XML 41 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subsequent Event (Notes)
12 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
SUBSEQUENT EVENT

On October 5, 2017, the Company acquired 75% of the outstanding shares of Forestar for $558.3 million in cash, pursuant to the terms of the merger agreement entered into in June 2017. Forestar is and will continue to be a publicly-traded residential and real estate development company with operations currently in 14 markets and 10 states, where it owns, directly or through joint ventures, interests in 44 residential and mixed-use projects.

The Company’s alignment with Forestar advances its strategy of increasing its access to high-quality optioned land and lot positions to enhance operational efficiency and returns. Both companies are identifying land development opportunities to expand Forestar’s platform, and the Company plans to acquire a large portion of Forestar’s finished lots in accordance with the master supply agreement between the two companies. As the controlling shareholder of Forestar, the Company will have significant influence in guiding the strategic direction and driving the operational execution necessary to increase the future value potential of Forestar.

The Company has hired a valuation firm to assist in the allocation of the purchase price to the assets acquired and liabilities assumed. As of the date of issuance of the financial statements the purchase price allocation had not been completed. The Company anticipates the purchase price will be allocated primarily to the tangible assets acquired and liabilities assumed of Forestar, but does anticipate some intangible assets arising from the transaction.