M $3.800M -$1.600M
YoY Change 944.74% -105.89% -137.21%
Cash From Investing Activities $11.50M -$50.00M -$47.60M
YoY Change -123.0% -41.45% 132.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $24.50M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 18.90M -85.60M -378.1M
YoY Change -122.08% 79.83% 5.47%
NET CHANGE
Cash From Operating Activities 238.7M 631.0M -55.10M
Cash From Investing Activities 11.50M -50.00M -47.60M
Cash From Financing Activities 18.90M -85.60M -378.1M
Net Change In Cash 269.1M 495.4M -480.8M
YoY Change -45.68% 24.97% 51.53%
FREE CASH FLOW
Cash From Operating Activities $238.7M $631.0M -$55.10M
Capital Expenditures -$28.20M -$53.80M -$46.00M
Free Cash Flow $266.9M $684.8M -$9.100M
YoY Change -61.03% 24.44% -110.52%

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92600000 USD
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55200000 USD
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83900000 USD
CY2018Q3 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Impairment Losses
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31800000 USD
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163700000 USD
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121800000 USD
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11200000 USD
CY2018Q3 us-gaap Deferred Tax Assets Valuation Allowance
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17700000 USD
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9300000 USD
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22600000 USD
CY2017Q3 us-gaap Deferred Tax Liabilities Tax Deferred Income
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41600000 USD
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64900000 USD
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13300000 USD
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16000000 USD
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18400000 USD
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312200000 USD
CY2018Q3 us-gaap Deposits Assets
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445200000 USD
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50800000 USD
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49400000 USD
CY2018 us-gaap Depreciation
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58200000 USD
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61000000 USD
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54700000 USD
CY2018 us-gaap Depreciation Depletion And Amortization
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62400000 USD
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118700000 USD
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149600000 USD
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188400000 USD
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0 USD
CY2018Q3 us-gaap Due To Affiliate Current And Noncurrent
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0.77
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1.20
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1.24
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3.88
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2.36
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0.55
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0.60
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0.76
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0.82
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2.74
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0.49
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0.91
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1.18
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1.22
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3.81
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0.345
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0.352
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
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0.290
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35
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0.35
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0.21
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208900000 USD
CY2018Q3 us-gaap Employee Related Liabilities Current And Noncurrent
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252500000 USD
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0 USD
CY2017 us-gaap Equity Method Investment Dividends Or Distributions
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0 USD
CY2018 us-gaap Equity Method Investment Dividends Or Distributions
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2000000 USD
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10000000 USD
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14300000 USD
CY2018 us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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0 USD
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10000000 USD
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14300000 USD
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295600000 USD
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349500000 USD
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375300000 USD
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-2400000 USD
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4500000 USD
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0 USD
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18800000 USD
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207500000 USD
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251100000 USD
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265100000 USD
CY2017Q3 us-gaap Goodwill
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80000000 USD
CY2018Q3 us-gaap Goodwill
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109200000 USD
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7200000 USD
CY2017 us-gaap Goodwill Impairment Loss
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0 USD
CY2018 us-gaap Goodwill Impairment Loss
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0 USD
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9403000000 USD
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10927800000 USD
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12194300000 USD
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13653200000 USD
CY2018 us-gaap Home Building Revenue
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1353500000 USD
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318100000 USD
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353900000 USD
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444500000 USD
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485500000 USD
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1602100000 USD
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391200000 USD
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444800000 USD
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616200000 USD
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607700000 USD
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2060000000 USD
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0 USD
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0 USD
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2800000 USD
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0 USD
CY2017 us-gaap Income Loss From Subsidiaries Net Of Tax
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CY2018 us-gaap Income Loss From Subsidiaries Net Of Tax
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CY2018 us-gaap Income Tax Expense Benefit
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597700000 USD
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200000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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800000 USD
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108700000 USD
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CY2017 us-gaap Income Tax Reconciliation Deductions Other
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0 USD
CY2018 us-gaap Income Tax Reconciliation Deductions Other
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21200000 USD
CY2016 us-gaap Income Tax Reconciliation Deductions Qualified Production Activities
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36300000 USD
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39800000 USD
CY2018 us-gaap Income Tax Reconciliation Deductions Qualified Production Activities
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36700000 USD
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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473700000 USD
CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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560700000 USD
CY2018 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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505000000 USD
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6900000 USD
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3200000 USD
CY2018 us-gaap Income Tax Reconciliation Other Adjustments
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8800000 USD
CY2016 us-gaap Income Tax Reconciliation State And Local Income Taxes
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38600000 USD
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42300000 USD
CY2018 us-gaap Income Tax Reconciliation State And Local Income Taxes
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59400000 USD
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15900000 USD
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3500000 USD
CY2018 us-gaap Income Tax Reconciliation Tax Credits
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19000000 USD
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389900000 USD
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446400000 USD
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14114600000 USD
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49600000 USD
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12184600000 USD
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387200000 USD
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58000000 USD
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89000000 USD
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129100000 USD
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496200000 USD
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584400000 USD
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482800000 USD
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10300000 USD
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362300000 USD
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573800000 USD
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12400000 USD
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208800000 USD
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16300000 USD
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63700000 USD
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110600000 USD
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-200000 USD
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7000000 USD
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16400000 USD
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4100000 shares
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4600000 shares
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6800000 shares
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74400000 USD
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54600000 USD
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152300000 USD
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129300000 USD
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125400000 USD
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12700000 USD
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14800000 USD
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4606000000 USD
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5086300000 USD
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101000000 USD
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96100000 USD
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10400000 USD
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40200000 USD
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9237100000 USD
CY2018Q3 us-gaap Inventory Real Estate
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10395000000 USD
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4519700000 USD
CY2018Q3 us-gaap Inventory Real Estate Land And Land Development Costs
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5172400000 USD
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20300000 USD
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23200000 USD
CY2018Q3 us-gaap Inventory Write Down
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3500000 USD
CY2018 us-gaap Inventory Write Down
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11800000 USD
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0 USD
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11000000 USD
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78700000 USD
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88300000 USD
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190700000 USD
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128500000 USD
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4437000000 USD
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87800000 USD
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41000000 USD
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8700000 USD
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8400000 USD
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587300000 USD
CY2018Q3 us-gaap Loans Receivable Held For Sale Net Not Part Of Disposal Group Mortgage
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796400000 USD
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1100000000 USD
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700000000 USD
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350000000 USD
CY2018Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
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400000000 USD
CY2018Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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618900000 USD
CY2016Q3 us-gaap Loss Contingency Accrual At Carrying Value
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423500000 USD
CY2017Q3 us-gaap Loss Contingency Accrual At Carrying Value
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420600000 USD
CY2018Q3 us-gaap Loss Contingency Accrual At Carrying Value
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408100000 USD
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91000000 USD
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46400000 USD
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93900000 USD
CY2018 us-gaap Loss Contingency Accrual Payments
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58900000 USD
CY2017Q3 us-gaap Minority Interest
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500000 USD
CY2018Q3 us-gaap Minority Interest
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174500000 USD
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3200000 USD
CY2017Q4 us-gaap Minority Interest Ownership Percentage By Noncontrolling Owners
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0.25
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-600000 USD
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CY2018 us-gaap Net Cash Provided By Used In Financing Activities
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CY2016 us-gaap Net Cash Provided By Used In Investing Activities
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-112600000 USD
CY2017 us-gaap Net Cash Provided By Used In Investing Activities
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-171000000 USD
CY2018 us-gaap Net Cash Provided By Used In Investing Activities
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2600000 USD
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374300000 shares
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CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Change in Presentation and Reclassifications</font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications have been made to conform to the current year&#8217;s presentation. The Company has changed the presentation of the consolidated balance sheets and statements of operations to present its homebuilding, Forestar, financial services and other operations on a combined basis. Prior year amounts have also been combined to reflect this presentation. Of the </font><font style="font-family:inherit;font-size:10pt;">$56.7 million</font><font style="font-family:inherit;font-size:10pt;"> previously presented as accounts payable and other liabilities in financial services and other operations at </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">$4.8 million</font><font style="font-family:inherit;font-size:10pt;"> is classified as accounts payable and </font><font style="font-family:inherit;font-size:10pt;">$51.9 million</font><font style="font-family:inherit;font-size:10pt;"> is classified as accrued expenses and other liabilities under the new presentation. See Note </font><font style="font-family:inherit;font-size:10pt;">B</font><font style="font-family:inherit;font-size:10pt;"> for detailed financial information for the Company&#8217;s reporting segments.</font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of the adoption of ASU 2016-09 on October 1, 2017, </font><font style="font-family:inherit;font-size:10pt;">$5.1 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$5.9 million</font><font style="font-family:inherit;font-size:10pt;"> of cash paid for shares withheld for taxes on stock-based awards was reclassified from operating cash flows to financing cash flows in the consolidated statements of cash flows for fiscal </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, respectively. These amounts were also reclassified from stock issued under employee incentive plans on the consolidated statements of total equity for fiscal </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">. These reclassifications had no effect on the Company&#8217;s consolidated financial position or results of operations.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div></div>

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